Cover
Cover - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Aug. 05, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-54047 | |
Entity Registrant Name | LIGHTSTONE VALUE PLUS REIT II, INC. | |
Entity Central Index Key | 0001436975 | |
Entity Tax Identification Number | 83-0511223 | |
Entity Incorporation, State or Country Code | MD | |
Entity Address, Address Line One | 1985 Cedar Bridge Avenue | |
Entity Address, Address Line Two | Suite 1 | |
Entity Address, City or Town | Lakewood | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08701 | |
City Area Code | (732) | |
Local Phone Number | 367-0129 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 17,200 |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Investment property: | ||
Land and improvements | $ 32,207 | $ 36,709 |
Building and improvements | 177,300 | 203,660 |
Furniture and fixtures | 32,771 | 36,313 |
Construction in progress | 79 | 119 |
Gross investment property | 242,357 | 276,801 |
Less accumulated depreciation | (59,091) | (61,626) |
Net investment property | 183,266 | 215,175 |
Investments in unconsolidated affiliated entities | 16,505 | 17,958 |
Cash and cash equivalents | 18,656 | 15,126 |
Marketable securities, available for sale | 3,289 | 6,777 |
Restricted cash | 17,892 | 1,833 |
Accounts receivable and other assets | 5,740 | 3,867 |
Assets held for sale | 4,896 | 0 |
Total Assets | 250,244 | 260,736 |
Liabilities and Stockholders’ Equity | ||
Accounts payable and other accrued expenses | 7,113 | 6,525 |
Margin loan | 0 | 2,292 |
Mortgages payable, net | 122,970 | 136,167 |
Notes payable | 2,903 | 3,746 |
Due to related party | 478 | 538 |
Liabilities held for sale | 243 | 0 |
Total liabilities | 133,707 | 149,268 |
Company’s stockholders’ equity: | ||
Preferred shares, $0.01 par value, 10.0 million shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 100.0 million shares authorized, 17.2 million and 17.3 million shares issued and outstanding, respectively | 172 | 173 |
Additional paid-in-capital | 145,545 | 146,308 |
Accumulated deficit | (40,614) | (46,506) |
Total Company stockholders’ equity | 105,103 | 99,975 |
Noncontrolling interests | 11,434 | 11,493 |
Total Stockholders’ Equity | 116,537 | 111,468 |
Total Liabilities and Stockholders’ Equity | $ 250,244 | $ 260,736 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares shares in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, par value per share | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 10,000 | 10,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 100,000 | 100,000 |
Common Stock, shares issued | 17,200 | 17,300 |
Common Stock, shares outstanding | 17,200 | 17,300 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenues | $ 15,152 | $ 11,718 | $ 28,229 | $ 19,165 |
Expenses: | ||||
Property operating expenses | 10,035 | 7,792 | 19,596 | 13,698 |
Real estate taxes | 854 | 801 | 1,490 | 1,728 |
General and administrative costs | 1,168 | 1,150 | 2,549 | 2,415 |
Depreciation and amortization | 1,923 | 2,560 | 4,191 | 5,252 |
Total operating expenses | 13,980 | 12,303 | 27,826 | 23,093 |
Operating income/(loss) | 1,172 | (585) | 403 | (3,928) |
Interest and dividend income | 46 | 67 | 111 | 137 |
Interest expense | (1,361) | (1,558) | (2,859) | (2,904) |
Gain on forgiveness of debt | 259 | 1,481 | 852 | 1,481 |
(Loss)/gain on sale of investment property | (65) | 0 | 7,681 | 0 |
Earnings from investments in unconsolidated affiliated entities | 298 | (99) | 209 | (182) |
Other (loss)/income, net | (164) | 48 | (506) | 18 |
Net income/(loss) | 185 | (646) | 5,891 | (5,378) |
Less: net (income)/loss attributable to noncontrolling interests | (24) | 5 | 1 | 93 |
Net income/(loss) applicable to Company’s common shares | $ 161 | $ (641) | $ 5,892 | $ (5,285) |
Net income/(loss) per Company’s common share, basic and diluted | $ 0.01 | $ (0.04) | $ 0.34 | $ (0.30) |
Weighted average number of common shares outstanding, basic and diluted | 17,248 | 17,430 | 17,267 | 17,430 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Net income/(loss) | $ 185 | $ (646) | $ 5,891 | $ (5,378) |
Other comprehensive loss: | ||||
Holding loss on marketable debt securities, available for sale | 0 | (19) | 0 | (41) |
Other comprehensive loss: | 0 | (19) | 0 | (41) |
Comprehensive income/(loss) | 185 | (665) | 5,891 | (5,419) |
Less: Comprehensive (income)/loss attributable to noncontrolling interests | (24) | 5 | 1 | 93 |
Comprehensive income/(loss) attributable to the Company’s common shares | $ 161 | $ (660) | $ 5,892 | $ (5,326) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY (unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 174 | $ 147,100 | $ 82 | $ (41,186) | $ 11,599 | $ 117,769 |
Beginning balance, shares at Dec. 31, 2020 | 17,430 | |||||
Net income | (5,285) | (93) | (5,378) | |||
Other comprehensive loss | (41) | (41) | ||||
Contributions of noncontrolling interests | 12 | 12 | ||||
Distributions to noncontrolling interests | (54) | (54) | ||||
Ending balance, value at Jun. 30, 2021 | $ 174 | 147,100 | 41 | (46,471) | 11,464 | 112,308 |
Beginning balance, shares at Jun. 30, 2021 | 17,430 | |||||
Beginning balance, value at Mar. 31, 2021 | $ 174 | 147,100 | 60 | (45,830) | 11,517 | 113,021 |
Beginning balance, shares at Mar. 31, 2021 | 17,430 | |||||
Net income | (641) | (5) | (646) | |||
Other comprehensive loss | (19) | (19) | ||||
Contributions of noncontrolling interests | 6 | 6 | ||||
Distributions to noncontrolling interests | (54) | (54) | ||||
Ending balance, value at Jun. 30, 2021 | $ 174 | 147,100 | 41 | (46,471) | 11,464 | 112,308 |
Beginning balance, shares at Jun. 30, 2021 | 17,430 | |||||
Beginning balance, value at Dec. 31, 2021 | $ 173 | 146,308 | (46,506) | 11,493 | 111,468 | |
Beginning balance, shares at Dec. 31, 2021 | 17,331 | |||||
Net income | 5,892 | (1) | 5,891 | |||
Distributions to noncontrolling interests | (58) | (58) | ||||
Redemption and cancellation of shares | $ (1) | (763) | (764) | |||
Beginning balance, shares | (90) | |||||
Ending balance, value at Jun. 30, 2022 | $ 172 | 145,545 | (40,614) | 11,434 | 116,537 | |
Beginning balance, shares at Jun. 30, 2022 | 17,241 | |||||
Beginning balance, value at Mar. 31, 2022 | $ 173 | 145,811 | (40,775) | 11,420 | 116,629 | |
Beginning balance, shares at Mar. 31, 2022 | 17,269 | |||||
Net income | 161 | 24 | 185 | |||
Distributions to noncontrolling interests | (10) | (10) | ||||
Redemption and cancellation of shares | $ (1) | (266) | (267) | |||
Beginning balance, shares | (28) | |||||
Ending balance, value at Jun. 30, 2022 | $ 172 | $ 145,545 | $ (40,614) | $ 11,434 | $ 116,537 | |
Beginning balance, shares at Jun. 30, 2022 | 17,241 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income/(loss) | $ 5,891 | $ (5,378) |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||
Depreciation and amortization | 4,191 | 5,252 |
Amortization of deferred financing costs | 160 | 200 |
Gain on sale of investment property | (7,681) | 0 |
Gain on forgiveness of debt | (852) | (1,481) |
Earnings from investments in unconsolidated affiliated entities | (209) | 182 |
Other non-cash adjustments | 608 | (17) |
Changes in assets and liabilities: | ||
Increase in accounts receivable and other assets | (2,287) | (1,681) |
Increase in accounts payable and other accrued expenses | 837 | 1,496 |
Decrease in due to related party | (60) | (74) |
Net cash provided by/(used in) operating activities | 598 | (1,501) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investment property | (280) | (257) |
Proceeds from the sale of marketable debt securities | 3,015 | 0 |
Proceeds from sale of investment property, net of closing costs | 31,126 | 0 |
Investments in unconsolidated affiliated entity | 0 | (1,417) |
Distributions from unconsolidated affiliated entities | 1,663 | 587 |
Net cash provided by/(used in) investing activities | 35,524 | (1,087) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments on mortgages payable | (13,419) | (100) |
Payment on margin loan | (2,292) | (153) |
Proceeds received from notes payable | 0 | 3,746 |
Payment of loan fees and expenses | 0 | (404) |
Redemption and cancellation of common shares | (764) | 0 |
Distributions to noncontrolling interests | (58) | (54) |
Contributions of noncontrolling interests | 0 | 12 |
Net cash (used in)/provided by financing activities | (16,533) | 3,047 |
Net change in cash, cash equivalents and restricted cash | 19,589 | 459 |
Cash, cash equivalents and restricted cash, beginning of year | 16,959 | 18,423 |
Cash, cash equivalents and restricted cash, end of period | 36,548 | 18,882 |
Supplemental cash flow information for the periods indicated is as follows: | ||
Cash paid for interest | 2,733 | 2,572 |
Holding loss on marketable securities, available for sale | 0 | 41 |
Cash | 18,656 | 15,321 |
Restricted cash | 17,892 | 3,561 |
Total cash and restricted cash | $ 36,548 | $ 18,882 |
Structure
Structure | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Structure | 1. Structure Lightstone Value Plus REIT II, Inc. (“Lightstone REIT II”), which was formerly known as Lightstone Value Plus Real Estate Investment Trust II, Inc. before September 16, 2021, is a Maryland corporation formed on April 28, 2008, which elected to qualify as a real estate investment trust (“REIT”) for U.S. federal income tax purposes beginning with the taxable year ended December 31, 2009. Lightstone REIT II is structured as an umbrella partnership REIT, or UPREIT, and substantially all of its current and future business will be conducted through Lightstone Value Plus REIT II LP, a Delaware limited partnership (the “Operating Partnership”). As of June 30, 2022, Lightstone REIT II held an approximately 99 Lightstone REIT II and the Operating Partnership and its subsidiaries are collectively referred to as the “Company” and the use of “we,” “our,” “us” or similar pronouns refers to Lightstone REIT II, its Operating Partnership or the Company as required by the context in which such pronoun is used. The Company has and will continue to seek to acquire a diverse portfolio of real estate assets and real estate-related investments, including hotels, other commercial and/or residential properties, primarily located in the United States. All such properties may be acquired and operated by the Company alone or jointly with another party. The Company may also originate or acquire mortgage loans secured by real estate. Although the Company expects that most of its investments will be of these types, it may invest in whatever types of real estate-related investments that it believes are in its best interests. The Company currently has one operating segment. As of June 30, 2022, we (i) majority owned and consolidated the operating results and financial condition of 13 limited service hotels containing a total of 1,674 rooms, (ii) held an unconsolidated 48.6 50.0% membership interest in LVP LIC Hotel JV LLC (the “Hilton Garden Inn Joint Venture”), an affiliated real estate entity that owns and operates a 183-room limited service hotel located in Long Island City, New York (the “Hilton Garden Inn – Long Island City”). The Company As of June 30, 2022, seven of the Company’s consolidated limited service hotels are held in a joint venture (the “Joint Venture”) formed between us and Lightstone Value Plus REIT, Inc. (“Lightstone REIT I”), a related party REIT also sponsored by The Lightstone Group, LLC. The Company and Lightstone I have 97.5% and 2.5% membership interests in the Joint Venture, respectively. Additionally, as of June 30, 2022, certain of the Company’s consolidated hotels also have ownership interests held by unrelated minority owners. The membership interests of Lightstone I and the unrelated minority owners are accounted for as noncontrolling interests. The Company’s advisor is Lightstone Value Plus REIT II LLC (the “Advisor”), which is majority owned by David Lichtenstein. On May 20, 2008, the Advisor contributed $ 2 200 20,000 200 10.00 Mr. Lichtenstein also is a majority owner of the equity interests of the Lightstone Group, LLC. 17.7 The Company does not have any employees. The Advisor receives compensation and fees for services related to the investment and management of the Company’s assets. The Company’s Advisor has certain affiliates which may manage the properties the Company acquires. However, the Company also contracts with other unaffiliated third-party property managers, principally for the management of its hospitality properties. The Company’s Common Shares are not currently listed on a national securities exchange. The Company may seek to list its Common Shares for trading on a national securities exchange only if a majority of its independent directors believe listing would be in the best interest of its stockholders. The Company does not intend to list its shares at this time. The Company does not anticipate that there would be any market for its Common Shares until they are listed for trading. In the event the Company does not obtain listing prior to September 27, 2024, which is the tenth anniversary of the termination of its Follow-On Offering, its charter requires that the Board of Directors must either (i) seek stockholder approval of an extension or amendment of this listing deadline; or (ii) seek stockholder approval to adopt a plan of liquidation of the corporation. Noncontrolling Interests Limited Partner On May 20, 2008, the Advisor contributed $ 2 200 Associate General Partner In connection with the Company’s Offerings, which concluded on September 27, 2014, the Associate General Partner contributed (i) cash of $ 12.9 48.6 4.8 177.0 17.7 As the indirect majority owner of the Associate General Partner, Mr. Lichtenstein is the beneficial owner of a 99% interest in such Subordinated Profits Interests and thus receives an indirect benefit from any distributions made in respect thereof. These Subordinated Profits Interests may entitle the Associate General Partner to a portion of any regular and liquidation distributions that the Company makes to its stockholders, but only after its stockholders have received a stated preferred return. There were no distributions declared on the Subordinated Profits Interests during the three and six months ended June 30, 2022 and 2021. Since the Company’s inception through June 30, 2022, the cumulative distributions declared and paid on the Subordinated Profits Interests were $7.9 million. Any future distributions on the Subordinated Profits Interests will always be subordinated until stockholders receive a stated preferred return, as described above. See Note 9 for additional information with respect to the Subordinated Profits Interests. Other Noncontrolling Interests in Consolidated Subsidiaries Other noncontrolling interests consist of the (i) membership interest in the Joint Venture held by Lightstone I and (ii) membership interests held by minority owners in certain of the Company’s hotels. The Advisor and its affiliates and Associate General Partner are related parties of the Company. Certain of these entities are entitled to compensation and fees for services related to the investment, management and disposition of the Company’s assets during its acquisition, operational and liquidation stages. The compensation levels during the Company’s acquisition and operational stages are based on the cost of acquired properties/investments and the annual revenue earned from such properties/investments, and other such fees and reimbursements as outlined in each of the respective agreements. See Note 9 for additional information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Lightstone REIT II and its Operating Partnership and its subsidiaries (over which the Company exercises financial and operating control). As of June 30, 2022, Lightstone REIT II had a 99% general partnership interest in the common units of the Operating Partnership. All inter-company balances and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary. The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited Consolidated Financial Statements of the Company and related notes as contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. The unaudited interim consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair statement of the results for the periods presented. The accompanying unaudited consolidated financial statements of the Lightstone Value Plus REIT II, Inc. and Subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during a reporting period. The most significant assumptions and estimates relate to the valuation of real estate and investments in other real estate entities and depreciable lives of long-lived assets. Application of these assumptions requires the exercise of judgment as to future uncertainties and, as a result, actual results could differ from these estimates. The consolidated balance sheet as of December 31, 2021 included herein has been derived from the consolidated balance sheet included in the Company’s Annual Report on Form 10-K. The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. To qualify or maintain our qualification as a REIT, the Company engages in certain activities through wholly-owned taxable REIT subsidiaries (“TRS”). As such, it is subject to U.S. federal and state income and franchise taxes from these activities. Revenue Recognition The following table represents the total revenues from hotel operations on a disaggregated basis: Schedule of revenues from hotel operations For the For the Revenues 2022 2021 2022 2021 Room $ 14,515 $ 11,255 $ 27,023 $ 18,467 Food, beverage and other 637 463 1,206 698 Total revenues $ 15,152 $ 11,718 $ 28,229 $ 19,165 COVID-19 Pandemic Operations and Liquidity Update On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic and it remains highly unpredictable and dynamic and its ultimate duration and extent continue to be dependent on various developments, such as the emergence of variants to the virus that may cause additional strains of COVID-19, and the ongoing development, administration and ultimate effectiveness of vaccines, including booster shots. Accordingly, the ongoing COVID-19 pandemic may continue to have negative effects on the U.S. and global economies for the foreseeable future. The extent to which the Company’s business may be affected by the ongoing COVID-19 pandemic will largely depend on both current and future developments, all of which are highly uncertain and cannot be reasonably predicted. Furthermore, as a result of the COVID-19 pandemic, room demand and rental rates for the Company’s consolidated and unconsolidated hotels significantly declined starting in March 2020 at the onset of the pandemic; and while these metrics have improved since then (beginning late 2020 and continuing through the second quarter of 2022); overall room demand and rental rates remain below their pre-pandemic historical levels. Accordingly, the COVID-19 pandemic has negatively impacted the Company’s operations, financial position and cash flow; and while the severity of the impact has lessened considerably, the Company currently expects it is likely to experience a negative impact for the foreseeable future. The Company cannot currently estimate if and when room demand and rental rates will return to historical pre-pandemic levels for its hotels. The Company also has an unconsolidated 48.6% membership interest in the Brownmill Joint Venture, which owns two retail properties located in New Jersey that are subject to similar risks related to the COVID-19 pandemic. If the Brownmill Joint Venture’s retail properties are negatively impacted from the ongoing COVID-19 pandemic for an extended period because its tenants are unable to pay their rent, the Company’s equity earnings and the carrying value of its investment in the Brownmill Joint Venture could be materially and adversely impacted. In light of the past, present and potential future impact of the COVID-19 pandemic on the operating results of its hotels, the Company has taken various actions to preserve its liquidity, including the following: ● The Company has implemented cost reduction strategies for all of its hotels, leading to reductions in certain operating expenses and capital expenditures. ● During 2020 and 2021, the Company obtained certain amendments to its revolving credit facility (the “Revolving Credit Facility”). See Note 6 for additional information. ● In April 2020 and during the first quarter of 2021, the Company’s consolidated hotels received an aggregate of $ 3.3 3.7 ● Previously in March 2020, the Board of Directors determined to suspend regular quarterly distributions on the Company’s Common Shares and the Subordinated Profits Interests and has not declared any distributions since the suspension. Additionally, in March 2020, the Board of Directors approved the suspension of all redemptions under the Company’s shareholder repurchase program (the “SRP”). Subsequently on May 10, 2021, the Board of Directors partially reopened the SRP to allow, subject to various conditions, for redemptions submitted in connection with a stockholder’s death or hardship. See Note 8 for additional information. ● During 2020 and 2021, the Hilton Garden Inn Joint Venture obtained various amendments to its non-recourse mortgage loan secured by the Hilton Garden Inn – Long Island City. See Note 4 for additional information. The Company believes that these actions, along with its available on hand cash and cash equivalents, restricted cash and marketable securities, as well as its intention to seek to extend the Revolving Credit Facility to September 15, 2023 pursuant to the lender’s extension option, as discussed in Note 6, will provide it with sufficient liquidity to meet its obligations for at least 12 months from the date of issuance of these consolidated financial statements. New Accounting Pronouncements The Company has reviewed and determined that recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations. |
Held for Sale and Disposition A
Held for Sale and Disposition Activities | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Held for Sale and Disposition Activities | 3. Held for Sale and Disposition Activities Held for Sale TownePlace Suites - Little Rock On May 27, 2022, the Company and Arihantaa REIT, LLC (the “TownePlace Suites - Little Rock Buyer”), an unaffiliated third party, entered into a purchase and sale agreement (the “TownePlace Suites - Little Rock Agreement”) pursuant to which the Company would dispose of a 92-room hotel located in Little Rock, Arkansas, which operates as a TownePlace Suites (the “TownePlace Suites - Little Rock”) to the TownePlace Suites - Little Rock Buyer for an aggregate contractual sales price of $ 5.9 As of June 30, 2022, the TownePlace Suites - Little Rock met the criteria to be classified as held for sale and therefore, its associated assets and liabilities are classified as held for sale in the consolidated balance sheet as of June 30, 2022. The following summary presents the major components of assets and liabilities held for sale, of as the date indicated. Schedule of assets and liabilities held for sale As of June 30, Net investment property $ 4,715 Accounts receivable and other assets 181 Total assets held for sale $ 4,896 Accounts payable and other accrued expenses $ 243 Total liabilities held for sale $ 243 On July 14, 2022, the Company completed the disposition of the TownePlace Suites - Little Rock pursuant to the terms of the TownePlace Suites - Little Rock Agreement. In connection with the disposition of the TownePlace Suites - Little Rock, the Company used proceeds of $ 4.6 118.4 The disposition of the TownePlace Suites - Little Rock did not qualify to be reported as discontinued operations since the disposition did not represent a strategic shift that had a major effect on the Company’s operations and financial results. Accordingly, the operating results of the TownePlace Suites - Little Rock will be reflected in the Company’s results from continuing operations for all periods presented through its date of disposition. Disposition Activity Disposition of the Courtyard – Paso Robles On March 22, 2022, the Company completed the disposition of a 130-room hotel located in Paso Robles, California, which operates as a Courtyard by Marriott (the “Courtyard – Paso Robles”), to an unaffiliated third party, for a contractual sales price of $ 32.3 13.4 14.1 17.8 7.7 In connection with the sale of the Courtyard – Paso Robles, certain funds have been placed in escrow with a qualified intermediary in order to facilitate a potential like-kind exchange transaction in accordance with Section 1031 of the Internal Revenue Code of 1986, as amended. The balance of the escrow account was $ 17.0 The disposition of the Courtyard – Paso Robles did not qualify to be reported as discontinued operations since the disposition did not represent a strategic shift that had a major effect on the Company’s operations and financial results. Accordingly, the operating results of the Courtyard – Paso Robles are reflected in the Company’s results from continuing operations for all periods presented through its date of disposition. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliated Entities | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliated Entities | 4. Investments in Unconsolidated Affiliated Entities The entities listed below are partially owned by the Company. The Company accounts for these investments under the equity method of accounting as the Company exercises significant influence, but does not exercise financial and operating control over these entities. A summary of the Company’s investments in the unconsolidated affiliated entities is as follows: Schedule of investments in the unconsolidated affiliated real estate As of Entity Date of Ownership % June 30, December 31, Brownmill Joint Venture Various 48.6 % $ 6,557 $ 6,793 Hilton Garden Inn Joint Venture March 27, 2018 50.0 % 9,948 11,165 Total investments in unconsolidated affiliated real estate entities $ 16,505 $ 17,958 Brownmill Joint Venture During 2010 through 2012, the Company entered into various contribution agreements with Lightstone Holdings LLC (“LGH”), a wholly-owned subsidiary of the Sponsor, pursuant to which LGH contributed to the Company an aggregate 48.6% membership interest in the Brownmill Joint Venture in exchange for the Company issuing an aggregate of 48 units of Subordinated Profits Interests, at $ 100,000 As of June 30, 2022, the Company owns a 48.6 438 87 The Brownmill Joint Venture owns two retail properties known as Browntown Shopping Center, located in Old Bridge, New Jersey, and Millburn Mall, located in Vauxhaull, New Jersey. Brownmill Joint Venture Financial Information The Company’s carrying value of its interest in the Brownmill Joint Venture differs from its share of member’s equity reported in the condensed balance sheet of the Brownmill Joint Venture because the basis of the Company’s investment is in excess of the historical net book value of the Brownmill Joint Venture. The Company’s additional basis, which has been allocated to depreciable assets, is being recognized on a straight-line basis over the estimated useful lives of the appropriate assets. The following table represents the condensed statements of operations for the Brownmill Joint Venture for the periods indicated: Schedule of condensed income statement For the For the 2022 2021 2022 2021 Revenue $ 1,110 $ 975 $ 2,148 $ 2,025 Property operating expenses 418 416 867 721 Depreciation and amortization 220 191 432 367 Operating income 472 368 849 937 Interest expense and other, net (137 ) (163 ) (307 ) (329 ) Net income $ 335 $ 205 $ 542 $ 608 Company’s share of net income $ 163 $ 99 $ 264 $ 295 Additional depreciation and amortization expense (1) (31 ) (31 ) (62 ) (62 ) Company’s earnings from investment $ 132 $ 68 $ 202 $ 233 (1) Additional depreciation and amortization expense relates to the amortization of the difference between the cost of the interest in the Brownmill Joint Venture and the amount of the underlying equity in net assets of the Brownmill Joint Venture. The following table represents the condensed balance sheets for the Brownmill Joint Venture as of the dates indicated: Schedule of condensed balance sheet As of As of June 30, 2022 December 31, Real estate, at cost (net) $ 17,408 $ 17,830 Cash and restricted cash 1,187 1,152 Other assets 1,562 1,518 Total assets $ 20,157 $ 20,500 Mortgage payable $ 13,468 $ 13,594 Other liabilities 806 666 Members’ capital 5,883 6,240 Total liabilities and members’ capital $ 20,157 $ 20,500 Hilton Garden Inn Joint Venture On March 27, 2018, the Company and Lightstone Value Plus REIT III, Inc. (“Lightstone REIT III”), a related party REIT also sponsored by the Company’s Sponsor, acquired, through the Hilton Garden Inn Joint Venture, a 183-room, limited-service hotel located at 29-21 41 st 60.0 25.0 35.0 , excluding closing and other related transaction costs. The Company and Lightstone REIT III each have a 50.0 The Company paid $ 12.9 50.0 In light of the impact of the COVID-19 pandemic on the operating results of the Hilton Garden Inn – Long Island City, the Hilton Garden Inn Joint Venture has entered into certain amendments with respect to the Hilton Garden Inn Mortgage as discussed below. On June 2, 2020, the Hilton Garden Inn Mortgage was amended to provide for (i) the deferral of the six monthly debt service payments aggregating $ 0.9 LIBOR plus 2.15%, subject to a 4.03% 1.2 Additionally, on April 7, 2021, the Hilton Garden Inn Joint Venture and the lender further amended the terms of the Hilton Garden Inn Mortgage to provide for (i) the Hilton Garden Inn Joint Venture to make a principal paydown of $ 1.7 0.7 The Hilton Garden Inn Joint Venture is currently in compliance with respect to all of its financial debt covenants. Subsequent to the Company’s acquisition of its 50.0 2.8 3.2 Hilton Garden Inn Joint Venture Financial Information The following table represents the condensed statements of operations for the Hilton Garden Inn Joint Venture for the periods indicated: Schedule of condensed income statement For the For the For the For the Revenues $ 2,910 $ 1,764 $ 5,078 $ 3,183 Property operating expenses 1,518 1,037 2,946 1,909 General and administrative costs 6 8 16 18 Depreciation and amortization 606 621 1,226 1,256 Operating income 780 98 890 - Interest expense (448 ) (434 ) (875 ) (831 ) Net income/(loss) $ 332 $ (336 ) $ 15 $ (831 ) Company’s share of net income/(loss) (50.00%) $ 166 $ (168 ) $ 8 $ (416 ) The following table represents the condensed balance sheets for the Hilton Garden Inn Joint Venture as of the dates indicated: Schedule of condensed balance sheet As of As of June 30, December 31, Investment property, net $ 51,272 $ 52,415 Cash 1,461 2,841 Other assets 1,301 1,204 Total assets $ 54,034 $ 56,460 Mortgage payable, net $ 33,007 $ 33,115 Other liabilities 1,702 1,585 Members’ capital 19,325 21,760 Total liabilities and members’ capital $ 54,034 $ 56,460 |
Marketable Securities, Fair Val
Marketable Securities, Fair Value Measurements and Margin Loan | 6 Months Ended |
Jun. 30, 2022 | |
Marketable Securities Fair Value Measurements And Margin Loan | |
Marketable Securities, Fair Value Measurements and Margin Loan | 5. Marketable Securities, Fair Value Measurements and Margin Loan Marketable Securities The following is a summary of the Company’s available for sale securities as of the dates indicated: Schedule of available-for-sale Securities Reconciliation As of June 30, 2022 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Marketable Securities Equity Securities $ 3,621 $ - $ (332 ) $ 3,289 As of December 31, 2021 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Marketable Securities Equity Securities $ 6,718 $ 59 $ - $ 6,777 Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: ● Level 1 – Quoted prices in active markets for identical assets or liabilities. ● Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. As of June 30, 2022 and December 31, 2021, all of the Company’s marketable securities were classified as Level 2 assets and there were no transfers between the level classifications during the six months ended June 30, 2022. The fair values of the Company’s equity securities are measured using readily available quoted prices for these securities; however, the markets for these securities are not active. The Company did not have any other significant financial assets or liabilities, which would require revised valuations that are recognized at fair value. Margin loan The Company has access to a margin loan from a financial institution that holds custody of certain of the Company’s marketable securities. The margin loan is collateralized by the marketable securities in the Company’s account. The amounts available to the Company under the margin loan are at the discretion of the financial institution and not limited to the amount of collateral in its account. The amount outstanding under this margin loan was $ 2.3 LIBOR plus 0.85% |
Mortgages payable, net
Mortgages payable, net | 6 Months Ended |
Jun. 30, 2022 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Mortgages payable, net | 6. Mortgages payable, net Mortgages payable, net consisted of the following: Schedule of mortgages Payable, Net Description Interest Weighted Average Maturity Amount Due As of As of Revolving Credit Facility LIBOR plus 3.15% 4.04 September 2022 $ 123,045 $ 123,045 $ 123,045 Courtyard – Paso Robles Repaid in full - - 13,419 Total mortgages payable 4.04 $ 123,045 123,045 136,464 Less: Deferred financing costs (75 ) (297 ) Total mortgages payable, net $ 122,970 $ 136,167 Revolving Credit Facility The Company, through certain subsidiaries, has a non-recourse Revolving Credit Facility with a financial institution. The Revolving Credit Facility provides a line of credit of up to $ 140.0 65.0 On June 2, 2020, the Revolving Credit Facility was amended to provide for (i) the deferral of the six monthly debt service payments aggregating $2.6 million from April 1, 2020 through September 30, 2020, until November 15, 2021; (ii) a 100 bps reduction in the interest rate spread to LIBOR plus 2.15%, subject to a 3.00% floor, for the six-month period from September 1, 2020 through February 28, 2021; (iii) the Company pre-funding $2.5 million into a cash collateral reserve account to cover the six monthly debt service payments which were due from October 1, 2020 through March 1, 2021; and (iv) a waiver of all financial covenants for quarter-end periods before June 30, 2021 Subsequently, on March 31, 2021, the Revolving Credit Facility was further amended providing for (i) the Company to pledge the membership interests in another hotel as additional collateral within 45 days, (ii) the Company to fund an additional $ 2.5 As of June 30, 2022, all of the Company’s 13 majority owned and consolidated hotel properties were pledged as collateral under the Revolving Credit Facility and the outstanding principal balance was $ 123.0 Courtyard – Paso Robles Mortgage Loan In connection with the Company’s acquisition of the Courtyard – Paso Robles on December 14, 2017, it assumed the Courtyard – Paso Robles Mortgage Loan. The Courtyard – Paso Robles Mortgage Loan was scheduled to mature in November 2023, bore interest at a fixed rate of 5.49 79 13.0 Principal Maturities The following table, based on the terms of the mortgages, sets forth their aggregate estimated contractual principal maturities, including balloon payments due at maturity, as of June 30, 2022: Schedule of principal maturities 2022 2023 2024 2025 2026 Thereafter Total Principal maturities $ 123,045 $ - $ - $ - $ - $ - $ 123,045 Less: deferred financing costs (75 ) Total principal maturities, net $ 122,970 Pursuant to the Company’s loan agreements, escrows in the amount of $ 0.9 1.8 |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Notes Payable | 7 Notes Payable During the first quarter of 2021, the Company, through various subsidiaries (each such entity, a “Borrower” and collectively, the “Borrowers”), received aggregate funding of $ 3.7 The PPP Loans each have a term of five years and provide for an interest rate of 1.00 The promissory note for each of the PPP Loans contains customary events of default relating to, among other things, payment defaults and breach of representations and warranties or of provisions of the relevant promissory note. Under the terms of the CARES Act, each Borrower can apply for and be granted forgiveness for all or a portion of the PPP Loans. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds in accordance with the terms of the CARES Act. Although the Company intends for each Borrower to apply for loan forgiveness, no assurance can be given that each Borrower will ultimately obtain forgiveness under its PPP Loan, in whole or in part. In the event all or any portion of a PPP Loan is forgiven, the amount forgiven will be applied to outstanding principal and recorded as income. The PPP Loans are subject to audit by the SBA for up to six years after the date the loans are forgiven. The PPP Loans are classified as Notes Payable in the consolidated balance sheets. During the year ended December 31, 2021, the Company received notices from the SBA that all of the PPP Loans received in April 2020 totaling $ 3.3 0.1 3.7 1.5 0.3 0.9 2.9 |
Equity
Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Equity | 8. Equity Distributions on Common Shares On March 19, 2020, the Company’s Board of Directors determined to suspend regular quarterly distributions and, as a result, has not declared any distributions on the Company’s Common Shares since the suspension. Future distributions declared, if any, will be at the discretion of the Board of Directors based on their analysis of the Company’s performance over the previous periods and expectations of performance for future periods. The Board of Directors will consider various factors in its determination, including but not limited to, the sources and availability of capital, revenues and other sources of income, operating and interest expenses and the Company’s ability to refinance near-term debt as well as the IRS’s annual distribution requirement that REITs distribute no less than 90% of their taxable income. The Company cannot assure that any future distributions will be made or that it will maintain any particular level of distributions that it has previously established or may establish. Share Repurchase Program The Company’s SRP may provide its eligible stockholders with limited, interim liquidity by enabling them to sell their Common Shares back to the Company, subject to restrictions and applicable law. On March 19, 2020, the Board of Directors amended the SRP to remove stockholder notice requirements and also approved the suspension of all redemptions effective immediately. Effective May 10, 2021, the Board of Directors reopened the SRP to allow, subject to various conditions as set forth below, for redemptions submitted in connection with a stockholder’s death or hardship and set the price for all such purchases to the Company’s current estimated net asset value per share, as determined by the Board of Directors and reported by the Company from time to time. Deaths that occurred subsequent to January 1, 2020 were eligible for consideration, subject to certain conditions. Beginning January 1, 2022, requests for redemptions in connection with a stockholder’s death must be submitted and received by the Company within one year of the stockholder’s date of death for consideration. On the above noted date, the Board of Directors established that on an annual basis, the Company would not redeem in excess of 0.5 For the six months ended June 30, 2022 the Company repurchased 90,275 8.47 Earnings per Share The Company had no potentially dilutive securities outstanding during the periods presented. Accordingly, earnings per share is calculated by dividing net income/loss attributable to common shareholders by the weighted-average number of shares of common stock outstanding during the applicable period. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. Related Party Transactions The Company has various agreements, including an advisory agreement, with the Advisor to pay certain fees in exchange for services performed by the Advisor and/or its affiliated entities. Additionally, the Company’s ability to secure financing and its real estate operations are dependent upon its Advisor and its affiliates to perform such services as provided in these agreements. Amounts the Company owes to the Advisor and its affiliated entities are principally for asset management fees, and are classified as due to related parties on the consolidated balance sheets. The following table represents the fees incurred associated with the payments to the Company’s Advisor for the periods indicated: Schedule of fees payments to Company's Advisor For the For the 2022 2021 2022 2021 Asset management fees (general and administrative costs) $ 680 $ 738 $ 1,418 $ 1,475 The advisory agreement has a one-year term and is renewable for an unlimited number of successive one-year periods upon the mutual consent of the Advisor and the Company’s independent directors. Payments to the Advisor or its affiliates may include asset acquisition fees and the reimbursement of acquisition-related expenses, development fees and the reimbursement of development-related costs, financing coordination fees, asset management fees or asset management participation, and construction management fees. The Company may also reimburse the Advisor and its affiliates for actual expenses it incurs for administrative and other services provided for it. Upon the liquidation of the Company’s assets, it may pay the Advisor or its affiliates a disposition commission. In connection with the Company’s Offering and Follow-On Offering, Lightstone SLP II LLC, an affiliate of the Company’s Sponsor, contributed (i) cash of $ 12.9 4.8 17.7 |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | 10. Financial Instruments The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable and other assets, accounts payable and other accrued expenses, margin loan, notes payable, and due to related party approximated their fair values as of June 30, 2022 and December 31, 2021 because of the short maturity of these instruments. As of June 30, 2022, the estimated fair value our mortgage payable approximated its carrying value because of the floating interest rate. The carrying amount and estimated fair value of our mortgages payable as of December 31, 2021 are as follows: Schedule of Mortgages payable and the related estimated fair value Carrying Estimated Mortgages payable $ 136,464 $ 136,592 The fair value of our mortgages payable was determined by discounting the future contractual interest and principal payments by market interest rates. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Legal Proceedings From time to time in the ordinary course of business, the Company may become subject to legal proceedings, claims or disputes. As of the date hereof, the Company is not a party to any material pending legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on its results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss. Additionally, the Company has not recorded any loss contingencies related to legal proceedings in which the potential loss is deemed to be remote. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Lightstone REIT II and its Operating Partnership and its subsidiaries (over which the Company exercises financial and operating control). As of June 30, 2022, Lightstone REIT II had a 99% general partnership interest in the common units of the Operating Partnership. All inter-company balances and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary. The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited Consolidated Financial Statements of the Company and related notes as contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. The unaudited interim consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair statement of the results for the periods presented. The accompanying unaudited consolidated financial statements of the Lightstone Value Plus REIT II, Inc. and Subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during a reporting period. The most significant assumptions and estimates relate to the valuation of real estate and investments in other real estate entities and depreciable lives of long-lived assets. Application of these assumptions requires the exercise of judgment as to future uncertainties and, as a result, actual results could differ from these estimates. The consolidated balance sheet as of December 31, 2021 included herein has been derived from the consolidated balance sheet included in the Company’s Annual Report on Form 10-K. The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. To qualify or maintain our qualification as a REIT, the Company engages in certain activities through wholly-owned taxable REIT subsidiaries (“TRS”). As such, it is subject to U.S. federal and state income and franchise taxes from these activities. |
Revenue Recognition | Revenue Recognition The following table represents the total revenues from hotel operations on a disaggregated basis: Schedule of revenues from hotel operations For the For the Revenues 2022 2021 2022 2021 Room $ 14,515 $ 11,255 $ 27,023 $ 18,467 Food, beverage and other 637 463 1,206 698 Total revenues $ 15,152 $ 11,718 $ 28,229 $ 19,165 |
COVID-19 Pandemic Operations and Liquidity Update | COVID-19 Pandemic Operations and Liquidity Update On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic and it remains highly unpredictable and dynamic and its ultimate duration and extent continue to be dependent on various developments, such as the emergence of variants to the virus that may cause additional strains of COVID-19, and the ongoing development, administration and ultimate effectiveness of vaccines, including booster shots. Accordingly, the ongoing COVID-19 pandemic may continue to have negative effects on the U.S. and global economies for the foreseeable future. The extent to which the Company’s business may be affected by the ongoing COVID-19 pandemic will largely depend on both current and future developments, all of which are highly uncertain and cannot be reasonably predicted. Furthermore, as a result of the COVID-19 pandemic, room demand and rental rates for the Company’s consolidated and unconsolidated hotels significantly declined starting in March 2020 at the onset of the pandemic; and while these metrics have improved since then (beginning late 2020 and continuing through the second quarter of 2022); overall room demand and rental rates remain below their pre-pandemic historical levels. Accordingly, the COVID-19 pandemic has negatively impacted the Company’s operations, financial position and cash flow; and while the severity of the impact has lessened considerably, the Company currently expects it is likely to experience a negative impact for the foreseeable future. The Company cannot currently estimate if and when room demand and rental rates will return to historical pre-pandemic levels for its hotels. The Company also has an unconsolidated 48.6% membership interest in the Brownmill Joint Venture, which owns two retail properties located in New Jersey that are subject to similar risks related to the COVID-19 pandemic. If the Brownmill Joint Venture’s retail properties are negatively impacted from the ongoing COVID-19 pandemic for an extended period because its tenants are unable to pay their rent, the Company’s equity earnings and the carrying value of its investment in the Brownmill Joint Venture could be materially and adversely impacted. In light of the past, present and potential future impact of the COVID-19 pandemic on the operating results of its hotels, the Company has taken various actions to preserve its liquidity, including the following: ● The Company has implemented cost reduction strategies for all of its hotels, leading to reductions in certain operating expenses and capital expenditures. ● During 2020 and 2021, the Company obtained certain amendments to its revolving credit facility (the “Revolving Credit Facility”). See Note 6 for additional information. ● In April 2020 and during the first quarter of 2021, the Company’s consolidated hotels received an aggregate of $ 3.3 3.7 ● Previously in March 2020, the Board of Directors determined to suspend regular quarterly distributions on the Company’s Common Shares and the Subordinated Profits Interests and has not declared any distributions since the suspension. Additionally, in March 2020, the Board of Directors approved the suspension of all redemptions under the Company’s shareholder repurchase program (the “SRP”). Subsequently on May 10, 2021, the Board of Directors partially reopened the SRP to allow, subject to various conditions, for redemptions submitted in connection with a stockholder’s death or hardship. See Note 8 for additional information. ● During 2020 and 2021, the Hilton Garden Inn Joint Venture obtained various amendments to its non-recourse mortgage loan secured by the Hilton Garden Inn – Long Island City. See Note 4 for additional information. The Company believes that these actions, along with its available on hand cash and cash equivalents, restricted cash and marketable securities, as well as its intention to seek to extend the Revolving Credit Facility to September 15, 2023 pursuant to the lender’s extension option, as discussed in Note 6, will provide it with sufficient liquidity to meet its obligations for at least 12 months from the date of issuance of these consolidated financial statements. |
New Accounting Pronouncements | New Accounting Pronouncements The Company has reviewed and determined that recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of revenues from hotel operations | Schedule of revenues from hotel operations For the For the Revenues 2022 2021 2022 2021 Room $ 14,515 $ 11,255 $ 27,023 $ 18,467 Food, beverage and other 637 463 1,206 698 Total revenues $ 15,152 $ 11,718 $ 28,229 $ 19,165 |
Held for Sale and Disposition_2
Held for Sale and Disposition Activities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of assets and liabilities held for sale | Schedule of assets and liabilities held for sale As of June 30, Net investment property $ 4,715 Accounts receivable and other assets 181 Total assets held for sale $ 4,896 Accounts payable and other accrued expenses $ 243 Total liabilities held for sale $ 243 |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliated Entities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of investments in the unconsolidated affiliated real estate | Schedule of investments in the unconsolidated affiliated real estate As of Entity Date of Ownership % June 30, December 31, Brownmill Joint Venture Various 48.6 % $ 6,557 $ 6,793 Hilton Garden Inn Joint Venture March 27, 2018 50.0 % 9,948 11,165 Total investments in unconsolidated affiliated real estate entities $ 16,505 $ 17,958 |
Schedule of condensed income statement | Schedule of condensed income statement For the For the 2022 2021 2022 2021 Revenue $ 1,110 $ 975 $ 2,148 $ 2,025 Property operating expenses 418 416 867 721 Depreciation and amortization 220 191 432 367 Operating income 472 368 849 937 Interest expense and other, net (137 ) (163 ) (307 ) (329 ) Net income $ 335 $ 205 $ 542 $ 608 Company’s share of net income $ 163 $ 99 $ 264 $ 295 Additional depreciation and amortization expense (1) (31 ) (31 ) (62 ) (62 ) Company’s earnings from investment $ 132 $ 68 $ 202 $ 233 (1) Additional depreciation and amortization expense relates to the amortization of the difference between the cost of the interest in the Brownmill Joint Venture and the amount of the underlying equity in net assets of the Brownmill Joint Venture. |
Schedule of condensed balance sheet | Schedule of condensed balance sheet As of As of June 30, 2022 December 31, Real estate, at cost (net) $ 17,408 $ 17,830 Cash and restricted cash 1,187 1,152 Other assets 1,562 1,518 Total assets $ 20,157 $ 20,500 Mortgage payable $ 13,468 $ 13,594 Other liabilities 806 666 Members’ capital 5,883 6,240 Total liabilities and members’ capital $ 20,157 $ 20,500 |
Hilton Garden Inn Joint Venture [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of condensed income statement | Schedule of condensed income statement For the For the For the For the Revenues $ 2,910 $ 1,764 $ 5,078 $ 3,183 Property operating expenses 1,518 1,037 2,946 1,909 General and administrative costs 6 8 16 18 Depreciation and amortization 606 621 1,226 1,256 Operating income 780 98 890 - Interest expense (448 ) (434 ) (875 ) (831 ) Net income/(loss) $ 332 $ (336 ) $ 15 $ (831 ) Company’s share of net income/(loss) (50.00%) $ 166 $ (168 ) $ 8 $ (416 ) |
Hilton Garden Inn [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of condensed balance sheet | Schedule of condensed balance sheet As of As of June 30, December 31, Investment property, net $ 51,272 $ 52,415 Cash 1,461 2,841 Other assets 1,301 1,204 Total assets $ 54,034 $ 56,460 Mortgage payable, net $ 33,007 $ 33,115 Other liabilities 1,702 1,585 Members’ capital 19,325 21,760 Total liabilities and members’ capital $ 54,034 $ 56,460 |
Marketable Securities, Fair V_2
Marketable Securities, Fair Value Measurements and Margin Loan (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Marketable Securities Fair Value Measurements And Margin Loan | |
Schedule of available-for-sale Securities Reconciliation | Schedule of available-for-sale Securities Reconciliation As of June 30, 2022 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Marketable Securities Equity Securities $ 3,621 $ - $ (332 ) $ 3,289 |
Mortgages payable, net (Tables)
Mortgages payable, net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Schedule of mortgages Payable, Net | Schedule of mortgages Payable, Net Description Interest Weighted Average Maturity Amount Due As of As of Revolving Credit Facility LIBOR plus 3.15% 4.04 September 2022 $ 123,045 $ 123,045 $ 123,045 Courtyard – Paso Robles Repaid in full - - 13,419 Total mortgages payable 4.04 $ 123,045 123,045 136,464 Less: Deferred financing costs (75 ) (297 ) Total mortgages payable, net $ 122,970 $ 136,167 |
Schedule of principal maturities | Schedule of principal maturities 2022 2023 2024 2025 2026 Thereafter Total Principal maturities $ 123,045 $ - $ - $ - $ - $ - $ 123,045 Less: deferred financing costs (75 ) Total principal maturities, net $ 122,970 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of fees payments to Company's Advisor | Schedule of fees payments to Company's Advisor For the For the 2022 2021 2022 2021 Asset management fees (general and administrative costs) $ 680 $ 738 $ 1,418 $ 1,475 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments, All Other Investments [Abstract] | |
Schedule of Mortgages payable and the related estimated fair value | Schedule of Mortgages payable and the related estimated fair value Carrying Estimated Mortgages payable $ 136,464 $ 136,592 |
Structure (Details Narrative)
Structure (Details Narrative) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 6 Months Ended | |
Sep. 27, 2014 | May 20, 2008 | Jun. 30, 2022 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Business acquired assets | $ 17,700 | ||
Cash | $ 12,900 | 12,900 | |
Equity interests | 48.60% | ||
Noncontrolling interests | $ 4,800 | $ 17,700 | |
General Partner [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Contribution from advisor | $ 2 | ||
Number of limited partner units issued to advisor | 200 | ||
Limited Partner [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Partners Capital Account, Units, Contributed | 177 | ||
Partners Capital Account, Contributions | $ 17,700 | ||
Brownmill Joint Venture [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Ownership interest | 48.60% | ||
Lightstone Value Plus Reit Iii Llc [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Issuance of common shares, shares | 20,000 | ||
Issuance of common shares, value | $ 200 | ||
Shares issued, price per share | $ 10 | ||
Lightstone Reit Iii [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
General partner ownership interest | 99% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - (Details - Summary of total revenues) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Product Information [Line Items] | ||||
Total revenues | $ 15,152 | $ 11,718 | $ 28,229 | $ 19,165 |
Occupancy [Member] | ||||
Product Information [Line Items] | ||||
Total revenues | 14,515 | 11,255 | 27,023 | 18,467 |
Food and Beverage [Member] | ||||
Product Information [Line Items] | ||||
Total revenues | $ 637 | $ 463 | $ 1,206 | $ 698 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Apr. 30, 2020 | Jun. 30, 2022 | Mar. 31, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||
Proceed from loans | $ 300 | $ 900 | $ 3,300 | ||
Paycheck Protection Program [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceed from loans | $ 3,300 | $ 3,700 |
Held for Sale and Disposition_3
Held for Sale and Disposition Activities (Details- Assets and liabilities held for sale) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Abstract] | ||
Net investment property | $ 4,715 | |
Accounts receivable and other assets | 181 | |
Total assets held for sale | 4,896 | $ 0 |
Accounts payable and other accrued expenses | 243 | |
Total liabilities held for sale | $ 243 | $ 0 |
Held for Sale and Disposition_4
Held for Sale and Disposition Activities (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Jul. 14, 2022 | May 27, 2022 | Mar. 22, 2022 | Jun. 30, 2022 | |
Subsequent Event [Line Items] | ||||
Contractual sales price | $ 5,900 | $ 3,230 | ||
Payments for Loans | $ 13,400 | |||
Total cost | 14,100 | |||
Working capital | 17,800 | |||
Restricted cash | 17,000 | |||
Paso Robles [Member] | ||||
Subsequent Event [Line Items] | ||||
Sale of investment property | $ 7,700 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Principal amount | $ 4,600 | |||
Outstanding balance | $ 118,400 |
Investments in Unconsolidated_3
Investments in Unconsolidated Affiliated Real Estate Entities (Details - Real estate entities) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||
Total investments in unconsolidated affiliated real estate entities | $ 16,505 | $ 17,958 |
Brownmill Joint Venture [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership Percentage | 48.60% | |
Total investments in unconsolidated affiliated real estate entities | $ 6,557 | 6,793 |
Hilton Garden Inn Joint Venture [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership Percentage | 50% | |
Total investments in unconsolidated affiliated real estate entities | $ 9,948 | $ 11,165 |
Business Acquisition, Date of Acquisition Agreement | Mar. 27, 2018 |
Investments in Unconsolidated_4
Investments in Unconsolidated Affiliated Real Estate Entities (Details - Condensed income statements for the Brownmill Joint Venture) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Revenue | $ 15,152 | $ 11,718 | $ 28,229 | $ 19,165 | |
Depreciation and amortization | 1,923 | 2,560 | 4,191 | 5,252 | |
Operating income | 1,172 | (585) | 403 | (3,928) | |
Net income | 161 | (641) | 5,892 | (5,285) | |
Brownmill Joint Venture [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Revenue | 1,110 | 975 | 2,148 | 2,025 | |
Property operating expenses | 418 | 416 | 867 | 721 | |
Depreciation and amortization | 220 | 191 | 432 | 367 | |
Operating income | 472 | 368 | 849 | 937 | |
Interest expense and other, net | (137) | (163) | (307) | (329) | |
Net income | 335 | 205 | 542 | 608 | |
Company’s share of net income | 163 | 99 | 264 | 295 | |
Additional depreciation and amortization expense | [1] | (31) | (31) | (62) | (62) |
Company’s earnings from investment | $ 132 | $ 68 | $ 202 | $ 233 | |
[1]Additional depreciation and amortization expense relates to the amortization of the difference between the cost of the interest in the Brownmill Joint Venture and the amount of the underlying equity in net assets of the Brownmill Joint Venture. |
Investments in Unconsolidated_5
Investments in Unconsolidated Affiliated Real Estate Entities (Details - Condensed balance sheets for Brownmill Joint Venture) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 27, 2014 |
Restructuring Cost and Reserve [Line Items] | |||
Cash and restricted cash | $ 12,900 | $ 12,900 | |
Total assets | 250,244 | $ 260,736 | |
Members’ capital | 105,103 | 99,975 | |
Total liabilities and members’ capital | 250,244 | 260,736 | |
Brownmill Joint Venture [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Real estate, at cost (net) | 17,408 | 17,830 | |
Cash and restricted cash | 1,187 | 1,152 | |
Other assets | 1,562 | 1,518 | |
Total assets | 20,157 | 20,500 | |
Mortgage payable | 13,468 | 13,594 | |
Other liabilities | 806 | 666 | |
Members’ capital | 5,883 | 6,240 | |
Total liabilities and members’ capital | $ 20,157 | $ 20,500 |
Investments in Unconsolidated_6
Investments in Unconsolidated Affiliated Real Estate Entities (Details - Condensed income statements for the Hilton Garden Inn Joint Venture) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Revenues | $ 15,152 | $ 11,718 | $ 28,229 | $ 19,165 |
General and administrative costs | 1,168 | 1,150 | 2,549 | 2,415 |
Depreciation and amortization | 1,923 | 2,560 | 4,191 | 5,252 |
Operating income | 1,172 | (585) | 403 | (3,928) |
Net income/(loss) | 161 | (641) | 5,892 | (5,285) |
Hilton Garden Inn [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Revenues | 2,910 | 1,764 | 5,078 | 3,183 |
Property operating expenses | 1,518 | 1,037 | 2,946 | 1,909 |
General and administrative costs | 6 | 8 | 16 | 18 |
Depreciation and amortization | 606 | 621 | 1,226 | 1,256 |
Operating income | 780 | 98 | 890 | 0 |
Interest expense | (448) | (434) | (875) | (831) |
Net income/(loss) | 332 | (336) | 15 | (831) |
Company’s share of net income/(loss) (50.00%) | $ 166 | $ (168) | $ 8 | $ (416) |
Investments in Unconsolidated_7
Investments in Unconsolidated Affiliated Real Estate Entities (Details - Condensed balance sheets for Hilton Garden Inn Joint Venture) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 27, 2014 |
Restructuring Cost and Reserve [Line Items] | |||
Investment property, net | $ 242,357 | $ 276,801 | |
Cash | 12,900 | $ 12,900 | |
Total assets | 250,244 | 260,736 | |
Members’ capital | 105,103 | 99,975 | |
Total liabilities and members’ capital | 250,244 | 260,736 | |
Hilton Garden Inn [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Investment property, net | 51,272 | 52,415 | |
Cash | 1,461 | 2,841 | |
Other assets | 1,301 | 1,204 | |
Total assets | 54,034 | 56,460 | |
Mortgage payable, net | 33,007 | 33,115 | |
Other liabilities | 1,702 | 1,585 | |
Members’ capital | 19,325 | 21,760 | |
Total liabilities and members’ capital | $ 54,034 | $ 56,460 |
Investments in Unconsolidated_8
Investments in Unconsolidated Affiliated Entities (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |||
Apr. 07, 2021 | Jun. 02, 2020 | Mar. 27, 2018 | Jun. 30, 2022 | Jun. 30, 2021 | |
Hilton Garden Inn Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds from mortgage | $ 900 | ||||
Debt Instrument, Interest Rate, Basis for Effective Rate | LIBOR plus 2.15%, subject to a 4.03% | ||||
Venture pre-funding | $ 1,200 | ||||
Brownmill Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds from Sale of Interest in Corporate Unit | $ 100,000 | ||||
Business Acquisition Percentage Of Voting Interest Acquired | 48.60% | ||||
Proceeds from Equity Method Investment, Distribution, Return of Capital | $ 438 | $ 87 | |||
Hilton Garden Inn [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Business Acquisition Percentage Of Voting Interest Acquired | 50% | ||||
Proceeds from Equity Method Investment, Distribution, Return of Capital | $ 3,200 | ||||
Aggregate purchase price | $ 60,000 | ||||
Offering funds used in acquisition | 12,900 | ||||
Proceeds from Issuance of Debt | $ 35,000 | ||||
Business Acquisition Percentage Of Voting Interest Acquired | 50% | 50% | |||
Principal paydown | $ 1,700 | ||||
Cash collateral | $ 700 | ||||
Payments to Acquire Interest in Joint Venture | $ 2,800 | ||||
Hilton Garden Inn [Member] | Reportable Legal Entities [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Offering funds used in acquisition | $ 25,000 |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements (Details - Available for Sale Securities) - Mutual Fund [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Equity securities, Adjusted Cost | $ 3,621 | $ 6,718 |
Equity securities, Gross Unrealized Gains | 0 | 59 |
Equity securities, gross unrealized losses | (332) | 0 |
Equity securities, Fair Value | $ 3,289 | $ 6,777 |
Marketable Securities, Fair V_3
Marketable Securities, Fair Value Measurements and Margin Loan (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Marketable Securities Fair Value Measurements And Margin Loan | ||
Margin loan | $ 2,300 | |
Debt Instrument, Interest Rate Terms | LIBOR plus 0.85% |
Mortgages payable, net (Details
Mortgages payable, net (Details -Summary of Mortgages payable, net) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | ||
Interest Rate | LIBOR plus 0.85% | |
Weighted Average Interest Rate | 4.04% | |
Amount Due at Maturity | $ 123,045 | |
Total mortgages payable | 123,045 | $ 136,464 |
Less: Deferred financing costs | (75) | (297) |
Total mortgages payable, net | $ 122,970 | 136,167 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest Rate | LIBOR plus 3.15% (floor of 4.00%) | |
Weighted Average Interest Rate | 4.04% | |
Maturity Date | September 2022 | |
Amount Due at Maturity | $ 123,045 | |
Total mortgages payable | 123,045 | 123,045 |
Courtyard Paso Robles [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount Due at Maturity | 0 | |
Total mortgages payable | $ 0 | $ 13,419 |
Mortgages payable, net (Detai_2
Mortgages payable, net (Details - Summary of principal maturities) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | ||
2022 | $ 123,045 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Principal maturities | 123,045 | $ 136,464 |
Less: Deferred financing costs | (75) | (297) |
Total mortgages payable, net | $ 122,970 | $ 136,167 |
Mortgages payable, net (Detai_3
Mortgages payable, net (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | ||||
Dec. 14, 2017 | Feb. 28, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | Jul. 13, 2016 | |
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Face Amount | $ 900 | $ 1,800 | |||
Long-term Debt | 122,970 | $ 136,167 | |||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 140,000 | ||||
Line Of Credit Facility Current Borrowing Capacity Percentage | 65% | ||||
Cash collateral | 2,500 | ||||
Debt Instrument, Face Amount | $ 123,000 | ||||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Interest Rate, Basis for Effective Rate | On June 2, 2020, the Revolving Credit Facility was amended to provide for (i) the deferral of the six monthly debt service payments aggregating $2.6 million from April 1, 2020 through September 30, 2020, until November 15, 2021; (ii) a 100 bps reduction in the interest rate spread to LIBOR plus 2.15%, subject to a 3.00% floor, for the six-month period from September 1, 2020 through February 28, 2021; (iii) the Company pre-funding $2.5 million into a cash collateral reserve account to cover the six monthly debt service payments which were due from October 1, 2020 through March 1, 2021; and (iv) a waiver of all financial covenants for quarter-end periods before June 30, 2021 | ||||
Paso Robles Mortgage Loan [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.49% | ||||
Debt Instrument, Periodic Payment | $ 79 | ||||
Long-term Debt | $ 13,000 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Apr. 30, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | |||||||
Proceeds from notes payable | $ 0 | $ 3,746 | |||||
Proceeds from PPP Loans | $ 300 | 900 | $ 3,300 | ||||
Accrued interest | 100 | ||||||
Notes Payable | 2,903 | 2,903 | 3,746 | ||||
Forgiveness of debt | $ 1,500 | $ 1,500 | |||||
Paycheck Protection Program [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Proceeds from PPP Loans | $ 3,300 | $ 3,700 | |||||
Notes Payable | $ 2,900 | $ 2,900 | $ 3,700 | ||||
Paycheck Protection Program [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Proceeds from notes payable | $ 3,700 | ||||||
Debt Instrument, Interest Rate During Period | 1% |
Equity (Details Narrative)
Equity (Details Narrative) shares in Thousands | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Equity [Abstract] | |
Share redemption program, annual limitation, percentage of weighted average shares outstanding | 0.50% |
Stock Repurchased | shares | 90,275 |
Repurchase price per share | $ / shares | $ 8.47 |
Related Party Transactions (Det
Related Party Transactions (Details - Summary of fees incurred associated with the payments) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Advisor [Member] | ||||
Related Party Transaction [Line Items] | ||||
Asset management fees (general and administrative costs) | $ 680 | $ 738 | $ 1,418 | $ 1,475 |
Related Party Transactions (D_2
Related Party Transactions (Details Narrative) - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 27, 2014 |
Related Party Transactions [Abstract] | ||
Cash | $ 12,900 | $ 12,900 |
Equity interests | 4,800 | |
Noncontrolling interests | $ 17,700 | $ 4,800 |
Financial Instruments (Details
Financial Instruments (Details - Carrying amount and estimated fair value) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Investments, All Other Investments [Abstract] | ||
Mortgages payable-Carrying Amount | $ 123,045 | $ 136,464 |
Mortgages payable-Estimated Fair Value | $ 136,592 |