Cover
Cover - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Aug. 07, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 | |
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 | 17,100 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Investment property: | ||
Land and improvements | $ 26,134 | $ 32,208 |
Building and improvements | 145,956 | 177,550 |
Furniture and fixtures | 28,548 | 33,037 |
Construction in progress | 208 | 125 |
Gross investment property | 200,846 | 242,920 |
Less accumulated depreciation | (55,509) | (62,835) |
Net investment property | 145,337 | 180,085 |
Investments in unconsolidated affiliated entities | 13,725 | 13,793 |
Cash and cash equivalents | 33,585 | 42,233 |
Marketable securities, available for sale | 8,993 | 4,193 |
Restricted cash | 414 | 333 |
Accounts receivable and other assets | 4,351 | 4,805 |
Assets held for sale | 27,881 | |
Total Assets | 234,286 | 245,442 |
Liabilities and Stockholders’ Equity | ||
Accounts payable and other accrued expenses | 6,704 | 7,977 |
Mortgage payable, net | 118,244 | 118,180 |
Distributions payable | 1,281 | |
Due to related party | 456 | 462 |
Liabilities held for sale | 1,206 | |
Total Liabilities | 127,891 | 126,619 |
Company’s stockholders’ equity: | ||
Preferred shares, $0.01 par value, 10.0 million shares authorized, none issued and outstanding | ||
Common stock, $0.01 par value; 100.0 million shares authorized, 17.1 million shares issued and outstanding | 170 | 171 |
Additional paid-in-capital | 144,210 | 144,971 |
Accumulated other comprehensive income | 7 | |
Accumulated deficit | (49,167) | (37,663) |
Total Company stockholders’ equity | 95,213 | 107,486 |
Noncontrolling interests | 11,182 | 11,337 |
Total Stockholders’ Equity | 106,395 | 118,823 |
Total Liabilities and Stockholders’ Equity | $ 234,286 | $ 245,442 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
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 value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 17,100 | 17,100 |
Common stock, shares outstanding | 17,100 | 17,100 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 15,345 | $ 15,152 | $ 29,328 | $ 28,229 |
Expenses: | ||||
Property operating expenses | 10,559 | 10,035 | 20,513 | 19,596 |
Real estate taxes | 672 | 854 | 1,136 | 1,490 |
General and administrative costs | 1,246 | 1,168 | 2,438 | 2,549 |
Depreciation and amortization | 1,809 | 1,923 | 3,669 | 4,191 |
Impairment charge | 5,000 | 5,000 | ||
Total expenses | 19,286 | 13,980 | 32,756 | 27,826 |
Interest expense | (2,544) | (1,361) | (4,918) | (2,859) |
Gain on forgiveness of debt | 259 | 852 | ||
(Loss)/gain on sale of investment property | (3) | (65) | 339 | 7,681 |
Earnings from investments in unconsolidated affiliated entities | (30) | 298 | (294) | 209 |
Other expense, net | (723) | (118) | (796) | (395) |
Net (loss)/income | (7,241) | 185 | (9,097) | 5,891 |
Less: net loss/(income) attributable to noncontrolling interests | 118 | (24) | 159 | 1 |
Net (loss)/income applicable to Company’s common shares | $ (7,123) | $ 161 | $ (8,938) | $ 5,892 |
Net (loss)/income per Company's common share, basic | $ (0.42) | $ 0.01 | $ (0.52) | $ 0.34 |
Net (loss)/income per Company's common share, diluted | $ (0.42) | $ 0.01 | $ (0.52) | $ 0.34 |
Weighted average number of common shares outstanding, basic | 17,112 | 17,248 | 17,135 | 17,267 |
Weighted average number of common shares outstanding, diluted | 17,112 | 17,248 | 17,135 | 17,267 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Net (loss)/income | $ (7,241) | $ 185 | $ (9,097) | $ 5,891 |
Other comprehensive loss: | ||||
Holding loss on marketable securities, available for sale | (7) | |||
Comprehensive (loss)/income | (7,241) | 185 | (9,104) | 5,891 |
Less: Comprehensive loss/(income) attributable to noncontrolling interests | 118 | (24) | 159 | 1 |
Comprehensive (loss)/income attributable to the Company’s common shares | $ (7,123) | $ 161 | $ (8,945) | $ 5,892 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' 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, 2021 | $ 173 | $ 146,308 | $ (46,506) | $ 11,493 | $ 111,468 | ||
Beginning balance, shares at Dec. 31, 2021 | 17,331 | ||||||
Net loss | 5,892 | (1) | 5,891 | ||||
Distributions to noncontrolling interests | (58) | (58) | |||||
Redemption and cancellation of shares | $ (1) | (763) | (764) | ||||
Redemption and cancellation of shares, shares | (90) | ||||||
Ending balance, value at Jun. 30, 2022 | $ 172 | 145,545 | (40,614) | 11,434 | 116,537 | ||
Ending 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 loss | 161 | 24 | 185 | ||||
Distributions to noncontrolling interests | (10) | (10) | |||||
Redemption and cancellation of shares | $ (1) | (266) | (267) | ||||
Redemption and cancellation of shares, shares | (28) | ||||||
Ending balance, value at Jun. 30, 2022 | $ 172 | 145,545 | (40,614) | 11,434 | 116,537 | ||
Ending balance, shares at Jun. 30, 2022 | 17,241 | ||||||
Beginning balance, value at Dec. 31, 2022 | $ 171 | 144,971 | 7 | (37,663) | 11,337 | 118,823 | |
Beginning balance, shares at Dec. 31, 2022 | 17,172 | ||||||
Net loss | (8,938) | (159) | (9,097) | ||||
Other comprehensive loss | (7) | (7) | |||||
Distributions declared | [1] | (2,566) | (2,566) | ||||
Contributions of noncontrolling interests | 4 | 4 | |||||
Redemption and cancellation of shares | $ (1) | (761) | (762) | ||||
Redemption and cancellation of shares, shares | (76) | ||||||
Ending balance, value at Jun. 30, 2023 | $ 170 | 144,210 | (49,167) | 11,182 | 106,395 | ||
Ending balance, shares at Jun. 30, 2023 | 17,096 | ||||||
Beginning balance, value at Mar. 31, 2023 | $ 171 | 144,798 | (40,763) | 11,300 | 115,506 | ||
Beginning balance, shares at Mar. 31, 2023 | 17,154 | ||||||
Net loss | (7,123) | (118) | (7,241) | ||||
Distributions declared | [2] | (1,281) | (1,281) | ||||
Redemption and cancellation of shares | $ (1) | (588) | (589) | ||||
Redemption and cancellation of shares, shares | (58) | ||||||
Ending balance, value at Jun. 30, 2023 | $ 170 | $ 144,210 | $ (49,167) | $ 11,182 | $ 106,395 | ||
Ending balance, shares at Jun. 30, 2023 | 17,096 | ||||||
[1]Distributions per share were $0.150.[2]Distributions per share were $0.075. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss)/income | $ (9,097) | $ 5,891 |
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | ||
Depreciation and amortization | 3,669 | 4,191 |
Impairment charge | 5,000 | |
Amortization of deferred financing costs | 203 | 160 |
Gain on sale of investment property | (339) | (7,681) |
Gain on forgiveness of debt | (852) | |
Earnings from investments in unconsolidated affiliated entities | 294 | (209) |
Other non-cash adjustments | 318 | 608 |
Changes in assets and liabilities: | ||
Increase in accounts receivable and other assets | (572) | (2,287) |
(Decrease)/increase in accounts payable and other accrued expenses | (61) | 837 |
Decrease in due to related party | (6) | (60) |
Net cash (used in)/provided by operating activities | (591) | 598 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investment property | (646) | (280) |
Proceeds from the sale of marketable securities | 2,957 | 3,015 |
Purchases of marketable securities | (7,878) | |
Proceeds from sale of investment property, net of closing costs | 31,126 | |
Contributions to unconsolidated affiliated entities | (445) | |
Distributions from unconsolidated affiliated entities | 219 | 1,663 |
Net cash (used in)/provided by investing activities | (5,793) | 35,524 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments on mortgages payable | (13,419) | |
Payment on margin loan | (2,292) | |
Payment of loan fees and expenses | (140) | |
Redemption and cancellation of common shares | (762) | (764) |
Distributions paid to noncontrolling interests | (58) | |
Distributions paid to common stockholders | (1,285) | |
Contributions of noncontrolling interests | 4 | |
Net cash used in financing activities | (2,183) | (16,533) |
Change in cash, cash equivalents and restricted cash | (8,567) | 19,589 |
Cash, cash equivalents and restricted cash, beginning of year | 42,566 | 16,959 |
Cash, cash equivalents and restricted cash, end of period | 33,999 | 36,548 |
Supplemental cash flow information for the periods indicated is as follows: | ||
Cash paid for interest | 4,615 | 2,733 |
Cash paid for income taxes | 1,395 | 189 |
Distributions declared, but not paid | 1,281 | |
Holding loss on marketable securities, available for sale | 7 | |
Cash and cash equivalents | 33,585 | 18,656 |
Restricted cash | 414 | 17,892 |
Total cash, cash equivalents and restricted cash | $ 33,999 | $ 36,548 |
Business and Structure
Business and Structure | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Structure | 1. Business and Structure Lightstone Value Plus REIT II, Inc. (“Lightstone REIT II”), 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, 2023, 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 in these consolidated financial statements refers to Lightstone REIT II, its Operating Partnership or the Company as required by the context in which such pronoun is used. Through the Operating Partnership, the Company owns and operates commercial properties and makes real estate-related investments. Since its inception, the Company has primarily acquired and operated commercial hospitality properties, principally consisting of limited-service-hotels all located in the United States. However, its commercial holdings may also consist of full-service hotels, and to a lesser extent, retail (primarily multi-tenanted shopping centers), industrial and office properties. The Company’s real estate investments are held by it alone or jointly with other parties. In addition, the Company may invest up to 20% of its net assets in collateralized debt obligations, commercial mortgage-backed securities (“CMBS”) and mortgage and mezzanine loans secured, directly or indirectly, by the same types of properties which it may acquire directly. Although most of its investments are these types, the Company may invest in whatever types of real estate or real estate-related investments that it believes are in its best interests. The Company evaluates all of its real estate investments as one operating segment. The Company currently intends to hold its investments until such time as it determines that a sale or other disposition appears to be advantageous to achieve its investment objectives or until it appears that the objectives will not be met. As of June 30, 2023, the Company (i) majority owned and consolidated the operating results and financial condition of 12 limited service hotels containing a total of 1,582 rooms, (ii) held an unconsolidated 48.6% The Brownmill Joint Venture owns Browntown Shopping Center, located in Old Bridge, New Jersey, and Millburn Mall, located in Vauxhaull, New Jersey. The Hilton Garden Inn Joint Venture owns a 183-room, limited-service hotel (the “Hilton Garden Inn – Long Island City) located in the Long Island City neighborhood in the Queens borough of New York City. Both the Brownmill Joint Venture and the Hilton Garden Inn Joint Venture are between the Company and related parties. As of June 30, 2023, seven of the Company’s consolidated limited service hotels are held in LVP Holdco JV LLC (the “Hotel Joint Venture”), a joint venture formed between the Company and Lightstone Value Plus REIT I, Inc. (“Lightstone REIT I”), a related party REIT also sponsored by The Lightstone Group, LLC. The Company and Lightstone REIT I have 97.5% and 2.5% membership interests in the Hotel Joint Venture, respectively. Additionally, as of June 30, 2023, one of the Company’s consolidated hotels also has ownership interests held by unrelated minority owners. The membership interests of Lightstone REIT 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 20,000 200 10.00 17.7 The Company has no employees. The Company’s Advisor and its affiliates perform a full range of real estate services for it, including asset management, accounting, legal, and property management, as well as investor relations services. The Company is dependent on the Advisor and its affiliates for services that are essential to it, including asset management and acquisition, disposition and financing activities, and other general administrative responsibilities. If the Advisor and its affiliates are unable to provide these services to the Company, it would be required to provide the services itself or obtain the services from other parties. The Company also uses 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. On January 17, 2023, the Company’s stockholders approved an amendment and restatement to the Company’s charter pursuant to which the Company is no longer required to either (a) amend its charter to extend the deadline to begin the process of achieving a liquidity event, or (b) hold a stockholders meeting to vote on a proposal for an orderly liquidation of its portfolio. Noncontrolling Interests Partners of the Operating Partnership Limited Partner On May 20, 2008, the Advisor contributed $ 2 Associate General Partner In connection with the Company’s Offerings, 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 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 for any periods after December 31, 2019. Since the Company’s inception through June 30, 2023, 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. The Subordinated Profits Interests may also entitle the Associate General Partner to a portion of any liquidating distributions made by the Operating Partnership. The value of such distributions will depend upon the net sale proceeds upon the liquidation of the Company and, therefore, cannot be determined at the present time. Liquidating distributions to the Associate General Partner will always be subordinated until stockholders receive a distribution equal to their initial investment plus a stated preferred return. See Note 8 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 REIT I and (ii) membership interests held by minority owners in one of the Company’s hotels. Related Parties The Company’s Sponsor, Advisor and its affiliates, including the Associate General Partner, are related parties of the Company as well as the other public REITs also sponsored and/or advised by these entities. Certain of these entities are entitled to compensation and reimbursement for services and costs incurred 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 expense reimbursements as outlined in each of the respective agreements. See Note 8 for additional information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation and 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, 2023, 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 addition, interests in entities acquired are evaluated based on accounting principles generally accepted in the United States of America (“GAAP”), and entities deemed to be variable interest entities (“VIE”) in which the Company is the primary beneficiary are also consolidated. If the interest in the entity is determined not to be a VIE, then the entity is evaluated for consolidation based on legal form, economic substance, and the extent to which the Company has control, substantive participating rights or both under the respective ownership agreement. For entities in which the Company has less than a controlling interest or entities which it is not deemed to be the primary beneficiary, it accounts for the investment using the equity method of accounting. 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, 2022. 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 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 investment properties and investments in other unconsolidated 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, 2022 included herein has been derived from the consolidated balance sheet included in the Company’s Annual Report on Form 10-K. The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. Income Taxes The Company has elected to be taxed as a REIT commencing with the taxable year ended December 31, 2009. If the Company qualifies as a REIT, it generally will not be subject to U.S. federal income tax on its taxable income or capital gain that it distributes to its stockholders. To maintain its REIT qualification, the Company must meet a number of organizational and operational requirements, including a requirement that it annually distribute to its stockholders at least 90% of its REIT taxable income (which does not equal net income, as calculated in accordance with GAAP), determined without regard to the deduction for dividends paid and excluding any net capital gain. If the Company fails to remain qualified for taxation as a REIT in any subsequent year and does not qualify for certain statutory relief provisions, its income for that year will be taxed at the regular corporate rate, and it may be precluded from qualifying for treatment as a REIT for the four-year period following its failure to qualify as a REIT. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. 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. The Company’s income tax expense are included in other expense, net on its consolidated statements of operations. During the three and six months ended June 30, 2023, the Company recorded income tax expense of $ 1.2 1.4 48 As of June 30, 2023 and December 31, 2022, the Company had no Revenues 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 2023 2022 2023 2022 Room $ 14,548 $ 14,515 $ 27,873 $ 27,023 Food, beverage and other 797 637 1,455 1,206 Total revenues $ 15,345 $ 15,152 $ 29,328 $ 28,229 Gain on Forgiveness of Debt During the three and six months ended June 30, 2022, notice was received from the U.S. Small Business Administration that $ 0.3 0.9 Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board issued an accounting standards update, “Financial Instruments-Credit Losses-Measurement of Credit Losses on Financial Instruments,” which changes how entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The updated standard replaces the current “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For trade and other receivables and held to maturity debt securities, entities are required to use a new forward looking expected loss model that generally will result in the earlier recognition of allowances for losses. The Company has adopted this standard noting that it did not have a material impact on the Company’s financial statements or related disclosures. Adverse Developments Affecting the Financial Services Industry and Concentration of Risk As of June 30, 2023 and December 31, 2022, the Company had cash deposited in certain financial institutions in excess of federally insured levels. The Company regularly monitors the financial stability of these financial institutions and believes that it is not exposed to any significant credit risk in cash and cash equivalents. However, in March and April 2023, certain U.S. government banking regulators took steps to intervene in the operations of certain financial institutions due to liquidity concerns, which caused general heightened uncertainties in financial markets. While these events have not had a material direct impact on the Company’s operations, if further liquidity and financial stability concerns arise with respect to banks and financial institutions, either nationally or in specific regions, the Company’s ability to access cash or enter into new financing arrangements may be threatened, which could have a material adverse effect on its business, financial condition and results of operations. Current Environment The Company’s operating results and financial condition are substantially impacted by the overall health of local, U.S. national and global economies and may be influenced by market and other challenges. Additionally, its business and financial performance may be adversely affected by current and future economic and other conditions; including, but not limited to, availability or terms of financings, financial markets volatility and uncertainty as a result of recent banking failures, political upheaval or uncertainty, natural and man-made disasters, terrorism and acts of war, unfavorable changes in laws and regulations, outbreaks of contagious diseases, cybercrime, loss of key relationships, inflation and recession. The Company’s overall performance depends in part on worldwide economic and geopolitical conditions and their impacts on consumer behavior. Worsening economic conditions, increases in costs due to inflation, higher interest rates, certain labor and supply chain challenges and other changes in economic conditions may adversely affect the Company’s results of operations and financial performance. |
Held for Sale and Disposition A
Held for Sale and Disposition Activities | 6 Months Ended |
Jun. 30, 2023 | |
Held For Sale And Disposition Activities | |
Held for Sale and Disposition Activities | 3. Held for Sale and Disposition Activities Held for Sale - Florida Hotel Portfolio On May 8, 2023, the Hotel Joint Venture, which the Company majority owns and consolidates, through its subsidiaries (collectively, the “Sellers”), and Vista Acquisitions Inc. (the “Florida Hotel Portfolio Buyer”), an unaffiliated third party, entered into a purchase and sale agreement, as amended, (the “Florida Hotel Portfolio Agreement”) pursuant to which the Sellers would dispose of (i) a 126-room limited service hotel which operates as a Hampton Inn, located in Miami, Florida (the “Hampton Inn - Miami”), and (ii) a 104-room select service hotel which operates as a Hampton Inn & Suites, located in Fort Lauderdale, Florida (the “Hampton Inn & Suites - Fort Lauderdale”, and collectively the “Florida Hotel Portfolio”), to the Florida Hotel Portfolio Buyer for an aggregate contractual sales price of $ 28.0 5.0 27.1 As of June 30, 2023, the Florida Hotel Portfolio met all of the required 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, 2023. 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 $ 27,068 Accounts receivable and other assets 813 Total assets held for sale $ 27,881 Accounts payable and other accrued expenses $ 1,206 Total liabilities held for sale $ 1,206 Disposition Activities During the six months ended June 30, 2023, the Company recognized a gain on the sale of investment property of $ 0.3 Disposition of Florida Hotel Portfolio On July 18, 2023 and July 21, 2023, the Sellers completed the sale of the Hampton Inn & Suites - Fort Lauderdale and the Hampton Inn - Miami to the Florida Hotel Portfolio Buyer for $ 11.5 16.5 16.7 101.8 The Hotel Joint Venture net proceeds from the disposition of the Florida Hotel Portfolio were $10.3 million (of which the Company’s share was $10.0 million and Lightstone REIT I’s was $0.3 million), after the principal paydowns on the Revolving Credit Facility, closing and other costs, pro rations and working capital adjustments. The disposition of the Florida Hotel Portfolio does not qualify to be reported as discontinued operations since the disposition does not represent a strategic shift that has a major effect on the Company’s operations and financial results. Accordingly, the operating results of the Florida Hotel Portfolio will be reflected in the Company’s results from continuing operations for all periods presented through its dates of disposition. 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 Disposition of the TownePlace Suites – Little Rock On July 14, 2022, the Company completed the disposition of a 92-room hotel located in Little Rock, Arkansas, which operates as a TownePlace Suites (the “TownePlace Suites - Little Rock”), to an unaffiliated third party, for a contractual sales price of $ 5.9 4.6 1.2 0.8 The dispositions of both the Courtyard – Paso Robles and the TownePlace Suites - Little Rock did not qualify to be reported as discontinued operations since the dispositions 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 and the TownePlace Suites - Little Rock are reflected in the Company’s results from continuing operations for all periods presented through their respective dates of disposition. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliated Entities | 6 Months Ended |
Jun. 30, 2023 | |
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% $ 4,220 $ 4,204 Hilton Garden Inn Joint Venture March 27, 2018 50.0% 9,505 9,589 Total investments in unconsolidated affiliated real estate entities $ 13,725 $ 13,793 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 and a related party, 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, 2023, the Company owns a 48.6% 219 438 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 2023 2022 2023 2022 Revenue $ 972 $ 1,110 $ 1,941 $ 2,148 Property operating expenses 439 418 677 867 Depreciation and amortization 188 220 374 432 Operating income 345 472 890 849 Interest expense and other, net (38 ) (137 ) (322 ) (307 ) Net income $ 307 $ 335 $ 568 $ 542 Company’s share of net income $ 149 $ 163 $ 276 $ 264 Additional depreciation and amortization expense (1) (20 ) (31 ) (41 ) (62 ) Company’s earnings from investment $ 129 $ 132 $ 235 $ 202 (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, December 31, Investment property, net $ 12,725 $ 12,860 Cash and restricted cash 1,363 1,422 Other assets 1,484 1,283 Total assets $ 15,572 $ 15,565 Mortgage payable $ 13,209 $ 13,341 Other liabilities 684 662 Members’ capital 1,679 1,562 Total liabilities and members’ capital $ 15,572 $ 15,565 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 newly formed Hilton Garden Inn Joint Venture, the Hilton Garden Inn - Long Island City from an unrelated third party, for aggregate consideration of $ 60.0 25.0 35.0 12.9 50.0% Except as discussed below, the Hilton Garden Inn Mortgage bore interest at LIBOR plus 3.15%, subject to a 5.03% floor On June 2, 2020, the Hilton Garden Inn Mortgage was amended to provide for the deferral of the six monthly debt service payments aggregating $ 0.9 On March 27, 2023, the Hilton Garden Inn Joint Venture and the lender amended the Hilton Garden Inn Mortgage to extend the maturity date for 90 days, through June 25, 2023, to provide additional time to finalize the terms of a long-term extension. Subsequently, on May 31, 2023, the Hilton Garden Inn Mortgage was further amended to provide for (i) an extension of the maturity date for an additional five years, (ii) the interest rate to be adjusted to SOFR plus 3.25% May 31, 2028 3.0 Additionally, the Hilton Garden Inn Joint Venture will fund $1.3 million, through monthly payments of $37 from May 31, 2023 through June 1, 2026, into a cash collateral reserve account which may be drawn upon for specified capital expenditures. The Company and Lightstone REIT III each have a 50.0% co-managing membership interest in the Hilton Garden Inn Joint Venture. The Company accounts for its membership interest in the Hilton Garden Inn Joint Venture in accordance with the equity method of accounting because it exerts significant influence over but does not control the Hilton Garden Inn Joint Venture. All capital contributions and distributions of earnings from the Hilton Garden Inn Joint Venture are made on a pro rata basis in proportion to each member’s equity interest percentage. Any distributions in excess of earnings from the Hilton Garden Inn Joint Venture are made to the members pursuant to the terms of the Hilton Garden Inn Joint Venture’s operating agreement. The Company commenced recording its allocated portion of profit/loss and cash distributions beginning as of March 27, 2018 with respect to its membership interest of 50.0% in the Hilton Garden Inn Joint Venture. 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% 3.2 4.0 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 $ 3,115 $ 2,910 $ 5,144 $ 5,078 Property operating expenses 1,907 1,518 3,414 2,946 General and administrative costs 106 6 132 16 Depreciation and amortization 596 606 1,205 1,226 Operating income 506 780 393 890 Interest expense (825 ) (448 ) (1,451 ) (875 ) Net (loss)/income $ (319 ) $ 332 $ (1,058 ) $ 15 Company’s share of net (loss)/income (50.00%) $ (159 ) $ 166 $ (529 ) $ 8 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 $ 49,131 $ 50,254 Cash 1,042 1,231 Other assets 1,677 1,276 Total assets $ 51,850 $ 52,761 Mortgage payable, net $ 32,231 $ 32,233 Other liabilities 1,178 1,920 Members’ capital 18,441 18,608 Total liabilities and members’ capital $ 51,850 $ 52,761 |
Marketable Securities, Fair Val
Marketable Securities, Fair Value Measurements and Margin Loan | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
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, 2023 Adjusted Gross Gross Fair Marketable Securities Equity securities $ 9,428 $ 2 $ (437 ) $ 8,993 As of December 31, 2022 Adjusted Gross Gross Fair Marketable Securities Equity securities $ 3,620 $ - $ (321 ) $ 3,299 Debt securities United States Treasury Bills 887 7 - 894 Total $ 4,507 $ 7 $ (321 ) $ 4,193 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, 2023 and December 31, 2022, the Company’s United States Treasury Bills and money market funds were classified as Level 1 assets and the Company’s equity securities were classified as Level 2 assets. There were no transfers between the level classifications during the six months ended June 30, 2023. 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 carrying amounts of cash and cash equivalents, restricted cash, accounts receivable and other assets, accounts payable and other accrued expenses and due to related party approximated their fair values as of June 30, 2023 and December 31, 2022 because of the short maturity of these instruments. As of June 30, 2023 and December 31, 2022, the estimated fair value our mortgage payable approximated its carrying value because of the floating interest rate. Nonrecurring Fair Value Measurements During the second quarter of 2023 an impairment charge of $ 5.0 27.1 27.1 As of June 30, 2023, 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. No LIBOR plus 0.85% |
Mortgage payable, net
Mortgage payable, net | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Mortgage payable, net | 6. Mortgage payable, net Mortgage payable, net consisted of the following: Schedule of mortgages Payable, Net Weighted Average Description Interest for the Maturity Amount As of As of Revolving Credit Facility AMERIBOR plus 3.15% 8.00% September 2023 $ 118,485 $ 118,485 $ 118,485 Less: Deferred financing costs (241 ) (305 ) Total mortgages payable, net $ 118,244 $ 118,180 AMERIBOR as of June 30, 2023 and December 31, 2022 was 5.17% 4.64% 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% Except as discussed below, the Revolving Credit Facility, which was scheduled to mature on September 15, 2022 bore interest at LIBOR plus 3.15%, subject to a 4.00% floor. September 15, 2023 the interest rate was prospectively changed to AMERIBOR plus 3.15%, subject to a 4.00% floor. 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 In connection with the disposition of the TownePlace Suites – Little Rock on July 14, 2022, a required principal paydown of $ 4.6 118.5 As of June 30, 2023, the Company’s 12 majority-owned and consolidated hotel properties were all pledged as collateral under the Revolving Credit Facility and the outstanding principal balance was $ 118.5 Subsequently, on July 18, 2023 and July 21, 2023, in connection with the dispositions of the Hampton Inn & Suites – Fort Lauderdale and Hampton Inn – Miami, respectively, aggregate principal paydowns of $ 16.7 101.8 The Company currently intends to seek to extend or refinance the Revolving Credit Facility on or before its maturity date of September 15, 2023, however, there can be no assurances that it will be successful in such endeavors. |
Company_s Stockholder_s Equity
Company’s Stockholder’s Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Company’s Stockholder’s Equity | 7. Company’s Stockholder’s Equity Distributions on Common Shares On May 11, 2023, the Board of Directors authorized and the Company declared a Common Share distribution of $ 0.075 0.30 3% 10.00 1.3 On August 14, 2023, the Board of Directors authorized and the Company declared a Common Share distribution of $ 0.075 0.30 3% 10.00 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. SRP The Company’s share repurchase program (the “SRP”) may provide 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 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 of common stock, 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, 2023, the Company repurchased 76,461 9.96 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 Parties
Related Parties | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Parties | 8. Related Parties The Company’s Sponsor, Advisor and their affiliates, including the Special Limited Partner, are related parties of the Company as well as other public REITs also sponsored and/or advised by these entities. Pursuant to the terms of various agreements, certain of these entities are entitled to compensation and reimbursement of costs incurred for services related to the investment, development, management and disposition of the Company’s assets. The compensation is generally based on the cost of acquired properties/investments and the annual revenue earned from such properties/investments, and other such fees and expense reimbursements as outlined in each of the respective agreements. 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 2023 2022 2023 2022 Asset management fees (general and administrative costs) $ 657 $ 680 $ 1,316 $ 1,418 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. Subordinated Profits Interests In connection with the Company’s Offerings, the Associate General Partner, an affiliate of the Company’s Sponsor, contributed an aggregate of $17.7 million consisting of (i) cash of $ 12.9 4.8 17.7 These Subordinated Profit Interests, for which the aggregate consideration of $ 17.7 7.0% These Subordinated Profits Interests may entitle the Associate General Partner to a portion of any regular distributions that the Company makes to its stockholders, but only after its stockholders have received a stated preferred return. There have been no distributions declared on the Subordinated Profits Interests for any periods after December 31, 2019. Since the Company’s inception through June 30, 2023, the cumulative distributions declared and paid on the Subordinated Profits Interests were $ 7.9 The Subordinated Profits Interests may also entitle Lightstone SLP II, LLC to a portion of any liquidating distributions made by the Operating Partnership. The value of such distributions will depend upon the net sale proceeds upon the liquidation of the Company and, therefore, cannot be determined at the present time. Liquidating distributions to Lightstone SLP II, LLC will always be subordinated until stockholders receive a distribution equal to their initial investment plus a stated preferred return. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Management Agreements The Company’s hotels operate pursuant to management agreements (the “Management Agreements”) with various third-party property management companies. The property management companies perform management functions including, but not limited to, hiring and supervising employees, establishing room prices, establishing administrative policies and procedures, managing expenditures and arranging and supervising public relations and advertising. The Management Agreements are for terms ranging from 1 10 The Management Agreements provide for the payment of a base management fee equal to 3% 3.5% Franchise Agreements As of June 30, 2023, the Company’s hotels operated pursuant to various franchise agreements. Under the franchise agreements, the Company generally pays a fee equal to 5% 1.5% 3.5% The franchise agreements are generally for initial terms ranging from 15 20 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, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and 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, 2023, 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 addition, interests in entities acquired are evaluated based on accounting principles generally accepted in the United States of America (“GAAP”), and entities deemed to be variable interest entities (“VIE”) in which the Company is the primary beneficiary are also consolidated. If the interest in the entity is determined not to be a VIE, then the entity is evaluated for consolidation based on legal form, economic substance, and the extent to which the Company has control, substantive participating rights or both under the respective ownership agreement. For entities in which the Company has less than a controlling interest or entities which it is not deemed to be the primary beneficiary, it accounts for the investment using the equity method of accounting. 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, 2022. 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 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 investment properties and investments in other unconsolidated 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, 2022 included herein has been derived from the consolidated balance sheet included in the Company’s Annual Report on Form 10-K. The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. |
Income Taxes | Income Taxes The Company has elected to be taxed as a REIT commencing with the taxable year ended December 31, 2009. If the Company qualifies as a REIT, it generally will not be subject to U.S. federal income tax on its taxable income or capital gain that it distributes to its stockholders. To maintain its REIT qualification, the Company must meet a number of organizational and operational requirements, including a requirement that it annually distribute to its stockholders at least 90% of its REIT taxable income (which does not equal net income, as calculated in accordance with GAAP), determined without regard to the deduction for dividends paid and excluding any net capital gain. If the Company fails to remain qualified for taxation as a REIT in any subsequent year and does not qualify for certain statutory relief provisions, its income for that year will be taxed at the regular corporate rate, and it may be precluded from qualifying for treatment as a REIT for the four-year period following its failure to qualify as a REIT. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. 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. The Company’s income tax expense are included in other expense, net on its consolidated statements of operations. During the three and six months ended June 30, 2023, the Company recorded income tax expense of $ 1.2 1.4 48 As of June 30, 2023 and December 31, 2022, the Company had no |
Revenues | Revenues 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 2023 2022 2023 2022 Room $ 14,548 $ 14,515 $ 27,873 $ 27,023 Food, beverage and other 797 637 1,455 1,206 Total revenues $ 15,345 $ 15,152 $ 29,328 $ 28,229 |
Gain on Forgiveness of Debt | Gain on Forgiveness of Debt During the three and six months ended June 30, 2022, notice was received from the U.S. Small Business Administration that $ 0.3 0.9 |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board issued an accounting standards update, “Financial Instruments-Credit Losses-Measurement of Credit Losses on Financial Instruments,” which changes how entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The updated standard replaces the current “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For trade and other receivables and held to maturity debt securities, entities are required to use a new forward looking expected loss model that generally will result in the earlier recognition of allowances for losses. The Company has adopted this standard noting that it did not have a material impact on the Company’s financial statements or related disclosures. |
Adverse Developments Affecting the Financial Services Industry and Concentration of Risk | Adverse Developments Affecting the Financial Services Industry and Concentration of Risk As of June 30, 2023 and December 31, 2022, the Company had cash deposited in certain financial institutions in excess of federally insured levels. The Company regularly monitors the financial stability of these financial institutions and believes that it is not exposed to any significant credit risk in cash and cash equivalents. However, in March and April 2023, certain U.S. government banking regulators took steps to intervene in the operations of certain financial institutions due to liquidity concerns, which caused general heightened uncertainties in financial markets. While these events have not had a material direct impact on the Company’s operations, if further liquidity and financial stability concerns arise with respect to banks and financial institutions, either nationally or in specific regions, the Company’s ability to access cash or enter into new financing arrangements may be threatened, which could have a material adverse effect on its business, financial condition and results of operations. |
Current Environment | Current Environment The Company’s operating results and financial condition are substantially impacted by the overall health of local, U.S. national and global economies and may be influenced by market and other challenges. Additionally, its business and financial performance may be adversely affected by current and future economic and other conditions; including, but not limited to, availability or terms of financings, financial markets volatility and uncertainty as a result of recent banking failures, political upheaval or uncertainty, natural and man-made disasters, terrorism and acts of war, unfavorable changes in laws and regulations, outbreaks of contagious diseases, cybercrime, loss of key relationships, inflation and recession. The Company’s overall performance depends in part on worldwide economic and geopolitical conditions and their impacts on consumer behavior. Worsening economic conditions, increases in costs due to inflation, higher interest rates, certain labor and supply chain challenges and other changes in economic conditions may adversely affect the Company’s results of operations and financial performance. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of revenues from hotel operations | Schedule of revenues from hotel operations For the For the Revenues 2023 2022 2023 2022 Room $ 14,548 $ 14,515 $ 27,873 $ 27,023 Food, beverage and other 797 637 1,455 1,206 Total revenues $ 15,345 $ 15,152 $ 29,328 $ 28,229 |
Held for Sale and Disposition_2
Held for Sale and Disposition Activities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Held For Sale And Disposition Activities | |
Schedule of assets and liabilities held for sale | Schedule of assets and liabilities held for sale As of June 30, Net investment property $ 27,068 Accounts receivable and other assets 813 Total assets held for sale $ 27,881 Accounts payable and other accrued expenses $ 1,206 Total liabilities held for sale $ 1,206 |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliated Entities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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% $ 4,220 $ 4,204 Hilton Garden Inn Joint Venture March 27, 2018 50.0% 9,505 9,589 Total investments in unconsolidated affiliated real estate entities $ 13,725 $ 13,793 |
Brownmill Joint Venture [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of condensed income statement | Schedule of condensed income statement For the For the 2023 2022 2023 2022 Revenue $ 972 $ 1,110 $ 1,941 $ 2,148 Property operating expenses 439 418 677 867 Depreciation and amortization 188 220 374 432 Operating income 345 472 890 849 Interest expense and other, net (38 ) (137 ) (322 ) (307 ) Net income $ 307 $ 335 $ 568 $ 542 Company’s share of net income $ 149 $ 163 $ 276 $ 264 Additional depreciation and amortization expense (1) (20 ) (31 ) (41 ) (62 ) Company’s earnings from investment $ 129 $ 132 $ 235 $ 202 (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, December 31, Investment property, net $ 12,725 $ 12,860 Cash and restricted cash 1,363 1,422 Other assets 1,484 1,283 Total assets $ 15,572 $ 15,565 Mortgage payable $ 13,209 $ 13,341 Other liabilities 684 662 Members’ capital 1,679 1,562 Total liabilities and members’ capital $ 15,572 $ 15,565 |
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 $ 3,115 $ 2,910 $ 5,144 $ 5,078 Property operating expenses 1,907 1,518 3,414 2,946 General and administrative costs 106 6 132 16 Depreciation and amortization 596 606 1,205 1,226 Operating income 506 780 393 890 Interest expense (825 ) (448 ) (1,451 ) (875 ) Net (loss)/income $ (319 ) $ 332 $ (1,058 ) $ 15 Company’s share of net (loss)/income (50.00%) $ (159 ) $ 166 $ (529 ) $ 8 |
Schedule of condensed balance sheet | Schedule of condensed balance sheet As of As of June 30, December 31, Investment property, net $ 49,131 $ 50,254 Cash 1,042 1,231 Other assets 1,677 1,276 Total assets $ 51,850 $ 52,761 Mortgage payable, net $ 32,231 $ 32,233 Other liabilities 1,178 1,920 Members’ capital 18,441 18,608 Total liabilities and members’ capital $ 51,850 $ 52,761 |
Marketable Securities, Fair V_2
Marketable Securities, Fair Value Measurements and Margin Loan (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of available-for-sale Securities Reconciliation | Schedule of available-for-sale Securities Reconciliation As of June 30, 2023 Adjusted Gross Gross Fair Marketable Securities Equity securities $ 9,428 $ 2 $ (437 ) $ 8,993 As of December 31, 2022 Adjusted Gross Gross Fair Marketable Securities Equity securities $ 3,620 $ - $ (321 ) $ 3,299 Debt securities United States Treasury Bills 887 7 - 894 Total $ 4,507 $ 7 $ (321 ) $ 4,193 |
Mortgage payable, net (Tables)
Mortgage payable, net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of mortgages Payable, Net | Schedule of mortgages Payable, Net Weighted Average Description Interest for the Maturity Amount As of As of Revolving Credit Facility AMERIBOR plus 3.15% 8.00% September 2023 $ 118,485 $ 118,485 $ 118,485 Less: Deferred financing costs (241 ) (305 ) Total mortgages payable, net $ 118,244 $ 118,180 |
Related Parties (Tables)
Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of fees payments to Company's Advisor | Schedule of fees payments to Company's Advisor For the For the 2023 2022 2023 2022 Asset management fees (general and administrative costs) $ 657 $ 680 $ 1,316 $ 1,418 |
Business and Structure (Details
Business and Structure (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | |||
May 20, 2020 | Sep. 27, 2014 | May 20, 2008 | Jun. 30, 2023 | May 20, 2018 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Business acquired assets | $ 17,700 | ||||
Cash | 12,900 | ||||
Equity interests | 48.60% | ||||
Noncontrolling interests | $ 17,700 | $ 4,800 | |||
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 | ||||
General Partner [Member] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Contribution from advisor | $ 2 | ||||
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 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) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Product Information [Line Items] | ||||
Total revenues | $ 15,345 | $ 15,152 | $ 29,328 | $ 28,229 |
Occupancy [Member] | ||||
Product Information [Line Items] | ||||
Total revenues | 14,548 | 14,515 | 27,873 | 27,023 |
Food and Beverage [Member] | ||||
Product Information [Line Items] | ||||
Total revenues | $ 797 | $ 637 | $ 1,455 | $ 1,206 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | |||||
Income tax expense | $ 1,200,000 | $ 48,000 | $ 1,400,000 | $ 48,000 | |
Uncertain income tax positions | $ 0 | $ 0 | $ 0 | ||
Proceed from loans | $ 300,000 | $ 900,000 |
Held for Sale and Disposition_3
Held for Sale and Disposition Activities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Held For Sale And Disposition Activities | ||
Net investment property | $ 27,068 | |
Accounts receivable and other assets | 813 | |
Total assets held for sale | 27,881 | |
Accounts payable and other accrued expenses | 1,206 | |
Total liabilities held for sale | $ 1,206 |
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 | |||||
May 08, 2023 | Jul. 14, 2022 | Jul. 21, 2023 | Jul. 18, 2023 | Mar. 22, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Contractual sales price | $ 28,000 | $ 5,900 | $ 3,230 | |||||
Non-cash impairment charge | $ 5,000 | |||||||
Sale of investment property | $ 800 | $ 300 | ||||||
Principal amount | 4,600 | |||||||
Revolving credit facility description | The Hotel Joint Venture net proceeds from the disposition of the Florida Hotel Portfolio were $10.3 million (of which the Company’s share was $10.0 million and Lightstone REIT I’s was $0.3 million), after the principal paydowns on the Revolving Credit Facility, closing and other costs, pro rations and working capital adjustments. | |||||||
Payments for Loans | 13,400 | |||||||
Issuance costs | 14,100 | |||||||
Working capital | $ 1,200 | $ 17,800 | ||||||
Subsequent Event [Member] | Hampton Inn Suites [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Sale of investment property | $ 11,500 | |||||||
Principal amount | $ 16,700 | |||||||
Subsequent Event [Member] | Fort Lauderdale And Hampton Inn [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Sale of investment property | $ 16,500 | |||||||
Principal amount | $ 101,800 | |||||||
Florida Hotel Portfolio [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Sale of investment property | $ 27,100 | |||||||
Venture pre-funding | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Sale of investment property | $ 7,700 |
Investments in Unconsolidated_3
Investments in Unconsolidated Affiliated Entities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||
Total investments in unconsolidated affiliated real estate entities | $ 13,725 | $ 13,793 |
Hilton Garden Inn Joint Venture [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Business acquisition, date of acquisition agreement | Mar. 27, 2018 | |
Brownmill Joint Venture [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 48.60% | |
Total investments in unconsolidated affiliated real estate entities | $ 4,220 | 4,204 |
Hilton Garden Inn Joint Venture [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 50% | |
Total investments in unconsolidated affiliated real estate entities | $ 9,505 | $ 9,589 |
Investments in Unconsolidated_4
Investments in Unconsolidated Affiliated Entities (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Revenue | $ 15,345 | $ 15,152 | $ 29,328 | $ 28,229 | |
Depreciation and amortization | 1,809 | 1,923 | 3,669 | 4,191 | |
Net income | (7,123) | 161 | (8,938) | 5,892 | |
Brownmill Joint Venture [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Revenue | 972 | 1,110 | 1,941 | 2,148 | |
Property operating expenses | 439 | 418 | 677 | 867 | |
Depreciation and amortization | 188 | 220 | 374 | 432 | |
Operating income | 345 | 472 | 890 | 849 | |
Interest expense and other, net | (38) | (137) | (322) | (307) | |
Net income | 307 | 335 | 568 | 542 | |
Company’s share of net income | 149 | 163 | 276 | 264 | |
Additional depreciation and amortization expense | [1] | (20) | (31) | (41) | (62) |
Company’s earnings from investment | $ 129 | $ 132 | $ 235 | $ 202 | |
[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 Entities (Details 2) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Restructuring Cost and Reserve [Line Items] | ||
Cash and restricted cash | $ 12,900 | |
Total assets | 234,286 | $ 245,442 |
Members’ capital | 95,213 | 107,486 |
Total liabilities and members’ capital | 234,286 | 245,442 |
Brownmill Joint Venture [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Investment property, net | 12,725 | 12,860 |
Cash and restricted cash | 1,363 | 1,422 |
Other assets | 1,484 | 1,283 |
Total assets | 15,572 | 15,565 |
Mortgage payable | 13,209 | 13,341 |
Other liabilities | 684 | 662 |
Members’ capital | 1,679 | 1,562 |
Total liabilities and members’ capital | $ 15,572 | $ 15,565 |
Investments in Unconsolidated_6
Investments in Unconsolidated Affiliated Entities (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Revenues | $ 15,345 | $ 15,152 | $ 29,328 | $ 28,229 |
General and administrative costs | 1,246 | 1,168 | 2,438 | 2,549 |
Depreciation and amortization | 1,809 | 1,923 | 3,669 | 4,191 |
Net (loss)/income | (7,123) | 161 | (8,938) | 5,892 |
Hilton Garden Inn Joint Venture [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Revenues | 3,115 | 2,910 | 5,144 | 5,078 |
Property operating expenses | 1,907 | 1,518 | 3,414 | 2,946 |
General and administrative costs | 106 | 6 | 132 | 16 |
Depreciation and amortization | 596 | 606 | 1,205 | 1,226 |
Operating income | 506 | 780 | 393 | 890 |
Interest expense | (825) | (448) | (1,451) | (875) |
Net (loss)/income | (319) | 332 | (1,058) | 15 |
Company’s share of net (loss)/income (50.00%) | $ (159) | $ 166 | $ (529) | $ 8 |
Investments in Unconsolidated_7
Investments in Unconsolidated Affiliated Entities (Details 4) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Restructuring Cost and Reserve [Line Items] | ||
Investment property, net | $ 200,846 | $ 242,920 |
Cash | 12,900 | |
Total assets | 234,286 | 245,442 |
Members’ capital | 95,213 | 107,486 |
Total liabilities and members’ capital | 234,286 | 245,442 |
Hilton Garden Inn Joint Venture [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Investment property, net | 49,131 | 50,254 |
Cash | 1,042 | 1,231 |
Other assets | 1,677 | 1,276 |
Total assets | 51,850 | 52,761 |
Mortgage payable, net | 32,231 | 32,233 |
Other liabilities | 1,178 | 1,920 |
Members’ capital | 18,441 | 18,608 |
Total liabilities and members’ capital | $ 51,850 | $ 52,761 |
Investments in Unconsolidated_8
Investments in Unconsolidated Affiliated Entities (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |||
Mar. 27, 2023 | Mar. 27, 2018 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2020 | |
Hilton Garden Inn Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Debt instrument, interest rate, basis for effective rate | SOFR plus 3.25% | ||||
Proceeds from mortgage | $ 900 | ||||
Maturity date | May 31, 2028 | ||||
Principal paydown | $ 3,000 | ||||
Capital expenditures description | Additionally, the Hilton Garden Inn Joint Venture will fund $1.3 million, through monthly payments of $37 from May 31, 2023 through June 1, 2026, into a cash collateral reserve account which may be drawn upon for specified capital expenditures. | ||||
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 | $ 219 | $ 438 | |||
Hilton Garden Inn [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds from equity method investment, distribution, return of capital | $ 4,000 | ||||
Aggregate purchase price | $ 60,000 | ||||
Offering funds used in acquisition | 25,000 | ||||
Proceeds from issuance of debt | 35,000 | ||||
Venture pre-funding | $ 12,900 | ||||
Business acquisition percentage of voting interest acquired | 50% | 50% | |||
Debt instrument, interest rate, basis for effective rate | LIBOR plus 3.15%, subject to a 5.03% floor | ||||
Payments to acquire interest in joint venture | $ 3,200 |
Marketable Securities, Fair V_3
Marketable Securities, Fair Value Measurements and Margin Loan (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Marketable Securities [Line Items] | ||
Equity securities, Adjusted Cost | $ 4,507 | |
Equity securities, Gross Unrealized Gains | 7 | |
Equity securities, gross unrealized losses | (321) | |
Equity securities, Fair Value | 4,193 | |
Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Equity securities, Adjusted Cost | 887 | |
Equity securities, Gross Unrealized Gains | 7 | |
Equity securities, gross unrealized losses | ||
Equity securities, Fair Value | 894 | |
Equity Securities [Member] | ||
Marketable Securities [Line Items] | ||
Equity securities, Adjusted Cost | $ 9,428 | 3,620 |
Equity securities, Gross Unrealized Gains | 2 | |
Equity securities, gross unrealized losses | (437) | (321) |
Equity securities, Fair Value | $ 8,993 | $ 3,299 |
Marketable Securities, Fair V_4
Marketable Securities, Fair Value Measurements and Margin Loan (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Impairment charge | $ 5,000 | ||
Sale of investment property | $ 800 | 300 | |
Assets held for sale | 27,100 | ||
Margin loan | $ 0 | $ 0 | |
Debt Instrument, Interest Rate Terms | LIBOR plus 0.85% | ||
Florida Hotel Portfolio [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Sale of investment property | $ 27,100 |
Mortgage payable, net (Details)
Mortgage payable, net (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Line of Credit Facility [Line Items] | ||
Interest Rate | LIBOR plus 0.85% | |
Total mortgages payable | $ 118,485 | $ 118,485 |
Less: Deferred financing costs | (241) | (305) |
Total mortgages payable, net | $ 118,244 | $ 118,180 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest Rate | AMERIBOR plus 3.15% (floor of 4.00%) | |
Weighted Average Interest Rate | 8% | |
Maturity Date | September 2023 | |
Amount Due at Maturity | $ 118,485 |
Mortgage payable, net (Details
Mortgage payable, net (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | |||||||
Sep. 06, 2022 | Jul. 14, 2022 | Jul. 21, 2023 | Jul. 18, 2023 | Sep. 15, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Jul. 13, 2016 | |
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 4,600 | |||||||
Outstanding balance | $ 118,500 | |||||||
Subsequent Event [Member] | Hampton Inn Suites [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 16,700 | |||||||
Subsequent Event [Member] | Fort Lauderdale And Hampton Inn [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 101,800 | |||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 140,000 | |||||||
Current borrowing capacity percentage | 65% | |||||||
Cash collateral | $ 2,500 | |||||||
Face amount | $ 118,500 | |||||||
Ameribor Unsecured Overnight Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 5.17% | 4.64% | ||||||
Ameribor Unsecured Overnight Rate [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Sep. 15, 2023 | |||||||
Basis for effective rate, description | the interest rate was prospectively changed to AMERIBOR plus 3.15%, subject to a 4.00% floor. | |||||||
L I B O R [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Sep. 15, 2022 | |||||||
Basis for effective rate, description | bore interest at LIBOR plus 3.15%, subject to a 4.00% floor. |
Company_s Stockholder_s Equity
Company’s Stockholder’s Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | |
Subsequent Event [Line Items] | ||||
Common share distribution per share | $ 0.075 | |||
Annual distributions paid per share | $ 0.30 | |||
Annualized distribution rate | 3% | 3% | ||
Share Price | $ 10 | $ 10 | ||
Distribution paid in cash | $ 1,300 | |||
Share redemption program, annual limitation, percentage of weighted average shares outstanding | 0.50% | |||
Repurchase of shares | 76,461 | 90,275 | ||
Weighted average price per share | $ 9.96 | $ 8.47 | ||
Subsequent Event [Member] | Board of Directors Chairman [Member] | ||||
Subsequent Event [Line Items] | ||||
Common share distribution per share | $ 0.075 | |||
Annual distributions paid per share | $ 0.30 | |||
Annualized distribution rate | 3% | |||
Share Price | $ 10 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Advisor [Member] | ||||
Related Party Transaction [Line Items] | ||||
Asset management fees (general and administrative costs) | $ 657 | $ 680 | $ 1,316 | $ 1,418 |
Related Parties (Details Narrat
Related Parties (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | May 20, 2018 | |
Related Party Transactions [Abstract] | ||
Cash | $ 12,900 | |
Equity interests | 4,800 | |
Noncontrolling interests | 17,700 | $ 4,800 |
Aggregate consideration | $ 17,700 | |
Interest rate | 7% | |
Distributions declared and paid | $ 7,900 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | 6 Months Ended |
Jun. 30, 2023 | |
Loss Contingencies [Line Items] | |
Franchise Fee Percentage | 5% |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Management Agreement Term | 1 year |
Property Management Fee, Percent Fee | 3% |
Marketing Fund Charge Percent | 1.50% |
Franchise Agreement Term | 15 years |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Management Agreement Term | 10 years |
Property Management Fee, Percent Fee | 3.50% |
Marketing Fund Charge Percent | 3.50% |
Franchise Agreement Term | 20 years |