Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-34603 | |
Entity Registrant Name | Terreno Realty Corporation | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 27-1262675 | |
Entity Address, Street | 10500 NE 8th Street | |
Entity Address, Suite | Suite 1910 | |
Entity Address, City | Bellevue | |
Entity Address, State | WA | |
Entity Address, Postal Zip Code | 98004 | |
City Area Code | 415 | |
Local Phone Number | 655-4580 | |
Title of each class | Common Stock, $0.01 par value per share | |
Trading Symbol(s) | TRNO | |
Name of each exchange on which registered | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 83,910,716 | |
Entity Central Index Key | 0001476150 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Investments in real estate | ||
Land | $ 1,938,868 | $ 1,850,860 |
Buildings and improvements | 1,509,858 | 1,372,473 |
Construction in progress | 271,414 | 51,896 |
Intangible assets | 140,799 | 123,545 |
Total investments in properties | 3,860,939 | 3,398,774 |
Accumulated depreciation and amortization | (354,978) | (323,631) |
Net investments in properties | 3,505,961 | 3,075,143 |
Cash and cash equivalents | 58,920 | 26,393 |
Restricted cash | 1,101 | 1,690 |
Other assets, net | 71,470 | 61,215 |
Total assets | 3,637,452 | 3,164,441 |
Liabilities | ||
Credit facility | 0 | 0 |
Term loans payable, net | 199,027 | 198,993 |
Senior unsecured notes, net | 572,121 | 571,825 |
Security deposits | 32,207 | 27,454 |
Intangible liabilities, net | 89,038 | 55,873 |
Dividends payable | 33,501 | 30,753 |
Accounts payable and other liabilities | 63,294 | 49,692 |
Total liabilities | 989,188 | 934,590 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity | ||
Common stock: $0.01 par value, 400,000,000 shares authorized, and 83,236,177 and 76,463,482 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively. | 833 | 765 |
Additional paid-in capital | 2,594,382 | 2,167,276 |
Common stock held in deferred compensation plan, 514,539 and 417,665 shares at June 30, 2023 and December 31, 2022, respectively. | (32,134) | (26,462) |
Retained earnings | 85,183 | 88,272 |
Total stockholders’ equity | 2,648,264 | 2,229,851 |
Total liabilities and equity | $ 3,637,452 | $ 3,164,441 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 83,236,177 | 76,463,482 |
Common Shares Held in Deferred Compensation Plan | ||
Statement of Financial Position [Abstract] | ||
Common stock held in deferred compensation plan (in shares) | 514,539 | 417,665 |
Common stock held in deferred compensation plan (in shares) | 514,539 | 417,665 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
REVENUES | ||||
Rental revenues and tenant expense reimbursements | $ 79,535 | $ 65,369 | $ 154,186 | $ 129,404 |
Total revenues | 79,535 | 65,369 | 154,186 | 129,404 |
COSTS AND EXPENSES | ||||
Property operating expenses | 18,586 | 15,804 | 36,967 | 32,680 |
Depreciation and amortization | 18,232 | 15,288 | 36,391 | 30,270 |
General and administrative | 9,766 | 7,333 | 19,086 | 14,860 |
Acquisition costs and other | 27 | 1,027 | 75 | 1,055 |
Total costs and expenses | 46,611 | 39,452 | 92,519 | 78,865 |
OTHER INCOME (EXPENSE) | ||||
Interest and other income | 973 | 115 | 2,936 | 236 |
Interest expense, including amortization | (5,900) | (5,047) | (13,275) | (10,128) |
Gain on sales of real estate investments | 12,257 | 76,048 | 12,257 | 76,048 |
Total other income (expense) | 7,330 | 71,116 | 1,918 | 66,156 |
Net income | 40,254 | 97,033 | 63,585 | 116,695 |
Allocation to participating securities | (180) | (382) | (286) | (467) |
Net income available to common stockholders | 40,074 | 96,651 | 63,299 | 116,228 |
Net income available to common stockholders | $ 40,074 | $ 96,651 | $ 63,299 | $ 116,228 |
EARNINGS PER COMMON SHARE - BASIC AND DILUTED: | ||||
Net income available to common stockholders - basic (in dollars per share) | $ 0.48 | $ 1.28 | $ 0.78 | $ 1.55 |
Net income available to common stockholders - diluted (in dollars per share) | $ 0.48 | $ 1.28 | $ 0.77 | $ 1.54 |
BASIC WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (in shares) | 83,116,241 | 75,250,655 | 81,514,960 | 75,225,233 |
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (in shares) | 83,116,241 | 75,340,872 | 81,761,199 | 75,310,343 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid- in Capital | Common Shares Held in Deferred Compensation Plan | Deferred Compensation Plan | Retained (Deficit) Earnings |
Beginning balance at Dec. 31, 2021 | $ 2,057,963 | $ 752 | $ 2,069,604 | $ (15,197) | $ 2,804 | |
Beginning balance (in shares) at Dec. 31, 2021 | 75,068,575 | |||||
Beginning balance (in shares) at Dec. 31, 2021 | 275,727 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 19,662 | 19,662 | ||||
Issuance of common stock, net of issuance costs (in shares) | 147,285 | |||||
Forfeiture of common stock related to employee awards (in shares) | (1,206) | |||||
Common shares acquired related to employee awards | (493) | (493) | ||||
Common shares acquired related to employee awards (in shares) | (6,348) | |||||
Issuance of restricted stock (in shares) | 41,255 | |||||
Stock-based compensation | 2,829 | 2,829 | ||||
Common stock dividends | (25,680) | (25,680) | ||||
Deposits to deferred compensation plan | 0 | 11,535 | (11,535) | |||
Deposits to deferred compensation plan (in shares) | (147,285) | 147,285 | ||||
Ending balance at Mar. 31, 2022 | 2,054,281 | $ 752 | 2,083,475 | (26,732) | (3,214) | |
Ending Balance (in shares) at Mar. 31, 2022 | 75,102,276 | |||||
Ending balance (in shares) at Mar. 31, 2022 | 423,012 | |||||
Beginning balance at Dec. 31, 2021 | 2,057,963 | $ 752 | 2,069,604 | (15,197) | 2,804 | |
Beginning balance (in shares) at Dec. 31, 2021 | 75,068,575 | |||||
Beginning balance (in shares) at Dec. 31, 2021 | 275,727 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | $ 116,695 | |||||
Issuance of common stock, net of issuance costs (in shares) | 27,087 | |||||
Deposits to deferred compensation plan (in shares) | 150,867 | |||||
Ending balance at Jun. 30, 2022 | $ 2,129,585 | $ 752 | 2,087,682 | (26,982) | 68,133 | |
Ending Balance (in shares) at Jun. 30, 2022 | 75,120,374 | |||||
Ending balance (in shares) at Jun. 30, 2022 | 426,594 | |||||
Beginning balance at Mar. 31, 2022 | 2,054,281 | $ 752 | 2,083,475 | (26,732) | (3,214) | |
Beginning balance (in shares) at Mar. 31, 2022 | 75,102,276 | |||||
Beginning balance (in shares) at Mar. 31, 2022 | 423,012 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 97,033 | 97,033 | ||||
Issuance of common stock, net of issuance costs | $ 1,947 | 1,947 | ||||
Issuance of common stock, net of issuance costs (in shares) | 27,087 | 37,833 | ||||
Forfeiture of common stock related to employee awards (in shares) | (28,185) | |||||
Issuance of restricted stock (in shares) | 12,032 | |||||
Stock-based compensation | $ 2,010 | 2,010 | ||||
Common stock dividends | (25,686) | (25,686) | ||||
Deposits to deferred compensation plan | 250 | (250) | ||||
Deposits to deferred compensation plan (in shares) | (3,582) | 3,582 | ||||
Other comprehensive income | 0 | |||||
Ending balance at Jun. 30, 2022 | 2,129,585 | $ 752 | 2,087,682 | (26,982) | 68,133 | |
Ending Balance (in shares) at Jun. 30, 2022 | 75,120,374 | |||||
Ending balance (in shares) at Jun. 30, 2022 | 426,594 | |||||
Beginning balance at Dec. 31, 2022 | 2,229,851 | $ 765 | 2,167,276 | (26,462) | 88,272 | |
Beginning balance (in shares) at Dec. 31, 2022 | 76,463,482 | |||||
Beginning balance (in shares) at Dec. 31, 2022 | 417,665 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 23,331 | 23,331 | ||||
Issuance of common stock, net of issuance costs | 377,488 | $ 62 | 377,426 | |||
Issuance of common stock, net of issuance costs (in shares) | 6,197,825 | |||||
Forfeiture of common stock related to employee awards (in shares) | (6,434) | |||||
Common shares acquired related to employee awards | (627) | (627) | ||||
Common shares acquired related to employee awards (in shares) | (9,745) | |||||
Issuance of restricted stock (in shares) | 59,504 | |||||
Stock-based compensation | 3,038 | 3,038 | ||||
Common stock dividends | (33,209) | (33,209) | ||||
Deposits to deferred compensation plan | 0 | 5,547 | (5,547) | |||
Deposits to deferred compensation plan (in shares) | (94,794) | 94,794 | ||||
Ending balance at Mar. 31, 2023 | 2,599,872 | $ 827 | 2,552,660 | (32,009) | 78,394 | |
Ending Balance (in shares) at Mar. 31, 2023 | 82,609,838 | |||||
Ending balance (in shares) at Mar. 31, 2023 | 512,459 | |||||
Beginning balance at Dec. 31, 2022 | 2,229,851 | $ 765 | 2,167,276 | (26,462) | 88,272 | |
Beginning balance (in shares) at Dec. 31, 2022 | 76,463,482 | |||||
Beginning balance (in shares) at Dec. 31, 2022 | 417,665 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 63,585 | |||||
Deposits to deferred compensation plan (in shares) | 96,874 | |||||
Ending balance at Jun. 30, 2023 | 2,648,264 | $ 833 | 2,594,382 | (32,134) | 85,183 | |
Ending Balance (in shares) at Jun. 30, 2023 | 83,236,177 | |||||
Ending balance (in shares) at Jun. 30, 2023 | 514,539 | |||||
Beginning balance at Mar. 31, 2023 | 2,599,872 | $ 827 | 2,552,660 | (32,009) | 78,394 | |
Beginning balance (in shares) at Mar. 31, 2023 | 82,609,838 | |||||
Beginning balance (in shares) at Mar. 31, 2023 | 512,459 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 40,254 | 40,254 | ||||
Issuance of common stock, net of issuance costs | 37,903 | $ 6 | 37,897 | |||
Issuance of common stock, net of issuance costs (in shares) | 629,586 | |||||
Common shares acquired related to employee awards | (105) | (105) | ||||
Common shares acquired related to employee awards (in shares) | (1,167) | |||||
Stock-based compensation | 3,805 | 3,805 | ||||
Common stock dividends | (33,465) | (33,465) | ||||
Deposits to deferred compensation plan | 125 | (125) | ||||
Deposits to deferred compensation plan (in shares) | (2,080) | 2,080 | ||||
Ending balance at Jun. 30, 2023 | $ 2,648,264 | $ 833 | $ 2,594,382 | $ (32,134) | $ 85,183 | |
Ending Balance (in shares) at Jun. 30, 2023 | 83,236,177 | |||||
Ending balance (in shares) at Jun. 30, 2023 | 514,539 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Issuance costs | $ 822 | $ 943 | $ 112 | $ 0 |
Dividends per share, common stock (in dollars per share) | $ 0.40 | $ 0.40 | $ 0.34 | $ 0.34 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 63,585 | $ 116,695 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Straight-line rents | (4,215) | (4,437) |
Amortization of lease intangibles | (7,186) | (6,609) |
Depreciation and amortization | 36,391 | 30,270 |
Gain on sales of real estate investments | (12,257) | (76,048) |
Deferred financing cost amortization | 770 | 611 |
Stock-based compensation | 6,843 | 4,839 |
Changes in assets and liabilities | ||
Other assets | (6,038) | (2,658) |
Accounts payable and other liabilities | 9,470 | 564 |
Net cash provided by operating activities | 87,363 | 63,227 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Cash paid for property acquisitions | (378,093) | (276,975) |
Proceeds from sales of real estate investments, net | 24,585 | 106,835 |
Additions to construction in progress | (26,093) | (18,571) |
Additions to buildings, improvements and leasing costs | (26,890) | (30,346) |
Net cash used in investing activities | (406,491) | (219,057) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Issuance of common stock | 417,156 | 2,059 |
Issuance costs on issuance of common stock | (1,352) | (49) |
Repurchase of common stock related to employee awards | (732) | (493) |
Borrowings on credit facility | 49,000 | 12,000 |
Payments on credit facility | (49,000) | 0 |
Payment of deferred financing costs | (80) | (857) |
Dividends paid to common stockholders | (63,926) | (51,298) |
Net cash provided by (used in) financing activities | 351,066 | (38,638) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 31,938 | (194,468) |
Cash and cash equivalents and restricted cash at beginning of period | 28,083 | 204,801 |
Cash and cash equivalents and restricted cash at end of period | 60,021 | 10,333 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for interest, net of capitalized interest | 15,488 | 10,520 |
Supplemental disclosures of non-cash transactions | ||
Accounts payable related to capital improvements | 25,078 | 29,039 |
Non-cash issuance of common stock to the deferred compensation plan | (5,672) | (11,785) |
Reconciliation of cash paid for property acquisitions | ||
Acquisition of properties | 420,493 | 291,873 |
Assumption of other assets and liabilities | (42,400) | (14,898) |
Net cash paid for property acquisitions | $ 378,093 | $ 276,975 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Terreno Realty Corporation (“Terreno”, and together with its subsidiaries, the “Company”) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these condensed notes to the consolidated financial statements are unaudited. As of June 30, 2023, the Company owned 257 buildings aggregating approximately 15.8 million square feet, 46 improved land parcels consisting of approximately 165.8 acres, seven properties under development or redevelopment and approximately 62.7 acres of land entitled for future development. The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (“REIT”) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 2010. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation. The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for annual financial statements. In management’s opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The interim consolidated financial statements include all of the Company’s accounts and its subsidiaries and all intercompany balances and transactions have been eliminated in consolidation. The financial statements should be read in conjunction with the financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and the notes thereto, which was filed with the Securities and Exchange Commission on February 8, 2023. Use of Estimates. The preparation of the interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. Capitalization of Costs. The Company capitalizes costs directly related to the redevelopment, renovation and expansion of its investment in real estate. Costs associated with such projects are capitalized as incurred. If the project is abandoned, these costs are expensed during the period in which the redevelopment, renovation or expansion project is abandoned. Costs considered for capitalization include, but are not limited to, construction costs, interest, real estate taxes and insurance, if appropriate. These costs are capitalized only during the period in which activities necessary to ready an asset for its intended use are in progress. In the event that the activities to ready the asset for its intended use are suspended, the capitalization period will cease until such activities are resumed. Costs incurred for maintaining and repairing properties, which do not extend their useful lives, are expensed as incurred. Interest is capitalized based on actual capital expenditures from the period when redevelopment, renovation or expansion commences until the asset is ready for its intended use, at the weighted average borrowing rate during the period. Investments in Real Estate. Investments in real estate, including tenant improvements, leasehold improvements and leasing costs, are stated at cost, less accumulated depreciation, unless circumstances indicate that the cost cannot be recovered, in which case, an adjustment to the carrying value of the property is made to reduce it to its estimated fair value. The Company also reviews the impact of above and below-market leases, in-place leases and lease origination costs for acquisitions and records an intangible asset or liability accordingly. Impairment. Carrying values for financial reporting purposes are reviewed for impairment on a property-by-property basis whenever events or changes in circumstances indicate that the carrying value of a property may not be fully recoverable. Examples of such events or changes in circumstances may include classifying an asset to be held for sale, changing the intended hold period or when an asset remains vacant significantly longer than expected. The intended use of an asset either held for sale or held for use can significantly impact how impairment is measured. If an asset is intended to be held for the long-term, the recoverability is based on the undiscounted future cash flows. If the asset carrying value is not supported on an undiscounted future cash flow basis, then the asset carrying value is measured against the lower of cost or the present value of expected cash flows over the expected hold period. An impairment charge to earnings is recognized for the excess of the asset’s carrying value over the lower of cost or the present values of expected cash flows over the expected hold period. If an asset is intended to be sold, impairment is determined using the estimated fair value less costs to sell. The estimation of expected future net cash flows is inherently uncertain and relies on assumptions, among other things, regarding current and future economic and market conditions and the availability of capital. The Company determines the estimated fair values based on its assumptions regarding rental rates, lease-up and holding periods, as well as sales prices. When available, current market information is used to determine capitalization and rental growth rates. If available, current comparative sales values may also be used to establish fair value. When market information is not readily available, the inputs are based on the Company’s understanding of market conditions and the experience of the Company’s management team. Actual results could differ significantly from the Company’s estimates. The discount rates used in the fair value estimates represent a rate commensurate with the indicated holding period with a premium layered on for risk. There were no impairment charges recorded to the carrying values of the Company’s properties during the three or six months ended June 30, 2023 or 2022. Property Acquisitions. In accordance with Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the integrated set of assets and activities is not considered a business. To be a business, the set of acquired activities and assets must include inputs and one or more substantive processes that together contribute to the ability to create outputs. The Company has determined that its real estate property acquisitions will generally be accounted for as asset acquisitions under the clarified definition. Upon acquisition of a property the Company estimates the fair value of acquired tangible assets (consisting generally of land, buildings and improvements) and intangible assets and liabilities (consisting generally of the above and below-market leases and the origination value of all in-place leases). The Company determines fair values using Level 3 inputs such as replacement cost, estimated cash flow projections and other valuation techniques and applying appropriate discount and capitalization rates based on available market information. Mortgage loans assumed in connection with acquisitions are recorded at their fair value using current market interest rates for similar debt at the date of acquisition. Acquisition-related costs associated with asset acquisitions are capitalized to individual tangible and intangible assets and liabilities assumed on a relative fair value basis and acquisition-related costs associated with business combinations are expensed as incurred. The fair value of the tangible assets is determined by valuing the property as if it were vacant. Land values are derived from current comparative sales values, when available, or management’s estimates of the fair value based on market conditions and the experience of the Company’s management team. Building and improvement values are calculated as replacement cost less depreciation, or management’s estimates of the fair value of these assets using discounted cash flow analyses or similar methods. The fair value of the above and below-market leases is based on the present value of the difference between the contractual amounts to be received pursuant to the acquired leases (using a discount rate that reflects the risks associated with the acquired leases) and the Company’s estimate of the market lease rates measured over a period equal to the remaining term of the leases plus the term of any below-market fixed rate renewal options. The above and below-market lease values are amortized to rental revenues over the remaining initial term plus the term of any below-market fixed rate renewal options that are considered bargain renewal options of the respective leases. The total net impact to rental revenues due to the amortization of above and below-market leases was a net increase of approximately $3.6 million and $3.5 million for the three months ended June 30, 2023 and 2022, respectively, and approximately $7.2 million and $6.6 million for the six months ended June 30, 2023 and 2022, respectively. The origination value of in-place leases is based on costs to execute similar leases, including commissions and other related costs. The origination value of in-place leases also includes real estate taxes, insurance and an estimate of lost rental revenue at market rates during the estimated time required to lease up the property from vacant to the occupancy level at the date of acquisition. The remaining weighted average lease term related to these intangible assets and liabilities as of June 30, 2023 was 6.9 years. As of June 30, 2023 and December 31, 2022, the Company’s intangible assets and liabilities, including properties held for sale (if any), consisted of the following (dollars in thousands): June 30, 2023 December 31, 2022 Gross Accumulated Net Gross Accumulated Net In-place leases $ 137,213 $ (89,466) $ 47,747 $ 119,959 $ (83,222) $ 36,737 Above-market leases 3,586 (3,565) 21 3,586 (3,558) 28 Below-market leases (135,632) 46,594 (89,038) (95,638) 39,765 (55,873) Total $ 5,167 $ (46,437) $ (41,270) $ 27,907 $ (47,015) $ (19,108) Depreciation and Useful Lives of Real Estate and Intangible Assets. Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the related assets or liabilities. The following table reflects the standard depreciable lives typically used to compute depreciation and amortization. However, such depreciable lives may be different based on the estimated useful life of such assets or liabilities. Description Standard Depreciable Life Land Not depreciated Building 40 years Building Improvements 5-40 years Tenant Improvements Shorter of lease term or useful life Leasing Costs Lease term In-place Leases Lease term Above/Below-Market Leases Lease term Held for Sale Assets. The Company considers a property to be held for sale when it meets the criteria established under Accounting Standards Codification (“ASC”) 360, Property, Plant and Equipment (See “Note 5 - Held for Sale/Disposed Assets”). Properties held for sale are reported at the lower of the carrying amount or fair value less estimated costs to sell and are not depreciated while they are held for sale. Cash and Cash Equivalents. Cash and cash equivalents consists of cash held in a major banking institution and other highly liquid short-term investments with original maturities of three months or less. Cash equivalents are generally invested in U.S. government securities, government agency securities or money market accounts. Restricted Cash. Restricted cash includes cash held in escrow in connection with property acquisitions and reserves for certain capital improvements, leasing, interest and real estate tax and insurance payments as required by certain mortgage loan obligations. The following summarizes the reconciliation of cash and cash equivalents and restricted cash as presented in the accompanying consolidated statements of cash flows (dollars in thousands): For the Six Months Ended June 30, 2023 2022 Beginning Cash and cash equivalents at beginning of period $ 26,393 $ 204,404 Restricted cash 1,690 397 Cash and cash equivalents and restricted cash 28,083 204,801 Ending Cash and cash equivalents at end of period 58,920 7,237 Restricted cash 1,101 3,096 Cash and cash equivalents and restricted cash 60,021 10,333 Net increase (decrease) in cash and cash equivalents and restricted cash $ 31,938 $ (194,468) Revenue Recognition. The Company records rental revenue from operating leases on a straight-line basis over the term of the leases and maintains an allowance for estimated losses that may result from the inability of its tenants to make required payments. If tenants fail to make contractual lease payments that are greater than the Company’s allowance for doubtful accounts, security deposits and letters of credit, then the Company may have to recognize additional doubtful account charges in future periods. The Company monitors the liquidity and creditworthiness of its tenants on an on-going basis by reviewing their financial condition periodically as appropriate. Each period the Company reviews its outstanding accounts receivable, including straight-line rents, for doubtful accounts and provides allowances as needed. The Company also records lease termination fees when a tenant has executed a definitive termination agreement with the Company and the payment of the termination fee is not subject to any conditions that must be met or waived before the fee is due to the Company. If a tenant remains in the leased space following the execution of a definitive termination agreement, the applicable termination will be deferred and recognized over the term of such tenant’s occupancy. Tenant expense reimbursement income includes payments and amounts due from tenants pursuant to their leases for real estate taxes, insurance and other recoverable property operating expenses and is recognized as revenues during the same period the related expenses are incurred. As of June 30, 2023 and December 31, 2022, approximately $50.9 million and $48.0 million, respectively, of straight-line rent and accounts receivable, net of allowances of approximately $0.2 million and $0.6 million as of June 30, 2023 and December 31, 2022, respectively, were included as a component of other assets in the accompanying consolidated balance sheets. Deferred Financing Costs. Costs incurred in connection with financings are capitalized and amortized to interest expense using the effective interest method over the term of the related loan. Deferred financing costs associated with the Company’s revolving credit facility are classified as an asset, as a component of other assets in the accompanying consolidated balance sheets, and deferred financing costs associated with debt liabilities are reported as a direct deduction from the carrying amount of the debt liability in the accompanying consolidated balance sheets. Deferred financing costs related to the revolving credit facility and debt liabilities are carried at cost, net of accumulated amortization in the aggregate of approximately $12.7 million and $11.9 million as of June 30, 2023 and December 31, 2022, respectively. Income Taxes. The Company elected to be taxed as a REIT under the Code and operates as such beginning with its taxable year ended December 31, 2010. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income to its stockholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, the Company generally will not be subject to federal income tax to the extent it distributes qualifying dividends to its stockholders. If it fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the IRS grants it relief under certain statutory provisions. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. However, the Company believes it is organized and operates in such a manner as to qualify for treatment as a REIT. ASC 740-10, Income Taxes (“ASC 740-10”) , provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. ASC 740-10 requires the evaluation of tax positions taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold are recorded as a tax expense in the current year. As of June 30, 2023 and December 31, 2022, the Company did not have any unrecognized tax benefits and does not believe that there will be any material changes in unrecognized tax positions over the next 12 months. The Company’s tax returns are subject to examination by federal, state and local tax jurisdictions, which as of June 30, 2023, include years 2019 to 2022 for federal purposes. Stock-Based Compensation and Other Long-Term Incentive Compensation. The Company follows the provisions of ASC 718, Compensation-Stock Compensation, to account for its stock-based compensation plan, which requires that the compensation cost relating to stock-based payment transactions be recognized in the financial statements and that the cost be measured on the fair value of the equity or liability instruments issued. The Company’s 2019 Equity Incentive Plan (the “2019 Plan”) provides for the grant of restricted stock awards, performance share awards, unrestricted shares or any combination of the foregoing. Stock-based compensation is recognized as a general and administrative expense in the accompanying consolidated statements of operations and measured at the fair value of the award on the date of grant. The Company estimates the forfeiture rate based on historical experience as well as expected behavior. The amount of the expense may be subject to adjustment in future periods depending on the specific characteristics of the stock-based award. In addition, the Company has awarded long-term incentive target awards (the “Performance Share awards”) under its Amended and Restated Long-Term Incentive Plan (as amended and restated, the “Amended LTIP”), which the Company amended and restated on January 8, 2019, to its executives that may be payable in shares of the Company’s common stock after the conclusion of each pre-established performance measurement period, which is generally three years. The amount that may be earned is variable depending on the relative total shareholder return of the Company’s common stock as compared to the total shareholder return of the MSCI U.S. REIT Index (RMS) and the FTSE Nareit Equity Industrial Index over the pre-established performance measurement period. Under the Amended LTIP, each participant’s Performance Share award granted will be expressed as a number of shares of common stock and settled in shares of common stock. The grant date fair value of the Performance Share awards will be determined using a Monte Carlo simulation model on the date of grant and recognized on a straight-line basis over the performance period. Fair Value of Financial Instruments . ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) (See “Note 8 - Fair Value Measurements”), defines fair value as 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. ASC 820 also provides guidance for using fair value to measure financial assets and liabilities. ASC 820 requires disclosure of the level within the fair value hierarchy in which the fair value measurements fall, including measurements using quoted prices in active markets for identical assets or liabilities (Level 1), quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active (Level 2), and significant valuation assumptions that are not readily observable in the market (Level 3). Segment Disclosure. ASC 280, Segment Reporting , establishes standards for reporting financial and descriptive information about an enterprise’s reportable segments. The Company has determined that it has one reportable segment, with activities related to investing in real estate. The Company’s investments in real estate are geographically diversified and the chief operating decision makers evaluate operating performance on an individual asset level. As each of the Company’s assets has similar economic characteristics, the assets have been aggregated into one reportable segment. |
Concentration of Credit Risk
Concentration of Credit Risk | 6 Months Ended |
Jun. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents. The Company may maintain deposits in federally insured financial institutions in excess of federally insured limits. However, the Company’s management believes the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. As of June 30, 2023, the Company owned 43 buildings aggregating approximately 2.6 million square feet and 13 improved land parcels consisting of approximately 68.0 acres located in Northern New Jersey/New York City, which accounted for a combined percentage of approximately 23.9% of its annualized base rent. Such annualized base rent is based on contractual monthly base rent per the leases, for all buildings and improved land parcels, excluding any partial or full rent abatements as of June 30, 2023, multiplied by 12. Other real estate companies compete with the Company in its real estate markets. This results in competition for tenants to occupy space. The existence of competing properties could have a material impact on the Company’s ability to lease space and on the level of rent that can be achieved. The Company had no tenant that accounted for greater than 10% of the Company's annualized base rent as of June 30, 2023. |
Investments in Real Estate
Investments in Real Estate | 6 Months Ended |
Jun. 30, 2023 | |
Real Estate [Abstract] | |
Investments in Real Estate | Investments in Real Estate During the three months ended June 30, 2023, the Company acquired one industrial property with a total initial investment, including acquisition costs, of approximately $13.8 million, of which $7.8 million was recorded to land, $4.9 million to buildings and improvements, and $1.1 million to intangible assets. Additionally, the Company assumed $0.3 million in liabilities. During the six months ended June 30, 2023, the Company acquired four industrial properties with a total initial investment, including acquisition costs, of approximately $420.5 million, of which $253.7 million was recorded to land, $147.9 million to buildings and improvements, and $18.9 million to intangible assets. Additionally, the Company assumed $43.0 million in liabilities. The Company recorded revenues and net income for the three months ended June 30, 2023 of approximately $3.9 million and $1.4 million, respectively, and recorded revenues and net income for the six months ended June 30, 2023 of approximately $4.2 million and $1.2 million, respectively, related to the 2023 acquisitions. During the three months ended June 30, 2022, the Company acquired ten industrial properties with a total initial investment, including acquisition costs, of approximately $221.6 million, of which $169.5 million was recorded to land, $43.7 million to buildings and improvements, and $8.4 million to intangible assets. Additionally, the Company assumed $12.8 million in liabilities. During the six months ended June 30, 2022, the Company acquired 12 industrial properties with a total initial investment, including acquisition costs, of approximately $291.9 million, of which $199.5 million was recorded to land, $82.8 million to buildings and improvements, and $9.6 million to intangible assets. Additionally, the Company assumed $15.0 million in liabilities. The Company recorded revenues and net income for the three months ended June 30, 2022 of approximately $1.7 million and $0.7 million, respectively, and recorded revenues and net income for the six months ended June 30, 2022 of approximately $1.7 million and $0.7 million, respectively, related to the 2022 acquisitions. The above assets and liabilities were recorded at fair value, which uses Level 3 inputs. The properties were acquired from unrelated third parties using existing cash on hand, proceeds from property sales and the issuance of common stock and borrowings on the revolving credit facility. As of June 30, 2023, the Company had seven properties under development or redevelopment that, upon completion, will consist of six buildings aggregating approximately 1.1 million square feet and one approximately 2.8 acre improved land parcel. Additionally, the Company owned approximately 62.7 acres of land entitled for future development that, upon completion, will consist of six buildings aggregating approximately 1.1 million square feet. The following table summarizes certain information with respect to the properties under development or redevelopment and the land entitled for future development as of June 30, 2023: Property Name Location Total Expected Investment (in thousands) 1 Estimated Post-Development Square Feet Estimated Post-Development Acreage Properties under development or redevelopment: Countyline Phase IV Countyline Building 38 2 Hialeah, FL $ 88,800 506,215 — Countyline Building 39 2 Hialeah, FL 42,632 178,201 — Countyline Building 40 2 Hialeah, FL 41,968 186,107 — Countyline Building 41 2 Hialeah, FL 41,400 190,907 — 147th Street Hawthorne, CA 18,060 34,045 — Maple III Rancho Dominguez, CA 26,980 — 2.8 Paterson Plank III Carlstadt, NJ 35,583 47,316 — Total $ 295,423 1,142,791 2.8 Land entitled for future development: Countyline Phase IV Countyline Phase IV Land 2 Hialeah, FL 277,900 1,135,036 — Total $ 277,900 1,135,036 — 1 Excludes below-market lease adjustments recorded at acquisition. Total expected investment for the properties includes the initial purchase price, buyer’s due diligence and closing costs, estimated near-term redevelopment expenditures, capitalized interest and leasing costs necessary to achieve stabilization. 2 Collectively, “Countyline Phase IV”, a 121-acre project entitled for 2.2 million square feet of industrial distribution buildings located in Miami’s Countyline Corporate Park (“Countyline”), immediately adjacent to the Company’s seven buildings within Countyline. Countyline Phase IV, a landfill redevelopment adjacent to Florida’s Turnpike and the southern terminus of I-75, is expected to contain ten LEED-certified industrial distribution buildings at completion. During the six months ended June 30, 2023, the Company completed redevelopment of one improved land parcel consisting of approximately 6.3 acres. The following table summarizes certain information with respect to the completed redevelopment property as of June 30, 2023: Property Name Location Total Investment (in thousands) 1 Post-Development Square Feet Post-Development Acreage Completion Quarter Berryessa San Jose, CA $ 26,296 — 6.3 Q2 2023 1 Total investment for the property includes the initial purchase price, buyer’s due diligence and closing costs, redevelopment expenditures, capitalized interest and leasing costs necessary to achieve stabilization. |
Held for Sale_Disposed Assets
Held for Sale/Disposed Assets | 6 Months Ended |
Jun. 30, 2023 | |
Held For Sale/Disposed Assets [Abstract] | |
Held for Sale/Disposed Assets | Held for Sale/Disposed Assets The Company considers a property to be held for sale when it meets the criteria established under ASC 360, Property, Plant, and Equipment . Properties held for sale are reported at the lower of the carrying amount or fair value less estimated costs to sell and are not depreciated while they are held for sale. As of June 30, 2023, the Company did not have any properties held for sale. During the six months ended June 30, 2023, the Company sold one property located in the Northern New Jersey/New York City market for a sales price of approximately $25.5 million, resulting in a gain of approximately $12.3 million. During the six months ended June 30, 2022, the Company sold one property (consisting of 18 buildings) located in the Northern New Jersey/New York City market for a sales price of approximately $110.4 million, resulting in a gain of approximately $76.0 million. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of both June 30, 2023 and December 31, 2022, the Company had $775.0 million of unsecured debt and no secured debt. The following table summarizes the components of the Company’s indebtedness as of June 30, 2023 and December 31, 2022 (dollars in thousands): June 30, 2023 December 31, 2022 Margin Above SOFR Interest Rate 1 Contractual Maturity Date Unsecured Debt: Credit Facility $ — $ — 1.1% 2 n/a 8/20/2025 5-Year Term Loan 100,000 100,000 1.3% 2 6.3 % 1/15/2027 5-Year Term Loan 100,000 100,000 1.3% 2 6.4 % 1/15/2028 $100M 7-Year Unsecured 3 100,000 100,000 n/a 3.8 % 7/14/2024 $50M 10-Year Unsecured 3 50,000 50,000 n/a 4.0 % 7/7/2026 $50M 12-Year Unsecured 3 50,000 50,000 n/a 4.7 % 10/31/2027 $100M 7-Year Unsecured 3 100,000 100,000 n/a 2.4 % 7/15/2028 $100M 10-Year Unsecured 3 100,000 100,000 n/a 3.1 % 12/3/2029 $125M 9-Year Unsecured 3 125,000 125,000 n/a 2.4 % 8/17/2030 $50M 10-Year Unsecured 3 50,000 50,000 n/a 2.8 % 7/15/2031 Total Unsecured Debt 775,000 775,000 Less: Unamortized debt issuance costs (3,852) (4,182) Total $ 771,148 $ 770,818 1 Reflects the contractual interest rate under the terms of each loan as of June 30, 2023. Excludes the effects of unamortized debt issuance costs. 2 The interest rates on these loans are comprised of the Secured Overnight Financing Rate (“SOFR”) plus a SOFR margin. The SOFR margins will range from 1.10% to 1.55% (1.10% as of June 30, 2023) for the revolving credit facility and 1.25% to 1.75% (1.25% as of June 30, 2023) for the term loans, depending on the ratio of the Company’s outstanding consolidated indebtedness to the value of the Company’s consolidated gross asset value and includes a 10 basis points SOFR credit adjustment. 3 Collectively, the “Senior Unsecured Notes”. The Company’s Sixth Amended and Restated Senior Credit Agreement (as amended, the “Amended Facility”) consists of a $400.0 million revolving credit facility that matures in August 2025, a $100.0 million term loan that matures in January 2027 and a $100.0 million term loan that matures in January 2028. As of both June 30, 2023 and December 31, 2022, there were no borrowings outstanding on the revolving credit facility and $200.0 million of borrowings outstanding on the term loans. The aggregate amount of the Amended Facility may be increased by up to an additional $500.0 million to a maximum amount not to exceed $1.1 billion, subject to the approval of the administrative agent and the identification of lenders willing to make available additional amounts. Outstanding borrowings under the Amended Facility are limited to the lesser of (i) the sum of the $400.0 million revolving credit facility, the $100.0 million term loan maturing in January 2027 and the $100.0 million term loan maturing in January 2028, or (ii) 60.0% of the value of the unencumbered properties. Interest on the Amended Facility, including the term loans, is generally to be paid based upon, at the Company’s option, either (i) SOFR plus the applicable SOFR margin or (ii) the applicable base rate, which is the greatest of the administrative agent’s prime rate, 0.50% above the federal funds effective rate, thirty-day SOFR plus the applicable SOFR margin for SOFR rate loans under the Amended Facility plus 1.25%, or 1.25% per annum. The applicable SOFR margin will range from 1.10% to 1.55% (1.10% as of June 30, 2023) for the revolving credit facility and 1.25% to 1.75% (1.25% as of June 30, 2023) for the term loans, depending on the ratio of the Company’s outstanding consolidated indebtedness to the value of the Company’s consolidated gross asset value and includes a 10 basis points SOFR credit adjustment. The Amended Facility requires quarterly payments of an annual facility fee in an amount ranging from 0.15% to 0.30%, depending on the ratio of the Company’s outstanding consolidated indebtedness to the value of the Company’s consolidated gross asset value. The Amended Facility and the Senior Unsecured Notes are guaranteed by the Company and by substantially all of the current and to-be-formed subsidiaries of the Company that own an unencumbered property. The Amended Facility and the Senior Unsecured Notes are not secured by the Company’s properties or by interests in the subsidiaries that hold such properties. The Amended Facility and the Senior Unsecured Notes include a series of financial and other covenants with which the Company must comply. The Company was in compliance with the covenants under the Amended Facility and the Senior Unsecured Notes as of June 30, 2023 and December 31, 2022. The scheduled principal payments of the Company’s debt as of June 30, 2023 were as follows (dollars in thousands): Credit Term Loan Senior Total Debt 2023 (6 months) $ — $ — $ — $ — 2024 — — 100,000 100,000 2025 — — — — 2026 — — 50,000 50,000 2027 — 100,000 50,000 150,000 Thereafter — 100,000 375,000 475,000 Total debt — 200,000 575,000 775,000 Deferred financing costs, net — (973) (2,879) (3,852) Total debt, net $ — $ 199,027 $ 572,121 $ 771,148 Weighted average interest rate n/a 6.4 % 3.1 % 4.0 % |
Leasing
Leasing | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leasing | Leasing The following is a schedule of minimum future cash rentals on tenant operating leases in effect as of June 30, 2023. The schedule does not reflect future rental revenues from the renewal or replacement of existing leases and excludes property operating expense reimbursements (dollars in thousands): 2023 (6 months) $ 118,856 2024 235,116 2025 214,733 2026 181,067 2027 135,691 Thereafter 305,752 Total $ 1,191,215 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | . Fair Value Measurements ASC 820 requires disclosure of the level within the fair value hierarchy in which the fair value measurements fall, including measurements using quoted prices in active markets for identical assets or liabilities (Level 1), quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active (Level 2), and significant valuation assumptions that are not readily observable in the market (Level 3). Financial Instruments Disclosed at Fair Value As of June 30, 2023 and December 31, 2022, the fair values of cash and cash equivalents, accounts receivable and accounts payable approximated their carrying values because of the short-term nature of these investments or liabilities based on Level 1 inputs. The fair values of the Company’s Senior Unsecured Notes were estimated by calculating the present value of principal and interest payments, based on borrowing rates available to the Company, which are Level 2 inputs, adjusted with a credit spread, as applicable, and assuming the loans are outstanding through maturity. The fair value of the Company’s Amended Facility approximated its carrying value because the variable interest rates approximate market borrowing rates available to the Company, which are Level 2 inputs. The following table sets forth the carrying value and the estimated fair value of the Company’s debt as of June 30, 2023 and December 31, 2022 (dollars in thousands): Fair Value Measurement Using Total Fair Value Quoted Price in Significant Significant Carrying Value Liabilities Debt at: June 30, 2023 $ 703,855 $ — $ 703,855 $ — $ 771,148 December 31, 2022 $ 700,926 $ — $ 700,926 $ — $ 770,818 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The Company’s authorized capital stock consists of 400,000,000 shares of common stock, $0.01 par value per share, and 100,000,000 shares of preferred stock, $0.01 par value per share. The Company has an at-the-market equity offering program (the “$300 Million ATM Program”) pursuant to which the Company may issue and sell shares of its common stock having an aggregate offering price of up to $300.0 million ($81.7 million remaining as of June 30, 2023) in amounts and at times to be determined by the Company from time to time. Actual sales under the $300 Million ATM Program, if any, will depend on a variety of factors to be determined by the Company from time to time, including, among others, market conditions, the trading price of the Company’s common stock, determinations by the Company of the appropriate sources of funding for the Company and potential uses of funding available to the Company. During the three and six months ended June 30, 2023, the Company issued an aggregate of 617,106 and 967,106 shares, respectively, of common stock at a weighted average offering price of $62.75 and $62.95 per share, respectively, under the $300 Million ATM Program, resulting in net proceeds of approximately $38.2 million and $60.0 million, respectively, and paying total compensation to the applicable sales agents of approximately $0.6 million and $0.9 million, respectively. During both the three and six months ended June 30, 2022, the Company issued an aggregate of 27,087 shares of common stock at a weighted average offering price of $76.03 per share under the $300 Million ATM Program, resulting in net proceeds of approximately $2.0 million and paying total compensation to the applicable sales agents of approximately $29,000. On February 13, 2023, the Company completed a public offering of 5,750,000 shares of common stock at a price per share of $62.50, which included the underwriters’ full exercise of their option to purchase an additional 750,000 shares. The net proceeds of the offering were approximately $355.9 million after deducting the underwriting discount and offering costs of approximately $3.5 million. The Company used the net proceeds for acquisitions. The Company has a share repurchase program authorizing the Company to repurchase up to 3,000,000 shares of its outstanding common stock from time to time through December 31, 2024. Purchases made pursuant to the program will be made in either the open market or in privately negotiated transactions as permitted by federal securities laws and other legal requirements. The timing, manner, price and amount of any repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The program may be suspended or discontinued at any time. As of June 30, 2023, the Company had not repurchased any shares of common stock pursuant to its share repurchase program. In connection with the Annual Meeting of Stockholders on May 2, 2023, the Company granted a total of 12,480 unrestricted shares of the Company's common stock to its independent directors under the 2019 Plan with a grant date fair value per share of $60.10. The grant date fair value of the common stock was determined using the closing price of the Company’s common stock on the date of the grant. The Company recognized approximately $0.8 million in compensation costs for both the three and six months ended June 30, 2023 related to this issuance. The Company has a Non-Qualified Deferred Compensation Plan (the “Deferred Compensation Plan”) maintained for the benefit of select employees and members of the Company’s Board of Directors, in which certain of their cash and equity-based compensation may be deposited. Deferred Compensation Plan assets are held in a rabbi trust, which is subject to the claims of the Company’s creditors in the event of bankruptcy or insolvency. The shares held in the Deferred Compensation Plan are classified within stockholders’ equity in a manner similar to the manner in which treasury stock is classified. Subsequent changes in the fair value of the shares are not recognized. During the three and six months ended June 30, 2023, 2,080 and 96,874 shares of common stock, respectively, were deposited into the Deferred Compensation Plan, and no shares of common stock were withdrawn from the Deferred Compensation Plan. During the three and six months ended June 30, 2022, 3,582 and 150,867 shares of common stock, respectively, were deposited into the Deferred Compensation Plan and no shares of common stock were withdrawn from the Deferred Compensation Plan. As of June 30, 2023, there were 1,898,961 shares of common stock authorized for issuance as restricted stock grants, unrestricted stock awards or Performance Share awards under the 2019 Plan, of which 573,005 were remaining and available for issuance. The grant date fair value per share of restricted stock awards issued during the period from February 16, 2010 (commencement of operations) to June 30, 2023 ranged from $14.20 to $78.33. The fair value of the restricted stock that was granted during the six months ended June 30, 2023 was approximately $3.9 million and the vesting period for the restricted stock is typically between one The following is a summary of the total restricted shares granted to the Company’s executive officers and employees with the related weighted average grant date fair value share prices for the six months ended June 30, 2023: Restricted Stock Activity: Shares Weighted Average Grant Non-vested shares outstanding as of December 31, 2022 356,632 $ 59.58 Granted 59,504 64.94 Forfeited (6,434) 67.10 Vested (35,805) 62.43 Non-vested shares outstanding as of June 30, 2023 373,897 $ 60.03 The following is a vesting schedule of the total non-vested shares of restricted stock outstanding as of June 30, 2023: Non-vested Shares Vesting Schedule Number of Shares 2023 (6 months) 27,360 2024 116,368 2025 84,253 2026 62,300 2027 83,616 Thereafter — Total Non-vested Shares 373,897 Long-Term Incentive Plan: As of June 30, 2023, there were three open performance measurement periods for the Performance Share awards: January 1, 2021 to December 31, 2023, January 1, 2022 to December 31, 2024, and January 1, 2023 to December 31, 2025. During the six months ended June 30, 2023, the Company issued 97,825 shares of common stock at a price of $58.56 per share related to the Performance Share awards for the performance period from January 1, 2020 to December 31, 2022. The following table summarizes certain information with respect to the Performance Share awards granted on or after January 1, 2019 and includes the forfeiture of certain of the Performance Share awards during 2022 (dollars in thousands): Performance Share Period Fair Value on Date of Grant 1 Expense for the Three Months Ended June 30, Expense for the Six Months Ended June 30, 2023 2022 2023 2022 January 1, 2020 - December 31, 2022 $ 4,882 $ — $ (110) $ — $ 354 January 1, 2021 - December 31, 2023 4,820 402 133 804 589 January 1, 2022 - December 31, 2024 5,789 482 421 964 965 January 1, 2023 - December 31, 2025 9,040 753 — 1,506 — Total $ 24,531 $ 1,637 $ 444 $ 3,274 $ 1,908 1 Reflects the fair value on date of grant for all performance shares outstanding at June 30, 2023. Dividends: The following table sets forth the cash dividends paid or payable per share during the six months ended June 30, 2023: For the Three Months Ended Security Dividend per Share Declaration Date Record Date Date Paid March 31, 2023 Common stock $ 0.40 February 7, 2023 March 31, 2023 April 6, 2023 June 30, 2023 Common Stock $ 0.40 May 2, 2023 June 30, 2023 July 14, 2023 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Pursuant to ASC 260-10-45, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities , unvested share-based payment awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The two-class method of computing earnings per share allocates earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings to common stockholders and undistributed earnings allocated to common stockholders by the weighted average number of common shares outstanding for the period. The Company’s non-vested shares of restricted stock are considered participating securities since these share-based awards contain non-forfeitable rights to dividends irrespective of whether the awards ultimately vest or expire. The Company had no antidilutive securities or dilutive restricted stock awards outstanding for the three and six months ended June 30, 2023 and 2022. In accordance with the Company’s policies of determining whether instruments granted in share-based payment transactions are participating securities and accounting for earnings per share, the net income (loss) per common share is adjusted for earnings distributed through declared dividends (if any) and allocated to all participating securities (weighted average common shares outstanding and unvested restricted shares outstanding) under the two-class method. Under this method, allocations were made to 374,514 and 295,247 of weighted average unvested restricted shares outstanding for the three months ended June 30, 2023 and 2022, respectively, and 374,251 and 299,433 of weighted average unvested restricted shares outstanding for the six months ended June 30, 2023 and 2022, respectively. Performance Share awards which may be payable in shares of the Company’s common stock after the conclusion of each pre-established performance measurement period are included as contingently issuable shares in the calculation of diluted weighted average common shares of stock outstanding assuming the reporting period is the end of the measurement period, and the effect is dilutive. Diluted shares related to the Performance Share awards were 0 and 90,217 for the three months ended June 30, 2023 and 2022, respectively, and 246,239 and 85,110 for the six months ended June 30, 2023 and 2022, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contractual Commitments. As of August 1, 2023, the Company had three outstanding contracts with third-party sellers to acquire three industrial properties for a total purchase price of approximately $67.4 million. There is no assurance that the Company will acquire the properties under contract because the proposed acquisitions are subject to due diligence and various closing conditions. As of August 1, 2023, the Company had one non-binding letter of intent with a third-party seller to acquire one industrial property for a total anticipated purchase price of approximately $27.5 million. In the normal course of its business, the Company enters into non-binding letters of intent to purchase properties from third parties that may obligate the Company to make payments or perform other obligations upon the occurrence of certain events, including the execution of a purchase and sale agreement and satisfactory completion of various due diligence matters. There can be no assurance that the Company will enter into a purchase and sale agreement with respect to this property or otherwise complete any such prospective purchases on the terms described or at all. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On August 1, 2023, the Company’s board of directors declared a cash dividend in the amount of $0.45 per share of its common stock payable on October 13, 2023 to the stockholders of record as of the close of business on September 29, 2023. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||||
Net (loss) income | $ 40,254 | $ 23,331 | $ 97,033 | $ 19,662 | $ 63,585 | $ 116,695 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for annual financial statements. In management’s opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The interim consolidated financial statements include all of the Company’s accounts and its subsidiaries and all intercompany balances and transactions have been eliminated in consolidation. The financial statements should be read in conjunction with the financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and the notes thereto, which was filed with the Securities and Exchange Commission on February 8, 2023. |
Use of Estimates | Use of Estimates. The preparation of the interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. |
Capitalization of Costs | Capitalization of Costs. The Company capitalizes costs directly related to the redevelopment, renovation and expansion of its investment in real estate. Costs associated with such projects are capitalized as incurred. If the project is abandoned, these costs are expensed during the period in which the redevelopment, renovation or expansion project is abandoned. Costs considered for capitalization include, but are not limited to, construction costs, interest, real estate taxes and insurance, if appropriate. These costs are capitalized only during the period in which activities necessary to ready an asset for its intended use are in progress. In the event that the activities to ready the asset for its intended use are suspended, the capitalization period will cease until such activities are resumed. Costs incurred for maintaining and repairing properties, which do not extend their useful lives, are expensed as incurred. Interest is capitalized based on actual capital expenditures from the period when redevelopment, renovation or expansion commences until the asset is ready for its intended use, at the weighted average borrowing rate during the period. |
Investments in Real Estate | Investments in Real Estate. Investments in real estate, including tenant improvements, leasehold improvements and leasing costs, are stated at cost, less accumulated depreciation, unless circumstances indicate that the cost cannot be recovered, in which case, an adjustment to the carrying value of the property is made to reduce it to its estimated fair value. The Company also reviews the impact of above and below-market leases, in-place leases and lease origination costs for acquisitions and records an intangible asset or liability accordingly. |
Impairment | Impairment. Carrying values for financial reporting purposes are reviewed for impairment on a property-by-property basis whenever events or changes in circumstances indicate that the carrying value of a property may not be fully recoverable. Examples of such events or changes in circumstances may include classifying an asset to be held for sale, changing the intended hold period or when an asset remains vacant significantly longer than expected. The intended use of an asset either held for sale or held for use can significantly impact how impairment is measured. If an asset is intended to be held for the long-term, the recoverability is based on the undiscounted future cash flows. If the asset carrying value is not supported on an undiscounted future cash flow basis, then the asset carrying value is measured against the lower of cost or the present value of expected cash |
Property Acquisitions | Property Acquisitions. In accordance with Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the integrated set of assets and activities is not considered a business. To be a business, the set of acquired activities and assets must include inputs and one or more substantive processes that together contribute to the ability to create outputs. The Company has determined that its real estate property acquisitions will generally be accounted for as asset acquisitions under the clarified definition. Upon acquisition of a property the Company estimates the fair value of acquired tangible assets (consisting generally of land, buildings and improvements) and intangible assets and liabilities (consisting generally of the above and below-market leases and the origination value of all in-place leases). The Company determines fair values using Level 3 inputs such as replacement cost, estimated cash flow projections and other valuation techniques and applying appropriate discount and capitalization rates based on available market information. Mortgage loans assumed in connection with acquisitions are recorded at their fair value using current market interest rates for similar debt at the date of acquisition. Acquisition-related costs associated with asset acquisitions are capitalized to individual tangible and intangible assets and liabilities assumed on a relative fair value basis and acquisition-related costs associated with business combinations are expensed as incurred. |
Depreciation and Useful Lives of Real Estate and Intangible Assets | Depreciation and Useful Lives of Real Estate and Intangible Assets. Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the related assets or liabilities. The following table reflects the standard depreciable lives typically used to compute depreciation and amortization. However, such depreciable lives may be different based on the estimated useful life of such assets or liabilities. Description Standard Depreciable Life Land Not depreciated Building 40 years Building Improvements 5-40 years Tenant Improvements Shorter of lease term or useful life Leasing Costs Lease term In-place Leases Lease term Above/Below-Market Leases Lease term |
Held for Sale Assets | Held for Sale Assets. The Company considers a property to be held for sale when it meets the criteria established under Accounting Standards Codification (“ASC”) 360, Property, Plant and Equipment (See “Note 5 - Held for Sale/Disposed Assets”). Properties held for sale are reported at the lower of the carrying amount or fair value less estimated costs to sell and are not depreciated while they are held for sale. |
Cash and Cash Equivalents | Cash and Cash Equivalents. Cash and cash equivalents consists of cash held in a major banking institution and other highly liquid short-term investments with original maturities of three months or less. Cash equivalents are generally invested in U.S. government securities, government agency securities or money market accounts. |
Restricted Cash | Restricted Cash. Restricted cash includes cash held in escrow in connection with property acquisitions and reserves for certain capital improvements, leasing, interest and real estate tax and insurance payments as required by certain mortgage loan obligations. |
Revenue Recognition | Revenue Recognition. The Company records rental revenue from operating leases on a straight-line basis over the term of the leases and maintains an allowance for estimated losses that may result from the inability of its tenants to make required payments. If tenants fail to make contractual lease payments that are greater than the Company’s allowance for doubtful accounts, security deposits and letters of credit, then the Company may have to recognize additional doubtful account charges in future periods. The Company monitors the liquidity and creditworthiness of its tenants on an on-going basis by reviewing their financial condition periodically as appropriate. Each period the Company reviews its outstanding accounts receivable, including straight-line rents, for doubtful accounts and provides allowances as needed. The Company also records lease termination fees when a tenant has executed a definitive termination agreement with the Company and the payment of the termination fee is not subject to any conditions that must be met or waived before the fee is due to the Company. If a tenant remains in the leased space following the execution of a definitive termination agreement, the applicable termination will be deferred and recognized over the term of such tenant’s occupancy. Tenant expense reimbursement income includes payments and amounts due from tenants pursuant to their leases for real estate taxes, insurance and other recoverable property operating expenses and is recognized as revenues during the same period the related expenses are incurred. |
Deferred Financing Costs | Deferred Financing Costs. Costs incurred in connection with financings are capitalized and amortized to interest expense using the effective interest method over the term of the related loan. Deferred financing costs associated with the Company’s revolving credit facility are classified as an asset, as a component of other assets in the accompanying consolidated balance sheets, and deferred financing costs associated with debt liabilities are reported as a direct deduction from the carrying amount of the debt liability in the accompanying consolidated balance sheets. Deferred financing costs related to the revolving credit facility and debt liabilities are carried at cost, net of accumulated amortization |
Income Taxes | Income Taxes. The Company elected to be taxed as a REIT under the Code and operates as such beginning with its taxable year ended December 31, 2010. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income to its stockholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, the Company generally will not be subject to federal income tax to the extent it distributes qualifying dividends to its stockholders. If it fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the IRS grants it relief under certain statutory provisions. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. However, the Company believes it is organized and operates in such a manner as to qualify for treatment as a REIT. ASC 740-10, Income Taxes (“ASC 740-10”) , |
Stock-Based Compensation and Other Long-Term Incentive Compensation | Stock-Based Compensation and Other Long-Term Incentive Compensation. The Company follows the provisions of ASC 718, Compensation-Stock Compensation, to account for its stock-based compensation plan, which requires that the compensation cost relating to stock-based payment transactions be recognized in the financial statements and that the cost be measured on the fair value of the equity or liability instruments issued. The Company’s 2019 Equity Incentive Plan (the “2019 Plan”) provides for the grant of restricted stock awards, performance share awards, unrestricted shares or any combination of the foregoing. Stock-based compensation is recognized as a general and administrative expense in the accompanying consolidated statements of operations and measured at the fair value of the award on the date of grant. The Company estimates the forfeiture rate based on historical experience as well as expected behavior. The amount of the expense may be subject to adjustment in future periods depending on the specific characteristics of the stock-based award. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments . ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) (See “Note 8 - Fair Value Measurements”), defines fair value as 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. ASC 820 also provides guidance for using fair value to measure financial assets and liabilities. ASC 820 requires disclosure of the level within the fair value hierarchy in which the fair value measurements fall, including measurements using quoted prices in active markets for identical assets or liabilities (Level 1), quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active (Level 2), and significant valuation assumptions that are not readily observable in the market (Level 3). |
Segment Disclosure | Segment Disclosure. ASC 280, Segment Reporting , establishes standards for reporting financial and descriptive information about an enterprise’s reportable segments. The Company has determined that it has one reportable segment, with activities related to investing in real estate. The Company’s investments in real estate are geographically diversified and the chief operating decision makers evaluate operating performance on an individual asset level. As each of the Company’s assets has similar economic characteristics, the assets have been aggregated into one reportable segment. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of intangible assets and liabilities | As of June 30, 2023 and December 31, 2022, the Company’s intangible assets and liabilities, including properties held for sale (if any), consisted of the following (dollars in thousands): June 30, 2023 December 31, 2022 Gross Accumulated Net Gross Accumulated Net In-place leases $ 137,213 $ (89,466) $ 47,747 $ 119,959 $ (83,222) $ 36,737 Above-market leases 3,586 (3,565) 21 3,586 (3,558) 28 Below-market leases (135,632) 46,594 (89,038) (95,638) 39,765 (55,873) Total $ 5,167 $ (46,437) $ (41,270) $ 27,907 $ (47,015) $ (19,108) |
Schedule of depreciation and useful lives of real estate and intangible assets | The following table reflects the standard depreciable lives typically used to compute depreciation and amortization. However, such depreciable lives may be different based on the estimated useful life of such assets or liabilities. Description Standard Depreciable Life Land Not depreciated Building 40 years Building Improvements 5-40 years Tenant Improvements Shorter of lease term or useful life Leasing Costs Lease term In-place Leases Lease term Above/Below-Market Leases Lease term |
Schedule of cash and cash equivalents and restricted cash | The following summarizes the reconciliation of cash and cash equivalents and restricted cash as presented in the accompanying consolidated statements of cash flows (dollars in thousands): For the Six Months Ended June 30, 2023 2022 Beginning Cash and cash equivalents at beginning of period $ 26,393 $ 204,404 Restricted cash 1,690 397 Cash and cash equivalents and restricted cash 28,083 204,801 Ending Cash and cash equivalents at end of period 58,920 7,237 Restricted cash 1,101 3,096 Cash and cash equivalents and restricted cash 60,021 10,333 Net increase (decrease) in cash and cash equivalents and restricted cash $ 31,938 $ (194,468) |
Schedule of cash and cash equivalents and restricted cash | The following summarizes the reconciliation of cash and cash equivalents and restricted cash as presented in the accompanying consolidated statements of cash flows (dollars in thousands): For the Six Months Ended June 30, 2023 2022 Beginning Cash and cash equivalents at beginning of period $ 26,393 $ 204,404 Restricted cash 1,690 397 Cash and cash equivalents and restricted cash 28,083 204,801 Ending Cash and cash equivalents at end of period 58,920 7,237 Restricted cash 1,101 3,096 Cash and cash equivalents and restricted cash 60,021 10,333 Net increase (decrease) in cash and cash equivalents and restricted cash $ 31,938 $ (194,468) |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Real Estate [Abstract] | |
Schedule of properties under and completed redevelopment | The following table summarizes certain information with respect to the properties under development or redevelopment and the land entitled for future development as of June 30, 2023: Property Name Location Total Expected Investment (in thousands) 1 Estimated Post-Development Square Feet Estimated Post-Development Acreage Properties under development or redevelopment: Countyline Phase IV Countyline Building 38 2 Hialeah, FL $ 88,800 506,215 — Countyline Building 39 2 Hialeah, FL 42,632 178,201 — Countyline Building 40 2 Hialeah, FL 41,968 186,107 — Countyline Building 41 2 Hialeah, FL 41,400 190,907 — 147th Street Hawthorne, CA 18,060 34,045 — Maple III Rancho Dominguez, CA 26,980 — 2.8 Paterson Plank III Carlstadt, NJ 35,583 47,316 — Total $ 295,423 1,142,791 2.8 Land entitled for future development: Countyline Phase IV Countyline Phase IV Land 2 Hialeah, FL 277,900 1,135,036 — Total $ 277,900 1,135,036 — 1 Excludes below-market lease adjustments recorded at acquisition. Total expected investment for the properties includes the initial purchase price, buyer’s due diligence and closing costs, estimated near-term redevelopment expenditures, capitalized interest and leasing costs necessary to achieve stabilization. 2 Collectively, “Countyline Phase IV”, a 121-acre project entitled for 2.2 million square feet of industrial distribution buildings located in Miami’s Countyline Corporate Park (“Countyline”), immediately adjacent to the Company’s seven buildings within Countyline. Countyline Phase IV, a landfill redevelopment adjacent to Florida’s Turnpike and the southern terminus of I-75, is expected to contain ten LEED-certified industrial distribution buildings at completion. Property Name Location Total Investment (in thousands) 1 Post-Development Square Feet Post-Development Acreage Completion Quarter Berryessa San Jose, CA $ 26,296 — 6.3 Q2 2023 1 Total investment for the property includes the initial purchase price, buyer’s due diligence and closing costs, redevelopment expenditures, capitalized interest and leasing costs necessary to achieve stabilization. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of debt outstanding | The following table summarizes the components of the Company’s indebtedness as of June 30, 2023 and December 31, 2022 (dollars in thousands): June 30, 2023 December 31, 2022 Margin Above SOFR Interest Rate 1 Contractual Maturity Date Unsecured Debt: Credit Facility $ — $ — 1.1% 2 n/a 8/20/2025 5-Year Term Loan 100,000 100,000 1.3% 2 6.3 % 1/15/2027 5-Year Term Loan 100,000 100,000 1.3% 2 6.4 % 1/15/2028 $100M 7-Year Unsecured 3 100,000 100,000 n/a 3.8 % 7/14/2024 $50M 10-Year Unsecured 3 50,000 50,000 n/a 4.0 % 7/7/2026 $50M 12-Year Unsecured 3 50,000 50,000 n/a 4.7 % 10/31/2027 $100M 7-Year Unsecured 3 100,000 100,000 n/a 2.4 % 7/15/2028 $100M 10-Year Unsecured 3 100,000 100,000 n/a 3.1 % 12/3/2029 $125M 9-Year Unsecured 3 125,000 125,000 n/a 2.4 % 8/17/2030 $50M 10-Year Unsecured 3 50,000 50,000 n/a 2.8 % 7/15/2031 Total Unsecured Debt 775,000 775,000 Less: Unamortized debt issuance costs (3,852) (4,182) Total $ 771,148 $ 770,818 1 Reflects the contractual interest rate under the terms of each loan as of June 30, 2023. Excludes the effects of unamortized debt issuance costs. 3 Collectively, the “Senior Unsecured Notes”. |
Schedule of principal payments | The scheduled principal payments of the Company’s debt as of June 30, 2023 were as follows (dollars in thousands): Credit Term Loan Senior Total Debt 2023 (6 months) $ — $ — $ — $ — 2024 — — 100,000 100,000 2025 — — — — 2026 — — 50,000 50,000 2027 — 100,000 50,000 150,000 Thereafter — 100,000 375,000 475,000 Total debt — 200,000 575,000 775,000 Deferred financing costs, net — (973) (2,879) (3,852) Total debt, net $ — $ 199,027 $ 572,121 $ 771,148 Weighted average interest rate n/a 6.4 % 3.1 % 4.0 % |
Leasing (Tables)
Leasing (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of minimum future cash rentals on tenant operating leases | The following is a schedule of minimum future cash rentals on tenant operating leases in effect as of June 30, 2023. The schedule does not reflect future rental revenues from the renewal or replacement of existing leases and excludes property operating expense reimbursements (dollars in thousands): 2023 (6 months) $ 118,856 2024 235,116 2025 214,733 2026 181,067 2027 135,691 Thereafter 305,752 Total $ 1,191,215 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying value and fair value of senior secured loan and debt | The following table sets forth the carrying value and the estimated fair value of the Company’s debt as of June 30, 2023 and December 31, 2022 (dollars in thousands): Fair Value Measurement Using Total Fair Value Quoted Price in Significant Significant Carrying Value Liabilities Debt at: June 30, 2023 $ 703,855 $ — $ 703,855 $ — $ 771,148 December 31, 2022 $ 700,926 $ — $ 700,926 $ — $ 770,818 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of total restricted shares granted | The following is a summary of the total restricted shares granted to the Company’s executive officers and employees with the related weighted average grant date fair value share prices for the six months ended June 30, 2023: Restricted Stock Activity: Shares Weighted Average Grant Non-vested shares outstanding as of December 31, 2022 356,632 $ 59.58 Granted 59,504 64.94 Forfeited (6,434) 67.10 Vested (35,805) 62.43 Non-vested shares outstanding as of June 30, 2023 373,897 $ 60.03 |
Vesting schedule of the total non-vested shares of restricted stock outstanding | The following is a vesting schedule of the total non-vested shares of restricted stock outstanding as of June 30, 2023: Non-vested Shares Vesting Schedule Number of Shares 2023 (6 months) 27,360 2024 116,368 2025 84,253 2026 62,300 2027 83,616 Thereafter — Total Non-vested Shares 373,897 |
Schedule of certain information with respect to the Performance Share awards | The following table summarizes certain information with respect to the Performance Share awards granted on or after January 1, 2019 and includes the forfeiture of certain of the Performance Share awards during 2022 (dollars in thousands): Performance Share Period Fair Value on Date of Grant 1 Expense for the Three Months Ended June 30, Expense for the Six Months Ended June 30, 2023 2022 2023 2022 January 1, 2020 - December 31, 2022 $ 4,882 $ — $ (110) $ — $ 354 January 1, 2021 - December 31, 2023 4,820 402 133 804 589 January 1, 2022 - December 31, 2024 5,789 482 421 964 965 January 1, 2023 - December 31, 2025 9,040 753 — 1,506 — Total $ 24,531 $ 1,637 $ 444 $ 3,274 $ 1,908 1 Reflects the fair value on date of grant for all performance shares outstanding at June 30, 2023. |
Schedule of cash dividends paid or payable per share | The following table sets forth the cash dividends paid or payable per share during the six months ended June 30, 2023: For the Three Months Ended Security Dividend per Share Declaration Date Record Date Date Paid March 31, 2023 Common stock $ 0.40 February 7, 2023 March 31, 2023 April 6, 2023 June 30, 2023 Common Stock $ 0.40 May 2, 2023 June 30, 2023 July 14, 2023 |
Organization (Details)
Organization (Details) - 6 months ended Jun. 30, 2023 | property segment | ft² | a |
Real Estate | |||
Number of markets | segment | 6 | ||
Buildings | |||
Real Estate | |||
Number of properties (property) | 257 | ||
Buildings | Scenario, Plan | |||
Real Estate | |||
Number of properties (property) | 6 | ||
Area of real estate property | ft² | 1,100,000 | ||
Improved land parcels | |||
Real Estate | |||
Number of properties (property) | 46 | ||
Area of real estate property | ft² | 15,800,000 | ||
Area of land (acre) | a | 165.8 | ||
Improved land parcels | Scenario, Plan | |||
Real Estate | |||
Number of properties (property) | 1 | ||
Redevelopment property | |||
Real Estate | |||
Number of properties (property) | 7 | ||
Redevelopment property | Scenario, Plan | |||
Real Estate | |||
Area of land (acre) | 1,142,791 | 2.8 | |
Land Entitled For Future Development | Scenario, Plan | |||
Real Estate | |||
Area of land (acre) | a | 62.7 |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Significant Accounting Policies Statement | |||||
Amortization of above and below-market leases | $ 3,600,000 | $ 3,500,000 | $ 7,200,000 | $ 6,600,000 | |
Remaining weighted average lease term related to these intangible assets and liabilities | 6 years 10 months 24 days | 6 years 10 months 24 days | |||
Straight-line rent and accounts receivables, net of allowances | $ 50,900,000 | $ 50,900,000 | $ 48,000,000 | ||
Straight-line rent and accounts receivable, allowances | 200,000 | 200,000 | 600,000 | ||
Deferred financing cost accumulated amortization | 12,700,000 | $ 12,700,000 | $ 11,900,000 | ||
Performance measurement period | 3 years | ||||
Number of reportable segments | segment | 1 | ||||
Real Estate Investment | |||||
Significant Accounting Policies Statement | |||||
Property impairment charges | $ 0 | $ 0 | $ 0 | $ 0 |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets | ||
Finite-lived intangible assets, gross | $ 140,799 | $ 123,545 |
Below-market leases, gross | (135,632) | (95,638) |
Finite-lived intangible assets (liabilities), gross | 5,167 | 27,907 |
Below-market lease, accumulated amortization | 46,594 | 39,765 |
Finite-lived intangible assets (liabilities), accumulated amortization | (46,437) | (47,015) |
Below-market leases, net | (89,038) | (55,873) |
Total | (41,270) | (19,108) |
In-place leases | ||
Finite-Lived Intangible Assets | ||
Finite-lived intangible assets, gross | 137,213 | 119,959 |
Finite-lived intangible assets, accumulated amortization | (89,466) | (83,222) |
Finite-lived intangible assets, net | 47,747 | 36,737 |
Above-market leases | ||
Finite-Lived Intangible Assets | ||
Finite-lived intangible assets, gross | 3,586 | 3,586 |
Finite-lived intangible assets, accumulated amortization | (3,565) | (3,558) |
Finite-lived intangible assets, net | $ 21 | $ 28 |
Significant Accounting Polici_6
Significant Accounting Policies - Schedule of Depreciation and Useful Lives of Real Estate and Intangible Assets (Details) | Jun. 30, 2023 |
Buildings | |
Finite-Lived Intangible Assets | |
Standard depreciable life | 40 years |
Building Improvements | Minimum | |
Finite-Lived Intangible Assets | |
Standard depreciable life | 5 years |
Building Improvements | Maximum | |
Finite-Lived Intangible Assets | |
Standard depreciable life | 40 years |
Significant Accounting Polici_7
Significant Accounting Policies - Summary of the Reconciliation of Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | ||||
Cash and cash equivalents | $ 58,920 | $ 7,237 | $ 26,393 | $ 204,404 |
Restricted cash | 1,101 | 3,096 | 1,690 | 397 |
Cash and cash equivalents and restricted cash | 60,021 | 10,333 | $ 28,083 | $ 204,801 |
Net increase (decrease) in cash and cash equivalents and restricted cash | $ 31,938 | $ (194,468) |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) - Northern New Jersey/ New York City ft² in Millions | 6 Months Ended |
Jun. 30, 2023 a ft² property | |
Revenue Benchmark | Customer Concentration Risk | |
Real Estate Properties | |
Concentration risk percentage | 23.90% |
Office Building | |
Real Estate Properties | |
Number of properties (property) | 43 |
Area of real estate property | ft² | 2.6 |
Improved Land Parcels | |
Real Estate Properties | |
Number of properties (property) | 13 |
Area of real estate property | a | 68 |
Investments in Real Estate - Na
Investments in Real Estate - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 USD ($) property | Mar. 31, 2023 USD ($) | Jun. 30, 2022 USD ($) property | Mar. 31, 2022 USD ($) | Jun. 30, 2023 USD ($) property | Jun. 30, 2022 USD ($) property | Jun. 30, 2023 ft² | Jun. 30, 2023 a | |
Finite-Lived Intangible Assets | ||||||||
Rental revenues and tenant expense reimbursements | $ 79,535 | $ 65,369 | $ 154,186 | $ 129,404 | ||||
Net income | 40,254 | $ 23,331 | 97,033 | $ 19,662 | 63,585 | 116,695 | ||
Capitalized interest associated with redevelopment activities | $ 2,300 | 900 | $ 2,900 | 1,600 | ||||
Redevelopment property | ||||||||
Finite-Lived Intangible Assets | ||||||||
Number of properties (property) | property | 7 | 7 | ||||||
Redevelopment property | Berryessa | ||||||||
Finite-Lived Intangible Assets | ||||||||
Area of real estate property (square feet) | a | 6.3 | |||||||
Redevelopment property | Scenario, Plan | ||||||||
Finite-Lived Intangible Assets | ||||||||
Area of land (acre) | 1,142,791 | 2.8 | ||||||
Redevelopment property | Scenario, Plan | Maple III | ||||||||
Finite-Lived Intangible Assets | ||||||||
Area of land (acre) | a | 2.8 | |||||||
Buildings | ||||||||
Finite-Lived Intangible Assets | ||||||||
Number of properties (property) | property | 257 | 257 | ||||||
Buildings | Scenario, Plan | ||||||||
Finite-Lived Intangible Assets | ||||||||
Number of properties acquired (property) | property | 6 | |||||||
Number of properties (property) | property | 6 | 6 | ||||||
Area of real estate property (square feet) | ft² | 1,100,000 | |||||||
Area of real estate property acquired (square feet) | ft² | 1,100,000 | |||||||
Completed Redevelopments | ||||||||
Finite-Lived Intangible Assets | ||||||||
Number of properties (property) | property | 1 | 1 | ||||||
Completed Redevelopments | Berryessa | ||||||||
Finite-Lived Intangible Assets | ||||||||
Asset acquisition, property additions | $ 26,296 | |||||||
Improved Land Parcels | ||||||||
Finite-Lived Intangible Assets | ||||||||
Number of properties (property) | property | 46 | 46 | ||||||
Area of real estate property (square feet) | ft² | 15,800,000 | |||||||
Area of land (acre) | a | 165.8 | |||||||
Improved Land Parcels | Scenario, Plan | ||||||||
Finite-Lived Intangible Assets | ||||||||
Number of properties (property) | property | 1 | 1 | ||||||
Land Entitled For Future Development | Scenario, Plan | ||||||||
Finite-Lived Intangible Assets | ||||||||
Area of land (acre) | a | 62.7 | |||||||
Asset Acquisitions 2023 | ||||||||
Finite-Lived Intangible Assets | ||||||||
Rental revenues and tenant expense reimbursements | $ 3,900 | $ 4,200 | ||||||
Net income | $ 1,400 | 1,200 | ||||||
Asset Acquisitions 2023 | Industrial Property | ||||||||
Finite-Lived Intangible Assets | ||||||||
Number of properties acquired (property) | property | 1 | |||||||
Asset acquisitions, assets acquired and liabilities assumed, net | $ 13,800 | 420,500 | ||||||
Finite-lived intangible assets acquired | 1,100 | 18,900 | ||||||
Asset acquisition, liabilities | 300 | 43,000 | ||||||
Asset Acquisitions 2023 | Land | Industrial Property | ||||||||
Finite-Lived Intangible Assets | ||||||||
Asset acquisition, property additions | 7,800 | 253,700 | ||||||
Asset Acquisitions 2023 | Buildings | Industrial Property | ||||||||
Finite-Lived Intangible Assets | ||||||||
Asset acquisition, property additions | $ 4,900 | $ 147,900 | ||||||
Asset Acquisitions 2022 | ||||||||
Finite-Lived Intangible Assets | ||||||||
Rental revenues and tenant expense reimbursements | 1,700 | 1,700 | ||||||
Net income | $ 700 | $ 700 | ||||||
Asset Acquisitions 2022 | Industrial Property | ||||||||
Finite-Lived Intangible Assets | ||||||||
Number of properties acquired (property) | property | 10 | 4 | 12 | |||||
Asset acquisitions, assets acquired and liabilities assumed, net | $ 221,600 | $ 291,900 | ||||||
Finite-lived intangible assets acquired | 8,400 | 9,600 | ||||||
Asset acquisition, liabilities | 12,800 | 15,000 | ||||||
Asset Acquisitions 2022 | Land | Industrial Property | ||||||||
Finite-Lived Intangible Assets | ||||||||
Asset acquisition, property additions | 169,500 | 199,500 | ||||||
Asset Acquisitions 2022 | Buildings | Industrial Property | ||||||||
Finite-Lived Intangible Assets | ||||||||
Asset acquisition, property additions | $ 43,700 | $ 82,800 |
Investments in Real Estate - Sc
Investments in Real Estate - Schedule of Under and Redevelopment Properties (Details) - 6 months ended Jun. 30, 2023 $ in Thousands | USD ($) property | ft² | a |
Redevelopment Property | |||
Real Estate Properties | |||
Number of properties (property) | property | 7 | ||
Redevelopment Property | Berryessa | |||
Real Estate Properties | |||
Area of real estate property (square feet) | a | 6.3 | ||
Redevelopment Property | Scenario, Plan | |||
Real Estate Properties | |||
Asset acquisition, consideration transferred | $ 295,423 | ||
Area of land (acre) | 1,142,791 | 2.8 | |
Redevelopment Property | Scenario, Plan | Countyline Building 38 | |||
Real Estate Properties | |||
Asset acquisition, consideration transferred | 88,800 | ||
Area of land (acre) | ft² | 506,215 | ||
Redevelopment Property | Scenario, Plan | Countyline Building 39 | |||
Real Estate Properties | |||
Asset acquisition, consideration transferred | 42,632 | ||
Area of land (acre) | ft² | 178,201 | ||
Redevelopment Property | Scenario, Plan | Countyline Building 40 | |||
Real Estate Properties | |||
Asset acquisition, consideration transferred | 41,968 | ||
Area of land (acre) | ft² | 186,107 | ||
Redevelopment Property | Scenario, Plan | Countyline Building 41 | |||
Real Estate Properties | |||
Asset acquisition, consideration transferred | 41,400 | ||
Area of land (acre) | ft² | 190,907 | ||
Redevelopment Property | Scenario, Plan | 147th Street | |||
Real Estate Properties | |||
Asset acquisition, consideration transferred | 18,060 | ||
Area of land (acre) | ft² | 34,045 | ||
Redevelopment Property | Scenario, Plan | Maple III | |||
Real Estate Properties | |||
Asset acquisition, consideration transferred | 26,980 | ||
Area of land (acre) | a | 2.8 | ||
Redevelopment Property | Scenario, Plan | Paterson Plank III | |||
Real Estate Properties | |||
Asset acquisition, consideration transferred | 35,583 | ||
Area of land (acre) | ft² | 47,316 | ||
Land | Scenario, Plan | |||
Real Estate Properties | |||
Asset acquisition, consideration transferred | 277,900 | ||
Area of land (acre) | ft² | 1,135,036 | ||
Land | Scenario, Plan | Countyline Phase IV Land | |||
Real Estate Properties | |||
Asset acquisition, consideration transferred | $ 277,900 | ||
Area of land (acre) | ft² | 1,135,036 | ||
Industrial Building | Industrial Distribution in Miami's Countyline | |||
Real Estate Properties | |||
Area of land (acre) | a | 121 | ||
Area of real estate property (square feet) | ft² | 2,200,000 | ||
Industrial Building | Redevelopment Adjacent To Florida Turnpike And Southern I 75 | |||
Real Estate Properties | |||
Number of properties (property) | property | 7 | ||
Industrial Building | Scenario, Plan | Redevelopment Adjacent To Florida Turnpike And Southern I 75 | |||
Real Estate Properties | |||
Number of properties acquired (property) | property | 10 | ||
Completed Redevelopments | |||
Real Estate Properties | |||
Number of properties (property) | property | 1 | ||
Completed Redevelopments | Berryessa | |||
Real Estate Properties | |||
Asset acquisition, property additions | $ 26,296 |
Held for Sale_Disposed Assets (
Held for Sale/Disposed Assets (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 USD ($) property | Jun. 30, 2022 USD ($) | |
Buildings | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||
Number of properties (property) | 257 | |
Disposed of by Sale | Northern New Jersey/New York | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||
Number of properties (property) | 1 | |
Proceeds from sale of real estate | $ | $ 25.5 | $ 110.4 |
Gain on sale of real estate | $ | $ 12.3 | $ 76 |
Disposed of by Sale | Northern New Jersey/New York | Buildings | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||
Number of properties (property) | 18 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument | ||
Total Unsecured Debt | $ 775,000,000 | $ 775,000,000 |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (3,852,000) | (4,182,000) |
Total debt, net | $ 771,148,000 | 770,818,000 |
SOFR | Line of Credit | ||
Debt Instrument | ||
Debt instrument, basis spread on variable adjustment rate | 0.10% | |
SOFR | Minimum | Line of Credit | ||
Debt Instrument | ||
Basis spread on variable rate | 1.10% | |
SOFR | Maximum | Line of Credit | ||
Debt Instrument | ||
Basis spread on variable rate | 1.55% | |
Line of Credit | ||
Debt Instrument | ||
Total Unsecured Debt | $ 0 | 0 |
Line of Credit | SOFR | ||
Debt Instrument | ||
Basis spread on variable rate | 1.10% | |
Unsecured Debt | 5-Year Term Loan | ||
Debt Instrument | ||
Debt term (years) | 5 years | |
Total Unsecured Debt | $ 100,000,000 | 100,000,000 |
Interest rate | 6.30% | |
Unsecured Debt | 5-Year Term Loan | SOFR | ||
Debt Instrument | ||
Basis spread on variable rate | 1.25% | |
Unsecured Debt | 5-Year Term Loan | SOFR | Minimum | ||
Debt Instrument | ||
Basis spread on variable rate | 1.25% | |
Unsecured Debt | 5-Year Term Loan | SOFR | Maximum | ||
Debt Instrument | ||
Basis spread on variable rate | 1.75% | |
Unsecured Debt | 5-Year Term Loan | ||
Debt Instrument | ||
Debt term (years) | 5 years | |
Total Unsecured Debt | $ 100,000,000 | 100,000,000 |
Interest rate | 6.40% | |
Unsecured Debt | 5-Year Term Loan | SOFR | ||
Debt Instrument | ||
Basis spread on variable rate | 1.30% | |
Unsecured Debt | $100M 7-Year Unsecured | ||
Debt Instrument | ||
Debt instrument, face amount | $ 100,000,000 | |
Debt term (years) | 7 years | |
Total Unsecured Debt | $ 100,000,000 | 100,000,000 |
Interest rate | 3.80% | |
Unsecured Debt | $50M 10-Year Unsecured | ||
Debt Instrument | ||
Debt instrument, face amount | $ 50,000,000 | |
Debt term (years) | 10 years | |
Total Unsecured Debt | $ 50,000,000 | 50,000,000 |
Interest rate | 4% | |
Unsecured Debt | $50M 12-Year Unsecured | ||
Debt Instrument | ||
Debt instrument, face amount | $ 50,000,000 | |
Debt term (years) | 12 years | |
Total Unsecured Debt | $ 50,000,000 | 50,000,000 |
Interest rate | 4.70% | |
Unsecured Debt | $100M 7-Year Unsecured | ||
Debt Instrument | ||
Debt instrument, face amount | $ 100,000,000 | |
Debt term (years) | 7 years | |
Total Unsecured Debt | $ 100,000,000 | 100,000,000 |
Interest rate | 2.40% | |
Unsecured Debt | $100M 10-Year Unsecured | ||
Debt Instrument | ||
Debt instrument, face amount | $ 100,000,000 | |
Debt term (years) | 10 years | |
Total Unsecured Debt | $ 100,000,000 | 100,000,000 |
Interest rate | 3.10% | |
Unsecured Debt | $125M 10-Year Unsecured | ||
Debt Instrument | ||
Debt instrument, face amount | $ 125,000,000 | |
Debt term (years) | 9 years | |
Total Unsecured Debt | $ 125,000,000 | 125,000,000 |
Interest rate | 2.40% | |
Unsecured Debt | $50M 9-Year Unsecured | ||
Debt Instrument | ||
Debt instrument, face amount | $ 50,000,000 | |
Debt term (years) | 10 years | |
Total Unsecured Debt | $ 50,000,000 | $ 50,000,000 |
Interest rate | 2.80% |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument | ||
Total unsecured debt | $ 775,000,000 | $ 775,000,000 |
Credit facility | $ 0 | 0 |
Credit facility | ||
Debt Instrument | ||
Credit facility, maximum | 1,100,000,000 | |
Additional borrowing capacity | 500,000,000 | |
Line of Credit | SOFR | ||
Debt Instrument | ||
Debt instrument, basis spread on variable adjustment rate | 0.10% | |
Line of Credit | Minimum | SOFR | ||
Debt Instrument | ||
Basis spread on variable rate (percent) | 1.10% | |
Line of Credit | Maximum | SOFR | ||
Debt Instrument | ||
Basis spread on variable rate (percent) | 1.55% | |
Amended facility maturing August 2025 | Credit facility | ||
Debt Instrument | ||
Credit facility, maximum | 400,000,000 | |
Credit facility | $ 0 | $ 0 |
Unencumbered properties, percent | 60% | |
Amended facility maturing August 2025 | Credit facility | Federal Funds Rate | ||
Debt Instrument | ||
Variable rate threshold (percent) | 0.50% | |
Amended facility maturing August 2025 | Credit facility | SOFR | ||
Debt Instrument | ||
Variable rate threshold (percent) | 1.25% | |
Amended facility maturing August 2025 | Credit facility | Minimum | ||
Debt Instrument | ||
Credit facility, facility fee, percent | 0.15% | |
Amended facility maturing August 2025 | Credit facility | Maximum | ||
Debt Instrument | ||
Credit facility, facility fee, percent | 0.30% | |
Unsecured Debt | 5-Year Term Loan | ||
Debt Instrument | ||
Total unsecured debt | $ 100,000,000 | $ 100,000,000 |
Unsecured Debt | 5-Year Term Loan | SOFR | ||
Debt Instrument | ||
Basis spread on variable rate (percent) | 1.25% | |
Unsecured Debt | 5-Year Term Loan | Minimum | SOFR | ||
Debt Instrument | ||
Basis spread on variable rate (percent) | 1.25% | |
Unsecured Debt | 5-Year Term Loan | Maximum | SOFR | ||
Debt Instrument | ||
Basis spread on variable rate (percent) | 1.75% | |
Term loan | ||
Debt Instrument | ||
Total unsecured debt | $ 200,000,000 | $ 200,000,000 |
Debt - Schedule of Principal Pa
Debt - Schedule of Principal Payments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Maturities of Long-term Debt | ||
2023 (6 months) | $ 0 | |
2024 | 100,000 | |
2025 | 0 | |
2026 | 50,000 | |
2027 | 150,000 | |
Thereafter | 475,000 | |
Total debt | 775,000 | |
Deferred financing costs, net | (3,852) | |
Total debt, net | $ 771,148 | $ 770,818 |
Weighted average interest rate | 4% | |
Credit Facility | ||
Maturities of Long-term Debt | ||
2023 (6 months) | $ 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 0 | |
Total debt | 0 | |
Deferred financing costs, net | 0 | |
Total debt, net | 0 | |
Term Loan | ||
Maturities of Long-term Debt | ||
2023 (6 months) | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 100,000 | |
Thereafter | 100,000 | |
Total debt | 200,000 | |
Deferred financing costs, net | (973) | |
Total debt, net | $ 199,027 | |
Weighted average interest rate | 6.40% | |
Senior Unsecured Notes | ||
Maturities of Long-term Debt | ||
2023 (6 months) | $ 0 | |
2024 | 100,000 | |
2025 | 0 | |
2026 | 50,000 | |
2027 | 50,000 | |
Thereafter | 375,000 | |
Total debt | 575,000 | |
Deferred financing costs, net | (2,879) | |
Total debt, net | $ 572,121 | |
Weighted average interest rate | 3.10% |
Leasing (Details)
Leasing (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Lessor, Operating Lease, Payments, Fiscal Year Maturity | |
2023 (6 months) | $ 118,856 |
2024 | 235,116 |
2025 | 214,733 |
2026 | 181,067 |
2027 | 135,691 |
Thereafter | 305,752 |
Total | $ 1,191,215 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Estimated Fair Value of Company Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Liabilities | ||
Debt, fair value | $ 703,855 | $ 700,926 |
Debt, carrying value | 771,148 | 770,818 |
Level 1 | ||
Liabilities | ||
Debt, fair value | 0 | 0 |
Level 2 | ||
Liabilities | ||
Debt, fair value | 703,855 | 700,926 |
Level 3 | ||
Liabilities | ||
Debt, fair value | $ 0 | $ 0 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | 3 Months Ended | 6 Months Ended | 161 Months Ended | |||||||
Feb. 13, 2023 USD ($) $ / shares shares | May 03, 2022 $ / shares | Jun. 30, 2023 USD ($) measurement_period $ / shares shares | Mar. 31, 2023 USD ($) shares | Jun. 30, 2022 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) shares | Jun. 30, 2023 USD ($) measurement_period $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) measurement_period $ / shares shares | Dec. 31, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Common stock, shares authorized (in shares) | shares | 400,000,000 | 400,000,000 | 400,000,000 | 400,000,000 | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Preferred stock, authorized (in shares) | shares | 100,000,000 | 100,000,000 | 100,000,000 | |||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Weighted average offering price (per share) | $ / shares | $ 76.03 | $ 76.03 | ||||||||
Net proceeds of common share issuance | $ 417,156,000 | $ 2,059,000 | ||||||||
Underwriting discount and offering costs | $ 822,000 | $ 943,000 | $ 112,000 | $ 0 | ||||||
Shares repurchase program, authorized repurchase amount (in shares) | shares | 3,000,000 | 3,000,000 | 3,000,000 | |||||||
Withdraw from deferred compensation plan (in shares) | shares | 0 | 0 | 0 | 0 | ||||||
Common Shares Held in Deferred Compensation Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Deposits to deferred compensation plan (in shares) | shares | 2,080 | 94,794 | 3,582 | 147,285 | 96,874 | 150,867 | ||||
2019 Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Common stock, shares authorized (in shares) | shares | 1,898,961 | 1,898,961 | 1,898,961 | |||||||
Grant date fair value per share of restricted stock awards (in dollars per share) | $ / shares | $ 60.10 | |||||||||
Compensation costs | $ 800,000 | $ 800,000 | ||||||||
Remaining balance of shares available (in shares) | shares | 573,005 | 573,005 | 573,005 | |||||||
Long Term Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Number of shares issued | shares | 97,825 | |||||||||
Shares issued, price per share (in dollars per share) | $ / shares | $ 58.56 | $ 58.56 | $ 58.56 | |||||||
Number of measurement periods | measurement_period | 3 | 3 | 3 | |||||||
Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Grant date fair value per share of restricted stock awards (in dollars per share) | $ / shares | $ 64.94 | |||||||||
Compensation costs | $ 1,500,000 | $ 800,000 | $ 2,900,000 | $ 2,200,000 | ||||||
Fair value of the restricted stock granted | 3,900,000 | |||||||||
Unrecognized compensation costs related to restricted stock issuances | $ 13,700,000 | $ 13,700,000 | $ 13,700,000 | |||||||
Remaining weighted average period | 2 years 9 months 18 days | |||||||||
Minimum | Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Grant date fair value per share of restricted stock awards (in dollars per share) | $ / shares | $ 14.20 | |||||||||
Vesting period for the restricted stock | 1 year | |||||||||
Maximum | Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Grant date fair value per share of restricted stock awards (in dollars per share) | $ / shares | $ 78.33 | |||||||||
Vesting period for the restricted stock | 5 years | |||||||||
At The Market Program | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Net proceeds of common share issuance | 2,000,000 | 2,000,000 | ||||||||
Total compensation to the applicable sales agents | $ 29,000 | $ 29,000 | ||||||||
$300 Million ATM Program | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Common stock aggregate offering price | $ 300,000,000 | |||||||||
Common stock aggregate offering price, remaining | $ 81,700,000 | |||||||||
Weighted average offering price (per share) | $ / shares | $ 62.75 | $ 62.95 | ||||||||
Total compensation to the applicable sales agents | $ 600,000 | $ 900,000 | ||||||||
Number of shares issued | shares | 617,106 | 967,106 | ||||||||
Net proceeds form offerings | $ 38,200,000 | $ 60,000,000 | ||||||||
IPO | Common Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Number of shares issued | shares | 5,750,000 | |||||||||
Shares issued, price per share (in dollars per share) | $ / shares | $ 62.50 | |||||||||
Net proceeds form offerings | $ 355,900,000 | |||||||||
Underwriting discount and offering costs | $ 3,500,000 | |||||||||
Over-Allotment Option | Common Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Number of shares issued | shares | 750,000 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Activity (Details) - $ / shares | 6 Months Ended | |
May 03, 2022 | Jun. 30, 2023 | |
Shares | ||
Non-vested shares outstanding at end of period (in shares) | 373,897 | |
2019 Plan | ||
Shares | ||
Granted (in shares) | 12,480 | |
Weighted Average Grant Date Fair Value | ||
Granted (in dollars per share) | $ 60.10 | |
Restricted Stock | ||
Shares | ||
Non-vested shares outstanding at beginning of period (in shares) | 356,632 | |
Granted (in shares) | 59,504 | |
Forfeited (in shares) | (6,434) | |
Vested (in shares) | (35,805) | |
Non-vested shares outstanding at end of period (in shares) | 373,897 | |
Weighted Average Grant Date Fair Value | ||
Non-vested shares outstanding at beginning of period (in dollars per share) | $ 59.58 | |
Granted (in dollars per share) | 64.94 | |
Forfeited (in dollars per share) | 67.10 | |
Vested (in dollars per share) | 62.43 | |
Non-vested shares outstanding at end of period (in dollars per share) | $ 60.03 |
Stockholders' Equity - Vesting
Stockholders' Equity - Vesting Schedule of the Total Non-Vested Shares of Restricted Stock Outstanding (Details) | Jun. 30, 2023 shares |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total non-vested shares (in shares) | 373,897 |
2023 (6 months) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total non-vested shares (in shares) | 27,360 |
2024 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total non-vested shares (in shares) | 116,368 |
2025 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total non-vested shares (in shares) | 84,253 |
2026 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total non-vested shares (in shares) | 62,300 |
2027 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total non-vested shares (in shares) | 83,616 |
Thereafter | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total non-vested shares (in shares) | 0 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Certain Information With Respect to the Performance Share Awards (Details) - Amended Long Term Incentive Plan - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Fair Value | $ 24,531 | |||
Expense | $ 1,637 | $ 444 | 3,274 | $ 1,908 |
Performance Shares | January 1, 2020 - December 31, 2022 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Fair Value | 4,882 | |||
Expense | 0 | (110) | 0 | 354 |
Performance Shares | January 1, 2021 - December 31, 2023 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Fair Value | 4,820 | |||
Expense | 402 | 133 | 804 | 589 |
Performance Shares | January 1, 2022 - December 31, 2024 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Fair Value | 5,789 | |||
Expense | 482 | 421 | 964 | 965 |
Performance Shares | January 1, 2023 - December 31, 2025 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Fair Value | 9,040 | |||
Expense | $ 753 | $ 0 | $ 1,506 | $ 0 |
Stockholders' Equity - Cash Div
Stockholders' Equity - Cash Dividends Paid or Payable Per Share (Details) - $ / shares | 3 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Equity [Abstract] | ||||
Dividend per share, common stock (in dollars per share) | $ 0.40 | $ 0.40 | $ 0.34 | $ 0.34 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Weighted average unvested restricted shares outstanding (in shares) | 374,514 | 295,247 | 374,251 | 299,433 |
Restricted stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Dilutive restricted stock awards outstanding securities not participate in losses (in shares) | 0 | 0 | 0 | 0 |
Performance shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Dilutive restricted stock awards outstanding securities not participate in losses (in shares) | 0 | 90,217 | 246,239 | 85,110 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Third-Party Seller - Subsequent Event $ in Millions | Aug. 01, 2023 USD ($) property |
Other Commitments | |
Number of properties (property) | property | 3 |
Payments to acquire real estate | $ | $ 67.4 |
Non-binding Letter of Intent | |
Other Commitments | |
Number of properties (property) | property | 1 |
Purchase price | $ | $ 27.5 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 3 Months Ended | ||||
Aug. 01, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Subsequent Event | |||||
Dividends per share, common stock (in dollars per share) | $ 0.40 | $ 0.40 | $ 0.34 | $ 0.34 | |
Subsequent Event | |||||
Subsequent Event | |||||
Dividends per share, common stock (in dollars per share) | $ 0.45 |