Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 29, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | IRT | |
Entity Registrant Name | INDEPENDENCE REALTY TRUST, INC. | |
Entity Central Index Key | 0001466085 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 90,190,145 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-36041 | |
Entity Tax Identification Number | 264567130 | |
Entity Address, Address Line One | 1835 Market Street | |
Entity Address, Address Line Two | Suite 2601 | |
Entity Address, City or Town | Philadelphia | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19103 | |
City Area Code | (267) | |
Local Phone Number | 270-4800 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Investments in real estate: | ||
Investments in real estate, at cost | $ 1,704,769 | $ 1,660,423 |
Accumulated depreciation | (136,488) | (112,270) |
Investments in real estate, net | 1,568,281 | 1,548,153 |
Real estate held for sale | 50,494 | 77,285 |
Cash and cash equivalents | 11,060 | 9,316 |
Restricted cash | 7,780 | 6,729 |
Other assets | 16,364 | 8,802 |
Derivative assets | 1,558 | 8,307 |
Intangible assets, net of accumulated amortization of $105 and $787, respectively | 210 | 744 |
Total Assets | 1,655,747 | 1,659,336 |
LIABILITIES AND EQUITY: | ||
Indebtedness, net of unamortized deferred financing costs of $6,139 and $5,927, respectively | 989,499 | 985,488 |
Accounts payable and accrued expenses | 26,374 | 22,815 |
Accrued interest payable | 691 | 719 |
Dividends payable | 16,285 | 16,162 |
Derivative liabilities | 7,394 | |
Other liabilities | 7,595 | 4,107 |
Total Liabilities | 1,047,838 | 1,029,291 |
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, 89,932,418 and 89,184,443 shares issued and outstanding, including 339,525 and 303,819 unvested restricted common share awards, respectively | 899 | 892 |
Additional paid-in capital | 749,552 | 742,429 |
Accumulated other comprehensive income (loss) | (11,769) | 2,016 |
Retained earnings (accumulated deficit) | (137,539) | (122,342) |
Total stockholders’ equity | 601,143 | 622,995 |
Noncontrolling interests | 6,766 | 7,050 |
Total Equity | 607,909 | 630,045 |
Total Liabilities and Equity | $ 1,655,747 | $ 1,659,336 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Intangible assets, accumulated amortization | $ 105 | $ 787 |
Indebtedness, unamortized deferred financing costs | $ 6,139 | $ 5,927 |
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 | 89,932,418 | 89,184,443 |
Common stock, shares outstanding | 89,932,418 | 89,184,443 |
Unvested restricted common share awards | 339,525 | 303,819 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
REVENUE: | ||||
Rental and other property revenue | $ 50,848 | $ 46,734 | $ 100,313 | $ 92,350 |
Other revenue | 108 | 155 | 183 | 294 |
Total revenue | 50,956 | 46,889 | 100,496 | 92,644 |
EXPENSES: | ||||
Property operating expenses | $ 20,072 | $ 18,703 | $ 39,958 | $ 37,121 |
Type of Cost, Good or Service [Extensible List] | us-gaap:AssetManagement1Member | us-gaap:AssetManagement1Member | us-gaap:AssetManagement1Member | us-gaap:AssetManagement1Member |
Property management expenses | $ 2,062 | $ 1,592 | $ 3,875 | $ 3,275 |
General and administrative expenses | 3,538 | 2,872 | 6,645 | 5,606 |
Depreciation and amortization expense | 12,721 | 11,583 | 25,168 | 22,807 |
Total expenses | 38,393 | 34,750 | 75,646 | 68,809 |
Interest expense | (9,849) | (8,594) | (19,570) | (16,934) |
Other income | 144 | |||
Gain (loss) on sale of assets | 12,142 | 12,142 | ||
Net income: | 14,856 | 3,545 | 17,422 | 7,045 |
Income allocated to noncontrolling interest | (147) | (36) | (173) | (124) |
Net income allocable to common shares | $ 14,709 | $ 3,509 | $ 17,249 | $ 6,921 |
Earnings per share: | ||||
Basic | $ 0.16 | $ 0.04 | $ 0.19 | $ 0.08 |
Diluted | $ 0.16 | $ 0.04 | $ 0.19 | $ 0.08 |
Weighted-average shares: | ||||
Basic | 89,513,105 | 86,644,716 | 89,252,724 | 85,978,431 |
Diluted | 90,019,909 | 86,908,978 | 89,902,637 | 86,208,502 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 14,856 | $ 3,545 | $ 17,422 | $ 7,045 |
Other comprehensive income (loss): | ||||
Change in fair value of interest rate hedges | (10,023) | 1,532 | (14,950) | 4,887 |
Realized (gains) losses on interest rate hedges reclassified to earnings | 467 | (306) | 1,026 | (480) |
Total other comprehensive income (loss) | (9,556) | 1,226 | (13,924) | 4,407 |
Comprehensive income (loss) before allocation to noncontrolling interests | 5,300 | 4,771 | 3,498 | 11,452 |
Allocation to noncontrolling interests | (52) | (49) | (34) | (54) |
Comprehensive income (loss) | $ 5,248 | $ 4,722 | $ 3,464 | $ 11,398 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Shares | Additional Paid In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (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 | ||||||
Net income (loss) | 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 | $ 21 | 14,287 | 14,308 | (14,308) | |||
Conversion of noncontrolling interest to common shares (in Shares) | 2,112,136 | ||||||
Common dividends declared ($0.18 per share) | (15,772) | (15,772) | (15,772) | ||||
Distribution to noncontrolling interest declared ($0.18 per unit) | (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 | ||||||
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 | ||||||
Net income (loss) | 7,045 | ||||||
Other comprehensive income | 4,407 | ||||||
Ending Balance at Jun. 30, 2018 | 627,307 | $ 870 | 719,656 | 9,103 | (109,762) | 619,867 | 7,440 |
Ending Balance (in shares) at Jun. 30, 2018 | 87,044,121 | ||||||
Beginning Balance at Mar. 31, 2018 | 636,990 | $ 868 | 718,260 | 7,890 | (97,581) | 629,437 | 7,553 |
Beginning Balance (in Shares) at Mar. 31, 2018 | 86,973,397 | ||||||
Net income (loss) | 3,545 | 3,509 | 3,509 | 36 | |||
Other comprehensive income | 1,226 | 1,213 | 1,213 | 13 | |||
Stock compensation expense | 934 | $ 1 | 933 | 934 | |||
Stock compensation expense (in Shares) | 5,868 | ||||||
Issuance of common shares | 456 | $ 1 | 455 | 456 | |||
Issuance of common shares (in Shares) | 61,656 | ||||||
Repurchase of shares related to equity award tax withholding | 8 | 8 | 8 | ||||
Repurchase of shares related to equity award tax withholding (in shares) | 3,200 | ||||||
Common dividends declared ($0.18 per share) | (15,690) | (15,690) | (15,690) | ||||
Distribution to noncontrolling interest declared ($0.18 per unit) | (162) | (162) | |||||
Ending Balance at Jun. 30, 2018 | 627,307 | $ 870 | 719,656 | 9,103 | (109,762) | 619,867 | 7,440 |
Ending Balance (in shares) at Jun. 30, 2018 | 87,044,121 | ||||||
Beginning Balance at Dec. 31, 2018 | $ 630,045 | $ 892 | 742,429 | 2,016 | (122,342) | 622,995 | 7,050 |
Beginning Balance (in Shares) at Dec. 31, 2018 | 89,184,443 | 89,184,443 | |||||
Net income (loss) | $ 2,566 | 2,540 | 2,540 | 26 | |||
Other comprehensive income | (4,368) | (4,324) | (4,324) | (44) | |||
Stock compensation expense | 634 | $ 1 | 633 | 634 | |||
Stock compensation expense (in Shares) | 189,986 | ||||||
Issuance of common shares | 5,309 | $ 5 | 5,304 | 5,309 | |||
Issuance of common shares (in Shares) | 510,000 | ||||||
Repurchase of shares related to equity award tax withholding | (635) | (635) | (635) | ||||
Repurchase of shares related to equity award tax withholding (in shares) | (49,636) | ||||||
Common dividends declared ($0.18 per share) | (16,318) | (16,318) | (16,318) | ||||
Distribution to noncontrolling interest declared ($0.18 per unit) | (159) | (159) | |||||
Ending Balance at Mar. 31, 2019 | 617,074 | $ 898 | 747,731 | (2,308) | (136,120) | 610,201 | 6,873 |
Ending Balance (in shares) at Mar. 31, 2019 | 89,834,793 | ||||||
Beginning Balance at Dec. 31, 2018 | $ 630,045 | $ 892 | 742,429 | 2,016 | (122,342) | 622,995 | 7,050 |
Beginning Balance (in Shares) at Dec. 31, 2018 | 89,184,443 | 89,184,443 | |||||
Net income (loss) | $ 17,422 | ||||||
Other comprehensive income | (13,924) | ||||||
Ending Balance at Jun. 30, 2019 | $ 607,909 | $ 899 | 749,552 | (11,769) | (137,539) | 601,143 | 6,766 |
Ending Balance (in shares) at Jun. 30, 2019 | 89,932,418 | 89,932,418 | |||||
Beginning Balance at Mar. 31, 2019 | $ 617,074 | $ 898 | 747,731 | (2,308) | (136,120) | 610,201 | 6,873 |
Beginning Balance (in Shares) at Mar. 31, 2019 | 89,834,793 | ||||||
Net income (loss) | 14,856 | 14,709 | 14,709 | 147 | |||
Other comprehensive income | (9,556) | (9,461) | (9,461) | (95) | |||
Stock compensation expense | 1,099 | 1,099 | 1,099 | ||||
Stock compensation expense (in Shares) | 32,155 | ||||||
Issuance of common shares | 723 | $ 1 | 722 | 723 | |||
Issuance of common shares (in Shares) | 65,704 | ||||||
Repurchase of shares related to equity award tax withholding (in shares) | (234) | ||||||
Common dividends declared ($0.18 per share) | (16,128) | (16,128) | (16,128) | ||||
Distribution to noncontrolling interest declared ($0.18 per unit) | (159) | (159) | |||||
Ending Balance at Jun. 30, 2019 | $ 607,909 | $ 899 | $ 749,552 | $ (11,769) | $ (137,539) | $ 601,143 | $ 6,766 |
Ending Balance (in shares) at Jun. 30, 2019 | 89,932,418 | 89,932,418 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement Of Stockholders Equity [Abstract] | ||||
Common dividends declared per share | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 |
Distribution to noncontrolling interest declared per share | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | |
Cash flows from operating activities: | |||
Net income | $ 14,856 | $ 17,422 | $ 7,045 |
Adjustments to reconcile net income to cash flow from operating activities: | |||
Depreciation and amortization | 12,721 | 25,168 | 22,807 |
Amortization of deferred financing costs | 701 | 769 | |
Stock compensation expense | 1,708 | 1,404 | |
Gain on sale of assets | (12,142) | (12,142) | |
Amortization related to derivative instruments | 231 | (57) | |
Changes in assets and liabilities: | |||
Other assets | 369 | (510) | |
Accounts payable and accrued expenses | 2,445 | 4,192 | |
Accrued interest payable | (27) | 174 | |
Other liabilities | 225 | (127) | |
Net cash provided by (used in) operating activities | 36,100 | 35,697 | |
Cash flows from investing activities: | |||
Acquisition of real estate properties | (28,981) | (89,547) | |
Disposition of real estate properties | 20,761 | ||
Capital expenditures | (19,932) | (15,256) | |
Cash flow (used in) provided by investing activities | (28,152) | (104,803) | |
Cash flows from financing activities: | |||
Proceeds from unsecured credit facility and term loans | 104,060 | 99,000 | |
Unsecured credit facility repayments | (79,000) | (4,000) | |
Mortgage principal repayments | (1,987) | (1,566) | |
Payments for deferred financing costs | (984) | (9) | |
Proceeds from issuance of common stock | 6,032 | 456 | |
Distributions on common stock | (32,316) | (20,838) | |
Distributions to noncontrolling interests | (323) | (272) | |
Repurchase of shares related to equity award tax withholding | (635) | (337) | |
Cash flow (used in) provided by financing activities | (5,153) | 72,434 | |
Net change in cash and cash equivalents, and restricted cash | 2,795 | 3,328 | |
Cash and cash equivalents, and restricted cash, beginning of period | 16,045 | 14,619 | |
Cash and cash equivalents, and restricted cash, end of the period | 18,840 | 18,840 | 17,947 |
Reconciliation of cash, cash equivalents, and restricted cash to the Consolidated Balance Sheet | |||
Cash and cash equivalents | 11,060 | 11,060 | 10,896 |
Restricted cash | 7,780 | 7,780 | 7,051 |
Cash and cash equivalents, and restricted cash, end of the period | $ 18,840 | $ 18,840 | $ 17,947 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Organization | NOTE 1: Organization Independence Realty Trust, Inc. (“IRT”), is a self-administered and self-managed Maryland real estate investment trust, or REIT, which was formed on March 26, 2009. Our primary purposes are to acquire, own, operate, improve and manage multifamily apartment communities in non-gateway markets. As of June 30, 2019, we owned and operated 58 multifamily apartment properties, totaling 15,734 units across non-gateway U.S markets, including Atlanta, Louisville, Memphis, and Raleigh. 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 | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 included in our 2018 Annual Report on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our consolidated financial position and consolidated results of operations and cash flows are included. The results of operations for the interim periods presented are not necessarily indicative of the results for the full year. 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 June 30, 2019 and December 31, 2018, we had $7,780 and $6,729, respectively, of restricted cash. f. 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 management commits to a plan to sell, an active program to locate a buyer has been initiated, the sale is probable, and actions required to complete the plan of sale indicate that it is unlikely that significant changes to the plan of sale will be made or the plan of sale will be withdrawn. Allocation of Purchase Price of Acquired Assets The properties we acquire are generally accounted for as asset acquisitions. Under asset acquisition accounting, the costs to acquire real estate, including transaction costs related to the acquisition, are accumulated and then allocated to the individual assets and liabilities acquired based upon their relative fair value. 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. The value assigned to this intangible asset is amortized over the assumed lease up period, typically six months. During the three and six months ended June 30, 2019, we acquired in-place leases with a value of $316 as part of related property acquisitions that are discussed further in Note 3. For the three and six months ended June 30, 2019, we recorded $294 and $850, respectively, of amortization expense for intangible assets. For the three and six months ended June 30, 2018, we recorded $1,044 and $2,336, respectively, of amortization expense for intangible assets. For the three and six months ended June 30, 2019, we wrote-off intangible assets of $719 and $1,532, respectively. For the three and six months ended June 30, 2018, we wrote-off intangible assets of $0 and $1,963, respectively. As of June 30, 2019, we expect to record additional amortization expense on current in-place intangible assets of $210 for the remainder of 2019. Impairment of Long-Lived Assets Management evaluates the recoverability of our investment in real estate assets, including related identifiable intangible assets, in accordance with FASB ASC Topic 360, “Property, Plant and Equipment”. This statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that recoverability of the assets is not assured. Management reviews its long-lived assets on an ongoing basis and evaluates the recoverability of the carrying value when there is an indicator of impairment. An impairment charge is recorded when it is determined that the carrying value of the asset exceeds the fair value. The estimated cash flows used for the impairment analysis and the determination of estimated fair value are based on our plans for the respective assets and our views of market and economic conditions. The estimates consider matters such as current and historical rental rates, occupancies for the respective and/or comparable properties, and recent sales data for comparable properties. Changes in estimated future cash flows due to changes in our plans or views of market and economic conditions could result in recognition of impairment losses, which, under the applicable accounting guidance, could be substantial. Depreciation Expense Depreciation expense for real estate assets is computed using a straight-line method based on a life of 40 years for buildings and improvements and five to ten years for equipment and fixtures. For the three and six months ended June 30, 2019, we recorded $12,427 and $24,318 of depreciation expense, respectively. For the three and six months ended June 30, 2018, we recorded $10,539 and $20,471 of depreciation expense, respectively. g. Revenue and Expenses Rental and other property revenue We apply FASB ASC Topic 842, “Leases” with respect to our accounting for rental income. We primarily lease apartment units under operating leases generally with terms of one year or less. Rental payments are generally due monthly and rental revenues are recognized on an accrual basis when earned. We have elected to account for lease (i.e. fixed payments including base rent) and non-lease components (i.e. tenant reimbursements and other certain service fees) as a single combined operating lease component since (1) the timing and pattern of transfer of the lease and non-lease components is the same, (2) the lease component is the predominant element, and (3) the combined single lease component would be classified as an operating lease. As a result of this treatment, certain amounts classified within prior revenue captions tenant reimbursement income and other property income have been combined into rental and other property revenue in the consolidated statements of operations and prior period amounts have been adjusted to conform to current period presentation. Effective January 1, 2019, w e make ongoing estimates of the collectability of our For the three and six months ended June 30, 2019, we recognized revenues of $17 and $23, respectively, related to recoveries of lost rental revenue due to natural disasters and other insurable events from our insurance providers. For the three and six months ended June 30, 2018, we recognized revenues of $64 and $106, respectively, related to recoveries of lost rental revenue due to natural disasters and other insurable events from our insurance providers. Advertising Expenses In accordance with FASB ASC Topic 720, “Other Expenses”, we expense the costs of advertising as incurred. For the three and six months ended June 30, 2019, we incurred $603 and $1,151 of advertising expenses, respectively. For the three and six months ended June 30, 2018, we incurred $564 and $1,097 of advertising expenses, respectively. h. 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), 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. i. 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 term loans are classified as Level 2 fair value measurements within the fair value hierarchy. The fair value of mortgage indebtedness is based on a discounted cash flows valuation technique. As this technique utilizes current credit spreads, which are generally unobservable, this is classified as a Level 3 fair value measurement within the fair value hierarchy. We determine appropriate credit spreads based on the type of debt and its maturity. There were no transfers between levels in the fair value hierarchy for the six months ended June 30, 2019. The following table summarizes the carrying amount and the fair value of our financial instruments as of the periods indicated: As of June 30, 2019 As of December 31, 2018 Financial Instrument Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets Cash and cash equivalents $ 11,060 $ 11,060 $ 9,316 $ 9,316 Restricted cash 7,780 7,780 6,729 6,729 Derivative assets 1,558 1,558 8,307 8,307 Liabilities Debt: Unsecured credit facility 128,404 130,803 153,983 155,743 Term loans 298,522 300,000 248,380 250,000 Mortgages 562,573 563,918 583,125 577,112 Derivative liabilities 7,394 7,394 - - j. 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. k. Office Leases We apply FASB ASC Topic 842, “Leases”, which requires a lessee to recognize a right-of-use asset and a lease liability on the balance sheet at the lease commencement date for all leases, except those leases with terms of less than a year. We lease corporate office space under leases with terms of up to 10 years and that may include extension options, but that do not include any residual value guarantees or restrictive covenants. As of June 30, 2019, we have $3,113 of operating lease right-of-use assets and $3,206 of operating lease liabilities related to our corporate office leases. The operating lease right-of-use assets are presented within other assets and the operating lease liabilities are presented within other liabilities in our consolidated balance sheet. We recorded $167 and $279, respectively, of total operating lease expense during the three and six months ended June 30, 2019, which is recorded within property management expense and general and administrative expenses in our consolidated statements of operations. l. Income Taxes We have elected to be taxed as a REIT beginning with the taxable year ended December 31, 2011. Accordingly, we recorded no income tax expense for the three and six months ended June 30, 2019 and 2018. 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 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. 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 legacy lease accounting standards. This standard is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. In July 2018, the FASB issued an amendment to the new standard, which provides a package of practical expedients that (1) allows lessors to not separate lease and non-lease components in a contract and allocate the consideration in the contract to the separate components if both (i) the timing and pattern of revenue recognition for the non-lease component and the related lease component are the same and (ii) the combined single lease component would be classified as an operating lease and (2) provides a transition option that permits entities to not recast the comparative periods presented when transitioning to the standard. We adopted the new standard on January 1, 2019 using the modified retrospective approach and the package of practical expedients. We did not record a cumulative-effect adjustment on the effective date and all prior comparative periods are presented in accordance with legacy lease accounting standards. Our apartment leases, where we are lessor, continued to be accounted for as operating leases under the new standard and, therefore, there were not significant changes in accounting for these leases. For our various corporate office leases, where we are lessee, we recorded a $308 right of use asset and a lease liability on our consolidated balance sheets upon adoption. In June 2018, the FASB issued an accounting standard classified under FASB ASC Topic 718, “Compensation – Stock Compensation.” The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. As a result, the accounting for share-based payment award transactions could be impacted. 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. We adopted the new standard on January 1, 2019. As we have not issued share-based payments to non-employees since prior to our management internalization, the adoption of this standard has not had an effect on our consolidated financial statements. |
Investments in Real Estate
Investments in Real Estate | 6 Months Ended |
Jun. 30, 2019 | |
Banking And Thrift [Abstract] | |
Investments in Real Estate | NOTE 3: Investments in Real Estate As of June 30, 2019, our investments in real estate consisted of 58 apartment properties with 15,734 units. The table below summarizes our investments in real estate: As of June 30, 2019 As of December 31, 2018 Depreciable Lives (In years) Land $ 211,959 $ 209,111 — Building 1,409,776 1,384,810 40 Furniture, fixtures and equipment 83,034 66,502 5-10 Total investment in real estate $ 1,704,769 $ 1,660,423 Accumulated depreciation (136,488 ) (112,270 ) Investments in real estate, net $ 1,568,281 $ 1,548,153 As of June 30, 2019, we owned two properties that were classified as held for sale. These properties were sold on July 18, 2019 for $56,500. The table below summarizes our held for sale properties. Property Name Location Units Net Carrying Value Carrington Park Little Rock, AR 202 $ 20,747 Stonebridge at the Ranch Little Rock, AR 260 29,747 Total 462 $ 50,494 We had three properties classified as held for sale as of December 31, 2018. Acquisitions On April 30, 2019, we acquired a 224-unit property located in Atlanta, GA for $28,000. The following table summarizes the aggregate fair value of the assets and liabilities associated with the properties acquired during the six-month period ended June 30, 2019, on the date of acquisition, accounted for under FASB ASC Topic 805-50-15-3. Description Fair Value of Assets Acquired During The Six Months Ended June 30, 2019 Assets acquired: Investments in real estate (a) $ 27,770 Other assets 38 Intangible assets 316 Total assets acquired $ 28,124 Liabilities assumed: Accounts payable and accrued expenses $ 80 Other liabilities 108 Total liabilities assumed 188 Estimated fair value of net assets acquired $ 27,936 (a) Included $86 of property related acquisition costs capitalized during the six months ended June 30, 2019. In July 2019, we acquired a 264-unit property located in Tampa, FL, which we purchased for $48,000. Dispositions On April 30, 2019, we disposed of a 370-unit property located in Chicago, IL for $42,000. The property was previously held for sale. We recorded a gain of $12,131 for this property which is net of $2,029 of debt extinguishment costs. In July 2019, we disposed of a 202-unit property and a 260-unit property, both located in Little Rock, AR, for a combined sales price of $56,500. These properties were previously held for sale. |
Indebtedness
Indebtedness | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Indebtedness | NOTE 4: Indebtedness The following tables contain summary information concerning our indebtedness as of June 30, 2019: Debt: Outstanding Principal Unamortized Debt Issuance Costs Carrying Amount Type Weighted Average Rate Weighted Average Maturity (in years) Unsecured credit facility (1) $ 130,803 $ (2,399 ) $ 128,404 Floating 3.9% 3.9 Unsecured term loans 300,000 (1,478 ) 298,522 Floating 4.0% 4.8 Mortgages 564,835 (2,262 ) 562,573 Fixed 3.8% 4.6 Total Debt $ 995,638 $ (6,139 ) $ 989,499 3.9% 4.6 (1) The unsecured credit facility total capacity is $350,000, of which $130,803 was outstanding as of June 30, 2019. Original maturities on or before December 31, Debt: 2019 2020 2021 2022 2023 Thereafter Unsecured credit facility $ - $ - $ - $ - $ 130,803 $ - Unsecured term loans - - - - - 300,000 Mortgages 2,962 8,135 76,033 70,700 107,202 299,803 Total $ 2,962 $ 8,135 $ 76,033 $ 70,700 $ 238,005 $ 599,803 As of June 30, 2019, 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, 2018: Debt: Outstanding Unamortized Debt Issuance Costs Carrying Type Weighted Average Rate Weighted Average Maturity (in Unsecured credit facility (1) $ 155,743 $ (1,760 ) $ 153,983 Floating 3.9% 2.7 Unsecured term loans 250,000 (1,620 ) 248,380 Floating 4.0% 5.4 Mortgages 585,672 (2,547 ) 583,125 Fixed 3.8% 5.1 Total Debt $ 991,415 $ (5,927 ) $ 985,488 3.9% 4.8 (1) The unsecured credit facility total capacity was $300,000, of which $155,743 was outstanding as of December 31, 2018. Unsecured Credit Facility On May 9, 2019, we closed on a new $350,000 unsecured credit facility that consists entirely of a revolving line of credit (the “Unsecured Revolving Line of Credit”), refinancing and terminating the previous unsecured credit facility. We have the right to increase the aggregate amount of the Unsecured Revolving Line of Credit to up to $600,000. The maturity date on borrowings outstanding under the Unsecured Revolving Line of Credit is May 9, 2023, subject to our option to extend the revolving commitment for two additional 6-month periods under certain circumstances, including the payment of an extension fee. We may prepay the Unsecured Revolving Line of Credit, in whole or in part, at any time without a prepayment fee or penalty. At our option, borrowings under the Unsecured Revolving Line of Credit will bear interest at a rate equal to either (i) the 1-month LIBOR rate plus a margin of 125 to 200 basis points, or (ii) a base rate plus a margin of 25 to 100 basis points. The applicable margin is determined based upon our total consolidated leverage ratio, as defined in the agreements. At the time of closing, based on our leverage ratio, the margin spread to LIBOR was 155 basis points. We recognized the refinance as a modification of our prior unsecured credit facility and incurred deferred financing costs of $1,129 associated with this transaction. Mortgages On April 30, 2019, we extinguished a property mortgage in the amount of $18,850 in connection with the property disposition. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 5: Derivative Financial Instruments We have and may in the future 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 June 30, 2019 and December 31, 2018: As of June 30, 2019 As of December 31, 2018 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 $ 1,558 $ — $ 150,000 $ 4,751 $ — Interest rate collars 250,000 — 4,422 250,000 3,556 — Forward interest rate swap — — 2,972 — — — Total $ 400,000 $ 1,558 $ 7,394 $ 400,000 $ 8,307 $ — Forward interest rate swap On May 9, 2019, we entered into a forward-starting interest rate swap contract with a notional value of $150,000 and a strike of 2.176%. The forward interest rate swap has an effective date of June 17, 2021 and a maturity date of June 17, 2026. We designated this forward 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. 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 and collars that are considered highly effective hedges, we reclassified realized gains of $467 and $1,026 to earnings within interest expense for the three and six months ended June 30, 2019, respectively, and we expect $86 to be reclassified out of accumulated other comprehensive income to earnings over the next 12 months. |
Shareholder Equity and Noncontr
Shareholder Equity and Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Shareholder Equity and Noncontrolling Interests | NOTE 6: Stockholder Equity and Noncontrolling Interests Stockholder Equity On March 18, 2019, our board of directors declared a distribution of $0.18 per share, which was paid on April 25, 2019 to common shareholders of record as of March 29, 2019. On June 17, 2019, our board of directors declared a distribution of $0.18 per share, which was paid on July 25, 2019 to common shareholders of record as of June 28, 2019. During the three and six months ended June 30, 2019, we also paid $0 and $209, respectively, of dividends on restricted common share awards that vested during the period. During the three months ended June 30, 2019, we issued an aggregate of 65,704 shares under the ATM Sales Agreement at a weighted average price of $12.09, resulting in $778 of net proceeds, after deducting $16 of commissions. During the six months ended June 30, 2019, we issued an aggregate of 575,704 shares under the ATM Sales Agreement at a weighted average price of $10.80, resulting in $6,079 of net proceeds, after deducting $124 of commissions. Pursuant to the ATM Sales Agreement $109,038 remained available for issuance as of June 30, 2019. Noncontrolling Interest During the three and six months ended June 30, 2019, holders of IROP units did not exchange any units for shares of our common stock or cash. As of June 30, 2019, 881,107 IROP units held by unaffiliated third parties remain outstanding. On March 18, 2019, our board of directors declared a distribution of $0.18 per unit, which was paid on April 25, 2019 to IROP LP unitholders of record as of March 29, 2019. On June 17, 2019, our board of directors declared a distribution of $0.18 per unit, which was paid on July 25, 2019 to IROP LP unitholders of record as of June 28, 2019. |
Equity Compensation Plans
Equity Compensation Plans | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Compensation Plans | NOTE 7: Equity Compensation Plans In May 2016, our shareholders approved and our board of directors adopted an amended and restated Long Term Incentive Plan (the “Incentive Plan”), which provides for grants of awards to our employees, officers, directors, trustees, consultants or advisors (and those of our affiliates). The Incentive Plan authorizes the grant of restricted or unrestricted shares of our common stock, performance-based restricted share units (“PSUs”), non-qualified and incentive stock options, restricted stock units, stock appreciation rights (“SARs”), 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 have granted restricted shares, and PSUs, to our employees and employees of our former advisor. These awards generally vested over a three or four year period. In addition, we have granted unrestricted shares to our non-employee directors. These awards generally vested immediately. On February 6, 2019, our compensation committee awarded, to our non-executive officer employees, 92,925 restricted stock awards, valued at $10.35 per share, or $962 in the aggregate. These restricted stock awards vest over a three-year period. On March 7, 2019, our compensation committee awarded, to our named executive officers, 87,975 restricted stock awards and 263,929 PSUs. The restricted stock awards vest over a four-year period and were valued at $10.23 per share, or $900 in the aggregate. The number of PSUs earned will be based on attainment of certain performance criteria over a three-year period, the actual number of shares issuable ranging between 0% and 150% of the number of PSUs granted. The aggregate grant date fair value of the PSUs was $2,203. On May 23, 2019, our compensation committee granted stock under the Incentive Plan such that our non-employee directors received an aggregate of 32,844 shares of our common stock, valued at $360 using out closing stock price of $10.96. These awards vested immediately. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 8: Earnings Per Share The following table presents a reconciliation of basic and diluted earnings (loss) per share for the three and six months ended June 30, 2019 and 2018: For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Net income $ 14,856 $ 3,545 $ 17,422 $ 7,045 (Income) loss allocated to noncontrolling interests (147 ) (36 ) (173 ) (124 ) Net income allocable to common shares 14,709 3,509 17,249 6,921 Weighted-average shares outstanding—Basic 89,513,105 86,644,716 89,252,724 85,978,431 Weighted-average shares outstanding—Diluted 90,019,909 86,908,978 89,902,637 86,208,502 Earnings per share—Basic $ 0.16 $ 0.04 $ 0.19 $ 0.08 Earnings per share—Diluted $ 0.16 $ 0.04 $ 0.19 $ 0.08 Certain IROP units and unvested shares were excluded from the earnings (loss) per share computation because their effect would have been anti-dilutive, totaling 881,107 and 881,107 for the three and six months ended June 30, 2019, respectively, and 899,215 and 1,038,824 for the three and six months ended June 30, 2018, respectively. |
Other Disclosures
Other Disclosures | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Other Disclosures | NOTE 9: Other Disclosures Litigation We are subject to various legal proceedings and claims that arise in the ordinary course of our business operations. Matters which arise out of allegations of bodily injury, property damage, and employment practices are generally covered by insurance. While the resolution of these matters cannot be predicted with certainty, we currently believe the final outcome of such matters will not have a material adverse effect on our financial position, results of operations or cash flows. Loss Contingencies We record an accrual for loss contingencies when a loss is probable and the amount of the loss can be reasonably estimated. Management reviews these accruals quarterly and makes revisions based on changes in facts and circumstances. When a loss contingency is not both probable and reasonably estimable, management does not accrue the loss. However, if the loss (or an additional loss in excess of an earlier accrual) is at least a reasonable possibility and material, then management discloses a reasonable estimate of the possible loss, or range of loss, if such reasonable estimate can be made. If we cannot make a reasonable estimate of the possible loss, or range of loss, then a statement to that effect is disclosed. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 included in our 2018 Annual Report on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our consolidated financial position and consolidated results of operations and cash flows are included. The results of operations for the interim periods presented are not necessarily indicative of the results for the full year. |
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 June 30, 2019 and December 31, 2018, we had $7,780 and $6,729, respectively, of restricted cash. |
Investments in Real Estate | f. 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 management commits to a plan to sell, an active program to locate a buyer has been initiated, the sale is probable, and actions required to complete the plan of sale indicate that it is unlikely that significant changes to the plan of sale will be made or the plan of sale will be withdrawn. Allocation of Purchase Price of Acquired Assets The properties we acquire are generally accounted for as asset acquisitions. Under asset acquisition accounting, the costs to acquire real estate, including transaction costs related to the acquisition, are accumulated and then allocated to the individual assets and liabilities acquired based upon their relative fair value. 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. The value assigned to this intangible asset is amortized over the assumed lease up period, typically six months. During the three and six months ended June 30, 2019, we acquired in-place leases with a value of $316 as part of related property acquisitions that are discussed further in Note 3. For the three and six months ended June 30, 2019, we recorded $294 and $850, respectively, of amortization expense for intangible assets. For the three and six months ended June 30, 2018, we recorded $1,044 and $2,336, respectively, of amortization expense for intangible assets. For the three and six months ended June 30, 2019, we wrote-off intangible assets of $719 and $1,532, respectively. For the three and six months ended June 30, 2018, we wrote-off intangible assets of $0 and $1,963, respectively. As of June 30, 2019, we expect to record additional amortization expense on current in-place intangible assets of $210 for the remainder of 2019. Impairment of Long-Lived Assets Management evaluates the recoverability of our investment in real estate assets, including related identifiable intangible assets, in accordance with FASB ASC Topic 360, “Property, Plant and Equipment”. This statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that recoverability of the assets is not assured. Management reviews its long-lived assets on an ongoing basis and evaluates the recoverability of the carrying value when there is an indicator of impairment. An impairment charge is recorded when it is determined that the carrying value of the asset exceeds the fair value. The estimated cash flows used for the impairment analysis and the determination of estimated fair value are based on our plans for the respective assets and our views of market and economic conditions. The estimates consider matters such as current and historical rental rates, occupancies for the respective and/or comparable properties, and recent sales data for comparable properties. Changes in estimated future cash flows due to changes in our plans or views of market and economic conditions could result in recognition of impairment losses, which, under the applicable accounting guidance, could be substantial. Depreciation Expense Depreciation expense for real estate assets is computed using a straight-line method based on a life of 40 years for buildings and improvements and five to ten years for equipment and fixtures. For the three and six months ended June 30, 2019, we recorded $12,427 and $24,318 of depreciation expense, respectively. For the three and six months ended June 30, 2018, we recorded $10,539 and $20,471 of depreciation expense, respectively. |
Revenue and Expenses | g. Revenue and Expenses Rental and other property revenue We apply FASB ASC Topic 842, “Leases” with respect to our accounting for rental income. We primarily lease apartment units under operating leases generally with terms of one year or less. Rental payments are generally due monthly and rental revenues are recognized on an accrual basis when earned. We have elected to account for lease (i.e. fixed payments including base rent) and non-lease components (i.e. tenant reimbursements and other certain service fees) as a single combined operating lease component since (1) the timing and pattern of transfer of the lease and non-lease components is the same, (2) the lease component is the predominant element, and (3) the combined single lease component would be classified as an operating lease. As a result of this treatment, certain amounts classified within prior revenue captions tenant reimbursement income and other property income have been combined into rental and other property revenue in the consolidated statements of operations and prior period amounts have been adjusted to conform to current period presentation. Effective January 1, 2019, w e make ongoing estimates of the collectability of our For the three and six months ended June 30, 2019, we recognized revenues of $17 and $23, respectively, related to recoveries of lost rental revenue due to natural disasters and other insurable events from our insurance providers. For the three and six months ended June 30, 2018, we recognized revenues of $64 and $106, respectively, related to recoveries of lost rental revenue due to natural disasters and other insurable events from our insurance providers. Advertising Expenses In accordance with FASB ASC Topic 720, “Other Expenses”, we expense the costs of advertising as incurred. For the three and six months ended June 30, 2019, we incurred $603 and $1,151 of advertising expenses, respectively. For the three and six months ended June 30, 2018, we incurred $564 and $1,097 of advertising expenses, respectively. |
Derivative Instruments | h. 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), 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 | i. 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 term loans are classified as Level 2 fair value measurements within the fair value hierarchy. The fair value of mortgage indebtedness is based on a discounted cash flows valuation technique. As this technique utilizes current credit spreads, which are generally unobservable, this is classified as a Level 3 fair value measurement within the fair value hierarchy. We determine appropriate credit spreads based on the type of debt and its maturity. There were no transfers between levels in the fair value hierarchy for the six months ended June 30, 2019. The following table summarizes the carrying amount and the fair value of our financial instruments as of the periods indicated: As of June 30, 2019 As of December 31, 2018 Financial Instrument Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets Cash and cash equivalents $ 11,060 $ 11,060 $ 9,316 $ 9,316 Restricted cash 7,780 7,780 6,729 6,729 Derivative assets 1,558 1,558 8,307 8,307 Liabilities Debt: Unsecured credit facility 128,404 130,803 153,983 155,743 Term loans 298,522 300,000 248,380 250,000 Mortgages 562,573 563,918 583,125 577,112 Derivative liabilities 7,394 7,394 - - |
Deferred Financing Costs | j. 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. |
Office Leases | k. Office Leases We apply FASB ASC Topic 842, “Leases”, which requires a lessee to recognize a right-of-use asset and a lease liability on the balance sheet at the lease commencement date for all leases, except those leases with terms of less than a year. We lease corporate office space under leases with terms of up to 10 years and that may include extension options, but that do not include any residual value guarantees or restrictive covenants. As of June 30, 2019, we have $3,113 of operating lease right-of-use assets and $3,206 of operating lease liabilities related to our corporate office leases. The operating lease right-of-use assets are presented within other assets and the operating lease liabilities are presented within other liabilities in our consolidated balance sheet. We recorded $167 and $279, respectively, of total operating lease expense during the three and six months ended June 30, 2019, which is recorded within property management expense and general and administrative expenses in our consolidated statements of operations. |
Income Taxes | l. Income Taxes We have elected to be taxed as a REIT beginning with the taxable year ended December 31, 2011. Accordingly, we recorded no income tax expense for the three and six months ended June 30, 2019 and 2018. 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 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. 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 legacy lease accounting standards. This standard is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. In July 2018, the FASB issued an amendment to the new standard, which provides a package of practical expedients that (1) allows lessors to not separate lease and non-lease components in a contract and allocate the consideration in the contract to the separate components if both (i) the timing and pattern of revenue recognition for the non-lease component and the related lease component are the same and (ii) the combined single lease component would be classified as an operating lease and (2) provides a transition option that permits entities to not recast the comparative periods presented when transitioning to the standard. We adopted the new standard on January 1, 2019 using the modified retrospective approach and the package of practical expedients. We did not record a cumulative-effect adjustment on the effective date and all prior comparative periods are presented in accordance with legacy lease accounting standards. Our apartment leases, where we are lessor, continued to be accounted for as operating leases under the new standard and, therefore, there were not significant changes in accounting for these leases. For our various corporate office leases, where we are lessee, we recorded a $308 right of use asset and a lease liability on our consolidated balance sheets upon adoption. In June 2018, the FASB issued an accounting standard classified under FASB ASC Topic 718, “Compensation – Stock Compensation.” The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. As a result, the accounting for share-based payment award transactions could be impacted. 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. We adopted the new standard on January 1, 2019. As we have not issued share-based payments to non-employees since prior to our management internalization, the adoption of this standard has not had an effect on our consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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. There were no transfers between levels in the fair value hierarchy for the six months ended June 30, 2019. The following table summarizes the carrying amount and the fair value of our financial instruments as of the periods indicated: As of June 30, 2019 As of December 31, 2018 Financial Instrument Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets Cash and cash equivalents $ 11,060 $ 11,060 $ 9,316 $ 9,316 Restricted cash 7,780 7,780 6,729 6,729 Derivative assets 1,558 1,558 8,307 8,307 Liabilities Debt: Unsecured credit facility 128,404 130,803 153,983 155,743 Term loans 298,522 300,000 248,380 250,000 Mortgages 562,573 563,918 583,125 577,112 Derivative liabilities 7,394 7,394 - - |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Banking And Thrift [Abstract] | |
Summary of Investments in Real Estate | The table below summarizes our investments in real estate: As of June 30, 2019 As of December 31, 2018 Depreciable Lives (In years) Land $ 211,959 $ 209,111 — Building 1,409,776 1,384,810 40 Furniture, fixtures and equipment 83,034 66,502 5-10 Total investment in real estate $ 1,704,769 $ 1,660,423 Accumulated depreciation (136,488 ) (112,270 ) Investments in real estate, net $ 1,568,281 $ 1,548,153 |
Summary of Properties Classified as Held for Sale | As of June 30, 2019, we owned two properties that were classified as held for sale. These properties were sold on July 18, 2019 for $56,500. The table below summarizes our held for sale properties. Property Name Location Units Net Carrying Value Carrington Park Little Rock, AR 202 $ 20,747 Stonebridge at the Ranch Little Rock, AR 260 29,747 Total 462 $ 50,494 |
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 six-month period ended June 30, 2019, on the date of acquisition, accounted for under FASB ASC Topic 805-50-15-3. Description Fair Value of Assets Acquired During The Six Months Ended June 30, 2019 Assets acquired: Investments in real estate (a) $ 27,770 Other assets 38 Intangible assets 316 Total assets acquired $ 28,124 Liabilities assumed: Accounts payable and accrued expenses $ 80 Other liabilities 108 Total liabilities assumed 188 Estimated fair value of net assets acquired $ 27,936 |
Indebtedness (Tables)
Indebtedness (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary Information Concerning Indebtedness | The following tables contain summary information concerning our indebtedness as of June 30, 2019: Debt: Outstanding Principal Unamortized Debt Issuance Costs Carrying Amount Type Weighted Average Rate Weighted Average Maturity (in years) Unsecured credit facility (1) $ 130,803 $ (2,399 ) $ 128,404 Floating 3.9% 3.9 Unsecured term loans 300,000 (1,478 ) 298,522 Floating 4.0% 4.8 Mortgages 564,835 (2,262 ) 562,573 Fixed 3.8% 4.6 Total Debt $ 995,638 $ (6,139 ) $ 989,499 3.9% 4.6 (1) The unsecured credit facility total capacity is $350,000, of which $130,803 was outstanding as of June 30, 2019. Original maturities on or before December 31, Debt: 2019 2020 2021 2022 2023 Thereafter Unsecured credit facility $ - $ - $ - $ - $ 130,803 $ - Unsecured term loans - - - - - 300,000 Mortgages 2,962 8,135 76,033 70,700 107,202 299,803 Total $ 2,962 $ 8,135 $ 76,033 $ 70,700 $ 238,005 $ 599,803 As of June 30, 2019, 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, 2018: Debt: Outstanding Unamortized Debt Issuance Costs Carrying Type Weighted Average Rate Weighted Average Maturity (in Unsecured credit facility (1) $ 155,743 $ (1,760 ) $ 153,983 Floating 3.9% 2.7 Unsecured term loans 250,000 (1,620 ) 248,380 Floating 4.0% 5.4 Mortgages 585,672 (2,547 ) 583,125 Fixed 3.8% 5.1 Total Debt $ 991,415 $ (5,927 ) $ 985,488 3.9% 4.8 (1) The unsecured credit facility total capacity was $300,000, of which $155,743 was outstanding as of December 31, 2018. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and December 31, 2018: As of June 30, 2019 As of December 31, 2018 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 $ 1,558 $ — $ 150,000 $ 4,751 $ — Interest rate collars 250,000 — 4,422 250,000 3,556 — Forward interest rate swap — — 2,972 — — — Total $ 400,000 $ 1,558 $ 7,394 $ 400,000 $ 8,307 $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings (Loss) Per Share | The following table presents a reconciliation of basic and diluted earnings (loss) per share for the three and six months ended June 30, 2019 and 2018: For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Net income $ 14,856 $ 3,545 $ 17,422 $ 7,045 (Income) loss allocated to noncontrolling interests (147 ) (36 ) (173 ) (124 ) Net income allocable to common shares 14,709 3,509 17,249 6,921 Weighted-average shares outstanding—Basic 89,513,105 86,644,716 89,252,724 85,978,431 Weighted-average shares outstanding—Diluted 90,019,909 86,908,978 89,902,637 86,208,502 Earnings per share—Basic $ 0.16 $ 0.04 $ 0.19 $ 0.08 Earnings per share—Diluted $ 0.16 $ 0.04 $ 0.19 $ 0.08 |
Organization - Additional Infor
Organization - Additional Information (Detail) | Jun. 30, 2019Property |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of multifamily properties owned | 58 |
Number of units located with multifamily properties | 15,734 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Significant Accounting Policies [Line Items] | ||||||
Federal Deposit Insurance Corporation deposit insurance limit per institution | $ 250,000 | $ 250,000 | ||||
Restricted cash | 7,780,000 | 7,780,000 | $ 6,729,000 | |||
Amortization expense for intangible assets | 294,000 | $ 1,044,000 | 850,000 | $ 2,336,000 | ||
Additional amortization expense on current in-place intangible assets | 210,000 | 210,000 | ||||
Write-off of intangible assets | 719,000 | 0 | 1,532,000 | 1,963,000 | ||
Depreciation expense | 12,427,000 | 10,539,000 | 24,318,000 | 20,471,000 | ||
Uncollectible rental revenue | 236,000 | 535,000 | ||||
Bad debt expense (recoveries) | (115,000) | 49,000 | ||||
Advertising expenses | 603,000 | 564,000 | 1,151,000 | 1,097,000 | ||
Transfers of assets between Level 1 and Level 2 | 0 | 0 | ||||
Transfers of assets between Level 2 and Level 1 | 0 | 0 | ||||
Transfers of liabilities between Level 1 and Level 2 | 0 | 0 | ||||
Transfers of liabilities between Level 2 and Level 1 | 0 | 0 | ||||
Income tax expense | 0 | 0 | $ 0 | 0 | ||
Taxable income distributable to stockholders | 90.00% | |||||
Cumulative-effect adjustment | $ 0 | |||||
Topic 842 | ||||||
Significant Accounting Policies [Line Items] | ||||||
Right-of-use assets | $ 3,113,000 | $ 3,113,000 | $ 308,000 | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets | ||||
Lease liability | $ 3,206,000 | $ 3,206,000 | $ 308,000 | |||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities | ||||
Total operating lease expense | $ 167,000 | $ 279,000 | ||||
Natural Disasters and Other Insurable Events | ||||||
Significant Accounting Policies [Line Items] | ||||||
Rent revenue recognized | 17,000 | $ 64,000 | $ 23,000 | $ 106,000 | ||
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 | $ 316,000 | $ 316,000 | ||||
Minimum | Equipment and Fixtures | ||||||
Significant Accounting Policies [Line Items] | ||||||
Depreciable Lives | 5 years | |||||
Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Cash and cash equivalents original maturity period | 3 months | |||||
Maximum | Topic 842 | ||||||
Significant Accounting Policies [Line Items] | ||||||
Operating lease term | 10 years | 10 years | ||||
Maximum | Equipment and Fixtures | ||||||
Significant Accounting Policies [Line Items] | ||||||
Depreciable Lives | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Carrying Amount and Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | ||
Assets | |||||
Cash and cash equivalents, Carrying Amount | $ 11,060 | $ 9,316 | $ 10,896 | ||
Restricted cash, Carrying Amount | 7,780 | 6,729 | |||
Derivative assets, Carrying Amount | 1,558 | 8,307 | |||
Cash and cash equivalents, Estimated Fair Value | 11,060 | 9,316 | |||
Restricted cash, Estimated Fair Value | 7,780 | 6,729 | |||
Derivative assets, Estimated Fair Value | 1,558 | 8,307 | |||
Liabilities | |||||
Indebtedness, net of unamortized discount and deferred financing costs | 989,499 | 985,488 | |||
Derivative liabilities, carrying Amount | 7,394 | ||||
Derivative liabilities, Estimated Fair Value | 7,394 | ||||
Unsecured Credit Facility | |||||
Liabilities | |||||
Indebtedness, net of unamortized discount and deferred financing costs | 128,404 | [1] | 153,983 | [2] | |
Indebtedness, net of unamortized discount and deferred financing costs, estimated fair value | 130,803 | 155,743 | |||
Term Loans | |||||
Liabilities | |||||
Indebtedness, net of unamortized discount and deferred financing costs | 298,522 | 248,380 | |||
Indebtedness, net of unamortized discount and deferred financing costs, estimated fair value | 300,000 | 250,000 | |||
Mortgages | |||||
Liabilities | |||||
Indebtedness, net of unamortized discount and deferred financing costs | 562,573 | 583,125 | |||
Indebtedness, net of unamortized discount and deferred financing costs, estimated fair value | $ 563,918 | $ 577,112 | |||
[1] | The unsecured credit facility total capacity is $350,000, of which $130,803 was outstanding as of June 30, 2019. | ||||
[2] | The unsecured credit facility total capacity was $300,000, of which $155,743 was outstanding as of December 31, 2018. |
Investments in Real Estate - Ad
Investments in Real Estate - Additional Information (Detail) | Jul. 18, 2019USD ($) | Jul. 31, 2019USD ($)Property | Apr. 30, 2019USD ($)Property | Jun. 30, 2019Property | Dec. 31, 2018Property |
Real Estate Properties [Line Items] | |||||
Number of multifamily properties owned | 58 | ||||
Number of units located with multifamily properties | 15,734 | ||||
Atlanta, GA | |||||
Real Estate Properties [Line Items] | |||||
Number of units in real estate properties acquired | 224 | ||||
Purchase Price | $ | $ 28,000,000 | ||||
Chicago, IL | |||||
Real Estate Properties [Line Items] | |||||
Number of units in real estate properties disposed | 370 | ||||
Sale Price | $ | $ 42,000,000 | ||||
Gain (loss) on sale | $ | 12,131,000 | ||||
Debt extinguishment costs | $ | $ 2,029,000 | ||||
Subsequent Event | Tampa, FL | |||||
Real Estate Properties [Line Items] | |||||
Number of units in real estate properties acquired | 264 | ||||
Purchase Price | $ | $ 48,000,000 | ||||
Subsequent Event | Little Rock, AR | |||||
Real Estate Properties [Line Items] | |||||
Sale Price | $ | $ 56,500,000 | ||||
Subsequent Event | Little Rock, AR | Carrington Park [Member] | |||||
Real Estate Properties [Line Items] | |||||
Number of units in real estate properties disposed | 202 | ||||
Subsequent Event | Little Rock, AR | Stonebridge At The Ranch [Member] | |||||
Real Estate Properties [Line Items] | |||||
Number of units in real estate properties disposed | 260 | ||||
Held-for-sale | |||||
Real Estate Properties [Line Items] | |||||
Number of multifamily properties owned | 2 | 3 | |||
Number of units located with multifamily properties | 462 | ||||
Held-for-sale | Carrington Park [Member] | |||||
Real Estate Properties [Line Items] | |||||
Number of units located with multifamily properties | 202 | ||||
Held-for-sale | Stonebridge At The Ranch [Member] | |||||
Real Estate Properties [Line Items] | |||||
Number of units located with multifamily properties | 260 | ||||
Held-for-sale | Subsequent Event | |||||
Real Estate Properties [Line Items] | |||||
Real estate properties held for sale | $ | $ 56,500 |
Summary of Investments in Real
Summary of Investments in Real Estate (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Real Estate Properties [Line Items] | ||
Land | $ 211,959 | $ 209,111 |
Building | 1,409,776 | 1,384,810 |
Furniture, fixtures and equipment | 83,034 | 66,502 |
Total investment in real estate | 1,704,769 | 1,660,423 |
Accumulated depreciation | (136,488) | (112,270) |
Investments in real estate, net | $ 1,568,281 | $ 1,548,153 |
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 Properties Classifie
Summary of Properties Classified as Held for Sale (Detail) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019USD ($)Property | Dec. 31, 2018USD ($) | |
Real Estate Properties [Line Items] | ||
Units | Property | 15,734 | |
Net Carrying Value | $ | $ 50,494 | $ 77,285 |
Held-for-sale | ||
Real Estate Properties [Line Items] | ||
Units | Property | 462 | |
Net Carrying Value | $ | $ 50,494 | |
Held-for-sale | Carrington Park [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Little Rock, AR | |
Units | Property | 202 | |
Net Carrying Value | $ | $ 20,747 | |
Held-for-sale | Stonebridge At The Ranch [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Little Rock, AR | |
Units | Property | 260 | |
Net Carrying Value | $ | $ 29,747 |
Summary of Aggregate Fair Value
Summary of Aggregate Fair Value of Assets and Liabilities (Detail) $ in Thousands | Jun. 30, 2019USD ($) | |
Assets acquired: | ||
Investments in real estate | $ 27,770 | [1] |
Other assets | 38 | |
Intangible assets | 316 | |
Total assets acquired | 28,124 | |
Liabilities assumed: | ||
Accounts payable and accrued expenses | 80 | |
Other liabilities | 108 | |
Total liabilities assumed | 188 | |
Estimated fair value of net assets acquired | $ 27,936 | |
[1] | Included $86 of property related acquisition costs capitalized during the six months ended June 30, 2019. |
Summary of Aggregate Fair Val_2
Summary of Aggregate Fair Value of Assets and Liabilities (Parenthetical) (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Business Combinations [Abstract] | |
Acquisition costs related to property | $ 86 |
Summary Information Concerning
Summary Information Concerning Indebtedness (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | |||
Debt Instrument [Line Items] | ||||
Outstanding Principal | $ 995,638 | $ 991,415 | ||
Unamortized Debt Issuance Costs | (6,139) | (5,927) | ||
Carrying Amount | $ 989,499 | $ 985,488 | ||
Weighted Average Rate | 3.90% | 3.90% | ||
Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Maturity (in years) | 4 years 7 months 6 days | 4 years 9 months 18 days | ||
Mortgages | ||||
Debt Instrument [Line Items] | ||||
Outstanding Principal | $ 564,835 | $ 585,672 | ||
Unamortized Debt Issuance Costs | (2,262) | (2,547) | ||
Carrying Amount | $ 562,573 | $ 583,125 | ||
Type | Fixed | Fixed | ||
Weighted Average Rate | 3.80% | 3.80% | ||
Mortgages | Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Maturity (in years) | 4 years 7 months 6 days | 5 years 1 month 6 days | ||
Unsecured Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Outstanding Principal | $ 130,803 | [1] | $ 155,743 | [2] |
Unamortized Debt Issuance Costs | (2,399) | [1] | (1,760) | [2] |
Carrying Amount | $ 128,404 | [1] | $ 153,983 | [2] |
Type | Floating | [1] | Floating | [2] |
Weighted Average Rate | 3.90% | [1] | 3.90% | [2] |
Unsecured Credit Facility | Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Maturity (in years) | 3 years 10 months 24 days | [1] | 2 years 8 months 12 days | [2] |
Unsecured Term Loans | ||||
Debt Instrument [Line Items] | ||||
Outstanding Principal | $ 300,000 | $ 250,000 | ||
Unamortized Debt Issuance Costs | (1,478) | (1,620) | ||
Carrying Amount | $ 298,522 | $ 248,380 | ||
Type | Floating | Floating | ||
Weighted Average Rate | 4.00% | 4.00% | ||
Unsecured Term Loans | Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Maturity (in years) | 4 years 9 months 18 days | 5 years 4 months 24 days | ||
[1] | The unsecured credit facility total capacity is $350,000, of which $130,803 was outstanding as of June 30, 2019. | |||
[2] | The unsecured credit facility total capacity was $300,000, of which $155,743 was outstanding as of December 31, 2018. |
Summary Information Concernin_2
Summary Information Concerning Indebtedness (Parenthetical) (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | ||
Debt Instrument [Line Items] | ||||
Outstanding Principal | $ 995,638,000 | $ 991,415,000 | ||
Unsecured Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility borrowing capacity | 350,000,000 | 300,000,000 | ||
Outstanding Principal | $ 130,803,000 | [1] | $ 155,743,000 | [2] |
[1] | The unsecured credit facility total capacity is $350,000, of which $130,803 was outstanding as of June 30, 2019. | |||
[2] | The unsecured credit facility total capacity was $300,000, of which $155,743 was outstanding as of December 31, 2018. |
Maturity of Indebtedness (Detai
Maturity of Indebtedness (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Debt Instrument [Line Items] | |
2019 | $ 2,962 |
2020 | 8,135 |
2021 | 76,033 |
2022 | 70,700 |
2023 | 238,005 |
Thereafter | 599,803 |
Mortgages | |
Debt Instrument [Line Items] | |
2019 | 2,962 |
2020 | 8,135 |
2021 | 76,033 |
2022 | 70,700 |
2023 | 107,202 |
Thereafter | 299,803 |
Unsecured Credit Facility | |
Debt Instrument [Line Items] | |
2023 | 130,803 |
Unsecured Term Loans | |
Debt Instrument [Line Items] | |
Thereafter | $ 300,000 |
Indebtedness - Additional Infor
Indebtedness - Additional Information (Detail) - USD ($) | May 09, 2019 | Apr. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||
Deferred financing costs | $ 6,139,000 | $ 5,927,000 | ||
Mortgages-Fixed Rate | ||||
Debt Instrument [Line Items] | ||||
Mortgage loan related to property disposition | $ 18,850,000 | |||
Unsecured Revolving Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Credit facility, revolving line of credit | $ 350,000,000 | |||
Maturity date | May 9, 2023 | |||
Maturity term description | option to extend the revolving commitment for two additional 6-month periods under certain circumstances, including the payment of an extension fee | |||
Deferred financing costs | $ 1,129,000 | |||
Unsecured Revolving Line of Credit | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 1.55% | |||
Unsecured Revolving Line of Credit | Minimum | 1-month LIBOR Rate | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 1.25% | |||
Unsecured Revolving Line of Credit | Minimum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 2.50% | |||
Unsecured Revolving Line of Credit | Maximum | ||||
Debt Instrument [Line Items] | ||||
Credit facility borrowing capacity | $ 600,000,000 | |||
Unsecured Revolving Line of Credit | Maximum | 1-month LIBOR Rate | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 2.00% | |||
Unsecured Revolving Line of Credit | Maximum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 1.00% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Aggregate Amount and Estimated Net Fair Value of Derivative Instruments (Detail) - USD ($) | Jun. 30, 2019 | May 09, 2019 | Dec. 31, 2018 |
Derivative Instruments Gain Loss [Line Items] | |||
Fair Value of Assets | $ 1,558,000 | $ 8,307,000 | |
Fair Value of Liabilities | 7,394,000 | ||
Cash Flow Hedge | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative, notional amount | 400,000,000 | 400,000,000 | |
Fair Value of Assets | 1,558,000 | ||
Fair Value of Liabilities | 7,394,000 | ||
Fair Value of Assets | 8,307,000 | ||
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 | 1,558,000 | 4,751,000 | |
Cash Flow Hedge | Interest Rate Collar | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative, notional amount | 250,000,000 | 250,000,000 | |
Fair Value of Assets | $ 3,556,000 | ||
Fair Value of Liabilities | 4,422,000 | ||
Cash Flow Hedge | Forward Interest Rate Swap | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative, notional amount | $ 150,000,000 | ||
Fair Value of Liabilities | $ 2,972,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | May 09, 2019 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative Instruments Gain Loss [Line Items] | |||||
Realized gains (losses) on interest rate hedges reclassified to earnings | $ 467,000 | $ 1,026,000 | |||
Cash Flow Hedge | |||||
Derivative Instruments Gain Loss [Line Items] | |||||
Derivative, notional amount | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | ||
Derivative, strike rate for the forward interest rate swap contract | 2.176% | ||||
Cash Flow Hedge | Forward Interest Rate Swap | |||||
Derivative Instruments Gain Loss [Line Items] | |||||
Derivative, notional amount | $ 150,000,000 | ||||
Derivative, effective date | Jun. 17, 2021 | ||||
Derivative, maturity date | Jun. 17, 2026 | ||||
Cash Flow Hedge | Interest Rate Swap and Collars | Scenario, Forecast | |||||
Derivative Instruments Gain Loss [Line Items] | |||||
Reclassified out of accumulated other comprehensive income to earnings, amount | $ 86,000 |
Shareholder Equity and Noncon_2
Shareholder Equity and Noncontrolling Interests - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jun. 17, 2019 | Mar. 18, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 |
Class Of Stock [Line Items] | |||||||
Dividend declared per share | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | |||
Dividends paid | $ 0 | $ 209 | |||||
At-the-market agreement to sell common shares, remaining offer price | $ 109,038 | $ 109,038 | |||||
Limited partnership interest received in exchange for issuance of common stock or cash | 0 | 0 | |||||
OP Units outstanding | 881,107 | 881,107 | |||||
ATM Sales Agreement | |||||||
Class Of Stock [Line Items] | |||||||
Shares issued | 65,704 | 575,704 | |||||
Weighted average price per share | $ 12.09 | $ 10.80 | |||||
Net proceeds after deducting commissions | $ 778 | $ 6,079 | |||||
Commissions | $ 16 | $ 124 | |||||
Dividend Declared | |||||||
Class Of Stock [Line Items] | |||||||
Declaration date | Jun. 17, 2019 | Mar. 18, 2019 | |||||
Dividend declared per share | $ 0.18 | $ 0.18 | |||||
Payment date | Jul. 25, 2019 | Apr. 25, 2019 | |||||
Record date | Jun. 28, 2019 | Mar. 29, 2019 | |||||
Dividend Declared | Noncontrolling Interests | |||||||
Class Of Stock [Line Items] | |||||||
Declaration date | Jun. 17, 2019 | Mar. 18, 2019 | |||||
Dividend declared per share | $ 0.18 | $ 0.18 | |||||
Payment date | Jul. 25, 2019 | Apr. 25, 2019 | |||||
Record date | Jun. 28, 2019 | Mar. 29, 2019 |
Equity Compensation Plans - Add
Equity Compensation Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Feb. 06, 2019 | May 23, 2018 | Mar. 07, 2018 | May 31, 2016 | Jun. 30, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, shares authorized | 4,300,000 | 300,000,000 | 300,000,000 | |||
Expiration date of Incentive Plan | May 12, 2026 | |||||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards vesting period | 3 years | 4 years | ||||
Weighted average fair value, granted | $ 10.23 | |||||
Grant date fair value | $ 900 | |||||
Restricted Stock | Non Executive Officer Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares issued | 92,925 | |||||
Weighted average fair value, granted | $ 10.35 | |||||
Grant date fair value | $ 962 | |||||
Restricted Stock | Executive Officers | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares issued | 87,975 | |||||
Performance Share Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards vesting period | 3 years | |||||
Shares issued | 263,929 | |||||
Grant date fair value | $ 2,203 | |||||
Maximum | Performance Share Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share based compensation arrangement by share based payment award number share issuable percentage | 150.00% | |||||
Minimum | Performance Share Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share based compensation arrangement by share based payment award number share issuable percentage | 0.00% | |||||
Long Term Incentive Plan | Non-employee Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares issued | 32,844 | |||||
Grant date fair value | $ 360 | |||||
Weighted average fair value, granted | $ 10.96 | |||||
Long Term Incentive Plan | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards vesting period | 3 years | |||||
Long Term Incentive Plan | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards vesting period | 4 years |
Reconciliation of Basic and Dil
Reconciliation of Basic and Diluted Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||||
Net income | $ 14,856 | $ 2,566 | $ 3,545 | $ 3,500 | $ 17,422 | $ 7,045 |
(Income) loss allocated to noncontrolling interests | (147) | (36) | (173) | (124) | ||
Net income allocable to common shares | $ 14,709 | $ 3,509 | $ 17,249 | $ 6,921 | ||
Weighted-average shares outstanding—Basic | 89,513,105 | 86,644,716 | 89,252,724 | 85,978,431 | ||
Weighted-average shares outstanding—Diluted | 90,019,909 | 86,908,978 | 89,902,637 | 86,208,502 | ||
Earnings per share—Basic | $ 0.16 | $ 0.04 | $ 0.19 | $ 0.08 | ||
Earnings per share—Diluted | $ 0.16 | $ 0.04 | $ 0.19 | $ 0.08 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings (loss) per share, amount | 881,107 | 899,215 | 881,107 | 1,038,824 |