Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 30, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | IRT | |
Entity Registrant Name | INDEPENDENCE REALTY TRUST, INC. | |
Entity Central Index Key | 1,466,085 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 83,518,602 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Investments in real estate: | ||
Investments in real estate, at cost | $ 1,427,057 | $ 1,249,356 |
Accumulated depreciation | (75,084) | (51,511) |
Investments in real estate, net | 1,351,973 | 1,197,845 |
Real estate held for sale | 22,031 | 60,786 |
Cash and cash equivalents | 10,128 | 20,892 |
Restricted cash | 6,665 | 5,518 |
Accounts receivable and other assets | 9,416 | 5,211 |
Derivative assets | 3,581 | 3,867 |
Intangible assets, net of accumulated amortization of $664 and $0, respectively | 1,418 | 118 |
Total Assets | 1,405,212 | 1,294,237 |
LIABILITIES AND EQUITY: | ||
Indebtedness, net of unamortized deferred financing costs of $5,697 and $6,371, respectively | 731,625 | 743,817 |
Accounts payable and accrued expenses | 23,236 | 14,028 |
Accrued interest payable | 134 | 491 |
Dividends payable | 5,176 | 4,297 |
Other liabilities | 3,063 | 2,913 |
Total Liabilities | 763,234 | 765,546 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value; 50,000,000 shares authorized, 0 and 0 shares issued and outstanding, respectively | ||
Common stock, $0.01 par value; 300,000,000 shares authorized, 83,518,602 and 68,996,070 shares issued and outstanding, including 295,846 and 281,000 unvested restricted common share awards, respectively | 835 | 690 |
Additional paid-in capital | 691,550 | 564,633 |
Accumulated other comprehensive income | 3,466 | 3,683 |
Retained earnings (accumulated deficit) | (76,419) | (62,181) |
Total stockholders’ equity | 619,432 | 506,825 |
Noncontrolling interests | 22,546 | 21,866 |
Total Equity | 641,978 | 528,691 |
Total Liabilities and Equity | $ 1,405,212 | $ 1,294,237 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Intangible assets, accumulated amortization | $ 664 | $ 0 |
Indebtedness, unamortized discount and deferred financing costs | $ 5,697 | $ 6,371 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 83,518,602 | 83,518,602 |
Common stock, shares outstanding | 68,996,070 | 68,996,070 |
Unvested restricted common share awards | 295,846 | 281,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
REVENUE: | ||||
Rental income | $ 35,531 | $ 34,333 | $ 105,444 | $ 103,271 |
Tenant reimbursement income | 1,373 | 1,351 | 4,232 | 4,194 |
Other property income | 2,960 | 2,680 | 8,514 | 7,892 |
Property management and other income | 202 | 579 | ||
Total revenue | 40,066 | 38,364 | 118,769 | 115,357 |
EXPENSES: | ||||
Property operating expenses | 16,196 | 16,107 | 48,106 | 47,588 |
Property management expenses | 1,328 | 1,219 | 4,310 | 3,710 |
General and administrative expenses | 2,322 | 2,665 | 7,128 | 8,074 |
Acquisition and integration expenses | 569 | 19 | 956 | 37 |
Depreciation and amortization expense | 8,671 | 7,765 | 24,289 | 26,927 |
Total expenses | 29,086 | 27,775 | 84,789 | 86,336 |
Operating income | 10,980 | 10,589 | 33,980 | 29,021 |
Interest expense | (6,963) | (8,820) | (21,573) | (27,815) |
Hedge ineffectiveness | 12 | |||
Other income (expense) | (2) | (5) | (2) | |
Net gains (losses) on sale of assets | (92) | (1) | 15,873 | 31,773 |
Gains (losses) on extinguishment of debt | (572) | (558) | ||
Acquisition related debt extinguishment expenses | (2,781) | (2,781) | ||
Gains (losses) on TSRE merger | 641 | 732 | ||
Net income (loss): | 1,156 | 2,407 | 24,922 | 33,151 |
(Income) loss allocated to noncontrolling interest | (59) | (140) | (1,009) | (1,972) |
Net income (loss) allocable to common shares | $ 1,097 | $ 2,267 | $ 23,913 | $ 31,179 |
Earnings (loss) per share: | ||||
Basic | $ 0.02 | $ 0.05 | $ 0.34 | $ 0.66 |
Diluted | $ 0.02 | $ 0.05 | $ 0.34 | $ 0.66 |
Weighted-average shares: | ||||
Basic | 71,972,394 | 47,215,918 | 69,875,802 | 47,164,543 |
Diluted | 72,144,544 | 47,314,629 | 70,105,571 | 47,190,139 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 1,156 | $ 2,407 | $ 24,922 | $ 33,151 |
Other comprehensive income (loss): | ||||
Change in fair value of interest rate hedges | (14) | 217 | (424) | (990) |
Realized (gains) losses on interest rate hedges reclassified to earnings | (14) | 251 | 177 | 271 |
Total other comprehensive income | (28) | 468 | (247) | (719) |
Comprehensive income (loss) before allocation to noncontrolling interests | 1,128 | 2,875 | 24,675 | 32,432 |
Allocation to noncontrolling interests | (33) | (140) | (979) | (1,972) |
Comprehensive income (loss) | $ 1,095 | $ 2,735 | $ 23,696 | $ 30,460 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) - 9 months ended Sep. 30, 2017 - USD ($) $ in Thousands | Total | Common Shares | Additional Paid In Capital | Accumulated Other Comprehensive Income | Retained Earnings (Deficit) | Total Stockholders' Equity | Noncontrolling Interests |
Beginning Balance at Dec. 31, 2016 | $ 528,691 | $ 690 | $ 564,633 | $ 3,683 | $ (62,181) | $ 506,825 | $ 21,866 |
Beginning Balance (in Shares) at Dec. 31, 2016 | 68,996,070 | 68,996,070 | |||||
Net income | $ 24,922 | 23,913 | 23,913 | 1,009 | |||
Other comprehensive income | (247) | (217) | (217) | (30) | |||
Stock compensation expense | 1,548 | $ 1 | 1,547 | 1,548 | |||
Stock compensation expense (in Shares) | 168,010 | ||||||
Issuance of common shares | 125,707 | $ 144 | 125,563 | 125,707 | |||
Issuance of common shares (in Shares) | 14,375,000 | ||||||
Issuance of LP Units related to acquisitions | 1,654 | 1,654 | |||||
Repurchase of shares related to equity award tax withholding | (565) | $ (1) | (564) | (565) | |||
Repurchase of shares related to equity award tax withholding (in shares) | (60,377) | ||||||
Conversion of noncontrolling interest to common shares | $ 1 | 371 | 372 | (372) | |||
Conversion of noncontrolling interest to common shares (in Shares) | 39,899 | ||||||
Common dividends declared | (38,151) | (38,151) | (38,151) | ||||
Distribution to noncontrolling interest declared | (1,581) | (1,581) | |||||
Ending Balance at Sep. 30, 2017 | $ 641,978 | $ 835 | $ 691,550 | $ 3,466 | $ (76,419) | $ 619,432 | $ 22,546 |
Ending Balance (in shares) at Sep. 30, 2017 | 68,996,070 | 83,518,602 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 24,922 | $ 33,151 |
Adjustments to reconcile net income (loss) to cash flow from operating activities: | ||
Depreciation and amortization | 24,289 | 26,927 |
Amortization of deferred financing costs | 1,160 | 2,236 |
Stock compensation expense | 1,548 | 832 |
Net (gains) losses on sale of assets | (15,873) | (31,773) |
(Gains) losses on extinguishment of debt | 572 | 558 |
Acquisition related debt extinguishment expenses | 2,781 | |
(Gains) losses on TSRE merger | (732) | |
Changes in assets and liabilities: | ||
Accounts receivable and other assets | (1,931) | (1,377) |
Accounts payable and accrued expenses | 8,098 | 3,895 |
Accrued interest payable | (345) | (376) |
Other liabilities | (165) | (11) |
Net cash provided by operating activities | 45,056 | 33,330 |
Cash flows from investing activities: | ||
Disposition of real estate properties | 34,519 | 39,690 |
Acquisition of real estate properties | (169,156) | |
Capital expenditures | (10,100) | (8,039) |
(Increase) decrease in restricted cash | (1,147) | (2,615) |
Cash flow (used in) provided by investing activities | (145,884) | 29,036 |
Cash flows from financing activities: | ||
Proceeds from unsecured credit facility | 148,190 | 93,501 |
Unsecured credit facility repayments | (138,500) | (197,666) |
Proceeds from mortgages | 105,980 | |
Mortgage principal repayments | (1,969) | (44,532) |
Payments for deferred financing costs | (1,166) | (1,450) |
Proceeds from issuance of common stock | 125,707 | |
Distributions on common stock | (37,279) | (25,495) |
Distributions to noncontrolling interests | (1,573) | (1,615) |
Payments related to extinguishment of debt | (2,781) | |
Repurchase of shares related to equity award tax withholding | (565) | (143) |
Cash flow provided by (used in) financing activities | 90,064 | (71,420) |
Net change in cash and cash equivalents | (10,764) | (9,054) |
Cash and cash equivalents, beginning of period | 20,892 | 38,301 |
Cash and cash equivalents, end of the period | $ 10,128 | $ 29,247 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Organization | NOTE 1: Organization Independence Realty Trust, Inc., or IRT, was formed on March 26, 2009 as a Maryland corporation that has elected to be taxed as a real estate investment trust, or REIT, commencing with the taxable year ended December 31, 2011. As of September 30, 2017, we own and operate 50 multifamily apartment properties, totaling 13,729 units, across non-gateway U.S markets, including Louisville, Memphis, Atlanta and Raleigh. Our investment strategy is focused on gaining scale within key amenity rich submarkets that offer good school districts, high-quality retail and major employment centers. We aim to provide stockholders with attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return through distributions and capital appreciation. We own substantially all of our assets and conduct our operations through Independence Realty Operating Partnership, LP, which we refer to as IROP, of which we are the sole general partner. We became an internally managed REIT on December 20, 2016. Prior to that date, we were externally managed by a subsidiary of RAIT Financial Trust, or RAIT, a publicly traded Maryland REIT whose common shares are listed on the New York Stock Exchange under the symbol “RAS” (referred to as our former advisor). On December 20, 2016, we completed our management internalization, which was announced on September 27, 2016 as part of the agreement, or the internalization agreement, with RAIT and RAIT affiliates that provided for transactions which changed us from being externally managed to being internally managed and separated us from RAIT. The management internalization consisted of two parts: (i) our acquisition of our former advisor, which was a subsidiary of RAIT, and (ii) our acquisition of substantially all of the assets and the assumption of certain liabilities relating to the multifamily property management business of RAIT, including property management contracts relating to apartment properties owned by us, RAIT and third parties. Also, pursuant to the internalization agreement, on October 5, 2016, we repurchased all of the 7,269,719 shares of our common stock owned by certain of RAIT’s subsidiaries and retired these shares. As used herein, the terms “we,” “our” and “us” refer to Independence Realty Trust, Inc. and, as required by context, IROP and their subsidiaries. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
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, or 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, 2016 included in our Annual Report on Form 10-K, or the 2016 annual report. 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. 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 FASB Accounting Standards Codification Topic 810, “Consolidation”, IROP is considered a variable interest entity. 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 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 September 30, 2017 and December 31, 2016, we had $6,665 and $5,518, respectively, of restricted cash. f. Accounts Receivable and Allowance for Bad Debts We make estimates of the collectability of our accounts receivable related to base rents, expense reimbursements and other revenue. We analyze accounts receivable and historical bad debt levels, tenant credit worthiness and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. In addition, tenants experiencing financial difficulties are analyzed and estimates are made in connection with expected uncollectible receivables. Our reported operating results are affected by management’s estimate of the collectability of accounts receivable. For the three months ended September 30, 2017 and 2016, we recorded bad debt expense of $101 and $306, respectively. For the nine months ended September 30, 2017 and 2016, we recorded bad debt expense of $670 and $727, respectively. g. Investments in Real Estate Investments in real estate are recorded at cost less accumulated depreciation. 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 We account for acquisitions of properties that meet the definition of a business pursuant to Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 805, “Business Combinations”. The fair value of the real estate acquired is allocated to the acquired tangible assets, generally consisting of land, building and tenant improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases for acquired in-place leases and the value of tenant relationships, based in each case on their fair values. Purchase accounting is applied to assets and liabilities associated with the real estate acquired. Transaction costs and fees incurred related to an acquisition are expensed as incurred. Transaction costs and fees incurred related to the financing of an acquisition are capitalized and amortized over the life of the related financing. Upon the acquisition of properties, we estimate the fair value of acquired tangible assets (consisting of land, building and improvements) and 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. Based on these estimates, we allocate the initial purchase price to the applicable assets and liabilities. As final information regarding fair value of the assets acquired and liabilities assumed is received and estimates are refined, appropriate adjustments will be made to the purchase price allocation, in no case later than twelve months after the acquisition 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. During the three and nine months ended September 30, 2017, we acquired in-place leases with a value of $1,034 and $1,963, respectively, as part of related property acquisitions that are discussed further in Note 3. The value assigned to this intangible asset is amortized over the assumed lease up period, typically six months. For the three and nine months ended September 30, 2017, we recorded $416 and $664, respectively, of amortization expense for intangible assets. For the three and nine months ended September 30, 2016, we recorded $0 and $3,735, respectively, of amortization expense for intangible assets. As of September 30, 2017, we expect to record additional amortization expense on current in-place intangible assets of $795 for the remainder of 2017. 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 its 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 to ten years for equipment and fixtures. For the three and nine months ended September 30, 2017, we recorded $8,255 and $23,625 of depreciation expense, respectively. For the three and nine months ended September 30, 2016, we recorded $7,765 and $23,192 of depreciation expense, respectively. h. Revenue and Expenses Rental revenues are recognized on an accrual basis when due from residents. We primarily lease apartments units under operating leases generally with terms of one year or less. Rental payments are generally due monthly and recognized when earned. Rental income represents gross market rent less adjustments for concessions and vacancy loss. Tenant reimbursement income represents reimbursement from tenants for utility charges while other property income includes parking, trash, late fees, and other miscellaneous property related income. For the three and nine months ended September 30, 2017, we recognized revenues of $11 and $96, respectively, related to recoveries of lost rental revenue due to natural disasters and other insurable events from our insurance providers. For the three and nine months ended September 30, 2016, we recognized revenues of $38 and $151, respectively, related to recoveries of lost rental revenue due to natural disasters and other insurable events from our insurance providers. For the three and nine months ended September 30, 2017, we incurred $437 and $1,285 of advertising expenses, respectively. For the three and nine months ended September 30, 2016, we incurred $435 and $1,325 of advertising expenses, respectively. For the three months ended September 30, 2017 and 2016, we incurred $0 and $1,933 of asset management and incentive fees, respectively. For the nine months ended September 30, 2017 and 2016, we incurred $0 and $5,491 of asset management and incentive fees, respectively. Asset management and incentive fees are now included in general and administrative expenses since as an internally-managed REIT, we no longer incur external asset management fees and the compensation cost of our employees who now perform this function are recorded within general and administrative expenses. See Note 8: Related Party Transactions and Arrangements. For the three months ended September 30, 2017 and 2016, we incurred $1,328 and $1,219 of property management expenses, respectively. For the nine months ended September 30, 2017 and 2016, we incurred $4,310 and $3,710 of property management expenses, respectively. Subsequent to our management internalization, property management expenses include payroll and related expenses that directly support on-site property management. Prior to our management internalization, property management expenses included property and construction management fees paid to our former property manager. See Note 8: Related Party Transactions and Arrangements. i. 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 (including certain derivative instruments embedded in other contracts) 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), or for derivatives designated as cash flow hedges associated with debt for which we elected the fair value option under FASB ASC Topic 825, “Financial Instruments”, 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. j. 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. The availability of observable inputs can vary depending on the financial asset or liability and is affected by a wide variety of factors, including, for example, the type of investment, whether the investment is new, whether the investment is traded on an active exchange or in the secondary market, and the current market condition. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by us in determining fair value is greatest for instruments categorized in Level 3. Fair value is a market-based measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, our own assumptions are set to reflect those that management believes market participants would use in pricing the asset or liability at the measurement date. We use prices and inputs that management believes are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be transferred from Level 1 to Level 2 or Level 2 to Level 3. Fair value for certain of our Level 3 financial instruments is derived using internal valuation models. These internal valuation models include discounted cash flow analyses developed by management using current interest rates, estimates of the term of the particular instrument, specific issuer information and other market data for securities without an active market. In accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures”, the impact of our own credit spreads is also considered when measuring the fair value of financial assets or liabilities, including derivative contracts. Where appropriate, valuation adjustments are made to account for various factors, including bid-ask spreads, credit quality and market liquidity. These adjustments are applied on a consistent basis and are based on observable inputs where available. Management’s estimate of fair value requires significant management judgment and is subject to a high degree of variability based upon market conditions, the availability of specific issuer information and management’s assumptions. 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 our former secured credit facility 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. The following table summarizes the carrying amount and the fair value of our financial instruments as of the periods indicated: As of September 30, 2017 As of December 31, 2016 Financial Instrument Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets Cash and cash equivalents $ 10,128 $ 10,128 $ 20,892 $ 20,892 Restricted cash 6,665 6,665 5,518 5,518 Derivative assets 3,581 3,581 3,867 3,867 Liabilities Debt: Secured credit facility - - 147,280 150,000 Unsecured credit facility 157,163 159,690 - - Mortgages 574,462 565,954 596,537 588,523 k. 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. As of January 1, 2016, we adopted the accounting standard classified under FASB ASC Topic 835, “Interest” which required deferred financing costs to be presented on the balance sheet as a direct deduction from indebtedness. l. Income Taxes We have elected to be taxed as a REIT beginning with the taxable year ended December 31, 2011. Accordingly, we recorded no income tax expense for the three and nine months ended September 30, 2017 and 2016. 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. m. Recent Accounting Pronouncements Below is a brief description of recent accounting pronouncements that could have a material effect on our financial statements. Adopted Within these Financial Statements In March 2016, the FASB issued an accounting standard classified under FASB ASC Topic 718, “Compensation – Stock Compensation”. This accounting standard simplifies several aspects of the accounting for share-based payment award transactions, including: (i) income tax consequences; (ii) classification of awards as either equity or liabilities; and (iii) classification on the statement of cash flows. This standard is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The adoption of this accounting standard did not have a material impact on our consolidated financial statements. Not Yet Adopted Within these Financial Statements In May 2014, the FASB issued an accounting standard classified under FASB ASC Topic 606, “Revenue from Contracts with Customers”. This accounting standard generally replaces existing guidance by requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This accounting standard applies to all contracts with customers, except those that are within the scope of other Topics in the FASB ASC. During 2016, the FASB issued three amendments to this accounting standard which provide further clarification to this accounting standard. These standards amending FASB ASC Topic 606 are currently effective for annual reporting periods beginning after December 15, 2017. We are finalizing our evaluation of the impact that these standards may have on our consolidated financial statements however, a majority of our revenue is derived from real estate lease contracts which are specifically excluded from the scope of this standard. In February 2016, the FASB issued an accounting standard classified under FASB ASC Topic 842, “Leases”. This accounting standard amends lease accounting by requiring the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases on the balance sheet and disclosing key information about leasing arrangements. This standard is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in this standard is permitted. Management is currently evaluating the impact that this standard may have on our consolidated financial statements. In August 2016, the FASB issued an accounting standard classified under FASB ASC Topic 230, “Statement of Cash Flows”. This accounting standard provides guidance on eight specific cash flow issues: (i) debt prepayment or debt extinguishment costs; (ii) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (iii) contingent consideration payments made after a business combination; (iv) proceeds from the settlement of insurance claims; (v) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (vi) distributions received from equity method investees; (vii) beneficial interests in securitization transactions; and (viii) separately identifiable cash flows and application of the predominance principle. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Management is currently evaluating the impact that this standard may have on our consolidated statement of cash flows. In January 2017, the FASB issued an accounting standard update under FASB ASC Topic 805, “Business Combinations” that changes the definition of a business to assist entities with evaluating whether a set of transferred assets is a business. As a result, the accounting for acquisitions of real estate could be impacted. The updated standard will be effective for us on January 1, 2018 with early adoption permitted. The new definition will be applied prospectively to any transactions occurring within the period of adoption. Management expects that the updated standard will result in fewer acquisitions of real estate meeting the definition of a business and fewer acquisition-related costs being expensed in the period incurred. In May 2017, the FASB issued an accounting standard update under FASB ASC Topic 718, “Compensation – Stock Compensation.” The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. As a result, the accounting for share-based payment award transactions In August 2017, the FASB issued an accounting standard update under FASB ASC Topic 815, “Derivatives and Hedging.” The amendments in this update provide guidance about the application of the hedge accounting guidance in current GAAP based on the feedback received from preparers, auditors, and other stakeholders. As a result, the accounting for derivatives and hedging transac tions |
Investments in Real Estate
Investments in Real Estate | 9 Months Ended |
Sep. 30, 2017 | |
Banking And Thrift [Abstract] | |
Investments in Real Estate | NOTE 3: Investments in Real Estate As of September 30, 2017, our investments in real estate consisted of 50 apartment properties with 13,729 units. The table below summarizes our investments in real estate: As of September 30, 2017 As of December 31, 2016 Depreciable Lives (In years) Land $ 187,935 $ 165,120 — Building 1,211,985 1,066,611 40 Furniture, fixtures and equipment 27,137 17,625 5-10 Total investment in real estate $ 1,427,057 $ 1,249,356 Accumulated depreciation (75,084 ) (51,511 ) Investments in real estate, net $ 1,351,973 $ 1,197,845 As of September 30, 2017 and December 31, 2016, we had investments in real estate with a carrying value of $22,031 and $60,786, respectively, classified as held for sale. Acquisitions The below table summarizes the acquisitions for the nine months ended September 30, 2017: Property Name Date of Purchase Location Units (unaudited) Purchase Price Lakes of Northdale 2/27/2017 Tampa, FL 216 $ 29,750 Haverford Place 5/24/2017 Lexington, KY 160 $ 14,240 South Terrace (1) 6/30/2017 Durham, NC 328 $ 42,950 Cherry Grove (2) 9/26/2017 North Myrtle Beach, SC 172 $ 16,157 Riverchase (2) 9/26/2017 Indianapolis, IN 217 $ 18,899 Kensington (2) 9/26/2017 Canal Winchester, OH 264 $ 24,409 Schirm Farms (2) 9/26/2017 Canal Winchester, OH 264 $ 23,749 Total 1,621 $ 170,154 (1) This property was acquired from a joint venture of which our former advisor was a controlling member. See Note 8: Related Party Transactions and Arrangements. In conjunction with this acquisition, we issued IROP units to third parties that were members of the joint venture that owned the property. See Note 6: Shareholder Equity and Noncontrolling Interests. (2) These properties were acquired as the first phase of our acquisition of a nine-community portfolio, totaling 2,353 units, which we agreed to acquire on September 3, 2017 for a total purchase price of $228,144. In connection with the acquisition of these properties, we incurred defeasance costs totaling $ 2,781 The following table summarizes the aggregate fair value of the assets and liabilities associated with the properties acquired during the nine-month period ended September 30, 2017, on the date of acquisition, accounted for under FASB ASC Topic 805. Description Fair Value of Assets Acquired During the Nine-Month Period Ended September 30, 2017 Assets acquired: Investments in real estate $ 168,191 Accounts receivable and other assets $ 463 Intangible assets $ 1,963 Total assets acquired $ 170,617 Liabilities assumed: Accounts payable and accrued expenses $ 1,502 Other liabilities $ 490 Total liabilities assumed $ 1,992 Estimated fair value of net assets acquired $ 168,625 The table below presents the revenue and net income (loss) for the properties acquired during the nine-month period ended September 30, 2017 as reported in our consolidated financial statements, excluding any related acquisition and integration expenses. For the Three-Month Period Ended September 30, 2017 For the Nine-Month Period Ended September 30, 2017 Property Total revenue Net income (loss) allocable to common shares Total revenue Net income (loss) allocable to common shares Lakes of Northdale $ 789 $ 223 $ 1,829 $ 447 Haverford Place $ 452 $ 107 $ 637 $ 179 South Terrace $ 1,039 $ 198 $ 1,049 $ 203 Cherry Grove $ 26 $ 17 $ 26 $ 17 Riverchase $ 25 $ 13 $ 25 $ 13 Kensington $ 35 $ 25 $ 35 $ 25 Schirm Farms $ 35 $ 23 $ 35 $ 23 Total $ 2,401 $ 606 $ 3,636 $ 907 The table below represents the revenue, net income and earnings per share effect of the acquired property, as reported in our consolidated financial statements and on a pro forma basis as if the acquisition occurred on January 1, 2016. These pro forma results are not necessarily indicative of the results that actually would have occurred if the acquisition had occurred on January 1, 2016, nor does the pro forma financial information purport to represent the results of operations for future periods. Description For the Three-Month Period Ended September 30, 2017 For the Three-Month Period Ended September 30, 2016 For the Nine-Month Period Ended September 30, 2017 For the Nine-Month Period Ended September 30, 2016 Pro forma total revenue (unaudited) 43,421 42,695 128,834 128,350 Pro forma net income (loss) allocable to common shares (unaudited) 2,347 3,211 27,663 34,012 Earnings (loss) per share attributable to common shareholders: Basic-pro forma (unaudited) $ 0.03 $ 0.07 $ 0.40 $ 0.72 Diluted-pro forma (unaudited) $ 0.03 $ 0.07 $ 0.39 $ 0.72 We did not make any purchase price allocation adjustments during the nine-month period ended September 30, 2017. On October 25, 2017, we acquired a 264 unit residential community located in Baton Rouge, LA, known as Live Oak Trace, for $28,501. This acquisition was part of the nine-property portfolio acquisition announced on September 5, 2017. Dispositions The table below summarizes the dispositions for the nine months ended September 30, 2017 and also presents each property’s contribution to net income (loss) allocable to common shares, excluding the impact of the gain (loss) on sale: Net income (loss) allocable to common shares Property Name Date of Sale Sale Price Gain (loss) on sale (1) For the Three Months Ended September 30, 2017 For the Nine Months Ended September 30, 2017 Copper Mill 5/5/2017 $ 32,000 $ 15,616 $ (3 ) $ 794 Heritage Trace 6/1/2017 11,600 (1,237 ) (3 ) 477 Berkshire 6/9/2017 16,000 1,579 (33 ) 457 Total $ 59,600 $ 15,958 $ (39 ) $ 1,728 (1) The gain (loss) on sale for these properties is net of $2,748 of defeasance costs. All properties were previously classified as held for sale. |
Indebtedness
Indebtedness | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Indebtedness | NOTE 4: Indebtedness The following tables contain summary information concerning our indebtedness as of September 30, 2017: Debt: Outstanding Principal Unamortized Discount and Debt Issuance Costs Carrying Amount Type Weighted Average Rate Weighted Average Maturity (in years) Unsecured credit facility (1)(2) $ 159,690 $ (2,527 ) $ 157,163 Floating 2.7% 3.9 Mortgages-Fixed rate 577,632 (3,170 ) 574,462 Fixed 3.7% 6.0 Total Debt $ 737,322 $ (5,697 ) $ 731,625 3.5% 5.6 (1) The unsecured credit facility total capacity is $300,000, of which $159,690 was outstanding as of September 30, 2017. (2) As of September 30, 2017, IRT maintained a float-to-fixed interest rate swap with a $150,000 notional amount. This swap, which expires on June 17, 2021 and has a fixed rate of 1.1325%, has converted $150,000 of our floating rate debt to fixed rate debt. Original maturities on or before December 31, Debt: 2017 2018 2019 2020 2021 Thereafter Unsecured credit facility $ - $ - $ - $ - $ 109,690 $ 50,000 Mortgages-Fixed rate 685 3,245 4,660 7,611 102,597 458,834 Total $ 685 $ 3,245 $ 4,660 $ 7,611 $ 212,287 $ 508,834 As of September 30, 2017, we were in compliance with all financial covenants contained in our indebtedness. The following table contains summary information concerning our indebtedness as of December 31, 2016: Debt: Outstanding Principal Unamortized Discount and Debt Issuance Costs Carrying Amount Type Weighted Average Rate Weighted Average Maturity (in years) Secured credit facility (1) $ 150,000 $ (2,720 ) $ 147,280 Floating 3.0% 1.7 Mortgages-Fixed rate 600,188 (3,651 ) 596,537 Fixed 3.8% 6.7 Total Debt $ 750,188 $ (6,371 ) $ 743,817 3.6% 5.7 (1) The secured credit facility total capacity was $312,500, of which $150,000 was outstanding as of December 31, 2016. In February 2017, IROP drew down $22,000 on the secured credit facility in connection with the Lakes of Northdale acquisition. On May 1, 2017, we closed on a new $300,000 unsecured credit facility, refinancing and terminating the previous secured credit facility. The new facility is comprised of a $50,000 term loan and a revolving commitment of up to $250,000. The maturity date on the new term loan is May 1, 2022, and the maturity date on borrowings outstanding under the revolving commitment is May 1, 2021, extending the September 17, 2018 maturity of the previous secured credit facility. Based on our current leverage levels, our annual interest cost is LIBOR plus 145 basis points under the term loan and LIBOR plus 150 basis points for borrowings outstanding under the revolving commitments. We recognized the refinance as a partial extinguishment of our prior secured credit facility and recognized a loss on extinguishment of debt of $572. In May 2017, IROP drew down $9,000 on the unsecured credit facility in connection with the Haverford Place acquisition. In June 2017, IROP drew down $31,250 on the unsecured credit facility in connection with the South Terrace acquisition. In September 2017, IROP (1) paid down $117,500 on the unsecured credit facility using proceeds from the common stock offering on September 11, 2017, which is discussed in Note 6: Shareholders Equity, and (2) drew down $85,000 in connection with the four properties acquired on September 26, 2017. In connection with the three property dispositions during the nine months ended September 30, 2017, we extinguished, through defeasance, property mortgages totaling $20,586. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 5: Derivative Financial 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. Interest Rate Swaps and Caps We have entered into an interest rate cap contract and an interest rate swap contract to hedge interest rate exposure on floating rate indebtedness. On June 24, 2016, we entered into an interest rate swap contract with a notional value of $150,000, a strike rate of 1.145% and a maturity date of June 17, 2021. We designated this interest rate swap as a cash flow hedge at inception and determined that the hedge is highly effective in offsetting interest rate fluctuations associated with the identified indebtedness. We did not recognize any ineffectiveness associated with this cash flow hedge through April 2017. On April 17, 2017, in conjunction with the refinance of our credit facility, we restructured our existing interest rate swap to remove the LIBOR floor. This resulted in a decrease in the strike rate to 1.1325%. The notional value and maturity date remained the same. We designated the restructured interest rate swap as a cash flow hedge at inception and determined that the hedge is highly effective in offsetting interest rate fluctuations associated with the identified indebtedness. However, since the fair value of the swap at inception of the hedging relationship was not zero, we expect some ineffectiveness to be recognized over the life of the instrument. During the three and nine months ended September 30, 2017, we recognized $(12) and $0 of ineffectiveness based on the hypothetical derivative method. Our interest rate cap is not designated as a cash flow hedge. The following table summarizes the aggregate notional amount and estimated net fair value of our derivative instruments as of September 30, 2017 and December 31, 2016: As of September 30, 2017 As of December 31, 2016 Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities Cash flow hedges: Interest rate swap $ 150,000 $ 3,581 $ — $ 150,000 $ 3,867 $ — Freestanding derivatives: Interest rate cap 200,000 — — 200,000 — — Net fair value $ 350,000 $ 3,581 $ — $ 350,000 $ 3,867 $ — Effective interest rate swaps and caps are reported in accumulated other comprehensive income, and the fair value of these hedge agreements is included in other assets or other liabilities. For our interest rate swap that is considered a highly effective hedge, we reclassified realized gains of $27 and losses of $156 to earnings within interest expense for the three and nine months ended September 30, 2017, respectively, and we expect $471 to be reclassified out of accumulated other comprehensive income to earnings over the next 12 months. |
Shareholder Equity and Noncontr
Shareholder Equity and Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Shareholder Equity and Noncontrolling Interests | NOTE 6: Shareholder Equity and Noncontrolling Interests Stockholder Equity Our board of directors has declared the following dividends in 2017: Month Declaration Date Record Date Payment Date Dividend Declared Per Share January 2017 January 12, 2017 January 31, 2017 February 15, 2017 $ 0.06 February 2017 January 12, 2017 February 28, 2017 March 15, 2017 $ 0.06 March 2017 January 12, 2017 March 31, 2017 April 17, 2017 $ 0.06 April 2017 April 12, 2017 April 28, 2017 May 15, 2017 $ 0.06 May 2017 April 12, 2017 May 31, 2017 June 15, 2017 $ 0.06 June 2017 April 12, 2017 June 30, 2017 July 17, 2017 $ 0.06 July 2017 July 14, 2017 July 31, 2017 August 15, 2017 $ 0.06 August 2017 July 14, 2017 August 31, 2017 September 15, 2017 $ 0.06 September 2017 July 14, 2017 September 29, 2017 October 13, 2017 $ 0.06 October 2017 October 12, 2017 October 31, 2017 November 15, 2017 $ 0.06 November 2017 October 12, 2017 November 30, 2017 December 15, 2017 $ 0.06 December 2017 October 12, 2017 December 29, 2017 January 15, 2018 $ 0.06 Common Shares During the three and nine months ended September 30, 2017, we also paid $0 and $126, respectively, of dividends on restricted common share awards that vested during the period. On August 4, 2017, we entered into an At-the-Market Issuance Sales Agreement (the “Sales Agreement”) with various sales agents. Pursuant to the Sales Agreement, we may offer and sell shares of our common stock, $0.01 par value per share, having an aggregate offering price of up to $150,000, from time to time through the sales agents. The sales agents are entitled to compensation in an agreed amount not to exceed 2.0% of the gross sales price per share for any shares sold from time to time under the Sales Agreement. We have no obligation to sell any of the shares under the Sales Agreement and may at any time suspend solicitations and offers under the Sales Agreement. No shares were issued pursuant to the Sales Agreement as of September 30, 2017. On September 11, 2017, we issued 12,500,000 shares of our common stock at a public offering price of $9.25 per share. We also closed on the underwriters’ option to purchase an additional 1,875,000 shares of common stock at the public offering price. As a result of the offering and exercise or the underwriters’ option, we received approximately $126,100 in net proceeds, after deducting the underwriting discount and offering expenses. Noncontrolling Interest In June 2017, we issued 166,604 IROP units in connection with our acquisition of South Terrace. The IROP units were valued at $1,654 based on the price of our common stock. See Note 3: Investments in Real Estate for details on the property acquisition. As of September 30, 2017, 3,035,654 IROP units held by unaffiliated third parties remain outstanding with a redemption value of $30,873, based on IRT’s stock price of $10.17 as of September 29, 2017. Our board of directors has declared the following distributions on IROP’s LP units in 2017: Month Declaration Date Record Date Payment Date Dividend Declared Per Share January 2017 January 12, 2017 January 31, 2017 February 15, 2017 $ 0.06 February 2017 January 12, 2017 February 28, 2017 March 15, 2017 $ 0.06 March 2017 January 12, 2017 March 31, 2017 April 17, 2017 $ 0.06 April 2017 April 12, 2017 April 28, 2017 May 15, 2017 $ 0.06 May 2017 April 12, 2017 May 31, 2017 June 15, 2017 $ 0.06 June 2017 April 12, 2017 June 30, 2017 July 17, 2017 $ 0.06 July 2017 July 14, 2017 July 31, 2017 August 15, 2017 $ 0.06 August 2017 July 14, 2017 August 31, 2017 September 15, 2017 $ 0.06 September 2017 July 14, 2017 September 29, 2017 October 13, 2017 $ 0.06 October 2017 October 12, 2017 October 31, 2017 November 15, 2017 $ 0.06 November 2017 October 12, 2017 November 30, 2017 December 15, 2017 $ 0.06 December 2017 October 12, 2017 December 29, 2017 January 15, 2018 $ 0.06 |
Equity Compensation Plans
Equity Compensation Plans | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Compensation Plans | NOTE 7: Equity Compensation Plans Long Term Incentive Plan In May 2016, our shareholders approved and our board of directors adopted an amended and restated Long Term Incentive Plan, or the incentive plan, which provides for the grants of awards to our directors, officers and full-time employees, full-time employees of our former advisor and its affiliates, full-time employees of entities that provide services to our former advisor, directors of our former advisor or of entities that provide services to it, certain of our consultants and certain consultants to our former advisor and its affiliates or to entities that provide services to our former advisor. The incentive plan authorizes the grant of restricted or unrestricted shares of our common stock, non-qualified and incentive stock options, restricted stock units, stock appreciation rights, dividend equivalents and other stock- or cash-based awards. In conjunction with the amendment, the number of shares of common stock issuable under the incentive plan was increased to 4,300,000 shares, and the term of the incentive plan was extended to May 12, 2026. Under the incentive plan or predecessor incentive plans, we granted restricted shares and stock appreciation rights, or SARs, to our employees and employees of our former advisor. These awards generally vested over a three-year period. In addition, we granted unrestricted shares to our directors. These awards generally vested immediately. On February 28, 2017, our compensation committee awarded 143,180 restricted stock awards, valued at $9.19 per share, or $1,316 in the aggregate. The restricted stock awards vest over a three-year period except for 6,585 awards that vested immediately. In addition, our compensation committee awarded performance share units, or PSUs, to eligible officers under a newly adopted 2017 Annual Equity Award Program pursuant to the incentive plan. The number of PSUs awarded will be based on attainment of certain performance criteria over a three-year period, with 226,469 PSUs granted for achieving the maximum performance criteria. The aggregate grant date fair value of the PSUs was $1,076. On May 16, 2017, our compensation committee granted stock under the incentive plan such that our independent directors received an aggregate of 24,830 shares of our common stock, valued at $225 using our closing stock price of $9.06. These awards vested immediately. |
Related Party Transactions and
Related Party Transactions and Arrangements | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Arrangements | NOTE 8: Related Party Transactions and Arrangements Fees and Expenses Paid to Our Former Advisor On December 20, 2016, in connection with our management internalization, we acquired our former advisor and, therefore, fees and expenses to our former advisor are no longer incurred. For the three months ended September 30, 2017 and 2016, our former advisor earned $0 and $1,727 of asset management fees, respectively, and $0 and $5,141 for the nine months ended September 30, 2017 and 2016, respectively. These fees are included within general and administrative expenses in our consolidated statements of operations. For the three months ended September 30, 2017 and 2016, our former advisor earned $0 and $206 of incentive fees, respectively, and $0 and $350 for the nine months ended September 30, 2017 and 2016, respectively. These fees are included within general and administrative expenses in our consolidated statements of operations. For the nine months ended September 30, 2017 and 2016, we incurred costs of $727 and $0, respectively, with respect to our shared services agreement with our former advisor. The term of the agreement was from December 21, 2016 to June 20, 2017 and the associated fees are included within general and administrative expenses in our consolidated statements of operations. As of September 30, 2017 and December 31, 2016, we had no liabilities payable to our former advisor for asset management fees, incentive fees or shared service fees. Property Management Fees Paid to Our Former Property Manager On December 20, 2016, in connection with our management internalization, we acquired property management agreements with respect to each of our properties from RAIT Residential, our former property manager, which is wholly owned by RAIT. For the three months ended September 30, 2017 and 2016, our former property manager earned $0 and $1,219, respectively, and $0 and $3,710 for the nine months ended September 30, 2017 and 2016, respectively, of property management and leasing fees. As of September 30, 2017 and December 31, 2016, we had no liabilities payable to our property manager for property management and leasing fees. Dividends Paid to Affiliates of Our Former Advisor On October 5, 2016, we repurchased and retired all 7,269,719 shares of our common stock owned by subsidiaries of RAIT. Since October 5, 2016, RAIT has not owned any shares of our common stock. For the three months ended September 30, 2017 and 2016, we declared and subsequently paid dividends of $0 and $1,309, respectively, and $0 and $3,926 for the nine months ended September 30, 2017 and 2016, respectively, related to shares of common stock owned by subsidiaries of RAIT. RAIT Indebtedness In the second quarter of 2016, we repaid $ 38,075 Related Party Transaction In June 2017, we acquired South Terrace, a 328-unit property in Durham, NC for $42,950 from a joint venture, of which a subsidiary of RAIT was a controlling member. For further information, see Note 3: Investment in Real Estate. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | NOTE 9: Earnings (Loss) Per Share The following table presents a reconciliation of basic and diluted earnings (loss) per share for the three and nine months ended September 30, 2017 and 2016: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Net income (loss) $ 1,156 $ 2,407 $ 24,922 $ 33,151 (Income) loss allocated to non-controlling interests (59 ) (140 ) (1,009 ) (1,972 ) Net income (loss) allocable to common shares 1,097 2,267 23,913 31,179 Weighted-average shares outstanding—Basic 71,972,394 47,215,918 69,875,802 47,164,543 Weighted-average shares outstanding—Diluted 72,144,544 47,314,629 70,105,571 47,190,139 Earnings (loss) per share—Basic $ 0.02 $ 0.05 $ 0.34 $ 0.66 Earnings (loss) per share—Diluted $ 0.02 $ 0.05 $ 0.34 $ 0.66 Certain IROP units, stock appreciation rights, or SARs, and unvested shares were excluded from the earnings (loss) per share computation because their effect would have been anti-dilutive, totaling 3,035,654 for the three and nine months ended September 30, 2017, and 2,915,008 and 3,091,380 for the three and nine months ended September 30, 2016, respectively. |
Other Disclosures
Other Disclosures | 9 Months Ended |
Sep. 30, 2017 | |
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. Other Matters To the extent that a natural disaster or similar event occurs with more than a remote risk of having a material impact on the consolidated financial statements, we will disclose the estimated range of possible outcomes, and, if an outcome is probable, accrue an appropriate liability. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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, or 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, 2016 included in our Annual Report on Form 10-K, or the 2016 annual report. 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. |
Principles of Consolidation | 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 FASB Accounting Standards Codification Topic 810, “Consolidation”, IROP is considered a variable interest entity. 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 | 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. |
Cash and Cash Equivalents | d. Cash and Cash Equivalents Cash and cash equivalents include cash held in banks and highly liquid investments with 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 | 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 September 30, 2017 and December 31, 2016, we had $6,665 and $5,518, respectively, of restricted cash. |
Accounts Receivable and Allowance for Bad Debts | f. Accounts Receivable and Allowance for Bad Debts We make estimates of the collectability of our accounts receivable related to base rents, expense reimbursements and other revenue. We analyze accounts receivable and historical bad debt levels, tenant credit worthiness and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. In addition, tenants experiencing financial difficulties are analyzed and estimates are made in connection with expected uncollectible receivables. Our reported operating results are affected by management’s estimate of the collectability of accounts receivable. For the three months ended September 30, 2017 and 2016, we recorded bad debt expense of $101 and $306, respectively. For the nine months ended September 30, 2017 and 2016, we recorded bad debt expense of $670 and $727, respectively. |
Investments in Real Estate | g. Investments in Real Estate Investments in real estate are recorded at cost less accumulated depreciation. 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 We account for acquisitions of properties that meet the definition of a business pursuant to Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 805, “Business Combinations”. The fair value of the real estate acquired is allocated to the acquired tangible assets, generally consisting of land, building and tenant improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases for acquired in-place leases and the value of tenant relationships, based in each case on their fair values. Purchase accounting is applied to assets and liabilities associated with the real estate acquired. Transaction costs and fees incurred related to an acquisition are expensed as incurred. Transaction costs and fees incurred related to the financing of an acquisition are capitalized and amortized over the life of the related financing. Upon the acquisition of properties, we estimate the fair value of acquired tangible assets (consisting of land, building and improvements) and 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. Based on these estimates, we allocate the initial purchase price to the applicable assets and liabilities. As final information regarding fair value of the assets acquired and liabilities assumed is received and estimates are refined, appropriate adjustments will be made to the purchase price allocation, in no case later than twelve months after the acquisition 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. During the three and nine months ended September 30, 2017, we acquired in-place leases with a value of $1,034 and $1,963, respectively, as part of related property acquisitions that are discussed further in Note 3. The value assigned to this intangible asset is amortized over the assumed lease up period, typically six months. For the three and nine months ended September 30, 2017, we recorded $416 and $664, respectively, of amortization expense for intangible assets. For the three and nine months ended September 30, 2016, we recorded $0 and $3,735, respectively, of amortization expense for intangible assets. As of September 30, 2017, we expect to record additional amortization expense on current in-place intangible assets of $795 for the remainder of 2017. 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 its 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 to ten years for equipment and fixtures. For the three and nine months ended September 30, 2017, we recorded $8,255 and $23,625 of depreciation expense, respectively. For the three and nine months ended September 30, 2016, we recorded $7,765 and $23,192 of depreciation expense, respectively. |
Revenue and Expenses | h. Revenue and Expenses Rental revenues are recognized on an accrual basis when due from residents. We primarily lease apartments units under operating leases generally with terms of one year or less. Rental payments are generally due monthly and recognized when earned. Rental income represents gross market rent less adjustments for concessions and vacancy loss. Tenant reimbursement income represents reimbursement from tenants for utility charges while other property income includes parking, trash, late fees, and other miscellaneous property related income. For the three and nine months ended September 30, 2017, we recognized revenues of $11 and $96, respectively, related to recoveries of lost rental revenue due to natural disasters and other insurable events from our insurance providers. For the three and nine months ended September 30, 2016, we recognized revenues of $38 and $151, respectively, related to recoveries of lost rental revenue due to natural disasters and other insurable events from our insurance providers. For the three and nine months ended September 30, 2017, we incurred $437 and $1,285 of advertising expenses, respectively. For the three and nine months ended September 30, 2016, we incurred $435 and $1,325 of advertising expenses, respectively. For the three months ended September 30, 2017 and 2016, we incurred $0 and $1,933 of asset management and incentive fees, respectively. For the nine months ended September 30, 2017 and 2016, we incurred $0 and $5,491 of asset management and incentive fees, respectively. Asset management and incentive fees are now included in general and administrative expenses since as an internally-managed REIT, we no longer incur external asset management fees and the compensation cost of our employees who now perform this function are recorded within general and administrative expenses. See Note 8: Related Party Transactions and Arrangements. For the three months ended September 30, 2017 and 2016, we incurred $1,328 and $1,219 of property management expenses, respectively. For the nine months ended September 30, 2017 and 2016, we incurred $4,310 and $3,710 of property management expenses, respectively. Subsequent to our management internalization, property management expenses include payroll and related expenses that directly support on-site property management. Prior to our management internalization, property management expenses included property and construction management fees paid to our former property manager. See Note 8: Related Party Transactions and Arrangements. |
Derivative Instruments | i. 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 (including certain derivative instruments embedded in other contracts) 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), or for derivatives designated as cash flow hedges associated with debt for which we elected the fair value option under FASB ASC Topic 825, “Financial Instruments”, 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 | j. 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. The availability of observable inputs can vary depending on the financial asset or liability and is affected by a wide variety of factors, including, for example, the type of investment, whether the investment is new, whether the investment is traded on an active exchange or in the secondary market, and the current market condition. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by us in determining fair value is greatest for instruments categorized in Level 3. Fair value is a market-based measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, our own assumptions are set to reflect those that management believes market participants would use in pricing the asset or liability at the measurement date. We use prices and inputs that management believes are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be transferred from Level 1 to Level 2 or Level 2 to Level 3. Fair value for certain of our Level 3 financial instruments is derived using internal valuation models. These internal valuation models include discounted cash flow analyses developed by management using current interest rates, estimates of the term of the particular instrument, specific issuer information and other market data for securities without an active market. In accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures”, the impact of our own credit spreads is also considered when measuring the fair value of financial assets or liabilities, including derivative contracts. Where appropriate, valuation adjustments are made to account for various factors, including bid-ask spreads, credit quality and market liquidity. These adjustments are applied on a consistent basis and are based on observable inputs where available. Management’s estimate of fair value requires significant management judgment and is subject to a high degree of variability based upon market conditions, the availability of specific issuer information and management’s assumptions. 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 our former secured credit facility 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. The following table summarizes the carrying amount and the fair value of our financial instruments as of the periods indicated: As of September 30, 2017 As of December 31, 2016 Financial Instrument Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets Cash and cash equivalents $ 10,128 $ 10,128 $ 20,892 $ 20,892 Restricted cash 6,665 6,665 5,518 5,518 Derivative assets 3,581 3,581 3,867 3,867 Liabilities Debt: Secured credit facility - - 147,280 150,000 Unsecured credit facility 157,163 159,690 - - Mortgages 574,462 565,954 596,537 588,523 |
Deferred Financing Costs | k. 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. As of January 1, 2016, we adopted the accounting standard classified under FASB ASC Topic 835, “Interest” which required deferred financing costs to be presented on the balance sheet as a direct deduction from indebtedness. |
Income Taxes | l. Income Taxes We have elected to be taxed as a REIT beginning with the taxable year ended December 31, 2011. Accordingly, we recorded no income tax expense for the three and nine months ended September 30, 2017 and 2016. 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. |
Recent Accounting Pronouncements | m. Recent Accounting Pronouncements Below is a brief description of recent accounting pronouncements that could have a material effect on our financial statements. Adopted Within these Financial Statements In March 2016, the FASB issued an accounting standard classified under FASB ASC Topic 718, “Compensation – Stock Compensation”. This accounting standard simplifies several aspects of the accounting for share-based payment award transactions, including: (i) income tax consequences; (ii) classification of awards as either equity or liabilities; and (iii) classification on the statement of cash flows. This standard is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The adoption of this accounting standard did not have a material impact on our consolidated financial statements. Not Yet Adopted Within these Financial Statements In May 2014, the FASB issued an accounting standard classified under FASB ASC Topic 606, “Revenue from Contracts with Customers”. This accounting standard generally replaces existing guidance by requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This accounting standard applies to all contracts with customers, except those that are within the scope of other Topics in the FASB ASC. During 2016, the FASB issued three amendments to this accounting standard which provide further clarification to this accounting standard. These standards amending FASB ASC Topic 606 are currently effective for annual reporting periods beginning after December 15, 2017. We are finalizing our evaluation of the impact that these standards may have on our consolidated financial statements however, a majority of our revenue is derived from real estate lease contracts which are specifically excluded from the scope of this standard. In February 2016, the FASB issued an accounting standard classified under FASB ASC Topic 842, “Leases”. This accounting standard amends lease accounting by requiring the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases on the balance sheet and disclosing key information about leasing arrangements. This standard is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in this standard is permitted. Management is currently evaluating the impact that this standard may have on our consolidated financial statements. In August 2016, the FASB issued an accounting standard classified under FASB ASC Topic 230, “Statement of Cash Flows”. This accounting standard provides guidance on eight specific cash flow issues: (i) debt prepayment or debt extinguishment costs; (ii) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (iii) contingent consideration payments made after a business combination; (iv) proceeds from the settlement of insurance claims; (v) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (vi) distributions received from equity method investees; (vii) beneficial interests in securitization transactions; and (viii) separately identifiable cash flows and application of the predominance principle. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Management is currently evaluating the impact that this standard may have on our consolidated statement of cash flows. In January 2017, the FASB issued an accounting standard update under FASB ASC Topic 805, “Business Combinations” that changes the definition of a business to assist entities with evaluating whether a set of transferred assets is a business. As a result, the accounting for acquisitions of real estate could be impacted. The updated standard will be effective for us on January 1, 2018 with early adoption permitted. The new definition will be applied prospectively to any transactions occurring within the period of adoption. Management expects that the updated standard will result in fewer acquisitions of real estate meeting the definition of a business and fewer acquisition-related costs being expensed in the period incurred. In May 2017, the FASB issued an accounting standard update under FASB ASC Topic 718, “Compensation – Stock Compensation.” The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. As a result, the accounting for share-based payment award transactions In August 2017, the FASB issued an accounting standard update under FASB ASC Topic 815, “Derivatives and Hedging.” The amendments in this update provide guidance about the application of the hedge accounting guidance in current GAAP based on the feedback received from preparers, auditors, and other stakeholders. As a result, the accounting for derivatives and hedging transac tions |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Carrying Amount and Fair Value of Financial Instrument | 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. The following table summarizes the carrying amount and the fair value of our financial instruments as of the periods indicated: As of September 30, 2017 As of December 31, 2016 Financial Instrument Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets Cash and cash equivalents $ 10,128 $ 10,128 $ 20,892 $ 20,892 Restricted cash 6,665 6,665 5,518 5,518 Derivative assets 3,581 3,581 3,867 3,867 Liabilities Debt: Secured credit facility - - 147,280 150,000 Unsecured credit facility 157,163 159,690 - - Mortgages 574,462 565,954 596,537 588,523 |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Banking And Thrift [Abstract] | |
Summary of Investments in Real Estate | The table below summarizes our investments in real estate: As of September 30, 2017 As of December 31, 2016 Depreciable Lives (In years) Land $ 187,935 $ 165,120 — Building 1,211,985 1,066,611 40 Furniture, fixtures and equipment 27,137 17,625 5-10 Total investment in real estate $ 1,427,057 $ 1,249,356 Accumulated depreciation (75,084 ) (51,511 ) Investments in real estate, net $ 1,351,973 $ 1,197,845 |
Summary of Acquisitions | The below table summarizes the acquisitions for the nine months ended September 30, 2017: Property Name Date of Purchase Location Units (unaudited) Purchase Price Lakes of Northdale 2/27/2017 Tampa, FL 216 $ 29,750 Haverford Place 5/24/2017 Lexington, KY 160 $ 14,240 South Terrace (1) 6/30/2017 Durham, NC 328 $ 42,950 Cherry Grove (2) 9/26/2017 North Myrtle Beach, SC 172 $ 16,157 Riverchase (2) 9/26/2017 Indianapolis, IN 217 $ 18,899 Kensington (2) 9/26/2017 Canal Winchester, OH 264 $ 24,409 Schirm Farms (2) 9/26/2017 Canal Winchester, OH 264 $ 23,749 Total 1,621 $ 170,154 (1) This property was acquired from a joint venture of which our former advisor was a controlling member. See Note 8: Related Party Transactions and Arrangements. In conjunction with this acquisition, we issued IROP units to third parties that were members of the joint venture that owned the property. See Note 6: Shareholder Equity and Noncontrolling Interests. (2) These properties were acquired as the first phase of our acquisition of a nine-community portfolio, totaling 2,353 units, which we agreed to acquire on September 3, 2017 for a total purchase price of $228,144. In connection with the acquisition of these properties, we incurred defeasance costs totaling $ 2,781 |
Summary of Fair Value of Assets and Liabilities | The following table summarizes the aggregate fair value of the assets and liabilities associated with the properties acquired during the nine-month period ended September 30, 2017, on the date of acquisition, accounted for under FASB ASC Topic 805. Description Fair Value of Assets Acquired During the Nine-Month Period Ended September 30, 2017 Assets acquired: Investments in real estate $ 168,191 Accounts receivable and other assets $ 463 Intangible assets $ 1,963 Total assets acquired $ 170,617 Liabilities assumed: Accounts payable and accrued expenses $ 1,502 Other liabilities $ 490 Total liabilities assumed $ 1,992 Estimated fair value of net assets acquired $ 168,625 |
Pro Forma of Financial Information Purport to Represent Results of Operations for Future Periods | The table below presents the revenue and net income (loss) for the properties acquired during the nine-month period ended September 30, 2017 as reported in our consolidated financial statements, excluding any related acquisition and integration expenses. For the Three-Month Period Ended September 30, 2017 For the Nine-Month Period Ended September 30, 2017 Property Total revenue Net income (loss) allocable to common shares Total revenue Net income (loss) allocable to common shares Lakes of Northdale $ 789 $ 223 $ 1,829 $ 447 Haverford Place $ 452 $ 107 $ 637 $ 179 South Terrace $ 1,039 $ 198 $ 1,049 $ 203 Cherry Grove $ 26 $ 17 $ 26 $ 17 Riverchase $ 25 $ 13 $ 25 $ 13 Kensington $ 35 $ 25 $ 35 $ 25 Schirm Farms $ 35 $ 23 $ 35 $ 23 Total $ 2,401 $ 606 $ 3,636 $ 907 Description For the Three-Month Period Ended September 30, 2017 For the Three-Month Period Ended September 30, 2016 For the Nine-Month Period Ended September 30, 2017 For the Nine-Month Period Ended September 30, 2016 Pro forma total revenue (unaudited) 43,421 42,695 128,834 128,350 Pro forma net income (loss) allocable to common shares (unaudited) 2,347 3,211 27,663 34,012 Earnings (loss) per share attributable to common shareholders: Basic-pro forma (unaudited) $ 0.03 $ 0.07 $ 0.40 $ 0.72 Diluted-pro forma (unaudited) $ 0.03 $ 0.07 $ 0.39 $ 0.72 |
Summary of Disposition of Property's | The table below summarizes the dispositions for the nine months ended September 30, 2017 and also presents each property’s contribution to net income (loss) allocable to common shares, excluding the impact of the gain (loss) on sale: Net income (loss) allocable to common shares Property Name Date of Sale Sale Price Gain (loss) on sale (1) For the Three Months Ended September 30, 2017 For the Nine Months Ended September 30, 2017 Copper Mill 5/5/2017 $ 32,000 $ 15,616 $ (3 ) $ 794 Heritage Trace 6/1/2017 11,600 (1,237 ) (3 ) 477 Berkshire 6/9/2017 16,000 1,579 (33 ) 457 Total $ 59,600 $ 15,958 $ (39 ) $ 1,728 (1) The gain (loss) on sale for these properties is net of $2,748 of defeasance costs. All properties were previously classified as held for sale. |
Indebtedness (Tables)
Indebtedness (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Summary Information Concerning Indebtedness | The following tables contain summary information concerning our indebtedness as of September 30, 2017: Debt: Outstanding Principal Unamortized Discount and Debt Issuance Costs Carrying Amount Type Weighted Average Rate Weighted Average Maturity (in years) Unsecured credit facility (1)(2) $ 159,690 $ (2,527 ) $ 157,163 Floating 2.7% 3.9 Mortgages-Fixed rate 577,632 (3,170 ) 574,462 Fixed 3.7% 6.0 Total Debt $ 737,322 $ (5,697 ) $ 731,625 3.5% 5.6 (1) The unsecured credit facility total capacity is $300,000, of which $159,690 was outstanding as of September 30, 2017. (2) As of September 30, 2017, IRT maintained a float-to-fixed interest rate swap with a $150,000 notional amount. This swap, which expires on June 17, 2021 and has a fixed rate of 1.1325%, has converted $150,000 of our floating rate debt to fixed rate debt. Original maturities on or before December 31, Debt: 2017 2018 2019 2020 2021 Thereafter Unsecured credit facility $ - $ - $ - $ - $ 109,690 $ 50,000 Mortgages-Fixed rate 685 3,245 4,660 7,611 102,597 458,834 Total $ 685 $ 3,245 $ 4,660 $ 7,611 $ 212,287 $ 508,834 As of September 30, 2017, we were in compliance with all financial covenants contained in our indebtedness. The following table contains summary information concerning our indebtedness as of December 31, 2016: Debt: Outstanding Principal Unamortized Discount and Debt Issuance Costs Carrying Amount Type Weighted Average Rate Weighted Average Maturity (in years) Secured credit facility (1) $ 150,000 $ (2,720 ) $ 147,280 Floating 3.0% 1.7 Mortgages-Fixed rate 600,188 (3,651 ) 596,537 Fixed 3.8% 6.7 Total Debt $ 750,188 $ (6,371 ) $ 743,817 3.6% 5.7 (1) The secured credit facility total capacity was $312,500, of which $150,000 was outstanding as of December 31, 2016. |
Derivative Financial Instrume22
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Aggregate Amount and Estimated Net Fair Value of Our Derivative Instruments | The following table summarizes the aggregate notional amount and estimated net fair value of our derivative instruments as of September 30, 2017 and December 31, 2016: As of September 30, 2017 As of December 31, 2016 Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities Cash flow hedges: Interest rate swap $ 150,000 $ 3,581 $ — $ 150,000 $ 3,867 $ — Freestanding derivatives: Interest rate cap 200,000 — — 200,000 — — Net fair value $ 350,000 $ 3,581 $ — $ 350,000 $ 3,867 $ — |
Shareholder Equity and Noncon23
Shareholder Equity and Noncontrolling Interests (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Dividends Declared | Our board of directors has declared the following dividends in 2017: Month Declaration Date Record Date Payment Date Dividend Declared Per Share January 2017 January 12, 2017 January 31, 2017 February 15, 2017 $ 0.06 February 2017 January 12, 2017 February 28, 2017 March 15, 2017 $ 0.06 March 2017 January 12, 2017 March 31, 2017 April 17, 2017 $ 0.06 April 2017 April 12, 2017 April 28, 2017 May 15, 2017 $ 0.06 May 2017 April 12, 2017 May 31, 2017 June 15, 2017 $ 0.06 June 2017 April 12, 2017 June 30, 2017 July 17, 2017 $ 0.06 July 2017 July 14, 2017 July 31, 2017 August 15, 2017 $ 0.06 August 2017 July 14, 2017 August 31, 2017 September 15, 2017 $ 0.06 September 2017 July 14, 2017 September 29, 2017 October 13, 2017 $ 0.06 October 2017 October 12, 2017 October 31, 2017 November 15, 2017 $ 0.06 November 2017 October 12, 2017 November 30, 2017 December 15, 2017 $ 0.06 December 2017 October 12, 2017 December 29, 2017 January 15, 2018 $ 0.06 |
Noncontrolling Interests | |
Dividends Declared | Our board of directors has declared the following distributions on IROP’s LP units in 2017: Month Declaration Date Record Date Payment Date Dividend Declared Per Share January 2017 January 12, 2017 January 31, 2017 February 15, 2017 $ 0.06 February 2017 January 12, 2017 February 28, 2017 March 15, 2017 $ 0.06 March 2017 January 12, 2017 March 31, 2017 April 17, 2017 $ 0.06 April 2017 April 12, 2017 April 28, 2017 May 15, 2017 $ 0.06 May 2017 April 12, 2017 May 31, 2017 June 15, 2017 $ 0.06 June 2017 April 12, 2017 June 30, 2017 July 17, 2017 $ 0.06 July 2017 July 14, 2017 July 31, 2017 August 15, 2017 $ 0.06 August 2017 July 14, 2017 August 31, 2017 September 15, 2017 $ 0.06 September 2017 July 14, 2017 September 29, 2017 October 13, 2017 $ 0.06 October 2017 October 12, 2017 October 31, 2017 November 15, 2017 $ 0.06 November 2017 October 12, 2017 November 30, 2017 December 15, 2017 $ 0.06 December 2017 October 12, 2017 December 29, 2017 January 15, 2018 $ 0.06 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 nine months ended September 30, 2017 and 2016: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Net income (loss) $ 1,156 $ 2,407 $ 24,922 $ 33,151 (Income) loss allocated to non-controlling interests (59 ) (140 ) (1,009 ) (1,972 ) Net income (loss) allocable to common shares 1,097 2,267 23,913 31,179 Weighted-average shares outstanding—Basic 71,972,394 47,215,918 69,875,802 47,164,543 Weighted-average shares outstanding—Diluted 72,144,544 47,314,629 70,105,571 47,190,139 Earnings (loss) per share—Basic $ 0.02 $ 0.05 $ 0.34 $ 0.66 Earnings (loss) per share—Diluted $ 0.02 $ 0.05 $ 0.34 $ 0.66 |
Organization - Additional Infor
Organization - Additional Information (Detail) | Oct. 05, 2016shares | Sep. 30, 2017Propertyshares |
Class Of Stock [Line Items] | ||
Number of multifamily properties owned | Property | 50 | |
Number of units located with multifamily properties | Property | 13,729 | |
Common Shares | ||
Class Of Stock [Line Items] | ||
Common stock repurchased and retired shares | shares | 60,377 | |
R A I T Financial Trust | Common Shares | ||
Class Of Stock [Line Items] | ||
Common stock repurchased and retired shares | shares | 7,269,719 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Significant Accounting Policies [Line Items] | |||||
Restricted cash | $ 6,665,000 | $ 6,665,000 | $ 5,518,000 | ||
Bad debt expense | 101,000 | $ 306,000 | 670,000 | $ 727,000 | |
Amortization expense for intangible assets | 416,000 | 0 | 664,000 | 3,735,000 | |
Additional amortization expense on current in-place intangible assets | 795,000 | 795,000 | |||
Depreciation expense | 8,255,000 | 7,765,000 | 23,625,000 | 23,192,000 | |
Advertising expenses | 437,000 | 435,000 | 1,285,000 | 1,325,000 | |
Property management expenses | 1,328,000 | 1,219,000 | 4,310,000 | 3,710,000 | |
Income tax expense | 0 | 0 | $ 0 | 0 | |
Taxable income distributable to stockholders | 90.00% | ||||
General and Administrative Expenses | |||||
Significant Accounting Policies [Line Items] | |||||
Asset management and incentive fees | 0 | 1,933,000 | $ 0 | 5,491,000 | |
Natural Disasters and Other Insurable Events | |||||
Significant Accounting Policies [Line Items] | |||||
Rent revenue recognized | 11,000 | $ 38,000 | $ 96,000 | $ 151,000 | |
Building and Building Improvements | |||||
Significant Accounting Policies [Line Items] | |||||
Depreciable Lives | 40 years | ||||
Minimum | Equipment and Fixtures | |||||
Significant Accounting Policies [Line Items] | |||||
Depreciable Lives | 5 years | ||||
Maximum | Equipment and Fixtures | |||||
Significant Accounting Policies [Line Items] | |||||
Depreciable Lives | 10 years | ||||
Leases Acquired In Place | |||||
Significant Accounting Policies [Line Items] | |||||
Acquisition of above-market in-place leases | $ 1,034,000 | $ 1,963,000 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies - Schedule of Carrying Amount and Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Assets | |||||
Cash and cash equivalents, Carrying Amount | $ 10,128 | $ 20,892 | $ 29,247 | $ 38,301 | |
Restricted cash, Carrying Amount | 6,665 | 5,518 | |||
Derivative assets, Carrying Amount | 3,581 | 3,867 | |||
Cash and cash equivalents, Estimated Fair Value | 10,128 | 20,892 | |||
Restricted cash, Estimated Fair Value | 6,665 | 5,518 | |||
Derivative assets, Estimated Fair Value | 3,581 | 3,867 | |||
Liabilities | |||||
Indebtedness, net of unamortized discount and deferred financing costs | 731,625 | 743,817 | |||
Secured Credit Facility | |||||
Liabilities | |||||
Indebtedness, net of unamortized discount and deferred financing costs | [1] | 147,280 | |||
Indebtedness, net of unamortized discount and deferred financing costs, estimated fair value | 150,000 | ||||
Unsecured Credit Facility | |||||
Liabilities | |||||
Indebtedness, net of unamortized discount and deferred financing costs | [2],[3] | 157,163 | |||
Indebtedness, net of unamortized discount and deferred financing costs, estimated fair value | 159,690 | ||||
Mortgages | |||||
Liabilities | |||||
Indebtedness, net of unamortized discount and deferred financing costs | 574,462 | 596,537 | |||
Indebtedness, net of unamortized discount and deferred financing costs, estimated fair value | $ 565,954 | $ 588,523 | |||
[1] | The secured credit facility total capacity was $312,500, of which $150,000 was outstanding as of December 31, 2016. | ||||
[2] | As of September 30, 2017, IRT maintained a float-to-fixed interest rate swap with a $150,000 notional amount. This swap, which expires on June 17, 2021 and has a fixed rate of 1.1325%, has converted $150,000 of our floating rate debt to fixed rate debt. | ||||
[3] | The unsecured credit facility total capacity is $300,000, of which $159,690 was outstanding as of September 30, 2017. |
Investments in Real Estate - Ad
Investments in Real Estate - Additional Information (Detail) | Oct. 25, 2017USD ($)Property | Sep. 30, 2017USD ($)Property | Dec. 31, 2016USD ($) |
Real Estate Properties [Line Items] | |||
Number of multifamily properties owned | Property | 50 | ||
Number of units located with multifamily properties | Property | 13,729 | ||
Real estate held for sale | $ | $ 22,031,000 | $ 60,786,000 | |
Purchase price allocation adjustments | $ | $ 0 | ||
Number of property acquired | Property | 1,621 | ||
Acquisition of real estate properties | $ | $ 169,156,000 | ||
Baton Rouge, LA | Live Oak Trace | Subsequent Event | |||
Real Estate Properties [Line Items] | |||
Number of property acquired | Property | 264 | ||
Acquisition of real estate properties | $ | $ 28,501,000 |
Summary of Investments in Real
Summary of Investments in Real Estate (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Real Estate Properties [Line Items] | ||
Land | $ 187,935 | $ 165,120 |
Building | 1,211,985 | 1,066,611 |
Furniture, fixtures and equipment | 27,137 | 17,625 |
Total investment in real estate | 1,427,057 | 1,249,356 |
Accumulated depreciation | (75,084) | (51,511) |
Investments in real estate, net | $ 1,351,973 | $ 1,197,845 |
Building | ||
Real Estate Properties [Line Items] | ||
Depreciable Lives | 40 years | |
Furniture, fixtures and equipment | Minimum | ||
Real Estate Properties [Line Items] | ||
Depreciable Lives | 5 years | |
Furniture, fixtures and equipment | Maximum | ||
Real Estate Properties [Line Items] | ||
Depreciable Lives | 10 years |
Summary of Acquisitions (Detail
Summary of Acquisitions (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017USD ($)Property | ||
Business Acquisition [Line Items] | ||
Units (unaudited) | Property | 1,621 | |
Purchase Price | $ | $ 170,154 | |
Lakes of Northdale | Tampa , FL | ||
Business Acquisition [Line Items] | ||
Date of Purchase | Feb. 27, 2017 | |
Units (unaudited) | Property | 216 | |
Purchase Price | $ | $ 29,750 | |
Haverford Place | Lexington, KY | ||
Business Acquisition [Line Items] | ||
Date of Purchase | May 24, 2017 | |
Units (unaudited) | Property | 160 | |
Purchase Price | $ | $ 14,240 | |
South Terrace | Durham, NC | ||
Business Acquisition [Line Items] | ||
Date of Purchase | Jun. 30, 2017 | [1] |
Units (unaudited) | Property | 328 | [1] |
Purchase Price | $ | $ 42,950 | [1] |
Cherry Grove | North Myrtle Beach, SC | ||
Business Acquisition [Line Items] | ||
Date of Purchase | Sep. 26, 2017 | [2] |
Units (unaudited) | Property | 172 | [2] |
Purchase Price | $ | $ 16,157 | [2] |
Riverchase | Indianapolis, IN | ||
Business Acquisition [Line Items] | ||
Date of Purchase | Sep. 26, 2017 | [2] |
Units (unaudited) | Property | 217 | [2] |
Purchase Price | $ | $ 18,899 | [2] |
Kensington | Canal Winchester, OH | ||
Business Acquisition [Line Items] | ||
Date of Purchase | Sep. 26, 2017 | [2] |
Units (unaudited) | Property | 264 | [2] |
Purchase Price | $ | $ 24,409 | [2] |
Schirm Farms | Canal Winchester, OH | ||
Business Acquisition [Line Items] | ||
Date of Purchase | Sep. 26, 2017 | [2] |
Units (unaudited) | Property | 264 | [2] |
Purchase Price | $ | $ 23,749 | [2] |
[1] | This property was acquired from a joint venture of which our former advisor was a controlling member. See Note 8: Related Party Transactions and Arrangements. In conjunction with this acquisition, we issued IROP units to third parties that were members of the joint venture that owned the property. See Note 6: Shareholder Equity and Noncontrolling Interests. | |
[2] | These properties were acquired as the first phase of our acquisition of a nine-community portfolio, totaling 2,353 units, which we agreed to acquire on September 3, 2017 for a total purchase price of $228,144. In connection with the acquisition of these properties, we incurred defeasance costs totaling $2,781, which are included in Acquisition related debt extinguishment expenses within the Consolidated Statements of Operations. |
Summary of Acquisitions (Parent
Summary of Acquisitions (Parenthetical) (Detail) $ in Thousands | Sep. 03, 2017USD ($)Property | Sep. 30, 2017USD ($)Property |
Business Acquisition [Line Items] | ||
Units (unaudited) | Property | 1,621 | |
Purchase Price | $ 170,154 | |
Defeasance costs related to properties acquired | $ 2,781 | |
Acquisition of Nine-Property Portfolio First Phase Acquisition | ||
Business Acquisition [Line Items] | ||
Units (unaudited) | Property | 2,353 | |
Purchase Price | $ 228,144 |
Summary of Aggregate Fair Value
Summary of Aggregate Fair Value of Assets and Liabilities (Detail) - Lakes of Northdale $ in Thousands | Sep. 30, 2017USD ($) |
Assets acquired: | |
Investments in real estate | $ 168,191 |
Accounts receivable and other assets | 463 |
Intangible assets | 1,963 |
Total assets acquired | 170,617 |
Liabilities assumed: | |
Accounts payable and accrued expenses | 1,502 |
Other liabilities | 490 |
Total liabilities assumed | 1,992 |
Estimated fair value of net assets acquired | $ 168,625 |
Summary of Revenue And Net Inco
Summary of Revenue And Net Income (Loss) for Properties Acquired (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Business Acquisition Pro Forma Information Nonrecurring Adjustment [Line Items] | ||
Total revenue | $ 2,401 | $ 3,636 |
Net income (loss) allocable to common shares | 606 | 907 |
Lakes of Northdale | ||
Business Acquisition Pro Forma Information Nonrecurring Adjustment [Line Items] | ||
Total revenue | 789 | 1,829 |
Net income (loss) allocable to common shares | 223 | 447 |
Haverford Place | ||
Business Acquisition Pro Forma Information Nonrecurring Adjustment [Line Items] | ||
Total revenue | 452 | 637 |
Net income (loss) allocable to common shares | 107 | 179 |
South Terrace | ||
Business Acquisition Pro Forma Information Nonrecurring Adjustment [Line Items] | ||
Total revenue | 1,039 | 1,049 |
Net income (loss) allocable to common shares | 198 | 203 |
Cherry Grove | ||
Business Acquisition Pro Forma Information Nonrecurring Adjustment [Line Items] | ||
Total revenue | 26 | 26 |
Net income (loss) allocable to common shares | 17 | 17 |
Riverchase | ||
Business Acquisition Pro Forma Information Nonrecurring Adjustment [Line Items] | ||
Total revenue | 25 | 25 |
Net income (loss) allocable to common shares | 13 | 13 |
Kensington | ||
Business Acquisition Pro Forma Information Nonrecurring Adjustment [Line Items] | ||
Total revenue | 35 | 35 |
Net income (loss) allocable to common shares | 25 | 25 |
Schirm Farms | ||
Business Acquisition Pro Forma Information Nonrecurring Adjustment [Line Items] | ||
Total revenue | 35 | 35 |
Net income (loss) allocable to common shares | $ 23 | $ 23 |
Pro Forma of Financial Informat
Pro Forma of Financial Information Purport to Represent Result of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Real Estate Properties Base Purchase Price [Abstract] | ||||
Pro forma total revenue (unaudited) | $ 43,421 | $ 42,695 | $ 128,834 | $ 128,350 |
Pro forma net income (loss) allocable to common shares (unaudited) | $ 2,347 | $ 3,211 | $ 27,663 | $ 34,012 |
Earnings (loss) per share attributable to common shareholders: | ||||
Basic-pro forma (unaudited) | $ 0.03 | $ 0.07 | $ 0.40 | $ 0.72 |
Diluted-pro forma (unaudited) | $ 0.03 | $ 0.07 | $ 0.39 | $ 0.72 |
Summary of Disposition of Prope
Summary of Disposition of Property's (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2017 | ||
Real Estate Properties [Line Items] | |||
Sale Price | $ 59,600 | ||
Gain (loss) on sale | [1] | 15,958 | |
Net income (loss) allocable to common shares | $ (39) | $ 1,728 | |
Copper Mill | |||
Real Estate Properties [Line Items] | |||
Date of Sale | May 5, 2017 | ||
Sale Price | $ 32,000 | ||
Gain (loss) on sale | [1] | 15,616 | |
Net income (loss) allocable to common shares | (3) | $ 794 | |
Heritage Trace | |||
Real Estate Properties [Line Items] | |||
Date of Sale | Jun. 1, 2017 | ||
Sale Price | $ 11,600 | ||
Gain (loss) on sale | [1] | (1,237) | |
Net income (loss) allocable to common shares | (3) | $ 477 | |
Berkshire | |||
Real Estate Properties [Line Items] | |||
Date of Sale | Jun. 9, 2017 | ||
Sale Price | $ 16,000 | ||
Gain (loss) on sale | [1] | 1,579 | |
Net income (loss) allocable to common shares | $ (33) | $ 457 | |
[1] | The gain (loss) on sale for these properties is net of $2,748 of defeasance costs. All properties were previously classified as held for sale |
Summary of Disposition of Pro36
Summary of Disposition of Property's (Parenthetical) (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Copper Mill | |
Real Estate Properties [Line Items] | |
Gain (loss) on sale related to property includes defeasance costs | $ 2,748 |
Summary Information Concerning
Summary Information Concerning Indebtedness (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | ||
Debt Instrument [Line Items] | |||
Outstanding Principal | $ 737,322 | $ 750,188 | |
Unamortized Discount and Debt Issuance Costs | (5,697) | (6,371) | |
Carrying Amount | $ 731,625 | $ 743,817 | |
Weighted Average Rate | 3.50% | 3.60% | |
Weighted Average | |||
Debt Instrument [Line Items] | |||
Weighted Average Maturity (in years) | 5 years 7 months 6 days | 5 years 8 months 12 days | |
Unsecured Credit Facility | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | [1],[2] | $ 159,690 | |
Unamortized Discount and Debt Issuance Costs | [1],[2] | (2,527) | |
Carrying Amount | [1],[2] | $ 157,163 | |
Type | [1],[2] | Floating | |
Weighted Average Rate | [1],[2] | 2.70% | |
Unsecured Credit Facility | Weighted Average | |||
Debt Instrument [Line Items] | |||
Weighted Average Maturity (in years) | [1],[2] | 3 years 10 months 25 days | |
Secured Credit Facility | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | [3] | $ 150,000 | |
Unamortized Discount and Debt Issuance Costs | [3] | (2,720) | |
Carrying Amount | [3] | $ 147,280 | |
Type | [3] | Floating | |
Weighted Average Rate | [3] | 3.00% | |
Secured Credit Facility | Weighted Average | |||
Debt Instrument [Line Items] | |||
Weighted Average Maturity (in years) | [3] | 1 year 8 months 12 days | |
Mortgages-Fixed Rate | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | $ 577,632 | $ 600,188 | |
Unamortized Discount and Debt Issuance Costs | (3,170) | (3,651) | |
Carrying Amount | $ 574,462 | $ 596,537 | |
Type | Fixed | Fixed | |
Weighted Average Rate | 3.70% | 3.80% | |
Mortgages-Fixed Rate | Weighted Average | |||
Debt Instrument [Line Items] | |||
Weighted Average Maturity (in years) | 6 years | 6 years 8 months 12 days | |
[1] | As of September 30, 2017, IRT maintained a float-to-fixed interest rate swap with a $150,000 notional amount. This swap, which expires on June 17, 2021 and has a fixed rate of 1.1325%, has converted $150,000 of our floating rate debt to fixed rate debt. | ||
[2] | The unsecured credit facility total capacity is $300,000, of which $159,690 was outstanding as of September 30, 2017. | ||
[3] | The secured credit facility total capacity was $312,500, of which $150,000 was outstanding as of December 31, 2016. |
Summary Information Concernin38
Summary Information Concerning Indebtedness (Parenthetical) (Detail) - USD ($) | 9 Months Ended | ||||
Sep. 30, 2017 | May 01, 2017 | Dec. 31, 2016 | Jun. 24, 2016 | ||
Debt Instrument [Line Items] | |||||
Outstanding Principal | $ 737,322,000 | $ 750,188,000 | |||
Derivative, notional amount | 350,000,000 | 350,000,000 | |||
Unsecured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Secured credit facility borrowing capacity | 300,000,000 | $ 300,000,000 | |||
Outstanding Principal | [1],[2] | 159,690,000 | |||
Secured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Secured credit facility borrowing capacity | 312,500,000 | ||||
Outstanding Principal | [3] | $ 150,000,000 | |||
Interest Rate Swap | |||||
Debt Instrument [Line Items] | |||||
Derivative, notional amount | $ 150,000,000 | $ 150,000 | |||
Derivative, maturity date | Jun. 17, 2021 | ||||
Derivative, fixed interest rate | 1.1325% | ||||
[1] | As of September 30, 2017, IRT maintained a float-to-fixed interest rate swap with a $150,000 notional amount. This swap, which expires on June 17, 2021 and has a fixed rate of 1.1325%, has converted $150,000 of our floating rate debt to fixed rate debt. | ||||
[2] | The unsecured credit facility total capacity is $300,000, of which $159,690 was outstanding as of September 30, 2017. | ||||
[3] | The secured credit facility total capacity was $312,500, of which $150,000 was outstanding as of December 31, 2016. |
Maturity of Indebtedness (Detai
Maturity of Indebtedness (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Debt Instrument [Line Items] | |
2,017 | $ 685 |
2,018 | 3,245 |
2,019 | 4,660 |
2,020 | 7,611 |
2,021 | 212,287 |
Thereafter | 508,834 |
Unsecured Credit Facility | |
Debt Instrument [Line Items] | |
2,021 | 109,690 |
Thereafter | 50,000 |
Mortgages-Fixed Rate | |
Debt Instrument [Line Items] | |
2,017 | 685 |
2,018 | 3,245 |
2,019 | 4,660 |
2,020 | 7,611 |
2,021 | 102,597 |
Thereafter | $ 458,834 |
Indebtedness - Additional Infor
Indebtedness - Additional Information (Detail) | Sep. 26, 2017USD ($)Property | May 01, 2017USD ($) | Sep. 30, 2017USD ($)Property | Jun. 30, 2017USD ($) | May 31, 2017USD ($) | Feb. 28, 2017USD ($) | Sep. 30, 2017USD ($)Property | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | |||||||||
Loss on extinguishment of debt | $ (572,000) | $ (572,000) | $ (558,000) | ||||||
Proceeds from credit facility | $ 85,000,000 | $ 31,250,000 | $ 9,000,000 | $ 148,190,000 | $ 93,501,000 | ||||
Number of properties acquired | Property | 4 | ||||||||
Number of property dispositions | Property | 3 | 3 | |||||||
Defeasance mortgage loan related to property disposition | $ 20,586,000 | ||||||||
Secured Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from credit facility | $ 22,000,000 | ||||||||
Unsecured credit facility | $ 312,500,000 | ||||||||
Maturity date | Sep. 17, 2018 | ||||||||
Unsecured Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Unsecured credit facility | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | ||||||
Paid down value on unsecured credit facility | $ 117,500,000 | ||||||||
Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Unsecured credit facility | $ 50,000,000 | ||||||||
Maturity date | May 1, 2022 | ||||||||
Term Loan | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt interest rate | 1.45% | ||||||||
Revolving Commitment | |||||||||
Debt Instrument [Line Items] | |||||||||
Unsecured credit facility | $ 250,000,000 | ||||||||
Maturity date | May 1, 2021 | ||||||||
Revolving Commitment | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt interest rate | 1.50% |
Derivative Financial Instrume41
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2018 | Apr. 17, 2017 | Dec. 31, 2016 | Jun. 24, 2016 | |
Derivative Instruments Gain Loss [Line Items] | ||||||
Derivative, notional amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | |||
Derivative, strike rate for the interest rate swap contract | 1.1325% | 1.145% | ||||
Realized gains (losses) on interest rate hedges reclassified to earnings | 27,000 | (156,000) | ||||
Interest Rate Swap | ||||||
Derivative Instruments Gain Loss [Line Items] | ||||||
Derivative, notional amount | 150,000,000 | $ 150,000,000 | $ 150,000 | |||
Derivative, maturity date | Jun. 17, 2021 | |||||
Recognition of hedge ineffectiveness | (12,000) | $ 0 | ||||
Interest Rate Swap | Cash Flow Hedge | ||||||
Derivative Instruments Gain Loss [Line Items] | ||||||
Derivative, notional amount | $ 150,000,000 | $ 150,000,000 | $ 150,000,000 | |||
Interest Rate Swaps and Caps | Scenario, Forecast | Cash Flow Hedge | ||||||
Derivative Instruments Gain Loss [Line Items] | ||||||
Reclassified out of accumulated other comprehensive income to earnings, amount | $ 471,000 |
Derivative Financial Instrume42
Derivative Financial Instruments - Summary of Aggregate Amount and Estimated Net Fair Value of Derivative Instruments (Detail) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 | Jun. 24, 2016 |
Derivative Instruments Gain Loss [Line Items] | |||
Derivative, notional amount | $ 350,000,000 | $ 350,000,000 | |
Derivative assets, Estimated Fair Value | 3,581,000 | 3,867,000 | |
Fair Value of Assets | 3,581,000 | 3,867,000 | |
Fair Value of Assets | 3,867,000 | ||
Interest Rate Swap | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative, notional amount | 150,000,000 | $ 150,000 | |
Cash Flow Hedge | Interest Rate Swap | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative, notional amount | 150,000,000 | 150,000,000 | |
Fair Value of Assets | 3,581,000 | 3,867,000 | |
Freestanding Derivatives | Interest Rate Cap | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative, notional amount | $ 200,000,000 | $ 200,000,000 |
Dividends Declared (Detail)
Dividends Declared (Detail) - Dividend Declared - $ / shares | 1 Months Ended | |||||||||||
Dec. 31, 2017 | Nov. 30, 2017 | Oct. 31, 2017 | Sep. 30, 2017 | Aug. 31, 2017 | Jul. 31, 2017 | Jun. 30, 2017 | May 31, 2017 | Apr. 30, 2017 | Mar. 31, 2017 | Feb. 28, 2017 | Jan. 31, 2017 | |
Dividends Payable [Line Items] | ||||||||||||
Declaration Date | Jul. 14, 2017 | Jul. 14, 2017 | Jul. 14, 2017 | Apr. 12, 2017 | Apr. 12, 2017 | Apr. 12, 2017 | Jan. 12, 2017 | Jan. 12, 2017 | Jan. 12, 2017 | |||
Record Date | Sep. 29, 2017 | Aug. 31, 2017 | Jul. 31, 2017 | Jun. 30, 2017 | May 31, 2017 | Apr. 28, 2017 | Mar. 31, 2017 | Feb. 28, 2017 | Jan. 31, 2017 | |||
Payment Date | Oct. 13, 2017 | Sep. 15, 2017 | Aug. 15, 2017 | Jul. 17, 2017 | Jun. 15, 2017 | May 15, 2017 | Apr. 17, 2017 | Mar. 15, 2017 | Feb. 15, 2017 | |||
Dividend Declared Per Share | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | |||
Noncontrolling Interests | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Declaration Date | Jul. 14, 2017 | Jul. 14, 2017 | Jul. 14, 2017 | Apr. 12, 2017 | Apr. 12, 2017 | Apr. 12, 2017 | Jan. 12, 2017 | Jan. 12, 2017 | Jan. 12, 2017 | |||
Record Date | Sep. 29, 2017 | Aug. 31, 2017 | Jul. 31, 2017 | Jun. 30, 2017 | May 31, 2017 | Apr. 28, 2017 | Mar. 31, 2017 | Feb. 28, 2017 | Jan. 31, 2017 | |||
Payment Date | Oct. 13, 2017 | Sep. 15, 2017 | Aug. 15, 2017 | Jul. 17, 2017 | Jun. 15, 2017 | May 15, 2017 | Apr. 17, 2017 | Mar. 15, 2017 | Feb. 15, 2017 | |||
Dividend Declared Per Share | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | |||
Scenario, Forecast | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Declaration Date | Oct. 12, 2017 | Oct. 12, 2017 | ||||||||||
Record Date | Dec. 29, 2017 | Nov. 30, 2017 | ||||||||||
Payment Date | Jan. 15, 2018 | Dec. 15, 2017 | ||||||||||
Dividend Declared Per Share | $ 0.06 | $ 0.06 | ||||||||||
Scenario, Forecast | Noncontrolling Interests | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Declaration Date | Oct. 12, 2017 | Oct. 12, 2017 | ||||||||||
Record Date | Dec. 29, 2017 | Nov. 30, 2017 | ||||||||||
Payment Date | Jan. 15, 2018 | Dec. 15, 2017 | ||||||||||
Dividend Declared Per Share | $ 0.06 | $ 0.06 | ||||||||||
Subsequent Event | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Declaration Date | Oct. 12, 2017 | |||||||||||
Record Date | Oct. 31, 2017 | |||||||||||
Payment Date | Nov. 15, 2017 | |||||||||||
Dividend Declared Per Share | $ 0.06 | |||||||||||
Subsequent Event | Noncontrolling Interests | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Declaration Date | Oct. 12, 2017 | |||||||||||
Record Date | Oct. 31, 2017 | |||||||||||
Payment Date | Nov. 15, 2017 | |||||||||||
Dividend Declared Per Share | $ 0.06 |
Shareholder Equity and Noncon44
Shareholder Equity and Noncontrolling Interests - Additional Information (Detail) - USD ($) | Sep. 11, 2017 | Jun. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 29, 2017 | Aug. 04, 2017 | Dec. 31, 2016 |
Class Of Stock [Line Items] | |||||||
Dividends paid | $ 0 | $ 126,000 | |||||
At-the-market sales agreement, common stock par value per share | $ 0.01 | ||||||
At-the-market agreement to sell common shares, maximum offer price | $ 150,000,000 | ||||||
At-the-market agreement to sell common shares, compensation to sales agents | 2.00% | ||||||
At-the-market sales agreement, obligation to sell common shares | $ 0 | ||||||
Shares issued pursuant to at-the-market sales agreement | 0 | 0 | |||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Public offering price per share | $ 10.17 | ||||||
Proceeds from issuance of common stock | $ 125,707,000 | ||||||
OP Units issued | 166,604 | ||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 1,654,000 | ||||||
OP Units outstanding | 3,035,654 | 3,035,654 | |||||
OP Units redemption value | $ 30,873,000 | $ 30,873,000 | |||||
Underwritten public offering | |||||||
Class Of Stock [Line Items] | |||||||
Common stock issued | 12,500,000 | ||||||
Common stock, par value | $ 9.25 | ||||||
Public offering price per share | $ 1,875,000 | ||||||
Proceeds from issuance of common stock | $ 126,100,000 |
Equity Compensation Plans - Add
Equity Compensation Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | May 16, 2017 | Feb. 28, 2017 | May 31, 2016 | Sep. 30, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, shares authorized | 4,300,000 | 300,000,000 | 300,000,000 | ||
Expiration date of Incentive Plan | May 12, 2026 | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards vesting period | 3 years | ||||
Shares issued | 143,180 | ||||
Weighted average fair value, granted | $ 9.19 | ||||
Grant date fair value | $ 1,316 | ||||
Number of awards vested immediately | 6,585 | ||||
Performance Share Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards vesting period | 3 years | ||||
Shares issued | 226,469 | ||||
Grant date fair value | $ 1,076 | ||||
Long Term Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards vesting period | 3 years | ||||
Long Term Incentive Plan | Independent Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued | 24,830 | ||||
Grant date fair value | $ 225 | ||||
Weighted average fair value, granted | $ 9.06 |
Related Party Transactions an46
Related Party Transactions and Arrangements - Additional Information (Detail) | Oct. 05, 2016shares | Jun. 30, 2017USD ($)Property | Sep. 30, 2017USD ($)Property | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($)Property | Sep. 30, 2017USD ($)Propertyshares | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Related Party Transaction [Line Items] | ||||||||
Dividends paid, common stock | $ 38,151,000 | |||||||
Number of property dispositions | Property | 3 | 3 | ||||||
Number of property acquired | Property | 1,621 | 1,621 | ||||||
Acquisition of real estate properties | $ 169,156,000 | |||||||
Common Shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
Common stock repurchased and retired shares | shares | 60,377 | |||||||
R A I T Financial Trust | ||||||||
Related Party Transaction [Line Items] | ||||||||
Dividends paid, common stock | $ 0 | $ 1,309,000 | $ 0 | $ 3,926,000 | ||||
Repayment of term loan facility | $ 38,075,000 | |||||||
Number of property dispositions | Property | 2 | |||||||
Former Advisor | ||||||||
Related Party Transaction [Line Items] | ||||||||
Asset management fees earned | 0 | 1,727,000 | 0 | 5,141,000 | ||||
Incentive fee earned by the former advisor | 0 | 206,000 | 0 | 350,000 | ||||
Former Advisor | Shares Services Agreement | ||||||||
Related Party Transaction [Line Items] | ||||||||
Cost incurred for service provided | $ 727,000 | 0 | ||||||
Term of agreement | December 21, 2016 to June 20, 2017 | |||||||
Former Advisor | Incentive Fees | ||||||||
Related Party Transaction [Line Items] | ||||||||
Former advisor and management fees payable | 0 | $ 0 | $ 0 | |||||
Property Manager | ||||||||
Related Party Transaction [Line Items] | ||||||||
Former advisor and management fees payable | 0 | 0 | $ 0 | |||||
Property management and leasing fees | 0 | 1,219,000 | 0 | 3,710,000 | ||||
R A I T Financial Trust | Durham, NC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of property acquired | Property | 328 | |||||||
Acquisition of real estate properties | $ 42,950,000 | |||||||
R A I T Financial Trust | Common Shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
Common stock repurchased and retired shares | shares | 7,269,719 | |||||||
Sponsor | R A I T Financial Trust | ||||||||
Related Party Transaction [Line Items] | ||||||||
Total interest expense paid | $ 0 | $ 0 | $ 486,000 | $ 486,000 |
Reconciliation of Basic and Dil
Reconciliation of Basic and Diluted Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 1,156 | $ 2,407 | $ 24,922 | $ 33,151 |
(Income) loss allocated to non-controlling interests | (59) | (140) | (1,009) | (1,972) |
Net income (loss) allocable to common shares | $ 1,097 | $ 2,267 | $ 23,913 | $ 31,179 |
Weighted-average shares outstanding—Basic | 71,972,394 | 47,215,918 | 69,875,802 | 47,164,543 |
Weighted-average shares outstanding—Diluted | 72,144,544 | 47,314,629 | 70,105,571 | 47,190,139 |
Basic | $ 0.02 | $ 0.05 | $ 0.34 | $ 0.66 |
Diluted | $ 0.02 | $ 0.05 | $ 0.34 | $ 0.66 |
Earning (Loss) Per Share - Addi
Earning (Loss) Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings (loss) per share, amount | 3,035,654 | 2,915,008 | 3,035,654 | 3,091,380 |