Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 04, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
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 | 94,708,263 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-36041 | |
Entity Tax Identification Number | 26-4567130 | |
Entity Address, Address Line One | 1835 Market Street | |
Entity Address, Address Line Two | Suite 2601 | |
Entity Address, City or Town | Philadelphia | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19103 | |
City Area Code | 267 | |
Local Phone Number | 270-4800 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common stock | |
Security Exchange Name | NYSE | |
Entity Incorporation, State or Country Code | MD | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Investments in real estate: | ||
Investments in real estate, at cost | $ 1,856,760 | $ 1,796,365 |
Accumulated depreciation | (172,789) | (158,435) |
Investments in real estate, net | 1,683,971 | 1,637,930 |
Cash and cash equivalents | 57,436 | 9,888 |
Restricted cash | 4,740 | 4,545 |
Other assets | 10,731 | 10,380 |
Derivative assets | 953 | |
Intangible assets, net of accumulated amortization of $464 and $540, respectively | 260 | 410 |
Total Assets | 1,757,138 | 1,664,106 |
LIABILITIES AND EQUITY: | ||
Indebtedness, net of unamortized deferred financing costs of $5,294 and $5,606, respectively | 1,049,541 | 985,572 |
Accounts payable and accrued expenses | 21,250 | 25,399 |
Accrued interest payable | 2,099 | 2,196 |
Dividends payable | 17,128 | 16,491 |
Derivative liabilities | 30,937 | 7,769 |
Other liabilities | 7,012 | 6,922 |
Total Liabilities | 1,127,967 | 1,044,349 |
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, 94,691,806 and 91,070,637 shares issued and outstanding, including 326,577 and 326,541 unvested restricted common share awards, respectively | 947 | 911 |
Additional paid-in capital | 817,501 | 765,992 |
Accumulated other comprehensive income (loss) | (35,750) | (12,099) |
Retained earnings (accumulated deficit) | (159,045) | (141,525) |
Total stockholders’ equity | 623,653 | 613,279 |
Noncontrolling interests | 5,518 | 6,478 |
Total Equity | 629,171 | 619,757 |
Total Liabilities and Equity | $ 1,757,138 | $ 1,664,106 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Intangible assets, accumulated amortization | $ 464 | $ 540 |
Indebtedness, unamortized deferred financing costs | $ 5,294 | $ 5,606 |
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 | 94,691,806 | 91,070,637 |
Common stock, shares outstanding | 94,691,806 | 91,070,637 |
Unvested restricted common share awards | 326,577 | 326,541 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
REVENUE: | ||
Rental and other property revenue | $ 51,156 | $ 49,465 |
Other revenue | 194 | 75 |
Total revenue | 51,350 | 49,540 |
EXPENSES: | ||
Property operating expenses | $ 19,737 | $ 19,886 |
Type of Cost, Good or Service [Extensible List] | us-gaap:AssetManagement1Member | us-gaap:AssetManagement1Member |
Property management expenses | $ 2,156 | $ 1,813 |
General and administrative expenses | 5,376 | 3,107 |
Depreciation and amortization expense | 14,828 | 12,447 |
Abandoned deal costs | 130 | |
Total expenses | 42,227 | 37,253 |
Interest expense | (9,497) | (9,721) |
Net income (loss): | (374) | 2,566 |
Income allocated to noncontrolling interest | 2 | (26) |
Net income (loss) allocable to common shares | $ (372) | $ 2,540 |
Earnings per share: | ||
Basic | $ 0 | $ 0.03 |
Diluted | $ 0 | $ 0.03 |
Weighted-average shares: | ||
Basic | 90,895,488 | 88,989,450 |
Diluted | 90,895,488 | 89,516,224 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income (loss) | $ (374) | $ 2,566 |
Other comprehensive income (loss): | ||
Change in fair value of interest rate hedges | (23,422) | (4,927) |
Realized (gains) losses on interest rate hedges reclassified to earnings | (418) | 559 |
Total other comprehensive income (loss) | (23,840) | (4,368) |
Comprehensive income (loss) before allocation to noncontrolling interests | (24,214) | (1,802) |
Allocation to noncontrolling interests | 191 | 18 |
Comprehensive income (loss) | $ (24,023) | $ (1,784) |
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, 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 | ||||||
Net income (loss) | 2,566 | 2,540 | 2,540 | 26 | |||
Other comprehensive income (loss) | (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, 2019 | $ 619,757 | $ 911 | 765,992 | (12,099) | (141,525) | 613,279 | 6,478 |
Beginning Balance (in Shares) at Dec. 31, 2019 | 91,070,637 | 91,070,637 | |||||
Net income (loss) | $ (374) | (372) | (372) | (2) | |||
Other comprehensive income (loss) | (23,840) | (23,651) | (23,651) | (189) | |||
Stock compensation expense | 2,644 | $ 2 | 2,642 | 2,644 | |||
Stock compensation expense (in Shares) | 183,940 | ||||||
Issuance of common shares | 49,764 | $ 35 | 49,729 | 49,764 | |||
Issuance of common shares (in Shares) | 3,406,000 | ||||||
Repurchase of shares related to equity award tax withholding | (1,490) | $ (1) | (1,489) | (1,490) | |||
Repurchase of shares related to equity award tax withholding (in shares) | (51,128) | ||||||
Conversion of noncontrolling interest to common shares | 627 | 627 | (627) | ||||
Conversion of noncontrolling interest to common shares (in Shares) | 82,357 | ||||||
Common dividends declared ($0.18 per share) | (17,148) | (17,148) | (17,148) | ||||
Distribution to noncontrolling interest declared ($0.18 per unit) | (142) | (142) | |||||
Ending Balance at Mar. 31, 2020 | $ 629,171 | $ 947 | $ 817,501 | $ (35,750) | $ (159,045) | $ 623,653 | $ 5,518 |
Ending Balance (in shares) at Mar. 31, 2020 | 94,691,806 | 94,691,806 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||
Common dividends declared per share | $ 0.18 | $ 0.18 |
Distribution to noncontrolling interest declared per share | $ 0.18 | $ 0.18 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (374) | $ 2,566 |
Adjustments to reconcile net income to cash flow from operating activities: | ||
Depreciation and amortization | 14,828 | 12,447 |
Amortization of deferred financing costs | 361 | 339 |
Stock compensation expense | 2,627 | 622 |
Amortization related to derivative instruments | 280 | 76 |
Changes in assets and liabilities: | ||
Other assets | (875) | 722 |
Accounts payable and accrued expenses | (5,171) | (2,607) |
Accrued interest payable | (59) | (37) |
Other liabilities | 67 | 76 |
Net cash provided by operating activities | 11,684 | 14,204 |
Cash flows from investing activities: | ||
Acquisition of real estate properties | (50,598) | (520) |
Disposition of real estate properties | 1,081 | |
Capital expenditures | (8,572) | (8,688) |
Cash flow used in investing activities | (59,170) | (8,127) |
Cash flows from financing activities: | ||
Proceeds from unsecured credit facility and term loans | 65,501 | 64,000 |
Unsecured credit facility repayments | (58,000) | |
Mortgage principal repayments | (1,843) | (907) |
Payments for deferred financing costs | (50) | |
Proceeds from issuance of common stock | 49,764 | 5,309 |
Distributions on common stock | (16,493) | (16,208) |
Distributions to noncontrolling interests | (160) | (164) |
Repurchase of shares related to equity award tax withholding | (1,490) | |
Cash flow provided by (used in) financing activities | 95,229 | (5,970) |
Net change in cash and cash equivalents, and restricted cash | 47,743 | 107 |
Cash and cash equivalents, and restricted cash, beginning of period | 14,433 | 16,045 |
Cash and cash equivalents, and restricted cash, end of the period | 62,176 | 16,152 |
Reconciliation of cash, cash equivalents, and restricted cash to the Consolidated Balance Sheet | ||
Cash and cash equivalents | 57,436 | 9,030 |
Restricted cash | 4,740 | 7,122 |
Cash and cash equivalents, and restricted cash, end of the period | $ 62,176 | $ 16,152 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Organization | NOTE 1: Organization Independence Realty Trust, Inc. (“IRT”), is a self-administered and self-managed Maryland real estate investment trust (“REIT”) which was formed on March 26, 2009. Our primary purposes are to acquire, own, operate, improve and manage multifamily apartment communities in non-gateway markets. As of March 31, 2020, we owned and operated 58 multifamily apartment properties, that contain 15,805 units across non-gateway U.S markets, including Atlanta, Louisville, Memphis, and Raleigh. We own all of our assets and conduct substantially all of our operations through Independence Realty Operating Partnership, LP (“IROP”), of which we are the sole general partner. As used herein, the terms “we,” “our” and “us” refer to Independence Realty Trust, Inc. and, as required by context, IROP and their subsidiaries. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2: Summary of Significant Accounting Policies a. Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared by management in accordance with generally accepted accounting principles in the United States (“GAAP”). Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, although we believe that the included disclosures are adequate to make the information presented not misleading. The unaudited interim consolidated financial statements should be read in conjunction with our audited financial statements as of and for the year ended December 31, 2019 included in our 2019 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 the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification Topic 810, “Consolidation”, IROP is considered a variable interest entity to which we are the primary beneficiary. As our significant asset is our investment in IROP, substantially all of our assets and liabilities represent the assets and liabilities of IROP. c. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. d. Cash and Cash Equivalents Cash and cash equivalents include cash held in banks and highly liquid investments with maturities of three months or less when purchased. Cash, including amounts restricted, may at times exceed the Federal Deposit Insurance Corporation deposit insurance limit of $250 per institution. We mitigate credit risk by placing cash and cash equivalents with major financial institutions. To date, we have not experienced any losses on cash and cash equivalents. e. Restricted Cash Restricted cash includes escrows of our funds held by lenders to fund certain expenditures, such as real estate taxes and insurance, or to be released at our discretion upon the occurrence of certain pre-specified events. As of March 31, 2020 and December 31, 2019, we had $4,740 and $4,545, 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 in-place lease assets is amortized over the assumed lease up period, typically six months. During the three months ended March 31, 2020, we acquired in-place leases with a value of $221, as part of related property acquisitions that are discussed further in Note 3. For the three months ended March 31, 2020 and 2019, we recorded $371 and $556, respectively, of amortization expense for intangible assets. For the three months ended March 31, 2020 and 2019, we wrote-off fully amortized intangible assets of $447 and $813, respectively. As of March 31, 2020, we expect to record additional amortization expense on current in-place intangible assets of $260 for the remainder of 2020. Impairment of Long-Lived Assets Management evaluates the recoverability of our investment in real estate assets, including related identifiable intangible assets, in accordance with FASB ASC Topic 360, “Property, Plant and Equipment”. This statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that recoverability of the assets is not assured. Management reviews our long-lived assets on an ongoing basis and evaluates the recoverability of the carrying value when there is an indicator of impairment. An impairment charge is recorded when it is determined that the carrying value of the asset exceeds the fair value. The estimated cash flows used for the impairment analysis and the determination of estimated fair value are based on our plans for the respective assets and our views of market and economic conditions. The estimates consider matters such as current and historical rental rates, occupancies for the respective and/or comparable properties, and recent sales data for comparable properties. Changes in estimated future cash flows due to changes in our plans or views of market and economic conditions could result in recognition of impairment losses, which, under the applicable accounting guidance, could be substantial. Depreciation Expense Depreciation expense for real estate assets is computed using a straight-line method based on a life of 40 years for buildings and improvements and five to ten years for equipment and fixtures. For the three months ended March 31, 2020 and 2019, we recorded $14,457 and $11,891 of depreciation expense, respectively. g. Revenue and Expenses Rental and other property revenue Management accounts for rental income in accordance with FASB ASC Topic 842, “Leases.” We primarily lease apartments units under operating leases generally with terms of one year or less. Rental payments are generally due monthly and rental revenues are recognized on an accrual basis when earned. 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 and (2) the lease component is the predominant element and (3) the combined single lease component would be classified as an operating lease. We make ongoing estimates of the collectability of our base rents, tenant reimbursements, and other service fees included within rental and other property revenue. If collectability is not probable, we adjust rental and other property income for the amount of uncollectible revenue. For the three months ended March 31, 2020 and 2019, we recognized gains of $3 and $6, respectively, related to recoveries of lost rental revenue due to natural disasters and other insurable events from our insurance providers. Advertising Expenses For the three months ended March 31, 2020 and 2019, we incurred $608 and $548 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 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 three months ended March 31, 2020. The following table summarizes the carrying amount and the fair value of our financial instruments as of the periods indicated: As of March 31, 2020 As of December 31, 2019 Financial Instrument Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets Cash and cash equivalents $ 57,436 $ 57,436 $ 9,888 $ 9,888 Restricted cash 4,740 4,740 4,545 4,545 Derivative assets — — 953 953 Liabilities Debt: Unsecured credit facility 249,593 251,802 183,966 186,302 Term loans 298,502 300,000 298,418 300,000 Mortgages 501,446 518,180 503,188 505,510 Derivative liabilities 30,937 30,937 7,769 7,769 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 In accordance with FASB ASC Topic 842, “Leases”, lessees are required to recognize a right-of-use asset and a lease liability on the balance sheet at the lease commencement date for all leases, except those leases with terms of less than a year. We lease corporate office space under leases with terms of up to 10 years and that may include extension options, but that do not include any residual value guarantees or restrictive covenants. As of March 31, 2020, we have $2,753 of operating lease right-of-use assets and $3,116 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 $139 of total operating lease expense during the three months ended March 31, 2020, 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 months ended March 31, 2020 and 2019. 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 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 2016, the FASB issued an accounting standard classified under FASB ASC Topic 326, “Financial Instruments – Credit Losses.” The amendments in this update revise the current approach to estimate credit losses on certain financial assets, including trade and other receivables, available-for-sale securities and other financial instruments. The amendments require entities to estimate a lifetime expected credit loss for certain financial instruments, including trade receivable. This standard is effective for annual periods beginning after December 15, 2019, 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, 2020. The adoption of this standard has not had an effect on our consolidated financial statements. 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. In March 2020, the FASB issued an accounting standard classified under FASB ASC Topic 848, “Reference Rate Reform.” The amendments in this update contain practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASC 848 is optional and may be elected over time as reference rate reform activities occur. During the first quarter of 2020, we have elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We will continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. |
Investments in Real Estate
Investments in Real Estate | 3 Months Ended |
Mar. 31, 2020 | |
Banking And Thrift [Abstract] | |
Investments in Real Estate | NOTE 3: Investments in Real Estate As of March 31, 2020, our investments in real estate consisted of 58 apartment properties that contain 15,805 units. The following table summarizes our investments in real estate: As of March 31, 2020 As of December 31, 2019 Depreciable Lives (In years) Land $ 238,723 $ 234,050 — Building 1,499,441 1,453,052 40 Furniture, fixtures and equipment 118,596 109,263 5-10 Total investment in real estate $ 1,856,760 $ 1,796,365 Accumulated depreciation (172,789 ) (158,435 ) Investments in real estate, net $ 1,683,971 $ 1,637,930 Acquisitions In February 2020, we acquired a 251-unit property located in McKinney, TX for $51,204. The following table summarizes the aggregate relative fair value of the assets and liabilities associated with the property acquired during the three-month period ended March 31, 2020, on the date of acquisition, accounted for under FASB ASC Topic 805-50-15-3. Description Fair Value of Assets Acquired During The Three Months Ended March 31, 2020 Assets acquired: Investments in real estate (a) $ 51,052 Other assets 35 Intangible assets 221 Total assets acquired $ 51,308 Liabilities assumed: Accounts payable and accrued expenses $ 126 Other liabilities 83 Total liabilities assumed 209 Estimated fair value of net assets acquired $ 51,099 (a) Includes $69 of property related acquisition costs capitalized during the three months ended March 31, 2020. |
Indebtedness
Indebtedness | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Indebtedness | NOTE 4: Indebtedness The following tables contain summary information concerning our indebtedness as of March 31, 2020: Debt: Outstanding Principal Unamortized Debt Issuance Costs Carrying Amount Type Weighted Average Rate Weighted Average Maturity (in years) Unsecured credit facility (1) $ 251,802 $ (2,209 ) $ 249,593 Floating 2.3% 3.1 Unsecured term loans 300,000 (1,498 ) 298,502 Floating 2.2% 4.1 Mortgages 503,033 (1,587 ) 501,446 Fixed 3.9% 3.7 Total Debt $ 1,054,835 $ (5,294 ) $ 1,049,541 3.0% 3.7 (1) The unsecured credit facility total capacity is $350,000, of which $251,802 was outstanding as of March 31, 2020. As of March 31, 2020, we were in compliance with all financial covenants contained in the documents governing our indebtedness. Scheduled maturities on or before December 31, Debt: 2020 2021 2022 2023 2024 Thereafter Unsecured credit facility $ — $ — $ — $ 251,802 $ — $ — Unsecured term loans — — — — 300,000 — Mortgages 6,094 76,174 70,798 107,479 58,028 184,460 Total $ 6,094 $ 76,174 $ 70,798 $ 359,281 $ 358,028 $ 184,460 The following table contains summary information concerning our indebtedness as of December 31, 2019: Debt: Outstanding Unamortized Debt Issuance Costs Carrying Type Weighted Average Rate Weighted Average Maturity (in Unsecured credit facility (1) $ 186,302 $ (2,336 ) $ 183,966 Floating 3.2% 3.4 Unsecured term loans 300,000 (1,582 ) 298,418 Floating 3.1% 4.3 Mortgages 504,876 (1,688 ) 503,188 Fixed 3.9% 4.0 Total Debt $ 991,178 $ (5,606 ) $ 985,572 3.5% 4.0 (1) The unsecured credit facility total capacity was $350,000, of which $186,302 was outstanding as of December 31, 2019. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
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 amounts and estimated net fair values of our derivative instruments as of March 31, 2020 and December 31, 2019: As of March 31, 2020 As of December 31, 2019 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 $ — $ 1,495 $ 150,000 $ 953 $ — Interest rate collars 250,000 — 14,875 250,000 — 4,330 Forward interest rate swaps — — 14,567 — — 3,439 Total $ 400,000 $ — $ 30,937 $ 400,000 $ 953 $ 7,769 On March 2, 2020 we entered into a forward-starting interest rate swap with a no tional value of $ and a strike rate of 0.985 %. This forward interest rate swap has an effective date of May 17, 2022 and a maturity date of May 17, 2027 . 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 $138 to earnings within interest expense for the three months ended March 31, 2020, and we expect $6,585 to be reclassified out of accumulated other comprehensive income into earnings over the next 12 months. |
Stockholders' Equity and Noncon
Stockholders' Equity and Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity and Noncontrolling Interests | NOTE 6: Stockholders’ Equity and Noncontrolling Interests Stockholders’ Equity On March 16, 2020, our board of directors declared a dividend of $0.18 per share on our common stock, which was paid on April 24, 2020 to common stockholders of record as of April 2, 2020. During the three months ended March 31, 2020, we also paid $160 of dividends on restricted common share awards that vested during the period. On August 4, 2017, we entered into an At-the-Market Issuance Sales Agreement (the “ATM Sales Agreement”) with various sales agents. Pursuant to the ATM Sales Agreement, we may offer and sell shares of our common stock, $0.01 par value per share, having an aggregate offering price of up to $150,000, from time to time through the sales agents. The sales agents are entitled to compensation in an agreed amount not to exceed 2.0% of the gross sales price per share for any shares sold from time to time under the ATM Sales Agreement. We have no obligation to sell any of the shares under the ATM Sales Agreement and may at any time suspend solicitations and offers under the ATM Sales Agreement. No shares were issued under the ATM Sale Agreement during the three months ended March 31, 2020. On February 20, 2020, we entered into an underwriting agreement with KeyBanc Capital Markets Inc. and BMO Capital Markets Corp., as representatives of the several underwriters named therein (collectively, the “Underwriters”), BMO Capital Markets Corp. (the “Forward Seller”), and Bank of Montreal (the “Forward Counterparty”) relating to the offering of an aggregate of 10,350,000 shares of common stock at a price to the Underwriters of $14.688 per share, consisting of 10,350,000 shares of common stock offered by the Forward Seller in connection with the forward sale agreements described below (including 1,350,000 shares offered pursuant to the Underwriter’s option to purchase additional shares, which was exercised in full). We did not initially receive any proceeds from the sale of common stock by the Forward Seller. We completed the offering on February 24, 2020. In connection with the offering, we also entered into two forward sale agreements. The first forward sale agreement (the “Initial Forward Sale Agreement”), dated February 20, 2020, with the Forward Seller and Forward Counterparty, and the second forward sale agreement (the “Additional Forward Sale Agreement”, together with the Initial Forward Sale Agreement, the “Forward Sale Agreements”), dated February 20, 2020, with the Forward Seller and the Forward Counterparty. In connection with the Forward Sale Agreements, the Forward Seller or its affiliate borrowed from third parties and sold to the Underwriters an aggregate of 10,350,000 shares of common stock that was sold in the offering. We expect to physically settle the Forward Sale Agreements and receive proceeds from the sale of those shares upon one or more such physical settlements within approximately twelve months from the date of the prospectus, earlier than February 24, 2021, the scheduled maturity date of the Forward Sale Agreements. Although we expect to settle the Forward Sale Agreements entirely by the physical delivery of shares of common stock for cash proceeds, we may also elect to cash or net share settle all or a portion of its obligations under the Forward Sale Agreements, in which case, we may receive or owe cash or shares of common stock from or to the Forward Seller. The Forward Sale Agreements provide for an initial forward sale price of $14.688 per share, subject to certain adjustments pursuant to the terms of each of the Forward Sale Agreements. The Forward Sale Agreements are subject to early termination or settlement under certain circumstances. We evaluated the accounting for the Forward Sale Agreements under FASB ASC Topic 480 “Distinguishing Liabilities from Equity” and FASB ASC Topic 815 “Derivatives and Hedging”. As the Forward Sale Agreements are considered indexed to our own equity and since they meet the equity classification conditions in ASC 815-40-25, the Forward Sale Agreements have been classified as equity. On March 31, 2020, we physically settled $50,000 under the Forward Sale Agreements by issuing 3,406,000 shares. A s of March 31, 2020, 6,944,000 shares remain to be settled under the Forward Sale Agreements, which if physically settled would provide proceed to us of $100,753 based on the forward price as of May 4, 2020. Noncontrolling Interest During the three months ended March 31, 2020, holders of IROP units exchanged 82,357 units for 82,357 shares of our common stock. As of March 31, 2020, 789,134 IROP units held by unaffiliated third parties remain outstanding. On March 16, 2020, our board of directors declared a dividend of $0.18 per unit, which was paid on April 24, 2020 to IROP LP unitholders of record as of April 2, 2020. |
Equity Compensation Plans
Equity Compensation Plans | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Compensation Plans | NOTE 7: Equity Compensation Plans Long Term Incentive Plan In May 2016, our shareholders approved and our board of directors adopted an amended and restated Long Term Incentive Plan (the “Incentive Plan”), which provides for the 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 (“RSUs”), 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, we have granted restricted shares, RSUs, and PSUs to our employees. These awards generally vest or vested over a two- to four-year On January 2, 2020, our compensation committee awarded, to our community-level employees, 71,604 restricted stock awards, valued at $13.86 per share, or $993 in the aggregate. These restricted stock awards vest over a two-year On February 4, 2020, our compensation committee awarded, to our non-executive corporate employees, 62,483 restricted stock awards, valued at $14.88 per share, or $930 in the aggregate. These restricted stock awards vest over a three-year four-year three-year three-year one-year During the three months ended March 31, 2020, a portion of the RSUs and PSUs granted were issued to employees who are retirement eligible. While the terms of the awards still provide for three-to-four years of time vesting, the fact that the grantees are retirement eligible results in immediate recognition of the associated stock-based compensation expense totaling $1,667. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2020 and 2019: For the Three Months Ended March 31, 2020 2019 Net income $ (374 ) $ 2,566 Income allocated to noncontrolling interest 2 (26 ) Net income allocable to common shares (372 ) 2,540 Weighted-average shares outstanding—Basic 90,895,488 88,989,450 Weighted-average shares outstanding—Diluted 90,895,488 89,516,224 Earnings per share—Basic $ 0.00 $ 0.03 Earnings per share—Diluted $ 0.00 $ 0.03 Certain IROP units, restricted stock awards, RSUs, PSUs, and forward sale agreements were excluded from the earnings (loss) per share computation because their effect would have been anti-dilutive, totaling 9,009,167 and 904,567 for the three months ended March 31, 2020 and 2019, respectively. |
Other Disclosures
Other Disclosures | 3 Months Ended |
Mar. 31, 2020 | |
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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 10: Subsequent Events During and subsequent to the first quarter of 2020, the outbreak of COVID-19 has disrupted businesses and has slowed economic activity. IRT has been impacted by the COVID-19 pandemic and, in response, we have made numerous operational and policy changes to: (1) comply with governmental mandates on a jurisdiction by jurisdiction basis; (2) protect our employees, residents, and prospective residents; and (3) minimize the financial impact to IRT. The extent to which COVID-19 impacts our business, operations and financial results will depend on numerous evolving factors that are out of management’s control and that we are not able to predict at this time, including but not limited to: (1) the duration and scope of the COVID-19 outbreak; (2) the pandemic’s impact on current and future economic activity; and (3) the actions of governments, businesses and individuals in response to the COVID-19 pandemic. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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 (“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, 2019 included in our 2019 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 the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification Topic 810, “Consolidation”, IROP is considered a variable interest entity to which we are the primary beneficiary. As our significant asset is our investment in IROP, substantially all of our assets and liabilities represent the assets and liabilities of IROP. |
Use of Estimates | c. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. |
Cash and Cash Equivalents | d. Cash and Cash Equivalents Cash and cash equivalents include cash held in banks and highly liquid investments with maturities of three months or less when purchased. Cash, including amounts restricted, may at times exceed the Federal Deposit Insurance Corporation deposit insurance limit of $250 per institution. We mitigate credit risk by placing cash and cash equivalents with major financial institutions. To date, we have not experienced any losses on cash and cash equivalents. |
Restricted Cash | e. Restricted Cash Restricted cash includes escrows of our funds held by lenders to fund certain expenditures, such as real estate taxes and insurance, or to be released at our discretion upon the occurrence of certain pre-specified events. As of March 31, 2020 and December 31, 2019, we had $4,740 and $4,545, 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 in-place lease assets is amortized over the assumed lease up period, typically six months. During the three months ended March 31, 2020, we acquired in-place leases with a value of $221, as part of related property acquisitions that are discussed further in Note 3. For the three months ended March 31, 2020 and 2019, we recorded $371 and $556, respectively, of amortization expense for intangible assets. For the three months ended March 31, 2020 and 2019, we wrote-off fully amortized intangible assets of $447 and $813, respectively. As of March 31, 2020, we expect to record additional amortization expense on current in-place intangible assets of $260 for the remainder of 2020. Impairment of Long-Lived Assets Management evaluates the recoverability of our investment in real estate assets, including related identifiable intangible assets, in accordance with FASB ASC Topic 360, “Property, Plant and Equipment”. This statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that recoverability of the assets is not assured. Management reviews our long-lived assets on an ongoing basis and evaluates the recoverability of the carrying value when there is an indicator of impairment. An impairment charge is recorded when it is determined that the carrying value of the asset exceeds the fair value. The estimated cash flows used for the impairment analysis and the determination of estimated fair value are based on our plans for the respective assets and our views of market and economic conditions. The estimates consider matters such as current and historical rental rates, occupancies for the respective and/or comparable properties, and recent sales data for comparable properties. Changes in estimated future cash flows due to changes in our plans or views of market and economic conditions could result in recognition of impairment losses, which, under the applicable accounting guidance, could be substantial. Depreciation Expense Depreciation expense for real estate assets is computed using a straight-line method based on a life of 40 years for buildings and improvements and five to ten years for equipment and fixtures. For the three months ended March 31, 2020 and 2019, we recorded $14,457 and $11,891 of depreciation expense, respectively. |
Revenue and Expenses | g. Revenue and Expenses Rental and other property revenue Management accounts for rental income in accordance with FASB ASC Topic 842, “Leases.” We primarily lease apartments units under operating leases generally with terms of one year or less. Rental payments are generally due monthly and rental revenues are recognized on an accrual basis when earned. 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 and (2) the lease component is the predominant element and (3) the combined single lease component would be classified as an operating lease. We make ongoing estimates of the collectability of our base rents, tenant reimbursements, and other service fees included within rental and other property revenue. If collectability is not probable, we adjust rental and other property income for the amount of uncollectible revenue. For the three months ended March 31, 2020 and 2019, we recognized gains of $3 and $6, respectively, related to recoveries of lost rental revenue due to natural disasters and other insurable events from our insurance providers. Advertising Expenses For the three months ended March 31, 2020 and 2019, we incurred $608 and $548 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 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 three months ended March 31, 2020. The following table summarizes the carrying amount and the fair value of our financial instruments as of the periods indicated: As of March 31, 2020 As of December 31, 2019 Financial Instrument Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets Cash and cash equivalents $ 57,436 $ 57,436 $ 9,888 $ 9,888 Restricted cash 4,740 4,740 4,545 4,545 Derivative assets — — 953 953 Liabilities Debt: Unsecured credit facility 249,593 251,802 183,966 186,302 Term loans 298,502 300,000 298,418 300,000 Mortgages 501,446 518,180 503,188 505,510 Derivative liabilities 30,937 30,937 7,769 7,769 |
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 In accordance with FASB ASC Topic 842, “Leases”, lessees are required to recognize a right-of-use asset and a lease liability on the balance sheet at the lease commencement date for all leases, except those leases with terms of less than a year. We lease corporate office space under leases with terms of up to 10 years and that may include extension options, but that do not include any residual value guarantees or restrictive covenants. As of March 31, 2020, we have $2,753 of operating lease right-of-use assets and $3,116 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 $139 of total operating lease expense during the three months ended March 31, 2020, 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 months ended March 31, 2020 and 2019. 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 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 2016, the FASB issued an accounting standard classified under FASB ASC Topic 326, “Financial Instruments – Credit Losses.” The amendments in this update revise the current approach to estimate credit losses on certain financial assets, including trade and other receivables, available-for-sale securities and other financial instruments. The amendments require entities to estimate a lifetime expected credit loss for certain financial instruments, including trade receivable. This standard is effective for annual periods beginning after December 15, 2019, 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, 2020. The adoption of this standard has not had an effect on our consolidated financial statements. 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. In March 2020, the FASB issued an accounting standard classified under FASB ASC Topic 848, “Reference Rate Reform.” The amendments in this update contain practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASC 848 is optional and may be elected over time as reference rate reform activities occur. During the first quarter of 2020, we have elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We will continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 three months ended March 31, 2020. The following table summarizes the carrying amount and the fair value of our financial instruments as of the periods indicated: As of March 31, 2020 As of December 31, 2019 Financial Instrument Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets Cash and cash equivalents $ 57,436 $ 57,436 $ 9,888 $ 9,888 Restricted cash 4,740 4,740 4,545 4,545 Derivative assets — — 953 953 Liabilities Debt: Unsecured credit facility 249,593 251,802 183,966 186,302 Term loans 298,502 300,000 298,418 300,000 Mortgages 501,446 518,180 503,188 505,510 Derivative liabilities 30,937 30,937 7,769 7,769 |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Banking And Thrift [Abstract] | |
Summary of Investments in Real Estate | The following table summarizes our investments in real estate: As of March 31, 2020 As of December 31, 2019 Depreciable Lives (In years) Land $ 238,723 $ 234,050 — Building 1,499,441 1,453,052 40 Furniture, fixtures and equipment 118,596 109,263 5-10 Total investment in real estate $ 1,856,760 $ 1,796,365 Accumulated depreciation (172,789 ) (158,435 ) Investments in real estate, net $ 1,683,971 $ 1,637,930 |
Summary of Fair Value of Assets and Liabilities | The following table summarizes the aggregate relative fair value of the assets and liabilities associated with the property acquired during the three-month period ended March 31, 2020, on the date of acquisition, accounted for under FASB ASC Topic 805-50-15-3. Description Fair Value of Assets Acquired During The Three Months Ended March 31, 2020 Assets acquired: Investments in real estate (a) $ 51,052 Other assets 35 Intangible assets 221 Total assets acquired $ 51,308 Liabilities assumed: Accounts payable and accrued expenses $ 126 Other liabilities 83 Total liabilities assumed 209 Estimated fair value of net assets acquired $ 51,099 (a) Includes $69 of property related acquisition costs capitalized during the three months ended March 31, 2020. |
Indebtedness (Tables)
Indebtedness (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary Information Concerning Indebtedness | The following tables contain summary information concerning our indebtedness as of March 31, 2020: Debt: Outstanding Principal Unamortized Debt Issuance Costs Carrying Amount Type Weighted Average Rate Weighted Average Maturity (in years) Unsecured credit facility (1) $ 251,802 $ (2,209 ) $ 249,593 Floating 2.3% 3.1 Unsecured term loans 300,000 (1,498 ) 298,502 Floating 2.2% 4.1 Mortgages 503,033 (1,587 ) 501,446 Fixed 3.9% 3.7 Total Debt $ 1,054,835 $ (5,294 ) $ 1,049,541 3.0% 3.7 (1) The unsecured credit facility total capacity is $350,000, of which $251,802 was outstanding as of March 31, 2020. As of March 31, 2020, we were in compliance with all financial covenants contained in the documents governing our indebtedness. Scheduled maturities on or before December 31, Debt: 2020 2021 2022 2023 2024 Thereafter Unsecured credit facility $ — $ — $ — $ 251,802 $ — $ — Unsecured term loans — — — — 300,000 — Mortgages 6,094 76,174 70,798 107,479 58,028 184,460 Total $ 6,094 $ 76,174 $ 70,798 $ 359,281 $ 358,028 $ 184,460 The following table contains summary information concerning our indebtedness as of December 31, 2019: Debt: Outstanding Unamortized Debt Issuance Costs Carrying Type Weighted Average Rate Weighted Average Maturity (in Unsecured credit facility (1) $ 186,302 $ (2,336 ) $ 183,966 Floating 3.2% 3.4 Unsecured term loans 300,000 (1,582 ) 298,418 Floating 3.1% 4.3 Mortgages 504,876 (1,688 ) 503,188 Fixed 3.9% 4.0 Total Debt $ 991,178 $ (5,606 ) $ 985,572 3.5% 4.0 (1) The unsecured credit facility total capacity was $350,000, of which $186,302 was outstanding as of December 31, 2019. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Aggregate Amount and Estimated Net Fair Values of Our Derivative Instruments | The following table summarizes the aggregate notional amounts and estimated net fair values of our derivative instruments as of March 31, 2020 and December 31, 2019: As of March 31, 2020 As of December 31, 2019 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 $ — $ 1,495 $ 150,000 $ 953 $ — Interest rate collars 250,000 — 14,875 250,000 — 4,330 Forward interest rate swaps — — 14,567 — — 3,439 Total $ 400,000 $ — $ 30,937 $ 400,000 $ 953 $ 7,769 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2020 and 2019: For the Three Months Ended March 31, 2020 2019 Net income $ (374 ) $ 2,566 Income allocated to noncontrolling interest 2 (26 ) Net income allocable to common shares (372 ) 2,540 Weighted-average shares outstanding—Basic 90,895,488 88,989,450 Weighted-average shares outstanding—Diluted 90,895,488 89,516,224 Earnings per share—Basic $ 0.00 $ 0.03 Earnings per share—Diluted $ 0.00 $ 0.03 |
Organization - Additional Infor
Organization - Additional Information (Detail) | Mar. 31, 2020Property |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of multifamily properties owned | 58 |
Number of units located with multifamily properties | 15,805 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Jan. 01, 2019 | |
Significant Accounting Policies [Line Items] | ||||
Federal Deposit Insurance Corporation deposit insurance limit per institution | $ 250,000 | |||
Restricted cash | $ 4,740,000 | $ 4,545,000 | ||
Acquisition of above-market in-place leases, amortization period | 6 months | |||
Amortization expense for intangible assets | $ 371,000 | $ 556,000 | ||
Write-off of amortized intangible assets | 447,000 | 813,000 | ||
Additional amortization expense on current in-place intangible assets | 260,000 | |||
Depreciation expense | 14,457,000 | 11,891,000 | ||
Advertising expenses | 608,000 | 548,000 | ||
Transfers of assets between Level 1 and Level 2 | 0 | |||
Transfers of assets between Level 2 and Level 1 | 0 | |||
Transfers of liabilities between Level 1 and Level 2 | 0 | |||
Transfers of liabilities between Level 2 and Level 1 | 0 | |||
Income tax expense | $ 0 | 0 | ||
Taxable income distributable to stockholders | 90.00% | |||
Cumulative-effect adjustment | $ 0 | |||
Topic 842 | ||||
Significant Accounting Policies [Line Items] | ||||
Right-of-use assets | $ 2,753,000 | $ 308,000 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | |||
Lease liability | $ 3,116,000 | $ 308,000 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | |||
Total operating lease expense | $ 139,000 | |||
Natural Disasters and Other Insurable Events | ||||
Significant Accounting Policies [Line Items] | ||||
Rent gains recognized | $ 3,000 | $ 6,000 | ||
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 | $ 221,000 | |||
Minimum | Equipment and Fixtures | ||||
Significant Accounting Policies [Line Items] | ||||
Depreciable Lives | 5 years | |||
Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Cash and cash equivalents maturity period | 3 months | |||
Maximum | Topic 842 | ||||
Significant Accounting Policies [Line Items] | ||||
Operating lease term | 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 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | ||
Assets | |||||
Cash and cash equivalents, Carrying Amount | $ 57,436 | $ 9,888 | $ 9,030 | ||
Restricted cash, Carrying Amount | 4,740 | 4,545 | |||
Derivative assets, Carrying Amount | 953 | ||||
Cash and cash equivalents, Estimated Fair Value | 57,436 | 9,888 | |||
Restricted cash, Estimated Fair Value | 4,740 | 4,545 | |||
Derivative assets, Estimated Fair Value | 953 | ||||
Liabilities | |||||
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount | 1,049,541 | 985,572 | |||
Derivative liabilities, carrying Amount | 30,937 | 7,769 | |||
Derivative liabilities, Estimated Fair Value | 30,937 | 7,769 | |||
Unsecured Credit Facility | |||||
Liabilities | |||||
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount | 249,593 | [1] | 183,966 | [2] | |
Indebtedness, net of unamortized discount and deferred financing costs, Estimated Fair Value | 251,802 | 186,302 | |||
Term Loan | |||||
Liabilities | |||||
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount | 298,502 | 298,418 | |||
Indebtedness, net of unamortized discount and deferred financing costs, Estimated Fair Value | 300,000 | 300,000 | |||
Mortgages | |||||
Liabilities | |||||
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount | 501,446 | 503,188 | |||
Indebtedness, net of unamortized discount and deferred financing costs, Estimated Fair Value | $ 518,180 | $ 505,510 | |||
[1] | The unsecured credit facility total capacity is $350,000, of which $251,802 was outstanding as of March 31, 2020. | ||||
[2] | The unsecured credit facility total capacity was $350,000, of which $186,302 was outstanding as of December 31, 2019. |
Investments in Real Estate - Ad
Investments in Real Estate - Additional Information (Detail) $ in Thousands | 1 Months Ended | |
Feb. 29, 2020USD ($)Property | Mar. 31, 2020Property | |
Real Estate Properties [Line Items] | ||
Number of multifamily properties owned | 58 | |
Number of units located with multifamily properties | 15,805 | |
Mckinney, TX | ||
Real Estate Properties [Line Items] | ||
Units | 251 | |
Contract Price | $ | $ 51,204 |
Investments in Real Estate - Su
Investments in Real Estate - Summary of Investments in Real Estate (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Real Estate Properties [Line Items] | ||
Land | $ 238,723 | $ 234,050 |
Building | 1,499,441 | 1,453,052 |
Furniture, fixtures and equipment | 118,596 | 109,263 |
Total investment in real estate | 1,856,760 | 1,796,365 |
Accumulated depreciation | (172,789) | (158,435) |
Investments in real estate, net | $ 1,683,971 | $ 1,637,930 |
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 |
Investments in Real Estate - _2
Investments in Real Estate - Summary of Aggregate Fair Value of Assets and Liabilities (Detail) $ in Thousands | Mar. 31, 2020USD ($) | |
Assets acquired: | ||
Investments in real estate | $ 51,052 | [1] |
Other assets | 35 | |
Intangible assets | 221 | |
Total assets acquired | 51,308 | |
Liabilities assumed: | ||
Accounts payable and accrued expenses | 126 | |
Other liabilities | 83 | |
Total liabilities assumed | 209 | |
Estimated fair value of net assets acquired | $ 51,099 | |
[1] | Includes $69 of property related acquisition costs capitalized during the three months ended March 31, 2020. |
Investments in Real Estate - _3
Investments in Real Estate - Summary of Aggregate Fair Value of Assets and Liabilities (Parenthetical) (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Business Combinations [Abstract] | |
Acquisition costs related to property | $ 69 |
Indebtedness - Summary Informat
Indebtedness - Summary Information Concerning Indebtedness (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | |||
Debt Instrument [Line Items] | ||||
Outstanding Principal | $ 1,054,835 | $ 991,178 | ||
Unamortized Debt Issuance Costs | (5,294) | (5,606) | ||
Carrying Amount | $ 1,049,541 | $ 985,572 | ||
Weighted Average Rate | 3.00% | 3.50% | ||
Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Maturity (in years) | 3 years 8 months 12 days | 4 years | ||
Unsecured Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Outstanding Principal | $ 251,802 | [1] | $ 186,302 | [2] |
Unamortized Debt Issuance Costs | (2,209) | [1] | (2,336) | [2] |
Carrying Amount | $ 249,593 | [1] | $ 183,966 | [2] |
Type | Floating | [1] | Floating | [2] |
Weighted Average Rate | 2.30% | [1] | 3.20% | [2] |
Unsecured Credit Facility | Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Maturity (in years) | 3 years 1 month 6 days | [1] | 3 years 4 months 24 days | [2] |
Unsecured Term Loans | ||||
Debt Instrument [Line Items] | ||||
Outstanding Principal | $ 300,000 | $ 300,000 | ||
Unamortized Debt Issuance Costs | (1,498) | (1,582) | ||
Carrying Amount | $ 298,502 | $ 298,418 | ||
Type | Floating | Floating | ||
Weighted Average Rate | 2.20% | 3.10% | ||
Unsecured Term Loans | Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Maturity (in years) | 4 years 1 month 6 days | 4 years 3 months 18 days | ||
Mortgages | ||||
Debt Instrument [Line Items] | ||||
Outstanding Principal | $ 503,033 | $ 504,876 | ||
Unamortized Debt Issuance Costs | (1,587) | (1,688) | ||
Carrying Amount | $ 501,446 | $ 503,188 | ||
Type | Fixed | Fixed | ||
Weighted Average Rate | 3.90% | 3.90% | ||
Mortgages | Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Maturity (in years) | 3 years 8 months 12 days | 4 years | ||
[1] | The unsecured credit facility total capacity is $350,000, of which $251,802 was outstanding as of March 31, 2020. | |||
[2] | The unsecured credit facility total capacity was $350,000, of which $186,302 was outstanding as of December 31, 2019. |
Indebtedness - Summary Inform_2
Indebtedness - Summary Information Concerning Indebtedness (Parenthetical) (Detail) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | ||
Debt Instrument [Line Items] | ||||
Outstanding Principal | $ 1,054,835,000 | $ 991,178,000 | ||
Unsecured Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility borrowing capacity | 350,000,000 | 350,000,000 | ||
Outstanding Principal | $ 251,802,000 | [1] | $ 186,302,000 | [2] |
[1] | The unsecured credit facility total capacity is $350,000, of which $251,802 was outstanding as of March 31, 2020. | |||
[2] | The unsecured credit facility total capacity was $350,000, of which $186,302 was outstanding as of December 31, 2019. |
Indebtedness - Maturity of Inde
Indebtedness - Maturity of Indebtedness (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
Debt Instrument [Line Items] | |
2020 | $ 6,094 |
2021 | 76,174 |
2022 | 70,798 |
2023 | 359,281 |
2024 | 358,028 |
Thereafter | 184,460 |
Mortgages | |
Debt Instrument [Line Items] | |
2020 | 6,094 |
2021 | 76,174 |
2022 | 70,798 |
2023 | 107,479 |
2024 | 58,028 |
Thereafter | 184,460 |
Unsecured Credit Facility | |
Debt Instrument [Line Items] | |
2023 | 251,802 |
Unsecured Term Loans | |
Debt Instrument [Line Items] | |
2024 | $ 300,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Aggregate Amount and Estimated Net Fair Values of Derivative Instruments (Detail) - Cash Flow Hedge - USD ($) | Mar. 31, 2020 | Mar. 02, 2020 | Dec. 31, 2019 |
Derivative Instruments Gain Loss [Line Items] | |||
Notional | $ 400,000,000 | $ 400,000,000 | |
Fair Value of Assets | 953,000 | ||
Fair Value of Liabilities | 30,937,000 | 7,769,000 | |
Interest Rate Swap | |||
Derivative Instruments Gain Loss [Line Items] | |||
Notional | 150,000,000 | 150,000,000 | |
Fair Value of Assets | 953,000 | ||
Fair Value of Liabilities | 1,495,000 | ||
Interest Rate Collar | |||
Derivative Instruments Gain Loss [Line Items] | |||
Notional | 250,000,000 | 250,000,000 | |
Fair Value of Liabilities | 14,875,000 | 4,330,000 | |
Forward Interest Rate Swap | |||
Derivative Instruments Gain Loss [Line Items] | |||
Notional | $ 150,000,000 | ||
Fair Value of Liabilities | $ 14,567,000 | $ 3,439,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | Mar. 02, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative Instruments Gain Loss [Line Items] | ||||
Realized gains on interest rate hedges reclassified to earnings | $ 138,000 | |||
Cash Flow Hedge | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative, notional amount | $ 400,000,000 | $ 400,000,000 | ||
Derivative, strike rate for the forward interest rate swap contract | 0.985% | |||
Cash Flow Hedge | Forward Interest Rate Swap | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative, notional amount | $ 150,000,000 | |||
Derivative, effective date | May 17, 2022 | |||
Derivative, maturity date | May 17, 2027 | |||
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 | $ 6,585,000 |
Stockholders' Equity and Nonc_2
Stockholders' Equity and Noncontrolling Interests - Additional Information (Detail) | Mar. 16, 2020$ / shares | Feb. 20, 2020Agreement$ / sharesshares | Mar. 31, 2020USD ($)$ / sharesshares | Mar. 31, 2019$ / sharesshares | Aug. 04, 2017USD ($)$ / shares |
Class Of Stock [Line Items] | |||||
Dividend declared per share | $ / shares | $ 0.18 | $ 0.18 | |||
Dividends paid | $ | $ 160,000 | ||||
At-the-market sales agreement, common stock par value per share | $ / shares | $ 0.01 | ||||
At-the-market agreement to sell common shares, maximum offer price | $ | $ 150,000,000 | ||||
At-the-market agreement to sell common shares, compensation to sales agents | 2.00% | ||||
At-the-market sales agreement, obligation to sell common shares | $ | $ 0 | ||||
Limited partnership interest received in exchange for issuance of common stock | 82,357 | ||||
OP Units outstanding | 789,134 | ||||
Common Shares | |||||
Class Of Stock [Line Items] | |||||
Common stock issued | 3,406,000 | 510,000 | |||
Conversion of noncontrolling interest to common shares (in Shares) | 82,357 | ||||
Underwriting Agreement | BMO Capital Markets and Bank of Montreal | |||||
Class Of Stock [Line Items] | |||||
Common stock issued | 10,350,000 | ||||
Share price | $ / shares | $ 14.688 | ||||
Underwriter’s option to purchase additional shares | 1,350,000 | ||||
ATM Sales Agreement | |||||
Class Of Stock [Line Items] | |||||
Shares issued | 0 | ||||
Forward Sale Agreement | |||||
Class Of Stock [Line Items] | |||||
Shares issued | 3,406,000 | ||||
Common stock issued | 10,350,000 | ||||
Share price | $ / shares | $ 14.688 | ||||
Number of agreements | Agreement | 2 | ||||
Settlement value of shares | $ | $ 50,000,000 | ||||
Settlement of remaining shares | 6,944,000 | ||||
Proceeds from sale of stock upon settlement | $ | $ 100,753,000 | ||||
Dividend Declared | |||||
Class Of Stock [Line Items] | |||||
Declaration date | Mar. 16, 2020 | ||||
Dividend declared per share | $ / shares | $ 0.18 | ||||
Payment date | Apr. 24, 2020 | ||||
Record date | Apr. 2, 2020 | ||||
Dividend Declared | Noncontrolling Interests | |||||
Class Of Stock [Line Items] | |||||
Declaration date | Mar. 16, 2020 | ||||
Dividend declared per share | $ / shares | $ 0.18 | ||||
Payment date | Apr. 24, 2020 | ||||
Record date | Apr. 2, 2020 |
Equity Compensation Plans - Add
Equity Compensation Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Mar. 02, 2020 | Feb. 04, 2020 | Jan. 02, 2020 | May 31, 2016 | Mar. 31, 2020 | Dec. 31, 2019 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common stock, shares authorized | 4,300,000 | 300,000,000 | 300,000,000 | |||
Expiration date of Incentive Plan | May 12, 2026 | |||||
Restricted Stock | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Awards vesting period | 4 years | 3 years | 2 years | |||
Weighted average fair value, granted | $ 13.87 | |||||
Grant date fair value | $ 935 | |||||
Restricted Stock | Community-level Employees | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares issued | 71,604 | |||||
Weighted average fair value, granted | $ 13.86 | |||||
Grant date fair value | $ 993 | |||||
Restricted Stock | Non Executive Corporate Employees | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares issued | 62,483 | |||||
Weighted average fair value, granted | $ 14.88 | |||||
Grant date fair value | $ 930 | |||||
Restricted Stock | Executive Officers | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares issued | 67,381 | |||||
Performance Share Units | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Awards vesting period | 3 years | |||||
Shares issued | 202,145 | |||||
Grant date fair value | $ 2,379 | |||||
Restricted Stock and Performance Shares Units | Employee | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock compensation expense | $ 1,667 | |||||
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% | |||||
Minimum | Restricted Stock and Performance Shares Units | Employee | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Awards vesting period | 3 years | |||||
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% | |||||
Maximum | Restricted Stock and Performance Shares Units | Employee | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Awards vesting period | 4 years | |||||
Long Term Incentive Plan | Performance Share Units | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Awards performance period | 3 years | |||||
Awards service period | 1 year | |||||
Long Term Incentive Plan | Minimum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Awards vesting period | 2 years | |||||
Long Term Incentive Plan | Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Awards vesting period | 4 years |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ (374) | $ 2,566 |
Income allocated to noncontrolling interest | 2 | (26) |
Net income (loss) allocable to common shares | $ (372) | $ 2,540 |
Weighted-average shares outstanding—Basic | 90,895,488 | 88,989,450 |
Weighted-average shares outstanding—Diluted | 90,895,488 | 89,516,224 |
Earnings per share—Basic | $ 0 | $ 0.03 |
Earnings per share—Diluted | $ 0 | $ 0.03 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings (loss) per share, amount | 9,009,167 | 904,567 |