Sterling Real Estate Trust 10-Q11 Aug 212021 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2021	Aug. 09, 2021
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, 2021
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	4340 18th Ave S., Suite 200
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	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		10,213,214.70
Entity Central Index Key	0001412502
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
ASSETS
Land and land improvements	$ 121,104	$ 119,088
Building and improvements	731,346	712,560
Construction in progress	10,216	13,640
Real estate investments	862,666	845,288
Less accumulated depreciation	(168,972)	(160,575)
Real estate investments, net	693,694	684,713
Cash and cash equivalents	11,529	11,716
Restricted deposits	14,338	15,919
Investment in unconsolidated affiliates	11,517	9,659
Notes receivable	640	2,026
Assets held for sale		831
Lease intangible assets, less accumulated amortization of $11,961 in 2021 and $15,019 in 2020	6,796	7,367
Other assets, net	14,773	10,798
Total Assets	753,287	743,029
LIABILITIES
Mortgage notes payable, net	429,916	421,278
Dividends payable	7,493	7,447
Tenant security deposits payable	5,154	4,908
Lease intangible liabilities, less accumulated amortization of $1,662 in 2021 and $1,963 in 2020	901	994
Liabilities related to assets held for sale		5
Accrued expenses and other liabilities	14,780	16,869
Total Liabilities	458,244	451,501
COMMITMENTS and CONTINGENCIES - Note 13
SHAREHOLDERS' EQUITY
Beneficial interest	113,490	109,366
Operating partnership	179,482	181,621
Partially owned properties	2,337	2,346
Accumulated other comprehensive loss	(266)	(1,805)
Total Shareholders' Equity	295,043	291,528
Total liabilities and shareholders' equity	$ 753,287	$ 743,029

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
CONSOLIDATED BALANCE SHEETS
Lease intangible assets, accumulated amortization	$ 11,961	$ 15,019
Lease intangible liabilities, accumulated amortization	$ 1,662	$ 1,963

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income from rental operations
Real estate rental income	$ 31,923	$ 30,821	$ 63,683	$ 60,727
Expenses from rental operations
Operating expenses	11,664	10,961	23,772	23,496
Real estate taxes	3,390	3,139	6,634	6,303
Depreciation and amortization	5,756	5,246	11,083	10,498
Interest	4,302	4,224	8,589	8,574
Total expenses from rental operations	25,112	23,570	50,078	48,871
Administration of REIT
Administration of REIT	1,059	1,085	2,260	2,247
Total expenses	26,171	24,655	52,338	51,118
Net operating income	5,752	6,166	11,345	9,609
Other income
Equity in (losses) income of unconsolidated affiliates	(89)	80	(116)	238
Other income	218	150	488	269
Gain on sale of real estate investments	1,710	1	1,710	1,456
Gain on involuntary conversion	687		687	52
Total other income	2,526	231	2,769	2,015
Net income	8,278	6,397	14,114	11,624
Net income (loss) attributable to noncontrolling interest in operating partnership	5,355	4,177	9,108	7,596
Net income (loss) attributable to noncontrolling interest in partially owned properties	(40)	18	(9)	13
Net income attributable to Sterling Real Estate Trust	$ 2,963	$ 2,202	$ 5,015	$ 4,015
Net income attributable to Sterling Real Estate Trust per common share, basic and diluted	$ 0.29	$ 0.23	$ 0.50	$ 0.42
Comprehensive income:
Net income	$ 8,278	$ 6,397	$ 14,114	$ 11,624
Other comprehensive gain (loss) - change in fair value of interest rate swaps	(845)	(622)	1,539	(2,109)
Comprehensive income	7,433	5,775	15,653	9,515
Comprehensive income attributable to noncontrolling interest	4,772	3,788	10,092	6,229
Comprehensive income attributable to Sterling Real Estate Trust	$ 2,661	$ 1,987	$ 5,561	$ 3,286
Weighted average Common Shares outstanding, basic and diluted	10,085	9,611	10,034	9,587

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ 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, 2019		$ 131,261	$ (28,888)	$ 102,373	$ 174,221	$ 2,416	$ 37	$ 279,047
Beginning Balance (in shares) at Dec. 31, 2019	9,436
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)
Dividends and distributions 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
Issuance of shares under optional purchase plan		1,203		1,203				1,203
Issuance of shares under optional purchase plan (in shares)	62
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
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
Change in fair value of interest rate swaps								(2,109)
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
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
Shares/units redeemed		(1,039)		(1,039)	(209)			(1,248)
Shares/units redeemed (in shares)	(57)
Dividends and distributions 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
Issuance of shares under optional purchase plan		611		611				611
Issuance of shares under optional purchase plan (in shares)	32
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
Beginning Balance at Dec. 31, 2020		139,105	(29,739)	109,366	181,621	2,346	(1,805)	291,528
Beginning Balance (in shares) at Dec. 31, 2020	9,855
Shares/units redeemed		(777)		(777)	(628)			(1,405)
Shares/units redeemed (in shares)	(41)
Dividends and distributions declared			(2,642)	(2,642)	(4,835)			(7,477)
Dividends reinvested - stock dividend		1,686		1,686				1,686
Dividends reinvested - stock dividend (in shares)	89
Issuance of shares under optional purchase plan		1,307		1,307				1,307
Issuance of shares under optional purchase plan (in shares)	65
Change in fair value of interest rate swaps							2,384	2,384
Net income			2,052	2,052	3,753	31		5,836
Ending balance at Mar. 31, 2021		141,321	(30,329)	110,992	179,911	2,377	579	293,859
Ending balance (in shares) at Mar. 31, 2021	9,968
Beginning Balance at Dec. 31, 2020		139,105	(29,739)	109,366	181,621	2,346	(1,805)	291,528
Beginning Balance (in shares) at Dec. 31, 2020	9,855
Change in fair value of interest rate swaps								1,539
Net income								14,114
Ending balance at Jun. 30, 2021		143,528	(30,038)	113,490	179,482	2,337	(266)	295,043
Ending balance (in shares) at Jun. 30, 2021	10,082
Beginning Balance at Mar. 31, 2021		141,321	(30,329)	110,992	179,911	2,377	579	293,859
Beginning Balance (in shares) at Mar. 31, 2021	9,968
Contribution of assets in exchange for the issuance of noncontrolling interest shares					890			890
Shares/units redeemed		(292)		(292)	(1,853)			(2,145)
Shares/units redeemed (in shares)	(15)
Dividends and distributions declared			(2,672)	(2,672)	(4,821)			(7,493)
Dividends reinvested - stock dividend		1,679		1,679				1,679
Dividends reinvested - stock dividend (in shares)	88
Issuance of shares under optional purchase plan		820		820				820
Issuance of shares under optional purchase plan (in shares)	41
Change in fair value of interest rate swaps							(845)	(845)
Net income			2,963	2,963	5,355	(40)		8,278
Ending balance at Jun. 30, 2021		$ 143,528	$ (30,038)	$ 113,490	$ 179,482	$ 2,337	$ (266)	$ 295,043
Ending balance (in shares) at Jun. 30, 2021	10,082

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
OPERATING ACTIVITIES
Net income	$ 14,114	$ 11,624
Adjustments to reconcile net income to net cash from operating activities
Gain on sale of real estate investments	(1,710)	(1,456)
Gain on involuntary conversion	(687)	(52)
Equity in loss (income) of unconsolidated affiliates	116	(238)
Distributions of earnings of unconsolidated affiliates	116	238
Allowance for uncollectible accounts receivable	377	40
Depreciation	10,439	9,755
Amortization	629	733
Amortization of debt issuance costs	262	301
Effects on operating cash flows due to changes in
Other assets	(4,574)	1,976
Tenant security deposits payable	278	361
Accrued expenses and other liabilities	(2,705)	(1,761)
NET CASH PROVIDED BY OPERATING ACTIVITIES	16,655	21,521
INVESTING ACTIVITIES
Purchase of real estate investment properties	(13,102)	(375)
Capital expenditures and tenant improvements	(8,705)	(15,437)
Proceeds from sale of real estate investments and non-real estate investments	5,590	5,483
Proceeds from involuntary conversion	3,109	774
Investment in unconsolidated affiliates	(2,090)	(501)
Distributions in excess of earnings received from unconsolidated affiliates		141
Notes receivable payments received	1,386
Notes receivable payments received		(763)
NET CASH USED IN INVESTING ACTIVITIES	(13,812)	(10,678)
FINANCING ACTIVITIES
Payments for financing, debt issuance	(358)	(228)
Payments on investment certificates and subordinated debt	(25)
Principal payments on special assessments payable		(290)
Proceeds from issuance of mortgage notes payable and subordinated debt	31,162	18,876
Principal payments on mortgage notes payable	(22,408)	(12,138)
Proceeds from issuance of shares under optional purchase plan	2,127	1,814
Shares/units redeemed	(3,550)	(2,485)
Dividends/distributions paid	(11,559)	(11,285)
NET CASH USED IN FINANCING ACTIVITIES	(4,611)	(5,736)
NET CHANGE IN CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSITS	(1,768)	5,107
CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSITS AT BEGINNING OF PERIOD	27,635	17,382
CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSITS AT END OF PERIOD	$ 25,867	$ 22,489

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS - Supplemental Disclosures - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSITS AT END OF PERIOD
Cash and cash equivalents	$ 11,529	$ 8,697
Restricted deposits	14,338	13,792
TOTAL CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSITS, END OF PERIOD	25,867	22,489
SCHEDULE OF CASH FLOW INFORMATION
Cash paid during the period for interest, net of capitalized interest	8,380	8,297
SUPPLEMENTARY SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Dividends reinvested	3,365	3,192
Dividends declared and not paid	2,672	2,544
UPREIT distributions declared and not paid	4,821	4,828
Acquisition of assets in exchange for the issuance of noncontrolling interest units in UPREIT	890	9,031
Increase in land improvements due to increase in special assessments payable	26	72
Unrealized gain (loss) on interest rate swaps	$ 1,539	(2,108)
Acquisition of assets with new financing		$ 3,225

ORGANIZATION

ORGANIZATION	6 Months Ended
ORGANIZATION	Jun. 30, 2021
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. Sterling previously established an operating partnership (“Sterling Properties, LLLP or the Operating Partnership”) 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, 2021 and December 31, 2020, Sterling owned approximately 35.66% and 35.03%, respectively, of the Operating Partnership.

PRINCIPAL ACTIVITY AND SIGNIFIC

PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES	Jun. 30, 2021
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, 2020, 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. 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, 2021. These adjustments are of a normal recurring nature. For a complete set of the Company’s significant accounting policies, refer to Note 2 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. 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. As of June 30, 2021, the Trust owned approximately 35.66% of the partnership interests (“OP Units”) of the Operating Partnership. The remaining OP Units, consisting exclusively of limited partner interests, are held by persons who contributed their interests in properties to the Operating Partnership in exchange for OP Units. Under the partnership agreement, these persons have the right to tender their OP Units for redemption to the Operating Partnership at any time following a specified restricted period for cash equal to the fair value of an equivalent number of common shares of the Trust. In lieu of delivering cash, however, the Trust, as the Operating Partnership’s general partner, may, at its option, choose to acquire any OP Units so tendered by issuing common shares in exchange for the tendered OP Units. If the Trust so chooses, its common shares will be exchanged for OP Units on a one-for-one basis. This one-for-one exchange ratio is subject to adjustment to prevent dilution. With each such exchange or redemption, the Trust’s percentage ownership in the Operating Partnership will increase. In addition, whenever the Trust issues common or other classes of its shares, it contributes the net proceeds it receives from the issuance to the Operating Partnership and the Operating Partnership issues to the Trust an equal number of OP Units or other partnership interests having preferences and rights that mirror the preferences and rights of the shares issued. This structure is commonly referred to as an umbrella partnership REIT or “UPREIT.” 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. The Trust will consolidate the operations of a joint venture if the Trust determines that it is either the primary beneficiary of a variable interest entity (VIE) or has substantial influence and control of the entity. In instances where the Trust determines that it is not the primary beneficiary of a VIE or the Trust does not control the joint venture but can exercise influence over the entity with respect to its operations and major decisions, the Trust will use the equity method of accounting. Under the equity method, the operations of a joint venture will not be consolidated with the Trust’s operations but instead its share of operations will be reflected as equity in earnings (loss) of unconsolidated entity on its consolidated statements of operations and comprehensive loss. Additionally, the Trust’s net investment in the joint venture will be reflected as investment in unconsolidated entity on the consolidated balance sheets. The Operating Partnership meets the criteria as a variable interest entity (“VIE”). The Trust’s sole significant asset is its investment in the Operating Partnership. As a result, substantially all of the Trust’s assets and liabilities represent those assets and liabilities of the Operating Partnership. All of the Trust’s debt is an obligation of the Operating Partnership, and the Trust guarantees the unsecured debt obligations of the Operating Partnership 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. Estimates and assumptions also affect 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) 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. 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 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. Based on evaluation, there were no impairment losses during the six months ended June 30, 2021 and 2020. 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. We follow FASB ASC Topic 740, Income Taxes, Revenue Recognition We record base rents on a straight-line basis. The monthly base rent income according to the terms of our leases is adjusted with the purpose that average monthly rent is recorded for each tenant over the term of its lease. The straight-line rent adjustment increased revenue by $87 and deceased revenue by $73 for the three months ended June 30, 2021 and 2020, respectively. The straight-line rent adjustment increased revenue by $192 and decreased revenue by $138 for the six months ended June 30, 2021 and 2020, respectively. The straight-line receivable balance included in receivables on the consolidated balance sheets as of June 30, 2021 and December 31, 2020 was $3,210 and $3,012, 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. 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.

SEGMENT REPORTING

SEGMENT REPORTING	6 Months Ended
SEGMENT REPORTING	Jun. 30, 2021
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. 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, 2021 and 2020, 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, 2021 Three months ended June 30, 2020 Residential Commercial Total Residential Commercial Total (in thousands) (in thousands) Income from rental operations $ 26,230 $ 5,693 $ 31,923 $ 24,381 $ 6,440 $ 30,821 Expenses from rental operations 13,363 1,691 15,054 12,560 1,540 14,100 Net operating income $ 12,867 $ 4,002 $ 16,869 $ 11,821 $ 4,900 $ 16,721 Depreciation and amortization 5,756 5,246 Interest 4,302 4,224 Administration of REIT 1,059 1,085 Other (income)/expense (2,526) (231) Net income $ 8,278 $ 6,397 Six months ended June 30, 2021 Six months ended June 30, 2020 Residential Commercial Total Residential Commercial Total (in thousands) (in thousands) Income from rental operations $ 52,190 $ 11,493 $ 63,683 $ 48,376 $ 12,351 $ 60,727 Expenses from rental operations 27,211 3,195 30,406 26,472 3,327 29,799 Net operating income $ 24,979 $ 8,298 $ 33,277 $ 21,904 $ 9,024 $ 30,928 Depreciation and amortization 11,083 10,498 Interest 8,589 8,574 Administration of REIT 2,260 2,247 Other income (2,769) (2,015) Net income $ 14,114 $ 11,624 Segment Assets and Accumulated Depreciation As of June 30, 2021 Residential Commercial Total (in thousands) Real estate investments $ 659,909 $ 202,757 $ 862,666 Accumulated depreciation (125,071) (43,901) (168,972) $ 534,838 $ 158,856 693,694 Cash and cash equivalents 11,529 Restricted deposits and funded reserves 14,338 Investment in unconsolidated affiliates 11,517 Notes receivable 640 Intangible assets, less accumulated amortization 6,796 Other assets, net 14,773 Total Assets $ 753,287 As of December 31, 2020 Residential Commercial Total (in thousands) Real estate investments $ 647,083 $ 198,205 $ 845,288 Accumulated depreciation (118,363) (42,212) (160,575) $ 528,720 $ 155,993 684,713 Cash and cash equivalents 11,716 Restricted deposits and funded reserves 15,919 Investment in unconsolidated affiliates 9,659 Notes receivable 2,026 Assets held for sale 831 Intangible assets, less accumulated amortization 7,367 Other assets, net 10,798 Total Assets $ 743,029

RESTRICTED DEPOSITS

RESTRICTED DEPOSITS	6 Months Ended
RESTRICTED DEPOSITS	Jun. 30, 2021
RESTRICTED DEPOSITS
RESTRICTED DEPOSITS	NOTE 4 – Restricted deposits As of June 30, As of December 31, 2021 2020 (in thousands) Tenant security deposits $ 4,931 $ 4,730 Real estate tax and insurance escrows 815 2,058 Replacement reserves 2,080 2,137 Other funded reserves 6,512 6,994 $ 14,338 $ 15,919 Included in restricted deposits are insurance proceeds of $1,754 that were received during the six months ended June 30, 2021, and are held in an escrow reserve account per the agreement set in place with various lenders. Funds will be released as construction costs related to the insurance claims are incurred.

INVESTMENT IN UNCONSOLIDATED AF

INVESTMENT IN UNCONSOLIDATED AFFILIATES	6 Months Ended
INVESTMENT IN UNCONSOLIDATED AFFILIATES	Jun. 30, 2021
INVESTMENT IN UNCONSOLIDATED AFFILIATES
INVESTMENT IN UNCONSOLIDATED AFFILIATES	NOTE 5 – Investment in unconsolidated affiliates Unconsolidated Affiliates Date Acquired Trust Ownership Interest Total Investment in Unconsolidated Affiliates Banner Building 2007 66.67% $ 59 Grand Forks INREIT, LLC 2003 50% 2,471 SE Savage, LLC 2019 60% 3,032 SE Maple Grove, LLC 2019 60% 2,914 SE Rogers, LLC 2020 60% 3,041 $ 11,517 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, 2021 and December 31, 2020 of $6,129 and $6,232, respectively. The Trust is jointly and severally liable for the full mortgage balance. The operating partnership is a 50% owner of Grand Forks Marketplace Retail Center as a tenant in common through 100% ownership in a limited liability company. Grand Forks Marketplace 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, 2021 and December 31, 2020 of $9,916 and $10,036, respectively. The Trust is jointly and severally liable for the full mortgage balance. The operating partnership owns a 60% interest in a limited liability company that is currently developing a 190-unit multifamily property. As of June 30, 2021, the operating partnership has contributed $2,077 in cash to SE Savage. SE Savage is located in Savage, Minnesota, with total assets of $35,893 and $27,015 as of June 30, 2021 and December 31, 2020, respectively. At it's current projection, the development is expected to be completed in the third quarter of 2021 and the current project budget approximates $38,083 of which $35,173 has been incurred as of June 30, 2021. The property is encumbered by a first mortgage with a balance at June 30, 2021 and December 31, 2020, of $26,210 and $19,436, respectively. The property is also encumbered by a second mortgage to Sterling Properties, LLLP with a balance at June 30, 2021 of $3,275. There was no balance outstanding related to the second mortgage at December 30, 2020. The Trust is jointly and severally liable for the full mortgage balance. The operating partnership owns a 60% interest in a limited liability company that is currently developing a 160-unit multifamily property. As of June 30, 2021, the operating partnership has contributed $2,975 in cash to SE Maple Grove. SE Maple Grove is located in Maple Grove, Minnesota, with total assets of $24,309 and $13,106 as of June 30, 2021 and December 31, 2020. At it's current projection, the development is expected to be completed in the second quarter of 2022 and the current project budget approximates $33,000 of which $22,346 has been incurred as of June 30, 2021. The property is encumbered by a first mortgage with a balance at June 30, 2021 and December 31, 2020 of $17,439 and $5,710, respectively. The Trust is jointly and severally liable for the full mortgage balance. The operating partnership owns a 60% interest in a limited liability company that is currently developing a 165-unit multifamily property. As of June 30, 2021, the operating partnership has contributed $3,089 in cash to SE Rogers. SE Rogers holds land located in Rogers, Minnesota, with total assets of $11,796 and $4,161 as of June 30, 2021 and December 31, 2020, respectively. At it's current projection, the development is expected in the second quarter of 2022 and the current project budget approximates $34,300 of which $9,700 has been incurred as of June 30, 2021. The property is encumbered by a first mortgage that has a balance at June 30, 2021 of $4,184. There was no balance outstanding related to the first mortgage at December 30, 2020. The Company is jointly and severally liable for the full mortgage balance. The following is a summary of the financial position of the unconsolidated affiliates at June 30, 2021 and December 31, 2020. June 30, 2021 December 31, 2020 (in thousands) ASSETS Real estate investments $ 102,720 $ 74,991 Accumulated depreciation (10,205) (9,692) 92,515 65,299 Cash and cash equivalents 409 249 Restricted deposits and funded reserves 350 384 Other assets, net 380 180 Total Assets $ 93,654 $ 66,112 LIABILITIES Mortgage notes payable, net $ 66,008 $ 41,405 Tenant security deposits payable 63 2 Accrued expenses and other liabilities 7,576 6,533 Total Liabilities $ 73,647 $ 47,940 SHAREHOLDERS' EQUITY Total Shareholders' Equity $ 20,007 $ 18,172 Total liabilities and shareholders' equity $ 93,654 $ 66,112 The following is a summary of results of operations of the unconsolidated affiliates for the three and six months ended June 30, 2021. Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) (in thousands) Income from rental operations $ 933 $ 678 $ 1,813 $ 1,641 Expenses from rental operations 348 173 582 432 Net operating income $ 585 $ 505 $ 1,231 $ 1,209 Depreciation and Amortization 266 171 513 342 Interest 464 235 881 479 Other Income - (25) - (25) Net (loss) income $ (145) $ 124 $ (163) $ 413

LEASE INTANGIBLES

LEASE INTANGIBLES	6 Months Ended
LEASE INTANGIBLES	Jun. 30, 2021
LEASE INTANGIBLES
LEASE INTANGIBLES	NOTE 6 - 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, 2021 Intangibles Amortization Intangibles, net Lease Intangible Assets (in thousands) In-place leases $ 16,140 $ (10,594) $ 5,546 Above-market leases 2,617 (1,367) 1,250 $ 18,757 $ (11,961) $ 6,796 Lease Intangible Liabilities Below-market leases $ (2,563) $ 1,662 $ (901) Lease Accumulated Lease As of December 31, 2020 Intangibles Amortization Intangibles, net Lease Intangible Assets (in thousands) In-place leases $ 19,768 $ (13,727) $ 6,041 Above-market leases 2,618 (1,292) 1,326 $ 22,386 $ (15,019) $ 7,367 Lease Intangible Liabilities Below-market leases $ (2,957) $ 1,963 $ (994) 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) 2021 (July 1, 2021 - December 31, 2021) $ 550 $ 91 2022 987 164 2023 849 151 2024 849 151 2025 849 151 Thereafter 2,712 193 $ 6,796 $ 901

LINES OF CREDIT

LINES OF CREDIT	6 Months Ended
LINES OF CREDIT	Jun. 30, 2021
LINES OF CREDIT
LINES OF CREDIT	NOTE 7 – LINES OF CREDIT We have a $4,915 variable rate (floating LIBOR plus 2.00%) line of credit agreement with Bremer Bank, which expires in June 2022 June 2022 Certain line of credit agreements include covenants that, in part, impose maintenance of certain debt service coverage and debt to net worth ratios on an annual and semi-annual basis.

MORTGAGE NOTES PAYABLE

MORTGAGE NOTES PAYABLE	6 Months Ended
MORTGAGE NOTES PAYABLE	Jun. 30, 2021
MORTGAGE NOTES PAYABLE
MORTGAGE NOTES PAYABLE	NOTE 8 - MORTGAGE NOTES PAYABLE The following table summarizes the Trust’s mortgage notes payable. Principal Balance At June 30, December 31, 2021 2020 (in thousands) Fixed rate mortgage notes payable (a) $ 424,575 $ 415,665 Variable rate mortgage notes payable 7,290 7,446 Mortgage notes payable 431,865 423,111 Less unamortized debt issuance costs 1,949 1,833 $ 429,916 $ 421,278 (a) Includes $43,202 and $43,613 of variable rate mortgage debt that was swapped to a fixed rate at June 30, 2021 and December 31, 2020, respectively. 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) 2021 (July 1, 2021 - December 31, 2021) $ 8,046 2022 27,270 2023 50,583 2024 19,591 2025 51,234 Thereafter 275,141 Total payments $ 431,865

DERIVATIVES AND HEDGING ACTIVIT

DERIVATIVES AND HEDGING ACTIVITIES	6 Months Ended
DERIVATIVES AND HEDGING ACTIVITIES	Jun. 30, 2021
DERIVATIVES AND HEDGING ACTIVITIES
DERIVATIVES AND HEDGING ACTIVITIES	NOTE 9 – 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, the Trust makes fixed rate payments over the life of the agreement without exchange of the underlying notional amount. As of June 30, 2021, the Trust used nine 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 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 twelve months, the Trust estimates that an additional $486 will be reclassified as an increase to interest expense. The following table summarizes the Trust’s interest rate swaps as of June 30, 2021, which effectively convert one month floating rate LIBOR to a fixed rate: Fixed Effective Date Notional Interest Rate Maturity Date November 1, 2019 $ 6,879 3.15% November 1, 2029 November 1, 2019 $ 4,780 3.28% November 1, 2029 January 10, 2020 $ 3,108 3.39% January 10, 2030 June 11, 2020 $ 1,558 3.07% June 15, 2030 June 11, 2020 $ 3,018 3.07% June 15, 2030 June 15, 2020 $ 1,688 2.94% June 15, 2030 June 15, 2020 $ 4,466 2.94% June 15, 2030 July 1, 2020 $ 4,905 2.79% June 10, 2030 December 2, 2020 $ 12,800 2.91% December 2, 2027 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, 2021 December 31, 2020 June 30, 2021 December 31, 2020 Interest rate swaps 9 9 $ 43,202 $ 43,613 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 10 to the consolidated financial statements. Derivatives Derivatives designated as June 30, 2021 December 31, 2020 cash flow hedges: Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest rate swaps Other assets, net $ 365 Other assets, net $ — Interest rate swaps Accrued expenses and other liabilities $ 631 Accrued expenses and other liabilities $ 1,805 The carrying amount of the swaps have been adjusted to their fair value at the end of the quarter. Because of changes in forecasted levels of LIBOR, a liability for the fair value of the future net payments forecasted under the swap was reported. 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, 2021and 2020: 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 Three Months Ended 2021 2021 Interest rate swaps $ (1,539) Interest expense $ 115 2020 2020 Interest rate swaps $ 2,108 Interest expense $ 10 Credit-risk-related Contingent Features The Trust has agreements with each of its derivative counterparties containing 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, 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, 2021, the termination value of derivatives in a liability position was $631. As of June 30, 2021, the Trust has pledged the properties related to the loans which are hedged as collateral .

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	6 Months Ended
FAIR VALUE MEASUREMENT	Jun. 30, 2021
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT	NOTE 10 - FAIR VALUE MEASUREMENT The following table presents the carrying value and estimated fair value of the Trust’s financial instruments: June 30, 2021 December 31, 2020 Carrying Carrying Value Fair Value Value Fair Value (in thousands) Financial assets: Notes receivable $ 640 $ 679 $ 2,026 $ 2,117 Derivative assets $ 365 $ 365 $ — $ — Financial liabilities: Mortgage notes payable $ 431,865 $ 454,918 $ 423,111 $ 443,100 Derivative liabilities $ 631 $ 631 $ 1,805 $ 1,805 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, 2021 Derivative assets $ — $ 365 $ — $ 365 Derivative liabilities $ — $ 631 $ — $ 631 December 31, 2020 Derivative liabilities $ — $ 1,805 $ — $ 1,805 Derivatives: The Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered any applicable credit enhancements. 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, 2021 Mortgage notes payable $ — $ — $ 454,918 $ 454,918 Notes receivable $ — $ — $ 679 $ 679 December 31, 2020 Mortgage notes payable $ — $ — $ 443,100 $ 443,100 Notes receivable $ — $ — $ 2,117 $ 2,117 Mortgage notes payable: Notes receivable:

LEASES

LEASES	6 Months Ended
LEASES	Jun. 30, 2021
LEASES
LEASES	NOTE 11 – LEASES As of June 30, 2021, we derived 82% of our revenues from residential leases that are generally for terms of one year or less. The residential leases may include lease income related items such 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, 2021, we derived 18% 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 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. The Trust’s leases contain lease and non-lease components for utility reimbursement from our residents. We have elected to combine lease and non-lease components for all asset classes. The combined components are included in real estate rental income in our consolidated financial statements and are accounted for under ASC 842. Lease income related to the Company’s operating leases is comprised of the following: Three months ended June 30, 2021 Residential Commercial Total (in thousands) Lease income related to fixed lease payments $ 25,141 $ 4,270 $ 29,411 Lease income related to variable lease payments — 1,200 1,200 Other (a) (214) (43) (257) Lease Income (b) $ 24,927 $ 5,427 $ 30,354 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 (a) For the three months ended June 30, 2021 and 2020, “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, 2021 and 2020 of $1,570 and $885, respectively, which is accounted for under the revenue recognition standard. Six months ended June 30, 2021 Residential Commercial Total (in thousands) Lease income related to fixed lease payments $ 49,975 $ 8,652 $ 58,627 Lease income related to variable lease payments — 2,294 2,294 Other (a) (350) 251 (99) Lease Income (b) $ 49,625 $ 11,197 $ 60,822 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 (a) For the six months ended June 30, 2021 and 2020, “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 six months ended June 30, 2021 and 2020 of $2,861 and $1,958, respectively, which is accounted for under the revenue recognition standard. As of June 30, 2021, non-cancelable commercial operating leases provide for future minimum rental income as follows. Residential leases are not included, as the terms are generally for one year or less. Years ending December 31, Amount (in thousands) 2021 (July 1, 2021 - December 31, 2021) $ 7,648 2022 14,629 2023 13,996 2024 13,352 2025 13,145 Thereafter 58,947 $ 121,717

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
RELATED PARTY TRANSACTIONS	Jun. 30, 2021
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 12 – RELATED PARTY TRANSACTIONS Effective January 1, 2021, Alloy Enterprises, Inc. was formed to act as the holding company for Sterling Management, LLC and GOLDMARK Property Management, Inc. In connection with this restructuring transaction, the owners of Alloy Enterprises, Inc. indirectly own Sterling Management, LLC and GOLDMARK Property Management, Inc. Alloy Enterprises, Inc. is owned in part by the Trust’s Chief Executive Officer and Trustee Mr. Kenneth P. Regan, by Trustee Mr. James S. Wieland, by President and CIO Joel Thomsen, and by the Chief Financial Officer and Treasurer Erica J. Chaffee. In addition, Mr. Regan serves as the Executive Chairman of the Advisor, and Messrs. Wieland, and Thomsen, and Ms. Chaffee serve on the Board of Governors of both the Advisor and GOLDMARK Property Management, Inc. Sterling Management, LLC, is a North Dakota limited liability company formed in November 2002. The Advisor is responsible for managing day-to-day affairs, overseeing capital projects and identifying, acquiring and disposing investments on behalf of the Trust. GOLDMARK Property Management, Inc., is a North Dakota corporation formed in 1981. GOLDMARK Property Management, Inc. performs property management services for the Trust. We have a historical and ongoing relationship with Bell Bank. Bell Bank has provided the Trust certain financial services throughout the relationship. Mr. Wieland, a Trustee, also serves as a Board Member of Bell Bank. Further, a family member of Erica J. Chaffee, our Chief Financial Officer, is an employee of Bell Bank. Both Mr. Wieland and Ms. Chaffee could have an indirect material interest in any such engagement and related transactions. Property Management Fees During the six months ended June 30, 2021 and 2020, we paid property management and administrative fees to GOLDMARK Property Management, Inc. of $6,226 and $6,411, respectively. Management fees which approximate 5% of net collected rents, account for $2,645 and $2,572 of these fees during the six months ended June 30, 2021 and 2020. In addition, during the six months ended June 30, 2021 and 2020, we paid repair and maintenance expenses, and payroll related expenses to GOLDMARK Property Management, Inc. totaling $2,973 and $3,082, respectively. 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 Advisor may receive fees related to management of the Trust, acquiring, disposing, or developing real estate property, project management fees, and financing fees related to lending relationships, 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 24, 2021, effective until March 31, 2022. Effective March 24, 2021, if the Advisor shares responsibility for providing Development Services with one or more third parties, Advisor’s set Development Fee shall be reduced by the fees charged by any such third parties; provided, such adjustment is subject to a 2.5% minimum Advisor’s Development Fee. Additionally, in cases where the Advisor is sharing responsibility for providing Development Services, the Development Fee shall be capped at 2.5% of $20,000,000 ($500,000). The below table summarizes the fees incurred and payable to our Advisor. Six months ended Due and Payable at June 30, 2021 June 30, 2020 June 30, 2021 December 31, 2020 Fee Fee Payable Payable (in thousands) Fee: Advisory $ 1,623 $ 1,538 $ 273 $ 278 Acquisition $ 135 $ 302 $ 135 $ - Disposition $ 146 $ 143 $ 124 $ 175 Financing $ 69 $ 61 $ - $ - Development $ - $ - $ 79 $ 79 Project Management $ 283 $ 76 $ 8 $ 51 Operating Partnership Units Issued in Connection with Acquisitions During the six months ended June 30, 2021, there were no operating partnership units issued directly or indirectly, to affiliated entities. 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. Commissions During the six months ended June 30, 2021 and 2020, we incurred real estate commissions of $278 and $324, to GOLDMARK Commercial Real Estate, Inc., in which Messrs. Regan and Wieland jointly own a controlling interest. As of June 30, 2021, we owed $28 in commissions to GOLDMARK Commercial Real Estate, Inc. As of December 31, 2020, there were no unpaid commissions to GOLDMARK Commercial Real Estate, Inc. Rental Income During the six months ended June 30, 2021 and 2020, we received rental income of $47 and $46, respectively, under an operating lease agreement with our Advisor. During the six months ended June 30, 2021 and 2020, we received rental income of $19 and $28, respectively, under an operating lease agreement with GOLDMARK Commercial Real Estate, Inc. During the six months ended June 30, 2021 and 2020, we received rental income of $154 and $130, respectively, under operating lease agreements with GOLDMARK Property Management, Inc. During the six months ended June 30, 2021 and 2020, we received rental income of $240 and $245, respectively, under operating lease agreements with Bell Bank. Other operational liabilities and receivables During the six months ended June 30, 2021 and 2020, the Trust incurred $174 and $0, respectively, for general costs related to business operations as well as capital expenditures related to construction in progress that were paid to related parties. As of June 30, 2021 and December 31, 2020, operational outstanding liabilities were $121 and $684, respectively. Debt Financing As of June 30, 2021 and December 31, 2020, the Trust had $67,454 and $51,915, respectively, of outstanding principal on loans entered into with Bell Bank. During the six months ended June 30, 2021 and 2020, the Trust incurred interest expense on debt held with Bell Bank of $1,224 and $1,026, respectively. Accrued interest as of June 30, 2021 and December 31, 2020, related to this debt was $143 and $121, respectively. Mezzanine Financing During the six months ended June 30, 2021, Sterling issued $3,275 in second mortgage financing to SE Savage. There was no outstanding receivable at December 31, 2020. Insurance Services On November 1, 2020, the Trust obtained a traditional insurance policy with Bell Insurance. The policy provides coverage for the Trust’s Commercial segment. As of June 30, 2021, total premiums incurred for this policy was $118. There was no such policy in place with Bell Bank as of June 30, 2020.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
COMMITMENTS AND CONTINGENCIES	Jun. 30, 2021
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 13 - 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. Several uncertainties continue to exist at this time, including but not limited to the uncertainty of additional state and/or federal stimulus and the effect of the recent surge in COVID-19 cases in many states. The Trust did not incur significant disruptions during the year ended December 31, 2020 , or during the six month period ending June 30, 2021 from the COVID-19 pandemic. The Trust continues to monitor state and federal legislative actions and efforts regarding the eviction moratorium which affects almost all single-family and multifamily rental housing units. The Trust has seen several tenants complete the sworn statement certifying the qualifications to obtain eviction protection. The Trust is monitoring the collection rates on these tenants and financial condition, results of operations and cash flows .

DISPOSITIONS

DISPOSITIONS	6 Months Ended
DISPOSITIONS	Jun. 30, 2021
DISPOSITIONS
DISPOSITIONS	NOTE 14 – DISPOSITIONS During the six months ended June 30, 2021, the Operating Partnership sold two properties. We sold a retail property located in Waite Park, Minnesota, for $900 and recognized a gain of $2 in April 2021. We sold a residential property located in Moorhead, Minnesota, for $4,950 and recognized a gain of $1,708 in June 2021. 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.

ACQUISITIONS

ACQUISITIONS	6 Months Ended
ACQUISITIONS	Jun. 30, 2021
ACQUISITIONS
ACQUISITIONS	NOTE 15 – ACQUISITIONS The Trust closed on the following asset acquisitions, during the six months ended June 30, 2021. Date Property Name Location Property Type Units/ Square Footage/ Acres Purchase Price 6/1/21 Flagstone Fargo, ND Apartment Complex 120 units $ 7,789 6/1/21 Brownstone Fargo, ND Apartment Complex 72 units 4,392 6/1/21 Briar Pointe Fargo, ND Apartment Complex 30 units 1,936 $ 14,117 Total consideration given for acquisitions through June 30, 2021 was completed through issuing approximately 45,000 limited partnership units of the operating partnership valued at $20.00 per unit for an aggregate consideration of approximately $890, assumed liabilities of $125, and cash of $13,102. 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 following table summarizes the fair values of the asset acquisitions, the Trust recorded in conjunction with the acquisitions discussed above, as of the acquisition date: Six Months Ended June 30, 2021 2020 Land, building, tenant improvements and FF&E $ 14,117 $ 12,896 Other liabilities (125) (265) Net assets acquired 13,992 12,631 Equity/limited partnership unit consideration (890) (9,031) New Loans - (3,225) Net cash consideration $ 13,102 $ 375

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
SUBSEQUENT EVENTS	Jun. 30, 2021
SUBSEQUENT EVENTS.
SUBSEQUENT EVENTS	NOTE 16 - SUBSEQUENT EVENTS On July 1, 2021 the Trust acquired two residential properties located in Fargo, North Dakota for a total purchase price of $24,532. On July 1, 2021, the Trust entered into a $26,600, 10 year 2.99% interest rate swap agreement. On July 15, 2021, we paid a dividend or distribution of $0.2650 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, 2021. On July 23, 2021, the Trust entered into a $10,605 , 5 year , 2.87% fixed rate lending agreement. On August 5, 2021, the Trust entered into a $1,148 , 3 year , 2.47% fixed rated lending agreement. 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, 2021
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, 2020, 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. 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, 2021. These adjustments are of a normal recurring nature. For a complete set of the Company’s significant accounting policies, refer to Note 2 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.
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. As of June 30, 2021, the Trust owned approximately 35.66% of the partnership interests (“OP Units”) of the Operating Partnership. The remaining OP Units, consisting exclusively of limited partner interests, are held by persons who contributed their interests in properties to the Operating Partnership in exchange for OP Units. Under the partnership agreement, these persons have the right to tender their OP Units for redemption to the Operating Partnership at any time following a specified restricted period for cash equal to the fair value of an equivalent number of common shares of the Trust. In lieu of delivering cash, however, the Trust, as the Operating Partnership’s general partner, may, at its option, choose to acquire any OP Units so tendered by issuing common shares in exchange for the tendered OP Units. If the Trust so chooses, its common shares will be exchanged for OP Units on a one-for-one basis. This one-for-one exchange ratio is subject to adjustment to prevent dilution. With each such exchange or redemption, the Trust’s percentage ownership in the Operating Partnership will increase. In addition, whenever the Trust issues common or other classes of its shares, it contributes the net proceeds it receives from the issuance to the Operating Partnership and the Operating Partnership issues to the Trust an equal number of OP Units or other partnership interests having preferences and rights that mirror the preferences and rights of the shares issued. This structure is commonly referred to as an umbrella partnership REIT or “UPREIT.” 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. The Trust will consolidate the operations of a joint venture if the Trust determines that it is either the primary beneficiary of a variable interest entity (VIE) or has substantial influence and control of the entity. In instances where the Trust determines that it is not the primary beneficiary of a VIE or the Trust does not control the joint venture but can exercise influence over the entity with respect to its operations and major decisions, the Trust will use the equity method of accounting. Under the equity method, the operations of a joint venture will not be consolidated with the Trust’s operations but instead its share of operations will be reflected as equity in earnings (loss) of unconsolidated entity on its consolidated statements of operations and comprehensive loss. Additionally, the Trust’s net investment in the joint venture will be reflected as investment in unconsolidated entity on the consolidated balance sheets. The Operating Partnership meets the criteria as a variable interest entity (“VIE”). The Trust’s sole significant asset is its investment in the Operating Partnership. As a result, substantially all of the Trust’s assets and liabilities represent those assets and liabilities of the Operating Partnership. All of the Trust’s debt is an obligation of the Operating Partnership, and the Trust guarantees the unsecured debt obligations of the Operating Partnership
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. Estimates and assumptions also affect 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) 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. 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 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. Based on evaluation, there were no impairment losses during the six months ended June 30, 2021 and 2020.
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. We follow FASB ASC Topic 740, Income Taxes,
Revenue Recognition	Revenue Recognition We record base rents on a straight-line basis. The monthly base rent income according to the terms of our leases is adjusted with the purpose that average monthly rent is recorded for each tenant over the term of its lease. The straight-line rent adjustment increased revenue by $87 and deceased revenue by $73 for the three months ended June 30, 2021 and 2020, respectively. The straight-line rent adjustment increased revenue by $192 and decreased revenue by $138 for the six months ended June 30, 2021 and 2020, respectively. The straight-line receivable balance included in receivables on the consolidated balance sheets as of June 30, 2021 and December 31, 2020 was $3,210 and $3,012, 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.
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.

PRINCIPAL ACTIVITY AND SIGNIF_3

PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2021
PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES
Summary of Estimated Useful Life	Buildings and improvements 40 years Furniture, fixtures and equipment 5

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	6 Months Ended
SEGMENT REPORTING (Tables)	Jun. 30, 2021
SEGMENT REPORTING
Summary of Segment Revenues and Net Operating Income	Three months ended June 30, 2021 Three months ended June 30, 2020 Residential Commercial Total Residential Commercial Total (in thousands) (in thousands) Income from rental operations $ 26,230 $ 5,693 $ 31,923 $ 24,381 $ 6,440 $ 30,821 Expenses from rental operations 13,363 1,691 15,054 12,560 1,540 14,100 Net operating income $ 12,867 $ 4,002 $ 16,869 $ 11,821 $ 4,900 $ 16,721 Depreciation and amortization 5,756 5,246 Interest 4,302 4,224 Administration of REIT 1,059 1,085 Other (income)/expense (2,526) (231) Net income $ 8,278 $ 6,397 Six months ended June 30, 2021 Six months ended June 30, 2020 Residential Commercial Total Residential Commercial Total (in thousands) (in thousands) Income from rental operations $ 52,190 $ 11,493 $ 63,683 $ 48,376 $ 12,351 $ 60,727 Expenses from rental operations 27,211 3,195 30,406 26,472 3,327 29,799 Net operating income $ 24,979 $ 8,298 $ 33,277 $ 21,904 $ 9,024 $ 30,928 Depreciation and amortization 11,083 10,498 Interest 8,589 8,574 Administration of REIT 2,260 2,247 Other income (2,769) (2,015) Net income $ 14,114 $ 11,624
Summary of Segment Assets and Accumulated Depreciation	As of June 30, 2021 Residential Commercial Total (in thousands) Real estate investments $ 659,909 $ 202,757 $ 862,666 Accumulated depreciation (125,071) (43,901) (168,972) $ 534,838 $ 158,856 693,694 Cash and cash equivalents 11,529 Restricted deposits and funded reserves 14,338 Investment in unconsolidated affiliates 11,517 Notes receivable 640 Intangible assets, less accumulated amortization 6,796 Other assets, net 14,773 Total Assets $ 753,287 As of December 31, 2020 Residential Commercial Total (in thousands) Real estate investments $ 647,083 $ 198,205 $ 845,288 Accumulated depreciation (118,363) (42,212) (160,575) $ 528,720 $ 155,993 684,713 Cash and cash equivalents 11,716 Restricted deposits and funded reserves 15,919 Investment in unconsolidated affiliates 9,659 Notes receivable 2,026 Assets held for sale 831 Intangible assets, less accumulated amortization 7,367 Other assets, net 10,798 Total Assets $ 743,029

RESTRICTED DEPOSITS (Tables)

RESTRICTED DEPOSITS (Tables)	6 Months Ended
RESTRICTED DEPOSITS (Tables)	Jun. 30, 2021
RESTRICTED DEPOSITS
Schedule of restricted deposits	As of June 30, As of December 31, 2021 2020 (in thousands) Tenant security deposits $ 4,931 $ 4,730 Real estate tax and insurance escrows 815 2,058 Replacement reserves 2,080 2,137 Other funded reserves 6,512 6,994 $ 14,338 $ 15,919

INVESTMENT IN UNCONSOLIDATED _2

INVESTMENT IN UNCONSOLIDATED AFFILIATES (Tables)	6 Months Ended
INVESTMENT IN UNCONSOLIDATED AFFILIATES (Tables)	Jun. 30, 2021
INVESTMENT IN UNCONSOLIDATED AFFILIATES
Schedule of investments in unconsolidated real estate ventures	Unconsolidated Affiliates Date Acquired Trust Ownership Interest Total Investment in Unconsolidated Affiliates Banner Building 2007 66.67% $ 59 Grand Forks INREIT, LLC 2003 50% 2,471 SE Savage, LLC 2019 60% 3,032 SE Maple Grove, LLC 2019 60% 2,914 SE Rogers, LLC 2020 60% 3,041 $ 11,517
Schedule of financial information of unconsolidated entities	The following is a summary of the financial position of the unconsolidated affiliates at June 30, 2021 and December 31, 2020. June 30, 2021 December 31, 2020 (in thousands) ASSETS Real estate investments $ 102,720 $ 74,991 Accumulated depreciation (10,205) (9,692) 92,515 65,299 Cash and cash equivalents 409 249 Restricted deposits and funded reserves 350 384 Other assets, net 380 180 Total Assets $ 93,654 $ 66,112 LIABILITIES Mortgage notes payable, net $ 66,008 $ 41,405 Tenant security deposits payable 63 2 Accrued expenses and other liabilities 7,576 6,533 Total Liabilities $ 73,647 $ 47,940 SHAREHOLDERS' EQUITY Total Shareholders' Equity $ 20,007 $ 18,172 Total liabilities and shareholders' equity $ 93,654 $ 66,112 The following is a summary of results of operations of the unconsolidated affiliates for the three and six months ended June 30, 2021. Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) (in thousands) Income from rental operations $ 933 $ 678 $ 1,813 $ 1,641 Expenses from rental operations 348 173 582 432 Net operating income $ 585 $ 505 $ 1,231 $ 1,209 Depreciation and Amortization 266 171 513 342 Interest 464 235 881 479 Other Income - (25) - (25) Net (loss) income $ (145) $ 124 $ (163) $ 413

LEASE INTANGIBLES (Tables)

LEASE INTANGIBLES (Tables)	6 Months Ended
LEASE INTANGIBLES (Tables)	Jun. 30, 2021
LEASE INTANGIBLES
Schedule of Intangible Assets, Liabilities and Accumulated Amortization	Lease Accumulated Lease As of June 30, 2021 Intangibles Amortization Intangibles, net Lease Intangible Assets (in thousands) In-place leases $ 16,140 $ (10,594) $ 5,546 Above-market leases 2,617 (1,367) 1,250 $ 18,757 $ (11,961) $ 6,796 Lease Intangible Liabilities Below-market leases $ (2,563) $ 1,662 $ (901) Lease Accumulated Lease As of December 31, 2020 Intangibles Amortization Intangibles, net Lease Intangible Assets (in thousands) In-place leases $ 19,768 $ (13,727) $ 6,041 Above-market leases 2,618 (1,292) 1,326 $ 22,386 $ (15,019) $ 7,367 Lease Intangible Liabilities Below-market leases $ (2,957) $ 1,963 $ (994)
Schedule of Estimated Aggregate Amortization Expense	Intangible Intangible Years ending December 31, Assets Liabilities (in thousands) 2021 (July 1, 2021 - December 31, 2021) $ 550 $ 91 2022 987 164 2023 849 151 2024 849 151 2025 849 151 Thereafter 2,712 193 $ 6,796 $ 901

MORTGAGE NOTES PAYABLE (Tables)

MORTGAGE NOTES PAYABLE (Tables)	6 Months Ended
MORTGAGE NOTES PAYABLE (Tables)	Jun. 30, 2021
MORTGAGE NOTES PAYABLE
Schedule of Mortgage Notes Payable	Principal Balance At June 30, December 31, 2021 2020 (in thousands) Fixed rate mortgage notes payable (a) $ 424,575 $ 415,665 Variable rate mortgage notes payable 7,290 7,446 Mortgage notes payable 431,865 423,111 Less unamortized debt issuance costs 1,949 1,833 $ 429,916 $ 421,278 (a) Includes $43,202 and $43,613 of variable rate mortgage debt that was swapped to a fixed rate at June 30, 2021 and December 31, 2020, respectively.
Scheduled Maturities of Mortgage Notes Payable	Years ending December 31, Amount (in thousands) 2021 (July 1, 2021 - December 31, 2021) $ 8,046 2022 27,270 2023 50,583 2024 19,591 2025 51,234 Thereafter 275,141 Total payments $ 431,865

DERIVATIVES AND HEDGING ACTIV_2

DERIVATIVES AND HEDGING ACTIVITIES (Tables)	6 Months Ended
DERIVATIVES AND HEDGING ACTIVITIES (Tables)	Jun. 30, 2021
DERIVATIVES AND HEDGING ACTIVITIES
Schedule of interest rate swaps	The following table summarizes the Trust’s interest rate swaps as of June 30, 2021, which effectively convert one month floating rate LIBOR to a fixed rate: Fixed Effective Date Notional Interest Rate Maturity Date November 1, 2019 $ 6,879 3.15% November 1, 2029 November 1, 2019 $ 4,780 3.28% November 1, 2029 January 10, 2020 $ 3,108 3.39% January 10, 2030 June 11, 2020 $ 1,558 3.07% June 15, 2030 June 11, 2020 $ 3,018 3.07% June 15, 2030 June 15, 2020 $ 1,688 2.94% June 15, 2030 June 15, 2020 $ 4,466 2.94% June 15, 2030 July 1, 2020 $ 4,905 2.79% June 10, 2030 December 2, 2020 $ 12,800 2.91% December 2, 2027 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, 2021 December 31, 2020 June 30, 2021 December 31, 2020 Interest rate swaps 9 9 $ 43,202 $ 43,613
Schedule of the estimated fair value of derivatives	Derivatives Derivatives designated as June 30, 2021 December 31, 2020 cash flow hedges: Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest rate swaps Other assets, net $ 365 Other assets, net $ — Interest rate swaps Accrued expenses and other liabilities $ 631 Accrued expenses and other liabilities $ 1,805
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 Three Months Ended 2021 2021 Interest rate swaps $ (1,539) Interest expense $ 115 2020 2020 Interest rate swaps $ 2,108 Interest expense $ 10

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	6 Months Ended
FAIR VALUE MEASUREMENT (Tables)	Jun. 30, 2021
FAIR VALUE MEASUREMENT
Carrying Value and Estimated Fair Value of Company's Financial Instruments	June 30, 2021 December 31, 2020 Carrying Carrying Value Fair Value Value Fair Value (in thousands) Financial assets: Notes receivable $ 640 $ 679 $ 2,026 $ 2,117 Derivative assets $ 365 $ 365 $ — $ — Financial liabilities: Mortgage notes payable $ 431,865 $ 454,918 $ 423,111 $ 443,100 Derivative liabilities $ 631 $ 631 $ 1,805 $ 1,805
Schedule of Fair Value of Liabilities on Recurring Basis	Level 1 Level 2 Level 3 Total (in thousands) June 30, 2021 Derivative assets $ — $ 365 $ — $ 365 Derivative liabilities $ — $ 631 $ — $ 631 December 31, 2020 Derivative liabilities $ — $ 1,805 $ — $ 1,805
Fair Value of Company's Financial Assets and Liabilities	Level 1 Level 2 Level 3 Total (in thousands) June 30, 2021 Mortgage notes payable $ — $ — $ 454,918 $ 454,918 Notes receivable $ — $ — $ 679 $ 679 December 31, 2020 Mortgage notes payable $ — $ — $ 443,100 $ 443,100 Notes receivable $ — $ — $ 2,117 $ 2,117

LEASES (Tables)

LEASES (Tables)	6 Months Ended
LEASES (Tables)	Jun. 30, 2021
LEASES
Schedule of Lease Income related to the Trust's Operating Leases	Lease income related to the Company’s operating leases is comprised of the following: Three months ended June 30, 2021 Residential Commercial Total (in thousands) Lease income related to fixed lease payments $ 25,141 $ 4,270 $ 29,411 Lease income related to variable lease payments — 1,200 1,200 Other (a) (214) (43) (257) Lease Income (b) $ 24,927 $ 5,427 $ 30,354 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 (a) For the three months ended June 30, 2021 and 2020, “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, 2021 and 2020 of $1,570 and $885, respectively, which is accounted for under the revenue recognition standard. Six months ended June 30, 2021 Residential Commercial Total (in thousands) Lease income related to fixed lease payments $ 49,975 $ 8,652 $ 58,627 Lease income related to variable lease payments — 2,294 2,294 Other (a) (350) 251 (99) Lease Income (b) $ 49,625 $ 11,197 $ 60,822 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 (a) For the six months ended June 30, 2021 and 2020, “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 six months ended June 30, 2021 and 2020 of $2,861 and $1,958, respectively, which is accounted for under the revenue recognition standard.
Schedule of Future Minimum Rental Income	Years ending December 31, Amount (in thousands) 2021 (July 1, 2021 - December 31, 2021) $ 7,648 2022 14,629 2023 13,996 2024 13,352 2025 13,145 Thereafter 58,947 $ 121,717

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
RELATED PARTY TRANSACTIONS (Tables)	Jun. 30, 2021
RELATED PARTY TRANSACTIONS
Schedule of fees incurred and payable to Advisor	Six months ended Due and Payable at June 30, 2021 June 30, 2020 June 30, 2021 December 31, 2020 Fee Fee Payable Payable (in thousands) Fee: Advisory $ 1,623 $ 1,538 $ 273 $ 278 Acquisition $ 135 $ 302 $ 135 $ - Disposition $ 146 $ 143 $ 124 $ 175 Financing $ 69 $ 61 $ - $ - Development $ - $ - $ 79 $ 79 Project Management $ 283 $ 76 $ 8 $ 51

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	6 Months Ended
ACQUISITIONS (Tables)	Jun. 30, 2021
ACQUISITIONS
Schedule of acquisitions	Date Property Name Location Property Type Units/ Square Footage/ Acres Purchase Price 6/1/21 Flagstone Fargo, ND Apartment Complex 120 units $ 7,789 6/1/21 Brownstone Fargo, ND Apartment Complex 72 units 4,392 6/1/21 Briar Pointe Fargo, ND Apartment Complex 30 units 1,936 $ 14,117
Schedule of acquisition date fair values, before prorations recorded in conjunction with acquisitions	Six Months Ended June 30, 2021 2020 Land, building, tenant improvements and FF&E $ 14,117 $ 12,896 Other liabilities (125) (265) Net assets acquired 13,992 12,631 Equity/limited partnership unit consideration (890) (9,031) New Loans - (3,225) Net cash consideration $ 13,102 $ 375

Organization - Additional Infor

Organization - Additional Information (Details)	Jun. 30, 2021	Dec. 31, 2020
ORGANIZATION
Ownership in operating partnership (as a percent)	35.66%	35.03%

Principal Activity and Signif_4

Principal Activity and Significant Accounting Policies - Principles of Consolidation (Details)	Jun. 30, 2021	Dec. 31, 2020
PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES
Ownership in operating partnership (as a percent)	35.66%	35.03%

Principal Activity and Signif_5

Principal Activity and Significant Accounting Policies - Real Estate Investments (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Real Estate Investments
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

Principal Activity and Signif_6

Principal Activity and Significant Accounting Policies - Federal Income Taxes (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021USD ($)
PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES
Taxable income to be distributed	90.00%
Retainable taxable income	10.00%
Provisions or liabilities for income taxes	$ 0

Principal Activity and Signif_7

Principal Activity and Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Revenue Recognition
Decrease/(Increase) in revenue due to straight - line adjustment	$ 87	$ (73)	$ 192	$ (138)
Straight - line receivable	$ 3,210		$ 3,210		$ 3,012

Segment Reporting - Additional

Segment Reporting - Additional Information (Details)	6 Months Ended
Segment Reporting - Additional Information (Details)	Jun. 30, 2021segment
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, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
SEGMENT REPORTING
Income from rental operations	$ 31,923		$ 30,821		$ 63,683	$ 60,727
Expenses from rental operations	15,054		14,100		30,406	29,799
Net operating income	16,869		16,721		33,277	30,928
Depreciation and amortization	5,756		5,246		11,083	10,498
Interest	4,302		4,224		8,589	8,574
Administration of REIT	1,059		1,085		2,260	2,247
Other (income)/expense	(2,526)		(231)		(2,769)	(2,015)
Net income	8,278	$ 5,836	6,397	$ 5,227	14,114	11,624
Residential
SEGMENT REPORTING
Income from rental operations	26,230		24,381		52,190	48,376
Expenses from rental operations	13,363		12,560		27,211	26,472
Net operating income	12,867		11,821		24,979	21,904
Commercial
SEGMENT REPORTING
Income from rental operations	5,693		6,440		11,493	12,351
Expenses from rental operations	1,691		1,540		3,195	3,327
Net operating income	$ 4,002		$ 4,900		$ 8,298	$ 9,024

Segment Reporting - Summary o_2

Segment Reporting - Summary of Segment Assets and Accumulated Depreciation (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
SEGMENT REPORTING
Real estate investments	$ 862,666	$ 845,288
Accumulated depreciation	(168,972)	(160,575)
Real estate investments, net	693,694	684,713
Cash and cash equivalents	11,529	11,716	$ 8,697
Restricted deposits and funded reserves	14,338	15,919	$ 13,792
Investment in unconsolidated affiliates	11,517	9,659
Notes receivable	640	2,026
Assets held for sale		831
Intangible assets, less accumulated amortization	6,796	7,367
Other assets, net	14,773	10,798
Total Assets	753,287	743,029
Residential
SEGMENT REPORTING
Real estate investments	659,909	647,083
Accumulated depreciation	(125,071)	(118,363)
Real estate investments, net	534,838	528,720
Commercial
SEGMENT REPORTING
Real estate investments	202,757	198,205
Accumulated depreciation	(43,901)	(42,212)
Real estate investments, net	$ 158,856	$ 155,993

Restricted Deposits - Summary o

Restricted Deposits - Summary of Restricted Deposits and Funded Reserves (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
RESTRICTED DEPOSITS
Tenant security deposits	$ 4,931	$ 4,730
Real estate tax and insurance escrows	815	2,058
Replacement reserves	2,080	2,137
Other funded reserves	6,512	6,994
Restricted deposits , Total	$ 14,338	$ 15,919	$ 13,792

Restricted Deposits - Additiona

Restricted Deposits - Additional Information (Details) $ in Thousands	Jun. 30, 2021USD ($)
RESTRICTED DEPOSITS
Insurance proceeds held in escrow	$ 1,754

Investment in Unconsolidated _3

Investment in Unconsolidated Affiliates - Total investments (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]
Investment in unconsolidated affiliates	$ 11,517	$ 9,659
Banner Building
Schedule of Equity Method Investments [Line Items]
Investment in unconsolidated affiliates	59
Grand Forks Market Place Retail Center
Schedule of Equity Method Investments [Line Items]
Investment in unconsolidated affiliates	2,471
SE Savage, LLC
Schedule of Equity Method Investments [Line Items]
Investment in unconsolidated affiliates	3,032
SE Maple Grove, LLC
Schedule of Equity Method Investments [Line Items]
Investment in unconsolidated affiliates	2,914
SE Rogers
Schedule of Equity Method Investments [Line Items]
Investment in unconsolidated affiliates	$ 3,041
Operating Partnership \| Banner Building
Schedule of Equity Method Investments [Line Items]
Ownership interest (as a percent)	66.67%
Operating Partnership \| Grand Forks Market Place Retail Center
Schedule of Equity Method Investments [Line Items]
Ownership interest (as a percent)	50.00%
Operating Partnership \| SE Savage, LLC
Schedule of Equity Method Investments [Line Items]
Ownership interest (as a percent)	60.00%
Operating Partnership \| SE Maple Grove, LLC
Schedule of Equity Method Investments [Line Items]
Ownership interest (as a percent)	60.00%
Operating Partnership \| SE Rogers
Schedule of Equity Method Investments [Line Items]
Ownership interest (as a percent)	60.00%

Investment in Unconsolidated _4

Investment in Unconsolidated Affiliates - Additional Information (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021USD ($)ft²property	Dec. 31, 2020USD ($)
Schedule of Equity Method Investments [Line Items]
Assets	$ 753,287	$ 743,029
SE Savage, LLC
Schedule of Equity Method Investments [Line Items]
Assets	35,893	27,015
SE Maple Grove, LLC
Schedule of Equity Method Investments [Line Items]
Assets	24,309	13,106
SE Rogers
Schedule of Equity Method Investments [Line Items]
Assets	$ 11,796	4,161
Operating Partnership \| Grand Forks Market Place Retail Center
Schedule of Equity Method Investments [Line Items]
Ownership interest (as a percent)	50.00%
Percentage of interest	100.00%
Area of commercial property \| ft²	183,000
Mortgage carrying amount	$ 9,916	10,036
Operating Partnership \| Banner Building
Schedule of Equity Method Investments [Line Items]
Ownership interest (as a percent)	66.67%
Area of commercial property \| ft²	75,000
Mortgage carrying amount	$ 6,129	6,232
Operating Partnership \| SE Savage, LLC
Schedule of Equity Method Investments [Line Items]
Ownership interest (as a percent)	60.00%
Number of units \| property	190
Cash contribution	$ 2,077
Development project budget	38,083
Development project cost incurred	35,173
Mortgage balance	$ 26,210	19,436
Operating Partnership \| SE Maple Grove, LLC
Schedule of Equity Method Investments [Line Items]
Ownership interest (as a percent)	60.00%
Number of units \| ft²	160
Cash contribution	$ 2,975
Development project budget	33,000
Development project cost incurred	22,346
Mortgage balance	$ 17,439	5,710
Operating Partnership \| SE Rogers
Schedule of Equity Method Investments [Line Items]
Ownership interest (as a percent)	60.00%
Number of units \| ft²	165
Cash contribution	$ 3,089
Development project budget	34,300
Development project cost incurred	9,700
Mortgage balance	4,184	0
Operating Partnership \| Sterling Properties LLLP
Schedule of Equity Method Investments [Line Items]
Mortgage balance	$ 3,275	$ 0

Investment in Unconsolidated _5

Investment in Unconsolidated Affiliates - Summary of financial position (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
ASSETS
Real estate investments	$ 862,666		$ 845,288
Accumulated depreciation	(168,972)		(160,575)
Real estate investments, net	693,694		684,713
Cash and cash equivalents	11,529		11,716	$ 8,697
Restricted deposits and funded reserves	14,338		15,919	13,792
Other assets, net	14,773		10,798
Total Assets	753,287		743,029
LIABILITIES
Mortgage notes payable, net	429,916		421,278
Tenant security deposits payable	5,154		4,908
Accrued expenses and other liabilities	14,780		16,869
Total Liabilities	458,244		451,501
SHAREHOLDERS' EQUITY
Total Shareholders' Equity	295,043	$ 293,859	291,528	$ 285,385	$ 286,011	$ 279,047
Total liabilities and shareholders' equity	753,287		743,029
Unconsolidated Affiliates
ASSETS
Real estate investments	102,720		74,991
Accumulated depreciation	(10,205)		(9,692)
Real estate investments, net	92,515		65,299
Cash and cash equivalents	409		249
Restricted deposits and funded reserves	350		384
Other assets, net	380		180
Total Assets	93,654		66,112
LIABILITIES
Mortgage notes payable, net	66,008		41,405
Tenant security deposits payable	63		2
Accrued expenses and other liabilities	7,576		6,533
Total Liabilities	73,647		47,940
SHAREHOLDERS' EQUITY
Total Shareholders' Equity	20,007		18,172
Total liabilities and shareholders' equity	$ 93,654		$ 66,112

Investment in Unconsolidated _6

Investment in Unconsolidated Affiliates - Summary of results of operations (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Schedule of Equity Method Investments [Line Items]
Income from rental operations	$ 31,923		$ 30,821		$ 63,683	$ 60,727
Expenses from rental operations	25,112		23,570		50,078	48,871
Net operating income	5,752		6,166		11,345	9,609
Depreciation and amortization	5,756		5,246		11,083	10,498
Interest	4,302		4,224		8,589	8,574
Other Income	218		150		488	269
Net income	8,278	$ 5,836	6,397	$ 5,227	14,114	11,624
Unconsolidated Affiliates
Schedule of Equity Method Investments [Line Items]
Income from rental operations	933		678		1,813	1,641
Expenses from rental operations	348		173		582	432
Net operating income	585		505		1,231	1,209
Depreciation and amortization	266		171		513	342
Interest	464		235		881	479
Other Income			(25)			(25)
Net income	$ (145)		$ 124		$ (163)	$ 413

Lease Intangibles - Schedule of

Lease Intangibles - Schedule of Intangible Assets and Liabilities and Accumulated Amortization (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Intangible Assets
Lease Intangibles	$ 18,757		$ 22,386
Accumulated Amortization	(11,961)		(15,019)
Total	6,796		7,367
Amortization of Intangible Assets	629	$ 733
Intangible Liabilities
Below-market lease	(2,563)		(2,957)
Below-market lease, accumulated amortization	1,662		1,963
Below-market lease, net	(901)		(994)
In-place leases
Intangible Assets
Lease Intangibles	16,140		19,768
Accumulated Amortization	(10,594)		(13,727)
Total	5,546		6,041
Above-market leases
Intangible Assets
Lease Intangibles	2,617		2,618
Accumulated Amortization	(1,367)		(1,292)
Total	$ 1,250		$ 1,326

Lease Intangibles - Schedule _2

Lease Intangibles - Schedule of Estimated Aggregate Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Intangible Assets
2021 (July 1, 2021 - December 31, 2021)	$ 550
2022	987
2023	849
2024	849
2025	849
Thereafter	2,712
Total	6,796	$ 7,367
Intangible Liabilities
2021 (July 1, 2021 - December 31, 2021)	91
2022	164
2023	151
2024	151
2025	151
Thereafter	193
Total	$ 901	$ 994

Lines of Credit - Additional In

Lines of Credit - Additional Information (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021USD ($)item	Dec. 31, 2020USD ($)
Bremer Bank
Lines of Credit
Number of letters of credit secured \| item	2
Letters of credit total	$ 746
Unused line of credit	9,169
Line of credit outstanding	0	$ 0
Bremer Bank Agreement One
Lines of Credit
Agreed line of credit	$ 4,915
Expiration date	Jun. 1, 2022
Bremer Bank Agreement One \| Floating LIBOR
Lines of Credit
Variable interest rate of line of credit	2.00%
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%

Mortgage Notes Payable - Summar

Mortgage Notes Payable - Summary (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
MORTGAGE NOTES PAYABLE
Long-term debt, gross	$ 431,865
Mortgage Notes Payable
MORTGAGE NOTES PAYABLE
Long-term debt, gross	431,865	$ 423,111
Less unamortized debt issuance costs	1,949	1,833
Long-term debt, net	429,916	421,278
Fixed rate mortgage notes payable
MORTGAGE NOTES PAYABLE
Long-term debt, gross	424,575	415,665
Fixed rate mortgage notes payable \| Mortgage Notes Payable
MORTGAGE NOTES PAYABLE
Debt swapped from variable to fixed rate	43,202	43,613
Variable rate mortgage notes payable
MORTGAGE NOTES PAYABLE
Long-term debt, gross	$ 7,290	$ 7,446

Mortgage Notes Payable - Schedu

Mortgage Notes Payable - Scheduled Maturities of Mortgage Notes Payable (Details) $ in Thousands	Jun. 30, 2021USD ($)
MORTGAGE NOTES PAYABLE
2021 (July 1, 2021 - December 31, 2021)	$ 8,046
2022	27,270
2023	50,583
2024	19,591
2025	51,234
Thereafter	275,141
Total payments	$ 431,865

Derivatives and Hedging Activ_3

Derivatives and Hedging Activities - Other (Details) - Interest rate swaps $ in Thousands	Jun. 30, 2021USD ($)instrument	Dec. 31, 2020instrument
Derivatives and Hedging Activities
Estimated amount to be reclassified over the next 12 months, as a increase to interest expense \| $	$ 486
Designated as Hedging Instrument \| Cash Flow Hedging
Derivatives and Hedging Activities
Number of instruments \| instrument	9	9

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, 2021USD ($)instrument	Dec. 31, 2020USD ($)instrument
Interest rate swaps
Derivatives and Hedging Activities
Notional amount	$ 43,202	$ 43,613
Number of instruments \| instrument	9	9
Interest Rate Swap, November 2029
Derivatives and Hedging Activities
Notional amount	$ 6,879
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	$ 4,780
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	$ 3,108
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	$ 1,558
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	$ 3,018
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	$ 1,688
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	$ 4,466
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	$ 4,905
Fixed interest rate (as a percent)	2.79%
Derivative maturity date	Jun. 10, 2030
Interest Rate Swap, December 2027
Derivatives and Hedging Activities
Notional amount	$ 12,800
Fixed interest rate (as a percent)	2.91%
Derivative maturity date	Dec. 2, 2027

Derivatives and Hedging Activ_5

Derivatives and Hedging Activities - Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Other assets, net
Derivatives and Hedging Activities
Fair value, derivative assets	$ 365
Accrued expenses and other liabilities
Derivatives and Hedging Activities
Fair value, derivative liabilities	$ 631	$ 1,805

Derivatives and Hedging Activ_6

Derivatives and Hedging Activities - Gain/Loss (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Derivatives and Hedging Activities
Amount of (Gain)/Loss Recognized in Other Comprehensive Income on Derivatives	$ 845	$ (2,384)	$ 622	$ 1,486	$ (1,539)	$ 2,109
Interest expense
Derivatives and Hedging Activities
Amount of (Gain)/Loss Reclassified from AOCI into income					115	10
Interest rate swaps
Derivatives and Hedging Activities
Amount of (Gain)/Loss Recognized in Other Comprehensive Income on Derivatives					$ (1,539)	$ 2,108

Derivatives and Hedging Activ_7

Derivatives and Hedging Activities - Credit-Risk Related Contingent Features (Details) $ in Thousands	Jun. 30, 2021USD ($)
Credit-risk-related Contingent Features
Termination value of interest rate derivatives in liability position	$ 631

Fair Value Measurement - Carryi

Fair Value Measurement - Carrying Value and Estimated Fair Value of Company's Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Carrying Value
Financial assets:
Note receivable	$ 640	$ 2,026
Derivative assets	365
Financial liabilities:
Mortgage notes payable	431,865	423,111
Derivative liabilities	631	1,805
Fair Value
Financial assets:
Note receivable	679	2,117
Derivative assets	365
Financial liabilities:
Mortgage notes payable	454,918	443,100
Derivative liabilities	$ 631	$ 1,805

Fair Value Measurement - Schedu

Fair Value Measurement - Schedule of Fair Value of Assets on Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair Value Measurements
Derivative assets	$ 365
Derivative liabilities	631	$ 1,805
Level 2
Fair Value Measurements
Derivative assets	365
Derivative liabilities	$ 631	$ 1,805

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, 2021	Dec. 31, 2020
Fair Value Measurements
Mortgage notes payable, net	$ 454,918	$ 443,100
Note receivable	679	2,117
Level 3
Fair Value Measurements
Mortgage notes payable, net	454,918	443,100
Note receivable	$ 679	$ 2,117

Fair Value Measurement - Additi

Fair Value Measurement - Additional Information (Details) - Measurement Input, Discount Rate	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Minimum
Fair Value Disclosures
Discount rates used to estimate fair value of mortgages and notes payable	0.0300	0.0325
Receivables, measurement input	0.0300	0.0325
Maximum
Fair Value Disclosures
Discount rates used to estimate fair value of mortgages and notes payable	0.0310	0.0335
Receivables, measurement input	0.0310	0.0335

Leases - Other (Details)

Leases - Other (Details)	Jun. 30, 2021
Residential
Revenue from leases
Percentage of revenue from leases that are generally for terms of one year or less	82.00%
Commercial
Revenue from leases
Percentage of revenue from leases primarily under long-term lease agreements	18.00%

Leases - Lease Income (Details)

Leases - Lease Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Leases - Lease Income (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Lease income:
Lease income related to fixed lease payments	$ 29,411	$ 28,648	$ 58,627	$ 56,565
Lease income related to variable lease payments	1,200	1,451	2,294	2,712
Other	(257)	(164)	(99)	(508)
Lease income	30,354	29,935	60,822	58,769
Rental income accounted for under revenue recognition standard:
Other rental income	1,570	885	2,861	1,958
Residential
Lease income:
Lease income related to fixed lease payments	25,141	23,613	49,975	46,816
Other	(214)	(88)	(350)	(342)
Lease income	24,927	23,525	49,625	46,474
Commercial
Lease income:
Lease income related to fixed lease payments	4,270	5,035	8,652	9,749
Lease income related to variable lease payments	1,200	1,451	2,294	2,712
Other	(43)	(76)	251	(166)
Lease income	$ 5,427	$ 6,410	$ 11,197	$ 12,295

Leases - Future minimum rental

Leases - Future minimum rental income (Details) $ in Thousands	Jun. 30, 2021USD ($)
Future minimum rental income:
2021 (July 1, 2021 - December 31, 2021)	$ 7,648
2022	14,629
2023	13,996
2024	13,352
2025	13,145
Thereafter	58,947
Total	$ 121,717

Related Party Transactions - Pr

Related Party Transactions - Property Management and Board of Trustee Fees (Details) - GOLDMARK Property Management - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Related Party Transactions
Management fee, amount paid	$ 6,226	$ 6,411
Management fees paid expressed as a percentage of net collected rents	5.00%	5.00%
Management fees as percent of net collected rents	$ 2,645	$ 2,572
Repair and maintenance related payroll and payroll related expenses	$ 2,973	$ 3,082

Related Party Transactions - Ad

Related Party Transactions - Advisory Agreement and Other (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2021USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)employeeshares	Jun. 30, 2020USD ($)shares	Dec. 31, 2020USD ($)
Related Party Transactions
Number of paid employees \| employee			0
Number of operating partnership (OP) units issued in connection with the acquisition of various properties \| shares			0
Rental income	$ 29,411,000	$ 28,648,000	$ 58,627,000	$ 56,565,000
Costs and expenditures incurred due to construction in progress			174,000	0
Operational liabilities outstanding	121,000		$ 121,000		$ 684,000
Advisory Agreement
Related Party Transactions
Development fee cap (as a percent)			2.50%
Development fee cap amount			$ 20,000,000
Development fee cap amount if Advisor shares responsibility			$ 500,000
Advisory Agreement \| Minimum
Related Party Transactions
Advisor's development fee, after adjustment of charges (as a percent)			2.50%
Sterling Management, LLC
Related Party Transactions
Advisory management fees			$ 1,623,000	1,538,000
Advisory management fees outstanding	273,000		273,000		278,000
Acquisition fees			135,000	302,000
Acquisition fees outstanding	135,000		135,000
Disposition fees			146,000	143,000
Disposition fees outstanding	124,000		124,000		175,000
Financing fees			69,000	61,000
Development fees outstanding	79,000		79,000		79,000
Project management fee			283,000	76,000
Project management fee outstanding	8,000		8,000		51,000
Rental income			47,000	46,000
GOLDMARK Property Management
Related Party Transactions
Rental income			154,000	130,000
GOLDMARK SCHLOSSMAN Commercial Real Estate Services
Related Party Transactions
Real estate commissions			278,000	324,000
Real estate commissions outstanding	28,000		28,000		0
Rental income			19,000	$ 28,000
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
Value of operating partnership (OP) units issued in connection with the acquisition of various properties				$ 3,373,000
SE Savage, LLC \| Mezzanine Financing
Related Party Transactions
Loan to related party			3,275,000
Outstanding receivable from related party					0
Bell Bank
Related Party Transactions
Rental income			240,000	245,000
Outstanding on principal loans	67,454,000		67,454,000		$ 51,915,000
Interest expense incurred			1,224,000	1,026,000
Accrued interest	$ 143,000	$ 121,000	143,000	$ 121,000
Number of policies obtained				0
Total premiums paid			$ 118,000

Dispositions (Details)

Dispositions (Details) $ in Thousands	1 Months Ended				6 Months Ended
Dispositions (Details) $ in Thousands	Jun. 30, 2021USD ($)	Apr. 30, 2021USD ($)	May 31, 2020USD ($)	Mar. 31, 2020USD ($)	Jun. 30, 2021USD ($)property	Jun. 30, 2020USD ($)property
Dispositions
Gain on sale of real estate					$ 1,710	$ 1,456
Disposed of by Sale
Dispositions
Number of dispositions \| property					2	2
Retail Property, Apple Valley, MN \| Disposed of by Sale
Dispositions
Disposal of property				$ 3,670
Gain on sale of real estate				$ 1,455
Retail Property, St, Cloud, Minnesota \| Disposed of by Sale
Dispositions
Disposal of property			$ 2,050
Gain on sale of real estate			$ 1
Retail Property, Waite Park, Minnesota \| Disposed of by Sale
Dispositions
Disposal of property		$ 900
Gain on sale of real estate		$ 2
Residential Property, Moorhead, Minnesota \| Disposed of by Sale
Dispositions
Disposal of property	$ 4,950
Gain on sale of real estate	$ 1,708

Acquisitions - Purchases, Curre

Acquisitions - Purchases, Current Year (Details) $ / shares in Units, $ in Thousands	Jun. 01, 2021USD ($)item	Jun. 30, 2021USD ($)$ / sharesshares
BUSINESS COMBINATIONS AND ACQUISITIONS
Acquisition price		$ 14,117
Aggregate number of limited partnership units issued for acquisition \| shares		45,000
Price per limited partnership unit issued for acquisition, price one \| $ / shares		$ 20
Aggregate value of limited partnership units issued for acquisition		$ 890
Assumed liabilities		125
Consideration in cash to pay for acquisitions		$ 13,102
Flagstone, Fargo, ND
BUSINESS COMBINATIONS AND ACQUISITIONS
Units acquired \| item	120
Acquisition price	$ 7,789
Brownstone, Fargo, ND
BUSINESS COMBINATIONS AND ACQUISITIONS
Units acquired \| item	72
Acquisition price	$ 4,392
Briar Pointe, Fargo, ND
BUSINESS COMBINATIONS AND ACQUISITIONS
Units acquired \| item	30
Acquisition price	$ 1,936

Acquisitions - Summary of Acqui

Acquisitions - Summary of Acquisition Date Fair Values (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Acquisition date fair values
Net cash consideration	$ 13,102
Nonrecurring
Acquisition date fair values
Land, building, tenant improvements and FF&E	14,117	$ 12,896
Other liabilities	(125)	(265)
Net assets acquired	13,992	12,631
Equity/limited partnership unit consideration	(890)	(9,031)
New loans		(3,225)
Net cash consideration	$ 13,102	$ 375

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) $ / shares in Units, $ in Thousands	Aug. 05, 2021USD ($)	Jul. 23, 2021USD ($)	Jul. 15, 2021$ / shares	Jul. 01, 2021USD ($)property	Jun. 30, 2021USD ($)
Subsequent Events
Acquisition price					$ 14,117
Subsequent Events
Subsequent Events
Dividend or distribution paid \| $ / shares			$ 0.2650
Subsequent Events \| Fixed Rate Loan
Subsequent Events
Face amount of debt	$ 1,148	$ 10,605
Term of debt	3 years	5 years
Interest rate (as a percent)	2.47%	2.87%
Subsequent Events \| Interest rate swaps
Subsequent Events
Notional amount				$ 26,600
Term of interest rate swap agreement				10 years
Fixed interest rate (as a percent)				2.99%
Subsequent Events \| Residential Properties, Fargo, North Dakota
Subsequent Events
Number of properties acquired \| property				2
Acquisition price				$ 24,532