Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 27, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
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 | 102,147,512 | |
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, 2021 | Dec. 31, 2020 |
Investments in real estate: | ||
Investments in real estate, at cost | $ 1,922,071 | $ 1,916,770 |
Accumulated depreciation | (223,187) | (208,618) |
Investments in real estate, net | 1,698,884 | 1,708,152 |
Cash and cash equivalents | 8,653 | 8,751 |
Restricted cash | 4,449 | 4,864 |
Other assets | 12,824 | 12,338 |
Derivative assets | 2,810 | |
Intangible assets, net of accumulated amortization of $396 and $0, respectively | 396 | 792 |
Total Assets | 1,728,016 | 1,734,897 |
LIABILITIES AND EQUITY: | ||
Indebtedness, net of unamortized deferred financing costs of $3,844 and $4,208, respectively | 947,631 | 945,686 |
Accounts payable and accrued expenses | 24,535 | 25,416 |
Accrued interest payable | 1,888 | 1,976 |
Dividends payable | 12,293 | 12,257 |
Derivative liabilities | 19,540 | 29,842 |
Other liabilities | 6,991 | 6,949 |
Total Liabilities | 1,012,878 | 1,022,126 |
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, 102,033,732 and 101,803,762 shares issued and outstanding, including 267,296 and 339,468 unvested restricted common share awards, respectively | 1,018 | 1,018 |
Additional paid-in capital | 920,042 | 919,615 |
Accumulated other comprehensive income (loss) | (20,497) | (33,822) |
Retained earnings (accumulated deficit) | (190,151) | (178,751) |
Total stockholders’ equity | 710,412 | 708,060 |
Noncontrolling interests | 4,726 | 4,711 |
Total Equity | 715,138 | 712,771 |
Total Liabilities and Equity | $ 1,728,016 | $ 1,734,897 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Intangible assets, accumulated amortization | $ 396 | $ 0 |
Indebtedness, unamortized deferred financing costs | $ 3,844 | $ 4,208 |
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 | 102,033,732 | 101,803,762 |
Common stock, shares outstanding | 102,033,732 | 101,803,762 |
Unvested restricted common share awards | 267,296 | 339,468 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
REVENUE: | ||
Rental and other property revenue | $ 54,811 | $ 51,156 |
Other revenue | 301 | 194 |
Total revenue | 55,112 | 51,350 |
EXPENSES: | ||
Property operating expenses | $ 20,838 | $ 19,737 |
Type of Cost, Good or Service [Extensible List] | us-gaap:AssetManagement1Member | us-gaap:AssetManagement1Member |
Property management expenses | $ 1,943 | $ 2,156 |
General and administrative expenses | 5,942 | 5,376 |
Depreciation and amortization expense | 16,552 | 14,828 |
Abandoned deal costs | 130 | |
Casualty losses | 359 | |
Total expenses | 45,634 | 42,227 |
Interest expense | (8,385) | (9,497) |
Net income (loss): | 1,093 | (374) |
(Income) loss allocated to noncontrolling interest | (7) | 2 |
Net income (loss) allocable to common shares | $ 1,086 | $ (372) |
Earnings per share: | ||
Basic | $ 0.01 | $ 0 |
Diluted | $ 0.01 | $ 0 |
Weighted-average shares: | ||
Basic | 101,678,865 | 90,895,488 |
Diluted | 102,763,106 | 90,895,488 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income (loss) | $ 1,093 | $ (374) |
Other comprehensive income (loss): | ||
Change in fair value of interest rate hedges | 15,173 | (23,422) |
Realized (losses) gains on interest rate hedges reclassified to earnings | (1,760) | (418) |
Total other comprehensive income (loss) | 13,413 | (23,840) |
Comprehensive income (loss) before allocation to noncontrolling interests | 14,506 | (24,214) |
Allocation to noncontrolling interests | (95) | 191 |
Comprehensive income (loss) | $ 14,411 | $ (24,023) |
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, 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 | ||||||
Net income (loss) | (374) | (372) | (372) | (2) | |||
Other comprehensive income (loss) | (23,840) | (23,651) | (23,651) | (189) | |||
Stock compensation | 2,644 | $ 2 | 2,642 | 2,644 | |||
Stock compensation expense (in Shares) | 183,940 | ||||||
Issuance of common shares, net | 49,764 | $ 35 | 49,729 | 49,764 | |||
Issuance of common shares, net (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 | (17,148) | (17,148) | (17,148) | ||||
Distribution to noncontrolling interest declared | (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 | ||||||
Beginning Balance at Dec. 31, 2020 | $ 712,771 | $ 1,018 | 919,615 | (33,822) | (178,751) | 708,060 | 4,711 |
Beginning Balance (in Shares) at Dec. 31, 2020 | 101,803,762 | 101,803,762 | |||||
Net income (loss) | $ 1,093 | 1,086 | 1,086 | 7 | |||
Other comprehensive income (loss) | 13,413 | 13,325 | 13,325 | 88 | |||
Stock compensation | 3,348 | $ 2 | 3,346 | 3,348 | |||
Stock compensation expense (in Shares) | 286,647 | ||||||
Issuance of common shares, net | (59) | (59) | (59) | ||||
Repurchase of shares related to equity award tax withholding | (2,862) | $ (2) | (2,860) | (2,862) | |||
Repurchase of shares related to equity award tax withholding (in shares) | (56,677) | ||||||
Common dividends declared | (12,486) | (12,486) | (12,486) | ||||
Distribution to noncontrolling interest declared | (80) | (80) | |||||
Ending Balance at Mar. 31, 2021 | $ 715,138 | $ 1,018 | $ 920,042 | $ (20,497) | $ (190,151) | $ 710,412 | $ 4,726 |
Ending Balance (in shares) at Mar. 31, 2021 | 102,033,732 | 102,033,732 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Stockholders Equity [Abstract] | ||
Common dividends declared per share | $ 0.12 | $ 0.18 |
Distribution to noncontrolling interest declared per share | $ 0.12 | $ 0.18 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 1,093 | $ (374) |
Adjustments to reconcile net income to cash flow from operating activities: | ||
Depreciation and amortization | 16,552 | 14,828 |
Amortization of deferred financing costs | 364 | 361 |
Stock compensation | 3,326 | 2,627 |
Casualty losses | 359 | |
Amortization related to derivative instruments | 302 | 280 |
Changes in assets and liabilities: | ||
Other assets | (90) | (875) |
Accounts payable and accrued expenses | (1,321) | (5,171) |
Accrued interest payable | (88) | (59) |
Other liabilities | 141 | 67 |
Cash flow provided by operating activities | 20,638 | 11,684 |
Cash flows from investing activities: | ||
Acquisition of real estate properties | (365) | (50,598) |
Capital expenditures | (6,916) | (8,572) |
Cash flow used in investing activities | (7,281) | (59,170) |
Cash flows from financing activities: | ||
Proceeds from unsecured credit facility and term loans | 9,500 | 65,501 |
Mortgage principal repayments | (7,918) | (1,843) |
Payments for deferred financing costs | (50) | |
Proceeds from issuance of common stock, net | (59) | 49,764 |
Distributions on common stock | (12,450) | (16,493) |
Distributions to noncontrolling interests | (81) | (160) |
Repurchase of shares related to equity award tax withholding | (2,862) | (1,490) |
Cash flow (used in) provided by financing activities | (13,870) | 95,229 |
Net change in cash and cash equivalents, and restricted cash | (513) | 47,743 |
Cash and cash equivalents, and restricted cash, beginning of period | 13,615 | 14,433 |
Cash and cash equivalents, and restricted cash, end of the period | 13,102 | 62,176 |
Reconciliation of cash, cash equivalents, and restricted cash to the Consolidated Balance Sheet | ||
Cash and cash equivalents | 8,653 | 57,436 |
Restricted cash | 4,449 | 4,740 |
Cash and cash equivalents, and restricted cash, end of the period | $ 13,102 | $ 62,176 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021, we owned and operated 56 multifamily apartment properties, that contain 15,667 units across non-gateway U.S markets, including Atlanta, Dallas, 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 of March 31, 2021, IRT owned 99.3% interest in IROP. The remaining 0.7% consists of common units of limited partnership interest issued to third parties in exchange for contributions of properties to IROP. 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, 2021 | |
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, 2020 included in our 2020 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 as to which we are the primary beneficiary. As IRT’s only material asset is its equity interest 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 funds in escrow 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, 2021 and December 31, 2020, we had $4,449 and $4,864, 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 the sale of the asset is probable and actions required to complete the plan of sale indicate that it is unlikely that significant changes to the plan of sale will be made or the plan of sale will be withdrawn. Allocation of Purchase Price of Acquired Assets 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, 2021, we did not acquire any in-place leases. For the three months ended March 31, 2021 and 2020, we recorded $396 and $371, respectively, of amortization expense for intangible assets. For the three months ended March 31, 2021 and 2020, we wrote-off fully amortized intangible assets of $0 and $447, respectively. As of March 31, 2021, we expect to record additional amortization expense on current in-place intangible assets of $396 for the remainder of 2021. 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, 2021 and 2020, we recorded $16,156 and $14,457 of depreciation expense, respectively. For the three months ended March 31, 2021 and 2020, we wrote-off fully depreciated fixed assets of $1,506 and $0, respectively. Casualty Loss Occasionally, we incur losses at our communities from wind storms, floods, fires and similar hazards. A portion of these losses are not covered by our insurance policies due to deductibles. In these cases, we estimate the carrying value of the damaged property and record a casualty loss for the difference between the estimated carrying value and the insurance proceeds. During the three months ended March 31, 2021, we incurred $359 of casualty losses. g. Revenue and Expenses Rental and other property revenue We apply FASB ASC Topic 842, “Leases” with respect to our accounting for rental income. We primarily lease apartment units under operating leases generally with terms of one year or less. Rental payments are generally due monthly and rental revenues are recognized on an accrual basis when earned. We have elected to account for lease (i.e. fixed payments including base rent) and non-lease components (i.e. tenant reimbursements and certain other service fees) as a single combined operating lease component since (1) the timing and pattern of transfer of the lease and non-lease components is the same, (2) the lease component is the predominant element, and (3) the combined single lease component would be classified as an operating lease. We make ongoing estimates of the collectability of our Due to the COVID-19 pandemic, some of our residents have experienced difficulty making rent payments and, as a result, our rent receivables have increased compared to historical levels. This caused us to further evaluate collectability and we recorded a $47 provision for bad debts during the three months ended March 31, 2021 to appropriately reflect management’s estimate for uncollectible accounts. The provision for bad debts was recorded as a reduction to rental and other property income in our consolidated statements of operations. The total adjustment to rental and other property income for the three months ended March 31, 2021 and 2020 were $433 and $337, respectively. To support our residents that were economically impacted and unable to pay their rent in full during 2020, we offered residents deferred rent payment plans whereby the resident could defer between 25% and 75% of their monthly rent for between one and three months. Residents were required to provide evidence of financial hardship and commit to a full 12-month lease term, which provided a longer period over which the deferred rent could be repaid. We accounted for the deferred payment plans as if no change had been made to the original lease agreement and continued to recognize rental income while increasing lease receivables from residents. As of March 31, 2021, deferred rents receivable from residents totaled $41. For the three months ended March 31, 2021 and 2020, we recognized gains of $23 and $3, 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, 2021 and 2020, we incurred $544 and $608 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, 2021. The following table summarizes the carrying amount and the fair value of our financial instruments as of the periods indicated: As of March 31, 2021 As of December 31, 2020 Financial Instrument Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets Cash and cash equivalents $ 8,653 $ 8,653 $ 8,751 $ 8,751 Restricted cash 4,449 4,449 4,864 4,864 Derivative assets 2,810 2,810 - - Liabilities Debt: Unsecured credit facility 192,782 194,302 183,110 184,802 Term loans 298,846 300,000 298,759 300,000 Mortgages 456,003 470,234 463,817 479,929 Derivative liabilities 19,540 19,540 29,842 29,842 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, 2021, we have $2,553 of operating lease right-of-use assets and $2,903 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 $172 of total operating lease expense during the three months ended March 31, 2021, 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. Accordingly, we recorded no income tax expense for the three months ended March 31, 2021 and 2020. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our ordinary taxable income to stockholders. As a REIT, we generally are not subject to federal income tax on taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year during which qualification is lost unless the Internal Revenue Service grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders; however, we believe that we are organized and operate in such a manner as to qualify and maintain treatment as a REIT and intend to operate in such a manner so that we will remain qualified as a REIT for federal income tax purposes. m. Recent Accounting Pronouncements Below is a brief description of recent accounting pronouncements that could have a material effect on our financial statements. Adopted Within these Financial Statements In March 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, 2021 | |
Real Estate [Abstract] | |
Investments in Real Estate | NOTE 3: Investments in Real Estate As of March 31, 2021, our investments in real estate consisted of 56 apartment properties that contain 15,667 units. The following table summarizes our investments in real estate: As of March 31, 2021 As of December 31, 2020 Depreciable Lives (In years) Land $ 251,425 $ 251,365 — Building 1,527,535 1,527,535 40 Furniture, fixtures and equipment 143,111 137,870 5-10 Total investment in real estate $ 1,922,071 $ 1,916,770 Accumulated depreciation (223,187 ) (208,618 ) Investments in real estate, net $ 1,698,884 $ 1,708,152 |
Indebtedness
Indebtedness | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Indebtedness | NOTE 4: Indebtedness The following tables contain summary information concerning our indebtedness as of March 31, 2021: Debt: Outstanding Principal Unamortized Debt Issuance Costs Carrying Amount Type Weighted Average Rate Weighted Average Maturity (in years) Unsecured credit facility (1) $ 194,302 $ (1,520 ) $ 192,782 Floating 1.6% 2.1 Unsecured term loans 300,000 (1,154 ) 298,846 Floating 1.5% 3.1 Mortgages 457,173 (1,170 ) 456,003 Fixed 3.8% 3.0 Total Debt $ 951,475 $ (3,844 ) $ 947,631 2.6% 2.8 (1) The unsecured credit facility total capacity is $350,000, of which $194,302 was outstanding as of March 31, 2021. On March 1, 2021, we drew down on our unsecured credit facility to extinguish a property mortgage totaling $5,975. The property mortgage had a weighted-average rate of 5.7%. On April 5, 2021, we drew down on our unsecured credit facility to extinguish a property mortgage and made partial paydowns on other mortgages totaling $13,666. The property mortgages had a weighted-average rate of 4.2%. As of March 31, 2021, we were in compliance with all financial covenants contained in the documents governing our indebtedness. Scheduled maturities on or before March 31, Debt: 2021 2022 2023 2024 2025 Thereafter Unsecured credit facility $ — $ — $ 194,302 $ — $ — $ — Unsecured term loans — — — 300,000 — — Mortgages 42,489 66,311 107,056 36,798 161,741 42,778 Total $ 42,489 $ 66,311 $ 301,358 $ 336,798 $ 161,741 $ 42,778 The following table contains summary information concerning our indebtedness as of December 31, 2020: Debt: Outstanding Unamortized Debt Issuance Costs Carrying Type Weighted Average Rate Weighted Average Maturity (in Unsecured credit facility (1) $ 184,802 $ (1,692 ) $ 183,110 Floating 1.6% 2.4 Unsecured term loans 300,000 (1,241 ) 298,759 Floating 1.5% 3.3 Mortgages 465,092 (1,275 ) 463,817 Fixed 3.9% 3.2 Total Debt $ 949,894 $ (4,208 ) $ 945,686 2.7% 3.1 (1) The unsecured credit facility total capacity was $350,000, of which $184,802 was outstanding as of December 31, 2020. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 5: Derivative Financial Instruments The following table summarizes the aggregate notional amounts and estimated net fair values of our derivative instruments as of March 31, 2021 and December 31, 2020: As of March 31, 2021 As of December 31, 2020 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 $ — 326 $ 150,000 $ — $ 694 Interest rate collars 250,000 — 10,570 250,000 — 13,331 Forward interest rate swaps — 2,810 8,644 — — 15,817 Total $ 400,000 $ 2,810 19,540 $ 400,000 $ — $ 29,842 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 $1,458 to earnings within interest expense for the three months ended March 31, 2021, and we expect ($8,294) to be reclassified out of accumulated other comprehensive income (loss) into earnings over the next 12 months. |
Stockholders' Equity and Noncon
Stockholders' Equity and Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity and Noncontrolling Interests | NOTE 6: Stockholders’ Equity and Noncontrolling Interests Stockholders’ Equity On March 15, 2021, our board of directors declared a dividend of $0.12 per share on our common stock, which was paid on April 23, 2021 to common stockholders of record as of April 2, 2021. During the three months ended March 31, 2021, we also paid $274 of dividends on restricted common share awards that vested during the period. On November 13, 2020, we entered into an equity distribution agreement pursuant to which we may from time to time offer and sell shares of our common stock having an aggregate offering price of up to $150,000 (the “ATM Program”) in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended. Under the ATM Program, we may also enter into one or more forward sale transactions for the sale of shares of our common stock on a forward basis. The following table summarizes our ATM Program activity, including associated forward sale transactions, since inception. During the three months ended Number of Shares Sold Current forward price Net proceeds Expiration Date of Forward Contract December 31, 2020 900 $ 13.53 $ 12,177 December 13, 2021 March 31, 2021 2,000 14.50 29,000 March 31, 2022 Total 2,900 $ 14.20 $ 41,177 We evaluated the accounting for the forward sale transactions under FASB ASC Topic 480 “Distinguishing Liabilities from Equity” and FASB ASC Topic 815 “Derivatives and Hedging”. As the forward sale transactions are considered indexed to our own equity and since they meet the equity classification conditions in ASC 815-40-25, the forward sale transactions have been classified as equity. Noncontrolling Interest During the three months ended March 31, 2021, no IROP unitholders exchanged any units for shares of our common stock or cash. Subsequent to the three months ended March 31, 2021, IROP unit holders exchanged 110,938 units for 110,938 shares of our common stock. On March 15, 2021, our board of directors declared a dividend of $0.12 per unit, which was paid on April 23, 2021 to IROP LP unitholders of record as of April 2, 2021. |
Equity Compensation Plans
Equity Compensation Plans | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Compensation Plans | NOTE 7: Equity Compensation Plans Long Term Incentive Plan In May 2016, our stockholders 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 directors, employees, officers, and consultants. The Incentive Plan authorizes the grant of time-vested 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 2021 Number of Shares Weighted Average Grant Date Fair Value Per Share Balance, January 1, 406,849 $ 11.68 Granted 171,059 14.01 Vested (165,632 ) 11.21 Forfeited (9,614 ) 12.33 Balance, March 31, (1) 402,662 $ 12.84 (1) The outstanding award balance above included 135,366 and 67,381 RSUs as of March 31, 2021 and December 31, 2020, respectively. On February 18, 2021, our compensation committee awarded 254,493 PSUs to our named executive officers. The number of PSUs earned will be based on attainment of certain performance criteria over a three-year three-year one-year During the three months ended March 31, 2021 and 2020, a portion of the RSUs and PSUs granted were issued to employees who are retirement eligible. The fact that the grantees are retirement eligible resulted in immediate recognition of the associated stock-based compensation expense totaling $2,112 and $1,667, respectively. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 and 2020: For the Three Months Ended March 31, 2021 2020 Net income (loss) $ 1,093 $ (374 ) (Income) loss allocated to noncontrolling interest (7 ) 2 Net income (loss) allocable to common shares 1,086 (372 ) Weighted-average shares outstanding—Basic 101,678,865 90,895,488 Weighted-average shares outstanding—Diluted 102,763,106 90,895,488 Earnings per share—Basic $ 0.01 $ 0.00 Earnings per share—Diluted $ 0.01 $ 0.00 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 3,574,515 and 9,009,167 for the three months ended March 31, 2021 and 2020, respectively. |
Other Disclosures
Other Disclosures | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Other Disclosures | NOTE 9: Other Disclosures Risks and Uncertainties Currently, one of the most significant risks and uncertainties is the duration and scope of the ongoing COVID-19 pandemic, which has disrupted businesses and slowed economic activity. In response to the COVID-19 pandemic, we have made operational and policy changes to: (1) comply with governmental mandates, including eviction moratoria, on a jurisdiction by jurisdiction basis; (2) protect our employees, residents, and prospective residents; and (3) minimize the adverse financial impact to us. The extent to which the COVID-19 pandemic impacts our business, operations and financial results will depend on numerous evolving factors, many of which are not within management’s control, and that we are unable to predict at this time, including but not limited to: (1) the duration and scope of the pandemic; (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. Litigation We are subject to various legal proceedings and claims that arise in the ordinary course of our business operations. Matters which arise out of allegations of bodily injury, property damage, and employment practices are generally covered by insurance. While the resolution of these matters cannot be predicted with certainty, we currently believe the final outcome of such matters will not have a material adverse effect on our financial position, results of operations or cash flows. Loss Contingencies We record an accrual for loss contingencies when a loss is probable and the amount of the loss can be reasonably estimated. Management reviews these accruals quarterly and makes revisions based on changes in facts and circumstances. When a loss contingency is not both probable and reasonably estimable, management does not accrue the loss. However, if the loss (or an additional loss in excess of an earlier accrual) is at least a reasonable possibility and material, then management discloses a reasonable estimate of the possible loss, or range of loss, if such reasonable estimate can be made. If we cannot make a reasonable estimate of the possible loss, or range of loss, then a statement to that effect is disclosed. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2020 included in our 2020 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 as to which we are the primary beneficiary. As IRT’s only material asset is its equity interest 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 funds in escrow 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, 2021 and December 31, 2020, we had $4,449 and $4,864, 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 the sale of the asset is probable and actions required to complete the plan of sale indicate that it is unlikely that significant changes to the plan of sale will be made or the plan of sale will be withdrawn. Allocation of Purchase Price of Acquired Assets 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, 2021, we did not acquire any in-place leases. For the three months ended March 31, 2021 and 2020, we recorded $396 and $371, respectively, of amortization expense for intangible assets. For the three months ended March 31, 2021 and 2020, we wrote-off fully amortized intangible assets of $0 and $447, respectively. As of March 31, 2021, we expect to record additional amortization expense on current in-place intangible assets of $396 for the remainder of 2021. 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, 2021 and 2020, we recorded $16,156 and $14,457 of depreciation expense, respectively. For the three months ended March 31, 2021 and 2020, we wrote-off fully depreciated fixed assets of $1,506 and $0, respectively. Casualty Loss Occasionally, we incur losses at our communities from wind storms, floods, fires and similar hazards. A portion of these losses are not covered by our insurance policies due to deductibles. In these cases, we estimate the carrying value of the damaged property and record a casualty loss for the difference between the estimated carrying value and the insurance proceeds. During the three months ended March 31, 2021, we incurred $359 of casualty losses. |
Revenue and Expenses | g. Revenue and Expenses Rental and other property revenue We apply FASB ASC Topic 842, “Leases” with respect to our accounting for rental income. We primarily lease apartment units under operating leases generally with terms of one year or less. Rental payments are generally due monthly and rental revenues are recognized on an accrual basis when earned. We have elected to account for lease (i.e. fixed payments including base rent) and non-lease components (i.e. tenant reimbursements and certain other service fees) as a single combined operating lease component since (1) the timing and pattern of transfer of the lease and non-lease components is the same, (2) the lease component is the predominant element, and (3) the combined single lease component would be classified as an operating lease. We make ongoing estimates of the collectability of our Due to the COVID-19 pandemic, some of our residents have experienced difficulty making rent payments and, as a result, our rent receivables have increased compared to historical levels. This caused us to further evaluate collectability and we recorded a $47 provision for bad debts during the three months ended March 31, 2021 to appropriately reflect management’s estimate for uncollectible accounts. The provision for bad debts was recorded as a reduction to rental and other property income in our consolidated statements of operations. The total adjustment to rental and other property income for the three months ended March 31, 2021 and 2020 were $433 and $337, respectively. To support our residents that were economically impacted and unable to pay their rent in full during 2020, we offered residents deferred rent payment plans whereby the resident could defer between 25% and 75% of their monthly rent for between one and three months. Residents were required to provide evidence of financial hardship and commit to a full 12-month lease term, which provided a longer period over which the deferred rent could be repaid. We accounted for the deferred payment plans as if no change had been made to the original lease agreement and continued to recognize rental income while increasing lease receivables from residents. As of March 31, 2021, deferred rents receivable from residents totaled $41. For the three months ended March 31, 2021 and 2020, we recognized gains of $23 and $3, 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, 2021 and 2020, we incurred $544 and $608 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, 2021. The following table summarizes the carrying amount and the fair value of our financial instruments as of the periods indicated: As of March 31, 2021 As of December 31, 2020 Financial Instrument Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets Cash and cash equivalents $ 8,653 $ 8,653 $ 8,751 $ 8,751 Restricted cash 4,449 4,449 4,864 4,864 Derivative assets 2,810 2,810 - - Liabilities Debt: Unsecured credit facility 192,782 194,302 183,110 184,802 Term loans 298,846 300,000 298,759 300,000 Mortgages 456,003 470,234 463,817 479,929 Derivative liabilities 19,540 19,540 29,842 29,842 |
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, 2021, we have $2,553 of operating lease right-of-use assets and $2,903 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 $172 of total operating lease expense during the three months ended March 31, 2021, 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. Accordingly, we recorded no income tax expense for the three months ended March 31, 2021 and 2020. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our ordinary taxable income to stockholders. As a REIT, we generally are not subject to federal income tax on taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year during which qualification is lost unless the Internal Revenue Service grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders; however, we believe that we are organized and operate in such a manner as to qualify and maintain treatment as a REIT and intend to operate in such a manner so that we will remain qualified as a REIT for federal income tax purposes. |
Recent Accounting Pronouncements | m. Recent Accounting Pronouncements Below is a brief description of recent accounting pronouncements that could have a material effect on our financial statements. Adopted Within these Financial Statements In March 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, 2021 | |
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, 2021. The following table summarizes the carrying amount and the fair value of our financial instruments as of the periods indicated: As of March 31, 2021 As of December 31, 2020 Financial Instrument Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets Cash and cash equivalents $ 8,653 $ 8,653 $ 8,751 $ 8,751 Restricted cash 4,449 4,449 4,864 4,864 Derivative assets 2,810 2,810 - - Liabilities Debt: Unsecured credit facility 192,782 194,302 183,110 184,802 Term loans 298,846 300,000 298,759 300,000 Mortgages 456,003 470,234 463,817 479,929 Derivative liabilities 19,540 19,540 29,842 29,842 |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Not Found During Migration Deprecated Concept Banking And Thrift [Abstract] | |
Summary of Investments in Real Estate | The following table summarizes our investments in real estate: As of March 31, 2021 As of December 31, 2020 Depreciable Lives (In years) Land $ 251,425 $ 251,365 — Building 1,527,535 1,527,535 40 Furniture, fixtures and equipment 143,111 137,870 5-10 Total investment in real estate $ 1,922,071 $ 1,916,770 Accumulated depreciation (223,187 ) (208,618 ) Investments in real estate, net $ 1,698,884 $ 1,708,152 |
Indebtedness (Tables)
Indebtedness (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary Information Concerning Indebtedness | The following tables contain summary information concerning our indebtedness as of March 31, 2021: Debt: Outstanding Principal Unamortized Debt Issuance Costs Carrying Amount Type Weighted Average Rate Weighted Average Maturity (in years) Unsecured credit facility (1) $ 194,302 $ (1,520 ) $ 192,782 Floating 1.6% 2.1 Unsecured term loans 300,000 (1,154 ) 298,846 Floating 1.5% 3.1 Mortgages 457,173 (1,170 ) 456,003 Fixed 3.8% 3.0 Total Debt $ 951,475 $ (3,844 ) $ 947,631 2.6% 2.8 (1) The unsecured credit facility total capacity is $350,000, of which $194,302 was outstanding as of March 31, 2021. On March 1, 2021, we drew down on our unsecured credit facility to extinguish a property mortgage totaling $5,975. The property mortgage had a weighted-average rate of 5.7%. On April 5, 2021, we drew down on our unsecured credit facility to extinguish a property mortgage and made partial paydowns on other mortgages totaling $13,666. The property mortgages had a weighted-average rate of 4.2%. As of March 31, 2021, we were in compliance with all financial covenants contained in the documents governing our indebtedness. Scheduled maturities on or before March 31, Debt: 2021 2022 2023 2024 2025 Thereafter Unsecured credit facility $ — $ — $ 194,302 $ — $ — $ — Unsecured term loans — — — 300,000 — — Mortgages 42,489 66,311 107,056 36,798 161,741 42,778 Total $ 42,489 $ 66,311 $ 301,358 $ 336,798 $ 161,741 $ 42,778 The following table contains summary information concerning our indebtedness as of December 31, 2020: Debt: Outstanding Unamortized Debt Issuance Costs Carrying Type Weighted Average Rate Weighted Average Maturity (in Unsecured credit facility (1) $ 184,802 $ (1,692 ) $ 183,110 Floating 1.6% 2.4 Unsecured term loans 300,000 (1,241 ) 298,759 Floating 1.5% 3.3 Mortgages 465,092 (1,275 ) 463,817 Fixed 3.9% 3.2 Total Debt $ 949,894 $ (4,208 ) $ 945,686 2.7% 3.1 (1) The unsecured credit facility total capacity was $350,000, of which $184,802 was outstanding as of December 31, 2020. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 and December 31, 2020: As of March 31, 2021 As of December 31, 2020 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 $ — 326 $ 150,000 $ — $ 694 Interest rate collars 250,000 — 10,570 250,000 — 13,331 Forward interest rate swaps — 2,810 8,644 — — 15,817 Total $ 400,000 $ 2,810 19,540 $ 400,000 $ — $ 29,842 |
Stockholders_ Equity and Noncon
Stockholders’ Equity and Noncontrolling Interests (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Summary of ATM Program | The following table summarizes our ATM Program activity, including associated forward sale transactions, since inception. During the three months ended Number of Shares Sold Current forward price Net proceeds Expiration Date of Forward Contract December 31, 2020 900 $ 13.53 $ 12,177 December 13, 2021 March 31, 2021 2,000 14.50 29,000 March 31, 2022 Total 2,900 $ 14.20 $ 41,177 |
Equity Compensation Plans (Tabl
Equity Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Restricted Common Share Awards and RSU of Incentive Plan | 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 2021 Number of Shares Weighted Average Grant Date Fair Value Per Share Balance, January 1, 406,849 $ 11.68 Granted 171,059 14.01 Vested (165,632 ) 11.21 Forfeited (9,614 ) 12.33 Balance, March 31, (1) 402,662 $ 12.84 (1) The outstanding award balance above included 135,366 and 67,381 RSUs as of March 31, 2021 and December 31, 2020, respectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 and 2020: For the Three Months Ended March 31, 2021 2020 Net income (loss) $ 1,093 $ (374 ) (Income) loss allocated to noncontrolling interest (7 ) 2 Net income (loss) allocable to common shares 1,086 (372 ) Weighted-average shares outstanding—Basic 101,678,865 90,895,488 Weighted-average shares outstanding—Diluted 102,763,106 90,895,488 Earnings per share—Basic $ 0.01 $ 0.00 Earnings per share—Diluted $ 0.01 $ 0.00 |
Organization - Additional Infor
Organization - Additional Information (Detail) | Mar. 31, 2021Property |
Class Of Stock [Line Items] | |
Number of multifamily properties owned | 56 |
Number of units located with multifamily properties | 15,667 |
IROP | |
Class Of Stock [Line Items] | |
Ownership interest held by IRT | 99.30% |
Ownership interest held by third parties | 0.70% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Significant Accounting Policies [Line Items] | |||
Federal Deposit Insurance Corporation deposit insurance limit per institution | $ 250,000 | ||
Restricted cash | $ 4,449,000 | $ 4,864,000 | |
Acquisition of above-market in-place leases, amortization period | 6 months | ||
Amortization expense for intangible assets | $ 396,000 | $ 371,000 | |
Write-off of fully amortized intangible assets | 0 | 447,000 | |
Additional amortization expense on current in-place intangible assets for the remainder of 2021 | 396,000 | ||
Depreciation expense | 16,156,000 | 14,457,000 | |
Write-off of fully depreciated fixed assets | 1,506,000 | 0 | |
Casualty losses | 359,000 | ||
Bad debt expense | 433,000 | 337,000 | |
Deferred rent receivable from residents | 41,000 | ||
Advertising expenses | 544,000 | 608,000 | |
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 | |
Percentage of minimum taxable income distributable to stockholders | 90.00% | ||
Subsequent disqualification period if failed to qualify as REIT | 4 years | ||
Topic 842 | |||
Significant Accounting Policies [Line Items] | |||
Right-of-use assets | $ 2,553,000 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | ||
Lease liability | $ 2,903,000 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | ||
Total operating lease expense | $ 172,000 | ||
Natural Disasters and Other Insurable Events | |||
Significant Accounting Policies [Line Items] | |||
Rent revenue recognized | 23,000 | $ 3,000 | |
COVID-19 | |||
Significant Accounting Policies [Line Items] | |||
Bad debt expense | $ 47,000 | ||
Building and Building Improvements | |||
Significant Accounting Policies [Line Items] | |||
Depreciable Lives | 40 years | ||
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Percentage of rent deferment on monthly rent | 25.00% | ||
Deferred rent payment term | 1 month | ||
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 | ||
Percentage of rent deferment on monthly rent | 75.00% | ||
Deferred rent payment term | 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, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | ||
Assets | |||||
Cash and cash equivalents, Carrying Amount | $ 8,653 | $ 8,751 | $ 57,436 | ||
Restricted cash, Carrying Amount | 4,449 | 4,864 | |||
Derivative assets, Carrying Amount | 2,810 | ||||
Cash and cash equivalents, Estimated Fair Value | 8,653 | 8,751 | |||
Restricted cash, Estimated Fair Value | 4,449 | 4,864 | |||
Derivative assets, Estimated Fair Value | 2,810 | ||||
Liabilities | |||||
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount | 947,631 | 945,686 | |||
Derivative liabilities, carrying Amount | 19,540 | 29,842 | |||
Derivative liabilities, Estimated Fair Value | 19,540 | 29,842 | |||
Unsecured Credit Facility | |||||
Liabilities | |||||
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount | 192,782 | [1] | 183,110 | [2] | |
Indebtedness, net of unamortized discount and deferred financing costs, Estimated Fair Value | 194,302 | 184,802 | |||
Term Loan | |||||
Liabilities | |||||
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount | 298,846 | 298,759 | |||
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 | 456,003 | 463,817 | |||
Indebtedness, net of unamortized discount and deferred financing costs, Estimated Fair Value | $ 470,234 | $ 479,929 | |||
[1] | The unsecured credit facility total capacity is $350,000, of which $194,302 was outstanding as of March 31, 2021. | ||||
[2] | The unsecured credit facility total capacity was $350,000, of which $184,802 was outstanding as of December 31, 2020. |
Investments in Real Estate - Ad
Investments in Real Estate - Additional Information (Detail) | Mar. 31, 2021Property |
Real Estate Properties Base Purchase Price [Abstract] | |
Number of multifamily properties owned | 56 |
Number of units located with multifamily properties | 15,667 |
Investments in Real Estate - Su
Investments in Real Estate - Summary of Investments in Real Estate (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Real Estate Properties [Line Items] | ||
Land | $ 251,425 | $ 251,365 |
Building | 1,527,535 | 1,527,535 |
Furniture, fixtures and equipment | 143,111 | 137,870 |
Total investment in real estate | 1,922,071 | 1,916,770 |
Accumulated depreciation | (223,187) | (208,618) |
Investments in real estate, net | $ 1,698,884 | $ 1,708,152 |
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 |
Indebtedness - Summary Informat
Indebtedness - Summary Information Concerning Indebtedness (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2021 | Dec. 31, 2020 | Apr. 05, 2021 | Mar. 01, 2021 | |||
Debt Instrument [Line Items] | ||||||
Outstanding Principal | $ 951,475 | $ 949,894 | ||||
Unamortized Debt Issuance Costs | (3,844) | (4,208) | ||||
Carrying Amount | $ 947,631 | $ 945,686 | ||||
Weighted Average Rate | 2.60% | 2.70% | ||||
Weighted Average | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Maturity (in years) | 2 years 9 months 18 days | 3 years 1 month 6 days | ||||
Unsecured Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding Principal | $ 194,302 | [1] | $ 184,802 | [2] | ||
Unamortized Debt Issuance Costs | (1,520) | [1] | (1,692) | [2] | ||
Carrying Amount | $ 192,782 | [1] | $ 183,110 | [2] | ||
Type | Floating | [1] | Floating | [2] | ||
Weighted Average Rate | 1.60% | [1] | 1.60% | [2] | ||
Unsecured Credit Facility | Weighted Average | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Maturity (in years) | 2 years 1 month 6 days | [1] | 2 years 4 months 24 days | [2] | ||
Unsecured Term Loans | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding Principal | $ 300,000 | $ 300,000 | ||||
Unamortized Debt Issuance Costs | (1,154) | (1,241) | ||||
Carrying Amount | $ 298,846 | $ 298,759 | ||||
Type | Floating | Floating | ||||
Weighted Average Rate | 1.50% | 1.50% | ||||
Unsecured Term Loans | Weighted Average | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Maturity (in years) | 3 years 1 month 6 days | 3 years 3 months 18 days | ||||
Mortgages | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding Principal | $ 457,173 | $ 465,092 | ||||
Unamortized Debt Issuance Costs | (1,170) | (1,275) | ||||
Carrying Amount | $ 456,003 | $ 463,817 | ||||
Type | Fixed | Fixed | ||||
Weighted Average Rate | 3.80% | 3.90% | 4.20% | 5.70% | ||
Mortgages | Weighted Average | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Maturity (in years) | 3 years | 3 years 2 months 12 days | ||||
[1] | The unsecured credit facility total capacity is $350,000, of which $194,302 was outstanding as of March 31, 2021. | |||||
[2] | The unsecured credit facility total capacity was $350,000, of which $184,802 was outstanding as of December 31, 2020. |
Indebtedness - Summary Inform_2
Indebtedness - Summary Information Concerning Indebtedness (Parenthetical) (Detail) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | ||
Debt Instrument [Line Items] | ||||
Outstanding Principal | $ 951,475,000 | $ 949,894,000 | ||
Unsecured Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility borrowing capacity | 350,000,000 | 350,000,000 | ||
Outstanding Principal | $ 194,302,000 | [1] | $ 184,802,000 | [2] |
[1] | The unsecured credit facility total capacity is $350,000, of which $194,302 was outstanding as of March 31, 2021. | |||
[2] | The unsecured credit facility total capacity was $350,000, of which $184,802 was outstanding as of December 31, 2020. |
Indebtedness - Additional Infor
Indebtedness - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 05, 2021 | Mar. 01, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | ||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate | 2.60% | 2.70% | ||||
Mortgages | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate | 4.20% | 5.70% | 3.80% | 3.90% | ||
Unsecured Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Mortgage loan related to property disposition | $ 13,666 | $ 5,975 | ||||
Weighted average interest rate | 1.60% | [1] | 1.60% | [2] | ||
[1] | The unsecured credit facility total capacity is $350,000, of which $194,302 was outstanding as of March 31, 2021. | |||||
[2] | The unsecured credit facility total capacity was $350,000, of which $184,802 was outstanding as of December 31, 2020. |
Indebtedness - Maturity of Inde
Indebtedness - Maturity of Indebtedness (Detail) $ in Thousands | Mar. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
2021 | $ 42,489 |
2022 | 66,311 |
2023 | 301,358 |
2024 | 336,798 |
2025 | 161,741 |
Thereafter | 42,778 |
Mortgages | |
Debt Instrument [Line Items] | |
2021 | 42,489 |
2022 | 66,311 |
2023 | 107,056 |
2024 | 36,798 |
2025 | 161,741 |
Thereafter | 42,778 |
Unsecured Credit Facility | |
Debt Instrument [Line Items] | |
2023 | 194,302 |
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, 2021 | Dec. 31, 2020 |
Derivative Instruments Gain Loss [Line Items] | ||
Notional | $ 400,000,000 | $ 400,000,000 |
Fair Value of Assets | 2,810,000 | |
Fair Value of Liabilities | 19,540,000 | 29,842,000 |
Interest Rate Swap | ||
Derivative Instruments Gain Loss [Line Items] | ||
Notional | 150,000,000 | 150,000,000 |
Fair Value of Liabilities | 326,000 | 694,000 |
Interest Rate Collar | ||
Derivative Instruments Gain Loss [Line Items] | ||
Notional | 250,000,000 | 250,000,000 |
Fair Value of Liabilities | 10,570,000 | 13,331,000 |
Forward Interest Rate Swap | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair Value of Assets | 2,810,000 | |
Fair Value of Liabilities | $ 8,644,000 | $ 15,817,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Derivative Instruments Gain Loss [Line Items] | |
Realized gains on interest rate hedges reclassified to earnings | $ 1,458 |
Interest Rate Swap and Collars | Cash Flow Hedge | |
Derivative Instruments Gain Loss [Line Items] | |
Amount expect to be reclassified out of accumulated other comprehensive income (loss) into earnings in future | $ (8,294) |
Estimated time for reclassification out of accumulated other comprehensive income (loss) into earnings | 12 months |
Stockholders' Equity and Nonc_2
Stockholders' Equity and Noncontrolling Interests - Additional Information (Detail) - USD ($) | May 07, 2021 | Mar. 15, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Nov. 13, 2020 |
Class Of Stock [Line Items] | |||||
Dividend declared per share | $ 0.12 | $ 0.18 | |||
Dividends paid | $ 274,000 | ||||
At-the-market agreement to sell common shares, maximum offer price | $ 150,000,000 | ||||
Number of IROP unites exchanged | 0 | ||||
Subsequent Event | |||||
Class Of Stock [Line Items] | |||||
Number of IROP unites exchanged | 110,938 | ||||
Conversion of noncontrolling interest to common shares (in Shares) | 110,938 | ||||
Dividend Declared | |||||
Class Of Stock [Line Items] | |||||
Declaration date | Mar. 15, 2021 | ||||
Dividend declared per share | $ 0.12 | ||||
Payment date | Apr. 23, 2021 | ||||
Record date | Apr. 2, 2021 | ||||
Dividend Declared | Noncontrolling Interests | |||||
Class Of Stock [Line Items] | |||||
Declaration date | Mar. 15, 2021 | ||||
Dividend declared per share | $ 0.12 | ||||
Payment date | Apr. 23, 2021 | ||||
Record date | Apr. 2, 2021 |
Stockholders' Equity and Nonc_3
Stockholders' Equity and Noncontrolling Interests - Summary of ATM Program (Detail) - ATM Program | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Subsidiary Sale Of Stock [Line Items] | |
Number of Shares Sold | shares | 2,900 |
Current forward price | $ / shares | $ 14.20 |
Net proceeds | $ | $ 41,177 |
December 31, 2020 | |
Subsidiary Sale Of Stock [Line Items] | |
Number of Shares Sold | shares | 900 |
Current forward price | $ / shares | $ 13.53 |
Net proceeds | $ | $ 12,177 |
Expiration Date of Forward Contract | Dec. 13, 2021 |
March 31, 2021 | |
Subsidiary Sale Of Stock [Line Items] | |
Number of Shares Sold | shares | 2,000 |
Current forward price | $ / shares | $ 14.50 |
Net proceeds | $ | $ 29,000 |
Expiration Date of Forward Contract | Mar. 31, 2022 |
Equity Compensation Plans - Add
Equity Compensation Plans - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 18, 2021 | May 31, 2016 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 |
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 | ||||
Performance Share Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Awards vesting period | 3 years | ||||
Performance Share Units | Executive Officers | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares awarded | 254,493 | ||||
Restricted Stock and Performance Shares Units | Employee | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock compensation expense | $ 2,112 | $ 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% | ||||
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% | ||||
Long Term Incentive Plan | Performance Share Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Awards performance period | 3 years | ||||
Awards service period | 1 year | ||||
Long Term Incentive Plan | Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Awards vesting period | 2 years | ||||
Long Term Incentive Plan | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Awards vesting period | 4 years |
Equity Compensation Plans - Sum
Equity Compensation Plans - Summary of Restricted Common Share Awards and RSU of Incentive Plan (Detail) - Restricted Stock And RSUs | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Number of Shares | |
Number of Shares, beginning balance | shares | 406,849 |
Common Share awards, granted | shares | 171,059 |
Common Share awards, vested | shares | (165,632) |
Common Share awards, forfeited | shares | (9,614) |
Number of Shares, ending balance | shares | 402,662 |
Weighted Average Grant Date Fair Value Per Share | |
Weighted average fair value, Balance at beginning of period | $ / shares | $ 11.68 |
Weighted average fair value, granted | $ / shares | 14.01 |
Weighted average fair value, vested | $ / shares | 11.21 |
Weighted average fair value, forfeited | $ / shares | 12.33 |
Weighted average fair value, Balance at end of period | $ / shares | $ 12.84 |
Equity Compensation Plans - S_2
Equity Compensation Plans - Summary of Restricted Common Share Awards and RSU of Incentive Plan (Parenthetical) (Detail) - shares | Mar. 31, 2021 | Dec. 31, 2020 |
RSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares, outstanding | 135,366 | 67,381 |
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, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ 1,093 | $ (374) |
(Income) loss allocated to noncontrolling interest | (7) | 2 |
Net income (loss) allocable to common shares | $ 1,086 | $ (372) |
Weighted-average shares outstanding—Basic | 101,678,865 | 90,895,488 |
Weighted-average shares outstanding—Diluted | 102,763,106 | 90,895,488 |
Earnings per share—Basic | $ 0.01 | $ 0 |
Earnings per share—Diluted | $ 0.01 | $ 0 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings (loss) per share, amount | 3,574,515 | 9,009,167 |