Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 26, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
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 | 86,973,397 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investments in real estate: | ||
Investments in real estate, at cost | $ 1,638,544 | $ 1,504,156 |
Accumulated depreciation | (94,001) | (84,097) |
Investments in real estate, net | 1,544,543 | 1,420,059 |
Cash and cash equivalents | 10,399 | 9,985 |
Restricted cash | 5,645 | 4,634 |
Accounts receivable and other assets | 5,318 | 7,556 |
Derivative assets | 10,525 | 7,291 |
Intangible assets, net of accumulated amortization of $839 and $1,511, respectively | 1,449 | 1,099 |
Total Assets | 1,577,879 | 1,450,624 |
LIABILITIES AND EQUITY: | ||
Indebtedness, net of unamortized deferred financing costs of $6,118 and $6,198, respectively | 903,286 | 778,442 |
Accounts payable and accrued expenses | 17,896 | 17,216 |
Accrued interest payable | 373 | 249 |
Dividends payable | 15,754 | 5,245 |
Other liabilities | 3,580 | 3,353 |
Total Liabilities | 940,889 | 804,505 |
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, 86,973,397 and 84,708,551 shares issued and outstanding, including 351,998 and 295,847 unvested restricted common share awards, respectively | 868 | 846 |
Additional paid-in capital | 718,260 | 703,849 |
Accumulated other comprehensive income | 7,890 | 4,626 |
Retained earnings (accumulated deficit) | (97,581) | (85,221) |
Total stockholders’ equity | 629,437 | 624,100 |
Noncontrolling interests | 7,553 | 22,019 |
Total Equity | 636,990 | 646,119 |
Total Liabilities and Equity | $ 1,577,879 | $ 1,450,624 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Intangible assets, accumulated amortization | $ 839 | $ 1,511 |
Indebtedness, unamortized discount and deferred financing costs | $ 6,118 | $ 6,198 |
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 | 86,973,397 | 84,708,551 |
Common stock, shares outstanding | 86,973,397 | 84,708,551 |
Unvested restricted common share awards | 351,998 | 295,847 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
REVENUE: | ||
Rental income | $ 40,858 | $ 34,737 |
Tenant reimbursement income | 1,607 | 1,461 |
Other property income | 3,151 | 2,697 |
Property management and other income | 139 | 247 |
Total revenue | 45,755 | 39,142 |
EXPENSES: | ||
Property operating expenses | 18,418 | 15,992 |
Property management expenses | 1,683 | 1,538 |
General and administrative expenses | 2,734 | 2,100 |
Acquisition and integration expenses | 122 | |
Depreciation and amortization expense | 11,224 | 7,607 |
Total expenses | 34,059 | 27,359 |
Operating income | 11,696 | 11,783 |
Interest expense | (8,340) | (7,448) |
Other income (expense) | 144 | (5) |
Net gains (losses) on sale of assets | (85) | |
Net income: | 3,500 | 4,245 |
(Income) loss allocated to noncontrolling interest | (88) | (168) |
Net income allocable to common shares | $ 3,412 | $ 4,077 |
Earnings per share: | ||
Basic | $ 0.04 | $ 0.06 |
Diluted | $ 0.04 | $ 0.06 |
Weighted-average shares: | ||
Basic | 85,303,010 | 68,787,155 |
Diluted | 85,535,089 | 68,958,786 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 3,500 | $ 4,245 |
Other comprehensive income: | ||
Change in fair value of interest rate hedges | 3,355 | 296 |
Realized (gains) losses on interest rate hedges reclassified to earnings | (174) | 132 |
Total other comprehensive income | 3,181 | 428 |
Comprehensive income before allocation to noncontrolling interests | 6,681 | 4,673 |
Allocation to noncontrolling interests | (5) | (182) |
Comprehensive income | $ 6,676 | $ 4,491 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) - 3 months ended Mar. 31, 2018 - 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, 2017 | $ 646,119 | $ 846 | $ 703,849 | $ 4,626 | $ (85,221) | $ 624,100 | $ 22,019 |
Beginning Balance (in Shares) at Dec. 31, 2017 | 84,708,551 | 84,708,551 | |||||
Net income | $ 3,500 | 3,412 | 3,412 | 88 | |||
Other comprehensive income | 3,181 | 3,264 | 3,264 | (83) | |||
Stock compensation expense | 470 | $ 1 | 469 | 470 | |||
Stock compensation expense (in Shares) | 194,622 | ||||||
Repurchase of shares related to equity award tax withholding | (345) | (345) | (345) | ||||
Repurchase of shares related to equity award tax withholding (in shares) | (41,912) | ||||||
Conversion of noncontrolling interest to common shares | 14,308 | $ 21 | 14,287 | 14,308 | (14,308) | ||
Conversion of noncontrolling interest to common shares (in Shares) | 2,112,136 | ||||||
Common dividends declared | (15,772) | (15,772) | (15,772) | ||||
Distribution to noncontrolling interest declared | (163) | (163) | |||||
Ending Balance at Mar. 31, 2018 | $ 636,990 | $ 868 | $ 718,260 | $ 7,890 | $ (97,581) | $ 629,437 | $ 7,553 |
Ending Balance (in shares) at Mar. 31, 2018 | 86,973,397 | 86,973,397 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 3,500 | $ 4,245 |
Adjustments to reconcile net income to cash flow from operating activities: | ||
Depreciation and amortization | 11,224 | 7,607 |
Amortization of deferred financing costs | 444 | 513 |
Stock compensation expense | 470 | 481 |
Net (gains) losses on sale of assets | 85 | |
Change in fair value of derivative instruments | (53) | |
Changes in assets and liabilities: | ||
Accounts receivable and other assets | 829 | 503 |
Accounts payable and accrued expenses | (633) | (1,020) |
Accrued interest payable | 124 | 49 |
Other liabilities | (67) | (42) |
Net cash provided by operating activities | 15,838 | 12,421 |
Cash flows from investing activities: | ||
Acquisition of real estate properties | (89,297) | (28,700) |
Capital expenditures | (4,954) | (2,359) |
Cash flow used in investing activities | (94,251) | (31,059) |
Cash flows from financing activities: | ||
Proceeds from unsecured credit facility and term loan | 90,000 | 22,000 |
Credit facility repayments | 4,000 | |
Mortgage principal repayments | (736) | (635) |
Distributions on common stock | (5,245) | (12,498) |
Distributions to noncontrolling interests | (181) | (520) |
Repurchase of shares related to equity award tax withholding | (479) | |
Cash flow provided by financing activities | 79,838 | 7,868 |
Net change in cash and cash equivalents, and restricted cash | 1,425 | (10,770) |
Cash and cash equivalents, and restricted cash, beginning of period | 14,619 | 26,410 |
Cash and cash equivalents, and restricted cash, end of the period | $ 16,044 | $ 15,640 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2018 | |
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. 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). As of March 31, 2018, we own and operate 56 multifamily apartment properties, totaling 15,280 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. 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 | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017 included in our Annual Report on Form 10-K, or the 2017 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 March 31, 2018 and December 31, 2017, we had $5,645 and $4,634, 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 March 31, 2018 and 2017, we recorded bad debt expense of $164 and $314, 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 Properties Effective January 1, 2018, FASB ASC Topic 805, “Business Combinations” was amended to clarify the definition of a business by more clearly outlining the requirements for an integrated set of assets and activities to be considered a business and by establishing a practical framework to determine when the integrated set of assets and activities is a business. Prior to January 1, 2018, the properties we acquired were generally considered businesses and were accounted for as business combinations. Subsequent to January 1, 2018, we expect the properties we acquire to generally not be considered businesses and, therefore, to be accounted for as asset acquisitions. Under business combination accounting, 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. Transaction costs and fees incurred related to the acquisition are expensed as incurred. Under asset acquisition accounting, the costs to acquire real estate, including transaction costs related to the acquisition, are accumulated and then allocated to the individual assets and liabilities acquired based upon their relative fair value. Under both business combination and asset acquisition accounting, t We estimate the fair value of acquired tangible assets (consisting of land, building and improvements), identified intangible assets (consisting of in-place leases), and assumed debt at the date of acquisition, based on the evaluation of information and estimates available at that date. The aggregate value of in-place leases is determined by evaluating various factors, including the terms of the leases that are in place and assumed lease-up periods. During the three months ended March 31, 2018, we acquired in-place leases with a value of $1,641, 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 months ended March 31, 2018 and 2017, we recorded $1,291 and $55, respectively, of amortization expense for intangible assets. For the three months ended March 31, 2018 and 2017, we wrote-off intangible assets of $1,963 and $0, respectively. As of March 31, 2018, we expect to record additional amortization expense on current intangible assets of $1,373 for the remainder of 2018. 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 months ended March 31, 2018 and 2017, we recorded $9,931 and $7,552 of depreciation expense, respectively. h. Revenue and Expenses Rental Income We apply FASB ASC Topic 840, “Leases” with respect to our accounting for rental income. We primarily lease apartments units under operating leases generally with terms of one year or less. Rental payments are generally due monthly and rental revenues are recognized on an accrual basis when earned. Tenant Reimbursement and Other Property Income We apply FASB ASC Topic 606, “Revenue from Contracts with Customers” with respect to tenant reimbursement and other property income. Tenant reimbursement income represents reimbursement from tenants for utility charges, while other property income includes cable, parking, trash, late fees, application fees, and other miscellaneous property related income. The performance obligations of providing residents with these services are stipulated within the lease agreement and may be provided over time or at a point in time. The services provided over time include cable, parking, and trash services, which are generally provided over a monthly period for the term of the respective lease. The services provided at a point in time include late fees and application fees. Given the short period of time over which this revenue is then recognized and since payments with respect to tenant reimbursement and other property income are generally due monthly, no contract assets or liabilities have been recognized. For the three months ended March 31, 2018 and 2017, we recognized revenues of $42 and $51, respectively, related to recoveries of lost rental revenue due to natural disasters and other insurable events from our insurance providers. Advertising Expenses For the three months ended March 31, 2018 and 2017, we incurred $533 and $426 of advertising expenses, respectively. 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 March 31, 2018 As of December 31, 2017 Financial Instrument Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets Cash and cash equivalents $ 10,399 $ 10,399 $ 9,985 $ 9,985 Restricted cash 5,645 5,645 4,634 4,634 Derivative assets 10,525 10,525 7,291 7,291 Liabilities Debt: Unsecured credit facility 187,789 190,005 101,629 104,005 Term loan 99,106 100,000 99,105 100,000 Mortgages 616,391 589,414 577,708 564,333 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. 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 months ended March 31, 2018 and 2017. 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 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. Subsequently, the FASB issued amendments to this accounting standard that provided further clarification. These standards amending FASB ASC Topic 606 were effective for annual reporting periods beginning after December 15, 2017. We adopted these accounting standard updates on January 1, 2018 using the modified retrospective approach. A majority of our revenue is derived from real estate lease contracts, which are specifically excluded from the scope of these standards. The portion of our revenue that was impacted by these standards included revenue recorded within the tenant reimbursement income, other property income, and property management and other income captions of our Consolidated Statements of Operations. The adoption of these standards did not have a material impact on our consolidated financial statements and no cumulative effect adjustment was recorded upon adoption. 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. Subsequently, the FASB issued amendments to this accounting standard that required companies to include restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling the statement of cash flows. The amendments were effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We adopted these standards as of January 1, 2018. The adoption of this accounting standard resulted in a decrease in net cash used in investing activities of $57 for the three months ended March 31, 2017. 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 new definition will be applied prospectively to any transactions occurring within the period of adoption. We adopted this standard on January 1, 2018. 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, with these costs instead being capitalized as part of the acquired asset. In February 2017, the FASB issued an accounting standard update under FASB ASC Topic 610 “Other Income.” The amendments in this update provide guidance for partial sales of nonfinancial assets, including partial sales of real estate. Historically, GAAP contained several different accounting models to evaluate whether the transfer of certain assets qualified for sale treatment. This new standard reduces the number of potential accounting models that might apply and clarifies which model does apply in various circumstances. Partial sales of nonfinancial assets are common in the real estate industry and include transactions in which the seller retains an equity interest in the entity that owns the assets or has an equity interest in the buyer. This update was effective for interim and annual periods beginning after December 15, 2017. We adopted this standard as of January 1, 2018. While this is common in the real estate industry, we have never participated in a transaction of this nature, therefore, the adoption of this accounting standard did not have any impact on our consolidated financial statements. 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 could be impacted. The updated standard was adopted by us on January 1, 2018. The new definition will be applied prospectively to an award modified on or after the adoption date. The adoption of this accounting standard did not have a material impact on our consolidated financial statements. 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 transactions could be impacted. The updated standard is effective for us on January 1, 2019 with early adoption permitted. We early adopted this update on October 1, 2017. The adoption of this update did not have a material impact on our consolidated financial statements. In accordance with this accounting standard update, upon adoption, we revised our approach to recognizing interest expense for our interest rate swap that was designated as an off-market cash flow hedge. Rather than record interest expense based on the hypothetical derivative method with differences from actual net settlements reflected as ineffectiveness, we will record actual net settlements to interest expense adjusted for the straight-line amortization of the inception clean value of the hedging instrument over the hedge term. The result will be that no ineffectiveness will be recorded in future periods related to our off-market interest rate swap. Since we entered into the off-market hedging relationship in 2017, no transition entry was necessary upon adoption. Not Yet Adopted Within these Financial Statements In February 2016, the FASB issued an accounting standard classified under FASB ASC Topic 842, “Leases”. For lessees, this accounting standard amends lease accounting by requiring (1) the recognition of lease assets and lease liabilities for those leases classified as operating leases on the balance sheet and (2) additional disclosure about leasing arrangements. For lessors, the guidance under the new lease standard is substantially similar to existing accounting guidance. 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. |
Investments in Real Estate
Investments in Real Estate | 3 Months Ended |
Mar. 31, 2018 | |
Banking And Thrift [Abstract] | |
Investments in Real Estate | NOTE 3: Investments in Real Estate As of March 31, 2018, our investments in real estate consisted of 56 apartment properties with 15,280 units. The table below summarizes our investments in real estate: As of March 31, 2018 As of December 31, 2017 Depreciable Lives (In years) Land $ 209,164 $ 193,026 — Building 1,393,235 1,279,777 40 Furniture, fixtures and equipment 36,145 31,353 5-10 Total investment in real estate $ 1,638,544 $ 1,504,156 Accumulated depreciation (94,001 ) (84,097 ) Investments in real estate, net $ 1,544,543 $ 1,420,059 Acquisitions The below table summarizes the acquisitions for the three months ended March 31, 2018. Property Name Date of Purchase Location Units Contract Price Creekside Corners (1) 1/3/2018 Atlanta, GA 444 $ 43,901 Hartshire Lakes (1) 1/3/2018 Indianapolis, IN 272 27,597 The Chelsea 1/4/2018 Columbus, OH 312 36,750 Avalon Oaks 2/27/2018 Columbus, OH 235 23,000 Total 1,263 $ 131,248 (1) These properties were acquired as the last phase of our acquisition of a nine-community portfolio, totaling 2,352 units, which we agreed to acquire on September 3, 2017 for a total purchase price of $228,144. The following table summarizes the aggregate fair value of the assets and liabilities associated with the properties acquired during the three-month period ended March 31, 2018, on the date of acquisition. Description Fair Value of Assets Acquired During the Three Months Ended March 31, 2018 Assets acquired: Investments in real estate $ 129,598 Accounts receivable and other assets 242 Intangible assets 1,641 Total assets acquired (a) $ 131,481 Liabilities assumed: Indebtedness $ 39,362 Accounts payable and accrued expenses 566 Other liabilities 294 Total liabilities assumed $ 40,222 Estimated fair value of net assets acquired $ 91,259 (a) Included $241 of property related acquisition costs capitalized during the three months ended March 31, 2018. |
Indebtedness
Indebtedness | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Indebtedness | NOTE 4: Indebtedness The following tables contain summary information concerning our indebtedness as of March 31, 2018: Debt: Outstanding Principal Unamortized Discount and Debt Issuance Costs Carrying Amount Type Weighted Average Rate Weighted Average Maturity (in years) Unsecured credit facility (1) $ 190,005 $ (2,216 ) $ 187,789 Floating 3.0% 3.3 Term loan 100,000 (894 ) 99,106 Floating 3.2% 6.6 Mortgages 619,399 (3,008 ) 616,391 Fixed 3.8% 5.7 Total Debt $ 909,404 $ (6,118 ) $ 903,286 3.6% 5.3 (1) The unsecured credit facility total capacity is $300,000, of which $190,005 was outstanding as of March 31, 2018. Original maturities on or before December 31, Debt: 2018 2019 2020 2021 2022 Thereafter Unsecured credit facility $ - $ - $ - $ 140,005 $ 50,000 $ - Term loan - - - - - 100,000 Mortgages 2,509 5,581 8,726 103,764 74,977 423,842 Total $ 2,509 $ 5,581 $ 8,726 $ 243,769 $ 124,977 $ 523,842 As of March 31, 2018, we were in compliance with all financial covenants contained in documents governing our indebtedness. The following table contains summary information concerning our indebtedness as of December 31, 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) $ 104,005 $ (2,376 ) $ 101,629 Floating 3.0% 3.8 Term loan 100,000 (895 ) 99,105 Floating 3.2% 6.9 Mortgages 580,635 (2,927 ) 577,708 Fixed 3.7% 5.8 Total Debt $ 784,640 $ (6,198 ) $ 778,442 3.6% 5.7 (1) The secured credit facility total capacity was $300,000, of which $104,005 was outstanding as of December 31, 2017. On January 3, 2018, in connection with the acquisition of our Hartshire Lakes property, we assumed a $16,000 loan secured by a first mortgage on the property. The loan bears interest at a rate of 4.68% per annum, provides for monthly payments of interest only through January 2019, when principal and interest payments will be due monthly based on a 30-year amortization schedule, and matures January 2025. The loan was recorded at its fair value of $15,936 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. On January 3, 2018, in connection with the acquisition of our Creekside Corners property, we assumed a $23,500 loan secured by a first mortgage on the property. The loan bears interest at a rate of 4.56% per annum, provides for monthly payments of interest only through January 2019, when principal and interest payments will be due monthly based on a 30-year amortization schedule, and matures January 2025. The loan was recorded at its fair value of $23,426 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. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
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. 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. The following table summarizes the aggregate notional amount and estimated net fair value of our derivative instruments as of March 31, 2018 and December 31, 2017: As of March 31, 2018 As of December 31, 2017 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 $ 6,211 $ — $ 150,000 $ 4,700 $ — Interest rate collar 100,000 4,314 — 50,000 1,297 — 250,000 10,525 200,000 5,997 — Freestanding derivatives: Interest rate collar $ — $ — — 50,000 1,294 — Net fair value $ 250,000 $ 10,525 $ — $ 250,000 $ 7,291 $ — Interest Rate Swap 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. Upon our early adoption of accounting standard updates to ASC Topic 815, “Derivatives”, ineffectiveness is no longer measured or reported. Interest Rate Collar On November 17, 2017, in connection with our new $100,000 unsecured term loan, we purchased an interest rate collar with a notional value of $100,000, a 2.00% cap and 1.25% floor, and a maturity date of November 17, 2024. We designated $50,000 of the interest rate collar 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 concluded that this hedging relationship was and will continue to be highly effective using the hypothetical derivative method. The other $50,000 notional value interest rate collar was accounted for as a freestanding derivative from inception. On January 4, 2018, we designated this other $50,000 notional value interest rate collar as a cash flow hedge and determined that the hedge is highly effective in offsetting interest rate fluctuations associated with the identified indebtedness. During the quarter ended March 31, 2018, we recognized a $52 gain within other income (expense) in our consolidated statements of operations reflecting the change in fair value of the instrument. 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 $174 to earnings within interest expense for the three months ended March 31, 2018, respectively, and we expect $1,608 to be reclassified out of accumulated other comprehensive income to earnings over the next 12 months. |
Stockholder Equity and Noncontr
Stockholder Equity and Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholder Equity and Noncontrolling Interests | NOTE 6: Stockholder Equity and Noncontrolling Interests Stockholder Equity Effective the first quarter of 2018, we transitioned to a quarterly distribution of cash dividends on our common stock. On March 13, 2018, our board of directors declared a distribution of $0.18 per share, which was paid on April 20, 2018 to common shareholders of record as of April 4, 2018. During the three months ended March 31, 2018 and 2017, we also paid $181 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. For the quarter ended March 31, 2018, no shares were issued pursuant to the Sales Agreement and $137,907 remained available for issuance as of March 31, 2018. Noncontrolling Interest During the three months ended March 31, 2018, holders of IROP units exchanged 2,112,136 units for 2,112,136 shares of our common stock. Based on the cost basis of the IROP units on the dates of these exchanges, $14,308 was reclassified from noncontrolling interests to stockholders’ equity. As of March 31, 2018, 899,215 IROP units held by unaffiliated third parties remain outstanding. On March 13, 2018, our board of directors declared a distribution of $0.18 per unit, which was paid on April 20, 2018 to IROP LP unitholders of record as of April 4, 2018. |
Equity Compensation Plans
Equity Compensation Plans | 3 Months Ended |
Mar. 31, 2018 | |
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 8, 2018, our compensation committee awarded, to our non-executive officer employees, 93,700 restricted stock awards, valued at $8.37 per share, or $784 in the aggregate. The restricted stock awards vest over a three-year period. On February 23, 2018, our compensation committee awarded, to our named executive officers, 100,922 restricted stock awards and performance share units, or PSUs as set forth below. The restricted stock awards vest over a four-year period and were valued at $8.67 per share, or $875 in the aggregate. The number of PSUs earned will be based on attainment of certain performance criteria over a three-year period, with 454,151 PSUs granted for achieving the maximum performance criteria. The aggregate grant date fair value of the PSUs was $2,513. |
Related Party Transactions and
Related Party Transactions and Arrangements | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Arrangements | NOTE 8: Related Party Transactions and Arrangements On December 20, 2016, we completed our management internalization, which provided for transactions that changed us from being externally managed by our former advisor 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. Subsequent to our management internalization, from December 21, 2016 through June 20, 2017 we were party to a shared services agreement whereby RAIT provided us with certain back office services. For the three months ended March 31, 2018 and 2017, we incurred costs of $0 and $387, respectively, with respect to this shared services agreement which are included within general and administrative expenses in our consolidated statements of operations. Subsequent to our management internalization, we are party to property management agreements with RAIT under which we provide property management services to RAIT owned properties. For the three months ended March 31, 2018 and 2017, we earned property management fees from RAIT of $23 and $137, respectively. As of March 31, 2018 and December 31, 2017, we had no payables to or receivables from RAIT for shared service fees or property management fees. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 9: Earnings Per Share The following table presents a reconciliation of basic and diluted earnings per share for the three months ended March 31, 2018 and 2017: For the Three Months Ended March 31, 2018 2017 Net income $ 3,500 $ 4,245 (Income) loss allocated to non-controlling interests (88 ) (168 ) Net income allocable to common shares 3,412 4,077 Weighted-average shares outstanding—Basic 85,303,010 68,787,155 Weighted-average shares outstanding—Diluted 85,535,089 68,958,786 Earnings per share—Basic $ 0.04 $ 0.06 Earnings per share—Diluted $ 0.04 $ 0.06 Certain IROP units, stock appreciation rights, or SARs, and unvested restricted shares were excluded from the earnings per share computation because their effect would have been anti-dilutive, totaling 992,680 and 2,916,098 for the three months ended March 31, 2018 and 2017, respectively. |
Other Disclosures
Other Disclosures | 3 Months Ended |
Mar. 31, 2018 | |
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) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017 included in our Annual Report on Form 10-K, or the 2017 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 March 31, 2018 and December 31, 2017, we had $5,645 and $4,634, 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 March 31, 2018 and 2017, we recorded bad debt expense of $164 and $314, 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 Properties Effective January 1, 2018, FASB ASC Topic 805, “Business Combinations” was amended to clarify the definition of a business by more clearly outlining the requirements for an integrated set of assets and activities to be considered a business and by establishing a practical framework to determine when the integrated set of assets and activities is a business. Prior to January 1, 2018, the properties we acquired were generally considered businesses and were accounted for as business combinations. Subsequent to January 1, 2018, we expect the properties we acquire to generally not be considered businesses and, therefore, to be accounted for as asset acquisitions. Under business combination accounting, 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. Transaction costs and fees incurred related to the acquisition are expensed as incurred. Under asset acquisition accounting, the costs to acquire real estate, including transaction costs related to the acquisition, are accumulated and then allocated to the individual assets and liabilities acquired based upon their relative fair value. Under both business combination and asset acquisition accounting, t We estimate the fair value of acquired tangible assets (consisting of land, building and improvements), identified intangible assets (consisting of in-place leases), and assumed debt at the date of acquisition, based on the evaluation of information and estimates available at that date. The aggregate value of in-place leases is determined by evaluating various factors, including the terms of the leases that are in place and assumed lease-up periods. During the three months ended March 31, 2018, we acquired in-place leases with a value of $1,641, 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 months ended March 31, 2018 and 2017, we recorded $1,291 and $55, respectively, of amortization expense for intangible assets. For the three months ended March 31, 2018 and 2017, we wrote-off intangible assets of $1,963 and $0, respectively. As of March 31, 2018, we expect to record additional amortization expense on current intangible assets of $1,373 for the remainder of 2018. 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 months ended March 31, 2018 and 2017, we recorded $9,931 and $7,552 of depreciation expense, respectively. |
Revenue and Expenses | h. Revenue and Expenses Rental Income We apply FASB ASC Topic 840, “Leases” with respect to our accounting for rental income. We primarily lease apartments units under operating leases generally with terms of one year or less. Rental payments are generally due monthly and rental revenues are recognized on an accrual basis when earned. Tenant Reimbursement and Other Property Income We apply FASB ASC Topic 606, “Revenue from Contracts with Customers” with respect to tenant reimbursement and other property income. Tenant reimbursement income represents reimbursement from tenants for utility charges, while other property income includes cable, parking, trash, late fees, application fees, and other miscellaneous property related income. The performance obligations of providing residents with these services are stipulated within the lease agreement and may be provided over time or at a point in time. The services provided over time include cable, parking, and trash services, which are generally provided over a monthly period for the term of the respective lease. The services provided at a point in time include late fees and application fees. Given the short period of time over which this revenue is then recognized and since payments with respect to tenant reimbursement and other property income are generally due monthly, no contract assets or liabilities have been recognized. For the three months ended March 31, 2018 and 2017, we recognized revenues of $42 and $51, respectively, related to recoveries of lost rental revenue due to natural disasters and other insurable events from our insurance providers. Advertising Expenses For the three months ended March 31, 2018 and 2017, we incurred $533 and $426 of advertising expenses, respectively. |
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 March 31, 2018 As of December 31, 2017 Financial Instrument Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets Cash and cash equivalents $ 10,399 $ 10,399 $ 9,985 $ 9,985 Restricted cash 5,645 5,645 4,634 4,634 Derivative assets 10,525 10,525 7,291 7,291 Liabilities Debt: Unsecured credit facility 187,789 190,005 101,629 104,005 Term loan 99,106 100,000 99,105 100,000 Mortgages 616,391 589,414 577,708 564,333 |
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. |
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 months ended March 31, 2018 and 2017. 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 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. Subsequently, the FASB issued amendments to this accounting standard that provided further clarification. These standards amending FASB ASC Topic 606 were effective for annual reporting periods beginning after December 15, 2017. We adopted these accounting standard updates on January 1, 2018 using the modified retrospective approach. A majority of our revenue is derived from real estate lease contracts, which are specifically excluded from the scope of these standards. The portion of our revenue that was impacted by these standards included revenue recorded within the tenant reimbursement income, other property income, and property management and other income captions of our Consolidated Statements of Operations. The adoption of these standards did not have a material impact on our consolidated financial statements and no cumulative effect adjustment was recorded upon adoption. 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. Subsequently, the FASB issued amendments to this accounting standard that required companies to include restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling the statement of cash flows. The amendments were effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We adopted these standards as of January 1, 2018. The adoption of this accounting standard resulted in a decrease in net cash used in investing activities of $57 for the three months ended March 31, 2017. 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 new definition will be applied prospectively to any transactions occurring within the period of adoption. We adopted this standard on January 1, 2018. 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, with these costs instead being capitalized as part of the acquired asset. In February 2017, the FASB issued an accounting standard update under FASB ASC Topic 610 “Other Income.” The amendments in this update provide guidance for partial sales of nonfinancial assets, including partial sales of real estate. Historically, GAAP contained several different accounting models to evaluate whether the transfer of certain assets qualified for sale treatment. This new standard reduces the number of potential accounting models that might apply and clarifies which model does apply in various circumstances. Partial sales of nonfinancial assets are common in the real estate industry and include transactions in which the seller retains an equity interest in the entity that owns the assets or has an equity interest in the buyer. This update was effective for interim and annual periods beginning after December 15, 2017. We adopted this standard as of January 1, 2018. While this is common in the real estate industry, we have never participated in a transaction of this nature, therefore, the adoption of this accounting standard did not have any impact on our consolidated financial statements. 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 could be impacted. The updated standard was adopted by us on January 1, 2018. The new definition will be applied prospectively to an award modified on or after the adoption date. The adoption of this accounting standard did not have a material impact on our consolidated financial statements. 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 transactions could be impacted. The updated standard is effective for us on January 1, 2019 with early adoption permitted. We early adopted this update on October 1, 2017. The adoption of this update did not have a material impact on our consolidated financial statements. In accordance with this accounting standard update, upon adoption, we revised our approach to recognizing interest expense for our interest rate swap that was designated as an off-market cash flow hedge. Rather than record interest expense based on the hypothetical derivative method with differences from actual net settlements reflected as ineffectiveness, we will record actual net settlements to interest expense adjusted for the straight-line amortization of the inception clean value of the hedging instrument over the hedge term. The result will be that no ineffectiveness will be recorded in future periods related to our off-market interest rate swap. Since we entered into the off-market hedging relationship in 2017, no transition entry was necessary upon adoption. Not Yet Adopted Within these Financial Statements In February 2016, the FASB issued an accounting standard classified under FASB ASC Topic 842, “Leases”. For lessees, this accounting standard amends lease accounting by requiring (1) the recognition of lease assets and lease liabilities for those leases classified as operating leases on the balance sheet and (2) additional disclosure about leasing arrangements. For lessors, the guidance under the new lease standard is substantially similar to existing accounting guidance. 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. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 As of December 31, 2017 Financial Instrument Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets Cash and cash equivalents $ 10,399 $ 10,399 $ 9,985 $ 9,985 Restricted cash 5,645 5,645 4,634 4,634 Derivative assets 10,525 10,525 7,291 7,291 Liabilities Debt: Unsecured credit facility 187,789 190,005 101,629 104,005 Term loan 99,106 100,000 99,105 100,000 Mortgages 616,391 589,414 577,708 564,333 |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Banking And Thrift [Abstract] | |
Summary of Investments in Real Estate | As of March 31, 2018, our investments in real estate consisted of 56 apartment properties with 15,280 units. The table below summarizes our investments in real estate: As of March 31, 2018 As of December 31, 2017 Depreciable Lives (In years) Land $ 209,164 $ 193,026 — Building 1,393,235 1,279,777 40 Furniture, fixtures and equipment 36,145 31,353 5-10 Total investment in real estate $ 1,638,544 $ 1,504,156 Accumulated depreciation (94,001 ) (84,097 ) Investments in real estate, net $ 1,544,543 $ 1,420,059 |
Summary of Acquisitions | The below table summarizes the acquisitions for the three months ended March 31, 2018. Property Name Date of Purchase Location Units Contract Price Creekside Corners (1) 1/3/2018 Atlanta, GA 444 $ 43,901 Hartshire Lakes (1) 1/3/2018 Indianapolis, IN 272 27,597 The Chelsea 1/4/2018 Columbus, OH 312 36,750 Avalon Oaks 2/27/2018 Columbus, OH 235 23,000 Total 1,263 $ 131,248 (1) These properties were acquired as the last phase of our acquisition of a nine-community portfolio, totaling 2,352 units, which we agreed to acquire on September 3, 2017 for a total purchase price of $228,144. |
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 three-month period ended March 31, 2018, on the date of acquisition. Description Fair Value of Assets Acquired During the Three Months Ended March 31, 2018 Assets acquired: Investments in real estate $ 129,598 Accounts receivable and other assets 242 Intangible assets 1,641 Total assets acquired (a) $ 131,481 Liabilities assumed: Indebtedness $ 39,362 Accounts payable and accrued expenses 566 Other liabilities 294 Total liabilities assumed $ 40,222 Estimated fair value of net assets acquired $ 91,259 (a) Included $241 of property related acquisition costs capitalized during the three months ended March 31, 2018. |
Indebtedness (Tables)
Indebtedness (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary Information Concerning Indebtedness | The following tables contain summary information concerning our indebtedness as of March 31, 2018: Debt: Outstanding Principal Unamortized Discount and Debt Issuance Costs Carrying Amount Type Weighted Average Rate Weighted Average Maturity (in years) Unsecured credit facility (1) $ 190,005 $ (2,216 ) $ 187,789 Floating 3.0% 3.3 Term loan 100,000 (894 ) 99,106 Floating 3.2% 6.6 Mortgages 619,399 (3,008 ) 616,391 Fixed 3.8% 5.7 Total Debt $ 909,404 $ (6,118 ) $ 903,286 3.6% 5.3 (1) The unsecured credit facility total capacity is $300,000, of which $190,005 was outstanding as of March 31, 2018. Original maturities on or before December 31, Debt: 2018 2019 2020 2021 2022 Thereafter Unsecured credit facility $ - $ - $ - $ 140,005 $ 50,000 $ - Term loan - - - - - 100,000 Mortgages 2,509 5,581 8,726 103,764 74,977 423,842 Total $ 2,509 $ 5,581 $ 8,726 $ 243,769 $ 124,977 $ 523,842 As of March 31, 2018, we were in compliance with all financial covenants contained in documents governing our indebtedness. The following table contains summary information concerning our indebtedness as of December 31, 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) $ 104,005 $ (2,376 ) $ 101,629 Floating 3.0% 3.8 Term loan 100,000 (895 ) 99,105 Floating 3.2% 6.9 Mortgages 580,635 (2,927 ) 577,708 Fixed 3.7% 5.8 Total Debt $ 784,640 $ (6,198 ) $ 778,442 3.6% 5.7 (1) The secured credit facility total capacity was $300,000, of which $104,005 was outstanding as of December 31, 2017. |
Derivative Financial Instrume22
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and December 31, 2017: As of March 31, 2018 As of December 31, 2017 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 $ 6,211 $ — $ 150,000 $ 4,700 $ — Interest rate collar 100,000 4,314 — 50,000 1,297 — 250,000 10,525 200,000 5,997 — Freestanding derivatives: Interest rate collar $ — $ — — 50,000 1,294 — Net fair value $ 250,000 $ 10,525 $ — $ 250,000 $ 7,291 $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings Per Share | The following table presents a reconciliation of basic and diluted earnings per share for the three months ended March 31, 2018 and 2017: For the Three Months Ended March 31, 2018 2017 Net income $ 3,500 $ 4,245 (Income) loss allocated to non-controlling interests (88 ) (168 ) Net income allocable to common shares 3,412 4,077 Weighted-average shares outstanding—Basic 85,303,010 68,787,155 Weighted-average shares outstanding—Diluted 85,535,089 68,958,786 Earnings per share—Basic $ 0.04 $ 0.06 Earnings per share—Diluted $ 0.04 $ 0.06 |
Organization - Additional Infor
Organization - Additional Information (Detail) | Mar. 31, 2018Property |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of multifamily properties owned | 56 |
Number of units located with multifamily properties | 15,280 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Significant Accounting Policies [Line Items] | |||
Federal Deposit Insurance Corporation deposit insurance limit per institution | $ 250,000 | ||
Restricted cash | 5,645,000 | $ 4,634,000 | |
Bad debt expense | 164,000 | $ 314,000 | |
Amortization expense for intangible assets | 1,291,000 | 55,000 | |
Recorded wrote-off intangible assets | 1,963,000 | 0 | |
Additional amortization expense on current intangible assets | 1,373,000 | ||
Depreciation expense | 9,931,000 | 7,552,000 | |
Recognized contract assets | 0 | ||
Recognized contract liabilities | 0 | ||
Advertising expenses | 533,000 | 426,000 | |
Income tax expense | $ 0 | 0 | |
Taxable income distributable to stockholders | 90.00% | ||
Decrease in net cash used in investing activities due to new accounting standard adoption | $ (94,251,000) | (31,059,000) | |
ASC Topic 230 | |||
Significant Accounting Policies [Line Items] | |||
Decrease in net cash used in investing activities due to new accounting standard adoption | 57,000 | ||
Natural Disasters and Other Insurable Events | |||
Significant Accounting Policies [Line Items] | |||
Rent revenue recognized | $ 42,000 | $ 51,000 | |
Building and Building Improvements | |||
Significant Accounting Policies [Line Items] | |||
Depreciable Lives | 40 years | ||
Leases Acquired In Place | |||
Significant Accounting Policies [Line Items] | |||
Acquisition of above-market in-place leases | $ 1,641,000 | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Cash And Cash Equivalents Maturity Period | 3 months | ||
Maximum | Equipment and Fixtures | |||
Significant Accounting Policies [Line Items] | |||
Depreciable Lives | 10 years | ||
Minimum | Equipment and Fixtures | |||
Significant Accounting Policies [Line Items] | |||
Depreciable Lives | 5 years |
Summary of Significant Accoun26
Summary of Significant Accounting Policies - Schedule of Carrying Amount and Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | ||
Assets | ||||
Cash and cash equivalents, Carrying Amount | $ 10,399 | $ 9,985 | ||
Restricted cash, Carrying Amount | 5,645 | 4,634 | ||
Derivative assets, Carrying Amount | 10,525 | 7,291 | ||
Cash and cash equivalents, Estimated Fair Value | 10,399 | 9,985 | ||
Restricted cash, Estimated Fair Value | 5,645 | 4,634 | ||
Derivative assets, Estimated Fair Value | 10,525 | 7,291 | ||
Liabilities | ||||
Indebtedness, net of unamortized discount and deferred financing costs | 903,286 | 778,442 | ||
Unsecured Credit Facility | ||||
Liabilities | ||||
Indebtedness, net of unamortized discount and deferred financing costs | 187,789 | [1] | 101,629 | [2] |
Indebtedness, net of unamortized discount and deferred financing costs, estimated fair value | 190,005 | 104,005 | ||
Term Loan | ||||
Liabilities | ||||
Indebtedness, net of unamortized discount and deferred financing costs | 99,106 | 99,105 | ||
Indebtedness, net of unamortized discount and deferred financing costs, estimated fair value | 100,000 | 100,000 | ||
Mortgages | ||||
Liabilities | ||||
Indebtedness, net of unamortized discount and deferred financing costs | 616,391 | 577,708 | ||
Indebtedness, net of unamortized discount and deferred financing costs, estimated fair value | $ 589,414 | $ 564,333 | ||
[1] | The unsecured credit facility total capacity is $300,000, of which $190,005 was outstanding as of March 31, 2018. | |||
[2] | The secured credit facility total capacity was $300,000, of which $104,005 was outstanding as of December 31, 2017. |
Investments in Real Estate - Ad
Investments in Real Estate - Additional Iniformation (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)Property | |
Real Estate Properties Base Purchase Price [Abstract] | |
Number of multifamily properties owned | 56 |
Number of units located with multifamily properties | 15,280 |
Acquisition costs related to property | $ | $ 241 |
Summary of Investments in Real
Summary of Investments in Real Estate (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Real Estate Properties [Line Items] | ||
Land | $ 209,164 | $ 193,026 |
Building | 1,393,235 | 1,279,777 |
Furniture, fixtures and equipment | 36,145 | 31,353 |
Total investment in real estate | 1,638,544 | 1,504,156 |
Accumulated depreciation | (94,001) | (84,097) |
Investments in real estate, net | $ 1,544,543 | $ 1,420,059 |
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 | 3 Months Ended | |
Mar. 31, 2018USD ($)Property | ||
Business Acquisition [Line Items] | ||
Units | Property | 1,263 | |
Contract Price | $ | $ 131,248 | |
Creekside Corners | Atlanta, GA | ||
Business Acquisition [Line Items] | ||
Date of Purchase | Jan. 3, 2018 | [1] |
Units | Property | 444 | [1] |
Contract Price | $ | $ 43,901 | [1] |
Hartshire Lakes | Indianapolis, IN | ||
Business Acquisition [Line Items] | ||
Date of Purchase | Jan. 3, 2018 | [1] |
Units | Property | 272 | [1] |
Contract Price | $ | $ 27,597 | [1] |
The Chelsea | Columbus, OH | ||
Business Acquisition [Line Items] | ||
Date of Purchase | Jan. 4, 2018 | |
Units | Property | 312 | |
Contract Price | $ | $ 36,750 | |
Avalon Oaks | Columbus, OH | ||
Business Acquisition [Line Items] | ||
Date of Purchase | Feb. 27, 2018 | |
Units | Property | 235 | |
Contract Price | $ | $ 23,000 | |
[1] | These properties were acquired as the last phase of our acquisition of a nine-community portfolio, totaling 2,352 units, which we agreed to acquire on September 3, 2017 for a total purchase price of $228,144 |
Summary of Acquisitions (Parent
Summary of Acquisitions (Parenthetical) (Detail) $ in Thousands | Sep. 03, 2017USD ($)Property | Mar. 31, 2018USD ($)Property |
Business Acquisition [Line Items] | ||
Number of units in real estate properties acquired | Property | 1,263 | |
Purchase Price | $ | $ 131,248 | |
Acquisition of Nine-Property Portfolio First Phase Acquisition | ||
Business Acquisition [Line Items] | ||
Number of units in real estate properties acquired | Property | 2,352 | |
Purchase Price | $ | $ 228,144 |
Summary of Aggregate Fair Value
Summary of Aggregate Fair Value of Assets and Liabilities (Detail) $ in Thousands | Mar. 31, 2018USD ($) | |
Assets acquired: | ||
Investments in real estate | $ 129,598 | |
Accounts receivable and other assets | 242 | |
Intangible assets | 1,641 | |
Total assets acquired | 131,481 | [1] |
Liabilities assumed: | ||
Indebtedness | 39,362 | |
Accounts payable and accrued expenses | 566 | |
Other liabilities | 294 | |
Total liabilities assumed | 40,222 | |
Estimated fair value of net assets acquired | $ 91,259 | |
[1] | Included $241 of property related acquisition costs capitalized during the three months ended March 31, 2018. |
Summary Information Concerning
Summary Information Concerning Indebtedness (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | |||
Debt Instrument [Line Items] | ||||
Outstanding Principal | $ 909,404 | $ 784,640 | ||
Unamortized Discount and Debt Issuance Costs | (6,118) | (6,198) | ||
Carrying Amount | $ 903,286 | $ 778,442 | ||
Weighted Average Rate | 3.60% | 3.60% | ||
Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Maturity (in years) | 5 years 3 months 18 days | 5 years 8 months 12 days | ||
Mortgages | ||||
Debt Instrument [Line Items] | ||||
Outstanding Principal | $ 619,399 | $ 580,635 | ||
Unamortized Discount and Debt Issuance Costs | (3,008) | (2,927) | ||
Carrying Amount | $ 616,391 | $ 577,708 | ||
Type | Fixed | Fixed | ||
Weighted Average Rate | 3.80% | 3.70% | ||
Mortgages | Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Maturity (in years) | 5 years 8 months 12 days | 5 years 9 months 18 days | ||
Unsecured Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Outstanding Principal | $ 190,005 | [1] | $ 104,005 | [2] |
Unamortized Discount and Debt Issuance Costs | (2,216) | [1] | (2,376) | [2] |
Carrying Amount | $ 187,789 | [1] | $ 101,629 | [2] |
Type | Floating | [1] | Floating | [2] |
Weighted Average Rate | 3.00% | [1] | 3.00% | [2] |
Unsecured Credit Facility | Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Maturity (in years) | 3 years 3 months 18 days | [1] | 3 years 9 months 18 days | [2] |
Term Loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Principal | $ 100,000 | $ 100,000 | ||
Unamortized Discount and Debt Issuance Costs | (894) | (895) | ||
Carrying Amount | $ 99,106 | $ 99,105 | ||
Type | Floating | Floating | ||
Weighted Average Rate | 3.20% | 3.20% | ||
Term Loan | Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Maturity (in years) | 6 years 7 months 6 days | 6 years 10 months 24 days | ||
[1] | The unsecured credit facility total capacity is $300,000, of which $190,005 was outstanding as of March 31, 2018. | |||
[2] | The secured credit facility total capacity was $300,000, of which $104,005 was outstanding as of December 31, 2017. |
Summary Information Concernin33
Summary Information Concerning Indebtedness (Parenthetical) (Detail) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | ||
Debt Instrument [Line Items] | ||||
Outstanding Principal | $ 909,404,000 | $ 784,640,000 | ||
Unsecured Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Secured credit facility borrowing capacity | 300,000,000 | |||
Outstanding Principal | $ 190,005,000 | [1] | 104,005,000 | [2] |
Secured Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Secured credit facility borrowing capacity | 300,000,000 | |||
Outstanding Principal | $ 104,005,000 | |||
[1] | The unsecured credit facility total capacity is $300,000, of which $190,005 was outstanding as of March 31, 2018. | |||
[2] | The secured credit facility total capacity was $300,000, of which $104,005 was outstanding as of December 31, 2017. |
Maturity of Indebtedness (Detai
Maturity of Indebtedness (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Debt Instrument [Line Items] | |
2,018 | $ 2,509 |
2,019 | 5,581 |
2,020 | 8,726 |
2,021 | 243,769 |
2,022 | 124,977 |
Thereafter | 523,842 |
Mortgages | |
Debt Instrument [Line Items] | |
2,018 | 2,509 |
2,019 | 5,581 |
2,020 | 8,726 |
2,021 | 103,764 |
2,022 | 74,977 |
Thereafter | 423,842 |
Unsecured Credit Facility | |
Debt Instrument [Line Items] | |
2,021 | 140,005 |
2,022 | 50,000 |
Term Loan | |
Debt Instrument [Line Items] | |
Thereafter | $ 100,000 |
Indebtedness - Additional Infor
Indebtedness - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 03, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Outstanding Principal | $ 909,404 | $ 784,640 | |
Hartshire Lakes | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | $ 16,000 | ||
Debt interest rate | 4.68% | ||
Interest payment period | monthly | ||
Weighted Average Maturity (in years) | 30 years | ||
Maturity date | Jan. 31, 2025 | ||
Outstanding Principal, fair value | $ 15,936 | ||
Creekside Corners | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | $ 23,500 | ||
Debt interest rate | 4.56% | ||
Interest payment period | monthly | ||
Weighted Average Maturity (in years) | 30 years | ||
Maturity date | Jan. 31, 2025 | ||
Outstanding Principal, fair value | $ 23,426 |
Derivative Financial Instrume36
Derivative Financial Instruments - Summary of Aggregate Amount and Estimated Net Fair Value of Derivative Instruments (Detail) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Nov. 17, 2017 | Jun. 24, 2016 |
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative, notional amount | $ 250,000,000 | $ 250,000,000 | ||
Fair Value of Assets | 10,525,000 | 7,291,000 | ||
Fair Value of Assets | 7,291,000 | |||
Interest Rate Swap | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative, notional amount | $ 150,000 | |||
Cash Flow Hedge | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative, notional amount | 250,000,000 | 200,000,000 | ||
Fair Value of Assets | 10,525,000 | 5,997,000 | ||
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 | 6,211,000 | 4,700,000 | ||
Cash Flow Hedge | Interest Rate Collar | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative, notional amount | 100,000,000 | 50,000,000 | $ 100,000,000 | |
Fair Value of Assets | $ 4,314,000 | 1,297,000 | ||
Freestanding Derivatives | Interest Rate Collar | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative, notional amount | 50,000,000 | $ 50,000,000 | ||
Fair Value of Assets | $ 1,294,000 |
Derivative Financial Instrume37
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | Nov. 17, 2017 | Jun. 24, 2016 | Mar. 31, 2018 | Mar. 31, 2019 | Jan. 04, 2018 | Dec. 31, 2017 | Apr. 17, 2017 |
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative, notional amount | $ 250,000,000 | $ 250,000,000 | |||||
Derivative, strike rate for the interest rate swap contract | 1.145% | 1.1325% | |||||
Realized gains on interest rate hedges reclassified to earnings | 174,000 | ||||||
Unsecured Term Loan | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Secured credit facility borrowing capacity | $ 100,000,000 | ||||||
Cash Flow Hedge | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative, notional amount | 250,000,000 | 200,000,000 | |||||
Freestanding Derivatives | Other Income (Expense) | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Recognition of hedge ineffectiveness | 52,000 | ||||||
Interest Rate Swap | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative, notional amount | $ 150,000 | ||||||
Derivative, maturity date | Jun. 17, 2021 | ||||||
Recognition of hedge ineffectiveness | 0 | ||||||
Interest Rate Swap | Cash Flow Hedge | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative, notional amount | 150,000,000 | 150,000,000 | |||||
Interest Rate Collar | Cash Flow Hedge | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative, notional amount | $ 100,000,000 | $ 100,000,000 | 50,000,000 | ||||
Derivative, maturity date | Nov. 17, 2024 | ||||||
Interest rate cap strike rate | 2.00% | ||||||
Floor interest rate | 1.25% | ||||||
Interest Rate Collar | Cash Flow Hedge | Designated | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative, notional amount | $ 50,000,000 | ||||||
Interest Rate Collar | Freestanding Derivatives | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative, notional amount | $ 50,000,000 | $ 50,000,000 | |||||
Interest Rate Collar | Freestanding Derivatives | Designated | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative, notional amount | $ 50,000,000 | ||||||
Interest Rate Swaps and Caps | Cash Flow Hedge | Scenario, Forecast | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Reclassified out of accumulated other comprehensive income to earnings, amount | $ 1,608,000 |
Stockholder Equity and Noncon38
Stockholder Equity and Noncontrolling Interests - Additional Information (Detail) - USD ($) | Mar. 13, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Aug. 04, 2017 |
Class Of Stock [Line Items] | ||||
Dividends paid | $ 181,000 | $ 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 | 0 | |||
At-the-market agreement to sell common shares, remaining offer price | $ 137,907,000 | |||
Limited partnership interest received in exchange for issuance of common stock | 2,112,136 | |||
Conversion of noncontrolling interest to common shares | $ 14,308,000 | |||
OP Units outstanding | 899,215 | |||
Common Shares | ||||
Class Of Stock [Line Items] | ||||
Conversion of noncontrolling interest to common shares (in Shares) | 2,112,136 | |||
Conversion of noncontrolling interest to common shares | $ 21,000 | |||
Noncontrolling Interests | ||||
Class Of Stock [Line Items] | ||||
Conversion of noncontrolling interest to common shares | $ (14,308,000) | |||
Dividend Declared | ||||
Class Of Stock [Line Items] | ||||
Declaration date | Mar. 13, 2018 | |||
Dividend declared per share | $ 0.18 | |||
Payment date | Apr. 20, 2018 | |||
Record date | Apr. 4, 2018 | |||
Dividend Declared | Noncontrolling Interests | ||||
Class Of Stock [Line Items] | ||||
Declaration date | Mar. 13, 2018 | |||
Dividend declared per share | $ 0.18 | |||
Payment date | Apr. 20, 2018 | |||
Record date | Apr. 4, 2018 |
Equity Compensation Plans - Add
Equity Compensation Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Feb. 23, 2018 | Feb. 08, 2018 | May 31, 2016 | Mar. 31, 2018 | Dec. 31, 2017 |
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 | 4 years | 3 years | |||
Weighted average fair value, granted | $ 8.67 | ||||
Grant date fair value | $ 875 | ||||
Restricted Stock | Non Executive Officer Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued | 93,700 | ||||
Weighted average fair value, granted | $ 8.37 | ||||
Grant date fair value | $ 784 | ||||
Restricted Stock Awards And Performance Share Units | Executive Officers | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued | 100,922 | ||||
Performance Share Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards vesting period | 3 years | ||||
Shares issued | 454,151 | ||||
Grant date fair value | $ 2,513 | ||||
Long Term Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards vesting period | 3 years |
Related Party Transactions an40
Related Party Transactions and Arrangements - Additional Information (Detail) - USD ($) | Oct. 05, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
Common Shares | ||||
Related Party Transaction [Line Items] | ||||
Common stock repurchased and retired shares | 41,912 | |||
R A I T Financial Trust | ||||
Related Party Transaction [Line Items] | ||||
Asset management fees earned | $ 23,000 | $ 137,000 | ||
Service fees or property management fees payable or receivable | 0 | $ 0 | ||
R A I T Financial Trust | Common Shares | ||||
Related Party Transaction [Line Items] | ||||
Common stock repurchased and retired shares | 7,269,719 | |||
Shares Services Agreement | ||||
Related Party Transaction [Line Items] | ||||
Cost incurred for service provided | $ 0 | $ 387,000 | ||
Term of agreement | December 21, 2016 through June 20, 2017 |
Reconciliation of Basic and Dil
Reconciliation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income | $ 3,500 | $ 4,245 |
(Income) loss allocated to non-controlling interests | (88) | (168) |
Net income allocable to common shares | $ 3,412 | $ 4,077 |
Weighted-average shares outstanding—Basic | 85,303,010 | 68,787,155 |
Weighted-average shares outstanding—Diluted | 85,535,089 | 68,958,786 |
Basic | $ 0.04 | $ 0.06 |
Diluted | $ 0.04 | $ 0.06 |
Earning Per Share - Additional
Earning Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 992,680 | 2,916,098 |