Sterling Real Estate Trust 10-Q 13 Aug 24 2024 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2024	Aug. 13, 2024
Document And Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	000-54295
Entity Registrant Name	Sterling Real Estate Trust
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
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,409,414
Entity Central Index Key	0001412502
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
ASSETS
Land and land improvements	$ 139,969	$ 127,204
Building and improvements	937,683	835,551
Construction in progress	11,388	8,049
Real estate investments	1,089,040	970,804
Less accumulated depreciation	(224,765)	(214,584)
Real estate investments, net	864,275	756,220
Cash and cash equivalents	6,218	26,919
Restricted deposits	14,867	10,142
Investment in unconsolidated affiliates	23,969	26,601
Notes receivable	7,922	8,885
Assets held for sale	1,220	1,568
Lease intangible assets, less accumulated amortization	4,247	2,983
Other assets, net	27,273	21,515
Total Assets	949,991	854,833
LIABILITIES
Mortgage notes payable, net	588,454	518,119
Notes payable	8,500
Lines of credit	5,176	0
Dividends payable	8,643	8,579
Tenant security deposits payable	8,532	7,104
Lease intangible liabilities, less accumulated amortization	397	470
Liabilities related to assets held for sale	670	2
Accrued expenses and other liabilities	17,951	19,239
Total Liabilities	638,323	553,513
COMMITMENTS and CONTINGENCIES
SHAREHOLDERS' EQUITY
Beneficial interest	122,862	124,095
Operating partnership	163,341	163,308
Partially owned properties	9,679	2,555
Accumulated other comprehensive income	15,786	11,362
Total Shareholders' Equity	311,668	301,320
Total liabilities and shareholders' equity	$ 949,991	$ 854,833

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income from rental operations
Real estate rental income	$ 39,297	$ 35,550	$ 76,558	$ 70,730
Expenses from rental operations
Operating expenses	15,969	16,352	32,292	34,473
Real estate taxes	4,769	3,804	8,928	7,604
Depreciation and amortization	7,033	6,484	12,942	13,036
Interest	5,522	5,331	10,878	10,687
Total expenses from rental operations	33,293	31,971	65,040	65,800
Administration of REIT	1,540	1,140	2,886	2,451
Total expenses	34,833	33,111	67,926	68,251
Income from operations	4,464	2,439	8,632	2,479
Other (loss) income
Equity in losses of unconsolidated affiliates	(679)	(736)	(1,413)	(1,872)
Other income	387	340	780	747
Gain on sale or conversion of real estate investments	2,014	2,596	2,828	2,597
Gain on involuntary conversion	1	90		90
Total other income	1,723	2,290	2,195	1,562
Net income	6,187	4,729	10,827	4,041
Net income attributable to noncontrolling interest:
Operating partnership	3,836	3,007	6,686	2,599
Partially owned properties	31	(49)	82	(89)
Net income attributable to Sterling Real Estate Trust	$ 2,320	$ 1,771	$ 4,059	$ 1,531
Net income attributable to Sterling Real Estate Trust per common share, basic	$ 0.20	$ 0.16	$ 0.36	$ 0.14
Net income attributable to Sterling Real Estate Trust per common share, diluted	$ 0.20	$ 0.16	$ 0.36	$ 0.14
Comprehensive income:
Net income	$ 6,187	$ 4,729	$ 10,827	$ 4,041
Other comprehensive gain - change in fair value of interest rate swaps	2,908	2,023	4,425	(355)
Comprehensive income:	9,095	6,752	15,252	3,686
Comprehensive income attributable to noncontrolling interest	5,680	4,227	9,522	2,286
Comprehensive income attributable to Sterling Real Estate Trust	$ 3,415	$ 2,525	$ 5,730	$ 1,400
Weighted average common shares outstanding, basic	11,357,000	11,039,000	11,348,000	10,996,000
Weighted average common shares outstanding, diluted	11,357,000	11,039,000	11,348,000	10,996,000

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, 2022		$ 159,003	$ (35,007)	$ 123,996	$ 183,048	$ 2,640	$ 13,782	$ 323,466
Beginning Balance (in shares) at Dec. 31, 2022	10,810
Shares/units redeemed		(181)		(181)	(915)			(1,096)
Shares/units redeemed (in shares)	(8)
Dividends and distributions declared			(3,147)	(3,147)	(5,373)			(8,520)
Dividends reinvested - stock dividend		1,962		1,962				1,962
Dividends reinvested - stock dividend (in shares)	90
Issuance of shares under optional purchase plan		1,291		1,291				1,291
Issuance of shares under optional purchase plan (in shares)	56
Change in fair value of interest rate swaps							(2,378)	(2,378)
Net income (loss)			(240)	(240)	(408)	(40)		(688)
Ending balance at Mar. 31, 2023		162,075	(38,394)	123,681	176,352	2,600	11,404	314,037
Ending balance (in shares) at Mar. 31, 2023	10,948
Beginning Balance at Dec. 31, 2022		159,003	(35,007)	123,996	183,048	2,640	13,782	323,466
Beginning Balance (in shares) at Dec. 31, 2022	10,810
Change in fair value of interest rate swaps								(355)
Net income (loss)								4,041
Ending balance at Jun. 30, 2023		164,044	(39,796)	124,248	172,127	2,551	13,427	312,353
Ending balance (in shares) at Jun. 30, 2023	11,035
Beginning Balance at Mar. 31, 2023		162,075	(38,394)	123,681	176,352	2,600	11,404	314,037
Beginning Balance (in shares) at Mar. 31, 2023	10,948
Shares/units redeemed		(978)		(978)	(1,884)			(2,862)
Shares/units redeemed (in shares)	(45)
Dividends and distributions declared			(3,173)	(3,173)	(5,348)			(8,521)
Dividends reinvested - stock dividend		1,996		1,996				1,996
Dividends reinvested - stock dividend (in shares)	91
Issuance of shares under optional purchase plan		951		951				951
Issuance of shares under optional purchase plan (in shares)	41
Change in fair value of interest rate swaps							2,023	2,023
Net income (loss)			1,771	1,771	3,007	(49)		4,729
Ending balance at Jun. 30, 2023		164,044	(39,796)	124,248	172,127	2,551	13,427	312,353
Ending balance (in shares) at Jun. 30, 2023	11,035
Beginning Balance at Dec. 31, 2023		168,977	(44,877)	124,100	163,303	2,555	11,362	301,320
Beginning Balance (in shares) at Dec. 31, 2023	11,257
Shares/units redeemed		(1,108)		(1,108)	(410)			(1,518)
Shares/units redeemed (in shares)	(51)
Dividends and distributions declared			(3,257)	(3,257)	(5,333)			(8,590)
Dividends reinvested - stock dividend		1,894		1,894				1,894
Dividends reinvested - stock dividend (in shares)	87
Issuance of shares under optional purchase plan		843		843				843
Issuance of shares under optional purchase plan (in shares)	37
Change in fair value of interest rate swaps							1,517	1,517
Net income (loss)			1,740	1,740	2,850	52		4,642
Ending balance at Mar. 31, 2024		170,606	(46,394)	124,212	160,410	2,607	12,879	300,108
Ending balance (in shares) at Mar. 31, 2024	11,330
Beginning Balance at Dec. 31, 2023		168,977	(44,877)	124,100	163,303	2,555	11,362	301,320
Beginning Balance (in shares) at Dec. 31, 2023	11,257
Change in fair value of interest rate swaps								4,425
Net income (loss)								10,827
Ending balance at Jun. 30, 2024		170,186	(47,325)	122,861	163,341	9,679	15,787	311,668
Ending balance (in shares) at Jun. 30, 2024	11,309
Beginning Balance at Mar. 31, 2024		170,606	(46,394)	124,212	160,410	2,607	12,879	300,108
Beginning Balance (in shares) at Mar. 31, 2024	11,330
Contribution of assets in exchange for the issuance of noncontrolling interest shares					7,397			7,397
Shares/units redeemed		(2,886)		(2,886)	(2,910)			(5,796)
Shares/units redeemed (in shares)	(132)
Dividends and distributions declared			(3,251)	(3,251)	(5,392)			(8,643)
Dividends reinvested - stock dividend		1,837		1,837				1,837
Dividends reinvested - stock dividend (in shares)	84
Issuance of shares under optional purchase plan		629		629				629
Issuance of shares under optional purchase plan (in shares)	27
Contributions from consolidated real estate entity noncontrolling interests						7,041		7,041
Change in fair value of interest rate swaps							2,908	2,908
Net income (loss)			2,320	2,320	3,836	31		6,187
Ending balance at Jun. 30, 2024		$ 170,186	$ (47,325)	$ 122,861	$ 163,341	$ 9,679	$ 15,787	$ 311,668
Ending balance (in shares) at Jun. 30, 2024	11,309

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
OPERATING ACTIVITIES
Net income	$ 10,827	$ 4,041
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Gain on sale of real estate investments	(2,828)	(2,596)
Gain on involuntary conversion		(90)
Change in fair value of securities		(228)
Equity in loss of unconsolidated affiliates	1,413	1,872
Allowance for uncollectible accounts receivable	12	98
Depreciation	11,844	11,704
Amortization	1,098	1,332
Amortization of debt issuance costs	3	293
Effects on operating cash flows due to changes in
Other assets	(1,566)	169
Tenant security deposits payable	1,134	586
Accrued expenses and other liabilities	(5,297)	(3,624)
NET CASH PROVIDED BY OPERATING ACTIVITIES	16,640	13,557
INVESTING ACTIVITIES
Gross purchase of securities		19,369
Purchase of real estate investment properties	(28,510)
Capital expenditures and tenant improvements	(8,463)	(4,741)
Proceeds from sale of real estate investments and non-real estate investments	8,947	5,082
Proceeds from involuntary conversion		111
Investment in unconsolidated affiliates		(2,546)
Distributions in excess of earnings received from unconsolidated affiliates	1,219	1,443
Notes receivable issued net of payments received	963	(1,706)
NET CASH (USED IN) PROVIDED BY PROVIDED BY INVESTING ACTIVITIES	(25,844)	17,012
FINANCING ACTIVITIES
Payments for financing, debt issuance		(158)
Principal payments on special assessments payable	(42)	(59)
Proceeds from issuance of mortgage notes payable	(152)	35,250
Principal payments on mortgage notes payable	(8,019)	(20,628)
Draws (payments) on lines of credit	5,176	(1,008)
Proceeds from contributions received from noncontrolling interest - partially owned properties	7,042
Draws (payments) on notes payable	8,500	(26,500)
Proceeds from issuance of shares under optional purchase plan	1,472	2,242
Shares/units redeemed	(7,314)	(3,958)
Dividends/distributions paid	(13,435)	(13,055)
NET CASH USED IN FINANCING ACTIVITIES	(6,772)	(27,874)
NET CHANGE IN CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSITS	(15,976)	2,695
CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSITS AT BEGINNING OF PERIOD	37,061	12,580
CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSITS AT END OF PERIOD	$ 21,085	$ 15,275

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS - Supplemental Disclosures - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSITS AT END OF PERIOD
Cash and cash equivalents	$ 6,218	$ 6,182
Restricted deposits	14,867	9,093
TOTAL CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSITS, END OF PERIOD	21,085	15,275
SCHEDULE OF CASH FLOW INFORMATION
Cash paid during the period for interest, net of capitalized interest	10,450	10,290
SUPPLEMENTARY SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Dividends reinvested	3,732	3,958
Dividends declared and not paid	3,252	3,173
UPREIT distributions declared and not paid	5,391	5,348
Acquisition of assets in exchange for the issuance of noncontrolling interest units in UPREIT	7,396
Assumed loans	80,774
Increase in land improvements due to increase in special assessments payable	1,013	300
Unrealized gain (loss) on interest rate swaps	4,425	$ (355)
Acquisition of assets through assumption of debt and liabilities	653
Capitalized interest and real estate taxes related to construction in progress	$ 76

ORGANIZATION

ORGANIZATION	6 Months Ended
	Jun. 30, 2024
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, Sterling has management responsibility for all activities of the Operating Partnership. As of June 30, 2024 and December 31, 2023, Sterling owned approximately 37.63% and 37.72%, respectively, of the Operating Partnership. ​

PRINCIPAL ACTIVITY AND SIGNIFIC

PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2024
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, 2023, 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, 2024. These adjustments are of a normal recurring nature. ​ Principles of Consolidation ​ The consolidated financial statements include the accounts of , Properties, LLLP, and wholly-owned limited liability companies. All significant intercompany transactions and balances have been eliminated in consolidation. ​ As of June 30, 2024 the Trust owned approximately 37.63% 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 LLLP Agreement and the individual’s respective redemption plan, these persons have the right to request the Operating Partnership redeem their OP Units following a specified restricted period. All redemptions are at the sole discretion of the Trust, acting for itself or in its capacity as General Partner of the Operating Partnership, and further subject to the conditions and limitations of the LLLP Agreement and redemption plans, as the same may be amended or modified from time to time. If the Trust accepts a redemption request, the redemption of OP Units shall be made in cash in an amount 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 and in its sole and absolute discretion, 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 the primary beneficiary of a variable interest entity (VIE) and has substantial influence and control of the entity. ​ In instances where the Trust determines that it is not the primary beneficiary of a VIE and 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 (losses) of unconsolidated affiliates on its consolidated statements of operations and comprehensive income. Additionally, the Trust’s net investment in the joint venture will be reflected as investment in unconsolidated entity on the consolidated balance sheets. See Note 5 for additional details regarding variable interest entities where the Trust uses the equity method of accounting. ​ 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. ​ Concentration of Credit Risk ​ Our cash balances are maintained in various bank deposit accounts. The bank deposit amounts in these accounts may exceed federally insured limits at various times throughout the year. ​ Use of Estimates ​ The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ​ Real Estate Investments ​ Real estate investments are recorded at cost less accumulated depreciation. Ordinary repairs and maintenance are expensed as incurred. ​ During the third quarter of 2023, the Company completed a reassessment of the capitalization policy and determined that the Company would remove a stipulation for certain tangible assets to pass an additional percentage test of an amount of an entire property as well as add a new category related to Renovations and Improvement Projects that improve or extend the life of real estate assets. This reassessment was accounted for as a change in accounting estimate and was made on a prospective basis effective July 1, 2023. The change on policy did not have a significant impact on depreciation expense. ​ The Trust allocates the purchase price of each acquired investment property accounted for as an asset acquisition based upon the relative fair value at acquisition date of the individual assets acquired and liabilities assumed, which generally include (i) land, (ii) building and other improvements, (iii) in-place lease 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 a cost of the property. ​ For tangible assets acquired, including land, building and other improvements, the Trust considers available comparable market and industry information in estimating acquisition date fair value. 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 expensed as incurred. ​ Depreciation is provided for over the estimated useful lives of the individual assets using the straight-line method over the following estimated useful lives: ​ ​ ​ ​ ​ Buildings and improvements 40 years Furniture, fixtures and equipment 5 9 ​ The Trust’s investment properties are reviewed for potential impairment at the end of each reporting period or 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 our evaluation, there were no impairment losses during the three and six months ended June 30, 2024 and 2023. ​ Equity ​ The Amended and Restated Share Redemption Plan, effective June 20, 2024, permits us to repurchase common shares held by our shareholders and limited partnership units held by partners of our Operating Partnership, up to an aggregate amount of $75,000 worth of shares and units, upon request by the holders after they have held them for at least one year and subject to other conditions and limitations described in the plan. The amount remaining to be redeemed as of June 30, 2024, was $22,374. The redemption price for such shares and units redeemed under the plan was fixed at $21.85 per share or unit, which became effective January 1, 2022. The redemption plan will terminate in the event the shares become listed on any national securities exchange, the subject of bona fide quotes on any inter-dealer quotation system or electronic communications network or are the subject of bona fide quotes in the pink sheets. Additionally, the Board, in its sole discretion, may terminate, amend or suspend the redemption plan at any time if it determines to do so is in our best interest. ​ The Trust may, at its sole discretion, acting for itself, or as General Partner of the Limited Partnership, redeem up to an aggregate of $75,000 of Shares and/or Units presented to the Trust or Limited Partnership for cash to the extent it has sufficient proceeds to do so and subject to the conditions and limitations set forth herein. Any and all units redeemed by the Limited Partnership shall be canceled, and will have the status of authorized but unissued Units. Units acquired by the Limited Partnership through the Redemption Plan will not be reissued unless they are first registered with the Securities and Exchange Commission under the Securities Act of 1933, as amended, and other appropriate state securities laws or otherwise issued pursuant to exemptions from applicable registration requirements of such laws. ​ ​ 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 generally taxed on REIT distributions of ordinary income in 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 ​ The Trust is the lessor for its residential and commercial leases. Leases are analyzed on an individual basis to determine lease classification. As of June 30, 2024 all leases analyzed under the Trust’s lease classification process were determined to be operating leases. ​ Earnings per Common Share ​ Basic earnings per common share is computed by dividing net income available to common shareholders (the “numerator”) by the weighted average number of common shares outstanding (the “denominator”) during the period. Sterling had no dilutive potential common shares during the three and six months ended June 30, 2024 and 2023 and therefore, basic earnings per common share was equal to diluted earnings per common share for all periods presented. ​ For the six months ended June 30, 2024 and 2023, Sterling’s denominators for the basic and diluted earnings per common share were approximately 11,348,000 and 10,996,000 , respectively.

SEGMENT REPORTING

SEGMENT REPORTING	6 Months Ended
	Jun. 30, 2024
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 property administrative and management fees). 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, legal and professional fees, and certain general and administrative expenses. The accounting policies of each segment are consistent with those described in Note 2 of this report. ​ Segment Revenues and Net Operating Income ​ The revenues and net operating income for the reportable segments (residential and commercial) are summarized as follows for the three and six months ended June 30, 2024 and 2023, 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, 2024 ​ Three months ended June 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential Commercial Total Residential Commercial Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ (in thousands) Income from rental operations ​ $ 34,248 ​ $ 5,049 ​ $ 39,297 ​ $ 30,574 ​ $ 4,976 ​ $ 35,550 Expenses from rental operations ​ ​ 19,355 ​ ​ 1,383 ​ ​ 20,738 ​ ​ 18,730 ​ ​ 1,426 ​ ​ 20,156 Net operating income ​ $ 14,893 ​ $ 3,666 ​ $ 18,559 ​ $ 11,844 ​ $ 3,550 ​ $ 15,394 Depreciation and amortization ​ ​ ​ ​ ​ ​ ​ ​ 7,033 ​ ​ ​ ​ ​ ​ ​ ​ 6,484 Interest ​ ​ ​ ​ ​ ​ ​ ​ 5,522 ​ ​ ​ ​ ​ ​ ​ ​ 5,331 Administration of REIT ​ ​ ​ ​ ​ ​ ​ ​ 1,540 ​ ​ ​ ​ ​ ​ ​ ​ 1,140 Other income ​ ​ ​ ​ ​ ​ ​ ​ (1,723) ​ ​ ​ ​ ​ ​ ​ ​ (2,290) Net income ​ ​ ​ ​ ​ ​ ​ $ 6,187 ​ ​ ​ ​ ​ ​ ​ $ 4,729 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2024 ​ Six months ended June 30, 2023 ​ Residential Commercial Total Residential Commercial Total ​ ​ (in thousands) ​ (in thousands) Income from rental operations ​ $ 66,403 ​ $ 10,155 ​ $ 76,558 ​ $ 60,494 ​ $ 10,236 ​ $ 70,730 Expenses from rental operations ​ ​ 38,481 ​ ​ 2,739 ​ ​ 41,220 ​ ​ 38,934 ​ ​ 3,143 ​ ​ 42,077 Net operating income ​ $ 27,922 ​ $ 7,416 ​ $ 35,338 ​ $ 21,560 ​ $ 7,093 ​ $ 28,653 Depreciation and amortization ​ ​ ​ ​ ​ ​ ​ ​ 12,942 ​ ​ ​ ​ ​ ​ ​ ​ 13,036 Interest ​ ​ ​ ​ ​ ​ ​ ​ 10,878 ​ ​ ​ ​ ​ ​ ​ ​ 10,687 Administration of REIT ​ ​ ​ ​ ​ ​ ​ ​ 2,886 ​ ​ ​ ​ ​ ​ ​ ​ 2,451 Other income ​ ​ ​ ​ ​ ​ ​ ​ (2,195) ​ ​ ​ ​ ​ ​ ​ ​ (1,562) Net income (loss) ​ ​ ​ ​ ​ ​ ​ $ 10,827 ​ ​ ​ ​ ​ ​ ​ $ 4,041 ​ Segment Assets and Accumulated Depreciation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of June 30, 2024 Residential Commercial Total ​ ​ (in thousands) Real estate investments ​ $ 911,914 ​ $ 177,126 ​ $ 1,089,040 Accumulated depreciation ​ ​ (173,529) ​ ​ (51,236) ​ ​ (224,765) Total real estate investments, net ​ $ 738,385 ​ $ 125,890 ​ $ 864,275 Lease intangible assets, less accumulated amortization ​ ​ 1,584 ​ ​ 2,663 ​ ​ 4,247 Cash and cash equivalents ​ ​ ​ ​ ​ ​ ​ ​ 6,218 Restricted deposits ​ ​ ​ ​ ​ ​ ​ ​ 14,867 Investment in unconsolidated affiliates ​ ​ ​ ​ ​ ​ ​ ​ 23,969 Notes receivable ​ ​ ​ ​ ​ ​ ​ ​ 7,922 Assets held for sale ​ ​ ​ ​ ​ ​ ​ ​ 1,220 Other assets, net ​ ​ ​ ​ ​ ​ ​ ​ 27,273 Total Assets ​ ​ ​ ​ ​ ​ ​ $ 949,991 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2023 Residential Commercial Total ​ ​ (in thousands) Real estate investments ​ $ 789,249 ​ $ 181,555 ​ $ 970,804 Accumulated depreciation ​ ​ (164,793) ​ ​ (49,791) ​ ​ (214,584) Total real estate investments, net ​ $ 624,456 ​ $ 131,764 ​ $ 756,220 Lease intangible assets, less accumulated amortization ​ ​ — ​ ​ 2,983 ​ ​ 2,983 Cash and cash equivalents ​ ​ ​ ​ ​ ​ ​ ​ 26,919 Restricted deposits ​ ​ ​ ​ ​ ​ ​ ​ 10,142 Investment in unconsolidated affiliates ​ ​ ​ ​ ​ ​ ​ ​ 26,601 Notes receivable ​ ​ ​ ​ ​ ​ ​ ​ 8,885 Assets held for sale ​ ​ ​ ​ ​ ​ ​ ​ 1,568 Other assets, net ​ ​ ​ ​ ​ ​ ​ ​ 21,515 Total Assets ​ ​ ​ ​ ​ ​ ​ $ 854,833 ​

RESTRICTED DEPOSITS AND FUNDED

RESTRICTED DEPOSITS AND FUNDED RESERVES	6 Months Ended
	Jun. 30, 2024
RESTRICTED DEPOSITS AND FUNDED RESERVES
RESTRICTED DEPOSITS AND FUNDED RESERVES	​ ​ ​ ​ ​ NOTE 4 – Restricted deposits and FUNDED reserves ​ The following table summarizes the Trust’s restricted deposits and funded reserves. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of June 30, ​ As of December 31, ​ ​ ​ ​ ​ 2024 ​ 2023 ​ ​ ​ ​ ​ (in thousands) Tenant security deposits ​ ​ ​ ​ $ 8,015 ​ $ 6,945 Real estate tax and insurance escrows ​ ​ ​ ​ ​ 403 ​ ​ 676 Replacement reserves ​ ​ ​ ​ ​ 106 ​ ​ 1,443 Other funded reserves ​ ​ ​ ​ ​ 6,343 ​ ​ 1,078 ​ ​ ​ ​ ​ $ 14,867 ​ $ 10,142 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

INVESTMENT IN UNCONSOLIDATED AF

INVESTMENT IN UNCONSOLIDATED AFFILIATES	6 Months Ended
	Jun. 30, 2024
INVESTMENT IN UNCONSOLIDATED AFFILIATES
INVESTMENT IN UNCONSOLIDATED AFFILIATES	NOTE 5 – Investment in unconsolidated affiliates ​ The Company’s investments in unconsolidated real estate ventures, are summarized as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Investment in Unconsolidated Affiliates at Unconsolidated Affiliates ​ ​ Date Acquired ​ ​ Trust Ownership Interest ​ June 30, 2024 ​ December 31, 2023 Banner Building ​ ​ 2007 ​ ​ 66.67% ​ $ (490) ​ $ (478) Grand Forks INREIT, LLC ​ ​ 2003 ​ ​ 50% ​ ​ 5,262 ​ ​ 5,193 SE Savage, LLC ​ ​ 2019 ​ ​ 60% ​ ​ 579 ​ ​ 954 SE Maple Grove, LLC ​ ​ 2019 ​ ​ 60% ​ ​ 368 ​ ​ 735 SE Rogers, LLC ​ ​ 2020 ​ ​ 60% ​ ​ 1,122 ​ ​ 1,419 ST Oak Cliff, LLC ​ ​ 2021 ​ ​ 70% ​ ​ 7,258 ​ ​ 7,920 SE Brooklyn Park, LLC ​ ​ 2021 ​ ​ 60% ​ ​ 1,212 ​ ​ 1,748 ST Fossil Creek, LLC ​ ​ 2022 ​ ​ 70% ​ ​ 8,658 ​ ​ 9,110 ​ ​ ​ ​ ​ ​ ​ ​ $ 23,969 ​ $ 26,601 ​ Banner Building - the Operating Partnership owns a 66.67% interest as tenant in common in an office building in Fargo, North Dakota. The property is encumbered by a first mortgage with a balance at June 30, 2024 and December 31, 2023 of $6,630 and $6,724, respectively. The Trust is jointly and severally liable for the full mortgage balance. ​ Grand Forks INREIT, LLC - the Operating Partnership owns 50% interest as tenant in common through 100% ownership in a limited liability company. The property is located in Grand Forks, North Dakota. The property is encumbered by a non-recourse first mortgage with a balance at June 30, 2024 and December 31, 2023 of $8,822 and $8,948, respectively. The Trust is jointly and severally liable for the full mortgage balance. ​ ​ SE Savage, LLC - the Operating Partnership owns a 60% interest in a limited liability company that holds a multifamily property. The property is encumbered by a first mortgage with a balance of $30,090 and $30,305 at June 30, 2024, and December 31, 2023, respectively. The Trust is jointly and severally liable for the full mortgage balance. Additionally, SE Savage, LLC has an outstanding Promissory Note with Sterling Properties, LLLP, for $22 and $468 as of June 30, 2024 and December 31, 2023, respectively and is an unsecured obligation of SE Savage, LLC. The note is included in Notes Receivable on the Consolidated Balance Sheet at June 30, 2024 and December 31, 2023. ​ SE Maple Grove, LLC - the Operating Partnership owns a 60% interest in a limited liability company that holds a multifamily property. The entity is encumbered by a first mortgage with a balance of $24,398 and $24,633 at June 30, 2024 and December 31, 2023 respectively. The Trust is jointly and severally liable for the full mortgage balance. The property is also encumbered by a second mortgage to Sterling Properties, LLLP with a balance of $3,428 and $3,643 at June 30, 2024 and December 31, 2023, respectively. The note is included in Notes Receivable on the Consolidated Balance Sheet at June 30, 2024 and December 31, 2023. ​ SE Rogers, LLC - the Operating Partnership owns a 60% interest in a limited liability company that holds a multifamily property. The LLC holds land located in Rogers, Minnesota, with total assets of $29,887 and $30,576 at June 30, 2024 and December 31, 2023, respectively. The entity is encumbered by a first mortgage with a balance of $25,500 and $25,742 at June 30, 2024 and December 31, 2023, respectively. The Trust is jointly and severally liable for the full mortgage balance. The property is also encumbered by a second mortgage to Sterling Properties, LLLP with a balance of $2,100 and $2,117 at June 30, 2024 and December 31, 2023, respectively. The note is included in Notes Receivable on the Consolidated Balance Sheet at June 30, 2024 and December 31, 2023. ​ ST Oak Cliff, LLC - the Operating Partnership owns a 70% interest in a limited liability company, with a related party a multifamily property. The entity holds land located in Dallas, Texas with total assets of $48,125 and $48,738 at June 30, 2024 and December 31, 2023, respectively. The entity is encumbered by a construction mortgage with a balance of $36,708 and $36,246 at June 30, 2024 and December 31, 2023, respectively. The is jointly and severally liable for the full mortgage balance. ​ SE Brooklyn Park, LLC - the Operating Partnership owns a 60% interest in a limited liability company that holds a multifamily property. The entity is located in Brooklyn Park, Minnesota, with total assets of $28,915 and $30,325 at June 30, 2024 and December 31, 2023, respectively. The entity is encumbered by a first mortgage with a balance of $24,471 and $24,592 at June 30, 2024 and December 31, 2023. The Trust is jointly and severally liable for the full mortgage balance. The property is also encumbered by a second mortgage to Sterling Properties, LLLP with a balance of $2,294 and $2,538 at June 30, 2024 and December 31, 2023, respectively. The note is included in Notes Receivable on the Consolidated Balance Sheet at June 30, 2024 and December 31, 2023. ​ ST Fossil Creek, LLC - the Operating Partnership owns a 70% interest in a limited liability company, with a related party. The entity is currently developing a multifamily property. As of June 30, 2024, the Operating Partnership has contributed $9,275 in cash to the entity. The entity holds land located in Fort Worth, Texas with total assets of $48,675 and $43,517 at June 30, 2024 and December 31, 2023, respectively. The entity is encumbered by a construction mortgage with a balance of $32,767 and $26,657 at June 30, 2024 and December 31, 2023, respectively. The Trust 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, 2024 and December 31, 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2024 December 31, 2023 ​ ​ (in thousands) ASSETS ​ ​ ​ ​ ​ ​ Real estate investments ​ $ 268,073 ​ $ 261,901 Accumulated depreciation ​ ​ (31,330) ​ ​ (26,191) ​ ​ ​ 236,743 ​ ​ 235,710 Cash and cash equivalents ​ ​ 1,937 ​ ​ 3,388 Restricted deposits ​ ​ 901 ​ ​ 883 Intangible assets, less accumulated amortization ​ ​ 781 ​ ​ 813 Other assets, net ​ ​ 1,026 ​ ​ 780 Total Assets ​ $ 241,388 ​ $ 241,574 ​ ​ ​ ​ ​ ​ ​ LIABILITIES ​ ​ ​ ​ ​ ​ Mortgage notes payable, net ​ $ 196,701 ​ $ 191,890 Tenant security deposits payable ​ ​ 402 ​ ​ 340 Accrued expenses and other liabilities ​ ​ 6,289 ​ ​ 7,208 Total Liabilities ​ $ 203,392 ​ $ 199,438 SHAREHOLDERS' EQUITY ​ ​ ​ ​ ​ ​ Total Shareholders' Equity ​ $ 37,996 ​ $ 42,136 ​ ​ ​ ​ ​ ​ ​ Total liabilities and shareholders' equity ​ $ 241,388 ​ $ 241,574 ​ ​ The following is a summary of results of operations of the unconsolidated affiliates for the three and six months ended June 30, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, ​ Six months ended June 30, ​ 2024 2023 2024 2023 ​ ​ (in thousands) ​ ​ (in thousands) Income from rental operations ​ $ 6,213 ​ $ 4,633 ​ $ 12,012 ​ $ 8,340 Expenses from rental operations ​ ​ 2,879 ​ ​ 1,717 ​ ​ 5,673 ​ ​ 3,495 Net operating income ​ $ 3,334 ​ $ 2,916 ​ $ 6,339 ​ $ 4,845 Depreciation and Amortization ​ ​ 2,699 ​ ​ 2,441 ​ ​ 5,181 ​ ​ 4,933 Interest ​ ​ 1,611 ​ ​ 1,448 ​ ​ 3,239 ​ ​ 2,792 Other expense ​ ​ - ​ ​ 98 ​ ​ - ​ ​ 13 Net loss ​ $ (976) ​ $ (1,071) ​ $ (2,081) ​ $ (2,893) ​

LEASE INTANGIBLES

LEASE INTANGIBLES	6 Months Ended
	Jun. 30, 2024
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, 2024 Intangibles Amortization Intangibles, net Lease Intangible Assets ​ (in thousands) In-place leases ​ $ 16,188 ​ $ (12,386) ​ $ 3,802 Above-market leases ​ ​ 1,415 ​ ​ (970) ​ ​ 445 ​ ​ $ 17,603 ​ $ (13,356) ​ $ 4,247 Lease Intangible Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ Below-market leases ​ $ (2,314) ​ $ 1,917 ​ $ (397) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lease ​ Accumulated ​ Lease As of December 31, 2023 Intangibles Amortization Intangibles, net Lease Intangible Assets ​ (in thousands) In-place leases ​ $ 13,927 ​ $ (11,434) ​ $ 2,493 Above-market leases ​ ​ 1,415 ​ ​ (925) ​ ​ 490 ​ ​ $ 15,342 ​ $ (12,359) ​ $ 2,983 Lease Intangible Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ Below-market leases ​ $ (2,314) ​ $ 1,844 ​ $ (470) ​ 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) 2024 (July - December) ​ $ 1,706 ​ $ 74 2025 ​ ​ 839 ​ ​ 147 2026 ​ ​ 490 ​ ​ 77 2027 ​ ​ 381 ​ ​ 38 2028 ​ ​ 311 ​ ​ 19 Thereafter ​ ​ 520 ​ ​ 42 ​ ​ $ 4,247 ​ $ 397 ​

LINES OF CREDIT

LINES OF CREDIT	6 Months Ended
	Jun. 30, 2024
LINES OF CREDIT
LINES OF CREDIT	​ NOTE 7 – LINES OF CREDIT ​ We have a $4,915 variable rate (floating SOFR December 2026 SOFR December 2026 ​ Certain lines of credit agreements include covenants that, in part, impose maintenance of certain debt service coverage and debt to net worth ratios. ​

NOTES PAYABLE

NOTES PAYABLE	6 Months Ended
	Jun. 30, 2024
NOTES PAYABLE
NOTES PAYABLE	NOTE 8 - NOTES PAYABLE ​ On June 25, 2024, the Trust entered into a $10,000 promissory note with Bell Bank. The promissory note bears a variable interest rate that is subject to change from time to time based on changes in an independent index, which is the “Prime Rate” as published in the Wall Street Journal, with principal plus accrued and unpaid interest due and payable on December 20, 2024. The Borrower may prepay the promissory note without penalty. As of June 30, 2024, the balance on the promissory note was $8,500. ​ The following table summarizes the Trust’s mortgage notes payable. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Principal Balance At ​ ​ June 30, ​ December 31, ​ ​ 2024 ​ 2023 ​ ​ (in thousands) Fixed rate mortgage notes payable (a) ​ $ 590,339 ​ $ 520,155 Less unamortized debt issuance costs ​ ​ 1,885 ​ ​ 2,036 ​ ​ $ 588,454 ​ $ 518,119 (a) Includes $128,967 and $103,246 of variable rate mortgage debt that was swapped to a fixed rate at June 30, 2024 and December 31, 2023, 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) 2024 ​ $ 14,670 2025 ​ ​ 105,207 2026 ​ ​ 71,294 2027 ​ ​ 79,009 2028 ​ ​ 42,638 Thereafter ​ ​ 277,521 Total payments ​ $ 590,339 ​

DERIVATIVES AND HEDGING ACTIVIT

DERIVATIVES AND HEDGING ACTIVITIES	6 Months Ended
	Jun. 30, 2024
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, 2024, the Trust used 15 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 income (loss) and are reclassified into interest expense as interest payments are made on the Trust’s variable rate debt. During the next twelve months, the Trust estimates that an additional $4,205 will be reclassified as a decrease to interest expense. The following table summarizes the Trust’s interest rate swaps as of June 30, 2024, which effectively convert one month floating rate LIBOR or 30-day average SOFR to a fixed rate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed ​ ​ Effective Date ​ Notional ​ Interest Rate ​ Maturity Date November 1, 2019 $ 6,257 ​ 3.15% ​ November 1, 2029 November 1, 2019 $ 4,353 ​ 3.28% ​ November 1, 2029 January 10, 2020 $ 2,841 ​ 3.39% ​ January 10, 2030 December 2, 2020 $ 11,817 ​ 2.91% ​ December 2, 2027 July 1, 2021 $ 24,665 ​ 2.99% ​ July 1, 2031 November 10, 2021 $ 27,175 ​ 3.54% ​ August 1, 2029 December 1, 2021 $ 10,363 ​ 3.32% ​ December 1, 2031 August 15, 2022 $ 1,420 ​ 3.07% ​ June 15, 2030 August 15, 2022 $ 2,752 ​ 3.07% ​ June 15, 2030 August 15, 2022 $ 1,537 ​ 2.94% ​ June 15, 2030 August 15, 2022 $ 4,067 ​ 2.94% ​ June 15, 2030 May 10, 2023 $ 4,575 ​ 2.79% ​ June 10, 2030 April 15, 2024 $ 9,767 ​ 3.57% ​ May 15, 2032 April 15, 2024 $ 3,813 ​ 3.57% ​ May 15, 2032 April 15, 2024 $ 13,565 ​ 3.57% ​ May 15, 2032 ​ 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, 2024 ​ December 31, 2023 ​ June 30, 2024 ​ December 31, 2023 Interest rate swaps ​ 15 ​ 12 $ 128,967 $ 103,246 ​ 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 designated as ​ June 30, 2024 ​ December 31, 2023 cash flow hedges: ​ Balance Sheet Location ​ Fair Value ​ Balance Sheet Location ​ Fair Value Interest rate swaps ​ Other assets, net $ 15,786 ​ Other assets, net $ 11,362 ​ The carrying amounts of the swaps have been adjusted to their fair value at the end of the quarter, which because of changes in forecasted levels and 30-day average SOFR, resulted in reporting an asset for the fair value of the future net payments forecasted under the swap. The interest rate swap is accounted for as an effective hedge in accordance with ASC 815-20 whereby it is recorded at fair value and changes in fair value are recorded to other 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 income for the three months ended June 30, 2024 and 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Location of Gain ​ ​ ​ ​ Amount of Gain ​ Reclassified from ​ ​ Derivatives in ​ Recognized in Other ​ Accumulated other ​ Amount of (Gain)/Loss Cash Flow Hedging ​ Comprehensive Income ​ Comprehensive Income ​ Reclassified from Relationships ​ on Derivatives ​ (AOCI) into Income ​ AOCI into Income ​ ​ 2024 ​ ​ ​ 2024 Interest rate swaps $ (2,908) ​ Interest expense $ (1,042) ​ ​ 2023 ​ ​ ​ 2023 Interest rate swaps $ (2,023) ​ Interest expense $ (917) ​ The following table presents the effect of the Trust’s derivative financial instruments on the accompanying consolidated statements of operations and other comprehensive income for the six months ended June 30, 2024 and 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Location of Gain ​ ​ Derivatives in ​ Recognized in Other ​ Accumulated other ​ Amount of (Gain)/Loss Cash Flow Hedging ​ Comprehensive Income ​ Comprehensive Income ​ Reclassified from Relationships ​ on Derivatives ​ (AOCI) into Income ​ AOCI into Income ​ ​ 2024 ​ ​ ​ 2024 Interest rate swaps $ (4,425) ​ Interest expense $ (2,071) ​ ​ 2023 ​ ​ ​ 2023 Interest rate swaps $ 355 ​ Interest expense $ (1,682) ​ Credit-risk-related Contingent Features ​ 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. .

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	6 Months Ended
	Jun. 30, 2024
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT	NOTE 10 - FAIR VALUE MEASUREMENT ​ The amounts included in the consolidated financial statements for cash and cash equivalents, short-term investments, leasing receivables from tenants and accounts payable and accrued liabilities approximates their fair values because of the short-term maturities of these instruments. ​ The following table presents the carrying value and estimated fair value of the Company’s financial instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2024 ​ December 31, 2023 ​ ​ Carrying ​ ​ ​ ​ Carrying ​ ​ ​ ​ Value Fair Value Value Fair Value ​ ​ (in thousands) Financial assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investments ​ $ — ​ $ — ​ $ — ​ $ — Notes receivable ​ $ 7,922 ​ $ 8,617 ​ $ 8,885 ​ $ 10,025 Derivative assets ​ $ 15,786 ​ $ 15,786 ​ $ 11,362 ​ $ 11,362 ​ ​ ​ Financial liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage notes payable ​ $ 590,339 ​ $ 480,048 ​ $ 520,155 ​ $ 477,344 ​ 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 Company’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, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative assets ​ $ — ​ $ 15,786 ​ $ — ​ $ 15,786 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative assets ​ $ — ​ $ 11,362 ​ $ — ​ $ 11,362 ​ Derivatives: ​ The Company has determined that its derivative valuations in their entirety are classified within Level 2 of the fair value hierarchy. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the 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, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Line of Credit ​ $ — ​ $ — ​ $ 5,176 ​ $ 5,176 Mortgage notes payable ​ $ — ​ $ — ​ $ 480,048 ​ $ 480,048 Note payable ​ $ ​ ​ $ ​ ​ $ 8,500 ​ $ 8,500 Notes receivable ​ $ — ​ $ — ​ $ 8,617 ​ $ 8,617 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage notes payable ​ $ — ​ $ — ​ $ 477,344 ​ $ 477,344 Notes receivable ​ $ — ​ $ — ​ $ 10,025 ​ $ 10,025 ​ Line of credit: ​ Mortgage notes payable: ​ Note payable: ​ Notes receivable:

LEASES

LEASES	6 Months Ended
	Jun. 30, 2024
LEASES
LEASES	NOTE 11 – LEASES ​ As of June 30, 2024, we derived 85.3% 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, 2024, we derived 14.7% 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. ​ We recognize variable income from pass-through expenses on an accrual basis over the periods in which the expenses were incurred. Pass-through expenses are comprised of real estate taxes, operating expenses and common area maintenance costs which are reimbursed by tenants in accordance with specific allowable costs per tenant lease agreements. When we pay pass-through expenses, subject to reimbursement by the tenant, they are included within operating expenses, excluding real estate taxes, and reimbursements are included within “real estate rental income” along with the associated base rent in the accompanying consolidated financial statements. ​ Lease income related to the Company’s operating leases is comprised of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2024 ​ Residential Commercial Total ​ ​ (in thousands) Lease income related to fixed lease payments ​ $ 32,696 ​ $ 3,873 ​ $ 36,569 Lease income related to variable lease payments ​ ​ 1 ​ ​ 1,194 ​ ​ 1,195 Other (a) ​ ​ (263) ​ ​ (55) ​ ​ (318) Lease Income (b) ​ $ 32,434 ​ $ 5,012 ​ $ 37,446 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2023 ​ Residential Commercial Total ​ ​ (in thousands) Lease income related to fixed lease payments ​ $ 29,165 ​ $ 3,920 ​ $ 33,085 Lease income related to variable lease payments ​ ​ — ​ ​ 899 ​ ​ 899 Other (a) ​ ​ (160) ​ ​ 86 ​ ​ (74) Lease Income (b) ​ $ 29,005 ​ $ 4,905 ​ $ 33,910 ​ (a) For the three months ended June 30, 2024 and 2023, “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, 2024 and 2023 of $1,850 and $1,640 , respectively, which is accounted for under the revenue recognition standard. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2024 ​ Residential Commercial Total ​ ​ (in thousands) Lease income related to fixed lease payments ​ $ 63,551 ​ $ 7,780 ​ $ 71,331 Lease income related to variable lease payments ​ ​ 1 ​ ​ 2,339 ​ ​ 2,340 Other (a) ​ ​ (483) ​ ​ (41) ​ ​ (524) Lease Income (b) ​ $ 63,069 ​ $ 10,078 ​ $ 73,147 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2023 ​ Residential Commercial Total ​ ​ (in thousands) Lease income related to fixed lease payments ​ $ 57,820 ​ $ 7,864 ​ $ 65,684 Lease income related to variable lease payments ​ ​ — ​ ​ 2,096 ​ ​ 2,096 Other (a) ​ ​ (279) ​ ​ 181 ​ ​ (98) Lease Income (b) ​ $ 57,541 ​ $ 10,141 ​ $ 67,682 ​ ​ (a) For the six months ended June 30, 2024 and 2023, “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, 2024 and 2023 of $3,408 and $3,048 , respectively, which is accounted for under the revenue recognition standard. ​ As of June 30, 2024, 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) 2024 (July - December) ​ $ 9,009 2025 ​ ​ 15,020 2026 ​ ​ 14,252 2027 ​ ​ 12,769 2028 ​ ​ 11,797 Thereafter ​ ​ 35,524 ​ ​ $ 98,371 ​

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2024
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 12 – RELATED PARTY TRANSACTIONS ​ Effective January 1, 2021, Trustmark 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 Trustmark Enterprises, Inc. indirectly own Sterling Management, LLC and GOLDMARK Property Management, Inc. Trustmark 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, and by President Joel S. Thomsen. In addition, Mr. Regan serves as the Executive Chairman of the Advisor, and Messrs. Wieland, and Thomsen serve on the Board of Governors of both the Advisor and GOLDMARK Property Management, Inc. ​ Sterling Management, LLC (the “Advisor”), 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. Mr. Wieland could have an indirect material interest in any such engagement and related transactions. ​ The Trust has a historical and ongoing relationship with Trumont Group and Trumont Construction. Trumont Group provides development services for current joint venture projects in which the Operating Partnership is an investor. Trumont Construction has been engaged to construct the properties associated with these joint ventures. Mr. Regan, Chief Executive Officer and Trustee, is a partner in both Trumont Group and Trumont Construction and has a direct material interest in any engagement or related transaction, the Trust enters into, with these entities. ​ Property Management Fees ​ During the six months ended June 30, 2024 and 2023, we paid fees to GOLDMARK Property Management, Inc. related to the management of properties, on-site staff costs and other miscellaneous fees required to run the property of $5,401, and $5,917, respectively. Management fees paid during the six months ended June 30, 2024 and 2023 approximated 5% of net collected rent. In addition, during the six months ended June 30, 2024 and 2023, we paid repair and maintenance expenses, and payroll related expenses to GOLDMARK Property Management, Inc. totaling $4,615 and $4,916, 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 following is a brief description of the current fees and compensation that may be and was received by the Advisor under the Advisory Agreement, which must be renewed on an annual basis and approved by a majority of the independent trustees. The Advisory Agreement was approved by the Board of Trustees (including all the independent Trustees) on March 21, 2024, and is effective until March 31, 2025. ​ ​ The below table summarizes the fees incurred to our Advisor. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months ended June 30, ​ ​ 2024 ​ 2023 ​ ​ (in thousands) Fee: ​ ​ ​ ​ ​ ​ Advisory ​ $ 1,940 ​ $ 1,901 Acquisition ​ $ 750 ​ $ - Disposition ​ $ 264 ​ $ 204 Financing ​ $ 96 ​ $ 68 Development ​ $ 350 ​ $ - Project Management ​ $ 374 ​ $ 249 ​ ​ The below table summarizes the fees payable to our Advisor. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payable at ​ ​ June 30, ​ December 31, ​ ​ 2024 ​ 2023 ​ ​ (in thousands) Fee: ​ ​ ​ ​ ​ ​ Advisory ​ $ 37 ​ $ 316 Acquisition ​ $ 375 ​ $ - Financing ​ $ 59 ​ $ - ​ Operating Partnership Units Issued in Connection with Acquisitions ​ During the six months ended June 30, 2024, 322 Operating Partnerships units were issued 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 $7,396. ​ During the six months ended June 30, 2023, there were no Operating Partnership units issued. ​ Commissions ​ During the six months ended June 30, 2024, we incurred real estate commissions of $531 to GOLDMARK Commercial Real Estate, Inc., in which Messrs. Regan and Wieland jointly own a controlling interest. During the six months ended June 30, 2023, There were no real estate commissions paid to GOLDMARK Commercial Real Estate, Inc., in which Messrs. Regan and Wieland jointly own a controlling interest. As of June 30, 2024 there were $292 payable to GOLDMARK Commercial Real Estate. As of December 31, 2023, there were no commissions payable to GOLDMARK Commercial Real Estate. ​ During the six months ended June 30, 2024, we incurred real estate commissions of $39, to GOLDMARK Property Management. During the six months ended June 30, 2023, there were no commission paid to GOLDMARK Property Management. As of June 30, 2024 there were $28 payable to GOLDMARK Property Management. As of December 31, 2023, there were no unpaid commissions to GOLDMARK Property Management. ​ Rental Income ​ During the six months ended June 30, 2024 and 2023, we received rental income of $138 and $135, respectively, under an operating lease agreement with GOLDMARK Property Management, Inc. ​ During the six months ended June 30, 2024 and 2023, we received rental income of $67 and $66, respectively, under an operating lease agreement with our Advisor. ​ During the six months ended June 30, 2024 and 2023, we received rental income of $570 and $465, respectively, under operating lease agreements with Bell Bank. ​ Other operational costs ​ During the six months ended June 30, 2024 and 2023, the Trust incurred $100 and $91 respectively, for general costs related to business operations as well as capital expenditures related to construction in progress that were paid to related parties. At June 30, 2024 and December 31, 2023, there were no operational outstanding liabilities. ​ Debt Financing ​ At June 30, 2024 and December 31, 2023, the Trust had $59,106 and $60,262, respectively, of outstanding principal on loans entered into with Bell Bank. During the six months ended June 30, 2024 and 2023, the Trust incurred interest expense on debt held with Bell Bank of $1,152 and $1,208, respectively. Accrued interest as of June 30, 2024 and December 31, 2023 related to this debt was $125 and $128, respectively. ​ Mezzanine Financing ​ The Trust offers mezzanine financing to joint ventures, see Note 5 for investment in unconsolidated affiliates. At June 30, 2024 and December 31, 2023, Sterling issued $7,840 and $8,766 respectively, in second mortgage financing to related entries. ​ During the six months ended June 30, 2024 and 2023, the Trust earned interest income of $296 and $288 respectively, related to the second mortgage financing. ​ Insurance Services ​ The Trust retains insurance services from Bell Insurance. Policies provided by these services provide insurance coverage for the Trust’s Commercial and Residential Segment as well as Director and Officer general and liability coverage. For the six months ended June 30, 2024 and 2023, total premiums incurred for this policy were $76 and $131, respectively. ​ Development Arrangements ​ During the six months ended June 30, 2024 and 2023, the Trust had no development fees to Trumont Group. At June 30, 2024 and December 31, 2023, the Trust had no costs owed for development fees to Trumont Group. ​ During the six months ended June 30, 2024 and 2023, the Trust incurred $ 73 and $ 276 , respectively, in construction fees to Trumont Construction. At June 30, 2024 and December 31, 2023, the Trust had no costs owed for any construction fees to Trumont Construction. ​ During the six months ended June 30, 2024 and 2023, the Trust incurred $ 210 and $ 186 , respectively, in general construction costs to Trumont Construction. At June 30, 2024 and December 31, 2023, the Trust had no costs owed for any general construction costs.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2024
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. ​

DISPOSITIONS

DISPOSITIONS	6 Months Ended
	Jun. 30, 2024
DISPOSITIONS
DISPOSITIONS	​ NOTE 14 – DISPOSITIONS ​ The Trust had eight dispositions during the six months ended June 30, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Date ​ Property Name ​ Location ​ Property Type ​ ​ Units/ Square Footage/ Acres ​ Total Disposition Cost ​ Gain/(Loss) on Sale 1/25/24 ​ Dairy Queen ​ Apple Valley, MN ​ Retail ​ ​ 5348 square feet ​ $ 1,607 ​ $ (68) 3/1/24 ​ Westwind ​ Fargo, ND ​ Apartment Complex ​ ​ 18 units ​ ​ 900 ​ ​ 489 3/8/24 ​ Westside ​ Hawley, MN ​ Apartment Complex ​ ​ 14 units ​ ​ 837 ​ ​ 394 4/3/24 ​ Columbia Park Village ​ Grand Forks, ND ​ Apartment Complex ​ ​ 12 units ​ ​ 675 ​ ​ 42 5/1/24 ​ Gate City Bank ​ Grand Forks, ND ​ Office ​ ​ 17407 square feet ​ ​ 2,950 ​ ​ 974 5/21/24 ​ First International Bank & Trust ​ Moorhead, MN ​ Office ​ ​ 3510 square feet ​ ​ 1,516 ​ ​ 683 6/14/24 ​ Jadestone ​ Fargo, ND ​ Apartment Complex ​ ​ 18 units ​ ​ 1,039 ​ ​ 136 6/14/24 ​ Essex ​ Fargo, ND ​ Apartment Complex ​ ​ 18 units ​ ​ 1,039 ​ ​ 178 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 10,563 ​ $ 2,828 ​ ​ The Trust had two dispositions during the six months ended June 30, 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Date ​ Property Name ​ Location ​ Property Type ​ ​ Units/ Square Footage/ Acres ​ Total Disposition Cost ​ Gain on Sale 5/11/23 ​ Applebee's Coon Rapids ​ Coon Rapids, MN ​ Retail ​ ​ 5576 square feet ​ $ 3,448 ​ $ 1,531 5/24/23 ​ Redpath ​ White Bear Lake, MN ​ Office ​ ​ 25817 square feet ​ ​ 4,710 ​ ​ 1,066 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 8,158 ​ $ 2,597 ​

ACQUISITIONS

ACQUISITIONS	6 Months Ended
	Jun. 30, 2024
ACQUISITIONS
ACQUISITIONS	NOTE 15 – ACQUISITIONS ​ The Trust had two acquisitions during the six months ended June 30, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Date ​ Property Name ​ Location ​ Property Type ​ ​ Units/ Square Footage/ Acres ​ Total Acquisition Cost 4/15/24 ​ Urban Plains ​ Fargo, ND ​ Apartment Complex ​ ​ 415 units ​ $ 17,152 6/26/24 ​ Lexington Lofts ​ Forest Lake, MN ​ Apartment Complex ​ ​ 355 units ​ ​ 71,159 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 88,311 ​ For the acquisition of Lexington Lofts, Sterling determined that it controls the key decision-making rights related to Lexington Lofts from the respective date it was acquired that most impact the economic benefits and obligations of the venture. The VIE that owned legal title to Lexington Lofts was included in Sterling’s consolidated financial statements as consolidated variable interest entities from the date it was acquired. ​ The Trust had no acquisitions during the six months ended June 30, 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ ​ 2024 ​ 2023 Real estate investment acquired ​ ​ $ 114,621 ​ $ - Acquired lease intangible assets ​ ​ ​ 2,261 ​ ​ - Assumed assets ​ ​ ​ 451 ​ ​ - Total Assets Acquired ​ ​ $ 117,333 ​ $ - Assumed loans ​ ​ ​ (80,774) ​ ​ - Other liabilities ​ ​ ​ (653) ​ ​ - Net assets acquired ​ ​ ​ 35,906 ​ ​ - Equity/limited partnership unit consideration ​ ​ ​ (7,396) ​ ​ - Net cash consideration ​ ​ $ 28,510 ​ $ - ​

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2024
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	​ NOTE 16 - SUBSEQUENT EVENTS ​ On July 12, 2024, we entered into a credit agreement with Gate City Bank for $14,800. The credit agreement has a five year term. The credit agreement will bear interest at an annualized variable rate equal to the prime rate ( 8.50% as of the Effective Date) less a 1.5% reduction, which equated to an annualized rate of 7.0% as of the Effective Date. ​ On July 15, 2024, we paid a dividend or distribution of $0.2875 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, 2024. ​ On July 25, 2024, the Trust disposed of a residential property located in Fargo, ND for a sales price of $1,500. ​ On August 1, 2024, the Trust entered into a joint venture whereby it acquired a 50% interest in the property commonly known as The Emory, a multifamily project in North Liberty, Iowa, for a total of $13,406. ​ Pending acquisitions and dispositions are subject to numerous conditions and contingencies and there are no assurances that the transactions will be completed. ​ We have evaluated subsequent events through the date of this filing. We are not aware of any other subsequent events which would require recognition or disclosure in the consolidated financial statements.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 2,320	$ 1,771	$ 4,059	$ 1,531

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

PRINCIPAL ACTIVITY AND SIGNIF_2

PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2024
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, 2023, 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, 2024. These adjustments are of a normal recurring nature. ​
Principles of Consolidation	Principles of Consolidation ​ The consolidated financial statements include the accounts of , Properties, LLLP, and wholly-owned limited liability companies. All significant intercompany transactions and balances have been eliminated in consolidation. ​ As of June 30, 2024 the Trust owned approximately 37.63% 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 LLLP Agreement and the individual’s respective redemption plan, these persons have the right to request the Operating Partnership redeem their OP Units following a specified restricted period. All redemptions are at the sole discretion of the Trust, acting for itself or in its capacity as General Partner of the Operating Partnership, and further subject to the conditions and limitations of the LLLP Agreement and redemption plans, as the same may be amended or modified from time to time. If the Trust accepts a redemption request, the redemption of OP Units shall be made in cash in an amount 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 and in its sole and absolute discretion, 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 the primary beneficiary of a variable interest entity (VIE) and has substantial influence and control of the entity. ​ In instances where the Trust determines that it is not the primary beneficiary of a VIE and 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 (losses) of unconsolidated affiliates on its consolidated statements of operations and comprehensive income. Additionally, the Trust’s net investment in the joint venture will be reflected as investment in unconsolidated entity on the consolidated balance sheets. See Note 5 for additional details regarding variable interest entities where the Trust uses the equity method of accounting. ​ 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.
Concentration of Credit Risk	Concentration of Credit Risk ​ Our cash balances are maintained in various bank deposit accounts. The bank deposit amounts in these accounts may exceed federally insured limits at various times throughout the year.
Use of Estimates	Use of Estimates ​ The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ​
Real Estate Investments	Real Estate Investments ​ Real estate investments are recorded at cost less accumulated depreciation. Ordinary repairs and maintenance are expensed as incurred. ​ During the third quarter of 2023, the Company completed a reassessment of the capitalization policy and determined that the Company would remove a stipulation for certain tangible assets to pass an additional percentage test of an amount of an entire property as well as add a new category related to Renovations and Improvement Projects that improve or extend the life of real estate assets. This reassessment was accounted for as a change in accounting estimate and was made on a prospective basis effective July 1, 2023. The change on policy did not have a significant impact on depreciation expense. ​ The Trust allocates the purchase price of each acquired investment property accounted for as an asset acquisition based upon the relative fair value at acquisition date of the individual assets acquired and liabilities assumed, which generally include (i) land, (ii) building and other improvements, (iii) in-place lease 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 a cost of the property. ​ For tangible assets acquired, including land, building and other improvements, the Trust considers available comparable market and industry information in estimating acquisition date fair value. 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 expensed as incurred. ​ Depreciation is provided for over the estimated useful lives of the individual assets using the straight-line method over the following estimated useful lives: ​ ​ ​ ​ ​ Buildings and improvements 40 years Furniture, fixtures and equipment 5 9 ​ The Trust’s investment properties are reviewed for potential impairment at the end of each reporting period or 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 our evaluation, there were no impairment losses during the three and six months ended June 30, 2024 and 2023.
Equity	Equity ​ The Amended and Restated Share Redemption Plan, effective June 20, 2024, permits us to repurchase common shares held by our shareholders and limited partnership units held by partners of our Operating Partnership, up to an aggregate amount of $75,000 worth of shares and units, upon request by the holders after they have held them for at least one year and subject to other conditions and limitations described in the plan. The amount remaining to be redeemed as of June 30, 2024, was $22,374. The redemption price for such shares and units redeemed under the plan was fixed at $21.85 per share or unit, which became effective January 1, 2022. The redemption plan will terminate in the event the shares become listed on any national securities exchange, the subject of bona fide quotes on any inter-dealer quotation system or electronic communications network or are the subject of bona fide quotes in the pink sheets. Additionally, the Board, in its sole discretion, may terminate, amend or suspend the redemption plan at any time if it determines to do so is in our best interest. ​ The Trust may, at its sole discretion, acting for itself, or as General Partner of the Limited Partnership, redeem up to an aggregate of $75,000 of Shares and/or Units presented to the Trust or Limited Partnership for cash to the extent it has sufficient proceeds to do so and subject to the conditions and limitations set forth herein. Any and all units redeemed by the Limited Partnership shall be canceled, and will have the status of authorized but unissued Units. Units acquired by the Limited Partnership through the Redemption Plan will not be reissued unless they are first registered with the Securities and Exchange Commission under the Securities Act of 1933, as amended, and other appropriate state securities laws or otherwise issued pursuant to exemptions from applicable registration requirements of such laws.
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 generally taxed on REIT distributions of ordinary income in 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 ​ The Trust is the lessor for its residential and commercial leases. Leases are analyzed on an individual basis to determine lease classification. As of June 30, 2024 all leases analyzed under the Trust’s lease classification process were determined to be operating leases.
Earnings per Common Share	Earnings per Common Share ​ Basic earnings per common share is computed by dividing net income available to common shareholders (the “numerator”) by the weighted average number of common shares outstanding (the “denominator”) during the period. Sterling had no dilutive potential common shares during the three and six months ended June 30, 2024 and 2023 and therefore, basic earnings per common share was equal to diluted earnings per common share for all periods presented. ​ For the six months ended June 30, 2024 and 2023, Sterling’s denominators for the basic and diluted earnings per common share were approximately 11,348,000 and 10,996,000 , respectively.

PRINCIPAL ACTIVITY AND SIGNIF_3

PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2024
PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES
Summary of Estimated Useful Life	​ ​ ​ ​ Buildings and improvements 40 years Furniture, fixtures and equipment 5 9

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	6 Months Ended
	Jun. 30, 2024
SEGMENT REPORTING
Summary of Segment Revenues and Net Operating Income	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2024 ​ Three months ended June 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential Commercial Total Residential Commercial Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ (in thousands) Income from rental operations ​ $ 34,248 ​ $ 5,049 ​ $ 39,297 ​ $ 30,574 ​ $ 4,976 ​ $ 35,550 Expenses from rental operations ​ ​ 19,355 ​ ​ 1,383 ​ ​ 20,738 ​ ​ 18,730 ​ ​ 1,426 ​ ​ 20,156 Net operating income ​ $ 14,893 ​ $ 3,666 ​ $ 18,559 ​ $ 11,844 ​ $ 3,550 ​ $ 15,394 Depreciation and amortization ​ ​ ​ ​ ​ ​ ​ ​ 7,033 ​ ​ ​ ​ ​ ​ ​ ​ 6,484 Interest ​ ​ ​ ​ ​ ​ ​ ​ 5,522 ​ ​ ​ ​ ​ ​ ​ ​ 5,331 Administration of REIT ​ ​ ​ ​ ​ ​ ​ ​ 1,540 ​ ​ ​ ​ ​ ​ ​ ​ 1,140 Other income ​ ​ ​ ​ ​ ​ ​ ​ (1,723) ​ ​ ​ ​ ​ ​ ​ ​ (2,290) Net income ​ ​ ​ ​ ​ ​ ​ $ 6,187 ​ ​ ​ ​ ​ ​ ​ $ 4,729 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2024 ​ Six months ended June 30, 2023 ​ Residential Commercial Total Residential Commercial Total ​ ​ (in thousands) ​ (in thousands) Income from rental operations ​ $ 66,403 ​ $ 10,155 ​ $ 76,558 ​ $ 60,494 ​ $ 10,236 ​ $ 70,730 Expenses from rental operations ​ ​ 38,481 ​ ​ 2,739 ​ ​ 41,220 ​ ​ 38,934 ​ ​ 3,143 ​ ​ 42,077 Net operating income ​ $ 27,922 ​ $ 7,416 ​ $ 35,338 ​ $ 21,560 ​ $ 7,093 ​ $ 28,653 Depreciation and amortization ​ ​ ​ ​ ​ ​ ​ ​ 12,942 ​ ​ ​ ​ ​ ​ ​ ​ 13,036 Interest ​ ​ ​ ​ ​ ​ ​ ​ 10,878 ​ ​ ​ ​ ​ ​ ​ ​ 10,687 Administration of REIT ​ ​ ​ ​ ​ ​ ​ ​ 2,886 ​ ​ ​ ​ ​ ​ ​ ​ 2,451 Other income ​ ​ ​ ​ ​ ​ ​ ​ (2,195) ​ ​ ​ ​ ​ ​ ​ ​ (1,562) Net income (loss) ​ ​ ​ ​ ​ ​ ​ $ 10,827 ​ ​ ​ ​ ​ ​ ​ $ 4,041
Summary of Segment Assets and Accumulated Depreciation	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of June 30, 2024 Residential Commercial Total ​ ​ (in thousands) Real estate investments ​ $ 911,914 ​ $ 177,126 ​ $ 1,089,040 Accumulated depreciation ​ ​ (173,529) ​ ​ (51,236) ​ ​ (224,765) Total real estate investments, net ​ $ 738,385 ​ $ 125,890 ​ $ 864,275 Lease intangible assets, less accumulated amortization ​ ​ 1,584 ​ ​ 2,663 ​ ​ 4,247 Cash and cash equivalents ​ ​ ​ ​ ​ ​ ​ ​ 6,218 Restricted deposits ​ ​ ​ ​ ​ ​ ​ ​ 14,867 Investment in unconsolidated affiliates ​ ​ ​ ​ ​ ​ ​ ​ 23,969 Notes receivable ​ ​ ​ ​ ​ ​ ​ ​ 7,922 Assets held for sale ​ ​ ​ ​ ​ ​ ​ ​ 1,220 Other assets, net ​ ​ ​ ​ ​ ​ ​ ​ 27,273 Total Assets ​ ​ ​ ​ ​ ​ ​ $ 949,991 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2023 Residential Commercial Total ​ ​ (in thousands) Real estate investments ​ $ 789,249 ​ $ 181,555 ​ $ 970,804 Accumulated depreciation ​ ​ (164,793) ​ ​ (49,791) ​ ​ (214,584) Total real estate investments, net ​ $ 624,456 ​ $ 131,764 ​ $ 756,220 Lease intangible assets, less accumulated amortization ​ ​ — ​ ​ 2,983 ​ ​ 2,983 Cash and cash equivalents ​ ​ ​ ​ ​ ​ ​ ​ 26,919 Restricted deposits ​ ​ ​ ​ ​ ​ ​ ​ 10,142 Investment in unconsolidated affiliates ​ ​ ​ ​ ​ ​ ​ ​ 26,601 Notes receivable ​ ​ ​ ​ ​ ​ ​ ​ 8,885 Assets held for sale ​ ​ ​ ​ ​ ​ ​ ​ 1,568 Other assets, net ​ ​ ​ ​ ​ ​ ​ ​ 21,515 Total Assets ​ ​ ​ ​ ​ ​ ​ $ 854,833 ​

RESTRICTED DEPOSITS AND FUNDE_2

RESTRICTED DEPOSITS AND FUNDED RESERVES (Tables)	6 Months Ended
	Jun. 30, 2024
RESTRICTED DEPOSITS AND FUNDED RESERVES
Schedule of restricted deposits and funded reserves	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of June 30, ​ As of December 31, ​ ​ ​ ​ ​ 2024 ​ 2023 ​ ​ ​ ​ ​ (in thousands) Tenant security deposits ​ ​ ​ ​ $ 8,015 ​ $ 6,945 Real estate tax and insurance escrows ​ ​ ​ ​ ​ 403 ​ ​ 676 Replacement reserves ​ ​ ​ ​ ​ 106 ​ ​ 1,443 Other funded reserves ​ ​ ​ ​ ​ 6,343 ​ ​ 1,078 ​ ​ ​ ​ ​ $ 14,867 ​ $ 10,142 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

INVESTMENT IN UNCONSOLIDATED _2

INVESTMENT IN UNCONSOLIDATED AFFILIATES (Tables)	6 Months Ended
	Jun. 30, 2024
INVESTMENT IN UNCONSOLIDATED AFFILIATES
Schedule of investments in unconsolidated real estate ventures	The Company’s investments in unconsolidated real estate ventures, are summarized as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Investment in Unconsolidated Affiliates at Unconsolidated Affiliates ​ ​ Date Acquired ​ ​ Trust Ownership Interest ​ June 30, 2024 ​ December 31, 2023 Banner Building ​ ​ 2007 ​ ​ 66.67% ​ $ (490) ​ $ (478) Grand Forks INREIT, LLC ​ ​ 2003 ​ ​ 50% ​ ​ 5,262 ​ ​ 5,193 SE Savage, LLC ​ ​ 2019 ​ ​ 60% ​ ​ 579 ​ ​ 954 SE Maple Grove, LLC ​ ​ 2019 ​ ​ 60% ​ ​ 368 ​ ​ 735 SE Rogers, LLC ​ ​ 2020 ​ ​ 60% ​ ​ 1,122 ​ ​ 1,419 ST Oak Cliff, LLC ​ ​ 2021 ​ ​ 70% ​ ​ 7,258 ​ ​ 7,920 SE Brooklyn Park, LLC ​ ​ 2021 ​ ​ 60% ​ ​ 1,212 ​ ​ 1,748 ST Fossil Creek, LLC ​ ​ 2022 ​ ​ 70% ​ ​ 8,658 ​ ​ 9,110 ​ ​ ​ ​ ​ ​ ​ ​ $ 23,969 ​ $ 26,601
Schedule of financial position of unconsolidated entities	​ The following is a summary of the financial position of the unconsolidated affiliates at June 30, 2024 and December 31, 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2024 December 31, 2023 ​ ​ (in thousands) ASSETS ​ ​ ​ ​ ​ ​ Real estate investments ​ $ 268,073 ​ $ 261,901 Accumulated depreciation ​ ​ (31,330) ​ ​ (26,191) ​ ​ ​ 236,743 ​ ​ 235,710 Cash and cash equivalents ​ ​ 1,937 ​ ​ 3,388 Restricted deposits ​ ​ 901 ​ ​ 883 Intangible assets, less accumulated amortization ​ ​ 781 ​ ​ 813 Other assets, net ​ ​ 1,026 ​ ​ 780 Total Assets ​ $ 241,388 ​ $ 241,574 ​ ​ ​ ​ ​ ​ ​ LIABILITIES ​ ​ ​ ​ ​ ​ Mortgage notes payable, net ​ $ 196,701 ​ $ 191,890 Tenant security deposits payable ​ ​ 402 ​ ​ 340 Accrued expenses and other liabilities ​ ​ 6,289 ​ ​ 7,208 Total Liabilities ​ $ 203,392 ​ $ 199,438 SHAREHOLDERS' EQUITY ​ ​ ​ ​ ​ ​ Total Shareholders' Equity ​ $ 37,996 ​ $ 42,136 ​ ​ ​ ​ ​ ​ ​ Total liabilities and shareholders' equity ​ $ 241,388 ​ $ 241,574 ​ ​ The following is a summary of results of operations of the unconsolidated affiliates for the three and six months ended June 30, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, ​ Six months ended June 30, ​ 2024 2023 2024 2023 ​ ​ (in thousands) ​ ​ (in thousands) Income from rental operations ​ $ 6,213 ​ $ 4,633 ​ $ 12,012 ​ $ 8,340 Expenses from rental operations ​ ​ 2,879 ​ ​ 1,717 ​ ​ 5,673 ​ ​ 3,495 Net operating income ​ $ 3,334 ​ $ 2,916 ​ $ 6,339 ​ $ 4,845 Depreciation and Amortization ​ ​ 2,699 ​ ​ 2,441 ​ ​ 5,181 ​ ​ 4,933 Interest ​ ​ 1,611 ​ ​ 1,448 ​ ​ 3,239 ​ ​ 2,792 Other expense ​ ​ - ​ ​ 98 ​ ​ - ​ ​ 13 Net loss ​ $ (976) ​ $ (1,071) ​ $ (2,081) ​ $ (2,893) ​

LEASE INTANGIBLES (Tables)

LEASE INTANGIBLES (Tables)	6 Months Ended
	Jun. 30, 2024
LEASE INTANGIBLES
Schedule of intangible assets and liabilities and accumulated amortization	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lease ​ Accumulated ​ Lease As of June 30, 2024 Intangibles Amortization Intangibles, net Lease Intangible Assets ​ (in thousands) In-place leases ​ $ 16,188 ​ $ (12,386) ​ $ 3,802 Above-market leases ​ ​ 1,415 ​ ​ (970) ​ ​ 445 ​ ​ $ 17,603 ​ $ (13,356) ​ $ 4,247 Lease Intangible Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ Below-market leases ​ $ (2,314) ​ $ 1,917 ​ $ (397) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lease ​ Accumulated ​ Lease As of December 31, 2023 Intangibles Amortization Intangibles, net Lease Intangible Assets ​ (in thousands) In-place leases ​ $ 13,927 ​ $ (11,434) ​ $ 2,493 Above-market leases ​ ​ 1,415 ​ ​ (925) ​ ​ 490 ​ ​ $ 15,342 ​ $ (12,359) ​ $ 2,983 Lease Intangible Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ Below-market leases ​ $ (2,314) ​ $ 1,844 ​ $ (470)
Schedule of estimated aggregate amortization expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intangible ​ Intangible Years ending December 31, Assets Liabilities ​ ​ (in thousands) 2024 (July - December) ​ $ 1,706 ​ $ 74 2025 ​ ​ 839 ​ ​ 147 2026 ​ ​ 490 ​ ​ 77 2027 ​ ​ 381 ​ ​ 38 2028 ​ ​ 311 ​ ​ 19 Thereafter ​ ​ 520 ​ ​ 42 ​ ​ $ 4,247 ​ $ 397 ​

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2024
NOTES PAYABLE
Schedule of Mortgage Notes Payable	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Principal Balance At ​ ​ June 30, ​ December 31, ​ ​ 2024 ​ 2023 ​ ​ (in thousands) Fixed rate mortgage notes payable (a) ​ $ 590,339 ​ $ 520,155 Less unamortized debt issuance costs ​ ​ 1,885 ​ ​ 2,036 ​ ​ $ 588,454 ​ $ 518,119 (a) Includes $128,967 and $103,246 of variable rate mortgage debt that was swapped to a fixed rate at June 30, 2024 and December 31, 2023, respectively.
Scheduled Maturities of Mortgage Notes Payable	​ ​ ​ ​ ​ Years ending December 31, Amount ​ ​ (in thousands) 2024 ​ $ 14,670 2025 ​ ​ 105,207 2026 ​ ​ 71,294 2027 ​ ​ 79,009 2028 ​ ​ 42,638 Thereafter ​ ​ 277,521 Total payments ​ $ 590,339 ​

DERIVATIVES AND HEDGING ACTIV_2

DERIVATIVES AND HEDGING ACTIVITIES (Tables)	6 Months Ended
	Jun. 30, 2024
DERIVATIVES AND HEDGING ACTIVITIES
Schedule of interest rate swaps	The following table summarizes the Trust’s interest rate swaps as of June 30, 2024, which effectively convert one month floating rate LIBOR or 30-day average SOFR to a fixed rate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed ​ ​ Effective Date ​ Notional ​ Interest Rate ​ Maturity Date November 1, 2019 $ 6,257 ​ 3.15% ​ November 1, 2029 November 1, 2019 $ 4,353 ​ 3.28% ​ November 1, 2029 January 10, 2020 $ 2,841 ​ 3.39% ​ January 10, 2030 December 2, 2020 $ 11,817 ​ 2.91% ​ December 2, 2027 July 1, 2021 $ 24,665 ​ 2.99% ​ July 1, 2031 November 10, 2021 $ 27,175 ​ 3.54% ​ August 1, 2029 December 1, 2021 $ 10,363 ​ 3.32% ​ December 1, 2031 August 15, 2022 $ 1,420 ​ 3.07% ​ June 15, 2030 August 15, 2022 $ 2,752 ​ 3.07% ​ June 15, 2030 August 15, 2022 $ 1,537 ​ 2.94% ​ June 15, 2030 August 15, 2022 $ 4,067 ​ 2.94% ​ June 15, 2030 May 10, 2023 $ 4,575 ​ 2.79% ​ June 10, 2030 April 15, 2024 $ 9,767 ​ 3.57% ​ May 15, 2032 April 15, 2024 $ 3,813 ​ 3.57% ​ May 15, 2032 April 15, 2024 $ 13,565 ​ 3.57% ​ May 15, 2032 ​ 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, 2024 ​ December 31, 2023 ​ June 30, 2024 ​ December 31, 2023 Interest rate swaps ​ 15 ​ 12 $ 128,967 $ 103,246
Schedule of the estimated fair value of derivatives	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives designated as ​ June 30, 2024 ​ December 31, 2023 cash flow hedges: ​ Balance Sheet Location ​ Fair Value ​ Balance Sheet Location ​ Fair Value Interest rate swaps ​ Other assets, net $ 15,786 ​ Other assets, net $ 11,362
Schedule of the effect of the derivatives	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Location of Gain ​ ​ ​ ​ Amount of Gain ​ Reclassified from ​ ​ Derivatives in ​ Recognized in Other ​ Accumulated other ​ Amount of (Gain)/Loss Cash Flow Hedging ​ Comprehensive Income ​ Comprehensive Income ​ Reclassified from Relationships ​ on Derivatives ​ (AOCI) into Income ​ AOCI into Income ​ ​ 2024 ​ ​ ​ 2024 Interest rate swaps $ (2,908) ​ Interest expense $ (1,042) ​ ​ 2023 ​ ​ ​ 2023 Interest rate swaps $ (2,023) ​ Interest expense $ (917) ​ The following table presents the effect of the Trust’s derivative financial instruments on the accompanying consolidated statements of operations and other comprehensive income for the six months ended June 30, 2024 and 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Location of Gain ​ ​ Derivatives in ​ Recognized in Other ​ Accumulated other ​ Amount of (Gain)/Loss Cash Flow Hedging ​ Comprehensive Income ​ Comprehensive Income ​ Reclassified from Relationships ​ on Derivatives ​ (AOCI) into Income ​ AOCI into Income ​ ​ 2024 ​ ​ ​ 2024 Interest rate swaps $ (4,425) ​ Interest expense $ (2,071) ​ ​ 2023 ​ ​ ​ 2023 Interest rate swaps $ 355 ​ Interest expense $ (1,682)

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	6 Months Ended
	Jun. 30, 2024
FAIR VALUE MEASUREMENT
Carrying Value and Estimated Fair Value of Company's Financial Instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2024 ​ December 31, 2023 ​ ​ Carrying ​ ​ ​ ​ Carrying ​ ​ ​ ​ Value Fair Value Value Fair Value ​ ​ (in thousands) Financial assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investments ​ $ — ​ $ — ​ $ — ​ $ — Notes receivable ​ $ 7,922 ​ $ 8,617 ​ $ 8,885 ​ $ 10,025 Derivative assets ​ $ 15,786 ​ $ 15,786 ​ $ 11,362 ​ $ 11,362 ​ ​ ​ Financial liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage notes payable ​ $ 590,339 ​ $ 480,048 ​ $ 520,155 ​ $ 477,344
Schedule of Fair Value of Liabilities on Recurring Basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Level 2 Level 3 Total ​ ​ (in thousands) June 30, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative assets ​ $ — ​ $ 15,786 ​ $ — ​ $ 15,786 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative assets ​ $ — ​ $ 11,362 ​ $ — ​ $ 11,362
Fair Value of Company's Financial Assets and Liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Level 2 Level 3 Total ​ ​ (in thousands) June 30, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Line of Credit ​ $ — ​ $ — ​ $ 5,176 ​ $ 5,176 Mortgage notes payable ​ $ — ​ $ — ​ $ 480,048 ​ $ 480,048 Note payable ​ $ ​ ​ $ ​ ​ $ 8,500 ​ $ 8,500 Notes receivable ​ $ — ​ $ — ​ $ 8,617 ​ $ 8,617 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage notes payable ​ $ — ​ $ — ​ $ 477,344 ​ $ 477,344 Notes receivable ​ $ — ​ $ — ​ $ 10,025 ​ $ 10,025

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2024
LEASES
Schedule of lease Income related to the Company's operating leases	​ Lease income related to the Company’s operating leases is comprised of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2024 ​ Residential Commercial Total ​ ​ (in thousands) Lease income related to fixed lease payments ​ $ 32,696 ​ $ 3,873 ​ $ 36,569 Lease income related to variable lease payments ​ ​ 1 ​ ​ 1,194 ​ ​ 1,195 Other (a) ​ ​ (263) ​ ​ (55) ​ ​ (318) Lease Income (b) ​ $ 32,434 ​ $ 5,012 ​ $ 37,446 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2023 ​ Residential Commercial Total ​ ​ (in thousands) Lease income related to fixed lease payments ​ $ 29,165 ​ $ 3,920 ​ $ 33,085 Lease income related to variable lease payments ​ ​ — ​ ​ 899 ​ ​ 899 Other (a) ​ ​ (160) ​ ​ 86 ​ ​ (74) Lease Income (b) ​ $ 29,005 ​ $ 4,905 ​ $ 33,910 ​ (a) For the three months ended June 30, 2024 and 2023, “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, 2024 and 2023 of $1,850 and $1,640 , respectively, which is accounted for under the revenue recognition standard. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2024 ​ Residential Commercial Total ​ ​ (in thousands) Lease income related to fixed lease payments ​ $ 63,551 ​ $ 7,780 ​ $ 71,331 Lease income related to variable lease payments ​ ​ 1 ​ ​ 2,339 ​ ​ 2,340 Other (a) ​ ​ (483) ​ ​ (41) ​ ​ (524) Lease Income (b) ​ $ 63,069 ​ $ 10,078 ​ $ 73,147 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2023 ​ Residential Commercial Total ​ ​ (in thousands) Lease income related to fixed lease payments ​ $ 57,820 ​ $ 7,864 ​ $ 65,684 Lease income related to variable lease payments ​ ​ — ​ ​ 2,096 ​ ​ 2,096 Other (a) ​ ​ (279) ​ ​ 181 ​ ​ (98) Lease Income (b) ​ $ 57,541 ​ $ 10,141 ​ $ 67,682 ​ ​ (a) For the six months ended June 30, 2024 and 2023, “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, 2024 and 2023 of $3,408 and $3,048 , respectively, which is accounted for under the revenue recognition standard.
Schedule of future minimum rental income	​ ​ ​ ​ ​ Years ending December 31, Amount ​ ​ (in thousands) 2024 (July - December) ​ $ 9,009 2025 ​ ​ 15,020 2026 ​ ​ 14,252 2027 ​ ​ 12,769 2028 ​ ​ 11,797 Thereafter ​ ​ 35,524 ​ ​ $ 98,371 ​

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Jun. 30, 2024
RELATED PARTY TRANSACTIONS
Schedule of fees incurred and payable to Advisor	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months ended June 30, ​ ​ 2024 ​ 2023 ​ ​ (in thousands) Fee: ​ ​ ​ ​ ​ ​ Advisory ​ $ 1,940 ​ $ 1,901 Acquisition ​ $ 750 ​ $ - Disposition ​ $ 264 ​ $ 204 Financing ​ $ 96 ​ $ 68 Development ​ $ 350 ​ $ - Project Management ​ $ 374 ​ $ 249 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payable at ​ ​ June 30, ​ December 31, ​ ​ 2024 ​ 2023 ​ ​ (in thousands) Fee: ​ ​ ​ ​ ​ ​ Advisory ​ $ 37 ​ $ 316 Acquisition ​ $ 375 ​ $ - Financing ​ $ 59 ​ $ -

DISPOSITIONS (Tables)

DISPOSITIONS (Tables)	6 Months Ended
	Jun. 30, 2024
DISPOSITIONS
Summary of dispositions	The Trust had eight dispositions during the six months ended June 30, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Date ​ Property Name ​ Location ​ Property Type ​ ​ Units/ Square Footage/ Acres ​ Total Disposition Cost ​ Gain/(Loss) on Sale 1/25/24 ​ Dairy Queen ​ Apple Valley, MN ​ Retail ​ ​ 5348 square feet ​ $ 1,607 ​ $ (68) 3/1/24 ​ Westwind ​ Fargo, ND ​ Apartment Complex ​ ​ 18 units ​ ​ 900 ​ ​ 489 3/8/24 ​ Westside ​ Hawley, MN ​ Apartment Complex ​ ​ 14 units ​ ​ 837 ​ ​ 394 4/3/24 ​ Columbia Park Village ​ Grand Forks, ND ​ Apartment Complex ​ ​ 12 units ​ ​ 675 ​ ​ 42 5/1/24 ​ Gate City Bank ​ Grand Forks, ND ​ Office ​ ​ 17407 square feet ​ ​ 2,950 ​ ​ 974 5/21/24 ​ First International Bank & Trust ​ Moorhead, MN ​ Office ​ ​ 3510 square feet ​ ​ 1,516 ​ ​ 683 6/14/24 ​ Jadestone ​ Fargo, ND ​ Apartment Complex ​ ​ 18 units ​ ​ 1,039 ​ ​ 136 6/14/24 ​ Essex ​ Fargo, ND ​ Apartment Complex ​ ​ 18 units ​ ​ 1,039 ​ ​ 178 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 10,563 ​ $ 2,828 ​ ​ The Trust had two dispositions during the six months ended June 30, 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Date ​ Property Name ​ Location ​ Property Type ​ ​ Units/ Square Footage/ Acres ​ Total Disposition Cost ​ Gain on Sale 5/11/23 ​ Applebee's Coon Rapids ​ Coon Rapids, MN ​ Retail ​ ​ 5576 square feet ​ $ 3,448 ​ $ 1,531 5/24/23 ​ Redpath ​ White Bear Lake, MN ​ Office ​ ​ 25817 square feet ​ ​ 4,710 ​ ​ 1,066 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 8,158 ​ $ 2,597 ​

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	6 Months Ended
	Jun. 30, 2024
ACQUISITIONS
Schedule of acquisitions	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Date ​ Property Name ​ Location ​ Property Type ​ ​ Units/ Square Footage/ Acres ​ Total Acquisition Cost 4/15/24 ​ Urban Plains ​ Fargo, ND ​ Apartment Complex ​ ​ 415 units ​ $ 17,152 6/26/24 ​ Lexington Lofts ​ Forest Lake, MN ​ Apartment Complex ​ ​ 355 units ​ ​ 71,159 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 88,311
Schedule of acquisition date fair values, before prorations recorded in conjunction with acquisitions	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ ​ 2024 ​ 2023 Real estate investment acquired ​ ​ $ 114,621 ​ $ - Acquired lease intangible assets ​ ​ ​ 2,261 ​ ​ - Assumed assets ​ ​ ​ 451 ​ ​ - Total Assets Acquired ​ ​ $ 117,333 ​ $ - Assumed loans ​ ​ ​ (80,774) ​ ​ - Other liabilities ​ ​ ​ (653) ​ ​ - Net assets acquired ​ ​ ​ 35,906 ​ ​ - Equity/limited partnership unit consideration ​ ​ ​ (7,396) ​ ​ - Net cash consideration ​ ​ $ 28,510 ​ $ - ​

ORGANIZATION - Additional Infor

ORGANIZATION - Additional Information (Details)	Jun. 30, 2024	Dec. 31, 2023
ORGANIZATION
Ownership in operating partnership (as a percent)	37.63%	37.72%

PRINCIPAL ACTIVITY AND SIGNIF_4

PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES - Principles of Consolidation (Details)	Jun. 30, 2024	Dec. 31, 2023
PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES
Ownership in operating partnership (as a percent)	37.63%	37.72%

PRINCIPAL ACTIVITY AND SIGNIF_5

PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES - Real Estate Investments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Real Estate Investments
Loss on impairment of property	$ 0	$ 0	$ 0	$ 0
Building and improvements
Real Estate Investments
Estimated useful life	40 years		40 years
Furniture, fixtures and equipment | Minimum
Real Estate Investments
Estimated useful life	5 years		5 years
Furniture, fixtures and equipment | Maximum
Real Estate Investments
Estimated useful life	9 years		9 years

PRINCIPAL ACTIVITY AND SIGNIF_6

PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES - Equity (Details) - Amended and Restated Share Redemption Plan - USD ($) $ / shares in Units, $ in Thousands	Jun. 20, 2024	Jun. 30, 2024
Equity
Remaining amount of securities to be redeemed		$ 22,374
Redemption price of securities (in dollars per share)	$ 21.85
Maximum
Equity
Amount authorized for repurchase of securities	$ 75,000

PRINCIPAL ACTIVITY AND SIGNIF_7

PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES - Federal Income Taxes (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES
Taxable income to be distributed	90%
Retainable taxable income	10%
Provisions or liabilities for income taxes	$ 0

PRINCIPAL ACTIVITY AND SIGNIF_8

PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES - Earnings per Common Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings per Common Share
Dilutive potential common shares	0	0	0	0
Weighted average common shares outstanding, basic	11,357,000	11,039,000	11,348,000	10,996,000
Weighted average common shares outstanding, diluted	11,357,000	11,039,000	11,348,000	10,996,000

SEGMENT REPORTING - Additional

SEGMENT REPORTING - Additional Information (Details)	6 Months Ended
	Jun. 30, 2024 segment
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, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
SEGMENT REPORTING
Income from rental operations	$ 39,297		$ 35,550		$ 76,558	$ 70,730
Expenses from rental operations	20,738		20,156		41,220	42,077
Net operating income	18,559		15,394		35,338	28,653
Depreciation and amortization	7,033		6,484		12,942	13,036
Interest	5,522		5,331		10,878	10,687
Administration of REIT	1,540		1,140		2,886	2,451
Other income	(1,723)		(2,290)		(2,195)	(1,562)
Net income	6,187	$ 4,642	4,729	$ (688)	10,827	4,041
Residential
SEGMENT REPORTING
Income from rental operations	34,248		30,574		66,403	60,494
Expenses from rental operations	19,355		18,730		38,481	38,934
Net operating income	14,893		11,844		27,922	21,560
Commercial
SEGMENT REPORTING
Income from rental operations	5,049		4,976		10,155	10,236
Expenses from rental operations	1,383		1,426		2,739	3,143
Net operating income	$ 3,666		$ 3,550		$ 7,416	$ 7,093

SEGMENT REPORTING - Summary o_2

SEGMENT REPORTING - Summary of Segment Assets and Accumulated Depreciation (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
SEGMENT REPORTING
Real estate investments	$ 1,089,040	$ 970,804
Accumulated depreciation	(224,765)	(214,584)
Total real estate investments, net	864,275	756,220
Lease intangible assets, less accumulated amortization	4,247	2,983
Cash and cash equivalents	6,218	26,919	$ 6,182
Restricted deposits	14,867	10,142	$ 9,093
Investment in unconsolidated affiliates	23,969	26,601
Notes receivable	7,922	8,885
Assets held for sale	1,220	1,568
Other assets, net	27,273	21,515
Total Assets	949,991	854,833
Residential
SEGMENT REPORTING
Real estate investments	911,914	789,249
Accumulated depreciation	(173,529)	(164,793)
Total real estate investments, net	738,385	624,456
Lease intangible assets, less accumulated amortization	1,584
Commercial
SEGMENT REPORTING
Real estate investments	177,126	181,555
Accumulated depreciation	(51,236)	(49,791)
Total real estate investments, net	125,890	131,764
Lease intangible assets, less accumulated amortization	$ 2,663	$ 2,983

RESTRICTED DEPOSITS AND FUNDE_3

RESTRICTED DEPOSITS AND FUNDED RESERVES - Summary of Restricted Deposits and Funded Reserves (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
RESTRICTED DEPOSITS AND FUNDED RESERVES
Tenant security deposits	$ 8,015	$ 6,945
Real estate tax and insurance escrows	403	676
Replacement reserves	106	1,443
Other funded reserves	6,343	1,078
Restricted deposits, Total	$ 14,867	$ 10,142	$ 9,093

INVESTMENT IN UNCONSOLIDATED _3

INVESTMENT IN UNCONSOLIDATED AFFILIATES - Total investments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Investment in Unconsolidated Affiliates
Investment in unconsolidated affiliates	$ 23,969	$ 26,601
Operating Partnership
Investment in Unconsolidated Affiliates
Investment in unconsolidated affiliates	$ 23,969	26,601
Operating Partnership | Banner Building
Investment in Unconsolidated Affiliates
Trust Ownership Interest (as a percent)	66.67%
Investment in unconsolidated affiliates	$ (490)	(478)
Operating Partnership | Grand Forks INREIT, LLC
Investment in Unconsolidated Affiliates
Trust Ownership Interest (as a percent)	50%
Investment in unconsolidated affiliates	$ 5,262	5,193
Operating Partnership | SE Savage, LLC
Investment in Unconsolidated Affiliates
Trust Ownership Interest (as a percent)	60%
Investment in unconsolidated affiliates	$ 579	954
Operating Partnership | SE Maple Grove, LLC
Investment in Unconsolidated Affiliates
Trust Ownership Interest (as a percent)	60%
Investment in unconsolidated affiliates	$ 368	735
Operating Partnership | SE Rogers, LLC
Investment in Unconsolidated Affiliates
Trust Ownership Interest (as a percent)	60%
Investment in unconsolidated affiliates	$ 1,122	1,419
Operating Partnership | ST Oak Cliff, LLC
Investment in Unconsolidated Affiliates
Trust Ownership Interest (as a percent)	70%
Investment in unconsolidated affiliates	$ 7,258	7,920
Operating Partnership | SE Brooklyn Park, LLC
Investment in Unconsolidated Affiliates
Trust Ownership Interest (as a percent)	60%
Investment in unconsolidated affiliates	$ 1,212	1,748
Operating Partnership | ST Fossil Creek, LLC
Investment in Unconsolidated Affiliates
Trust Ownership Interest (as a percent)	70%
Investment in unconsolidated affiliates	$ 8,658	$ 9,110

INVESTMENT IN UNCONSOLIDATED _4

INVESTMENT IN UNCONSOLIDATED AFFILIATES - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Banner Building | First Mortgage
Investment in Unconsolidated Affiliates
Mortgage balance	$ 6,630	$ 6,724
Grand Forks INREIT, LLC | First Mortgage
Investment in Unconsolidated Affiliates
Mortgage balance	8,822	8,948
SE Savage, LLC | First Mortgage
Investment in Unconsolidated Affiliates
Mortgage balance	30,090	30,305
SE Savage, LLC | Promissory Note
Investment in Unconsolidated Affiliates
Face amount of debt	22	468
SE Maple Grove, LLC | First Mortgage
Investment in Unconsolidated Affiliates
Mortgage balance	24,398	24,633
SE Maple Grove, LLC | Second Mortgage
Investment in Unconsolidated Affiliates
Mortgage balance	3,428	3,643
SE Rogers, LLC
Investment in Unconsolidated Affiliates
Assets of unconsolidated investee	29,887	30,576
SE Rogers, LLC | First Mortgage
Investment in Unconsolidated Affiliates
Mortgage balance	25,500	25,742
SE Rogers, LLC | Second Mortgage
Investment in Unconsolidated Affiliates
Mortgage balance	2,100	2,117
ST Oak Cliff, LLC
Investment in Unconsolidated Affiliates
Assets of unconsolidated investee	48,125	48,738
Mortgage balance	36,708	36,246
SE Brooklyn Park, LLC
Investment in Unconsolidated Affiliates
Assets of unconsolidated investee	28,915	30,325
SE Brooklyn Park, LLC | First Mortgage
Investment in Unconsolidated Affiliates
Mortgage balance	24,471	24,592
SE Brooklyn Park, LLC | Second Mortgage
Investment in Unconsolidated Affiliates
Mortgage balance	2,294	2,538
ST Fossil Creek, LLC
Investment in Unconsolidated Affiliates
Assets of unconsolidated investee	48,675	43,517
Mortgage balance	$ 32,767	$ 26,657
Operating Partnership | Banner Building
Investment in Unconsolidated Affiliates
Trust Ownership Interest (as a percent)	66.67%
Operating Partnership | Grand Forks INREIT, LLC
Investment in Unconsolidated Affiliates
Trust Ownership Interest (as a percent)	50%
Percentage of interest	100%
Operating Partnership | SE Savage, LLC
Investment in Unconsolidated Affiliates
Trust Ownership Interest (as a percent)	60%
Operating Partnership | SE Maple Grove, LLC
Investment in Unconsolidated Affiliates
Trust Ownership Interest (as a percent)	60%
Operating Partnership | SE Rogers, LLC
Investment in Unconsolidated Affiliates
Trust Ownership Interest (as a percent)	60%
Operating Partnership | ST Oak Cliff, LLC
Investment in Unconsolidated Affiliates
Trust Ownership Interest (as a percent)	70%
Operating Partnership | SE Brooklyn Park, LLC
Investment in Unconsolidated Affiliates
Trust Ownership Interest (as a percent)	60%
Operating Partnership | ST Fossil Creek, LLC
Investment in Unconsolidated Affiliates
Trust Ownership Interest (as a percent)	70%
Cash contribution	$ 9,275

INVESTMENT IN UNCONSOLIDATED _5

INVESTMENT IN UNCONSOLIDATED AFFILIATES - Summary of financial position (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
ASSETS
Real estate investments	$ 1,089,040		$ 970,804
Accumulated depreciation	(224,765)		(214,584)
Total real estate investments, net	864,275		756,220
Cash and cash equivalents	6,218		26,919	$ 6,182
Restricted deposits	14,867		10,142	9,093
Intangible assets, less accumulated amortization	4,247		2,983
Other assets, net	27,273		21,515
Total Assets	949,991		854,833
LIABILITIES
Tenant security deposits payable	8,532		7,104
Accrued expenses and other liabilities	17,951		19,239
Total Liabilities	638,323		553,513
SHAREHOLDERS' EQUITY
Total Shareholders' Equity	311,668	$ 300,108	301,320	$ 312,353	$ 314,037	$ 323,466
Total liabilities and shareholders' equity	949,991		854,833
Unconsolidated affiliates
ASSETS
Real estate investments	268,073		261,901
Accumulated depreciation	(31,330)		(26,191)
Total real estate investments, net	236,743		235,710
Cash and cash equivalents	1,937		3,388
Restricted deposits	901		883
Intangible assets, less accumulated amortization	781		813
Other assets, net	1,026		780
Total Assets	241,388		241,574
LIABILITIES
Mortgage notes payable, net	196,701		191,890
Tenant security deposits payable	402		340
Accrued expenses and other liabilities	6,289		7,208
Total Liabilities	203,392		199,438
SHAREHOLDERS' EQUITY
Total Shareholders' Equity	37,996		42,136
Total liabilities and shareholders' equity	$ 241,388		$ 241,574

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, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Investment in Unconsolidated Affiliates
Income from rental operations	$ 39,297		$ 35,550		$ 76,558	$ 70,730
Expenses from rental operations	33,293		31,971		65,040	65,800
Income from operations	4,464		2,439		8,632	2,479
Depreciation and Amortization	7,033		6,484		12,942	13,036
Interest	5,522		5,331		10,878	10,687
Other income	387		340		780	747
Net income	6,187	$ 4,642	4,729	$ (688)	10,827	4,041
Unconsolidated affiliates
Investment in Unconsolidated Affiliates
Income from rental operations	6,213		4,633		12,012	8,340
Expenses from rental operations	2,879		1,717		5,673	3,495
Income from operations	3,334		2,916		6,339	4,845
Depreciation and Amortization	2,699		2,441		5,181	4,933
Interest	1,611		1,448		3,239	2,792
Other expense			98			13
Net income	$ (976)		$ (1,071)		$ (2,081)	$ (2,893)

LEASE INTANGIBLES - Schedule of

LEASE INTANGIBLES - Schedule of Intangible Assets and Liabilities and Accumulated Amortization (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Lease Intangible Assets
Lease Intangibles	$ 17,603	$ 15,342
Accumulated Amortization	(13,356)	(12,359)
Total	4,247	2,983
Lease Intangible Liabilities
Below-market lease	(2,314)	(2,314)
Below-market lease, accumulated amortization	1,917	1,844
Below-market lease, net	(397)	(470)
In-place leases
Lease Intangible Assets
Lease Intangibles	16,188	13,927
Accumulated Amortization	(12,386)	(11,434)
Total	3,802	2,493
Above-market leases
Lease Intangible Assets
Lease Intangibles	1,415	1,415
Accumulated Amortization	(970)	(925)
Total	$ 445	$ 490

LEASE INTANGIBLES - Schedule _2

LEASE INTANGIBLES - Schedule of Estimated Aggregate Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Intangible Assets
2024 (July - December)	$ 1,706
2025	839
2026	490
2027	381
2028	311
Thereafter	520
Total	4,247	$ 2,983
Intangible Liabilities
2024 (July - December)	74
2025	147
2026	77
2027	38
2028	19
Thereafter	42
Total	$ 397	$ 470

LINES OF CREDIT - Additional In

LINES OF CREDIT - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Lines of Credit
Line of credit outstanding	$ 5,176	$ 0
Bremer Bank Agreement One
Lines of Credit
Agreed line of credit	$ 4,915
Variable interest rate of line of credit	2%
Expiration date	Dec. 01, 2026
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]	us-gaap:SecuredOvernightFinancingRateSofrMember
Bremer Bank Agreement Two
Lines of Credit
Agreed line of credit	$ 3,500
Variable interest rate of line of credit	2%
Expiration date	Dec. 01, 2026
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]	us-gaap:SecuredOvernightFinancingRateSofrMember

NOTES PAYABLE - Summary (Detail

NOTES PAYABLE - Summary (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023	Jun. 25, 2024
MORTGAGE NOTES PAYABLE
Notes payable	$ 8,500
Long-term debt, gross	590,339
Mortgage Notes Payable
MORTGAGE NOTES PAYABLE
Less unamortized debt issuance costs	1,885	$ 2,036
Long-term debt, net	588,454	518,119
Bell Bank
MORTGAGE NOTES PAYABLE
Face amount of debt			$ 10,000
Notes payable	8,500
Fixed rate mortgage notes payable | Mortgage Notes Payable
MORTGAGE NOTES PAYABLE
Long-term debt, gross	590,339	520,155
Debt swapped from variable to fixed rate	$ 128,967	$ 103,246

NOTES PAYABLE - Scheduled Matur

NOTES PAYABLE - Scheduled Maturities of Mortgage Notes Payable (Details) $ in Thousands	Jun. 30, 2024 USD ($)
NOTES PAYABLE
2024	$ 14,670
2025	105,207
2026	71,294
2027	79,009
2028	42,638
Thereafter	277,521
Total payments	$ 590,339

DERIVATIVES AND HEDGING ACTIV_3

DERIVATIVES AND HEDGING ACTIVITIES - Other (Details) - Interest rate swap $ in Thousands	Jun. 30, 2024 USD ($) instrument	Dec. 31, 2023 instrument
Derivatives and Hedging Activities
Estimated amount to be reclassified over the next 12 months, as a increase to interest expense | $	$ 4,205
Designated as Hedging Instrument | Cash Flow Hedging
Derivatives and Hedging Activities
Number of instruments | instrument	15	12

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, 2024 USD ($) instrument	Dec. 31, 2023 USD ($) instrument
Interest rate swap
Derivatives and Hedging Activities
Notional amount	$ 128,967	$ 103,246
Number of instruments | instrument	15	12
Interest Rate Swap, one, November 2029
Derivatives and Hedging Activities
Notional amount	$ 6,257
Fixed interest rate (as a percent)	3.15%
Derivative maturity date	Nov. 01, 2029
Interest Rate Swap, two, November 2029
Derivatives and Hedging Activities
Notional amount	$ 4,353
Fixed interest rate (as a percent)	3.28%
Derivative maturity date	Nov. 01, 2029
Interest Rate Swap, January 2030
Derivatives and Hedging Activities
Notional amount	$ 2,841
Fixed interest rate (as a percent)	3.39%
Derivative maturity date	Jan. 10, 2030
Interest Rate Swap, December 2027
Derivatives and Hedging Activities
Notional amount	$ 11,817
Fixed interest rate (as a percent)	2.91%
Derivative maturity date	Dec. 02, 2027
Interest Rate Swap, July 2031
Derivatives and Hedging Activities
Notional amount	$ 24,665
Fixed interest rate (as a percent)	2.99%
Derivative maturity date	Jul. 01, 2031
Interest Rate Swap, August 2029
Derivatives and Hedging Activities
Notional amount	$ 27,175
Fixed interest rate (as a percent)	3.54%
Derivative maturity date	Aug. 01, 2029
Interest Rate Swap, Dec 2031
Derivatives and Hedging Activities
Notional amount	$ 10,363
Fixed interest rate (as a percent)	3.32%
Derivative maturity date	Dec. 01, 2031
Interest Rate Swap, one, June 2030
Derivatives and Hedging Activities
Notional amount	$ 1,420
Fixed interest rate (as a percent)	3.07%
Derivative maturity date	Jun. 15, 2030
Interest Rate Swap, two, June 2030
Derivatives and Hedging Activities
Notional amount	$ 2,752
Fixed interest rate (as a percent)	3.07%
Derivative maturity date	Jun. 15, 2030
Interest Rate Swap, three, June 2030
Derivatives and Hedging Activities
Notional amount	$ 1,537
Fixed interest rate (as a percent)	2.94%
Derivative maturity date	Jun. 15, 2030
Interest Rate Swap, four, June 2030
Derivatives and Hedging Activities
Notional amount	$ 4,067
Fixed interest rate (as a percent)	2.94%
Derivative maturity date	Jun. 15, 2030
Interest Rate Swap, five, June 2030
Derivatives and Hedging Activities
Notional amount	$ 4,575
Fixed interest rate (as a percent)	2.79%
Derivative maturity date	Jun. 10, 2030
Interest Rate Swap, one, May 2032
Derivatives and Hedging Activities
Notional amount	$ 9,767
Fixed interest rate (as a percent)	3.57%
Derivative maturity date	May 15, 2032
Interest Rate Swap, two, May 2032
Derivatives and Hedging Activities
Notional amount	$ 3,813
Fixed interest rate (as a percent)	3.57%
Derivative maturity date	May 15, 2032
Interest Rate Swap, three, May 2032
Derivatives and Hedging Activities
Notional amount	$ 13,565
Fixed interest rate (as a percent)	3.57%
Derivative maturity date	May 15, 2032

DERIVATIVES AND HEDGING ACTIV_5

DERIVATIVES AND HEDGING ACTIVITIES - Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Other assets, net
Derivatives and Hedging Activities
Fair value, derivative assets	$ 15,786	$ 11,362

DERIVATIVES AND HEDGING ACTIV_6

DERIVATIVES AND HEDGING ACTIVITIES - Gain-Loss (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Derivatives and Hedging Activities
Amount of Gain Recognized in Other Comprehensive Income on Derivatives	$ (2,908)	$ (1,517)	$ (2,023)	$ 2,378	$ (4,425)	$ 355
Interest rate swap
Derivatives and Hedging Activities
Amount of Gain Recognized in Other Comprehensive Income on Derivatives	(2,908)		(2,023)		(4,425)	355
Interest expense
Derivatives and Hedging Activities
Amount of (Gain)/Loss Reclassified from AOCI into Income	$ (1,042)		$ (917)		$ (2,071)	$ (1,682)

DERIVATIVES AND HEDGING ACTIV_7

DERIVATIVES AND HEDGING ACTIVITIES - Credit-Risk Related Contingent Features (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Credit-risk-related Contingent Features
Termination value of interest rate derivatives in asset position	$ 15,786

FAIR VALUE MEASUREMENT - Carryi

FAIR VALUE MEASUREMENT - Carrying Value and Estimated Fair Value of Company's Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financial assets:
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets, Net Amount	Other Assets, Net Amount
Carrying Value
Financial assets:
Notes receivable	$ 7,922	$ 8,885
Derivative assets	15,786	11,362
Financial liabilities:
Mortgage notes payable	590,339	520,155
Fair Value
Financial assets:
Notes receivable	8,617	10,025
Derivative assets	15,786	11,362
Financial liabilities:
Mortgage notes payable	$ 480,048	$ 477,344

FAIR VALUE MEASUREMENT - Schedu

FAIR VALUE MEASUREMENT - Schedule of Fair Value of Assets on Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
FAIR VALUE MEASUREMENT
Derivative assets	$ 15,786	$ 11,362
Level 2
FAIR VALUE MEASUREMENT
Derivative assets	$ 15,786	$ 11,362

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, 2024	Dec. 31, 2023
FAIR VALUE MEASUREMENT
Line of credit	$ 5,176
Mortgage notes payable	480,048	$ 477,344
Note payable	8,500
Notes receivable	8,617	10,025
Level 3
FAIR VALUE MEASUREMENT
Line of credit	5,176
Mortgage notes payable	480,048	477,344
Note payable	8,500
Notes receivable	$ 8,617	$ 10,025

FAIR VALUE MEASUREMENT - Additi

FAIR VALUE MEASUREMENT - Additional Information (Details) - Measurement Input, Discount Rate	Jun. 30, 2024	Dec. 31, 2023
FAIR VALUE MEASUREMENT
Discount rates used to estimate fair value of notes receivable	0.1200	0.0725
Minimum
FAIR VALUE MEASUREMENT
Discount rates used to estimate fair value of mortgages and notes payable	0.0600	0.0585
Maximum
FAIR VALUE MEASUREMENT
Discount rates used to estimate fair value of mortgages and notes payable	0.0625	0.0600

LEASES- Other (Details)

LEASES- Other (Details)	Jun. 30, 2024
Residential
LEASES
Percentage of revenue from leases that are generally for terms of one year or less	85.30%
Commercial
LEASES
Percentage of revenue from leases primarily under long-term lease agreements	14.70%

LEASES- Lease Income (Details)

LEASES- Lease Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Lease income:
Lease income related to fixed lease payments	$ 36,569	$ 33,085	$ 71,331	$ 65,684
Lease income related to variable lease payments	1,195	899	2,340	2,096
Other (a)	(318)	(74)	(524)	(98)
Lease Income (b)	$ 37,446	$ 33,910	$ 73,147	$ 67,682
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Real Estate Revenue Net	Real Estate Revenue Net	Real Estate Revenue Net	Real Estate Revenue Net
Rental income accounted for under revenue recognition standard:
Other rental income	$ 1,850	$ 1,640	$ 3,408	$ 3,048
Residential
Lease income:
Lease income related to fixed lease payments	32,696	29,165	63,551	57,820
Lease income related to variable lease payments	1		1
Other (a)	(263)	(160)	(483)	(279)
Lease Income (b)	32,434	29,005	63,069	57,541
Commercial
Lease income:
Lease income related to fixed lease payments	3,873	3,920	7,780	7,864
Lease income related to variable lease payments	1,194	899	2,339	2,096
Other (a)	(55)	86	(41)	181
Lease Income (b)	$ 5,012	$ 4,905	$ 10,078	$ 10,141

LEASES- Future minimum rental i

LEASES- Future minimum rental income (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Future minimum rental income:
2024 (July - December)	$ 9,009
2025	15,020
2026	14,252
2027	12,769
2028	11,797
Thereafter	35,524
Total	$ 98,371

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, 2024	Jun. 30, 2023
Related Party Transactions
Management fee, amount paid	$ 5,401	$ 5,917
Management fees paid expressed as a percentage of net collected rents	5%	5%
Repair and maintenance related payroll and payroll related expenses	$ 4,615	$ 4,916

RELATED PARTY TRANSACTIONS - Ad

RELATED PARTY TRANSACTIONS - Advisory Agreement and Other (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) employee shares	Jun. 30, 2023 USD ($) shares	Dec. 31, 2023 USD ($)
Related Party Transactions
Number of paid employees | employee			0
Rental income	$ 36,569	$ 33,085	$ 71,331	$ 65,684
Notes payable	8,500		8,500
Interest expense	5,522	$ 5,331	10,878	10,687
Advisory Agreement
Related Party Transactions
Advisory fees			1,940	1,901
Acquisition fees			750
Disposition fees			264	204
Financing fees			96	68
Development fees			350
Project Management fees			374	249
Advisory fees payable	37		37		$ 316
Acquisition fees payable	375		375
Financing fees payable	59		59
Business Operations
Related Party Transactions
Costs and expenditures incurred due to construction in progress			100	91
Operational liabilities outstanding	0		0		0
Mezzanine Financing
Related Party Transactions
Interest income			296	288
Loan to related party			7,840		8,766
Sterling Management, LLC
Related Party Transactions
Rental income			67	66
GOLDMARK Property Management
Related Party Transactions
Real estate commissions			39	0
Real estate commissions outstanding	28		28		0
Rental income			138	135
GOLDMARK Commercial Real Estate
Related Party Transactions
Real estate commissions			531	0
Real estate commissions outstanding	292		$ 292		0
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			322
Value of operating partnership (OP) units issued in connection with the acquisition of various properties			$ 7,396
Trumont Group, LLC
Related Party Transactions
Development fees			0	0
Development fees outstanding	0		0		0
Trumont Construction, LLC
Related Party Transactions
Construction fees			73	276
Construction fees payable	0		0		0
General construction costs			210	186
General construction costs payable	0		0		0
Bell Bank
Related Party Transactions
Rental income			570	465
Outstanding on principal loans	59,106		59,106		60,262
Interest expense incurred			1,152	1,208
Accrued interest	$ 125		125		$ 128
Total premiums paid			$ 76	$ 131
Affiliated Entities
Related Party Transactions
Number of operating partnership (OP) units issued in connection with the acquisition of various properties | shares				0

DISPOSITIONS (Details)

DISPOSITIONS (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($) ft² property	Jun. 30, 2023 USD ($) ft² property
Dispositions
Gain (Loss) on Sale	$ 2,828	$ 2,596
Disposed of by Sale
Dispositions
Number of dispositions | property	8	2
Total Disposition Cost	$ 10,563	$ 8,158
Gain (Loss) on Sale	$ 2,828	$ 2,597
Retail | Applebees, Coon Rapids, MN | Disposed of by Sale
Dispositions
Disposal Date		May 11, 2023
Total Disposition Cost		$ 3,448
Gain (Loss) on Sale		$ 1,531
Area of property disposed of | ft²		5,576
Retail | Dairy Queen, Apple Valley, MN | Disposed of by Sale
Dispositions
Disposal Date	Jan. 25, 2024
Total Disposition Cost	$ 1,607
Gain (Loss) on Sale	$ (68)
Area of property disposed of | ft²	5,348
Office Property | Redpath | Disposed of by Sale
Dispositions
Disposal Date		May 24, 2023
Total Disposition Cost		$ 4,710
Gain (Loss) on Sale		$ 1,066
Area of property disposed of | ft²		25,817
Office Property | Gate City Bank | Disposed of by Sale
Dispositions
Disposal Date	May 01, 2024
Total Disposition Cost	$ 2,950
Gain (Loss) on Sale	$ 974
Area of property disposed of | ft²	17,407
Office Property | First International Bank & Trust | Disposed of by Sale
Dispositions
Disposal Date	May 21, 2024
Total Disposition Cost	$ 1,516
Gain (Loss) on Sale	$ 683
Area of property disposed of | ft²	3,510
Apartment Complex | Westwind | Disposed of by Sale
Dispositions
Disposal Date	Mar. 01, 2024
Total Disposition Cost	$ 900
Gain (Loss) on Sale	$ 489
Number of units disposed of | property	18
Apartment Complex | Westside | Disposed of by Sale
Dispositions
Disposal Date	Mar. 08, 2024
Total Disposition Cost	$ 837
Gain (Loss) on Sale	$ 394
Number of units disposed of | property	14
Apartment Complex | Columbia Park Village, Grand Forks, ND | Disposed of by Sale
Dispositions
Disposal Date	Apr. 03, 2024
Total Disposition Cost	$ 675
Gain (Loss) on Sale	$ 42
Number of units disposed of | property	12
Apartment Complex | Jadestone Apartments, Fargo, ND | Disposed of by Sale
Dispositions
Disposal Date	Jun. 14, 2024
Total Disposition Cost	$ 1,039
Gain (Loss) on Sale	$ 136
Number of units disposed of | property	18
Apartment Complex | Essex Apartments, Fargo, ND | Disposed of by Sale
Dispositions
Disposal Date	Jun. 14, 2024
Total Disposition Cost	$ 1,039
Gain (Loss) on Sale	$ 178
Number of units disposed of | property	18

ACQUISITIONS (Details)

ACQUISITIONS (Details) $ in Thousands			6 Months Ended
	Jun. 26, 2024 USD ($) item	Apr. 15, 2024 USD ($) item	Jun. 30, 2024 USD ($) property	Jun. 30, 2023 property
Acquisitions
Total Acquisition Cost			$ 88,311
Number of acquisitions | property			2	0
Urban Plains, Fargo, ND
Acquisitions
Units acquired | item		415
Total Acquisition Cost		$ 17,152
Lexington Lofts, Forest Lake, MN
Acquisitions
Units acquired | item	355
Total Acquisition Cost	$ 71,159

ACQUISITIONS- Summary of Acquis

ACQUISITIONS- Summary of Acquisition Date Fair Values (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Acquisition date fair values
Real estate investment acquired	$ 864,275	$ 756,220
Acquired lease intangible assets	4,247	2,983
Total Assets	949,991	$ 854,833
Asset Acquisitions
Acquisition date fair values
Real estate investment acquired	114,621
Acquired lease intangible assets	2,261
Assumed assets	451
Total Assets	117,333
Assumed loans	(80,774)
Other liabilities	(653)
Net assets acquired	35,906
Equity/limited partnership unit consideration	(7,396)
Net cash consideration	$ 28,510

SUBSEQUENT EVENTS - Additional

SUBSEQUENT EVENTS - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands				6 Months Ended
	Aug. 01, 2024	Jul. 15, 2024	Jul. 12, 2024	Jun. 30, 2023	Jul. 25, 2024
Subsequent Events
Total				$ 2,546
Subsequent Event
Subsequent Events
Dividend or distribution paid		$ 0.2875
Subsequent Event | The Emory
Subsequent Events
Trust Ownership Interest (as a percent)	50%
Total	$ 13,406
Subsequent Event | Residential Property In Fargo ND | Disposed of by Sale
Subsequent Events
Sale price					$ 1,500
Subsequent Event | Gate City Bank
Subsequent Events
Credit agreement amount			$ 14,800
Term of debt			5 years
Annualized prime rate (%)			8.50%
Basis reduction on variable rate (as a percent)			1.50%
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]			us-gaap:PrimeRateMember
Effective annualized interest rate (%)			7%