Sterling Real Estate Trust 10-Q 7 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Aug. 04, 2020
Document And Entity Information [Abstract]
Entity Registrant Name	Sterling Real Estate Trust
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	000-54295
Entity Incorporation, State or Country Code	ND
Entity Tax Identification Number	90-0115411
Entity Address, Address Line One	1711 Gold Drive South, Suite 100
Entity Address, City or Town	Fargo
Entity Address, State or Province	ND
Entity Address, Postal Zip Code	58103
City Area Code	701
Local Phone Number	353-2720
Title of 12(b) Security	Common Shares, par value $0.01 per share
No Trading Symbol Flag	true
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		9,739,533.26
Entity Central Index Key	0001412502
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
ASSETS
Land and land improvements	$ 116,010	$ 114,666
Building and improvements	685,533	676,228
Construction in progress	24,559	11,134
Real estate investments	826,102	802,028
Less accumulated depreciation	(154,625)	(146,316)
Real estate investments, net	671,477	655,712
Cash and cash equivalents	8,697	9,002
Restricted deposits	13,792	8,380
Investment in unconsolidated affiliates	8,275	7,915
Notes receivable	2,063	1,300
Lease intangible assets, less accumulated amortization of $15,508 in 2020 and $15,558 in 2019	8,032	9,133
Other assets, net	6,339	8,244
Total Assets	718,675	699,686
LIABILITIES
Mortgage notes payable, net	403,168	393,164
Dividends payable	7,371	7,118
Tenant security deposits payable	4,878	4,439
Lease intangible liabilities, less accumulated amortization of $1,935 in 2020 and $1,881 in 2019	1,097	1,207
Accrued expenses and other liabilities	16,776	14,711
Total Liabilities	433,290	420,639
COMMITMENTS and CONTINGENCIES - Note 14
SHAREHOLDERS' EQUITY
Beneficial interest	104,588	102,373
Noncontrolling interest in Operating partnership	180,439	174,221
Partially owned properties	2,429	2,416
Accumulated other comprehensive loss	(2,071)	37
Total Shareholders' Equity	285,385	279,047
Total liabilities and shareholders' equity	$ 718,675	$ 699,686

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
CONSOLIDATED BALANCE SHEETS
Lease intangible assets, accumulated amortization	$ 15,508	$ 15,558
Lease intangible liabilities, accumulated amortization	$ 1,935	$ 1,881

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income from rental operations
Real estate rental income	$ 30,821	$ 30,270	$ 60,727	$ 60,102
Expenses from rental operations
Operating expenses, excluding real estate taxes	10,961	11,832	23,496	24,011
Real estate taxes	3,139	3,019	6,303	6,048
Depreciation and amortization	5,246	5,353	10,498	10,891
Interest	4,224	4,582	8,574	9,298
Total expenses from rental operations	23,570	24,786	48,871	50,248
Administration of REIT
Administration of REIT	1,085	971	2,247	2,082
Total expenses	24,655	25,757	51,118	52,330
Income from operations	6,166	4,513	9,609	7,772
Other income
Equity in income of unconsolidated affiliates	80	262	238	394
Other income	150	46	269	116
Gain on sale of real estate and non-real estate investments	1		1,456
Gain on involuntary conversion			52	329
Total other income	231	308	2,015	839
Net income	6,397	4,821	11,624	8,611
Net income (loss) attributable to noncontrolling interest in operating partnership	4,177	3,191	7,596	5,723
Net income (loss) attributable to noncontrolling interest in partially owned properties	18	(17)	13	(47)
Net income attributable to Sterling Real Estate Trust	$ 2,202	$ 1,647	$ 4,015	$ 2,935
Net income per common share, basic and diluted	$ 0.23	$ 0.18	$ 0.42	$ 0.32
Comprehensive income:
Net income	$ 6,397	$ 4,821	$ 11,624	$ 8,611
Other comprehensive (loss) gain - change in fair value of interest rate swaps	(622)	3	(2,108)	7
Comprehensive income	5,775	4,824	9,516	8,618
Comprehensive income attributable to noncontrolling interest	3,788	3,176	6,229	5,681
Comprehensive income attributable to Sterling Real Estate Trust	$ 1,987	$ 1,648	$ 3,287	$ 2,937
Weighted average Common Shares outstanding	9,611,000	9,209,000	9,587,000	9,151,000

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Shares	Paid-in Capital	Accumulated Distributions in Excess of Earnings	Total Beneficial Interest	Noncontrolling Interest in Operating Partnership	Noncontrolling Interest in Partially Owned Properties	Accumulated Other Comprehensive Income (Loss)	Total
Beginning Balance at Dec. 31, 2018		$ 122,624	$ (24,741)	$ 97,883	$ 183,360	$ 2,538	$ (30)	$ 283,751
Beginning Balance (in shares) at Dec. 31, 2018	8,967,000
Shares/units redeemed		(197)		(197)	(629)			(826)
Shares/units redeemed (in shares)	(11,000)
Dividends declared			(2,374)	(2,374)	(4,661)			(7,035)
Dividends reinvested - stock dividend		1,479		1,479				1,479
Dividends reinvested - stock dividend (in shares)	82,000
Issuance of shares under optional purchase plan		929		929				929
Issuance of shares under optional purchase plan (in shares)	49,000
Change in fair value of interest rate swaps							4	4
Net income			1,288	1,288	2,532	(30)		3,790
Ending balance at Mar. 31, 2019		124,835	(25,827)	99,008	180,602	2,508	(26)	282,092
Ending balance (in shares) at Mar. 31, 2019	9,087,000
Beginning Balance at Dec. 31, 2018		122,624	(24,741)	97,883	183,360	2,538	(30)	283,751
Beginning Balance (in shares) at Dec. 31, 2018	8,967,000
Dividends reinvested - stock dividend								$ 3,033
Dividends reinvested - stock dividend (in shares)								168,000
Change in fair value of interest rate swaps								$ 7
Net income								8,611
Ending balance at Jun. 30, 2019		127,030	(26,585)	100,445	178,863	2,491	(23)	281,776
Ending balance (in shares) at Jun. 30, 2019	9,206,000
Beginning Balance at Mar. 31, 2019		124,835	(25,827)	99,008	180,602	2,508	(26)	282,092
Beginning Balance (in shares) at Mar. 31, 2019	9,087,000
Shares/units redeemed		(154)		(154)	(273)			(427)
Shares/units redeemed (in shares)	(9,000)
Dividends declared			(2,405)	(2,405)	(4,657)			(7,062)
Dividends reinvested - stock dividend		1,554		1,554				1,554
Dividends reinvested - stock dividend (in shares)	86,000
Issuance of shares under optional purchase plan		795		795				795
Issuance of shares under optional purchase plan (in shares)	42,000
Change in fair value of interest rate swaps							3	3
Net income			1,647	1,647	3,191	(17)		4,821
Ending balance at Jun. 30, 2019		127,030	(26,585)	100,445	178,863	2,491	(23)	281,776
Ending balance (in shares) at Jun. 30, 2019	9,206,000
Beginning Balance at Dec. 31, 2019		131,261	(28,888)	102,373	174,221	2,416	37	$ 279,047
Beginning Balance (in shares) at Dec. 31, 2019	9,436,000							9,436,000
Contribution of assets in exchange for the issuance of noncontrolling interest shares					9,031			$ 9,031
Shares/units redeemed		(696)		(696)	(541)			(1,237)
Shares/units redeemed (in shares)	(38,000)
Dividends declared			(2,527)	(2,527)	(4,831)			(7,358)
Dividends reinvested - stock dividend		1,584		1,584				1,584
Dividends reinvested - stock dividend (in shares)	87,000
Issuance of shares under optional purchase plan		1,203		1,203				1,203
Issuance of shares under optional purchase plan (in shares)	62,000
Change in fair value of interest rate swaps							(1,486)	(1,486)
Net income			1,813	1,813	3,419	(5)		5,227
Ending balance at Mar. 31, 2020		133,352	(29,602)	103,750	181,299	2,411	(1,449)	286,011
Ending balance (in shares) at Mar. 31, 2020	9,547,000
Beginning Balance at Dec. 31, 2019		131,261	(28,888)	102,373	174,221	2,416	37	$ 279,047
Beginning Balance (in shares) at Dec. 31, 2019	9,436,000							9,436,000
Dividends reinvested - stock dividend								$ 3,192
Dividends reinvested - stock dividend (in shares)								175,000
Change in fair value of interest rate swaps								$ (2,108)
Net income								11,624
Ending balance at Jun. 30, 2020		134,532	(29,944)	104,588	180,439	2,429	(2,071)	$ 285,385
Ending balance (in shares) at Jun. 30, 2020	9,610,000							9,610,000
Beginning Balance at Mar. 31, 2020		133,352	(29,602)	103,750	181,299	2,411	(1,449)	$ 286,011
Beginning Balance (in shares) at Mar. 31, 2020	9,547,000
Shares/units redeemed		(1,039)		(1,039)	(209)			(1,248)
Shares/units redeemed (in shares)	(57,000)
Dividends declared			(2,544)	(2,544)	(4,828)			(7,372)
Dividends reinvested - stock dividend		1,608		1,608				1,608
Dividends reinvested - stock dividend (in shares)	88,000
Issuance of shares under optional purchase plan		611		611				611
Issuance of shares under optional purchase plan (in shares)	32,000
Change in fair value of interest rate swaps							(622)	(622)
Net income			2,202	2,202	4,177	18		6,397
Ending balance at Jun. 30, 2020		$ 134,532	$ (29,944)	$ 104,588	$ 180,439	$ 2,429	$ (2,071)	$ 285,385
Ending balance (in shares) at Jun. 30, 2020	9,610,000							9,610,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
OPERATING ACTIVITIES
Net income	$ 11,624	$ 8,611
Adjustments to reconcile net income to net cash from operating activities
Gain on sale of real estate investments	(1,456)
Gain on involuntary conversion	(52)	(329)
Equity in income of unconsolidated affiliates	(238)	(394)
Distributions of earnings of unconsolidated affiliates	238	394
Allowance for uncollectible accounts receivable	40	200
Depreciation	9,755	9,906
Amortization	733	959
Amortization of debt issuance costs	301	310
Effects on operating cash flows due to changes in
Other assets	1,976	1,136
Tenant security deposits payable	361	235
Accrued expenses and other liabilities	(1,761)	(1,892)
NET CASH PROVIDED BY OPERATING ACTIVITIES	21,521	19,136
INVESTING ACTIVITIES
Purchase of real estate investment properties	(375)
Capital expenditures and tenant improvements	(15,437)	(4,005)
Proceeds from sale of real estate investments and non-real estate investments	5,483
Proceeds from involuntary conversion	774	1,065
Investment in unconsolidated affiliates	(501)
Distributions in excess of earnings received from unconsolidated affiliates	141	50
Notes receivable issued	(763)	(1,006)
NET CASH USED IN INVESTING ACTIVITIES	(10,678)	(3,896)
FINANCING ACTIVITIES
Payments for financing, debt issuance and lease costs	(228)
Principal payments on special assessments payable	(290)	(239)
Proceeds from issuance of mortgage notes payable and subordinated debt	18,876
Principal payments on mortgage notes payable	(12,138)	(10,160)
Proceeds from issuance of shares under optional purchase plan	1,814	1,724
Shares/units redeemed	(2,485)	(1,253)
Dividends/distributions paid	(11,285)	(10,828)
NET CASH USED IN FINANCING ACTIVITIES	(5,736)	(20,756)
NET CHANGE IN CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSITS	5,107	(5,516)
CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSITS AT BEGINNING OF PERIOD	17,382	30,065
CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSITS AT END OF PERIOD	$ 22,489	$ 24,549

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS - Supplemental Disclosures - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSITS AT END OF PERIOD
Cash and cash equivalents	$ 8,697	$ 16,617
Restricted deposits	13,792	7,932
TOTAL CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSITS, END OF PERIOD	22,489	24,549
SCHEDULE OF CASH FLOW INFORMATION
Cash paid during the period for interest, net of capitalized interest	8,297	9,024
SUPPLEMENTARY SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Dividends reinvested	3,192	3,033
Dividends declared and not paid	2,544	2,405
UPREIT distributions declared and not paid	4,828	4,657
Acquisition of assets in exchange for the issuance of noncontrolling interest units in UPREIT	9,031
Increase in land improvements due to increase in special assessments payable	72	213
Unrealized (loss) gain on interest rate swaps	(2,108)	7
Acquisition of assets with new financing	3,225
Acquisition of assets through assumption of debt and liabilities	265	$ 23
Capitalized interest and real estate taxes related to construction in progress	$ 329

ORGANIZATION

ORGANIZATION	6 Months Ended
	Jun. 30, 2020
ORGANIZATION
ORGANIZATION	Note 1 - Organization ​ Sterling Real Estate Trust d/b/a Sterling Multifamily Trust (“Sterling”, “the Trust” or “the Company”) is a registered, but unincorporated business trust organized in North Dakota in December 2002. Sterling has elected to be taxed as a Real Estate Investment Trust (“REIT”) under Sections 856-860 of the Internal Revenue Code, which requires that 75% of the assets of a REIT must consist of real estate assets and that 75% of its gross income must be derived from real estate. The net income of the REIT is allocated in accordance with the stock ownership in the same fashion as a regular corporation. ​ Sterling previously established an operating partnership (“Sterling Properties, LLLP”) and transferred all of its assets and liabilities to the operating partnership in exchange for general partnership units. As the general partner of Sterling Properties, LLLP, Sterling has management responsibility for all activities of the operating partnership. As of June 30, 2020 and December 31, 2019, Sterling owned approximately 34.51% and 34.63%, respectively, of the operating partnership. ​

PRINCIPAL ACTIVITY AND SIGNIFIC

PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2020
PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES
PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES ​ Basis of Presentation ​ The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2019, which have previously been filed with the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted from this report on Form 10-Q pursuant to the rules and regulations of the SEC. ​ The results for the interim periods shown in this report are not necessarily indicative of future financial results. The accompanying consolidated balance sheet as of June 30, 2020 and consolidated statements of operations and other comprehensive income, consolidated statements of shareholders’ equity, and consolidated statements of cash flows for the three and six months ended June 30, 2020 and 2019, as applicable, have not been audited by our independent registered public accounting firm. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments necessary to present fairly our consolidated financial statements as of and for the three and six months ended June 30, 2020 and 2019. These adjustments are of a normal recurring nature. ​ Principles of Consolidation ​ The consolidated financial statements include the accounts of , Properties, LLLP, and wholly-owned limited liability companies. All significant intercompany transactions and balances have been eliminated in consolidation. ​ Additionally, we evaluate the need to consolidate affiliates based on standards set forth in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation (“ASC 810”). In determining whether we have a requirement to consolidate the accounts of an entity, management considers factors such as our ownership interest, our authority to make decisions and contractual and substantive participating rights of the limited partners and shareholders, as well as whether the entity is a variable interest entity (“VIE”) for which we have both: a) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance, and b) the obligation to absorb losses or the right to receive benefits from the VIE that could be potentially significant to the VIE. ​ ​ Principal Business Activity ​ Sterling currently owns directly and indirectly 177 properties. The Trust’s 131 residential properties are located in North Dakota, Minnesota, Missouri and Nebraska and are principally multifamily apartment buildings. The Trust owns 46 commercial properties primarily located in North Dakota with others located in Arkansas, Colorado, Iowa, Louisiana, Michigan, Minnesota, Mississippi, Nebraska and Wisconsin. The commercial properties include retail, office, industrial, restaurant and medical properties. Presently, the Trust’s mix of properties is 74.2% residential and 25.8% commercial (based on cost) and total $671,477 in real estate investments at June 30, 2020. Sterling’s current acquisition strategy and primary focus is on multifamily apartment properties. We currently have no plans to actively market our existing commercial properties for sale. We will consider unsolicited offers for purchase of non-multifamily properties on a case by case basis. ​ ​ ​ ​ ​ ​ ​ ​ Residential Property Location No. of Properties Units ​ ​ North Dakota ​ 111 ​ 6,348 ​ ​ Minnesota ​ 16 ​ 3,033 ​ ​ Missouri ​ 1 ​ 164 ​ ​ Nebraska ​ 3 ​ 495 ​ ​ ​ ​ 131 ​ 10,040 ​ ​ ​ ​ ​ ​ ​ Commercial Property Location No. of Properties Sq. Ft ​ ​ North Dakota ​ 20 ​ 780,000 ​ ​ Arkansas ​ 2 ​ 28,000 ​ ​ Colorado ​ 1 ​ 17,000 ​ ​ Iowa ​ 1 ​ 33,000 ​ ​ Louisiana ​ 1 ​ 15,000 ​ ​ Michigan ​ 1 ​ 12,000 ​ ​ Minnesota ​ 13 ​ 664,000 ​ ​ Mississippi ​ 1 ​ 15,000 ​ ​ Nebraska ​ 1 ​ 19,000 ​ ​ Wisconsin ​ 5 ​ 63,000 ​ ​ ​ ​ 46 ​ 1,646,000 ​ ​ Concentration of Credit Risk ​ Our cash balances are maintained in various bank deposit accounts. The bank deposit amounts in these accounts may exceed federally insured limits at various times throughout the year. ​ Use of Estimates ​ The preparation of consolidated financial statements in conformity with 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ​ Real Estate Investments ​ Real estate investments are recorded at cost less accumulated depreciation. Ordinary repairs and maintenance are expensed as incurred. ​ The Trust allocates the purchase price of each acquired investment property accounted for as an asset acquisition based upon the estimated acquisition date fair value of the individual assets acquired and liabilities assumed, which generally include (i) land, (ii) building and other improvements, (iii) in-place lease value intangibles, (iv) acquired above and below market lease intangibles, and (v) any assumed financing that is determined to be above or below market, if any. Transaction costs related to acquisitions accounted for as asset acquisitions are capitalized as incurred and included as a cost of the Building in the accompanying balance sheet. ​ For tangible assets acquired, including land, building and other improvements, the Trust considers available comparable market and industry information in estimating fair value on the acquisition date. Key factors considered in the calculation of fair value of both real property and intangible assets include the current market rent values, “dark” periods (building in vacant status), direct costs estimated with obtaining a new tenant, discount rates, escalation factors, standard lease terms, and tenant improvement costs. The Trust allocates a portion of the purchase price to the estimated acquired in-place lease value intangibles based on factors available in third party appraisals or cash flow estimates of the property prepared by our internal analysis. These estimates are based upon cash flow projections for the property, existing leases, lease origination costs for similar leases as well as lost rental payments during an assumed lease-up period. The Trust also evaluates each acquired lease as compared to current market rates. If an acquired lease is determined to be above or below market, the Trust allocates a portion of the purchase price to such above or below market leases based upon the present value of the difference between the contractual lease payments and estimated market rent payments over the remaining lease term. Renewal periods are included within the lease term in the calculation of above and below market lease values if, based upon factors known at the acquisition date, market participants would consider it reasonably assured that the lessee would exercise such options. Fair value estimates used in acquisition accounting, including the discount rate used, require the Trust to consider various factors, including, but not limited to, market knowledge, demographics, age and physical condition of the property, geographic location, and size and location of tenant spaces within the acquired investment property. ​ The portion of the purchase price allocated to acquired in-place lease value intangibles is amortized on a straight-line basis over the life of the related lease as amortization expense. The Trust incurred amortization expense pertaining to acquired in-place lease value intangibles of $315 and $418 for the three months ended June 30, 2020 and 2019, respectively and $656 and $847 for the six months ended June 30, 2020 and 2019, respectively. ​ The portion of the purchase price allocated to acquired above and below market lease intangibles is amortized on a straight-line basis over the life of the related lease as an adjustment to real estate rental income. Amortization pertaining to above market lease intangibles of $47 and $54 for the three months ended June 30, 2020 and 2019, respectively, was recorded as a reduction to real estate rental income. Amortization pertaining to below market lease intangibles of $54 and $66 for the three months ended June 30, 2020 and 2019, respectively, was recorded as an increase to real estate rental income. Amortization pertaining to above market lease intangibles of $99 and $107 for the six months ended June 30, 2020 and 2019, respectively, was recorded as a reduction to real estate rental income. Amortization pertaining to below market lease intangibles of $110 and $133 for the six months ended June 30, 2020 and 2019, respectively, was recorded as an increase to real estate rental income. ​ Furniture and fixtures are stated at cost less accumulated depreciation. Expenditures for renewals and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Expenditures for routine maintenance and repairs, which do not add to the value or extend useful lives, are charged to expense as incurred. ​ Depreciation is provided for over the estimated useful lives of the individual assets using the straight-line method over the following estimated useful lives: ​ ​ ​ ​ ​ Buildings and improvements 40 years Furniture, fixtures and equipment 5 - 9 years ​ Depreciation expense for the three months ended June 30, 2020 and 2019 totaled $4,887 and $4,893, respectively. Depreciation expense for the six months ended June 30, 2020 and 2019 totaled $9,755 and $9,906, respectively. ​ The Trust’s investment properties are reviewed for potential impairment at the end of each reporting period whenever events or changes in circumstances indicate that the carrying value may not be recoverable. At the end of each reporting period, the Trust separately determines whether impairment indicators exist for each property. ​ Examples of situations considered to be impairment indicators include, but are not limited to: ​ ● a substantial decline or continued low occupancy rate; ● continued difficulty in leasing space; ● significant financially troubled tenants; ● a change in plan to sell a property prior to the end of its useful life or holding period; ● a significant decrease in market price not in line with general market trends; and ● any other quantitative or qualitative events or factors deemed significant by the Trust’s management or board of trustees. ​ If the presence of one or more impairment indicators as described above is identified at the end of the reporting period or throughout the year with respect to an investment property, the asset is tested for recoverability by comparing its carrying value to the estimated future undiscounted cash flows. An investment property is considered to be impaired when the estimated future undiscounted cash flows are less than its current carrying value. When performing a test for recoverability or estimating the fair value of an impaired investment property, the Trust makes complex or subjective assumptions which include, but are not limited to: ​ ● projected operating cash flows considering factors such as vacancy rates, rental rates, lease terms, tenant financial strength, demographics, holding period and property location; ● projected capital expenditures and lease origination costs; ● projected cash flows from the eventual disposition of an operating property using a property specific capitalization rate; ● comparable selling prices; and ● property specific discount rates for fair value estimates as necessary. ​ To the extent impairment has occurred, the Trust will record an impairment charge calculated as the excess of the carrying value of the asset over its fair value for impairment of investment properties. There were no impairment losses during the six months ended June 30, 2020 and 2019. ​ Properties Held for Sale ​ We account for our properties held for sale in accordance with FASB ASC 360, Property, Plant and Equipment (“ASC 360”), which addresses financial accounting and reporting in a period in which a component or group of components of an entity either has been disposed of or is classified as held for sale. ​ In accordance with ASC 360, at such time as a property is held for sale, such property is carried at the lower of: (1) its carrying amount, or (2) fair value less costs to sell. In addition, a property being held for sale ceases to be depreciated. We classify operating properties as properties held for sale in the period in which all of the following criteria are met: ​ ● management, having the authority to approve the action, commits to a plan to sell the asset; ● the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; ● an active program to locate a buyer and other actions required to complete the plan to sell the asset has been initiated; ● the sale of the asset is probable and the transfer of the asset is expected to qualify for recognition as a completed sale within one year; ● the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and ● given the actions required to complete the plan to sell the asset, it is unlikely that significant changes to the plan would be made or that the plan would be withdrawn. ​ The results of operations of a component of an entity that either has been disposed of or is classified as held-for-sale under the requirements of ASC 360 shall be reported in discontinued operations in accordance with FASB ASC 205, Presentation of Financial Statements (“ASC 205”) if such disposal or classification represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. ​ There were no properties classified as held for sale at June 30, 2020 or at December 31, 2019. ​ Construction in Progress ​ The Trust capitalizes direct and certain indirect project costs incurred during the development period such as construction, insurance, architectural, legal, interest and other financing costs, and real estate taxes. At such time as the development is considered substantially complete, the capitalization of certain indirect costs such as real estate taxes and interest and financing costs cease and all project-related costs included in construction in process are reclassified to land and building and other improvements. ​ Construction in progress as of June 30, 2020 consists primarily of development and planning costs associated with the Glen Pond development in Eagan, Minnesota and the Goldmark Office Park 1715 building located in Fargo, North Dakota. The Glen Pond development consists of 114 units of multifamily property. Current expectations are that the project will be completed in the third quarter of calendar year 2020 and the current project budget approximates $16,175 of which $15,698 has been incurred and is included in Construction in progress. The Goldmark Office Park consists of three commercial office buildings. Current expectations are that the project which includes building renovations, reconstruction of portions of the office park and additional amenities will be completed in phases with the primary phase completed in the third quarter of calendar year 2020. The current project budget is approximately $6,674 of which $5,266 has been incurred and is included in Construction in progress. ​ Cash, Cash Equivalents and Restricted Deposits ​ We classify highly liquid investments with a maturity of three months or less when purchased as cash equivalents. Restricted deposits include funds escrowed for tenant security deposits, real estate tax, insurance and mortgage escrow and escrow deposits required by lenders on certain properties to be used for future building renovations or tenant improvements and potential Internal Revenue Code Section 1031 tax deferred exchanges (1031 Exchange). ​ Investment in Unconsolidated Affiliates ​ We account for unconsolidated affiliates using the equity method of accounting per guidance established under FASB ASC 323, Investments – Equity Method and Joint Ventures (“ASC 323”). The equity method of accounting requires the investment to be initially recorded at cost and subsequently adjusted for our share of equity in the affiliates’ earnings, contributions and distributions. We evaluate the carrying amount of the investments for impairment in accordance with FASB ASC 323. Unconsolidated affiliates are reviewed for potential impairment if the carrying amount of the investment exceeds its fair value. An impairment charge is recorded when an impairment is deemed to be other-than-temporary. To determine whether impairment is other-than-temporary, we consider whether we have the ability and intent to hold the investment until the carrying amount is fully recovered. The evaluation of an investment in an affiliate for potential impairment can require our management to exercise significant judgments. No impairment losses were recorded related to the unconsolidated affiliates for the six months ended June 30, 2020 and 2019. ​ We use the equity method to account for investments that qualify as variable interest entities where we are not the primary beneficiary and entities that we do not control or where we do not own a majority of the economic interest but have the ability to exercise significant influence over the operations and financial policies of the investee and entities where we have joint control and other attributes resulting in a joint venture. We will also use the equity method for investments that do not qualify as variable interest entities and do not meet the control requirements for consolidation, as defined in ASC 810. For a joint venture accounted for under the equity method, our share of net earnings and losses is reflected in income when earned and distributions are credited against our investment in the joint venture as received. ​ In determining whether an investment in a limited liability company or tenant in common is a variable interest entity, we consider: the form of our ownership interest and legal structure; the size of our investment; the financing structure of the entity, including the necessity of subordinated debt; estimates of future cash flows; our and our partner’s ability to participate in the decision making related to acquisitions, dispositions, budgeting and financing on the entity; and obligation to absorb losses and preferential returns. As of June 30, 2020, our tenant in common arrangements do not qualify as variable interest entities and do not meet the control requirements for consolidation, as defined in ASC 810. As of June 30, 2020, our investment in the joint venture does not qualify as a variable interest entity, does not meet the control requirements for consolidation or significant influence requirements, as defined in ASC 810, and does meet the definition of a joint venture. ​ As of June 30, 2020 and December 31, 2019, the unconsolidated affiliates held total assets of $34,285 and $31,261 and mortgage notes payable of $21,878 and $16,690, respectively. ​ The operating partnership is a 50% owner of a retail center as a tenant in common through 100% ownership in a limited liability company. The retail center has approximately 183,000 square feet of commercial space in Grand Forks, North Dakota. The property is encumbered by a non-recourse first mortgage with a balance at June 30, 2020 and December 31, 2019 of $10,140 and $10,264, respectively. The Trust is jointly and severally liable for the full mortgage balance. ​ The operating partnership owns a 66.67% interest as tenant in common in an office building with approximately 75,000 square feet of commercial rental space in Fargo, North Dakota. The property is encumbered by a first mortgage with a balance at June 30, 2020 and December 31, 2019 of $6,331 and $6,426, respectively. The Trust is jointly and severally liable for the full mortgage balance. ​ The operating partnership owns a 60% interest in a joint venture that is developing a 190 unit multifamily property in Savage, Minnesota. The property is encumbered by a first construction mortgage with a balance at June 30, 2020 of $5,407 and no mortgage balance at December 31, 2019. The operating partnership has contributed $3,305 in cash as of June 30, 2020. The partnership holds total assets of $12,407. The Trust is jointly and severally liable for the full mortgage balance. ​ The operating partnership owns a 60% interest in a joint venture that intends to develop a 160 unit multifamily property. The operating partnership has contributed $2,461 in cash as of June 30, 2020. The Partnership holds land located in Maple Grove, Minnesota, total assets of $4,100, and no mortgage payable. ​ Receivables ​ Receivables consist primarily of amounts due for rent and tenant charges. Accounts receivable are carried at original amounts billed. The operating partnership reviews collectability of charges under its tenant operating leases on a quarterly basis. In the event that collectability is deemed not probable for any tenant charges, the operating partnership recognizes an adjustment to rental income. ​ Notes receivable are issued periodically and are secured and interest bearing. ​ Financing and Lease Costs ​ Financing costs have been capitalized and are being amortized over the life of the financing (line of credit) using the effective interest method. Unamortized financing costs are written off when debt is retired before the maturity date and included in interest expense at that time. ​ Lease costs incurred in connection with new leases have been capitalized and are being amortized over the life of the lease using the straight-line method. We record the amortization of leasing costs in depreciation and amortization on the consolidated statements of operations and comprehensive income. If an applicable lease terminates prior to the expiration of its initial lease term, we write off the carrying amount of the costs to amortization expense. ​ Debt Issuance Costs ​ We amortize external debt issuance costs using the effective interest rate method, over the estimated life of the related debt. We record debt issuance costs related to notes and mortgage notes, net of amortization, on our consolidated balance sheets as an offset to their related debt. We record debt issuance costs related to revolving lines of credit on our consolidated balance sheets as financing fees, regardless of whether a balance on the line of credit is outstanding. We record the amortization of all debt issuance costs as interest expense. ​ Lease Intangible Assets ​ Lease intangibles are a purchase price allocation recorded on property acquisition. The lease intangibles represent the estimated value of in-place leases, tenant relationships and the value of leases with above or below market lease terms. Lease intangibles are amortized over the term of the related lease. ​ The carrying amount of intangible assets is regularly reviewed for indicators of impairments in value. Impairment is recognized only if the carrying amount of the intangible asset is considered to be unrecoverable from its undiscounted cash flows and is measured as the difference between the carrying amount and the estimated fair value of the asset. Based on the review, management determined no impairment charges were necessary at June 30, 2020 and December 31, 2019. ​ Noncontrolling Interest ​ A noncontrolling interest in a subsidiary (minority interest) is in most cases an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements and separate from the parent company’s equity. In addition, consolidated net income is required to be reported at amounts that include the amounts attributable to both the parent and the noncontrolling interest and the amount of consolidated net income attributable to the parent and the noncontrolling interest are required to be disclosed on the face of the consolidated statements of operations and comprehensive income. ​ Operating Partnership: Interests in the operating partnership held by limited partners are represented by operating partnership units. The operating partnership’s income is allocated to holders of units based upon the ratio of their holdings to the total units outstanding during the period. Capital contributions, distributions, syndication costs, and profits and losses are allocated to noncontrolling interests in accordance with the terms of the operating partnership agreement. ​ Partially Owned Properties: The Trust reflects noncontrolling interests in partially owned properties on the balance sheet for the portion of properties consolidated by the Trust that are not wholly owned by the Trust. The earnings or losses from those properties attributable to the noncontrolling interests are reflected as noncontrolling interests in partially owned properties in the consolidated statement of operations and comprehensive income. ​ Syndication Costs ​ Syndication costs consist of costs paid to attorneys, accountants, and selling agents, related to the raising of capital. Syndication costs are recorded as a reduction to beneficial and noncontrolling interest. ​ Federal Income Taxes ​ We have elected to be taxed as a REIT under the Internal Revenue Code, as amended. A REIT calculates taxable income similar to other domestic corporations, with the major difference being a REIT is entitled to a deduction for dividends paid. A REIT is generally required to distribute each year at least 90% of its taxable income. If it chooses to retain the remaining 10% of taxable income, it may do so, but it will be subject to a corporate tax on such income. REIT shareholders are taxed on REIT distributions of ordinary income in generally the same manner as they are taxed on other corporate distributions. ​ We intend to continue to qualify as a REIT and, provided we maintain such status, will not be taxed on the portion of the income that is distributed to shareholders. In addition, we intend to distribute all of our taxable income; therefore, no provisions or liabilities for income taxes have been recorded in the financial statements. ​ Sterling conducts its business activity as an Umbrella Partnership Real Estate Investment Trust (“UPREIT”) through its Operating Partnership – Sterling Properties, LLLP. The Operating Partnership is organized as a limited liability limited partnership. Income or loss is allocated to the partners in accordance with the provisions of the Internal Revenue Code 704(b) and 704(c). UPREIT status allows non-recognition of gain by an owner of appreciated real estate if that owner contributes the real estate to a partnership in exchange for a partnership interest. The conversion of a partnership interest to shares of beneficial interest in the REIT will be a taxable event to the limited partner. ​ We follow FASB ASC Topic 740, Income Taxes, ​ The operating partnership has elected to record related interest and penalties, if any, as income tax expense on the consolidated statements of operations and other comprehensive income. ​ Revenue Recognition ​ The Trust is the lessor for its residential and commercial leases. Leases are analyzed on an individual basis to determine lease classification. The Trust has determined any lease less than ten years in length will not be looked at in the classification process and will be presumed an operating lease. As of June 30, 2020, all leases analyzed under the Trust’s lease classification process were determined to be operating leases. As of June 30, 2019, all leases continued to be accounted for as operating leases under the new standard as described under Recent Accounting Pronouncements. ​ As of June 30, 2020, we derived 79.7% of our revenues from residential leases that are generally for terms of one year or less. The residential leases may include lease income related to such items as parking, storage and non-refundable deposits that we treat as a single lease component because the amenities cannot be leased on their own and the timing and pattern of revenue recognition are the same. The collection of lease payments at lease commencement is probable and therefore we subsequently recognize lease income over the lease term on a straight-line basis. Residential leases are renewable upon consent of both parties on an annual or monthly basis. ​ As of June 30, 2020, we derived 20.3% of our revenues from commercial leases primarily under long-term lease agreements. Substantially all commercial leases contain fixed escalations or, in some instances, changes based on the Consumer Price Index, which occur at specified times during the term of the lease. In certain commercial leases, variable lease income, such as percentage rent, is recognized when rents are earned. We recognize rental income and rental abatements from our commercial leases when earned on a straight-line basis over the lease term. Recognition of rental income commences when control of the leased space has been transferred to the tenant. ​ We recognize variable income from pass-through expenses on an accrual basis over the periods in which the expenses were incurred. Pass-through expenses are comprised of real estate taxes, operating expenses and common area maintenance costs which are reimbursed by tenants in accordance with specific allowable costs per tenant lease agreements. When we pay pass-through expenses, subject to reimbursement by the tenant, they are included within “Operating expenses, excluding real estate taxes” and “Real estate taxes,” and reimbursements are included within “Real estate rental income” along with the associated base rent in the accompanying consolidated financial statements. ​ We record base rents on a straight-line basis. The monthly base rent income according to the terms of our leases is adjusted so that an average monthly rent is recorded for each tenant over the term of its lease. The straight-line rent adjustment decreased revenue by $73 and $48 for the three months ended June 30, 2020 and 2019, respectively. The straight-line rent adjustment decreased revenue by $138 and increased revenue by $55 the six months ended June 30, 2020 and 2019, respectively. The straight-line receivable balance included in receivables on the consolidated balance sheets as of June 30, 2020 and December 31, 2019 was $3,014 and $3,331, respectively. We receive payments for expense reimbursements from substantially all our multi-tenant commercial tenants throughout the year based on estimates. Differences between estimated recoveries and the final billed amounts, which generally are immaterial, are recognized in the subsequent year. ​ Upon adoption of ASU 2016-02 on January 1, 2019, we elected not to bifurcate lease contracts into lease and non-lease components, since the timing and pattern of revenue is not materially different and the non-lease component is not the primary component of the lease. Accordingly, both lease and non-lease components are presented in “Real estate rental income” beginning January 1, 2019 in our consolidated financial statements. The adoption of ASU 2016-02 did not result in a material change to our recognition of real estate rental income. ​ Lease income related to the Trust’s operating leases is comprised of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2020 ​ Residential Commercial Total ​ ​ (in thousands) Lease income related to fixed lease payments ​ $ 23,613 ​ $ 5,035 ​ $ 28,648 Lease income related to variable lease payments ​ ​ — ​ ​ 1,451 ​ ​ 1,451 Other (a) ​ ​ (88) ​ ​ (76) ​ ​ (164) Lease Income (b) ​ $ 23,525 ​ $ 6,410 ​ $ 29,935 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2019 ​ Residential Commercial Total ​ ​ (in thousands) Lease income related to fixed lease payments ​ $ 23,077 ​ $ 4,929 ​ $ 28,006 Lease income related to variable lease payments ​ ​ — ​ ​ 1,551 ​ ​ 1,551 Other (a) ​ ​ (188) ​ ​ (35) ​ ​ (223) Lease Income (b) ​ $ 22,889 ​ $ 6,445 ​ $ 29,334 (a) For the three months ended June 30, 2020 and 2019, “Other” is comprised of revenue adjustments related to changes in collectability and amortization of above and below market lease intangibles and lease inducements. (b) Excludes other rental income for the three months ended June 30, 2020 and 2019 of $886 and $936 , respectively, which is accounted for under the revenue recognition s

SEGMENT REPORTING

SEGMENT REPORTING	6 Months Ended
	Jun. 30, 2020
SEGMENT REPORTING
SEGMENT REPORTING	NOTE 3 – segment reporting ​ We report our results in two reportable segments: residential and commercial properties. Our residential properties include multifamily properties. Our commercial properties include retail, office, industrial, restaurant and medical properties. We assess and measure operating results based on net operating income (“NOI”), which we define as total real estate segment revenues less real estate expenses (which consist of real estate taxes, property management fees, utilities, repairs and maintenance, insurance and direct administrative costs). We believe NOI is an important measure of operating performance even though it should not be considered an alternative to net income or cash flow from operating activities. NOI is unaffected by financing, depreciation, amortization and certain general and administrative expenses. The accounting policies of each segment are consistent with those described in Note 2 of this report. ​ Segment Revenues and Net Operating Income ​ The revenues and net operating income for the reportable segments (residential and commercial) are summarized as follows for the three and six months ended June 30, 2020 and 2019, along with reconciliations to the consolidated financial statements. Segment assets are also reconciled to Total Assets as reported in the consolidated financial statements. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2020 ​ Three months ended June 30, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential Commercial Total Residential Commercial Total ​ ​ (in thousands) ​ (in thousands) Income from rental operations ​ $ 24,381 ​ $ 6,440 ​ $ 30,821 ​ $ 23,822 ​ $ 6,448 ​ $ 30,270 Expenses from rental operations ​ ​ 12,560 ​ ​ 1,540 ​ ​ 14,100 ​ ​ 12,995 ​ ​ 1,856 ​ ​ 14,851 Net operating income ​ $ 11,821 ​ $ 4,900 ​ $ 16,721 ​ $ 10,827 ​ $ 4,592 ​ $ 15,419 Depreciation and amortization ​ ​ ​ ​ ​ ​ ​ ​ 5,246 ​ ​ ​ ​ ​ ​ ​ ​ 5,353 Interest ​ ​ ​ ​ ​ ​ ​ ​ 4,224 ​ ​ ​ ​ ​ ​ ​ ​ 4,582 Administration of REIT ​ ​ ​ ​ ​ ​ ​ ​ 1,085 ​ ​ ​ ​ ​ ​ ​ ​ 971 Other (income)/expense ​ ​ ​ ​ ​ ​ ​ ​ (231) ​ ​ ​ ​ ​ ​ ​ ​ (308) Net income ​ ​ ​ ​ ​ ​ ​ $ 6,397 ​ ​ ​ ​ ​ ​ ​ $ 4,821 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2020 ​ Six months ended June 30, 2019 ​ Residential Commercial Total Residential Commercial Total ​ ​ (in thousands) ​ (in thousands) Income from rental operations ​ $ 48,376 ​ $ 12,351 ​ $ 60,727 ​ $ 47,258 ​ $ 12,844 ​ $ 60,102 Expenses from rental operations ​ ​ 26,472 ​ ​ 3,327 ​ ​ 29,799 ​ ​ 26,384 ​ ​ 3,675 ​ ​ 30,059 Net operating income ​ $ 21,904 ​ $ 9,024 ​ $ 30,928 ​ $ 20,874 ​ $ 9,169 ​ $ 30,043 Depreciation and amortization ​ ​ ​ ​ ​ ​ ​ ​ 10,498 ​ ​ ​ ​ ​ ​ ​ ​ 10,891 Interest ​ ​ ​ ​ ​ ​ ​ ​ 8,574 ​ ​ ​ ​ ​ ​ ​ ​ 9,298 Administration of REIT ​ ​ ​ ​ ​ ​ ​ ​ 2,247 ​ ​ ​ ​ ​ ​ ​ ​ 2,082 Other (income)/expense ​ ​ ​ ​ ​ ​ ​ ​ (2,015) ​ ​ ​ ​ ​ ​ ​ ​ (839) Net income ​ ​ ​ ​ ​ ​ ​ $ 11,624 ​ ​ ​ ​ ​ ​ ​ $ 8,611 ​ Segment Assets and Accumulated Depreciation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of June 30, 2020 Residential Commercial Total ​ ​ (in thousands) Real estate investments ​ $ 629,968 ​ $ 196,134 ​ $ 826,102 Accumulated depreciation ​ ​ (111,432) ​ ​ (43,193) ​ ​ (154,625) ​ ​ $ 518,536 ​ $ 152,941 ​ ​ 671,477 Cash and cash equivalents ​ ​ ​ ​ ​ ​ ​ ​ 8,697 Restricted deposits and funded reserves ​ ​ ​ ​ ​ ​ ​ ​ 13,792 Investment in unconsolidated affiliates ​ ​ ​ ​ ​ ​ ​ ​ 8,275 Note receivable ​ ​ ​ ​ ​ ​ ​ ​ 2,063 Intangible assets, less accumulated amortization ​ ​ ​ ​ ​ ​ ​ ​ 8,032 Other assets, net ​ ​ ​ ​ ​ ​ ​ ​ 6,339 Total Assets ​ ​ ​ ​ ​ ​ ​ $ 718,675 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2019 Residential Commercial Total ​ ​ (in thousands) Real estate investments ​ $ 605,813 ​ $ 196,215 ​ $ 802,028 Accumulated depreciation ​ ​ (104,170) ​ ​ (42,146) ​ ​ (146,316) ​ ​ $ 501,643 ​ $ 154,069 ​ ​ 655,712 Cash and cash equivalents ​ ​ ​ ​ ​ ​ ​ ​ 9,002 Restricted deposits and funded reserves ​ ​ ​ ​ ​ ​ ​ ​ 8,380 Investment in unconsolidated affiliates ​ ​ ​ ​ ​ ​ ​ ​ 7,915 Note receivable ​ ​ ​ ​ ​ ​ ​ ​ 1,300 Intangible assets, less accumulated amortization ​ ​ ​ ​ ​ ​ ​ ​ 9,133 Other assets, net ​ ​ ​ ​ ​ ​ ​ ​ 8,244 Total Assets ​ ​ ​ ​ ​ ​ ​ $ 699,686 ​

LEASE INTANGIBLES

LEASE INTANGIBLES	6 Months Ended
	Jun. 30, 2020
LEASE INTANGIBLES
LEASE INTANGIBLES	NOTE 4 - Lease intangibles ​ The following table summarizes the net value of other intangible assets and liabilities and the accumulated amortization for each class of intangible: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lease ​ Accumulated ​ Lease As of June 30, 2020 Intangibles Amortization Intangibles, net Lease Intangible Assets ​ (in thousands) In-place leases ​ $ 20,734 ​ $ (14,114) ​ $ 6,620 Above-market leases ​ ​ 2,806 ​ ​ (1,394) ​ ​ 1,412 ​ ​ $ 23,540 ​ $ (15,508) ​ $ 8,032 Lease Intangible Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ Below-market leases ​ $ (3,032) ​ $ 1,935 ​ $ (1,097) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lease ​ Accumulated ​ Lease As of December 31, 2019 Intangibles Amortization Intangibles, net Lease Intangible Assets ​ (in thousands) In-place leases ​ $ 21,480 ​ $ (14,051) ​ $ 7,429 Above-market leases ​ ​ 3,211 ​ ​ (1,507) ​ ​ 1,704 ​ ​ $ 24,691 ​ $ (15,558) ​ $ 9,133 Lease Intangible Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ Below-market leases ​ $ (3,088) ​ $ 1,881 ​ $ (1,207) ​ ​ The estimated aggregate amortization expense for each of the five succeeding fiscal years and thereafter is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intangible ​ Intangible Years ending December 31, Assets Liabilities ​ ​ (in thousands) 2020 (July 1, 2020 - December 31, 2020) ​ $ 665 ​ $ 103 2021 ​ ​ 1,121 ​ ​ 184 2022 ​ ​ 987 ​ ​ 164 2023 ​ ​ 849 ​ ​ 151 2024 ​ ​ 849 ​ ​ 151 Thereafter ​ ​ 3,561 ​ ​ 344 ​ ​ $ 8,032 ​ $ 1,097 ​ The weighted average amortization period for the intangible assets, in-place leases, above-market leases, and below-market leases acquired as of June 30, 2020 was 6.6 years.

LINES OF CREDIT

LINES OF CREDIT	6 Months Ended
	Jun. 30, 2020
LINES OF CREDIT
LINES OF CREDIT	NOTE 5 – LINES OF CREDIT ​ We have a $18,300 variable rate (1-month LIBOR plus 2.25%) line of credit agreement with Wells Fargo Bank, which expires in June 2021 ; a $4,915 variable rate (prime rate less 0.5% ) line of credit agreement with Bremer Bank, which expires in June 2022 ; a $5,000 variable rate (floating LIBOR plus 2.00%) line of credit agreement with Bremer Bank, which expires June 2022 ; and a $3,200 variable rate (LIBOR plus 2.04% ) line of credit agreement with Bank of the West, which expires November 2020 . The lines of credit are secured by properties in Duluth, Edina, Moorhead and St. Cloud, Minnesota; and Bismarck, Dickinson, Grand Forks and Fargo, North Dakota. At June 30, 2020, the Bremer line of credit secured two letters of credit totaling $1,216 , leaving $30,199 available and unused under the agreements. ​ Certain line of credit agreements includes covenants that, in part, impose maintenance of certain debt service coverage and debt to net worth ratios on an annual and semi-annual basis. As of June 30, 2020, we were in compliance with all measured debt covenants. As of December 31, 2019, three residential properties were out of compliance with Bremer’s debt service coverage ratio requirement on an individual property basis. An annual waiver was received from the lender. ​

MORTGAGE NOTES PAYABLE

MORTGAGE NOTES PAYABLE	6 Months Ended
	Jun. 30, 2020
MORTGAGE NOTES PAYABLE
MORTGAGE NOTES PAYABLE	NOTE 6 - MORTGAGE NOTES PAYABLE ​ The following table summarizes the Trust’s mortgage notes payable. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Principal Balance At ​ ​ June 30, ​ December 31, ​ ​ 2020 ​ 2019 ​ ​ (in thousands) Fixed rate mortgage notes payable (a) ​ $ 405,001 ​ $ 395,038 Less unamortized debt issuance costs ​ ​ 1,833 ​ ​ 1,874 ​ ​ $ 403,168 ​ $ 393,164 (a) Includes $26,205 and $12,960 of variable rate mortgage debt that was swapped to a fixed rate at June 30, 2020 and December 31, 2019, respectively. ​ As of June 30, 2020, we had 122 mortgage loans with effective interest rates ranging from 2.43% to 6.85% per annum and a weighted average effective interest rate of 4.18% per annum. ​ As of December 31, 2019, we had 121 mortgage loans with effective interest rates ranging from 3.15% to 7.25% per annum, and a weighted average effective interest rate of 4.31% per annum. ​ The majority of the Trust’s mortgages payable require monthly payments of principal and interest. Certain mortgages require reserves for real estate taxes and certain other costs. Mortgages are secured by the respective properties, assignment of rents, business assets, deeds to secure debt, deeds of trust and/or cash deposits. ​ ​ Certain mortgage note agreements include covenants that, in part, impose maintenance of certain debt service coverage and debt to net worth ratios. We are not required to determine compliance with our covenants as of June 30, 2020; however, we have not received any notice of non-compliance with our covenants through the date of this filing. As of December 31, 2019, ten loans on residential properties were out of compliance with annual loan covenants due to various unit renovation and parking lot repair and maintenance costs, bad debts and increased vacancies in the North Dakota markets. The loans were secured by properties located in Bismarck, Fargo and Grand Forks, North Dakota with a total outstanding balance of $16,361 at December 31, 2019. Annual waivers were received from the lenders on $10,435 of the loans out of compliance. Annual waivers were not received from one lender on loans with a balance of $5,926. The Trust elected to pay the loans off in March 2020 with no penalty. ​ We are required to make the following principal payments on our outstanding mortgage notes payable for each of the five succeeding fiscal years and thereafter as follows: ​ ​ ​ ​ ​ Years ending December 31, Amount ​ ​ (in thousands) 2020 (July 1, 2020 - December 31, 2020) ​ $ 11,468 2021 ​ ​ 31,705 2022 ​ ​ 27,435 2023 ​ ​ 50,228 2024 ​ ​ 17,662 Thereafter ​ ​ 266,503 Total payments ​ $ 405,001 ​

DERIVATIVES AND HEDGING ACTIVIT

DERIVATIVES AND HEDGING ACTIVITIES	6 Months Ended
	Jun. 30, 2020
DERIVATIVES AND HEDGING ACTIVITIES
DERIVATIVES AND HEDGING ACTIVITIES	​ NOTE 7 – DERIVATIVES AND HEDGING ACTIVITIES ​ As part of our interest rate risk management strategy, we have used derivative instruments to manage our exposure to interest rate movements and add stability to interest expense. Interest rate swaps designated as cash flow hedges involve the receipt of variable rate amounts from a counterparty in exchange for the Trust making fixed rate payments over the life of the agreement without exchange of the underlying notional amount. ​ As of June 30, 2020, the Trust used seven interest rate swaps to hedge the variable cash flows associated with variable rate debt. Changes in fair value of the derivatives that are designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive loss and are reclassified into interest expense as interest payments are made on the Trust’s variable rate debt. Over the next six months, the Trust estimates that an additional $160 will be reclassified as a $160 increase to interest expense. ​ The following table summarizes the Trust’s interest rate swaps as of June 30, 2020, which effectively convert on month floating rate LIBOR to a fixed rate: ​ ​ ​ ​ ​ ​ ​ ​ The following table summarizes the Trust’s interest rate swaps that were designated as cash flow hedges of interest rate risk: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed ​ ​ Effective Date ​ Notional ​ Interest Rate ​ Maturity Date April 15, 2005 $ — ​ 7.25% ​ April 15, 2020 November 1, 2019 $ 7,073 ​ 3.15% ​ November 1, 2029 November 1, 2019 $ 4,913 ​ 3.28% ​ November 1, 2029 January 10, 2020 $ 3,191 ​ 3.39% ​ January 10, 2030 June 12, 2020 $ 1,600 ​ 3.07% ​ June 15, 2030 June 12, 2020 $ 3,100 ​ 3.07% ​ June 15, 2030 June 15, 2020 $ 1,736 ​ 2.94% ​ June 15, 2030 June 15, 2020 $ 4,592 ​ 2.94% ​ June 15, 2030 ​ ​ The following table summarizes the Trust’s interest rate swaps that were designated as cash flow hedges of interest rate risk: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Instruments ​ Notional Interest Rate Derivatives ​ June 30, 2020 ​ December 31, 2019 ​ June 30, 2020 ​ December 31, 2019 Interest rate swaps ​ 7 ​ 3 $ 26,205 $ 12,960 ​ The table below presents the estimated fair value of the Trust’s derivative financial instruments as well as their classification in the accompanying consolidated balance sheets. The valuation techniques are described in Note 8 to the consolidated financial statements. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives Derivatives designated as ​ June 30, 2020 ​ December 31, 2019 cash flow hedges: ​ Balance Sheet Location ​ Fair Value ​ Balance Sheet Location ​ Fair Value Interest rate swaps ​ Other assets, net $ — ​ Other assets, net $ 58 Interest rate swaps ​ Accrued expenses and other liabilities $ 2,071 ​ Accrued expenses and other liabilities $ 21 ​ The carrying amount of the swaps have been adjusted to their fair value at the end of the quarter, which because of changes in forecasted levels of LIBOR, resulted in reporting a liability for the fair value of the future net payments forecasted under the swap. The interest rate swap is accounted for as an effective hedge in accordance with ASC 815-20 whereby it is recorded at fair value and changes in fair value are recorded to comprehensive income. The following table presents the effect of the Trust’s derivative financial instruments on the accompanying consolidated statements of operations and other comprehensive loss (income) for the quarters ended June 30, 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Location of Gain ​ ​ ​ ​ Amount of (Gain)/Loss ​ Reclassified from ​ Amount of (Gain)/Loss Derivatives in ​ Recognized in Other ​ Accumulated other ​ Reclassified from Cash Flow Hedging ​ Comprehensive Income ​ Comprehensive Income ​ AOCI into income Relationships ​ on Derivatives ​ (AOCI) into Income ​ Six Months Ended ​ ​ 2020 ​ ​ ​ 2020 Interest rate swaps $ 2,108 ​ Interest expense $ 55 ​ ​ 2019 ​ ​ ​ 2019 Interest rate swaps $ (7) ​ Interest expense $ 15 ​ Credit-risk-related Contingent Features ​ The Trust has agreements with each of its derivative counterparties that contain a provision whereby if the Trust defaults on the related indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Trust could also be declared in default on its corresponding derivative obligation. ​ The Trust’s agreements with each of its derivative counterparties also contain a provision whereby if the Trust consolidates with, merges with or into, or transfers all or substantially all of its assets to another entity and the creditworthiness of the resulting, surviving or transferee entity, is materially weaker than the Trust’s, the counterparty has the right to terminate the derivative obligations. As of June 30, 2020, the termination value of derivatives in a liability position, which includes accrued interest and adjustment for non-performance risk, which the Trust has deemed not significant, was $2,071. As of June 30, 2020, the Trust has pledged the properties related to the loans which are hedged as collateral. As of June 30, 2020, if the Trust had breached any of these provisions it could have been required to settle its obligations under the agreements at their termination value of $2,071 .

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	6 Months Ended
	Jun. 30, 2020
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT	NOTE 8 - FAIR VALUE MEASUREMENT ​ The following table presents the carrying value and estimated fair value of the Trust’s financial instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 ​ December 31, 2019 ​ ​ Carrying ​ ​ ​ ​ Carrying ​ ​ ​ ​ Value Fair Value Value Fair Value ​ ​ (in thousands) Financial assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Note receivable ​ $ 2,063 ​ $ 2,191 ​ $ 1,300 ​ $ 1,389 Derivative assets ​ $ — ​ $ — ​ $ 58 ​ $ 58 ​ ​ ​ Financial liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage notes payable, net ​ $ 403,168 ​ $ 440,115 ​ $ 393,164 ​ $ 415,183 Derivative liabilities ​ $ 2,071 ​ $ 2,071 ​ $ 21 ​ $ 21 ​ The carrying values shown in the table are included in the consolidated balance sheets under the indicated captions. ASC 820-10 established a three-level valuation hierarchy for fair value measurement. Management uses these valuation techniques to establish the fair value of the assets at the measurement date. These valuation techniques are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect management’s assumptions. ​ These two types of inputs create the following fair value hierarchy: ​ ● Level 1 – Quoted prices for identical instruments in active markets; ● Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose significant inputs are observable; ● Level 3 – Instruments whose significant inputs are unobservable. ​ The guidance requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. ​ Recurring Fair Value Measurements ​ The following table presents the Trust’s financial instruments, which are measured at fair value on a recurring basis, by the level in the fair value hierarchy within which those measurements fall. Methods and assumptions used to estimate the fair value of these instruments are described after the table. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Level 2 Level 3 Total ​ ​ (in thousands) June 30, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative liabilities ​ $ — ​ $ 2,071 ​ $ — ​ $ 2,071 December 31, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative assets ​ $ — ​ $ 58 ​ $ ​ ​ $ 58 Derivative liabilities ​ $ — ​ $ 21 ​ $ — ​ $ 21 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives: ​ Although the Trust has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of June 30, 2020 and December 31, 2019, the Trust has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation. As a result, the Trust has determined that its derivative valuations in their entirety are classified within Level 2 of the fair value hierarchy. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Trust has considered any applicable credit enhancements. The Trust’s derivative instruments are further described in Note 7. ​ Fair Value Disclosures ​ The following table presents the Trust’s financial assets and liabilities, which are measured at fair value for disclosure purposes, by the level in the fair value hierarchy within which they fall. Methods and assumptions used to estimate the fair value of these instruments are described after the table. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Level 2 Level 3 Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) June 30, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage notes payable, net ​ $ — ​ $ — ​ $ 440,115 ​ $ 440,115 Note receivable ​ $ — ​ $ — ​ $ 2,191 ​ $ 2,191 December 31, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage notes payable, net ​ $ — ​ $ — ​ $ 415,183 ​ $ 415,183 Note receivable ​ $ — ​ $ — ​ $ 1,389 ​ $ 1,389 ​ Mortgage notes payable: ​ Notes receivable:

NONCONTROLLING INTEREST OF UNIT

NONCONTROLLING INTEREST OF UNITHOLDERS IN OPERATING PARTNERSHIP	6 Months Ended
	Jun. 30, 2020
NONCONTROLLING INTEREST OF UNITHOLDERS IN OPERATING PARTNERSHIP
NONCONTROLLING INTEREST OF UNITHOLDERS IN OPERATING PARTNERSHIP	NOTE 9 – NONCONTROLLING INTEREST OF UNITHOLDERS IN OPERATING PARTNERSHIP ​ As of June 30, 2020 and December 31, 2019, outstanding limited partnership units totaled 18,239,000 and 17,811,000 respectively. For the three months ended June 30, 2020 and 2019, the operating partnership declared distributions of $4,828 and $4,657 respectively, to limited partners which were paid on July 15, 2020 and 2019, respectively. Distributions per unit were $0.5294 and $0.5225 during the six months ended June 30, 2020 and 2019, respectively. ​ During the six months ended June 30, 2020 and 2019 there were no limited partnership units exchanged for common shares pursuant to redemption requests. ​ At the sole and absolute discretion of the limited partnership, and so long as our redemption plans exist, and applicable holding periods are met, Limited Partners may request the operating partnership redeem their limited partnership units. The operating partnership may choose to offer the Limited Partner: (i) cash for the redemption or, at the request of the Limited Partner, (2) offer shares in lieu of cash for the redemption on a basis of one limited partnership unit for one Sterling common share (the “Exchange Request”). The Exchange Request shall be exercised pursuant to a Notice of Exchange. If the issuance of Sterling common shares pursuant to an Exchange Request will cause the shareholder to exceed the ownership limitations, among other reasons, payment will be made to the Limited Partner in cash. No Limited Partner may exercise an Exchange Request more than twice during any calendar year, and Exchange Requests may not be made for less than 1,000 limited partnership units. If a Limited Partner owns fewer than 1,000 limited partnership units, all of the limited partnership units held by the Limited Partner must be exchanged pursuant to the Exchange Request. ​

REDEMPTION PLANS

REDEMPTION PLANS	6 Months Ended
	Jun. 30, 2020
REDEMPTION PLANS
REDEMPTION PLANS	NOTE 10 – REDEMPTION PLANS ​ Our Board of Trustees has approved redemption plans that enable our shareholders to sell their common shares and the partners of our operating partnership to sell their limited partnership units to us, after they have held the securities for at least one year and subject to other conditions and limitations described in the plans. Our redemption plans currently provide that the maximum amount that can be redeemed under the plan is $40,000 worth of securities. Currently, the fixed redemption price is $18.25 per share or unit under the plans, which price became effective January 1, 2020. Prior to January 1, 2020, the redemption price was $18.00 per share or unit under the plan. ​ We may redeem securities under the plans provided that the aggregate total has not been exceeded and we have sufficient funds to do so. The plans will terminate in the event the shares become listed on any national securities exchange, the subject of bona fide quotes on any inter-dealer quotation system or electronic communications network or are the subject of bona fide quotes in the pink sheets. Additionally, the Board, in its sole discretion, may terminate, amend or suspend the redemption plans, either or both of them, if it determines to do so in its sole discretion. ​ During the six months ended June 30, 2020 and 2019, the Trust redeemed 95,000 and 20,000 common shares valued at $1,735 and $351. In addition, during the six months ended June 30, 2020 and 2019, the Trust redeemed 41,000 and 50,000 units valued at $750 and $902. ​

BENEFICIAL INTEREST

BENEFICIAL INTEREST	6 Months Ended
	Jun. 30, 2020
BENEFICIAL INTEREST
BENEFICIAL INTEREST	NOTE 11 – BENEFICIAL INTEREST ​ We are authorized to issue 100,000,000 common shares of beneficial interest with $0.01 par value and 50,000,000 preferred shares with $0.01 par value, which collectively represent the entire beneficial interest of Sterling. As of June 30, 2020 and December 31, 2019, there were 9,610,000 and 9,436,000 common shares outstanding, respectively. We had no preferred shares outstanding as of either date. ​ Dividends paid to holders of common shares were $0.5294 per share and $0.5225 per share for the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020 and 2019, the operating partnership declared dividends of $2,544 and $2,405 respectively, to holders of commons shares which were paid on July 15, 2020 and 2019, respectively. ​ ​

DIVIDEND REINVESTMENT PLAN

DIVIDEND REINVESTMENT PLAN	6 Months Ended
	Jun. 30, 2020
DIVIDEND REINVESTMENT PLAN
DIVIDEND REINVESTMENT PLAN	NOTE 12 – DIVIDEND REINVESTMENT PLAN ​ Our Board of Trustees approved a dividend reinvestment plan to provide existing holders of our common shares with a convenient method to purchase additional common shares without payment of brokerage commissions, fees or service charges. On July 20, 2012, we registered with the Securities Exchange Commission 2,000,000 common shares to be issued under the plan on Form S-3D, which automatically became effective on July 20, 2012. On July 11, 2017, we registered with the Securities Exchange Commission an additional 2,000,000 common shares to be issued under the plan on Form S-3D, which automatically became effective on July 11, 2017. On June 25, 2020 our Board of Trustees approved of an additional 2,000,000 common shares to be issued under the dividend reinvestment plan. We plan to file a Form S-3D registration statement to register the additional shares with the Securities and Exchange Commission in the near future. ​ Under this plan, eligible shareholders may elect to have all or a portion (but not less than 25%) of the cash dividends they receive automatically reinvested in our common shares. If an eligible shareholder elects to reinvest cash dividends under the plan, the shareholder may also make additional optional cash purchases of our common shares, not to exceed $10 per fiscal quarter without our prior approval. The purchase price per common share under the plan equals 95% of the estimated value per common share for dividend reinvestments and equals 100% of the estimated value per common share for additional optional cash purchases, as determined by our Board of Trustees. In addition, eligible shareholders may not in any calendar year purchase or receive via transfer more than $40 additional optional cash purchases of Common Shares. ​ The estimated value per common share was $19.25 and $19.00 at June 30, 2020 and December 31, 2019, respectively. See discussion of determination of estimated value in Note 16. ​ Therefore, the purchase price per common share for dividend reinvestments was $18.29 and $18.05 and for additional optional cash purchases was $19.25 and $19.00 at June 30, 2020 and December 31, 2019, respectively. The Board, in its sole discretion, may amend, suspend or terminate the plan at any time, without the consent of shareholders, upon a ten-day notice to participants. ​ In the six months ended June 30, 2020, 175,000 shares were issued pursuant to dividend reinvestments and 94,000 shares were issued pursuant to additional optional cash purchases under the plan, valued at $3,192 and $1,814 respectively. In the six months ended June 30, 2019, 168,000 shares were issued pursuant to dividend reinvestments and 91,000 shares were issued pursuant to additional optional cash purchases under the plan, valued at $3,033 and $1,724 respectively. ​

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2020
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 13 – RELATED PARTY TRANSACTIONS ​ Property Management Fees ​ During the six months ended June 30, 2020 and 2019, we paid property management fees and administrative fees to GOLDMARK Property Management, Inc. GOLDMARK Property Management is owned in part by Kenneth Regan, James Wieland and Joel Thomsen. For the six months ended June 30, 2020 and 2019, we paid management fees, on-site staff costs and other miscellaneous fees required to run the property of $6,411 and $6,313, respectively, to GOLDMARK Property Management, Inc. Management fees paid during the six months ended June 30, 2020 and 2019, approximated 5% of net collected rents. In addition, during the six months ended June 30, 2020 and 2019, we paid repair and maintenance related payroll and payroll related expenses to GOLDMARK Property Management totaling $3,082 and $3,118, respectively. Board of Trustee Fees ​ We incurred Trustee fees of $35 and $29 during the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, and December 31, 2019 we owed our Trustees $64 and $29 for unpaid board of trustee fees, respectively. There is no cash retainer paid to Trustees. Instead, we pay Trustees specific amounts for meetings attended. ​ The plan provides: ​ ​ ​ ​ ​ ​ ​ Board Chairman – Board Meeting ​ 105 shares/meeting Trustee – Board Meeting ​ ​ 75 shares/meeting Committee Chair – Committee Meeting ​ ​ 30 shares/meeting Trustee – Committee Meeting ​ ​ 30 shares/meeting ​ Common shares earned in accordance with the plan are calculated on an annual basis. Shares earned pursuant to the Trustee Compensation Plan are issued on or about July 15 for Trustees’ prior year of service. Non-independent Trustees are not compensated for their service on the Board or Committees. ​ Advisory Agreement ​ We are an externally managed trust and as such, although we have a Board of Trustees and executive officers responsible for our management, we have no paid employees. The following is a brief description of the current fees and compensation that may be received by the Advisor under the Advisory Agreement, which must be renewed on an annual basis and approved by a majority of the independent trustees. The Advisory Agreement was approved by the Board of Trustees (including all the independent Trustees) on March 26, 2020, effective until March 31, 2021. ​ Management Fee : 0.35% of our total assets (before depreciation and amortization), annually. Total assets are our gross assets (before depreciation and amortization) as reflected on our consolidated financial statements, taken as of the end of the fiscal quarter last preceding the date of computation. The management fee will be payable monthly in cash or our common shares, at the option of the Advisor, not to exceed one-twelfth of 0.35% of the total assets as of the last day of the immediately preceding month. The management fee calculation is subject to quarterly and annual reconciliations. The management fee may be deferred at the option of the Advisor, without interest. ​ During the six months ended June 30, 2020 and 2019, we incurred advisory management fees of $1,538 and $1,496 with Sterling Management, LLC, our Advisor. As of June 30, 2020 and December 31, 2019, we owed our Advisor $260 and $503, respectively, for unpaid advisory management fees. These fees cover the office facilities, equipment, supplies, and staff required to manage our day-to-day operations. During the six months ended June 30, 2020 and 2019, we reimbursed the Advisor for operating costs totaling $5 and $22, respectively. As of June 30, 2020, we owed our Advisor $5 for reimbursed operating costs. ​ Acquisition Fee ​ During the six months ended June 30, 2020, we incurred acquisition fees of $302 with our Advisor. During the six months ended June 30, 2019 there were no acquisition fees incurred with our Advisor. There were no acquisition fees owed to our Advisor as of June 30, 2020 or December 31, 2019. Disposition Fee ​ During the six months ended June 30, 2020, we incurred $141 in disposition fees with our Advisor. During the six months ended June 30, 2019, there were no disposition fees incurred with our Advisor. See Note 15. There were no disposition fees owed to our Advisor as of June 30, 2020 or December 31, 2019. ​ Financing Fee ​ During the six months ended June 30, 2020, we incurred financing fees of $61 with our Advisor. During the six months ended June 30, 2019, there were no financing fees incurred with our Advisor. As of June 30, 2020, we owed our Advisor $35 for unpaid financing fees. There were no financing fees owed to our Advisor as of December 31, 2019. ​ Project Management Fee ​ During the six months ended June 30, 2020, there were $76 in project management fees incurred with our Advisor for capital improvement projects. As of June 30, 2020, we owed our Advisor $11 for unpaid project management fees. ​ Development Fee ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Cost ​ Fee ​ Range of Fee ​ Formula 0 – 10M ​ 5.0 % ​ 0 –.5M ​ 0M – 5.0% x (TC – 0M) 10M - 20M ​ 4.5 % ​ .5 M – .95M ​ .50M – 4.5% x (TC – 10M) 20M – 30M ​ 4.0 % ​ .95 M – 1.35M ​ .95M – 4.0% x (TC – 20M) 30M – 40M ​ 3.5 % ​ 1.35 M – 1.70M ​ 1.35M – 3.5% x (TC – 30M) 40M – 50M ​ 3.0 % ​ 1.70 M – 2.00M ​ 1.70M – 3.0% x (TC – 40M) ​ TC = Total Project Cost ​ During the six months ended June 30, 2020 and 2019, there were no development fees incurred with our Advisor. During the six months ended June 30, 2020, our Advisor decided to forgo the $104 portion of held back development fees related to the Stonefield development project which was recognized as a reduction in building and improvements. As of June 30, 2020, there were no unpaid development fees owed to our Advisor. As of December 31, 2019, we owed our Advisor a total of $104 for unpaid development fees, of which the entire amount was for unpaid development fees as part of a 10% hold back with respect to the Stonefield development project. ​ Operating Partnership Units Issued in Connection with Acquisitions ​ During the six months ended June 30, 2020, we issued directly or indirectly 176,000 operating partnership units to an entity affiliated with Messrs. Regan and Wieland, two of our trustees, in connection with the acquisition of various properties. The aggregate value of these units was $3,373. ​ During the six months ended June 30, 2019, there were no operating partnership units issued directly or indirectly, to affiliated entities. Commissions ​ During the six months ended June 30, 2020, we incurred real estate commissions of $324, to GOLDMARK Commercial Real Estate Services, Inc., which is controlled by Messrs. Regan and Wieland. During the six months ended June 30, 2019, there were no commissions incurred. There were no outstanding commissions owed as of June 30, 2020 or December 31, 2019. ​ Rental Income ​ During the six months ended June 30, 2020 and 2019, we received rental income of $46 and $25, respectively, under an operating lease agreement with our Advisor. ​ During the six months ended June 30, 2020 and 2019, we received rental income of $28 and $28, respectively, under an operating lease agreement with GOLDMARK Commercial Real Estate Services, Inc. ​ During the six months ended June 30, 2020 and 2019, we received rental income of $130 and $115, respectively, under operating lease agreements with GOLDMARK Property Management. ​ Other Operational Liabilities ​ During the three months ended June 30, 2020, the Trust incurred general operational liabilities related to business operations as well as costs incurred related to capital expenditures due to related parties. As of the three months ended June 30, 2020, we owed our Advisor $323.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2020
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 14 - COMMITMENTS AND CONTINGENCIES ​ Environmental Matters ​ Federal law (and the laws of some states in which we own or may acquire properties) imposes liability on a landowner for the presence on the premises of hazardous substances or wastes (as defined by present and future federal and state laws and regulations). This liability is without regard to fault or knowledge of the presence of such substances and may be imposed jointly and severally upon all succeeding landowners. If such hazardous substance is discovered on a property acquired by us, we could incur liability for the removal of the substances and the cleanup of the property. ​ There can be no assurance that we would have effective remedies against prior owners of the property. In addition, we may be liable to tenants and may find it difficult or impossible to sell the property either prior to or following such a cleanup. ​ Risk of Uninsured Property Losses ​ We maintain property damage, fire loss, and liability insurance. However, there are certain types of losses (generally of a catastrophic nature) which may be either uninsurable or not economically insurable. Such excluded risks may include war, earthquakes, tornados, certain environmental hazards, and floods. Should such events occur, (i) we might suffer a loss of capital invested, (ii) tenants may suffer losses and may be unable to pay rent for the spaces, and (iii) we may suffer a loss of profits which might be anticipated from one or more properties. ​ Litigation ​ The Trust is subject, from time to time, to various legal proceedings and claims that arise in the ordinary course of business. While the resolution of such matters cannot be predicted with certainty, management believes, based on currently available information, that the final outcome of such matters will not have a material effect on the financial statements of the Trust. ​ Significant Risks and Uncertainties ​ The Trust continues to closely monitor the impact of the COVID-19 pandemic on all aspects of its business and geographies, including how it will impact its tenants and business partners. While the Trust did not incur significant disruptions during the six months ended June 30, 2020 from the COVID-19 pandemic, it is unable to predict the impact that the COVID-19 pandemic will have on its future financial condition, results of operations and cash flows . During the quarter ended June 30, 2020, the Trust received certain rent relief requests as a result of COVID-19. These requests were received principally from office tenants and most often in the form of rent deferral requests. Few rental defaults have occurred to date and the Trust is pursuing legal remedies as to these amounts which are not material in the aggregate. The Trust will continue to evaluate any further tenant rent relief requests on an individual basis, considering a number of factors. Not all tenant requests will ultimately result in modification agreements, nor will the Trust forgo its contractual rights under its lease agreements.

DISPOSITIONS

DISPOSITIONS	6 Months Ended
	Jun. 30, 2020
DISPOSITIONS
DISPOSITIONS	NOTE 15 – DISPOSITIONS ​ During the six months ended June 30, 2020, the operating partnership sold two properties. We sold a retail property located in Apple Valley, Minnesota, for $3,670 and recognized a gain of $1,455 in March 2020. We sold an office property located in St. Cloud, Minnesota, for $2,050 and recognized a gain of $1 in May 2020. During the six months ended June 30, 2019, the operating partnership did not dispose of any properties. ​ ​

ACQUISITIONS

ACQUISITIONS	6 Months Ended
	Jun. 30, 2020
ACQUISITIONS
ACQUISITIONS	NOTE 16 – ACQUISITIONS ​ The Trust closed on the following acquisitions during the six months ended June 30, 2020. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Date ​ Property Name ​ Location ​ Property Type ​ ​ Units/ Square Footage/ Acres ​ ​ Acquisition Price ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1/12/20 ​ Wolf Creek ​ Fargo, ND ​ Apartment complex ​ ​ 54 units ​ $ 4,968 1/31/20 ​ Columbia Park Village ​ Grand Forks, ND ​ Apartment complex ​ ​ 12 units ​ ​ 612 3/1/20 ​ Belmont East & West ​ Bismarck, ND ​ Apartment complex ​ ​ 26 units ​ ​ 1,494 3/1/20 ​ Eastbrook ​ Bismarck, ND ​ Apartment complex ​ ​ 24 units ​ ​ 1,296 3/1/20 ​ Hawn ​ Fargo, ND ​ Apartment complex ​ ​ 48 units ​ ​ 2,400 3/1/20 ​ Rosser ​ Bismarck, ND ​ Apartment complex ​ ​ 24 units ​ ​ 1,296 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 12,066 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) (a) Acquisition price does not include capitalized closing costs and adjustments totaling $636 , special assessments assumed and capitalized of $168 or additional costs incurred due to a difference in unit price of $26 . ​ ​ Total consideration given for acquisitions through June 30, 2020 was completed through issuing approximately 469,000 limited partnership units of the operating partnership valued at $19.25 per unit for an aggregate consideration of approximately $9,031 , assumed liabilities of $265 , a mortgage of $3,225 and cash of $375 . The value of units issued in exchange for property is determined through a value established annually by our Board of Trustees, and reflects the fair value at the time of issuance. ​ The Trust had no acquisitions during the six months ended June 30, 2019. ​ The following table summarizes the acquisition date fair values, before prorations, the Trust recorded in conjunction with the acquisitions discussed above: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ ​ ​ June 30, ​ ​ ​ ​ ​ 2020 ​ ​ 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ Land, building, tenant improvements and FF&E ​ ​ ​ $ 12,896 ​ $ - Other liabilities ​ ​ ​ ​ (265) ​ ​ - Net assets acquired ​ ​ ​ ​ 12,631 ​ ​ - Equity/limited partnership unit consideration ​ ​ ​ ​ (9,031) ​ ​ - New loans ​ ​ ​ ​ (3,225) ​ ​ - ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash consideration ​ ​ ​ $ 375 ​ $ - ​ Estimated Value of Units/Shares ​ The Board of Trustees determined an estimate of fair value for the trust shares in the first six months of 2020 and 2019. In addition, the Board of Trustees, acting as general partner for the operating partnership, determined an estimate of fair value for the limited partnership units in the first six months of 2020 and 2019. In determining this value, the Board relied upon their experience with, and knowledge about, the Trust’s real estate portfolio and debt obligations. The Board typically determines the share price on an annual basis. The trustees determine the price in their discretion and use data points to guide their determination which is typically based on a consensus of opinion. In addition, the Board considers how the price chosen will affect existing share and unit values, redemption prices, dividend coverage ratios, yield percentages, dividend reinvestment factors, and future UPREIT transactions, among other considerations and information. The fair value was not determined based on, nor intended to comply with, fair value standards under US GAAP and the value may not be indicative of the price we would get for selling our assets in their current condition. ​ The Board determined the fair value of the shares and limited partnership units to be $19.25 per share/unit effective January 1, 2020. The Board determined the fair value of the shares and limited partnership units to be $19.00 per share/unit effective January 1, 2019. ​ Determination of price is a matter within the Board’s sole discretion. The Trust does not determine price based on any rote formula or specific factors. At this time, no shares are held in street name accounts and the Trust is not subject to FINRA’s specific pricing requirements set out in Rule 2340 or otherwise. Thus, the Trust does not employ any specific valuation methodology or formula. Rather, the Board looks to available data and information, which is often adjusted and weighted to comport more closely with the assets held by the Trust at the time of valuation. The principal valuation methodology utilized is the NAV calculation/direct capitalization method. The information made available to the Board is assembled by the Trust’s Advisor. ​ As with any valuation methodology, the methodologies utilized by the Board in reaching an estimate of the value of the shares and limited partnership units are based upon a number of estimates, assumptions, judgments or opinions that may, or may not, prove to be correct. The use of different estimates, assumptions, judgments, or opinions would likely have resulted in significantly different estimates of the value of the shares and limited partnership units. In addition, the Board’s estimate of share and limited partnership unit value is not based on the book values of our real estate, as determined by GAAP, as our book value for most real estate is based on the amortized cost of the property, subject to certain adjustments. ​ Furthermore, in reaching an estimate of the value of the shares and limited partnership units, the Board applied a liquidity discount to one valuation scenario in order to reflect the fact that the shares and limited partnership units are not currently traded on a national securities exchange and did not consider: a discount for debt that may include a prepayment obligation or a provision precluding assumption of the debt by a third party or the costs that are likely to be incurred in connection with an appropriate exit strategy, whether that strategy might be a listing of the limited partnership units or common shares on a national securities exchange or a merger or sale of our portfolio.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2020
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 17 - SUBSEQUENT EVENTS ​ On July 15, 2020, we paid a dividend or distribution of $0.2647 per share on our common shares of beneficial interest or limited partnership units, respectively, to common shareholders and limited partnership unit holders of record on June 30, 2020. ​ On July 1, 2020, we refinanced a mortgage totaling approximately $5,000. ​ Pending acquisitions and dispositions are subject to numerous conditions and contingencies and there are no assurances that the transactions will be completed. ​ We have evaluated subsequent events through the date of this filing. We are not aware of any other subsequent events which would require recognition or disclosure in the consolidated financial statements.

PRINCIPAL ACTIVITY AND SIGNIF_2

PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2020
PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation ​ The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2019, which have previously been filed with the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted from this report on Form 10-Q pursuant to the rules and regulations of the SEC. ​ The results for the interim periods shown in this report are not necessarily indicative of future financial results. The accompanying consolidated balance sheet as of June 30, 2020 and consolidated statements of operations and other comprehensive income, consolidated statements of shareholders’ equity, and consolidated statements of cash flows for the three and six months ended June 30, 2020 and 2019, as applicable, have not been audited by our independent registered public accounting firm. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments necessary to present fairly our consolidated financial statements as of and for the three and six months ended June 30, 2020 and 2019. These adjustments are of a normal recurring nature. ​
Principles of Consolidation	Principles of Consolidation ​ The consolidated financial statements include the accounts of , Properties, LLLP, and wholly-owned limited liability companies. All significant intercompany transactions and balances have been eliminated in consolidation. ​ Additionally, we evaluate the need to consolidate affiliates based on standards set forth in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation (“ASC 810”). In determining whether we have a requirement to consolidate the accounts of an entity, management considers factors such as our ownership interest, our authority to make decisions and contractual and substantive participating rights of the limited partners and shareholders, as well as whether the entity is a variable interest entity (“VIE”) for which we have both: a) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance, and b) the obligation to absorb losses or the right to receive benefits from the VIE that could be potentially significant to the VIE. ​
Principal Business Activity	Principal Business Activity ​ Sterling currently owns directly and indirectly 177 properties. The Trust’s 131 residential properties are located in North Dakota, Minnesota, Missouri and Nebraska and are principally multifamily apartment buildings. The Trust owns 46 commercial properties primarily located in North Dakota with others located in Arkansas, Colorado, Iowa, Louisiana, Michigan, Minnesota, Mississippi, Nebraska and Wisconsin. The commercial properties include retail, office, industrial, restaurant and medical properties. Presently, the Trust’s mix of properties is 74.2% residential and 25.8% commercial (based on cost) and total $671,477 in real estate investments at June 30, 2020. Sterling’s current acquisition strategy and primary focus is on multifamily apartment properties. We currently have no plans to actively market our existing commercial properties for sale. We will consider unsolicited offers for purchase of non-multifamily properties on a case by case basis. ​ ​ ​ ​ ​ ​ ​ ​ Residential Property Location No. of Properties Units ​ ​ North Dakota ​ 111 ​ 6,348 ​ ​ Minnesota ​ 16 ​ 3,033 ​ ​ Missouri ​ 1 ​ 164 ​ ​ Nebraska ​ 3 ​ 495 ​ ​ ​ ​ 131 ​ 10,040 ​ ​ ​ ​ ​ ​ ​ Commercial Property Location No. of Properties Sq. Ft ​ ​ North Dakota ​ 20 ​ 780,000 ​ ​ Arkansas ​ 2 ​ 28,000 ​ ​ Colorado ​ 1 ​ 17,000 ​ ​ Iowa ​ 1 ​ 33,000 ​ ​ Louisiana ​ 1 ​ 15,000 ​ ​ Michigan ​ 1 ​ 12,000 ​ ​ Minnesota ​ 13 ​ 664,000 ​ ​ Mississippi ​ 1 ​ 15,000 ​ ​ Nebraska ​ 1 ​ 19,000 ​ ​ Wisconsin ​ 5 ​ 63,000 ​ ​ ​ ​ 46 ​ 1,646,000 ​
Concentration of Credit Risk	Concentration of Credit Risk ​ Our cash balances are maintained in various bank deposit accounts. The bank deposit amounts in these accounts may exceed federally insured limits at various times throughout the year. ​
Use of Estimates	Use of Estimates ​ The preparation of consolidated financial statements in conformity with 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ​
Real Estate Investments	Real Estate Investments ​ Real estate investments are recorded at cost less accumulated depreciation. Ordinary repairs and maintenance are expensed as incurred. ​ The Trust allocates the purchase price of each acquired investment property accounted for as an asset acquisition based upon the estimated acquisition date fair value of the individual assets acquired and liabilities assumed, which generally include (i) land, (ii) building and other improvements, (iii) in-place lease value intangibles, (iv) acquired above and below market lease intangibles, and (v) any assumed financing that is determined to be above or below market, if any. Transaction costs related to acquisitions accounted for as asset acquisitions are capitalized as incurred and included as a cost of the Building in the accompanying balance sheet. ​ For tangible assets acquired, including land, building and other improvements, the Trust considers available comparable market and industry information in estimating fair value on the acquisition date. Key factors considered in the calculation of fair value of both real property and intangible assets include the current market rent values, “dark” periods (building in vacant status), direct costs estimated with obtaining a new tenant, discount rates, escalation factors, standard lease terms, and tenant improvement costs. The Trust allocates a portion of the purchase price to the estimated acquired in-place lease value intangibles based on factors available in third party appraisals or cash flow estimates of the property prepared by our internal analysis. These estimates are based upon cash flow projections for the property, existing leases, lease origination costs for similar leases as well as lost rental payments during an assumed lease-up period. The Trust also evaluates each acquired lease as compared to current market rates. If an acquired lease is determined to be above or below market, the Trust allocates a portion of the purchase price to such above or below market leases based upon the present value of the difference between the contractual lease payments and estimated market rent payments over the remaining lease term. Renewal periods are included within the lease term in the calculation of above and below market lease values if, based upon factors known at the acquisition date, market participants would consider it reasonably assured that the lessee would exercise such options. Fair value estimates used in acquisition accounting, including the discount rate used, require the Trust to consider various factors, including, but not limited to, market knowledge, demographics, age and physical condition of the property, geographic location, and size and location of tenant spaces within the acquired investment property. ​ The portion of the purchase price allocated to acquired in-place lease value intangibles is amortized on a straight-line basis over the life of the related lease as amortization expense. The Trust incurred amortization expense pertaining to acquired in-place lease value intangibles of $315 and $418 for the three months ended June 30, 2020 and 2019, respectively and $656 and $847 for the six months ended June 30, 2020 and 2019, respectively. ​ The portion of the purchase price allocated to acquired above and below market lease intangibles is amortized on a straight-line basis over the life of the related lease as an adjustment to real estate rental income. Amortization pertaining to above market lease intangibles of $47 and $54 for the three months ended June 30, 2020 and 2019, respectively, was recorded as a reduction to real estate rental income. Amortization pertaining to below market lease intangibles of $54 and $66 for the three months ended June 30, 2020 and 2019, respectively, was recorded as an increase to real estate rental income. Amortization pertaining to above market lease intangibles of $99 and $107 for the six months ended June 30, 2020 and 2019, respectively, was recorded as a reduction to real estate rental income. Amortization pertaining to below market lease intangibles of $110 and $133 for the six months ended June 30, 2020 and 2019, respectively, was recorded as an increase to real estate rental income. ​ Furniture and fixtures are stated at cost less accumulated depreciation. Expenditures for renewals and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Expenditures for routine maintenance and repairs, which do not add to the value or extend useful lives, are charged to expense as incurred. ​ Depreciation is provided for over the estimated useful lives of the individual assets using the straight-line method over the following estimated useful lives: ​ ​ ​ ​ ​ Buildings and improvements 40 years Furniture, fixtures and equipment 5 - 9 years ​ Depreciation expense for the three months ended June 30, 2020 and 2019 totaled $4,887 and $4,893, respectively. Depreciation expense for the six months ended June 30, 2020 and 2019 totaled $9,755 and $9,906, respectively. ​ The Trust’s investment properties are reviewed for potential impairment at the end of each reporting period whenever events or changes in circumstances indicate that the carrying value may not be recoverable. At the end of each reporting period, the Trust separately determines whether impairment indicators exist for each property. ​ Examples of situations considered to be impairment indicators include, but are not limited to: ​ ● a substantial decline or continued low occupancy rate; ● continued difficulty in leasing space; ● significant financially troubled tenants; ● a change in plan to sell a property prior to the end of its useful life or holding period; ● a significant decrease in market price not in line with general market trends; and ● any other quantitative or qualitative events or factors deemed significant by the Trust’s management or board of trustees. ​ If the presence of one or more impairment indicators as described above is identified at the end of the reporting period or throughout the year with respect to an investment property, the asset is tested for recoverability by comparing its carrying value to the estimated future undiscounted cash flows. An investment property is considered to be impaired when the estimated future undiscounted cash flows are less than its current carrying value. When performing a test for recoverability or estimating the fair value of an impaired investment property, the Trust makes complex or subjective assumptions which include, but are not limited to: ​ ● projected operating cash flows considering factors such as vacancy rates, rental rates, lease terms, tenant financial strength, demographics, holding period and property location; ● projected capital expenditures and lease origination costs; ● projected cash flows from the eventual disposition of an operating property using a property specific capitalization rate; ● comparable selling prices; and ● property specific discount rates for fair value estimates as necessary. ​ To the extent impairment has occurred, the Trust will record an impairment charge calculated as the excess of the carrying value of the asset over its fair value for impairment of investment properties. There were no impairment losses during the six months ended June 30, 2020 and 2019.
Properties Held for Sale	Properties Held for Sale ​ We account for our properties held for sale in accordance with FASB ASC 360, Property, Plant and Equipment (“ASC 360”), which addresses financial accounting and reporting in a period in which a component or group of components of an entity either has been disposed of or is classified as held for sale. ​ In accordance with ASC 360, at such time as a property is held for sale, such property is carried at the lower of: (1) its carrying amount, or (2) fair value less costs to sell. In addition, a property being held for sale ceases to be depreciated. We classify operating properties as properties held for sale in the period in which all of the following criteria are met: ​ ● management, having the authority to approve the action, commits to a plan to sell the asset; ● the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; ● an active program to locate a buyer and other actions required to complete the plan to sell the asset has been initiated; ● the sale of the asset is probable and the transfer of the asset is expected to qualify for recognition as a completed sale within one year; ● the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and ● given the actions required to complete the plan to sell the asset, it is unlikely that significant changes to the plan would be made or that the plan would be withdrawn. ​ The results of operations of a component of an entity that either has been disposed of or is classified as held-for-sale under the requirements of ASC 360 shall be reported in discontinued operations in accordance with FASB ASC 205, Presentation of Financial Statements (“ASC 205”) if such disposal or classification represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. ​ There were no properties classified as held for sale at June 30, 2020 or at December 31, 2019.
Construction in Progress	Construction in Progress ​ The Trust capitalizes direct and certain indirect project costs incurred during the development period such as construction, insurance, architectural, legal, interest and other financing costs, and real estate taxes. At such time as the development is considered substantially complete, the capitalization of certain indirect costs such as real estate taxes and interest and financing costs cease and all project-related costs included in construction in process are reclassified to land and building and other improvements. ​ Construction in progress as of June 30, 2020 consists primarily of development and planning costs associated with the Glen Pond development in Eagan, Minnesota and the Goldmark Office Park 1715 building located in Fargo, North Dakota. The Glen Pond development consists of 114 units of multifamily property. Current expectations are that the project will be completed in the third quarter of calendar year 2020 and the current project budget approximates $16,175 of which $15,698 has been incurred and is included in Construction in progress. The Goldmark Office Park consists of three commercial office buildings. Current expectations are that the project which includes building renovations, reconstruction of portions of the office park and additional amenities will be completed in phases with the primary phase completed in the third quarter of calendar year 2020. The current project budget is approximately $6,674 of which $5,266 has been incurred and is included in Construction in progress.
Cash and Cash Equivalents and Restricted Deposits	Cash, Cash Equivalents and Restricted Deposits ​ We classify highly liquid investments with a maturity of three months or less when purchased as cash equivalents. Restricted deposits include funds escrowed for tenant security deposits, real estate tax, insurance and mortgage escrow and escrow deposits required by lenders on certain properties to be used for future building renovations or tenant improvements and potential Internal Revenue Code Section 1031 tax deferred exchanges (1031 Exchange). ​
Investment in Unconsolidated Affiliates	Investment in Unconsolidated Affiliates ​ We account for unconsolidated affiliates using the equity method of accounting per guidance established under FASB ASC 323, Investments – Equity Method and Joint Ventures (“ASC 323”). The equity method of accounting requires the investment to be initially recorded at cost and subsequently adjusted for our share of equity in the affiliates’ earnings, contributions and distributions. We evaluate the carrying amount of the investments for impairment in accordance with FASB ASC 323. Unconsolidated affiliates are reviewed for potential impairment if the carrying amount of the investment exceeds its fair value. An impairment charge is recorded when an impairment is deemed to be other-than-temporary. To determine whether impairment is other-than-temporary, we consider whether we have the ability and intent to hold the investment until the carrying amount is fully recovered. The evaluation of an investment in an affiliate for potential impairment can require our management to exercise significant judgments. No impairment losses were recorded related to the unconsolidated affiliates for the six months ended June 30, 2020 and 2019. ​ We use the equity method to account for investments that qualify as variable interest entities where we are not the primary beneficiary and entities that we do not control or where we do not own a majority of the economic interest but have the ability to exercise significant influence over the operations and financial policies of the investee and entities where we have joint control and other attributes resulting in a joint venture. We will also use the equity method for investments that do not qualify as variable interest entities and do not meet the control requirements for consolidation, as defined in ASC 810. For a joint venture accounted for under the equity method, our share of net earnings and losses is reflected in income when earned and distributions are credited against our investment in the joint venture as received. ​ In determining whether an investment in a limited liability company or tenant in common is a variable interest entity, we consider: the form of our ownership interest and legal structure; the size of our investment; the financing structure of the entity, including the necessity of subordinated debt; estimates of future cash flows; our and our partner’s ability to participate in the decision making related to acquisitions, dispositions, budgeting and financing on the entity; and obligation to absorb losses and preferential returns. As of June 30, 2020, our tenant in common arrangements do not qualify as variable interest entities and do not meet the control requirements for consolidation, as defined in ASC 810. As of June 30, 2020, our investment in the joint venture does not qualify as a variable interest entity, does not meet the control requirements for consolidation or significant influence requirements, as defined in ASC 810, and does meet the definition of a joint venture. ​ As of June 30, 2020 and December 31, 2019, the unconsolidated affiliates held total assets of $34,285 and $31,261 and mortgage notes payable of $21,878 and $16,690, respectively. ​ The operating partnership is a 50% owner of a retail center as a tenant in common through 100% ownership in a limited liability company. The retail center has approximately 183,000 square feet of commercial space in Grand Forks, North Dakota. The property is encumbered by a non-recourse first mortgage with a balance at June 30, 2020 and December 31, 2019 of $10,140 and $10,264, respectively. The Trust is jointly and severally liable for the full mortgage balance. ​ The operating partnership owns a 66.67% interest as tenant in common in an office building with approximately 75,000 square feet of commercial rental space in Fargo, North Dakota. The property is encumbered by a first mortgage with a balance at June 30, 2020 and December 31, 2019 of $6,331 and $6,426, respectively. The Trust is jointly and severally liable for the full mortgage balance. ​ The operating partnership owns a 60% interest in a joint venture that is developing a 190 unit multifamily property in Savage, Minnesota. The property is encumbered by a first construction mortgage with a balance at June 30, 2020 of $5,407 and no mortgage balance at December 31, 2019. The operating partnership has contributed $3,305 in cash as of June 30, 2020. The partnership holds total assets of $12,407. The Trust is jointly and severally liable for the full mortgage balance. ​ The operating partnership owns a 60% interest in a joint venture that intends to develop a 160 unit multifamily property. The operating partnership has contributed $2,461 in cash as of June 30, 2020. The Partnership holds land located in Maple Grove, Minnesota, total assets of $4,100, and no mortgage payable.
Receivables	Receivables ​ Receivables consist primarily of amounts due for rent and tenant charges. Accounts receivable are carried at original amounts billed. The operating partnership reviews collectability of charges under its tenant operating leases on a quarterly basis. In the event that collectability is deemed not probable for any tenant charges, the operating partnership recognizes an adjustment to rental income. ​ Notes receivable are issued periodically and are secured and interest bearing. ​
Financing and Lease Costs	Financing and Lease Costs ​ Financing costs have been capitalized and are being amortized over the life of the financing (line of credit) using the effective interest method. Unamortized financing costs are written off when debt is retired before the maturity date and included in interest expense at that time. ​ Lease costs incurred in connection with new leases have been capitalized and are being amortized over the life of the lease using the straight-line method. We record the amortization of leasing costs in depreciation and amortization on the consolidated statements of operations and comprehensive income. If an applicable lease terminates prior to the expiration of its initial lease term, we write off the carrying amount of the costs to amortization expense. ​
Debt Issuance Costs	Debt Issuance Costs ​ We amortize external debt issuance costs using the effective interest rate method, over the estimated life of the related debt. We record debt issuance costs related to notes and mortgage notes, net of amortization, on our consolidated balance sheets as an offset to their related debt. We record debt issuance costs related to revolving lines of credit on our consolidated balance sheets as financing fees, regardless of whether a balance on the line of credit is outstanding. We record the amortization of all debt issuance costs as interest expense.
Lease Intangible Assets	Lease Intangible Assets ​ Lease intangibles are a purchase price allocation recorded on property acquisition. The lease intangibles represent the estimated value of in-place leases, tenant relationships and the value of leases with above or below market lease terms. Lease intangibles are amortized over the term of the related lease. ​ The carrying amount of intangible assets is regularly reviewed for indicators of impairments in value. Impairment is recognized only if the carrying amount of the intangible asset is considered to be unrecoverable from its undiscounted cash flows and is measured as the difference between the carrying amount and the estimated fair value of the asset. Based on the review, management determined no impairment charges were necessary at June 30, 2020 and December 31, 2019. ​
Noncontrolling Interest	Noncontrolling Interest ​ A noncontrolling interest in a subsidiary (minority interest) is in most cases an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements and separate from the parent company’s equity. In addition, consolidated net income is required to be reported at amounts that include the amounts attributable to both the parent and the noncontrolling interest and the amount of consolidated net income attributable to the parent and the noncontrolling interest are required to be disclosed on the face of the consolidated statements of operations and comprehensive income. ​ Operating Partnership: Interests in the operating partnership held by limited partners are represented by operating partnership units. The operating partnership’s income is allocated to holders of units based upon the ratio of their holdings to the total units outstanding during the period. Capital contributions, distributions, syndication costs, and profits and losses are allocated to noncontrolling interests in accordance with the terms of the operating partnership agreement. ​ Partially Owned Properties: The Trust reflects noncontrolling interests in partially owned properties on the balance sheet for the portion of properties consolidated by the Trust that are not wholly owned by the Trust. The earnings or losses from those properties attributable to the noncontrolling interests are reflected as noncontrolling interests in partially owned properties in the consolidated statement of operations and comprehensive income. ​
Syndication Costs	Syndication Costs ​ Syndication costs consist of costs paid to attorneys, accountants, and selling agents, related to the raising of capital. Syndication costs are recorded as a reduction to beneficial and noncontrolling interest.
Federal Income Taxes	Federal Income Taxes ​ We have elected to be taxed as a REIT under the Internal Revenue Code, as amended. A REIT calculates taxable income similar to other domestic corporations, with the major difference being a REIT is entitled to a deduction for dividends paid. A REIT is generally required to distribute each year at least 90% of its taxable income. If it chooses to retain the remaining 10% of taxable income, it may do so, but it will be subject to a corporate tax on such income. REIT shareholders are taxed on REIT distributions of ordinary income in generally the same manner as they are taxed on other corporate distributions. ​ We intend to continue to qualify as a REIT and, provided we maintain such status, will not be taxed on the portion of the income that is distributed to shareholders. In addition, we intend to distribute all of our taxable income; therefore, no provisions or liabilities for income taxes have been recorded in the financial statements. ​ Sterling conducts its business activity as an Umbrella Partnership Real Estate Investment Trust (“UPREIT”) through its Operating Partnership – Sterling Properties, LLLP. The Operating Partnership is organized as a limited liability limited partnership. Income or loss is allocated to the partners in accordance with the provisions of the Internal Revenue Code 704(b) and 704(c). UPREIT status allows non-recognition of gain by an owner of appreciated real estate if that owner contributes the real estate to a partnership in exchange for a partnership interest. The conversion of a partnership interest to shares of beneficial interest in the REIT will be a taxable event to the limited partner. ​ We follow FASB ASC Topic 740, Income Taxes, ​ The operating partnership has elected to record related interest and penalties, if any, as income tax expense on the consolidated statements of operations and other comprehensive income. ​
Revenue Recognition	Revenue Recognition ​ The Trust is the lessor for its residential and commercial leases. Leases are analyzed on an individual basis to determine lease classification. The Trust has determined any lease less than ten years in length will not be looked at in the classification process and will be presumed an operating lease. As of June 30, 2020, all leases analyzed under the Trust’s lease classification process were determined to be operating leases. As of June 30, 2019, all leases continued to be accounted for as operating leases under the new standard as described under Recent Accounting Pronouncements. ​ As of June 30, 2020, we derived 79.7% of our revenues from residential leases that are generally for terms of one year or less. The residential leases may include lease income related to such items as parking, storage and non-refundable deposits that we treat as a single lease component because the amenities cannot be leased on their own and the timing and pattern of revenue recognition are the same. The collection of lease payments at lease commencement is probable and therefore we subsequently recognize lease income over the lease term on a straight-line basis. Residential leases are renewable upon consent of both parties on an annual or monthly basis. ​ As of June 30, 2020, we derived 20.3% of our revenues from commercial leases primarily under long-term lease agreements. Substantially all commercial leases contain fixed escalations or, in some instances, changes based on the Consumer Price Index, which occur at specified times during the term of the lease. In certain commercial leases, variable lease income, such as percentage rent, is recognized when rents are earned. We recognize rental income and rental abatements from our commercial leases when earned on a straight-line basis over the lease term. Recognition of rental income commences when control of the leased space has been transferred to the tenant. ​ We recognize variable income from pass-through expenses on an accrual basis over the periods in which the expenses were incurred. Pass-through expenses are comprised of real estate taxes, operating expenses and common area maintenance costs which are reimbursed by tenants in accordance with specific allowable costs per tenant lease agreements. When we pay pass-through expenses, subject to reimbursement by the tenant, they are included within “Operating expenses, excluding real estate taxes” and “Real estate taxes,” and reimbursements are included within “Real estate rental income” along with the associated base rent in the accompanying consolidated financial statements. ​ We record base rents on a straight-line basis. The monthly base rent income according to the terms of our leases is adjusted so that an average monthly rent is recorded for each tenant over the term of its lease. The straight-line rent adjustment decreased revenue by $73 and $48 for the three months ended June 30, 2020 and 2019, respectively. The straight-line rent adjustment decreased revenue by $138 and increased revenue by $55 the six months ended June 30, 2020 and 2019, respectively. The straight-line receivable balance included in receivables on the consolidated balance sheets as of June 30, 2020 and December 31, 2019 was $3,014 and $3,331, respectively. We receive payments for expense reimbursements from substantially all our multi-tenant commercial tenants throughout the year based on estimates. Differences between estimated recoveries and the final billed amounts, which generally are immaterial, are recognized in the subsequent year. ​ Upon adoption of ASU 2016-02 on January 1, 2019, we elected not to bifurcate lease contracts into lease and non-lease components, since the timing and pattern of revenue is not materially different and the non-lease component is not the primary component of the lease. Accordingly, both lease and non-lease components are presented in “Real estate rental income” beginning January 1, 2019 in our consolidated financial statements. The adoption of ASU 2016-02 did not result in a material change to our recognition of real estate rental income. ​ Lease income related to the Trust’s operating leases is comprised of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2020 ​ Residential Commercial Total ​ ​ (in thousands) Lease income related to fixed lease payments ​ $ 23,613 ​ $ 5,035 ​ $ 28,648 Lease income related to variable lease payments ​ ​ — ​ ​ 1,451 ​ ​ 1,451 Other (a) ​ ​ (88) ​ ​ (76) ​ ​ (164) Lease Income (b) ​ $ 23,525 ​ $ 6,410 ​ $ 29,935 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2019 ​ Residential Commercial Total ​ ​ (in thousands) Lease income related to fixed lease payments ​ $ 23,077 ​ $ 4,929 ​ $ 28,006 Lease income related to variable lease payments ​ ​ — ​ ​ 1,551 ​ ​ 1,551 Other (a) ​ ​ (188) ​ ​ (35) ​ ​ (223) Lease Income (b) ​ $ 22,889 ​ $ 6,445 ​ $ 29,334 (a) For the three months ended June 30, 2020 and 2019, “Other” is comprised of revenue adjustments related to changes in collectability and amortization of above and below market lease intangibles and lease inducements. (b) Excludes other rental income for the three months ended June 30, 2020 and 2019 of $886 and $936 , respectively, which is accounted for under the revenue recognition standard. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2020 ​ Residential Commercial Total ​ ​ (in thousands) Lease income related to fixed lease payments ​ $ 46,816 ​ $ 9,749 ​ $ 56,565 Lease income related to variable lease payments ​ ​ — ​ ​ 2,712 ​ ​ 2,712 Other (a) ​ ​ (342) ​ ​ (166) ​ ​ (508) Lease Income (b) ​ $ 46,474 ​ $ 12,295 ​ $ 58,769 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2019 ​ Residential Commercial Total ​ ​ (in thousands) Lease income related to fixed lease payments ​ $ 45,874 ​ $ 9,706 ​ $ 55,580 Lease income related to variable lease payments ​ ​ — ​ ​ 3,038 ​ ​ 3,038 Other (a) ​ ​ (405) ​ ​ 81 ​ ​ (324) Lease Income (b) ​ $ 45,469 ​ $ 12,825 ​ $ 58,294 ​ (c) For the six months ended June 30, 2020 and 2019, “Other” is comprised of revenue adjustments related to changes in collectability and amortization of above and below market lease intangibles and lease inducements. (d) Excludes other rental income for the six months ended June 30, 2020 and 2019 of $1,958 and $1,808 , respectively, which is accounted for under the revenue recognition standard. ​ As of June 30, 2020, non-cancelable in place commercial operating leases provide for future minimum rental income as follows (in thousands). Apartment leases are not included as the terms are generally for one year or less. ​ ​ ​ ​ ​ Years ending December 31, Amount ​ ​ (in thousands) 2020 (July 1, 2020 - December 31, 2020) ​ $ 8,828 2021 ​ ​ 14,879 2022 ​ ​ 11,493 2023 ​ ​ 9,505 2024 ​ ​ 9,035 Thereafter ​ ​ 42,596 ​ ​ $ 96,336
Business Interruption Proceeds	Business Interruption Proceeds ​ In the Trust’s normal course of business we periodically receive insurance recoveries for business interruption. The Trust received insurance recoveries for business interruption of $521 and $375 during the six months ended June 30, 2020 and 2019, respectively. When insurance proceeds are received they are reflected in the statement of operations as real estate rental income.
Earnings per Common Share	Earnings per Common Share ​ Basic earnings per common share is computed by dividing net income available to common shareholders (the “numerator”) by the weighted average number of common shares outstanding (the “denominator”) during the period. Sterling had no dilutive potential common shares as of June 30, 2020 and 2019, and therefore, basic earnings per common share was equal to diluted earnings per common share for both periods. ​ For the three months ended June 30, 2020 and 2019, Sterling’s denominators for both basic and diluted earnings per common share were approximately 9,611,000 and 9,209,000, respectively. For the six months ended June 30, 2020 and 2019, Sterling’s denominators for the basic and diluted earnings per common share were approximately 9,587,000 and 9,151,000, respectively. ​
Incurred but Not Reported Insurance Liability	Incurred but Not Reported Insurance Liability ​ The Trust maintains a business insurance program with deductible limits, which covers property, business automobile and general liability claims. The Trust accrues estimated losses using a reserve for known claims and estimates based on historical loss experience. The calculations used to estimate property claim reserves are based on numerous assumptions, some of which are subjective. The Trust will adjust the property claim reserves, if necessary, in the event future loss experience differs from historical loss patterns. As of June 30, 2020 and December 31, 2019, property claim reserves were $782 and $204, respectively, and are included in accrued expenses and other liabilities on the consolidated balance sheet.
Reclassifications	Reclassifications ​ Certain reclassifications considered necessary for a fair presentation have been made to the prior period financial statements in order to conform to the current year presentation. These reclassifications have not changed the results of operations or equity. ​
Recent Accounting Pronouncements	Recent Accounting Pronouncements ​ In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848). ​ We adopted the standard effective as of January 1, 2020, using the optional transition method to apply the standard as of the effective date. The Trust elected to apply the optional expedients for all of the Trust’s hedging relationships. The Trust will disregard the potential change in the designated hedged risk that may occur due to reference rate reform when the Trust assesses whether the hedged forecasted transaction is probable in accordance with the requirements of Topic 815. The Trust will continue current hedge accounting for our existing cash flow hedges when the hedged risk changes by assuming the reference rate will not be replaced for the remainder of the hedging relationships for our assessment of hedge effectiveness and all subsequent hedge effectiveness assessments. ​ In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), ​ We adopted this standard effective as of January 1, 2019, using the optional transition method to apply the standard as of the effective date. The Trust elected to apply the package of practical expedients for the leases as lessor for its residential and commercial leases and these leases will continue to be accounted for as operating leases as of the effective date. Further, the Trust elected the practical expedient to combine lease and nonlease components for leases as lessor. Finally, the Trust evaluated taxes collected from lessees, lessor costs paid directly by lessees, and initial direct costs and determined that the guidance was consistent with existing practice. Based on these evaluations, the Trust determined that for leases as lessor, as of January 1, 2019, there was no impact on lease revenue or related expenses. ​ On April 8, 2020, the FASB met to discuss lease modifications guidance in Topic 842 as it relates to lease concessions amidst the COVID-19 pandemic. The FASB determined that requiring the analysis of all leases in which concessions are made would be costly and complex for both the lessees and lessors. As such, the FASB has made the decision to allow companies to avoid lease modification accounting when lease concessions do not result in a significant change in cash flow. The Trust has elected to apply the lease modification guidance in Topic 842 for concessions and deferrals made during the COVID-19 pandemic as it relates to the Trust’s residential leases, as the cash flows related to these concessions and deferrals do not cause a significant change in the cash received from the leases. ​ Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying Consolidated Financial Statements.

PRINCIPAL ACTIVITY AND SIGNIF_3

PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2020
PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES
Schedule of Types of Real Estate Properties by Location	​ ​ ​ ​ ​ ​ ​ ​ Residential Property Location No. of Properties Units ​ ​ North Dakota ​ 111 ​ 6,348 ​ ​ Minnesota ​ 16 ​ 3,033 ​ ​ Missouri ​ 1 ​ 164 ​ ​ Nebraska ​ 3 ​ 495 ​ ​ ​ ​ 131 ​ 10,040 ​ ​ ​ ​ ​ ​ ​ Commercial Property Location No. of Properties Sq. Ft ​ ​ North Dakota ​ 20 ​ 780,000 ​ ​ Arkansas ​ 2 ​ 28,000 ​ ​ Colorado ​ 1 ​ 17,000 ​ ​ Iowa ​ 1 ​ 33,000 ​ ​ Louisiana ​ 1 ​ 15,000 ​ ​ Michigan ​ 1 ​ 12,000 ​ ​ Minnesota ​ 13 ​ 664,000 ​ ​ Mississippi ​ 1 ​ 15,000 ​ ​ Nebraska ​ 1 ​ 19,000 ​ ​ Wisconsin ​ 5 ​ 63,000 ​ ​ ​ ​ 46 ​ 1,646,000
Summary of Estimated Useful Life	​ ​ ​ ​ Buildings and improvements 40 years Furniture, fixtures and equipment 5 - 9 years
Schedule of Lease Income related to the Trust's Operating Leases	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2020 ​ Residential Commercial Total ​ ​ (in thousands) Lease income related to fixed lease payments ​ $ 23,613 ​ $ 5,035 ​ $ 28,648 Lease income related to variable lease payments ​ ​ — ​ ​ 1,451 ​ ​ 1,451 Other (a) ​ ​ (88) ​ ​ (76) ​ ​ (164) Lease Income (b) ​ $ 23,525 ​ $ 6,410 ​ $ 29,935 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2019 ​ Residential Commercial Total ​ ​ (in thousands) Lease income related to fixed lease payments ​ $ 23,077 ​ $ 4,929 ​ $ 28,006 Lease income related to variable lease payments ​ ​ — ​ ​ 1,551 ​ ​ 1,551 Other (a) ​ ​ (188) ​ ​ (35) ​ ​ (223) Lease Income (b) ​ $ 22,889 ​ $ 6,445 ​ $ 29,334 (a) For the three months ended June 30, 2020 and 2019, “Other” is comprised of revenue adjustments related to changes in collectability and amortization of above and below market lease intangibles and lease inducements. (b) Excludes other rental income for the three months ended June 30, 2020 and 2019 of $886 and $936 , respectively, which is accounted for under the revenue recognition standard. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2020 ​ Residential Commercial Total ​ ​ (in thousands) Lease income related to fixed lease payments ​ $ 46,816 ​ $ 9,749 ​ $ 56,565 Lease income related to variable lease payments ​ ​ — ​ ​ 2,712 ​ ​ 2,712 Other (a) ​ ​ (342) ​ ​ (166) ​ ​ (508) Lease Income (b) ​ $ 46,474 ​ $ 12,295 ​ $ 58,769 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2019 ​ Residential Commercial Total ​ ​ (in thousands) Lease income related to fixed lease payments ​ $ 45,874 ​ $ 9,706 ​ $ 55,580 Lease income related to variable lease payments ​ ​ — ​ ​ 3,038 ​ ​ 3,038 Other (a) ​ ​ (405) ​ ​ 81 ​ ​ (324) Lease Income (b) ​ $ 45,469 ​ $ 12,825 ​ $ 58,294 ​ (c) For the six months ended June 30, 2020 and 2019, “Other” is comprised of revenue adjustments related to changes in collectability and amortization of above and below market lease intangibles and lease inducements. (d) Excludes other rental income for the six months ended June 30, 2020 and 2019 of $1,958 and $1,808 , respectively, which is accounted for under the revenue recognition standard.
Schedule of Future Minimum Rental Income	​ ​ ​ ​ ​ Years ending December 31, Amount ​ ​ (in thousands) 2020 (July 1, 2020 - December 31, 2020) ​ $ 8,828 2021 ​ ​ 14,879 2022 ​ ​ 11,493 2023 ​ ​ 9,505 2024 ​ ​ 9,035 Thereafter ​ ​ 42,596 ​ ​ $ 96,336

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	6 Months Ended
	Jun. 30, 2020
SEGMENT REPORTING
Summary of Segment Revenues and Net Operating Income	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2020 ​ Three months ended June 30, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential Commercial Total Residential Commercial Total ​ ​ (in thousands) ​ (in thousands) Income from rental operations ​ $ 24,381 ​ $ 6,440 ​ $ 30,821 ​ $ 23,822 ​ $ 6,448 ​ $ 30,270 Expenses from rental operations ​ ​ 12,560 ​ ​ 1,540 ​ ​ 14,100 ​ ​ 12,995 ​ ​ 1,856 ​ ​ 14,851 Net operating income ​ $ 11,821 ​ $ 4,900 ​ $ 16,721 ​ $ 10,827 ​ $ 4,592 ​ $ 15,419 Depreciation and amortization ​ ​ ​ ​ ​ ​ ​ ​ 5,246 ​ ​ ​ ​ ​ ​ ​ ​ 5,353 Interest ​ ​ ​ ​ ​ ​ ​ ​ 4,224 ​ ​ ​ ​ ​ ​ ​ ​ 4,582 Administration of REIT ​ ​ ​ ​ ​ ​ ​ ​ 1,085 ​ ​ ​ ​ ​ ​ ​ ​ 971 Other (income)/expense ​ ​ ​ ​ ​ ​ ​ ​ (231) ​ ​ ​ ​ ​ ​ ​ ​ (308) Net income ​ ​ ​ ​ ​ ​ ​ $ 6,397 ​ ​ ​ ​ ​ ​ ​ $ 4,821 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2020 ​ Six months ended June 30, 2019 ​ Residential Commercial Total Residential Commercial Total ​ ​ (in thousands) ​ (in thousands) Income from rental operations ​ $ 48,376 ​ $ 12,351 ​ $ 60,727 ​ $ 47,258 ​ $ 12,844 ​ $ 60,102 Expenses from rental operations ​ ​ 26,472 ​ ​ 3,327 ​ ​ 29,799 ​ ​ 26,384 ​ ​ 3,675 ​ ​ 30,059 Net operating income ​ $ 21,904 ​ $ 9,024 ​ $ 30,928 ​ $ 20,874 ​ $ 9,169 ​ $ 30,043 Depreciation and amortization ​ ​ ​ ​ ​ ​ ​ ​ 10,498 ​ ​ ​ ​ ​ ​ ​ ​ 10,891 Interest ​ ​ ​ ​ ​ ​ ​ ​ 8,574 ​ ​ ​ ​ ​ ​ ​ ​ 9,298 Administration of REIT ​ ​ ​ ​ ​ ​ ​ ​ 2,247 ​ ​ ​ ​ ​ ​ ​ ​ 2,082 Other (income)/expense ​ ​ ​ ​ ​ ​ ​ ​ (2,015) ​ ​ ​ ​ ​ ​ ​ ​ (839) Net income ​ ​ ​ ​ ​ ​ ​ $ 11,624 ​ ​ ​ ​ ​ ​ ​ $ 8,611
Summary of Segment Assets and Accumulated Depreciation	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of June 30, 2020 Residential Commercial Total ​ ​ (in thousands) Real estate investments ​ $ 629,968 ​ $ 196,134 ​ $ 826,102 Accumulated depreciation ​ ​ (111,432) ​ ​ (43,193) ​ ​ (154,625) ​ ​ $ 518,536 ​ $ 152,941 ​ ​ 671,477 Cash and cash equivalents ​ ​ ​ ​ ​ ​ ​ ​ 8,697 Restricted deposits and funded reserves ​ ​ ​ ​ ​ ​ ​ ​ 13,792 Investment in unconsolidated affiliates ​ ​ ​ ​ ​ ​ ​ ​ 8,275 Note receivable ​ ​ ​ ​ ​ ​ ​ ​ 2,063 Intangible assets, less accumulated amortization ​ ​ ​ ​ ​ ​ ​ ​ 8,032 Other assets, net ​ ​ ​ ​ ​ ​ ​ ​ 6,339 Total Assets ​ ​ ​ ​ ​ ​ ​ $ 718,675 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2019 Residential Commercial Total ​ ​ (in thousands) Real estate investments ​ $ 605,813 ​ $ 196,215 ​ $ 802,028 Accumulated depreciation ​ ​ (104,170) ​ ​ (42,146) ​ ​ (146,316) ​ ​ $ 501,643 ​ $ 154,069 ​ ​ 655,712 Cash and cash equivalents ​ ​ ​ ​ ​ ​ ​ ​ 9,002 Restricted deposits and funded reserves ​ ​ ​ ​ ​ ​ ​ ​ 8,380 Investment in unconsolidated affiliates ​ ​ ​ ​ ​ ​ ​ ​ 7,915 Note receivable ​ ​ ​ ​ ​ ​ ​ ​ 1,300 Intangible assets, less accumulated amortization ​ ​ ​ ​ ​ ​ ​ ​ 9,133 Other assets, net ​ ​ ​ ​ ​ ​ ​ ​ 8,244 Total Assets ​ ​ ​ ​ ​ ​ ​ $ 699,686

LEASE INTANGIBLES (Tables)

LEASE INTANGIBLES (Tables)	6 Months Ended
	Jun. 30, 2020
LEASE INTANGIBLES
Schedule of Intangible Assets, Liabilities and Accumulated Amortization	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lease ​ Accumulated ​ Lease As of June 30, 2020 Intangibles Amortization Intangibles, net Lease Intangible Assets ​ (in thousands) In-place leases ​ $ 20,734 ​ $ (14,114) ​ $ 6,620 Above-market leases ​ ​ 2,806 ​ ​ (1,394) ​ ​ 1,412 ​ ​ $ 23,540 ​ $ (15,508) ​ $ 8,032 Lease Intangible Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ Below-market leases ​ $ (3,032) ​ $ 1,935 ​ $ (1,097) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lease ​ Accumulated ​ Lease As of December 31, 2019 Intangibles Amortization Intangibles, net Lease Intangible Assets ​ (in thousands) In-place leases ​ $ 21,480 ​ $ (14,051) ​ $ 7,429 Above-market leases ​ ​ 3,211 ​ ​ (1,507) ​ ​ 1,704 ​ ​ $ 24,691 ​ $ (15,558) ​ $ 9,133 Lease Intangible Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ Below-market leases ​ $ (3,088) ​ $ 1,881 ​ $ (1,207)
Schedule of Estimated Aggregate Amortization Expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intangible ​ Intangible Years ending December 31, Assets Liabilities ​ ​ (in thousands) 2020 (July 1, 2020 - December 31, 2020) ​ $ 665 ​ $ 103 2021 ​ ​ 1,121 ​ ​ 184 2022 ​ ​ 987 ​ ​ 164 2023 ​ ​ 849 ​ ​ 151 2024 ​ ​ 849 ​ ​ 151 Thereafter ​ ​ 3,561 ​ ​ 344 ​ ​ $ 8,032 ​ $ 1,097

MORTGAGE NOTES PAYABLE (Tables)

MORTGAGE NOTES PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2020
MORTGAGE NOTES PAYABLE
Schedule of Mortgage Notes Payable	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Principal Balance At ​ ​ June 30, ​ December 31, ​ ​ 2020 ​ 2019 ​ ​ (in thousands) Fixed rate mortgage notes payable (a) ​ $ 405,001 ​ $ 395,038 Less unamortized debt issuance costs ​ ​ 1,833 ​ ​ 1,874 ​ ​ $ 403,168 ​ $ 393,164 (a) Includes $26,205 and $12,960 of variable rate mortgage debt that was swapped to a fixed rate at June 30, 2020 and December 31, 2019, respectively.
Scheduled Maturities of Mortgage Notes Payable	​ ​ ​ ​ ​ Years ending December 31, Amount ​ ​ (in thousands) 2020 (July 1, 2020 - December 31, 2020) ​ $ 11,468 2021 ​ ​ 31,705 2022 ​ ​ 27,435 2023 ​ ​ 50,228 2024 ​ ​ 17,662 Thereafter ​ ​ 266,503 Total payments ​ $ 405,001

DERIVATIVES AND HEDGING ACTIV_2

DERIVATIVES AND HEDGING ACTIVITIES (Tables)	6 Months Ended
	Jun. 30, 2020
DERIVATIVES AND HEDGING ACTIVITIES
Schedule of interest rate swaps	The following table summarizes the Trust’s interest rate swaps that were designated as cash flow hedges of interest rate risk: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed ​ ​ Effective Date ​ Notional ​ Interest Rate ​ Maturity Date April 15, 2005 $ — ​ 7.25% ​ April 15, 2020 November 1, 2019 $ 7,073 ​ 3.15% ​ November 1, 2029 November 1, 2019 $ 4,913 ​ 3.28% ​ November 1, 2029 January 10, 2020 $ 3,191 ​ 3.39% ​ January 10, 2030 June 12, 2020 $ 1,600 ​ 3.07% ​ June 15, 2030 June 12, 2020 $ 3,100 ​ 3.07% ​ June 15, 2030 June 15, 2020 $ 1,736 ​ 2.94% ​ June 15, 2030 June 15, 2020 $ 4,592 ​ 2.94% ​ June 15, 2030 ​ ​ The following table summarizes the Trust’s interest rate swaps that were designated as cash flow hedges of interest rate risk: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Instruments ​ Notional Interest Rate Derivatives ​ June 30, 2020 ​ December 31, 2019 ​ June 30, 2020 ​ December 31, 2019 Interest rate swaps ​ 7 ​ 3 $ 26,205 $ 12,960
Schedule of the estimated fair value of derivatives	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives Derivatives designated as ​ June 30, 2020 ​ December 31, 2019 cash flow hedges: ​ Balance Sheet Location ​ Fair Value ​ Balance Sheet Location ​ Fair Value Interest rate swaps ​ Other assets, net $ — ​ Other assets, net $ 58 Interest rate swaps ​ Accrued expenses and other liabilities $ 2,071 ​ Accrued expenses and other liabilities $ 21
Schedule of the effect of the derivatives	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Location of Gain ​ ​ ​ ​ Amount of (Gain)/Loss ​ Reclassified from ​ Amount of (Gain)/Loss Derivatives in ​ Recognized in Other ​ Accumulated other ​ Reclassified from Cash Flow Hedging ​ Comprehensive Income ​ Comprehensive Income ​ AOCI into income Relationships ​ on Derivatives ​ (AOCI) into Income ​ Six Months Ended ​ ​ 2020 ​ ​ ​ 2020 Interest rate swaps $ 2,108 ​ Interest expense $ 55 ​ ​ 2019 ​ ​ ​ 2019 Interest rate swaps $ (7) ​ Interest expense $ 15

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	6 Months Ended
	Jun. 30, 2020
FAIR VALUE MEASUREMENT
Carrying Value and Estimated Fair Value of Company's Financial Instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 ​ December 31, 2019 ​ ​ Carrying ​ ​ ​ ​ Carrying ​ ​ ​ ​ Value Fair Value Value Fair Value ​ ​ (in thousands) Financial assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Note receivable ​ $ 2,063 ​ $ 2,191 ​ $ 1,300 ​ $ 1,389 Derivative assets ​ $ — ​ $ — ​ $ 58 ​ $ 58 ​ ​ ​ Financial liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage notes payable, net ​ $ 403,168 ​ $ 440,115 ​ $ 393,164 ​ $ 415,183 Derivative liabilities ​ $ 2,071 ​ $ 2,071 ​ $ 21 ​ $ 21
Schedule of Fair Value of Liabilities on Recurring Basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Level 2 Level 3 Total ​ ​ (in thousands) June 30, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative liabilities ​ $ — ​ $ 2,071 ​ $ — ​ $ 2,071 December 31, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative assets ​ $ — ​ $ 58 ​ $ ​ ​ $ 58 Derivative liabilities ​ $ — ​ $ 21 ​ $ — ​ $ 21 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Fair Value of Company's Financial Assets and Liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Level 2 Level 3 Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) June 30, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage notes payable, net ​ $ — ​ $ — ​ $ 440,115 ​ $ 440,115 Note receivable ​ $ — ​ $ — ​ $ 2,191 ​ $ 2,191 December 31, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage notes payable, net ​ $ — ​ $ — ​ $ 415,183 ​ $ 415,183 Note receivable ​ $ — ​ $ — ​ $ 1,389 ​ $ 1,389

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Jun. 30, 2020
RELATED PARTY TRANSACTIONS
Summary of Compensation Plan	​ ​ ​ ​ ​ ​ ​ Board Chairman – Board Meeting ​ 105 shares/meeting Trustee – Board Meeting ​ ​ 75 shares/meeting Committee Chair – Committee Meeting ​ ​ 30 shares/meeting Trustee – Committee Meeting ​ ​ 30 shares/meeting
Summary of Total Project Cost	​ ​ ​ ​ ​ ​ ​ ​ ​ Total Cost ​ Fee ​ Range of Fee ​ Formula 0 – 10M ​ 5.0 % ​ 0 –.5M ​ 0M – 5.0% x (TC – 0M) 10M - 20M ​ 4.5 % ​ .5 M – .95M ​ .50M – 4.5% x (TC – 10M) 20M – 30M ​ 4.0 % ​ .95 M – 1.35M ​ .95M – 4.0% x (TC – 20M) 30M – 40M ​ 3.5 % ​ 1.35 M – 1.70M ​ 1.35M – 3.5% x (TC – 30M) 40M – 50M ​ 3.0 % ​ 1.70 M – 2.00M ​ 1.70M – 3.0% x (TC – 40M)

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	6 Months Ended
	Jun. 30, 2020
ACQUISITIONS
Schedule of acquisitions	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Date ​ Property Name ​ Location ​ Property Type ​ ​ Units/ Square Footage/ Acres ​ ​ Acquisition Price ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1/12/20 ​ Wolf Creek ​ Fargo, ND ​ Apartment complex ​ ​ 54 units ​ $ 4,968 1/31/20 ​ Columbia Park Village ​ Grand Forks, ND ​ Apartment complex ​ ​ 12 units ​ ​ 612 3/1/20 ​ Belmont East & West ​ Bismarck, ND ​ Apartment complex ​ ​ 26 units ​ ​ 1,494 3/1/20 ​ Eastbrook ​ Bismarck, ND ​ Apartment complex ​ ​ 24 units ​ ​ 1,296 3/1/20 ​ Hawn ​ Fargo, ND ​ Apartment complex ​ ​ 48 units ​ ​ 2,400 3/1/20 ​ Rosser ​ Bismarck, ND ​ Apartment complex ​ ​ 24 units ​ ​ 1,296 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 12,066 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) (a) Acquisition price does not include capitalized closing costs and adjustments totaling $636 , special assessments assumed and capitalized of $168 or additional costs incurred due to a difference in unit price of $26 .
Schedule of acquisition date fair values, before prorations recorded in conjunction with acquisitions	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ ​ ​ June 30, ​ ​ ​ ​ ​ 2020 ​ ​ 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ Land, building, tenant improvements and FF&E ​ ​ ​ $ 12,896 ​ $ - Other liabilities ​ ​ ​ ​ (265) ​ ​ - Net assets acquired ​ ​ ​ ​ 12,631 ​ ​ - Equity/limited partnership unit consideration ​ ​ ​ ​ (9,031) ​ ​ - New loans ​ ​ ​ ​ (3,225) ​ ​ - ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash consideration ​ ​ ​ $ 375 ​ $ -

Organization - Additional Infor

Organization - Additional Information (Details)	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Properties
Ownership in operating partnership	34.51%	34.63%
Real Estate
Properties
Percentage of total assets that must consist of real estate assets per the Internal Revenue Code election to be treated as REIT	75.00%
Percentage of total gross income that must be derived from real estate per the Internal Revenue Code election to be treated as REIT	75.00%

Principal Activity and Signif_4

Principal Activity and Significant Accounting Policies - Principal Business Activity (Details) $ in Thousands	Jun. 30, 2020USD ($)ft²propertyitem	Dec. 31, 2019USD ($)
Properties
Real estate investments | $	$ 671,477	$ 655,712
No. of properties	177
Residential Property
Properties
Percentage of residential property out of the trust properties	74.20%
No. of properties	131
Units | item	10,040
Residential Property | North Dakota
Properties
No. of properties	111
Units | item	6,348
Residential Property | Minnesota
Properties
No. of properties	16
Units | item	3,033
Residential Property | Missouri
Properties
No. of properties	1
Units | ft²	164
Residential Property | Nebraska
Properties
No. of properties	3
Units | item	495
Commercial Property
Properties
Percentage of commercial property out of the trust properties	25.80%
No. of properties	46
Area of commercial property | ft²	1,646,000
Commercial Property | North Dakota
Properties
No. of properties	20
Area of commercial property | ft²	780,000
Commercial Property | Minnesota
Properties
No. of properties	13
Area of commercial property | ft²	664,000
Commercial Property | Nebraska
Properties
No. of properties	1
Area of commercial property | ft²	19,000
Commercial Property | Arkansas
Properties
No. of properties	2
Area of commercial property | ft²	28,000
Commercial Property | Colorado
Properties
No. of properties	1
Area of commercial property | ft²	17,000
Commercial Property | Iowa
Properties
No. of properties	1
Area of commercial property | ft²	33,000
Commercial Property | Louisiana
Properties
No. of properties	1
Area of commercial property | ft²	15,000
Commercial Property | Michigan
Properties
No. of properties	1
Area of commercial property | ft²	12,000
Commercial Property | Mississippi
Properties
No. of properties	1
Area of commercial property | ft²	15,000
Commercial Property | Wisconsin
Properties
No. of properties	5
Area of commercial property | ft²	63,000

Principal Activity and Signif_5

Principal Activity and Significant Accounting Policies - Real Estate Investments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Real Estate Investments
Amortization expense			$ 733	$ 959
Amortization expense of below market lease	$ 54	$ 66	110	133
Depreciation expense	4,887	4,893	9,755	9,906
Loss on impairment of property			$ 0	0
Building and improvements
Real Estate Investments
Estimated useful life			40 years
Furniture and fixtures | Minimum
Real Estate Investments
Estimated useful life			5 years
Furniture and fixtures | Maximum
Real Estate Investments
Estimated useful life			9 years
In-place leases
Real Estate Investments
Amortization expense	315	418	$ 656	847
Above-market leases
Real Estate Investments
Amortization expense	$ 47	$ 54	$ 99	$ 107

Principal Activity and Signif_6

Principal Activity and Significant Accounting Policies - Held for Sale and Unconsolidated Affiliates (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)ft²itemproperty	Jun. 30, 2019USD ($)	Dec. 31, 2019USD ($)property
Significant Accounting Policies
Number of real estate properties classified as held for sale | property	0		0
Impairment losses related to the unconsolidated affiliates	$ 0	$ 0
Total assets held by unconsolidated affiliates	34,285		$ 31,261
Mortgage notes held by unconsolidated affiliates	21,878		16,690
Assets	$ 718,675		699,686
Operating Partnership | Grand Forks Marketplace Retail Center
Significant Accounting Policies
Investment in unconsolidated affiliates	50.00%
Percentage of interest	100.00%
Area of commercial property | ft²	183,000
Operating Partnership | Tenant in common - Office building, Fargo, North Dakota
Significant Accounting Policies
Investment in unconsolidated affiliates	66.67%
Area of commercial property | ft²	75,000
Operating Partnership | SE Savage
Significant Accounting Policies
Number of units | property	190
Investment in unconsolidated affiliates	60.00%
Assets	$ 12,407
Cash contribution	$ 3,305
Operating Partnership | SE Maple Grove
Significant Accounting Policies
Number of units | property	160
Investment in unconsolidated affiliates	60.00%
Assets	$ 4,100
Cash contribution	2,461
Mortgages | SE Savage
Significant Accounting Policies
Mortgage carrying amount	5,407		0
Mortgages | SE Maple Grove
Significant Accounting Policies
Mortgage carrying amount	0
Mortgages | Grand Forks Marketplace Retail Center
Significant Accounting Policies
Mortgage carrying amount	10,140		10,264
Mortgages | Tenant in common - Office building, Fargo, North Dakota
Significant Accounting Policies
Mortgage carrying amount	$ 6,331		$ 6,426
Glen Pond Development
Significant Accounting Policies
Number of units | item	114
Development project budget	$ 16,175
Development project cost incurred	15,698
Goldmark Office Park
Significant Accounting Policies
Development project budget	6,674
Development project cost incurred	$ 5,266

Principal Activity and Signif_7

Principal Activity and Significant Accounting Policies - Other (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES
Impairment of lease intangible assets	$ 0	$ 0
Taxable income to be distributed	90.00%
Retainable taxable income	10.00%
Provisions or liabilities for income taxes	$ 0

Principal Activity and Signif_8

Principal Activity and Significant Accounting Policies - Revenue recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Revenue Recognition
Leases, threshold term for classifying a lease as operating lease			10 years
Decrease/Increase in revenue due to straight - line adjustment	$ (73)	$ (48)	$ (138)	$ 55
Straight - line receivable	3,014		3,014		$ 3,331
Term of lease		1 year		1 year
Lease income:
Lease income related to fixed lease payments	28,648	$ 28,006	56,565	$ 55,580
Lease income related to variable lease payments	1,451	1,551	2,712	3,038
Other	(164)	(223)	(508)	(324)
Lease income	29,935	29,334	58,769	58,294
Rental income accounted for under revenue recognition standard:
Other rental income	886	936	1,958	1,808
Future minimum rental income:
2020 (July 1, 2020 - December 31, 2020)	8,828		8,828
2021	14,879		14,879
2022	11,493		11,493
2023	9,505		9,505
2024	9,035		9,035
Thereafter	42,596		42,596
Total	$ 96,336		$ 96,336
Residential
Revenue Recognition
Percentage of revenue from leases that are generally for terms of one year or less	79.70%		79.70%
Lease income:
Lease income related to fixed lease payments	$ 23,613	23,077	$ 46,816	45,874
Other	(88)	(188)	(342)	(405)
Lease income	$ 23,525	22,889	$ 46,474	45,469
Commercial
Revenue Recognition
Percentage of revenue from leases primarily under long-term lease agreements	20.30%		20.30%
Lease income:
Lease income related to fixed lease payments	$ 5,035	4,929	$ 9,749	9,706
Lease income related to variable lease payments	1,451	1,551	2,712	3,038
Other	(76)	(35)	(166)	81
Lease income	$ 6,410	$ 6,445	$ 12,295	$ 12,825

Principal Activity and Signif_9

Principal Activity and Significant Accounting Policies - Business Interruption Proceeds (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES
Insurance recoveries	$ 521	$ 375

Principal Activity and Signi_10

Principal Activity and Significant Accounting Policies - Earnings Per Common Share And Incurred But Not Reported Insurance Liability (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Earnings per Common Share
Dilutive potential common shares			0	0
Denominators for the basic and diluted earnings per common share	9,611,000	9,209,000	9,587,000	9,151,000
Accrued expenses and other liabilities
Incurred but Not Reported Insurance Liability
Property claim reserves	$ 782		$ 782		$ 204

Segment Reporting - Additional

Segment Reporting - Additional Information (Details)	6 Months Ended
	Jun. 30, 2020segment
SEGMENT REPORTING
Number of reportable segments	2

Segment Reporting - Summary of

Segment Reporting - Summary of Segment Revenues and Net Operating Income (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
SEGMENT REPORTING
Income from rental operations	$ 30,821		$ 30,270		$ 60,727	$ 60,102
Expenses from rental operations	14,100		14,851		29,799	30,059
Net operating income	16,721		15,419		30,928	30,043
Depreciation and amortization	5,246		5,353		10,498	10,891
Interest	4,224		4,582		8,574	9,298
Administration of REIT	1,085		971		2,247	2,082
Other (income)/expense	(231)		(308)		(2,015)	(839)
Net income	6,397	$ 5,227	4,821	$ 3,790	11,624	8,611
Residential
SEGMENT REPORTING
Income from rental operations	24,381		23,822		48,376	47,258
Expenses from rental operations	12,560		12,995		26,472	26,384
Net operating income	11,821		10,827		21,904	20,874
Commercial
SEGMENT REPORTING
Income from rental operations	6,440		6,448		12,351	12,844
Expenses from rental operations	1,540		1,856		3,327	3,675
Net operating income	$ 4,900		$ 4,592		$ 9,024	$ 9,169

Segment Reporting - Summary o_2

Segment Reporting - Summary of Segment Assets and Accumulated Depreciation (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
SEGMENT REPORTING
Real estate investments	$ 826,102	$ 802,028
Accumulated depreciation	(154,625)	(146,316)
Real estate investments, net	671,477	655,712
Cash and cash equivalents	8,697	9,002	$ 16,617
Restricted deposits and funded reserves	13,792	8,380	$ 7,932
Investment in unconsolidated affiliates	8,275	7,915
Note receivable	2,063	1,300
Intangible assets, less accumulated amortization	8,032	9,133
Other assets, net	6,339	8,244
Total Assets	718,675	699,686
Residential
SEGMENT REPORTING
Real estate investments	629,968	605,813
Accumulated depreciation	(111,432)	(104,170)
Real estate investments, net	518,536	501,643
Commercial
SEGMENT REPORTING
Real estate investments	196,134	196,215
Accumulated depreciation	(43,193)	(42,146)
Real estate investments, net	$ 152,941	$ 154,069

Lease Intangibles - Schedule of

Lease Intangibles - Schedule of Intangible Assets and Liabilities and Accumulated Amortization (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Intangible Assets
Lease Intangibles	$ 23,540	$ 24,691
Accumulated Amortization	(15,508)	(15,558)
Total	8,032	9,133
Intangible Liabilities
Below-market lease	(3,032)	(3,088)
Below-market lease, accumulated amortization	1,935	1,881
Below-market lease, net	(1,097)	(1,207)
In-place leases
Intangible Assets
Lease Intangibles	20,734	21,480
Accumulated Amortization	(14,114)	(14,051)
Total	6,620	7,429
Above-market leases
Intangible Assets
Lease Intangibles	2,806	3,211
Accumulated Amortization	(1,394)	(1,507)
Total	$ 1,412	$ 1,704

Lease Intangibles - Schedule _2

Lease Intangibles - Schedule of Estimated Aggregate Amortization Expense (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Intangible Assets
2020 (July 1, 2020 - December 31, 2020)	$ 665
2021	1,121
2022	987
2023	849
2024	849
Thereafter	3,561
Total	8,032	$ 9,133
Intangible Liabilities
2020 (July 1, 2020 - December 31, 2020)	103
2021	184
2022	164
2023	151
2024	151
Thereafter	344
Total	$ 1,097	$ 1,207
Amortization period	6 years 7 months 6 days

Lines of Credit - Additional In

Lines of Credit - Additional Information (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020USD ($)item	Dec. 31, 2019property
Lines of Credit
Number of letters of credit secured | item	2
Letters of credit total	$ 1,216
Unused line of credit	30,199
Wells Fargo Bank
Lines of Credit
Agreed line of credit	$ 18,300
Expiration date	Jun. 1, 2021
Wells Fargo Bank | 1-Month LIBOR
Lines of Credit
Variable interest rate of line of credit	2.25%
Bremer Bank
Lines of Credit
Number of properties out of compliance with debt covenant | property		3
Bremer Bank Agreement One
Lines of Credit
Agreed line of credit	$ 4,915
Expiration date	Jun. 1, 2022
Bremer Bank Agreement One | Prime Rate
Lines of Credit
Basis reduction on variable rate (as a percent)	0.50%
Bremer Bank Agreement Two
Lines of Credit
Agreed line of credit	$ 5,000
Expiration date	Jun. 1, 2022
Bremer Bank Agreement Two | Floating LIBOR
Lines of Credit
Variable interest rate of line of credit	2.00%
Bank of the West
Lines of Credit
Agreed line of credit	$ 3,200
Expiration date	Nov. 1, 2020
Bank of the West | LIBOR
Lines of Credit
Variable interest rate of line of credit	2.04%

Mortgage Notes Payable - Summar

Mortgage Notes Payable - Summary (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020USD ($)item	Dec. 31, 2019USD ($)loanitemLender
MORTGAGE NOTES PAYABLE
Long-term debt, gross	$ 405,001
Residential Property | Mortgage Notes Payable
MORTGAGE NOTES PAYABLE
Number of mortgage loans out of compliance | loan		10
Outstanding balance of loans out of compliance, in aggregate		$ 16,361
Outstanding balance of mortgage loans out of compliance in which annual waivers were received from the lenders		$ 10,435
Number of lenders in which annual waivers were not received for loans out of compliance | Lender		1
Outstanding balance of mortgage loans out of compliance in which annual waivers were not received from the lender		$ 5,926
Fixed rate mortgage notes payable | Mortgage Notes Payable
MORTGAGE NOTES PAYABLE
Long-term debt, gross	405,001	395,038
Less unamortized debt issuance costs	1,833	1,874
Long-term debt, net	403,168	393,164
Debt swapped from variable to fixed rate	$ 26,205	$ 12,960
Number of mortgage loans | item	122	121
Fixed rate mortgage notes payable | Mortgage Notes Payable | Minimum
MORTGAGE NOTES PAYABLE
Effective interest rate (as a percent)	2.43%	3.15%
Fixed rate mortgage notes payable | Mortgage Notes Payable | Maximum
MORTGAGE NOTES PAYABLE
Effective interest rate (as a percent)	6.85%	7.25%
Fixed rate mortgage notes payable | Mortgage Notes Payable | Weighted Average
MORTGAGE NOTES PAYABLE
Effective interest rate (as a percent)	4.18%	4.31%

Mortgage Notes Payable - Schedu

Mortgage Notes Payable - Scheduled Maturities of Mortgage Notes Payable (Details) $ in Thousands	Jun. 30, 2020USD ($)
MORTGAGE NOTES PAYABLE
2020 (July 1, 2020 - December 31, 2020)	$ 11,468
2021	31,705
2022	27,435
2023	50,228
2024	17,662
Thereafter	266,503
Total payments	$ 405,001

Derivatives and Hedging Activ_3

Derivatives and Hedging Activities - Other (Details) - Interest rate swaps $ in Thousands	Jun. 30, 2020USD ($)instrument	Dec. 31, 2019instrument
Derivatives and Hedging Activities
Estimated amount to be reclassified over the next 9 months, as a increase to interest expense | $	$ 160
Designated as Hedging Instrument | Cash Flow Hedging
Derivatives and Hedging Activities
Number of instruments | instrument	7	3

Derivatives and Hedging Activ_4

Derivatives and Hedging Activities - Summary (Details) - Designated as Hedging Instrument - Cash Flow Hedging $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)instrument	Dec. 31, 2019USD ($)instrument
Interest rate swaps
Derivatives and Hedging Activities
Notional amount	$ 26,205	$ 12,960
Number of instruments | instrument	7	3
Interest Rate Swap, April 2020
Derivatives and Hedging Activities
Fixed interest rate (as a percent)	7.25%
Derivative maturity date	Apr. 15, 2020
Interest Rate Swap, November 2029
Derivatives and Hedging Activities
Notional amount	$ 7,073
Fixed interest rate (as a percent)	3.15%
Derivative maturity date	Nov. 1, 2029
Interest Rate Swap, November 2029
Derivatives and Hedging Activities
Notional amount	$ 4,913
Fixed interest rate (as a percent)	3.28%
Derivative maturity date	Nov. 1, 2029
Interest Rate Swap, January 2030
Derivatives and Hedging Activities
Notional amount	$ 3,191
Fixed interest rate (as a percent)	3.39%
Derivative maturity date	Jan. 10, 2030
Interest Rate Swap, June 2030
Derivatives and Hedging Activities
Notional amount	$ 1,600
Fixed interest rate (as a percent)	3.07%
Derivative maturity date	Jun. 15, 2030
Interest Rate Swap, June 2030
Derivatives and Hedging Activities
Notional amount	$ 3,100
Fixed interest rate (as a percent)	3.07%
Derivative maturity date	Jun. 15, 2030
Interest Rate Swap, June 2030
Derivatives and Hedging Activities
Notional amount	$ 1,736
Fixed interest rate (as a percent)	2.94%
Derivative maturity date	Jun. 15, 2030
Interest Rate Swap, June 2030
Derivatives and Hedging Activities
Notional amount	$ 4,592
Fixed interest rate (as a percent)	2.94%
Derivative maturity date	Jun. 15, 2030

Derivatives and Hedging Activ_5

Derivatives and Hedging Activities - Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Other assets, net
Derivatives and Hedging Activities
Fair value, derivative assets		$ 58
Accrued expenses and other liabilities
Derivatives and Hedging Activities
Fair value, derivative liabilities	$ 2,071	$ 21

Derivatives and Hedging Activ_6

Derivatives and Hedging Activities - Gain/Loss (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Derivatives and Hedging Activities
Amount of (Gain)/Loss Recognized in Other Comprehensive Income on Derivatives	$ 622	$ 1,486	$ (3)	$ (4)	$ 2,108	$ (7)
Interest rate swaps
Derivatives and Hedging Activities
Amount of (Gain)/Loss Recognized in Other Comprehensive Income on Derivatives	2,108		(7)
Interest rate swaps | Interest expense
Derivatives and Hedging Activities
Amount of (Gain)/Loss Reclassified from AOCI into income	$ 55		$ 15

Derivatives and Hedging Activ_7

Derivatives and Hedging Activities - Credit-Risk Related Contingent Features (Details) $ in Thousands	Jun. 30, 2020USD ($)
Credit-risk-related Contingent Features
Termination value of interest rate derivatives in liability position	$ 2,071

Fair Value Measurement - Carryi

Fair Value Measurement - Carrying Value and Estimated Fair Value of Company's Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Carrying Value
Financial assets:
Note receivable	$ 2,063	$ 1,300
Derivative assets		58
Financial liabilities:
Mortgage notes payable, net	403,168	393,164
Derivative liabilities	2,071	21
Fair Value
Financial assets:
Note receivable	2,191	1,389
Derivative assets		58
Financial liabilities:
Mortgage notes payable, net	440,115	415,183
Derivative liabilities	$ 2,071	$ 21

Fair Value Measurement - Schedu

Fair Value Measurement - Schedule of Fair Value of Assets on Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Fair Value Measurements
Derivative assets		$ 58
Derivative liabilities	$ 2,071	21
Level 2
Fair Value Measurements
Derivative assets		58
Derivative liabilities	$ 2,071	$ 21

Fair Value Measurement - Fair V

Fair Value Measurement - Fair Value of Company's Financial Assets and Liabilities (Details) - Fair Value - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Fair Value Measurements
Mortgage notes payable, net	$ 440,115	$ 415,183
Note receivable	2,191	1,389
Level 3
Fair Value Measurements
Mortgage notes payable, net	440,115	415,183
Note receivable	$ 2,191	$ 1,389

Fair Value Measurement - Additi

Fair Value Measurement - Additional Information (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Minimum
Fair Value Disclosures
Discount rates used to estimate fair value of mortgages and notes payable	3	3.75
Receivables, measurement input	3	3.75
Maximum
Fair Value Disclosures
Discount rates used to estimate fair value of mortgages and notes payable	3.10	3.80
Receivables, measurement input	3.10	3.80

Noncontrolling Interest of Un_2

Noncontrolling Interest of Unitholders in Operating Partnership - Additional Information (Details) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020USD ($)shares	Jun. 30, 2019USD ($)	Jun. 30, 2020item$ / sharesshares	Jun. 30, 2019$ / shares	Dec. 31, 2019shares
Noncontrolling Interest
Distributions per unit | $ / shares			$ 0.5294	$ 0.5225
Maximum
Noncontrolling Interest
Number of permitted exchange requests in a calendar year | item			2
Limited Partnership
Noncontrolling Interest
Total units	18,239,000		18,239,000		17,811,000
Units converted by limited partners into common shares			0		0
Total units			1
Limited Partnership | Minimum
Noncontrolling Interest
Number of units which can be redeemed in single redemption			1,000
Operating Partnership
Noncontrolling Interest
Declared distributions | $	$ 4,828	$ 4,657

Redemption Plans - Additional I

Redemption Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	Jan. 01, 2020	Dec. 31, 2019	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Redemption plans
Redemption of shares, value			$ 1,248	$ 1,237	$ 427	$ 826
Redemption Plans
Redemption plans
Amount of securities redemption			$ 40,000				$ 40,000
Redemption price of securities	$ 18.25	$ 18
Redemption of shares							95,000	20,000
Redemption of shares, value							$ 1,735	$ 351
Additional redemption of units							41,000	50,000
Additional redemption of units, value							$ 750	$ 902

Beneficial Interest - Additiona

Beneficial Interest - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Beneficial Interest
Common shares, outstanding	9,610,000		9,436,000
Preferred shares, outstanding	0		0
Dividends paid	$ 0.5294	$ 0.5225
Dividends payable	$ 7,371		$ 7,118
Total Beneficial Interest
Beneficial Interest
Common shares, authorized	100,000,000
Common shares, par value	$ 0.01
Preferred shares, authorized	50,000,000
Preferred shares, par value	$ 0.01
Dividends payable	$ 2,544	$ 2,405

Dividend Reinvestment Plan - Ad

Dividend Reinvestment Plan - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Jun. 25, 2020	Dec. 31, 2019	Jul. 11, 2017	Jul. 20, 2012
DIVIDEND REINVESTMENT PLAN
Common shares to be issued							2,000,000		2,000,000	2,000,000
Minimum percentage of cash dividends					25.00%
Maximum additional cash purchase of common shares per fiscal quarter					$ 10
Percentage estimated value for dividend reinvestments					95.00%
Percentage estimated value for additional optional cash purchases					100.00%
Maximum amount of optional additional shares available for purchase					$ 40
Estimated value per common share	$ 19.25				$ 19.25			$ 19
Purchase price per common share for dividend reinvestments	18.29				18.29			18.05
Purchase price per common share additional optional cash purchases	$ 19.25				$ 19.25			$ 19
Notice period to participants					10 days
Shares issued pursuant to dividend reinvestments					175,000	168,000
Shares issued pursuant to additional optional cash purchases under the plan					94,000	91,000
Value of shares issued pursuant to dividend reinvestments	$ 1,608	$ 1,584	$ 1,554	$ 1,479	$ 3,192	$ 3,033
Value of shares issued pursuant to additional optional cash purchases under the plan					$ 1,814	$ 1,724

Related Party Transactions - Pr

Related Party Transactions - Property Management and Board of Trustee Fees (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Related Party Transactions
Management fees paid expressed as a percentage of net collected rents	5.00%	5.00%
Trustee fees	$ 35	$ 29
Unpaid board of trustee fees	64		$ 29
GOLDMARK Property Management
Related Party Transactions
Management fee, amount paid	6,411	6,313
Repair and maintenance related payroll and payroll related expenses	$ 3,082	$ 3,118
Board Chairman - Board Meeting
Related Party Transactions
Shares received by board members per meeting	105
Trustee - Board Meeting
Related Party Transactions
Shares received by board members per meeting	75
Committee Chair - Committee Meeting
Related Party Transactions
Shares received by board members per meeting	30
Trustee - Committee Meeting
Related Party Transactions
Shares received by board members per meeting	30

Related Party Transactions - Ad

Related Party Transactions - Advisory Agreement and Other (Details) shares in Thousands, $ / item in Thousands, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)employee$ / itemshares	Jun. 30, 2019USD ($)shares	Dec. 31, 2019USD ($)
Related Party Transactions
Number of paid employees | employee			0
Management fee percentage of total assets			0.35%
Maximum management fee payable in cash or common shares			not to exceed one-twelfth of 0.35% of the total assets
Rental Income	$ 28,648	$ 28,006	$ 56,565	$ 55,580
Other Operational Liabilities	323		$ 323
Advisory Agreement
Related Party Transactions
Business acquisition purchase price allocation acquisition fees percentage			2.50%
Advisory disposition fee for sale of investments			2.50%
Advisory disposition fee sale of cap amount | $ / item			375
Financing fee percentage			0.25%
Finance fee capped per loan			$ 38
Percentage Of Project Management Fee			6.00%
Project Management Fee	76		$ 76
Project Management Fee Payable	11		$ 11
Advisory Agreement | Minimum
Related Party Transactions
Development fee percentage			3.00%
Advisory Agreement | Maximum
Related Party Transactions
Criteria acquisition fees | $ / item			375
Acquisition fees and expenses net percentage			6.00%
Development fee percentage			5.00%
Advisory Agreement | 0 - 10M
Related Party Transactions
Development fee percentage			5.00%
Formula			0M – 5.0% x (TC – 0M)
Advisory Agreement | 0 - 10M | Minimum
Related Party Transactions
Total Cost			$ 0
Range of Fee			0
Advisory Agreement | 0 - 10M | Maximum
Related Party Transactions
Total Cost			10,000
Range of Fee			$ 500
Advisory Agreement | 10M - 20M
Related Party Transactions
Development fee percentage			4.50%
Formula			.50M – 4.5% x (TC – 10M)
Advisory Agreement | 10M - 20M | Minimum
Related Party Transactions
Total Cost			$ 10,000
Range of Fee			500
Advisory Agreement | 10M - 20M | Maximum
Related Party Transactions
Total Cost			20,000
Range of Fee			$ 950
Advisory Agreement | 20M - 30M
Related Party Transactions
Development fee percentage			4.00%
Formula			.95M – 4.0% x (TC – 20M)
Advisory Agreement | 20M - 30M | Minimum
Related Party Transactions
Total Cost			$ 20,000
Range of Fee			950
Advisory Agreement | 20M - 30M | Maximum
Related Party Transactions
Total Cost			30,000
Range of Fee			$ 1,350
Advisory Agreement | 30M - 40M
Related Party Transactions
Development fee percentage			3.50%
Formula			1.35M – 3.5% x (TC – 30M)
Advisory Agreement | 30M - 40M | Minimum
Related Party Transactions
Total Cost			$ 30,000
Range of Fee			1,350
Advisory Agreement | 30M - 40M | Maximum
Related Party Transactions
Total Cost			40,000
Range of Fee			$ 1,700
Advisory Agreement | 40M - 50M
Related Party Transactions
Development fee percentage			3.00%
Formula			1.70M – 3.0% x (TC – 40M)
Advisory Agreement | 40M - 50M | Minimum
Related Party Transactions
Total Cost			$ 40,000
Range of Fee			1,700
Advisory Agreement | 40M - 50M | Maximum
Related Party Transactions
Total Cost			50,000
Range of Fee			2,000
Sterling Management, LLC
Related Party Transactions
Advisory management fees			1,538	1,496
Advisory management fees outstanding	260		260		$ 503
Advisory management fees for operating costs			5	22
Unpaid reimbursable operating costs owed to Advisor	5		5
Acquisition fees			302	0
Acquisition fees outstanding	0		0		0
Disposition fees			141	0
Disposition fees outstanding	0		0		0
Financing fees for loan financing and refinancing activities			61	0
Financing fees for loan financing and refinancing outstanding	35		35		0
Development fee			0	0
Development fees Outstanding	104		104
Development fees hold back outstanding			0		$ 104
Percentage of development fees hold back					10.00%
Rental Income			130	115
GOLDMARK Property Management
Related Party Transactions
Rental Income			28	28
GOLDMARK SCHLOSSMAN Commercial Real Estate Services
Related Party Transactions
Real estate commissions			324	0
Real estate commissions outstanding	$ 0		0		$ 0
Rental Income			$ 46	$ 25
Entity Affiliated With Messrs Regan and Wieland
Related Party Transactions
Number of operating partnership (OP) units issued in connection with the acquisition of various properties | shares			176,000	0
Value of operating partnership (OP) units issued in connection with the acquisition of various properties			$ 3,373

Dispositions - Assets and Liabi

Dispositions - Assets and Liabilities Classified as Held for Sale (Details) $ in Thousands	1 Months Ended		6 Months Ended
	May 31, 2020USD ($)	Mar. 31, 2020USD ($)	Jun. 30, 2020USD ($)property	Jun. 30, 2019property
Dispositions
Number of dispositions | property			2	0
Gain on sale of real estate			$ 1,456
Retail Property, Apple Valley, MN | Disposed of by Sale
Dispositions
Property sold		$ 3,670
Gain on sale of real estate		$ 1,455
Retail Property, St, Cloud, Minnesota | Disposed of by Sale
Dispositions
Property sold	$ 2,050
Gain on sale of real estate	$ 1

Acquisitions - Purchases, Curre

Acquisitions - Purchases, Current (Details) $ / shares in Units, $ in Thousands	Mar. 01, 2020USD ($)item	Jan. 31, 2020USD ($)item	Jan. 12, 2020USD ($)item	Jun. 30, 2020USD ($)$ / sharesshares	Jun. 30, 2019item
BUSINESS COMBINATIONS AND ACQUISITIONS
Number of acquisitions | item					0
Acquisition price				$ 12,066
Capitalized closing costs and adjustments				636
Special assessments				168
Additional costs due to difference in unit price				$ 26
Aggregate number of limited partnership units issued for acquisition | shares				469,000
Price per limited partnership unit issued for acquisition, price one | $ / shares				$ 19.25
Aggregate value of limited partnership units issued for acquisition				$ 9,031
Assumed liabilities				265
Mortgage loan				3,225
Consideration in cash to pay for acquisitions				$ 375
Wolf Creek, Fargo, ND
BUSINESS COMBINATIONS AND ACQUISITIONS
Units acquired | item			54
Acquisition price			$ 4,968
Columbia Park Village, Grand Forks, ND
BUSINESS COMBINATIONS AND ACQUISITIONS
Units acquired | item		12
Acquisition price		$ 612
Belmont East & West, Bismarck, ND
BUSINESS COMBINATIONS AND ACQUISITIONS
Units acquired | item	26
Acquisition price	$ 1,494
Eastbrook, Bismarck, ND
BUSINESS COMBINATIONS AND ACQUISITIONS
Units acquired | item	24
Acquisition price	$ 1,296
Hawn, Fargo, ND
BUSINESS COMBINATIONS AND ACQUISITIONS
Units acquired | item	48
Acquisition price	$ 2,400
Rosser, Bismarck, ND
BUSINESS COMBINATIONS AND ACQUISITIONS
Units acquired | item	24
Acquisition price	$ 1,296

Acquisitions - Summary of Acqui

Acquisitions - Summary of Acquisition Date Fair Values (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jan. 01, 2020	Jan. 01, 2019
Acquisition date fair values
Net cash consideration	$ 375
Price per limited partnership unit issued for acquisition		$ 19.25	$ 19
Nonrecurring | Real Estate Property Acquisitions 2020
Acquisition date fair values
Land, building, tenant improvements and FF&E	12,896
Other liabilities	(265)
Net assets acquired	12,631
Equity/limited partnership unit consideration	(9,031)
New loans	(3,225)
Net cash consideration	$ 375

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	Jul. 15, 2020	Jun. 30, 2020	Jun. 30, 2019	Jul. 01, 2020
Subsequent Events
Dividend or distribution paid		$ 0.5294	$ 0.5225
Subsequent Event
Subsequent Events
Dividend or distribution paid	$ 0.2647
Refinanced mortgage				$ 5,000