Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 26, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-36041 | |
Entity Registrant Name | INDEPENDENCE REALTY TRUST, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 26-4567130 | |
Entity Address, Address Line One | 1835 Market Street | |
Entity Address, Address Line Two | Suite 2601 | |
Entity Address, City or Town | Philadelphia | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19103 | |
City Area Code | 267 | |
Local Phone Number | 270-4800 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | IRT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 222,069,162 | |
Entity Central Index Key | 0001466085 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Investments in real estate: | ||
Investments in real estate, at cost | $ 6,428,482 | $ 6,462,355 |
Accumulated depreciation | (329,903) | (243,475) |
Investments in real estate, net | 6,098,579 | 6,218,880 |
Real estate held for sale | 81,818 | 61,560 |
Investment in real estate under development | 61,777 | 41,777 |
Cash and cash equivalents | 11,378 | 35,972 |
Restricted cash | 31,017 | 29,699 |
Investments in unconsolidated real estate entities | 54,178 | 24,999 |
Other assets | 26,707 | 38,052 |
Derivative assets | 21,162 | 2,488 |
Intangible assets, net of accumulated amortization of $18 and $4,779, respectively | 18 | 53,269 |
Total Assets | 6,386,634 | 6,506,696 |
LIABILITIES AND EQUITY: | ||
Indebtedness, net | 2,506,375 | 2,705,336 |
Indebtedness associated with real estate held for sale | 46,561 | 0 |
Accounts payable and accrued expenses | 98,173 | 106,332 |
Accrued interest payable | 6,891 | 7,175 |
Dividends payable | 31,907 | 16,792 |
Derivative liabilities | 0 | 11,896 |
Other liabilities | 15,077 | 17,089 |
Total Liabilities | 2,704,984 | 2,864,620 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value; 50,000,000 shares authorized, 0 and 0 shares issued and outstanding, respectively | 0 | 0 |
Common stock, $0.01 par value; 500,000,000 shares authorized, 222,060,280 and 220,753,735 shares issued and outstanding, including 246,003 and 269,622 unvested restricted common share awards, respectively | 2,221 | 2,208 |
Additional paid-in capital | 3,698,763 | 3,678,903 |
Accumulated other comprehensive income (loss) | 18,430 | (11,940) |
Retained earnings (accumulated deficit) | (178,902) | (188,410) |
Total stockholders’ equity | 3,540,512 | 3,480,761 |
Noncontrolling interests | 141,138 | 161,315 |
Total Equity | 3,681,650 | 3,642,076 |
Total Liabilities and Equity | $ 6,386,634 | $ 6,506,696 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Intangible assets, accumulated amortization | $ 18 | $ 4,779 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 222,060,280 | 220,753,735 |
Common stock, shares outstanding (in shares) | 222,060,280 | 220,753,735 |
Unvested restricted common share awards (in shares) | 246,003 | 269,622 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
REVENUE: | ||||
Rental and other property revenue | $ 154,643 | $ 57,286 | $ 304,621 | $ 112,097 |
Other revenue | 120 | 158 | 505 | 459 |
Total revenue | 154,763 | 57,444 | 305,126 | 112,556 |
EXPENSES: | ||||
Property operating expenses | 58,976 | 22,298 | 114,858 | 43,136 |
Property management expenses | 6,139 | 2,176 | 11,696 | 4,119 |
General and administrative expenses | 6,968 | 4,241 | 14,896 | 10,183 |
Depreciation and amortization expense | 72,793 | 16,763 | 150,966 | 33,315 |
Casualty gains (losses), net | 5,592 | 0 | 6,985 | (359) |
Total expenses | 139,284 | 45,478 | 285,431 | 91,112 |
Interest Expense | (20,994) | (8,559) | (41,525) | (16,944) |
Gain on sale of real estate assets, net | 0 | 0 | 94,712 | 0 |
Merger and integration costs | (1,307) | 0 | (3,202) | 0 |
Other income (expense) | 294 | 0 | 736 | 0 |
Loss from investments in unconsolidated real estate entities | (871) | 0 | (934) | 0 |
Net (loss) income: | (7,399) | 3,407 | 69,482 | 4,500 |
Loss (income) allocated to noncontrolling interest | 194 | (21) | (2,087) | (28) |
Net (loss) income allocable to common shares | $ (7,205) | $ 3,386 | $ 67,395 | $ 4,472 |
(Loss) earnings per share: | ||||
Basic (in dollars per share) | $ (0.03) | $ 0.03 | $ 0.30 | $ 0.04 |
Diluted (in dollars per share) | $ (0.03) | $ 0.03 | $ 0.30 | $ 0.04 |
Weighted-average shares: | ||||
Basic (in shares) | 221,164,284 | 102,023,204 | 220,982,714 | 101,847,876 |
Diluted (in shares) | 221,164,284 | 102,923,924 | 222,033,857 | 102,822,099 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (7,399) | $ 3,407 | $ 69,482 | $ 4,500 |
Other comprehensive income (loss): | ||||
Change in fair value of interest rate hedges | 10,169 | 364 | 34,879 | 15,537 |
Realized (losses) gains on interest rate hedges reclassified to earnings | (1,502) | (1,861) | (3,622) | (3,621) |
Total other comprehensive income (loss) | 8,667 | (1,497) | 31,257 | 11,916 |
Comprehensive income before allocation to noncontrolling interests | 1,268 | 1,910 | 100,739 | 16,416 |
Allocation to noncontrolling interests | (1) | (38) | (2,974) | (133) |
Comprehensive income | $ 1,267 | $ 1,872 | $ 97,765 | $ 16,283 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Shares | Additional Paid In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Total Stockholders’ Equity | Noncontrolling Interests |
Beginning Balance (in Shares) at Dec. 31, 2020 | 101,803,762 | ||||||
Beginning Balance at Dec. 31, 2020 | $ 712,771 | $ 1,018 | $ 919,615 | $ (33,822) | $ (178,751) | $ 708,060 | $ 4,711 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | 1,093 | 1,086 | 1,086 | 7 | |||
Common dividends declared | (12,486) | (12,486) | (12,486) | ||||
Other comprehensive income | 13,413 | 13,325 | 13,325 | 88 | |||
Stock compensation (in shares) | 286,647 | ||||||
Stock compensation | 3,348 | $ 2 | 3,346 | 3,348 | |||
Repurchase of shares related to equity award tax withholding (in shares) | (56,677) | ||||||
Repurchase of shares related to equity award tax withholding | (2,862) | $ (2) | (2,860) | (2,862) | |||
Issuance of common shares, net | (59) | (59) | (59) | ||||
Distribution to noncontrolling interest declared | (80) | (80) | |||||
Ending Balance (in shares) at Mar. 31, 2021 | 102,033,732 | ||||||
Ending Balance at Mar. 31, 2021 | 715,138 | $ 1,018 | 920,042 | (20,497) | (190,151) | 710,412 | 4,726 |
Beginning Balance (in Shares) at Dec. 31, 2020 | 101,803,762 | ||||||
Beginning Balance at Dec. 31, 2020 | 712,771 | $ 1,018 | 919,615 | (33,822) | (178,751) | 708,060 | 4,711 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | 4,500 | ||||||
Other comprehensive income | 11,916 | ||||||
Ending Balance (in shares) at Jun. 30, 2021 | 105,109,649 | ||||||
Ending Balance at Jun. 30, 2021 | 747,283 | $ 1,051 | 963,754 | (22,011) | (199,350) | 743,444 | 3,839 |
Beginning Balance (in Shares) at Mar. 31, 2021 | 102,033,732 | ||||||
Beginning Balance at Mar. 31, 2021 | 715,138 | $ 1,018 | 920,042 | (20,497) | (190,151) | 710,412 | 4,726 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | 3,407 | 3,386 | 3,386 | 21 | |||
Common dividends declared | (12,585) | (12,585) | (12,585) | ||||
Other comprehensive income | (1,497) | (1,514) | (1,514) | 17 | |||
Stock compensation (in shares) | 23,436 | ||||||
Stock compensation | 1,357 | $ 1 | 1,356 | 1,357 | |||
Repurchase of shares related to equity award tax withholding (in shares) | (1,674) | ||||||
Repurchase of shares related to equity award tax withholding | (80) | $ 1 | (81) | (80) | |||
Conversion of noncontrolling interest to common shares (in shares) | 122,155 | ||||||
Conversion of noncontrolling interest to common shares | 0 | $ 1 | 857 | 858 | (858) | ||
Issuance of common shares (in shares) | 2,932,000 | ||||||
Issuance of common shares, net | 41,610 | $ 30 | 41,580 | 41,610 | |||
Distribution to noncontrolling interest declared | (67) | (67) | |||||
Ending Balance (in shares) at Jun. 30, 2021 | 105,109,649 | ||||||
Ending Balance at Jun. 30, 2021 | $ 747,283 | $ 1,051 | 963,754 | (22,011) | (199,350) | 743,444 | 3,839 |
Beginning Balance (in Shares) at Dec. 31, 2021 | 220,753,735 | 220,753,735 | |||||
Beginning Balance at Dec. 31, 2021 | $ 3,642,076 | $ 2,208 | 3,678,903 | (11,940) | (188,410) | 3,480,761 | 161,315 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | 76,880 | 74,600 | 74,600 | 2,280 | |||
Common dividends declared | (26,833) | (26,833) | (26,833) | ||||
Other comprehensive income | 22,590 | 21,898 | 21,898 | 692 | |||
Stock compensation (in shares) | 395,029 | ||||||
Stock compensation | 3,538 | $ 3 | 3,535 | 3,538 | |||
Repurchase of shares related to equity award tax withholding (in shares) | (48,452) | ||||||
Repurchase of shares related to equity award tax withholding | (3,183) | (3,183) | (3,183) | ||||
Conversion of noncontrolling interest to common shares (in shares) | 10,848 | ||||||
Conversion of noncontrolling interest to common shares | 0 | 68 | 68 | (68) | |||
Issuance of common shares (in shares) | 51,498 | ||||||
Issuance of common shares, net | (844) | $ 1 | (845) | (844) | |||
Distribution to noncontrolling interest declared | (837) | (837) | |||||
Ending Balance (in shares) at Mar. 31, 2022 | 221,162,658 | ||||||
Ending Balance at Mar. 31, 2022 | $ 3,713,387 | $ 2,212 | 3,678,478 | 9,958 | (140,643) | 3,550,005 | 163,382 |
Beginning Balance (in Shares) at Dec. 31, 2021 | 220,753,735 | 220,753,735 | |||||
Beginning Balance at Dec. 31, 2021 | $ 3,642,076 | $ 2,208 | 3,678,903 | (11,940) | (188,410) | 3,480,761 | 161,315 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | 69,482 | ||||||
Other comprehensive income | $ 31,257 | ||||||
Conversion of noncontrolling interest to common shares (in shares) | 890,669 | ||||||
Ending Balance (in shares) at Jun. 30, 2022 | 222,060,280 | 222,060,280 | |||||
Ending Balance at Jun. 30, 2022 | $ 3,681,650 | $ 2,221 | 3,698,763 | 18,430 | (178,902) | 3,540,512 | 141,138 |
Beginning Balance (in Shares) at Mar. 31, 2022 | 221,162,658 | ||||||
Beginning Balance at Mar. 31, 2022 | 3,713,387 | $ 2,212 | 3,678,478 | 9,958 | (140,643) | 3,550,005 | 163,382 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (7,399) | (7,205) | (7,205) | (194) | |||
Common dividends declared | (31,054) | (31,054) | (31,054) | ||||
Other comprehensive income | 8,667 | 8,472 | 8,472 | 195 | |||
Stock compensation (in shares) | 19,297 | ||||||
Stock compensation | 1,715 | 1,715 | 1,715 | ||||
Repurchase of shares related to equity award tax withholding (in shares) | (1,496) | ||||||
Repurchase of shares related to equity award tax withholding | (2,698) | (2,698) | (2,698) | ||||
Conversion of noncontrolling interest to common shares (in shares) | 879,821 | ||||||
Conversion of noncontrolling interest to common shares | 0 | $ 9 | 21,384 | 21,393 | (21,393) | ||
Issuance of common shares, net | (116) | (116) | (116) | ||||
Distribution to noncontrolling interest declared | $ (852) | (852) | |||||
Ending Balance (in shares) at Jun. 30, 2022 | 222,060,280 | 222,060,280 | |||||
Ending Balance at Jun. 30, 2022 | $ 3,681,650 | $ 2,221 | $ 3,698,763 | $ 18,430 | $ (178,902) | $ 3,540,512 | $ 141,138 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common dividends declared per share (in dollars per share) | $ 0.14 | $ 0.12 | $ 0.12 | $ 0.12 |
Distribution to noncontrolling interest declared per share (in dollars per share) | $ 0.14 | $ 0.12 | $ 0.12 | $ 0.12 |
Conversion of noncontrolling interest to common shares | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||||
Net (loss) income | $ (7,399) | $ 3,407 | $ 69,482 | $ 4,500 |
Adjustments to reconcile net income to cash flow from operating activities: | ||||
Depreciation and amortization | 72,793 | 16,763 | 150,966 | 33,315 |
Accretion of loan discounts and premiums, net | (5,495) | 0 | ||
Amortization of deferred financing costs, net | 1,824 | 738 | ||
Stock compensation expense | 5,178 | 4,646 | ||
Gain on sale of real estate assets, net | 0 | 0 | (94,712) | 0 |
Amortization related to derivative instruments | 634 | 608 | ||
Casualty (gains) losses, net | (5,592) | 0 | (6,985) | 359 |
Loss from equity method investments | 871 | 0 | 934 | 0 |
Other (income) expense | (736) | 0 | ||
Changes in assets and liabilities: | ||||
Other assets | 6,829 | (4,886) | ||
Accounts payable and accrued expenses | (13,775) | 3,985 | ||
Accrued interest payable | (284) | (67) | ||
Other liabilities | (2,273) | 54 | ||
Cash flow provided by operating activities | 111,587 | 43,252 | ||
Cash flows from investing activities: | ||||
Acquisition of real estate properties | (25,957) | (139,231) | ||
Investments in unconsolidated real estate entities | (33,519) | (10,205) | ||
Return of investment in unconsolidated real estate entities | 3,406 | 0 | ||
Disposition of real estate properties, net | 155,639 | 0 | ||
Capital expenditures | (29,139) | (17,244) | ||
Additions to real estate under development | (20,723) | 0 | ||
Proceeds from insurance claims | 15,462 | 0 | ||
Cash flow provided by (used in) investing activities | 65,169 | (166,680) | ||
Cash flows from financing activities: | ||||
(Costs) proceeds from issuance of common stock | (960) | |||
(Costs) proceeds from issuance of common stock | 41,551 | |||
Proceeds from unsecured credit facility and term loans | 81,000 | 369,500 | ||
Unsecured credit facility repayments | (226,000) | (234,800) | ||
Mortgage principal repayments | (3,680) | (23,456) | ||
Payments for deferred financing costs | (49) | (1,205) | ||
Distributions on common stock | (43,425) | (24,666) | ||
Distributions to noncontrolling interests | (1,037) | (162) | ||
Repurchase of shares related to equity award tax withholding | (5,881) | (2,942) | ||
Cash flow (used in) provided by financing activities | (200,032) | 123,820 | ||
Net change in cash and cash equivalents, and restricted cash | (23,276) | 392 | ||
Cash and cash equivalents, and restricted cash, beginning of period | 65,671 | 13,615 | ||
Cash and cash equivalents, and restricted cash, end of the period | 42,395 | 14,007 | 42,395 | 14,007 |
Reconciliation of cash, cash equivalents, and restricted cash to the Consolidated Balance Sheet | ||||
Cash and cash equivalents | 11,378 | 7,566 | 11,378 | 7,566 |
Restricted cash | 31,017 | 6,441 | 31,017 | 6,441 |
Total cash, cash equivalents, and restricted cash, end of period | $ 42,395 | $ 14,007 | $ 42,395 | $ 14,007 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | NOTE 1: Organization Independence Realty Trust, Inc. (“IRT”), is a self-administered and self-managed Maryland real estate investment trust (“REIT”) which was formed on March 26, 2009. Our primary purposes are to acquire, own, operate, improve and manage multifamily apartment communities in non-gateway markets. As of June 30, 2022, we owned and operated 120 multifamily apartment properties that contain 35,594 units across non-gateway U.S. markets including Atlanta, Columbus, Dallas, Denver, Houston, Indianapolis, Louisville, Memphis, Oklahoma City, and Raleigh. In addition, as of June 30, 2022, we owned interests in four unconsolidated joint ventures that are developing multifamily apartment communities. We own all of our assets and conduct substantially all of our operations through Independence Realty Operating Partnership, LP (“IROP”), of which we are the sole general partner. As used herein, the terms “we,” “our” and “us” refer to Independence Realty Trust, Inc. and, as required by context, IROP and their subsidiaries. On July 26, 2021, IRT, together with IROP, and IRSTAR Sub, LLC, a wholly-owned subsidiary of IRT (“IRT Merger Sub”), entered into an agreement and plan of merger (the “Merger Agreement”) with Steadfast Apartment REIT, Inc. (“STAR”) and its operating partnership, Steadfast Apartment REIT Operating Partnership, L.P. (“STAR OP”). Consummation of the mergers provided for in the Merger Agreement (which we refer to collectively as the “STAR Merger”) was subject to customary closing conditions, including, among others, receipt of IRT stockholder approval and STAR stockholder approval, which occurred on December 13, 2021. The STAR Merger closed on December 16, 2021. For further discussion, see Note 3: IRT and STAR Merger included in our 2021 Annual Report on Form 10-K. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2: Summary of Significant Accounting Policies a. Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared by management in accordance with generally accepted accounting principles in the United States (“GAAP”). Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, although we believe that the included disclosures are adequate to make the information presented not misleading. The unaudited interim consolidated financial statements should be read in conjunction with our audited financial statements as of and for the year ended December 31, 2021 included in our 2021 Annual Report on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our consolidated financial position and consolidated results of operations and cash flows are included. The results of operations for the interim periods presented are not necessarily indicative of the results for the full year. The Company evaluated subsequent events through the date its financial statements were issued. No significant recognized or non-recognized subsequent events were noted other than those described in the footnotes. b. Principles of Consolidation The consolidated financial statements reflect our accounts and the accounts of IROP and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Pursuant to the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification Topic 810, “Consolidation”, IROP is considered a variable interest entity of which we are the primary beneficiary. As our significant asset is our investment in IROP, substantially all of our assets and liabilities represent the assets and liabilities of IROP. c. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. d. Cash and Cash Equivalents Cash and cash equivalents include cash held in banks and highly liquid investments with original maturities of three months or less when purchased. Cash, including amounts restricted, may at times exceed the Federal Deposit Insurance Corporation deposit insurance limit of $250 per institution. We mitigate credit risk by placing cash and cash equivalents with major financial institutions. To date, we have not experienced any losses on cash and cash equivalents. e. Restricted Cash Restricted cash includes escrows of our funds held by lenders to fund certain expenditures, such as real estate taxes and insurance, or to be released at our discretion upon the occurrence of certain pre-specified events. As of June 30, 2022 and December 31, 2021, we had $31,017 and $29,699, respectively, of restricted cash. f. Investments in Real Estate Investments in real estate are recorded at cost less accumulated depreciation. Costs, including internal costs, that both add value and appreciably extend the useful life of an asset are capitalized. Expenditures for repairs and maintenance are expensed as incurred. Investments in real estate are classified as held for sale in the period in which certain criteria are met including when the sale of the asset is probable, and actions required to complete the plan of sale indicate that it is unlikely that significant changes to the plan of sale will be made or the plan of sale will be withdrawn. Allocation of Purchase Price of Acquired Assets In accordance with FASB ASC Topic 805, the properties we acquire are generally accounted for as asset acquisitions. Under asset acquisition accounting, the costs to acquire real estate, including transaction costs related to the acquisition, are accumulated and then allocated to the individual assets and liabilities acquired based upon their relative fair value. Transaction costs and fees incurred related to the financing of an acquisition are capitalized and amortized over the life of the related financing. We estimate the fair value of acquired tangible assets (consisting of land, building and improvements), identified intangible assets (consisting of in-place leases), and assumed debt at the date of acquisition, based on the evaluation of information and estimates available at that date. The aggregate value of in-place leases is determined by evaluating various factors, including the terms of the leases that are in place and assumed lease-up periods. The value assigned to in-place lease assets is amortized over the assumed lease up period, typically six months. During the three and six months ended June 30, 2022, we acquired in-place leases with a value of $37 related to our acquisitions that are discussed further in Note 3: Investments in Real Estate. For the three and six months ended June 30, 2022, we recorded $24,206 and $53,288, respectively, of amortization for intangible assets. For the three and six months ended June 30, 2021, we recorded $439 and $835, respectively, of amortization for intangible assets. For each of the three and six months ended June 30, 2022, we wrote-off fully amortized intangible assets of $58,048. For each of the three and six months ended June 30, 2021, we wrote-off fully amortized intangible assets of $792. As of June 30, 2022, we expect to record additional amortization expense on current in-place intangible assets of $18 for the remainder of 2022. Business Combinations For properties we acquire or transactions we entered into that are accounted for as business combinations, we apply the acquisition method of accounting under ASC 805, which requires the identification of the acquiror, the determination date, and the recognition and measurement, at fair value, of the assets acquired and liabilities assumed. To the extent that the fair value of net assets acquired differs from the fair value of consideration paid, ASC 805 requires the recognition of goodwill or a gain from a bargain purchase price, if any. For the three and six months ended June 30, 2022, we incurred merger and integration costs of $1,307 and $3,202. These amounts were expensed as incurred, and are included in the consolidated statements of operations in the item titled "Merger and integration costs", and primarily consist of technology migration and implementation, consulting and professional fees and employee severance costs. Impairment of Long-Lived Assets Management evaluates the recoverability of our investment in real estate assets, including related identifiable intangible assets, in accordance with FASB ASC Topic 360, “Property, Plant and Equipment”. This statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that recoverability of the assets is not assured. Management reviews our long-lived assets on an ongoing basis and evaluates the recoverability of the carrying value when there is an indicator of impairment. An impairment charge is recorded when it is determined that the carrying value of the asset exceeds the fair value. The estimated cash flows used for the impairment analysis and the determination of estimated fair value are based on our plans for the respective assets and our views of market and economic conditions. The estimates consider matters such as current and historical rental rates, occupancies for the respective and/or comparable properties, and recent sales data for comparable properties. Changes in estimated future cash flows due to changes in our plans or views of market and economic conditions could result in recognition of impairment losses, which, under the applicable accounting guidance, could be substantial. Depreciation Expense Depreciation expense for real estate assets is computed using a straight-line method based on a life of 40 years for buildings and improvements and five Casualty Related Costs Occasionally, we incur losses at our communities from wind storms, floods, fires and similar hazards. Sometimes, a portion of these losses are not fully covered by our insurance policies due to deductibles. In these cases, we estimate the carrying value of the damaged property and record a casualty loss for the difference between the estimated carrying value and the insurance proceeds. Any amount of insurance recovery in excess of the amount of the losses incurred is considered a gain contingency and is recorded in casualty (gains) losses, net when the proceeds are received. During the three and six months ended June 30, 2022, we recorded $5,592 and $6,985 of net casualty gains, respectively. During the three and six months ended June 30, 2021, we incurred $0 and $359 of casualty losses, respectively. g. Investments in Real Estate Under Development We capitalize direct and indirect project costs incurred during the development period such as construction, insurance, architectural, legal, interest costs, and real estate taxes. At such time as the development is considered substantially complete, the capitalization of certain indirect costs such as real estate taxes, interest costs, and all project-related costs in real estate under development are reclassified to investments in real estate. As of June 30, 2022 and December 31, 2021, the carrying value of our investments in real estate under development totaled $61,777 and $41,777, respectively, and was recorded as a separate line item on the face of our consolidated balance sheet. h. Investments in Unconsolidated Real Estate Entities We invest in joint ventures in which we exercise significant influence but do not control the major decisions of the joint venture. Therefore, we account for these investments using the equity method of accounting. Under the equity method of accounting, the investments are carried at cost plus our share of net earnings or losses. As of June 30, 2022 and December 31, 2021, the carrying value of our investments in joint ventures totaled $54,178 and $24,999, respectively, and were recorded as a separate line item on the face of our consolidated balance sheet. We recognized losses of $871 and $934 from equity method investments during the three and six months ended June 30, 2022, and these losses were recorded in loss from investments in unconsolidated real estate entities on the face of our consolidated statements of operations. i. Revenue and Expenses Rental and Other Property Revenue We apply FASB ASC Topic 842, “Leases” with respect to our accounting for rental income. We primarily lease apartment units under operating leases generally with terms of one year or less. Rental payments are generally due monthly and rental revenues are recognized on an accrual basis when earned. We have elected to account for lease (i.e. fixed payments including base rent) and non-lease components (i.e. tenant reimbursements and certain other service fees) as a single combined operating lease component since (1) the timing and pattern of transfer of the lease and non-lease components is the same, (2) the lease component is the predominant element, and (3) the combined single lease component would be classified as an operating lease. We make ongoing estimates of the collectability of our base rents, tenant reimbursements, and other service fees included within rental and other property revenue. If collectability is not probable, we adjust rental and other property income for the amount of uncollectible revenue. Advertising Expenses For the three and six months ended June 30, 2022, we incurred $1,315 and $2,587 of advertising expenses, respectively. For the three and six months ended June 30, 2021, we incurred $636 and $1,180 of advertising expenses, respectively. j. Derivative Instruments We may use derivative financial instruments to hedge all or a portion of the interest rate risk associated with our borrowings. The principal objective of such arrangements is to minimize the risks and/or costs associated with our operating and financial structure, as well as to hedge specific anticipated transactions. While these instruments may impact our periodic cash flows, they benefit us by minimizing the risks and/or costs previously described. The counterparties to these contractual arrangements are major financial institutions with which we and our affiliates may also have other financial relationships. In the event of nonperformance by the counterparties, we are potentially exposed to credit loss. However, because of the high credit ratings of the counterparties, we do not anticipate that any of the counterparties will fail to meet their obligations. In accordance with FASB ASC Topic 815, “Derivatives and Hedging”, we measure each derivative instrument at fair value and record such amounts in our consolidated balance sheets as either an asset or liability. For derivatives designated as cash flow hedges, the changes in the fair value of the effective portions of the derivative are reported in other comprehensive income and changes in the fair value of the ineffective portions of cash flow hedges, if any, are recognized in earnings. For derivatives not designated as hedges (or designated as fair value hedges), the changes in fair value of the derivative instrument are recognized in earnings. Any derivatives that we designate in hedge relationships are done so at inception. At inception, we determine whether or not the derivative is highly effective in offsetting changes in the designated interest rate risk associated with the identified indebtedness using regression analysis. At each reporting period, we update our regression analysis and use the hypothetical derivative method to measure any ineffectiveness. k. Fair Value of Financial Instruments In accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures”, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity for disclosure purposes. Assets and liabilities recorded at fair value in our consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their value. Hierarchical levels, as defined in FASB ASC Topic 820, “Fair Value Measurements and Disclosures” and directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities, are as follows: • Level 1 : Valuations are based on unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets carried at Level 1 fair value generally are equity securities listed in active markets. As such, valuations of these investments do not entail a significant degree of judgment. • Level 2 : Valuations are based on quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or for which all significant inputs are observable, either directly or indirectly. • Level 3 : Inputs are unobservable for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. FASB ASC Topic 825, “Financial Instruments” requires disclosure of the fair value of financial instruments for which it is practicable to estimate that value. Given that cash and cash equivalents and restricted cash are short term in nature with limited fair value volatility, the carrying amount is deemed to be a reasonable approximation of fair value and the fair value input is classified as a Level 1 fair value measurement. The fair value input for the derivatives is classified as a Level 2 fair value measurement within the fair value hierarchy. The fair value inputs for our unsecured credit facility and term loans are classified as Level 2 fair value measurements within the fair value hierarchy. The fair value of mortgage indebtedness is based on a discounted cash flows valuation technique. As this technique utilizes current credit spreads, which are generally unobservable, this is classified as a Level 3 fair value measurement within the fair value hierarchy. We determine appropriate credit spreads based on the type of debt and its maturity. There were no transfers between levels in the fair value hierarchy for the six months ended June 30, 2022. The following table summarizes the carrying amount and the fair value of our financial instruments as of the periods indicated: As of June 30, 2022 As of December 31, 2021 Financial Instrument Carrying Estimated Carrying Estimated Assets Cash and cash equivalents $ 11,378 $ 11,378 $ 35,972 $ 35,972 Restricted cash 31,017 31,017 29,699 29,699 Derivative assets 21,162 21,162 2,488 2,488 Liabilities Debt: Unsecured Revolver 129,406 129,406 274,109 274,109 Unsecured Term loans 498,255 498,255 497,951 497,951 Secured credit facilities 662,668 617,318 664,618 668,352 Mortgages (1) 1,262,607 1,184,797 1,268,658 1,282,495 Derivative liabilities — — 11,896 11,896 (1) Includes indebtedness associated with real estate held for sale. l. Deferred Financing Costs Costs incurred in connection with debt financing are deferred and classified within indebtedness and charged to interest expense over the terms of the related debt agreements, under the effective interest method. m. Office Leases In accordance with FASB ASC Topic 842, “Leases”, lessees are required to recognize a right-of-use asset and a lease liability on the balance sheet at the lease commencement date for all leases, except those leases with terms of less than a year. We lease corporate office space under leases with terms of up to 10 years and that may include extension options, but that do not include any residual value guarantees or restrictive covenants. As of June 30, 2022, we have $3,232 of operating lease right-of-use assets and $3,557 of operating lease liabilities related to our corporate office leases. The operating lease right-of-use assets are presented within other assets and the operating lease liabilities are presented within other liabilities in our consolidated balance sheet. We recorded $383 and $844 of total operating lease expense during the three and six months ended June 30, 2022, which is recorded within property management expense and general and administrative expenses in our condensed consolidated statements of operations. n. Income Taxes We have elected to be taxed as a REIT. Accordingly, we recorded no income tax expense for the three and six months ended June 30, 2022 and 2021. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our ordinary taxable income to stockholders. As a REIT, we generally are not subject to federal income tax on taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year during which qualification is lost unless the Internal Revenue Service grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders; however, we believe that we are organized and operate in such a manner as to qualify and maintain treatment as a REIT and intend to operate in such a manner so that we will remain qualified as a REIT for federal income tax purposes. o. R |
Investments in Real Estate
Investments in Real Estate | 6 Months Ended |
Jun. 30, 2022 | |
Real Estate [Abstract] | |
Investments in Real Estate | NOTE 3: Investments in Real Estate As of June 30, 2022, our investments in real estate consisted of 120 apartment properties that contain 35,594 units. The following table summarizes our investments consolidated in real estate: As of June 30, 2022 As of December 31, 2021 Depreciable Lives Land $ 561,107 $ 567,507 — Building 5,571,949 5,622,492 40 Furniture, fixtures and equipment 295,426 272,356 5-10 Total investments in real estate $ 6,428,482 $ 6,462,355 Accumulated depreciation (329,903) (243,475) Investments in real estate, net $ 6,098,579 $ 6,218,880 As of June 30, 2022, we owned two properties that were classified as held for sale. We expect the Meadows Apartments sale to close in the third quarter of 2022 and we continue to market Sycamore Terrace for sale. In connection with the sale of these properties we expect to extinguish $46,200 of mortgage debt and incur approximately $861 of loss on extinguishment of debt. The table below summarizes our held for sale properties. Property Name Net carrying value Units (unaudited) Meadows Apartments - Louisville, KY $ 36,285 400 Sycamore Terrace - Terra Haute, IN 45,533 250 Totals $ 81,818 650 Acquisitions On April 6, 2022, we acquired Views of Music City (phase I), a 96-unit property (unaudited) located in Nashville, TN for $25,440. We purchased this property from one of our unconsolidated joint ventures. On account of our equity interest in this joint venture, we received $4,428 of the sales proceeds, comprised of $3,406 as a return of capital and $1,022 as a preferred return on capital. In accordance with ASC 970-323-30-7, we recorded the preferred return on capital as a reduction to the carrying value of the purchased real estate, deferring the gain which will be recognized as income on a pro rata basis as the real estate is depreciated or when it is sold to a third party. The following table summarizes the relative fair value of the assets and liabilities associated with the acquisition of the Views of Music City (phase I), acquired during the six month period ended June 30, 2022, on the date of acquisition accounted for under FASB ASC Topic 805-50-15-3. Fair Value of Assets Acquired During the Six Months Ended June 30, 2022 Assets acquired: Investments in real estate $ 24,481 Intangible assets 37 Total assets acquired 24,518 Liabilities assumed: Accounts payable and accrued expenses 7 Other liabilities 53 Total liabilities assumed 60 Estimated fair value of net assets acquired $ 24,458 Dispositions The following table summarizes our dispositions for the six months ended June 30, 2022: Property Name Date of Sale Sale Price Gain on sale Riverchase 01/18/2022 $ 31,000 $ 12,901 Heritage Park 02/02/2022 48,500 31,366 Raindance 02/02/2022 47,500 33,748 Haverford 02/02/2022 31,050 16,697 Total $ 158,050 $ 94,712 |
Investments in Unconsolidated R
Investments in Unconsolidated Real Estate | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Real Estate | NOTE 4: Investments in Unconsolidated Real Estate We have entered into joint ventures with unrelated third parties to own, operate, acquire, develop and manage real estate assets that are accounted for under the equity method of accounting, and are included in investments in unconsolidated real estate entities on the consolidated balance sheets. Our joint ventures are funded with a combination of debt and equity. We will consolidate entities that we control as well as any variable interest entity where we are the primary beneficiary. Under the VIE model, we will consolidate an entity when we have the control to direct the activities of the VIE and the obligations to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, we consolidate an entity when we control the entity through ownership of a majority voting interest. We separately analyzed the initial accounting for each investment in unconsolidated entity and concluded that each are a voting interest entity. Our equity interest varies for each joint venture between 50% to 90% but, in each case, we share control of the major decisions that most significantly impact the joint ventures with our partners. Since we do not control the joint venture through our ownership interest, they are accounted for under the equity method of accounting. As of June 30, 2022, our investments in unconsolidated real estate entities had aggregate land, building, and construction in progress costs capitalized of $136,300 and aggregate construction debt of $60,240. We do not guarantee any debt, capital payout or other obligations associated with our joint ventures. We recognize earnings or losses from our investments in unconsolidated real estate entities consisting of our proportionate share of the net earnings or losses of the joint ventures. The following table summarizes our investments in unconsolidated real estate entities as of June 30, 2022 and December 31, 2021: Carrying Value As Of Investments in Unconsolidated Real Estate Location Units (1) (Unaudited) IRT Ownership Interest June 30, 2022 December 31, 2021 Metropolis at Innsbrook Richmond, VA 402 84.8 % $ 16,968 $ 14,632 Views of Music City / The Jackson Nashville, TN 408 50.0 % 6,887 10,368 Virtuoso Huntsville, AL 400 90.0 % 15,640 — Lakeline Station Austin, TX 378 90.0 % 14,683 — Total 1,588 $ 54,178 $ 24,999 (1) Represents the total number of units after development is complete and each property is placed in service. As of June 30, 2022 only the Virtuoso investment’s development is complete and has ongoing operations. |
Indebtedness
Indebtedness | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Indebtedness | NOTE 5: Indebtedness The following tables contain summary information concerning our indebtedness as of June 30, 2022: Debt: Outstanding Principal Unamortized Debt Issuance Costs Unamortized Loan (Discount)/Premiums Carrying Type Weighted Weighted Unsecured revolver (1) $ 132,003 $ (2,597) $ — $ 129,406 Floating 2.8% 3.6 Unsecured term loans 500,000 (1,745) — 498,255 Floating 2.7% 2.7 Secured credit facilities 635,128 (2,478) 30,018 662,668 Floating/Fixed 4.1% 6.4 Mortgages (2) 1,234,932 (8,398) 36,073 1,262,607 Fixed 3.9% 5.7 Total Debt $ 2,502,063 $ (15,218) $ 66,091 $ 2,552,936 3.6% 5.2 (1) The unsecured revolver's maximum borrowing capacity is $500,000, of which $132,003 was outstanding as of June 30, 2022. (2) Includes indebtedness associated with real estate held for sale. The following table contains summary information concerning our indebtedness as of June 30, 2022: Scheduled maturities on our indebtedness outstanding as of June 30, 2022 Debt: 2022 2023 2024 2025 2026 Thereafter Unsecured revolver $ — $ — $ — $ — $ 132,003 $ — Unsecured term loans — — 300,000 — 200,000 — Secured credit facilities — — — 3,525 10,493 621,110 Mortgages (1) 6,754 10,998 107,621 168,554 131,166 809,839 Total $ 6,754 $ 10,998 $ 407,621 $ 172,079 $ 473,662 $ 1,430,949 (1) Includes indebtedness associated with real estate held for sale. The following table contains summary information concerning our indebtedness as of December 31, 2021: Debt: Outstanding Principal Unamortized Debt Issuance Costs Unamortized Loan (Discount)/Premiums Carrying Amount Type Weighted Weighted Unsecured revolver (1) $ 277,003 $ (2,894) $ — $ 274,109 Floating 1.5% 4.1 Unsecured term loans 500,000 (2,049) — 497,951 Floating 1.4% 3.2 Secured credit facilities 635,128 (2,840) 32,330 664,618 Floating/Fixed 4.0% 6.9 Mortgages 1,238,612 (9,210) 39,256 1,268,658 Fixed 3.9% 6.2 Total Debt $ 2,650,743 $ (16,993) $ 71,586 $ 2,705,336 3.2% 5.6 (1) The unsecured revolver's maximum borrowing capacity was $500,000, of which $277,003 was outstanding as of December 31, 2021. On July 25, 2022, we entered into the Fourth Amended, Restated and Consolidated Credit Agreement (the “Restated Credit Agreement”) which amends and restates in its entirety the Third Amended and Restated Credit Agreement dated as of December 14, 2021 (the "Prior Credit Agreement"). The Restated Credit Agreement provides for an aggregate amount available for borrowing of $1,100,000, which represents an increase of $100,000 over the Prior Credit Agreement. The Prior Credit Agreement provided for a $500,000 unsecured revolving credit facility (the “Revolving Credit Facility”) with a January 31, 2026 scheduled maturity date and three unsecured term loans, specifically: (i) a $200,000 term loan with a May 18, 2026 maturity date (the “2026 Term Loan”); (ii) a $200,000 term loan with a January 17, 2024 maturity date (the “January 2024 Term Loan”); and (iii) a $100,000 term loan with a November 20, 2024 maturity date (the “November 2024 Term Loan” and, together with the January 2024 Term Loan, the “2024 Term Loans”). The Restated Credit Agreement provides for a new $400,000 term loan with a January 28, 2028 maturity date (the “2028 Term Loan”). Proceeds of the new 2028 Term Loan were used to (i) repay and retire the 2024 Term Loans, and (ii) reduce $100,000 of outstanding borrowings under the Revolving Credit Facility. In addition, the Restated Credit Agreement changes the LIBOR interest rate option to SOFR. The Restated Credit Agreement otherwise continues, without material change, the 2026 Term Loan and the Revolving Credit Facility. IROP has the right to request an increase in the aggregate amount of the Restated Credit Agreement from $1,100,000 to up to $1,500,000, subject to certain terms and conditions, including receipt of commitments from one or more lenders, whether or not currently parties to the Restated Credit Agreement, to provide such increased amounts, which increase may be allocated, at IROP’s option, to the Revolving Credit Facility and/or to one or more of the Term Loans, in accordance with the Restated Credit Agreement. Borrowings under the 2028 Term Loan bear interest at a rate equal to either (i) the SOFR rate plus a margin of 115 to 180 basis points, or (ii) a base rate plus a margin of 15 to 80 basis points. These margins represent a 5-basis point decrease from those applicable to the term loans that were repaid and retired. The margin for borrowings under the Revolving Credit Facility and the 2026 Term Loan remained unchanged, with (1) Revolving Credit Facility borrowings bearing interest at a rate equal to either (i) the SOFR rate plus a margin of 125 to 200 basis points, or (ii) a base rate plus a margin of 25 to 100 basis points; and (2) 2026 Term Loan borrowings bearing interest at a rate equal to either (i) the SOFR rate plus a margin of 120 to 190 basis points, or (ii) a base rate plus a margin of 20 to 90 basis points. The applicable margin will be determined based upon IROP’s consolidated leverage ratio. At the time of closing, based on IROP’s consolidated leverage ratio, the applicable margin was 125 basis points for the Revolving Credit Facility, 120 basis points for the 2026 Term Loan and 115 basis points for the 2028 Term Loan. As of June 30, 2022, we were in compliance with all financial covenants contained in the documents governing our indebtedness. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 6: Derivative Financial Instruments The following table summarizes the aggregate notional amounts and estimated net fair values of our derivative instruments as of June 30, 2022 and December 31, 2021: As of June 30, 2022 As of December 31, 2021 Notional Fair Value of Fair Value of Notional Fair Value of Fair Value of Cash flow hedges: Interest rate swap $ 300,000 $ 16,864 — $ 150,000 $ 2,488 $ 6,463 Interest rate collars 250,000 4,298 — 250,000 — 5,433 Total $ 550,000 $ 21,162 — $ 400,000 $ 2,488 $ 11,896 Effective interest rate swaps and caps are reported in accumulated other comprehensive income, and the fair value of these hedge agreements is recorded as derivative assets or liabilities on the face of our consolidated balance sheet. For our interest rate swap and collars that are considered highly effective hedges, we reclassified realized losses of $1,182 and $2,988 to earnings within interest expense for the three and six months ended June 30, 2022, and we expect $5,390 to be reclassified out of accumulated other comprehensive income to earnings over the next 12 months. On July 12, 2022, we entered into two forward starting interest rate collars, each with a notional value of $100,000, a cap rate of 2.50%, a floor rate of 1.50% and a maturity date of January 17, 2028. The forward interest rate collars have an effective date of January 17, 2024 and November 17, 2024, respectively. We designated these forward interest rate collars as cash flow hedges at inception and determined that the hedges are highly effective in offsetting interest rate fluctuations associated with the identified indebtedness. |
Stockholders' Equity and Noncon
Stockholders' Equity and Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity and Noncontrolling Interests | NOTE 7: Stockholders' Equity and Noncontrolling Interests Stockholders’ Equity On May 18, 2022, our board of directors declared a dividend of $0.14 per share on our common stock, which was paid on July 22, 2022 to common stockholders of record as of July 1, 2022. On March 14, 2022, our board of directors declared a dividend of $0.12 per share on our common stock, which was paid on April 22, 2022 to common stockholders of record as of April 1, 2022. On November 13, 2020, we entered into an equity distribution agreement pursuant to which we may from time to time offer and sell shares of our common stock having an aggregate offering price of up to $150,000 (the “ATM Program”) in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended. Under the ATM Program, we may also enter into one or more forward sale transactions for the sale of shares of our common stock on a forward basis. We entered into forward sale transactions under the ATM Program on November 1, 2021 and on March 7, 2022 each for the forward sale of 1,000,000 shares of our common stock. Neither of the forward sale transactions has settled as of June 30, 2022. Subject to our right to elect net share settlement, we expect to physically settle the forward sale transactions by their respective maturity dates of December 15, 2022 and March 31, 2023. As of June 30, 2022, approximately $56,836 remained available for issuance under the ATM Program. No forward sale transactions under the ATM Program were entered into during the three months ended June 30, 2022. The following table summarizes our unsettled sales transactions under the ATM Program for the six months ended June 30, 2022. During the Three Months Ended Number of Shares Sold Current Forward Price Estimated Net Proceeds Expiration Date of Forward Contract December 31, 2021 676,500 $ 23.21 $ 15,704 December 15, 2022 December 31, 2021 323,500 24.07 7,786 December 15, 2022 March 31, 2022 1,000,000 26.22 26,223 March 31, 2023 June 30, 2022 — — — Total 2,000,000 $ 49,713 We evaluated the accounting for the forward sale transactions under FASB ASC Topic 480 “Distinguishing Liabilities from Equity” and FASB ASC Topic 815 “Derivatives and Hedging”. As the forward sale transactions are considered indexed to our own equity and since they meet the equity classification conditions in ASC 815-40-25, the forward sale transactions have been classified as equity. On May 18, 2022, our Board of Directors authorized a common stock repurchase program (the "Stock Repurchase Program") covering up to $250,000 in shares of our common stock. Under the Stock Repurchase Program, we, in our discretion, may purchase our shares from time to time in the open market or in privately negotiated transactions. The amount and timing of the purchases will depend on a number of factors, including the price and availability of our shares, trading volumes and general market conditions. The Stock Repurchase Program has no time limit and may be suspended or discontinued at any time. During the three and six months ended June 30, 2022, we had no repurchases of shares under the Stock Repurchase Program. As of June 30, 2022, we had $250,000 remaining authorized for purchase under the Stock Repurchase Program. Noncontrolling Interest During the three and six months ended June 30, 2022, holders of IROP units exchanged 879,821 and 890,669 units for 879,821 and 890,669 shares of our common stock, respectively. As of June 30, 2022, 6,091,172 IROP units held by unaffiliated third parties remain outstanding. On May 18, 2022, our board of directors declared a dividend of $0.14 per unit, which was paid on July 22, 2022 to IROP LP unit holders of record as of July 1, 2022. On March 14, 2022, our board of directors declared a dividend of $0.12 per unit, which was paid on April 22, 2022 to IROP LP unit holders of record as of April 1, 2022. |
Equity Compensation Plans
Equity Compensation Plans | 6 Months Ended |
Jun. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Equity Compensation Plans | NOTE 8: Equity Compensation Plans Long Term Incentive Plan On May 18, 2022, our stockholders approved our 2022 Long Term Incentive Plan (the “2022 Incentive Plan”). The 2022 Incentive Plan replaces our 2016 Long Term Incentive Plan (the “Prior Plan”) and no new awards may be made under the Prior Plan, although awards outstanding under the Prior Plan will remain subject to the terms of the Prior Plan. The 2022 Incentive plan provides for grants of equity and equity-based awards to our employees, officers, directors, consultants and other service providers, and such awards may take the form of restricted or unrestricted shares of common stock, non-qualified stock options, incentive stock options, restricted stock units (“RSUs), stock appreciation rights (“SARs”), dividend equivalents and other equity and cash-based awards. A maximum of 8,000,000 shares of our common stock (plus up to an additional 1,280,610 shares of our common stock, to the extent that shares subject to outstanding awards under the Prior Plan are recycled into the 2022 Incentive Plan) may be awarded under the 2022 Stock Incentive Plan, subject to customary adjustment for stock splits, reverse stock splits and similar corporate events or transactions affecting shares of our common stock. Under the 2022 Stock Incentive Plan and the Prior Plan, we have granted restricted shares, RSUs, and PSUs to our employees. These awards generally vest or vested over a two shares to our non-employee directors. These awards generally vest or vested immediately. A summary of restricted common share award and RSU activity is presented below. 2022 Number of Shares Weighted Average Grant Date Fair Balance, January 1, 404,988 $ 13.75 Granted 237,648 23.70 Vested (202,678) 13.71 Forfeited (30,607) 20.85 Balance, June 30, (1) 409,351 $ 19.02 (1) The outstanding award balances above include 163,348 and 67,381 RSUs as of June 30, 2022 and December 31, 2021, respectively. On February 8, 2022, our compensation committee awarded 198,099 PSUs to our executive officers. The number of PSUs earned will be based on attainment of certain performance criteria over a three-year period, with the actual number of shares issuable ranging between 0% and 150% of the number of PSUs granted. Half of any PSUs earned will vest, and shares will be issued in respect thereof, immediately following the end of the three-year performance period; the remaining half of any PSUs earned will vest, and shares will be issued in respect thereof, after an additional one-year period of service. During the six months ended June 30, 2022 and 2021, a portion of the RSUs and PSUs granted were issued to employees who are retirement eligible. The fact that the grantees are retirement eligible resulted in immediate recognition of the associated stock-based compensation expense totaling $2,422 and $2,112, respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 9: Earnings Per Share The following table presents a reconciliation of basic and diluted earnings (loss) per share for the three and six months ended June 30, 2022 and 2021: For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 Net (loss) income $ (7,399) $ 3,407 $ 69,482 $ 4,500 Income allocated to noncontrolling interest 194 (21) (2,087) (28) Net (loss) income allocable to common shares $ (7,205) $ 3,386 $ 67,395 $ 4,472 Weighted-average shares outstanding—Basic 221,164,284 102,023,204 220,982,714 101,847,876 Weighted-average shares outstanding—Diluted 221,164,284 102,923,924 222,033,857 102,822,099 (Loss) earnings per share—Basic $ (0.03) $ 0.03 $ 0.30 $ 0.04 (Loss) earnings per share—Diluted $ (0.03) $ 0.03 $ 0.30 $ 0.04 |
Other Disclosures
Other Disclosures | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Disclosures | NOTE 10: Other Disclosures Litigation We are subject to various legal proceedings and claims that arise in the ordinary course of our business operations. Matters which arise out of allegations of bodily injury, property damage, and employment practices are generally covered by insurance. While the resolution of these matters cannot be predicted with certainty, we currently believe the final outcome of such matters will not have a material adverse effect on our financial position, results of operations or cash flows. Loss Contingencies We record an accrual for loss contingencies when a loss is probable and the amount of the loss can be reasonably estimated. Management reviews these accruals quarterly and makes revisions based on changes in facts and circumstances. When a loss contingency is not both probable and reasonably estimable, management does not accrue the loss. However, if the loss (or an additional loss in excess of an earlier accrual) is at least a reasonable possibility and material, then management discloses a reasonable estimate of the possible loss, or range of loss, if such reasonable estimate can be made. If we cannot make a reasonable estimate of the possible loss, or range of loss, then a statement to that effect is disclosed. |
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 PresentationThe accompanying unaudited interim consolidated financial statements have been prepared by management in accordance with generally accepted accounting principles in the United States (“GAAP”). Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, although we believe that the included disclosures are adequate to make the information presented not misleading. The unaudited interim consolidated financial statements should be read in conjunction with our audited financial statements as of and for the year ended December 31, 2021 included in our 2021 Annual Report on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our consolidated financial position and consolidated results of operations and cash flows are included. The results of operations for the interim periods presented are not necessarily indicative of the results for the full year. The Company evaluated subsequent events through the date its financial statements were issued. No significant recognized or non-recognized subsequent events were noted other than those described in the footnotes. |
Principles of Consolidation | Principles of ConsolidationThe consolidated financial statements reflect our accounts and the accounts of IROP and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Pursuant to the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification Topic 810, “Consolidation”, IROP is considered a variable interest entity of which we are the primary beneficiary. As our significant asset is our investment in IROP, substantially all of our assets and liabilities represent the assets and liabilities of IROP. |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents include cash held in banks and highly liquid investments with original maturities of three months or less when purchased. Cash, including amounts restricted, may at times exceed the Federal Deposit Insurance Corporation deposit insurance limit of $250 per institution. We mitigate credit risk by placing cash and cash equivalents with major financial institutions. To date, we have not experienced any losses on cash and cash equivalents. |
Restricted Cash | Restricted CashRestricted cash includes escrows of our funds held by lenders to fund certain expenditures, such as real estate taxes and insurance, or to be released at our discretion upon the occurrence of certain pre-specified events. As of June 30, 2022 and December 31, 2021, we had $31,017 and $29,699, respectively, of restricted cash. |
Investments in Real Estate | Investments in Real Estate Investments in real estate are recorded at cost less accumulated depreciation. Costs, including internal costs, that both add value and appreciably extend the useful life of an asset are capitalized. Expenditures for repairs and maintenance are expensed as incurred. Investments in real estate are classified as held for sale in the period in which certain criteria are met including when the sale of the asset is probable, and actions required to complete the plan of sale indicate that it is unlikely that significant changes to the plan of sale will be made or the plan of sale will be withdrawn. Allocation of Purchase Price of Acquired Assets In accordance with FASB ASC Topic 805, the properties we acquire are generally accounted for as asset acquisitions. Under asset acquisition accounting, the costs to acquire real estate, including transaction costs related to the acquisition, are accumulated and then allocated to the individual assets and liabilities acquired based upon their relative fair value. Transaction costs and fees incurred related to the financing of an acquisition are capitalized and amortized over the life of the related financing. We estimate the fair value of acquired tangible assets (consisting of land, building and improvements), identified intangible assets (consisting of in-place leases), and assumed debt at the date of acquisition, based on the evaluation of information and estimates available at that date. The aggregate value of in-place leases is determined by evaluating various factors, including the terms of the leases that are in place and assumed lease-up periods. The value assigned to in-place lease assets is amortized over the assumed lease up period, typically six months. During the three and six months ended June 30, 2022, we acquired in-place leases with a value of $37 related to our acquisitions that are discussed further in Note 3: Investments in Real Estate. For the three and six months ended June 30, 2022, we recorded $24,206 and $53,288, respectively, of amortization for intangible assets. For the three and six months ended June 30, 2021, we recorded $439 and $835, respectively, of amortization for intangible assets. For each of the three and six months ended June 30, 2022, we wrote-off fully amortized intangible assets of $58,048. For each of the three and six months ended June 30, 2021, we wrote-off fully amortized intangible assets of $792. As of June 30, 2022, we expect to record additional amortization expense on current in-place intangible assets of $18 for the remainder of 2022. Business Combinations For properties we acquire or transactions we entered into that are accounted for as business combinations, we apply the acquisition method of accounting under ASC 805, which requires the identification of the acquiror, the determination date, and the recognition and measurement, at fair value, of the assets acquired and liabilities assumed. To the extent that the fair value of net assets acquired differs from the fair value of consideration paid, ASC 805 requires the recognition of goodwill or a gain from a bargain purchase price, if any. For the three and six months ended June 30, 2022, we incurred merger and integration costs of $1,307 and $3,202. These amounts were expensed as incurred, and are included in the consolidated statements of operations in the item titled "Merger and integration costs", and primarily consist of technology migration and implementation, consulting and professional fees and employee severance costs. Impairment of Long-Lived Assets Management evaluates the recoverability of our investment in real estate assets, including related identifiable intangible assets, in accordance with FASB ASC Topic 360, “Property, Plant and Equipment”. This statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that recoverability of the assets is not assured. Management reviews our long-lived assets on an ongoing basis and evaluates the recoverability of the carrying value when there is an indicator of impairment. An impairment charge is recorded when it is determined that the carrying value of the asset exceeds the fair value. The estimated cash flows used for the impairment analysis and the determination of estimated fair value are based on our plans for the respective assets and our views of market and economic conditions. The estimates consider matters such as current and historical rental rates, occupancies for the respective and/or comparable properties, and recent sales data for comparable properties. Changes in estimated future cash flows due to changes in our plans or views of market and economic conditions could result in recognition of impairment losses, which, under the applicable accounting guidance, could be substantial. Depreciation Expense Depreciation expense for real estate assets is computed using a straight-line method based on a life of 40 years for buildings and improvements and five Casualty Related Costs Occasionally, we incur losses at our communities from wind storms, floods, fires and similar hazards. Sometimes, a portion of these losses are not fully covered by our insurance policies due to deductibles. In these cases, we estimate the carrying value of the damaged property and record a casualty loss for the difference between the estimated carrying value and the insurance proceeds. Any amount of insurance recovery in excess of the amount of the losses incurred is considered a gain contingency and is recorded in casualty (gains) losses, net when the proceeds are received. During the three and six months ended June 30, 2022, we recorded $5,592 and $6,985 of net casualty gains, respectively. During the three and six months ended June 30, 2021, we incurred $0 and $359 of casualty losses, respectively. |
Investments in Real Estate Under Development | Investments in Real Estate Under Development We capitalize direct and indirect project costs incurred during the development period such as construction, insurance, architectural, legal, interest costs, and real estate taxes. At such time as the development is considered substantially complete, the capitalization of certain indirect costs such as real estate taxes, interest costs, and all project-related costs in real estate under development are reclassified to investments in real estate. As of June 30, 2022 and December 31, 2021, the carrying value of our investments in real estate under development totaled $61,777 and $41,777, respectively, and was recorded as a separate line item on the face of our consolidated balance sheet. |
Investments in Unconsolidated Real Estate Entities | Investments in Unconsolidated Real Estate EntitiesWe invest in joint ventures in which we exercise significant influence but do not control the major decisions of the joint venture. Therefore, we account for these investments using the equity method of accounting. Under the equity method of accounting, the investments are carried at cost plus our share of net earnings or losses. As of June 30, 2022 and December 31, 2021, the carrying value of our investments in joint ventures totaled $54,178 and $24,999, respectively, and were recorded as a separate line item on the face of our consolidated balance sheet. We recognized losses of $871 and $934 from equity method investments during the three and six months ended June 30, 2022, and these losses were recorded in loss from investments in unconsolidated real estate entities on the face of our consolidated statements of operations. |
Revenue and Expenses | Revenue and Expenses Rental and Other Property Revenue We apply FASB ASC Topic 842, “Leases” with respect to our accounting for rental income. We primarily lease apartment units under operating leases generally with terms of one year or less. Rental payments are generally due monthly and rental revenues are recognized on an accrual basis when earned. We have elected to account for lease (i.e. fixed payments including base rent) and non-lease components (i.e. tenant reimbursements and certain other service fees) as a single combined operating lease component since (1) the timing and pattern of transfer of the lease and non-lease components is the same, (2) the lease component is the predominant element, and (3) the combined single lease component would be classified as an operating lease. We make ongoing estimates of the collectability of our base rents, tenant reimbursements, and other service fees included within rental and other property revenue. If collectability is not probable, we adjust rental and other property income for the amount of uncollectible revenue. Advertising Expenses For the three and six months ended June 30, 2022, we incurred $1,315 and $2,587 of advertising expenses, respectively. For the three and six months ended June 30, 2021, we incurred $636 and $1,180 of advertising expenses, respectively. |
Derivative Instruments | Derivative Instruments We may use derivative financial instruments to hedge all or a portion of the interest rate risk associated with our borrowings. The principal objective of such arrangements is to minimize the risks and/or costs associated with our operating and financial structure, as well as to hedge specific anticipated transactions. While these instruments may impact our periodic cash flows, they benefit us by minimizing the risks and/or costs previously described. The counterparties to these contractual arrangements are major financial institutions with which we and our affiliates may also have other financial relationships. In the event of nonperformance by the counterparties, we are potentially exposed to credit loss. However, because of the high credit ratings of the counterparties, we do not anticipate that any of the counterparties will fail to meet their obligations. In accordance with FASB ASC Topic 815, “Derivatives and Hedging”, we measure each derivative instrument at fair value and record such amounts in our consolidated balance sheets as either an asset or liability. For derivatives designated as cash flow hedges, the changes in the fair value of the effective portions of the derivative are reported in other comprehensive income and changes in the fair value of the ineffective portions of cash flow hedges, if any, are recognized in earnings. For derivatives not designated as hedges (or designated as fair value hedges), the changes in fair value of the derivative instrument are recognized in earnings. Any derivatives that we designate in hedge relationships are done so at inception. At inception, we determine whether or not the derivative is highly effective in offsetting changes in the designated interest rate risk associated with the identified indebtedness using regression analysis. At each reporting period, we update our regression analysis and use the hypothetical derivative method to measure any ineffectiveness. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments In accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures”, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity for disclosure purposes. Assets and liabilities recorded at fair value in our consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their value. Hierarchical levels, as defined in FASB ASC Topic 820, “Fair Value Measurements and Disclosures” and directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities, are as follows: • Level 1 : Valuations are based on unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets carried at Level 1 fair value generally are equity securities listed in active markets. As such, valuations of these investments do not entail a significant degree of judgment. • Level 2 : Valuations are based on quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or for which all significant inputs are observable, either directly or indirectly. • Level 3 : Inputs are unobservable for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. |
Deferred Financing Costs | Deferred Financing CostsCosts incurred in connection with debt financing are deferred and classified within indebtedness and charged to interest expense over the terms of the related debt agreements, under the effective interest method. |
Office Leases | Office LeasesIn accordance with FASB ASC Topic 842, “Leases”, lessees are required to recognize a right-of-use asset and a lease liability on the balance sheet at the lease commencement date for all leases, except those leases with terms of less than a year. We lease corporate office space under leases with terms of up to 10 years and that may include extension options, but that do not include any residual value guarantees or restrictive covenants. As of June 30, 2022, we have $3,232 of operating lease right-of-use assets and $3,557 of operating lease liabilities related to our corporate office leases. The operating lease right-of-use assets are presented within other assets and the operating lease liabilities are presented within other liabilities in our consolidated balance sheet. We recorded $383 and $844 of total operating lease expense during the three and six months ended June 30, 2022, which is recorded within property management expense and general and administrative expenses in our condensed consolidated statements of operations. |
Income Taxes | Income TaxesWe have elected to be taxed as a REIT. Accordingly, we recorded no income tax expense for the three and six months ended June 30, 2022 and 2021.To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our ordinary taxable income to stockholders. As a REIT, we generally are not subject to federal income tax on taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year during which qualification is lost unless the Internal Revenue Service grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders; however, we believe that we are organized and operate in such a manner as to qualify and maintain treatment as a REIT and intend to operate in such a manner so that we will remain qualified as a REIT for federal income tax purposes. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Carrying Amount and Fair Value of Financial Instrument | The following table summarizes the carrying amount and the fair value of our financial instruments as of the periods indicated: As of June 30, 2022 As of December 31, 2021 Financial Instrument Carrying Estimated Carrying Estimated Assets Cash and cash equivalents $ 11,378 $ 11,378 $ 35,972 $ 35,972 Restricted cash 31,017 31,017 29,699 29,699 Derivative assets 21,162 21,162 2,488 2,488 Liabilities Debt: Unsecured Revolver 129,406 129,406 274,109 274,109 Unsecured Term loans 498,255 498,255 497,951 497,951 Secured credit facilities 662,668 617,318 664,618 668,352 Mortgages (1) 1,262,607 1,184,797 1,268,658 1,282,495 Derivative liabilities — — 11,896 11,896 (1) Includes indebtedness associated with real estate held for sale. |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Real Estate [Abstract] | |
Summary of Investments in Real Estate | The following table summarizes our investments consolidated in real estate: As of June 30, 2022 As of December 31, 2021 Depreciable Lives Land $ 561,107 $ 567,507 — Building 5,571,949 5,622,492 40 Furniture, fixtures and equipment 295,426 272,356 5-10 Total investments in real estate $ 6,428,482 $ 6,462,355 Accumulated depreciation (329,903) (243,475) Investments in real estate, net $ 6,098,579 $ 6,218,880 |
Summary of Held for Sale Property | The table below summarizes our held for sale properties. Property Name Net carrying value Units (unaudited) Meadows Apartments - Louisville, KY $ 36,285 400 Sycamore Terrace - Terra Haute, IN 45,533 250 Totals $ 81,818 650 |
Asset Acquisition | The following table summarizes the relative fair value of the assets and liabilities associated with the acquisition of the Views of Music City (phase I), acquired during the six month period ended June 30, 2022, on the date of acquisition accounted for under FASB ASC Topic 805-50-15-3. Fair Value of Assets Acquired During the Six Months Ended June 30, 2022 Assets acquired: Investments in real estate $ 24,481 Intangible assets 37 Total assets acquired 24,518 Liabilities assumed: Accounts payable and accrued expenses 7 Other liabilities 53 Total liabilities assumed 60 Estimated fair value of net assets acquired $ 24,458 |
Summary of Disposition of Property | The following table summarizes our dispositions for the six months ended June 30, 2022: Property Name Date of Sale Sale Price Gain on sale Riverchase 01/18/2022 $ 31,000 $ 12,901 Heritage Park 02/02/2022 48,500 31,366 Raindance 02/02/2022 47,500 33,748 Haverford 02/02/2022 31,050 16,697 Total $ 158,050 $ 94,712 |
Investments in Unconsolidated_2
Investments in Unconsolidated Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Investments in Unconsolidated Real Estate | The following table summarizes our investments in unconsolidated real estate entities as of June 30, 2022 and December 31, 2021: Carrying Value As Of Investments in Unconsolidated Real Estate Location Units (1) (Unaudited) IRT Ownership Interest June 30, 2022 December 31, 2021 Metropolis at Innsbrook Richmond, VA 402 84.8 % $ 16,968 $ 14,632 Views of Music City / The Jackson Nashville, TN 408 50.0 % 6,887 10,368 Virtuoso Huntsville, AL 400 90.0 % 15,640 — Lakeline Station Austin, TX 378 90.0 % 14,683 — Total 1,588 $ 54,178 $ 24,999 (1) Represents the total number of units after development is complete and each property is placed in service. As of June 30, 2022 only the Virtuoso investment’s development is complete and has ongoing operations. |
Indebtedness (Tables)
Indebtedness (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary Information Concerning Indebtedness | The following tables contain summary information concerning our indebtedness as of June 30, 2022: Debt: Outstanding Principal Unamortized Debt Issuance Costs Unamortized Loan (Discount)/Premiums Carrying Type Weighted Weighted Unsecured revolver (1) $ 132,003 $ (2,597) $ — $ 129,406 Floating 2.8% 3.6 Unsecured term loans 500,000 (1,745) — 498,255 Floating 2.7% 2.7 Secured credit facilities 635,128 (2,478) 30,018 662,668 Floating/Fixed 4.1% 6.4 Mortgages (2) 1,234,932 (8,398) 36,073 1,262,607 Fixed 3.9% 5.7 Total Debt $ 2,502,063 $ (15,218) $ 66,091 $ 2,552,936 3.6% 5.2 (1) The unsecured revolver's maximum borrowing capacity is $500,000, of which $132,003 was outstanding as of June 30, 2022. (2) Includes indebtedness associated with real estate held for sale. The following table contains summary information concerning our indebtedness as of December 31, 2021: Debt: Outstanding Principal Unamortized Debt Issuance Costs Unamortized Loan (Discount)/Premiums Carrying Amount Type Weighted Weighted Unsecured revolver (1) $ 277,003 $ (2,894) $ — $ 274,109 Floating 1.5% 4.1 Unsecured term loans 500,000 (2,049) — 497,951 Floating 1.4% 3.2 Secured credit facilities 635,128 (2,840) 32,330 664,618 Floating/Fixed 4.0% 6.9 Mortgages 1,238,612 (9,210) 39,256 1,268,658 Fixed 3.9% 6.2 Total Debt $ 2,650,743 $ (16,993) $ 71,586 $ 2,705,336 3.2% 5.6 (1) The unsecured revolver's maximum borrowing capacity was $500,000, of which $277,003 was outstanding as of December 31, 2021. |
Schedule of Maturities of Long-term Debt | The following table contains summary information concerning our indebtedness as of June 30, 2022: Scheduled maturities on our indebtedness outstanding as of June 30, 2022 Debt: 2022 2023 2024 2025 2026 Thereafter Unsecured revolver $ — $ — $ — $ — $ 132,003 $ — Unsecured term loans — — 300,000 — 200,000 — Secured credit facilities — — — 3,525 10,493 621,110 Mortgages (1) 6,754 10,998 107,621 168,554 131,166 809,839 Total $ 6,754 $ 10,998 $ 407,621 $ 172,079 $ 473,662 $ 1,430,949 (1) Includes indebtedness associated with real estate held for sale. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Aggregate Amount and Estimated Net Fair Values of Our Derivative Instruments | The following table summarizes the aggregate notional amounts and estimated net fair values of our derivative instruments as of June 30, 2022 and December 31, 2021: As of June 30, 2022 As of December 31, 2021 Notional Fair Value of Fair Value of Notional Fair Value of Fair Value of Cash flow hedges: Interest rate swap $ 300,000 $ 16,864 — $ 150,000 $ 2,488 $ 6,463 Interest rate collars 250,000 4,298 — 250,000 — 5,433 Total $ 550,000 $ 21,162 — $ 400,000 $ 2,488 $ 11,896 |
Stockholders' Equity and Nonc_2
Stockholders' Equity and Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Summary of Unsettled Sales Transactions Under the ATM Programs | The following table summarizes our unsettled sales transactions under the ATM Program for the six months ended June 30, 2022. During the Three Months Ended Number of Shares Sold Current Forward Price Estimated Net Proceeds Expiration Date of Forward Contract December 31, 2021 676,500 $ 23.21 $ 15,704 December 15, 2022 December 31, 2021 323,500 24.07 7,786 December 15, 2022 March 31, 2022 1,000,000 26.22 26,223 March 31, 2023 June 30, 2022 — — — Total 2,000,000 $ 49,713 |
Equity Compensation Plans (Tabl
Equity Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Common Share Awards and RSU of Incentive Plan | A summary of restricted common share award and RSU activity is presented below. 2022 Number of Shares Weighted Average Grant Date Fair Balance, January 1, 404,988 $ 13.75 Granted 237,648 23.70 Vested (202,678) 13.71 Forfeited (30,607) 20.85 Balance, June 30, (1) 409,351 $ 19.02 (1) The outstanding award balances above include 163,348 and 67,381 RSUs as of June 30, 2022 and December 31, 2021, respectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings (Loss) Per Share | The following table presents a reconciliation of basic and diluted earnings (loss) per share for the three and six months ended June 30, 2022 and 2021: For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 Net (loss) income $ (7,399) $ 3,407 $ 69,482 $ 4,500 Income allocated to noncontrolling interest 194 (21) (2,087) (28) Net (loss) income allocable to common shares $ (7,205) $ 3,386 $ 67,395 $ 4,472 Weighted-average shares outstanding—Basic 221,164,284 102,023,204 220,982,714 101,847,876 Weighted-average shares outstanding—Diluted 221,164,284 102,923,924 222,033,857 102,822,099 (Loss) earnings per share—Basic $ (0.03) $ 0.03 $ 0.30 $ 0.04 (Loss) earnings per share—Diluted $ (0.03) $ 0.03 $ 0.30 $ 0.04 |
Organization (Detail)
Organization (Detail) - Jun. 30, 2022 | Property | unit |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of multifamily properties owned | 120 | 120 |
Number of units located with multifamily properties | 35,594 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Significant Accounting Policies [Line Items] | |||||
Restricted cash | $ 31,017,000 | $ 31,017,000 | $ 29,699,000 | ||
Acquisition of above-market in-place leases, amortization period | 6 months | ||||
Amortization expense for intangible assets | 24,206,000 | $ 439,000 | $ 53,288,000 | $ 835,000 | |
Write-off of fully amortized intangible assets | 58,048,000 | 792,000 | 58,048,000 | 792,000 | |
Additional amortization expense on current in-place intangible assets for the remainder of 2022 | 18,000 | 18,000 | |||
Merger and integration cots | 1,307,000 | 3,202,000 | |||
Depreciation expense | 48,092,000 | 16,324,000 | 96,954,000 | 32,480,000 | |
Fully depreciated fixed assets, wrote-off | 1,932,000 | 3,092,000 | |||
Casualty (gains) losses, net | (5,592,000) | 0 | (6,985,000) | 359,000 | |
Investment in real estate under development | 61,777,000 | 61,777,000 | 41,777,000 | ||
Investments in joint ventures | 54,178,000 | 54,178,000 | $ 24,999,000 | ||
Loss from equity method investments | 871,000 | 0 | 934,000 | 0 | |
Advertising expenses | 1,315,000 | 636,000 | 2,587,000 | 1,180,000 | |
Right-of-use assets | 3,232,000 | 3,232,000 | |||
Lease liability | 3,557,000 | 3,557,000 | |||
Total operating lease expense | 383,000 | 844,000 | |||
Income tax expense | 0 | $ 0 | 0 | $ 0 | |
Leases Acquired In Place | |||||
Significant Accounting Policies [Line Items] | |||||
Acquisition of above-market in-place leases | $ 37,000 | $ 37,000 | |||
Building and Building Improvements | |||||
Significant Accounting Policies [Line Items] | |||||
Depreciable useful life | 40 years | ||||
Minimum | Equipment and Fixtures | |||||
Significant Accounting Policies [Line Items] | |||||
Depreciable useful life | 5 years | ||||
Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Operating lease term | 10 years | 10 years | |||
Maximum | Equipment and Fixtures | |||||
Significant Accounting Policies [Line Items] | |||||
Depreciable useful life | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Carrying Amount and Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Assets | |||
Cash and cash equivalents, Carrying Amount | $ 11,378 | $ 35,972 | $ 7,566 |
Restricted cash, Carrying Amount | 31,017 | 29,699 | |
Derivative assets, Carrying Amount | 21,162 | 2,488 | |
Cash and cash equivalents, Estimated Fair Value | 11,378 | 35,972 | |
Restricted cash, Estimated Fair Value | 31,017 | 29,699 | |
Derivative assets, Estimated Fair Value | 21,162 | 2,488 | |
Liabilities | |||
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount | 2,552,936 | 2,705,336 | |
Derivative liabilities, carrying Amount | 0 | 11,896 | |
Derivative liabilities, Estimated Fair Value | 0 | 11,896 | |
Unsecured revolver | |||
Liabilities | |||
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount | 129,406 | 274,109 | |
Indebtedness, net of unamortized discount and deferred financing costs, Estimated Fair Value | 129,406 | 274,109 | |
Unsecured term loans | |||
Liabilities | |||
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount | 498,255 | 497,951 | |
Indebtedness, net of unamortized discount and deferred financing costs, Estimated Fair Value | 498,255 | 497,951 | |
Secured credit facilities | |||
Liabilities | |||
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount | 662,668 | 664,618 | |
Indebtedness, net of unamortized discount and deferred financing costs, Estimated Fair Value | 617,318 | 668,352 | |
Mortgages | |||
Liabilities | |||
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount | 1,262,607 | 1,268,658 | |
Indebtedness, net of unamortized discount and deferred financing costs, Estimated Fair Value | $ 1,184,797 | $ 1,282,495 |
Investments in Real Estate - Ad
Investments in Real Estate - Additional Information (Detail) $ in Thousands | 6 Months Ended | ||||
Apr. 06, 2022 USD ($) unit | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) Property | Jun. 30, 2021 USD ($) | Jun. 30, 2022 unit | |
Real Estate Properties [Line Items] | |||||
Number of multifamily properties owned | 120 | 120 | |||
Number of units located with multifamily properties | unit | 35,594 | ||||
Number of real estate properties acquired | unit | 96 | ||||
Acquisition of real estate properties | $ 25,440 | $ 25,957 | $ 139,231 | ||
Sale proceeds from investments in unconsolidated real estate entities | 4,428 | ||||
Return of investment in unconsolidated real estate entities | 3,406 | $ 3,406 | $ 0 | ||
Distributions from investments in unconsolidated real estate entities | $ 1,022 | ||||
Held-for-Sale | |||||
Real Estate Properties [Line Items] | |||||
Number of multifamily properties owned | Property | 2 | ||||
Held-for-Sale | Forecast | |||||
Real Estate Properties [Line Items] | |||||
Mortgage loan related to property disposition | $ 46,200 | ||||
Loss on extinguishment of debt | $ 861 |
Investments in Real Estate - Su
Investments in Real Estate - Summary of Investments in Real Estate (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Real Estate Properties [Line Items] | ||
Land | $ 561,107 | $ 567,507 |
Building | 5,571,949 | 5,622,492 |
Furniture, fixtures and equipment | 295,426 | 272,356 |
Total investment in real estate | 6,428,482 | 6,462,355 |
Accumulated depreciation | (329,903) | (243,475) |
Investments in real estate, net | $ 6,098,579 | $ 6,218,880 |
Building | ||
Real Estate Properties [Line Items] | ||
Depreciable useful life | 40 years | |
Furniture, fixtures and equipment | Minimum | ||
Real Estate Properties [Line Items] | ||
Depreciable useful life | 5 years | |
Furniture, fixtures and equipment | Maximum | ||
Real Estate Properties [Line Items] | ||
Depreciable useful life | 10 years |
Investments in Real Estate - _2
Investments in Real Estate - Summary of Held for Sale Property (Details) $ in Thousands | Jun. 30, 2022 USD ($) unit | Dec. 31, 2021 USD ($) |
Real Estate Properties [Line Items] | ||
Net carrying value | $ | $ 81,818 | $ 61,560 |
Units | unit | 650 | |
Meadows Apartments | Louisville, KY | ||
Real Estate Properties [Line Items] | ||
Net carrying value | $ | $ 36,285 | |
Units | unit | 400 | |
Sycamore Terrace | Terra Haute, IN | ||
Real Estate Properties [Line Items] | ||
Net carrying value | $ | $ 45,533 | |
Units | unit | 250 |
Investments in Real Estate - Fa
Investments in Real Estate - Fair Value of Assets Acquired and Liabilities Assumed (Details) - Views of Music City (phase I) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Assets acquired: | |
Investments in real estate | $ 24,481 |
Intangible assets | 37 |
Total assets acquired | 24,518 |
Liabilities assumed: | |
Accounts payable and accrued expenses | 7 |
Other liabilities | 53 |
Total liabilities assumed | 60 |
Estimated fair value of net assets acquired | $ 24,458 |
Investments in Real Estate - _3
Investments in Real Estate - Summary of Disposition of Property's (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Real Estate Properties [Line Items] | ||||
Sale Price | $ 158,050 | |||
Gain on sale | $ 0 | $ 0 | 94,712 | $ 0 |
Riverchase | ||||
Real Estate Properties [Line Items] | ||||
Sale Price | 31,000 | |||
Gain on sale | 12,901 | |||
Heritage Park | ||||
Real Estate Properties [Line Items] | ||||
Sale Price | 48,500 | |||
Gain on sale | 31,366 | |||
Raindance | ||||
Real Estate Properties [Line Items] | ||||
Sale Price | 47,500 | |||
Gain on sale | 33,748 | |||
Haverford | ||||
Real Estate Properties [Line Items] | ||||
Sale Price | 31,050 | |||
Gain on sale | $ 16,697 |
Investments in Unconsolidated_3
Investments in Unconsolidated Real Estate - Additional Information (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Schedule of Equity Method Investments [Line Items] | |
Aggregate land and construction in progress costs capitalized | $ 136,300 |
Aggregate construction debt | $ 60,240 |
Minimum | |
Schedule of Equity Method Investments [Line Items] | |
Equity interest ownership percentage | 50% |
Maximum | |
Schedule of Equity Method Investments [Line Items] | |
Equity interest ownership percentage | 90% |
Investments in Unconsolidated_4
Investments in Unconsolidated Real Estate - Summary of Investments In Unconsolidated Real Estate Entities (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 USD ($) unit | Dec. 31, 2021 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Units | unit | 1,588 | |
Investments in unconsolidated real estate entities | $ | $ 54,178 | $ 24,999 |
Metropolis at Innsbrook | Richmond, VA | ||
Schedule of Equity Method Investments [Line Items] | ||
Units | unit | 402 | |
IRT Ownership Interest | 84.80% | |
Investments in unconsolidated real estate entities | $ | $ 16,968 | 14,632 |
Views of Music City / The Jackson | Nashville, TN | ||
Schedule of Equity Method Investments [Line Items] | ||
Units | unit | 408 | |
IRT Ownership Interest | 50% | |
Investments in unconsolidated real estate entities | $ | $ 6,887 | 10,368 |
Virtuoso | Huntsville, AL | ||
Schedule of Equity Method Investments [Line Items] | ||
Units | unit | 400 | |
IRT Ownership Interest | 90% | |
Investments in unconsolidated real estate entities | $ | $ 15,640 | 0 |
Lakeline Station | Austin, TX | ||
Schedule of Equity Method Investments [Line Items] | ||
Units | unit | 378 | |
IRT Ownership Interest | 90% | |
Investments in unconsolidated real estate entities | $ | $ 14,683 | $ 0 |
Indebtedness - Summary Informat
Indebtedness - Summary Information Concerning Indebtedness (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Outstanding Principal | $ 2,502,063,000 | $ 2,650,743,000 |
Unamortized Debt Issuance Costs | (15,218,000) | (16,993,000) |
Unamortized Loan (Discount)/Premiums | 66,091,000 | 71,586,000 |
Carrying Amount | $ 2,552,936,000 | $ 2,705,336,000 |
Weighted Average Rate | 3.60% | 3.20% |
Weighted Average Maturity (in years) | 5 years 2 months 12 days | 5 years 7 months 6 days |
Unsecured revolver | ||
Debt Instrument [Line Items] | ||
Outstanding Principal | $ 132,003,000 | $ 277,003,000 |
Unamortized Debt Issuance Costs | (2,597,000) | (2,894,000) |
Unamortized Loan (Discount)/Premiums | 0 | 0 |
Carrying Amount | $ 129,406,000 | $ 274,109,000 |
Weighted Average Rate | 2.80% | 1.50% |
Weighted Average Maturity (in years) | 3 years 7 months 6 days | 4 years 1 month 6 days |
Credit facility borrowing capacity | $ 500,000,000 | $ 500,000,000 |
Unsecured term loans | ||
Debt Instrument [Line Items] | ||
Outstanding Principal | 500,000,000 | 500,000,000 |
Unamortized Debt Issuance Costs | (1,745,000) | (2,049,000) |
Unamortized Loan (Discount)/Premiums | 0 | 0 |
Carrying Amount | $ 498,255,000 | $ 497,951,000 |
Weighted Average Rate | 2.70% | 1.40% |
Weighted Average Maturity (in years) | 2 years 8 months 12 days | 3 years 2 months 12 days |
Secured credit facilities | ||
Debt Instrument [Line Items] | ||
Outstanding Principal | $ 635,128,000 | $ 635,128,000 |
Unamortized Debt Issuance Costs | (2,478,000) | (2,840,000) |
Unamortized Loan (Discount)/Premiums | 30,018,000 | 32,330,000 |
Carrying Amount | $ 662,668,000 | $ 664,618,000 |
Weighted Average Rate | 4.10% | 4% |
Weighted Average Maturity (in years) | 6 years 4 months 24 days | 6 years 10 months 24 days |
Mortgages | ||
Debt Instrument [Line Items] | ||
Outstanding Principal | $ 1,234,932,000 | $ 1,238,612,000 |
Unamortized Debt Issuance Costs | (8,398,000) | (9,210,000) |
Unamortized Loan (Discount)/Premiums | 36,073,000 | 39,256,000 |
Carrying Amount | $ 1,262,607,000 | $ 1,268,658,000 |
Weighted Average Rate | 3.90% | 3.90% |
Weighted Average Maturity (in years) | 5 years 8 months 12 days | 6 years 2 months 12 days |
Indebtedness - Maturity of Inde
Indebtedness - Maturity of Indebtedness (Detail) $ in Thousands | Jun. 30, 2022 USD ($) |
Debt Instrument [Line Items] | |
2022 | $ 6,754 |
2023 | 10,998 |
2024 | 407,621 |
2025 | 172,079 |
2026 | 473,662 |
Thereafter | 1,430,949 |
Mortgages | |
Debt Instrument [Line Items] | |
2022 | 6,754 |
2023 | 10,998 |
2024 | 107,621 |
2025 | 168,554 |
2026 | 131,166 |
Thereafter | 809,839 |
Unsecured revolver | |
Debt Instrument [Line Items] | |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 132,003 |
Thereafter | 0 |
Unsecured term loans | |
Debt Instrument [Line Items] | |
2022 | 0 |
2023 | 0 |
2024 | 300,000 |
2025 | 0 |
2026 | 200,000 |
Thereafter | 0 |
Secured credit facilities | |
Debt Instrument [Line Items] | |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 3,525 |
2026 | 10,493 |
Thereafter | $ 621,110 |
Indebtedness - Additional Infor
Indebtedness - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Jul. 25, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Restated Credit Agreement | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Credit facility borrowing capacity | $ 1,100,000,000 | ||
Increase in line of credit facility | 100,000,000 | ||
Debt instrument, maximum increase amount | 1,500,000,000 | ||
Unsecured revolver | |||
Debt Instrument [Line Items] | |||
Credit facility borrowing capacity | $ 500,000,000 | $ 500,000,000 | |
Term Loan Facility | January 2024 Term Loan | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Credit facility borrowing capacity | 200,000,000 | ||
Term Loan Facility | November 2024 Term Loan | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Credit facility borrowing capacity | 100,000,000 | ||
Term Loan Facility | 2026 Term Loan | |||
Debt Instrument [Line Items] | |||
Debt. basis spread on variable rate | 1.20% | ||
Term Loan Facility | 2026 Term Loan | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Credit facility borrowing capacity | 200,000,000 | ||
Term Loan Facility | 2028 Term Loan | |||
Debt Instrument [Line Items] | |||
Debt. basis spread on variable rate | 1.15% | ||
Term Loan Facility | 2028 Term Loan | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Credit facility borrowing capacity | 400,000,000 | ||
Term Loan Facility | Minimum | SOFR rate | 2026 Term Loan | |||
Debt Instrument [Line Items] | |||
Debt. basis spread on variable rate | 1.20% | ||
Term Loan Facility | Minimum | SOFR rate | 2028 Term Loan | |||
Debt Instrument [Line Items] | |||
Debt. basis spread on variable rate | 1.15% | ||
Term Loan Facility | Minimum | Base Rate | 2026 Term Loan | |||
Debt Instrument [Line Items] | |||
Debt. basis spread on variable rate | 0.20% | ||
Term Loan Facility | Minimum | Base Rate | 2028 Term Loan | |||
Debt Instrument [Line Items] | |||
Debt. basis spread on variable rate | 0.15% | ||
Term Loan Facility | Maximum | SOFR rate | 2026 Term Loan | |||
Debt Instrument [Line Items] | |||
Debt. basis spread on variable rate | 1.90% | ||
Term Loan Facility | Maximum | SOFR rate | 2028 Term Loan | |||
Debt Instrument [Line Items] | |||
Debt. basis spread on variable rate | 1.80% | ||
Term Loan Facility | Maximum | Base Rate | 2026 Term Loan | |||
Debt Instrument [Line Items] | |||
Debt. basis spread on variable rate | 0.90% | ||
Term Loan Facility | Maximum | Base Rate | 2028 Term Loan | |||
Debt Instrument [Line Items] | |||
Debt. basis spread on variable rate | 0.80% | ||
Unsecured Revolving Line of Credit | |||
Debt Instrument [Line Items] | |||
Repayments of long-term lines of credit | $ 100,000,000 | ||
Debt. basis spread on variable rate | 1.25% | ||
Unsecured Revolving Line of Credit | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Credit facility borrowing capacity | $ 500,000,000 | ||
Unsecured Revolving Line of Credit | Minimum | SOFR rate | |||
Debt Instrument [Line Items] | |||
Debt. basis spread on variable rate | 1.25% | ||
Unsecured Revolving Line of Credit | Minimum | Base Rate | |||
Debt Instrument [Line Items] | |||
Debt. basis spread on variable rate | 0.25% | ||
Unsecured Revolving Line of Credit | Maximum | SOFR rate | |||
Debt Instrument [Line Items] | |||
Debt. basis spread on variable rate | 2% | ||
Unsecured Revolving Line of Credit | Maximum | Base Rate | |||
Debt Instrument [Line Items] | |||
Debt. basis spread on variable rate | 1% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Aggregate Amount and Estimated Net Fair Values of Derivative Instruments (Detail) - Cash Flow Hedge - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative Instruments Gain Loss [Line Items] | ||
Notional | $ 550,000,000 | $ 400,000,000 |
Fair Value of Assets | 21,162,000 | 2,488,000 |
Fair Value of Liabilities | 0 | 11,896,000 |
Interest rate swap | ||
Derivative Instruments Gain Loss [Line Items] | ||
Notional | 300,000,000 | 150,000,000 |
Fair Value of Assets | 16,864,000 | 2,488,000 |
Fair Value of Liabilities | 0 | 6,463,000 |
Interest rate collars | ||
Derivative Instruments Gain Loss [Line Items] | ||
Notional | 250,000,000 | 250,000,000 |
Fair Value of Assets | 4,298,000 | 0 |
Fair Value of Liabilities | $ 0 | $ 5,433,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2022 | Jul. 12, 2022 | Dec. 31, 2021 | |
Cash Flow Hedge | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Notional | $ 550,000,000 | $ 550,000,000 | $ 400,000,000 | |
Interest Rate Swap and Collars | Cash Flow Hedge | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Realized losses on interest rate hedges reclassified to earnings | $ 1,182,000 | 2,988,000 | ||
Amount expect to be reclassified out of accumulated other comprehensive income into earnings in future | $ 5,390,000 | |||
Estimated time for reclassification out of accumulated other comprehensive income into earnings | 12 months | |||
Forward Interest Rate Collar | Subsequent Event | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Notional | $ 100,000,000 | |||
Derivative, cap interest rate | 2.50% | |||
Derivative, floor interest rate | 1.50% |
Stockholders' Equity and Nonc_3
Stockholders' Equity and Noncontrolling Interests - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||||
May 18, 2022 | Mar. 14, 2022 | Mar. 07, 2022 | Nov. 01, 2021 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2022 | Nov. 13, 2020 | |
Class Of Stock [Line Items] | |||||||||||
Dividend declared per share (in dollars per share) | $ 0.14 | $ 0.12 | $ 0.12 | $ 0.12 | |||||||
At-the-market agreement to sell common shares, maximum offer price | $ 150,000 | ||||||||||
Stock repurchase program, authorized amount | $ 250,000 | ||||||||||
Amount remaining authorized for purchase under the stock repurchase program | $ 250,000 | $ 250,000 | $ 250,000 | ||||||||
Number of IROP unites exchanged (in shares) | 879,821 | 890,669 | |||||||||
IROP Units outstanding (in shares) | 6,091,172 | 6,091,172 | 6,091,172 | ||||||||
Common Shares | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Conversion of noncontrolling interest to common shares (in shares) | 879,821 | 10,848 | 122,155 | 890,669 | |||||||
ATM Program | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Number of shares issued (in shares) | 2,000,000 | ||||||||||
Common stock, capital shares reserved for future issuance (in shares) | 56,836,000 | 56,836,000 | 56,836,000 | ||||||||
ATM Program | Forward Contracts | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Number of shares issued (in shares) | 1,000,000 | 1,000,000 | |||||||||
Dividend Declared | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Dividend declared per share (in dollars per share) | $ 0.14 | $ 0.12 |
Stockholders' Equity and Nonc_4
Stockholders' Equity and Noncontrolling Interests (Details) - ATM Program - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Class Of Stock [Line Items] | ||||
Number of shares issued (in shares) | 2,000,000 | |||
Estimated net proceeds | $ 49,713 | |||
Forward Contract, Expiration Date December 15, 2022 | ||||
Class Of Stock [Line Items] | ||||
Number of shares issued (in shares) | 676,500 | |||
Current Forward Price (in dollar per share) | $ 23.21 | |||
Estimated net proceeds | $ 15,704 | |||
Forward Contract, Expiration Date December 15, 2022 Transition 2 | ||||
Class Of Stock [Line Items] | ||||
Number of shares issued (in shares) | 323,500 | |||
Current Forward Price (in dollar per share) | $ 24.07 | |||
Estimated net proceeds | $ 7,786 | |||
Forward Contract, Expiration Date March 31, 2023 | ||||
Class Of Stock [Line Items] | ||||
Number of shares issued (in shares) | 1,000,000 | |||
Current Forward Price (in dollar per share) | $ 26.22 | |||
Estimated net proceeds | $ 26,223 | |||
Forward Contract, Expiration Date | ||||
Class Of Stock [Line Items] | ||||
Number of shares issued (in shares) | 0 | |||
Current Forward Price (in dollar per share) | $ 0 | $ 0 | ||
Estimated net proceeds | $ 0 |
Equity Compensation Plans - Add
Equity Compensation Plans - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||||
Feb. 08, 2022 | May 31, 2016 | Jun. 30, 2022 | Jun. 30, 2021 | May 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common stock, shares authorized (in shares) | 500,000,000 | 8,000,000 | 500,000,000 | |||
Performance Share Units | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Awards vesting period | 3 years | |||||
Performance Share Units | Executive Officers | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares awarded (in shares) | 198,099 | |||||
Restricted Stock and Performance Shares Units | Employee | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock compensation expense | $ 2,422 | $ 2,112 | ||||
Minimum | Performance Share Units | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share based compensation arrangement by share based payment award number share issuable percentage | 0% | |||||
Maximum | Performance Share Units | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share based compensation arrangement by share based payment award number share issuable percentage | 150% | |||||
Long Term Incentive Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common stock, shares authorized (in shares) | 1,280,610 | |||||
Long Term Incentive Plan | Performance Share Units | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Awards performance period | 3 years | |||||
Awards service period | 1 year | |||||
Long Term Incentive Plan | Minimum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Awards vesting period | 2 years | |||||
Long Term Incentive Plan | Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Awards vesting period | 4 years |
Equity Compensation Plans - Sum
Equity Compensation Plans - Summary of Restricted Common Share Awards and RSU of Incentive Plan (Detail) | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Restricted Stock And RSUs | |
Number of Shares | |
Number of Shares, beginning balance (in shares) | 404,988 |
Common share awards, granted (in shares) | 237,648 |
Common share awards, vested (in shares) | (202,678) |
Common share awards, forfeited (in shares) | (30,607) |
Number of Shares, ending balance (in shares) | 409,351 |
Weighted Average Grant Date Fair Value Per Share | |
Weighted average fair value, Balance at beginning of period (in dollars per share) | $ / shares | $ 13.75 |
Weighted average fair value, granted (in dollars per share) | $ / shares | 23.70 |
Weighted average fair value, vested (in dollars per share) | $ / shares | 13.71 |
Weighted average fair value, forfeited (in dollars per share) | $ / shares | 20.85 |
Weighted average fair value, Balance at end of period (in dollars per share) | $ / shares | $ 19.02 |
RSUs | |
Number of Shares | |
Number of Shares, beginning balance (in shares) | 67,381 |
Number of Shares, ending balance (in shares) | 163,348 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||||
Net (loss) income | $ (7,399) | $ 76,880 | $ 3,407 | $ 1,093 | $ 69,482 | $ 4,500 |
Loss (income) allocated to noncontrolling interest | 194 | (21) | (2,087) | (28) | ||
Net (loss) income allocable to common shares | $ (7,205) | $ 3,386 | $ 67,395 | $ 4,472 | ||
Weighted-average shares outstanding—Basic (in shares) | 221,164,284 | 102,023,204 | 220,982,714 | 101,847,876 | ||
Weighted-average shares outstanding—Diluted (in shares) | 221,164,284 | 102,923,924 | 222,033,857 | 102,822,099 | ||
(Loss) earnings per share—Basic (in dollars per share) | $ (0.03) | $ 0.03 | $ 0.30 | $ 0.04 | ||
(Loss) earnings per share—Diluted (in dollars per share) | $ (0.03) | $ 0.03 | $ 0.30 | $ 0.04 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings (loss) per share, amount | 8,112,835 | 552,360 | 8,112,835 | 552,360 |