COVER PAGE
COVER PAGE - shares | 3 Months Ended | |
Mar. 31, 2020 | Jun. 01, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-07172 | |
Entity Registrant Name | BRT APARTMENTS CORP. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 13-2755856 | |
Entity Address, Address Line One | 60 Cutter Mill Road | |
Entity Address, City or Town | Great Neck | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11021 | |
City Area Code | 516 | |
Local Phone Number | 466-3100 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | BRT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 17,176,401 | |
Amendment Flag | false | |
Entity Central Index Key | 0000014846 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Real estate properties, net of accumulated depreciation and amortization of $25,655 and $24,094 | $ 168,451 | $ 169,689 |
Investments in unconsolidated joint ventures | 185,946 | 177,071 |
Real estate loan | 4,000 | 4,150 |
Cash and cash equivalents | 18,707 | 22,699 |
Restricted cash | 10,243 | 9,719 |
Other assets | 7,613 | 7,282 |
Total Assets | 394,960 | 390,610 |
Liabilities: | ||
Mortgages payable, net of deferred costs of $758 and $823 | 132,524 | 133,215 |
Junior subordinated notes, net of deferred costs of $332 and $337 | 37,068 | 37,063 |
Accounts payable and accrued liabilities | 22,642 | 20,772 |
Total Liabilities | 192,234 | 191,050 |
Commitments and contingencies | ||
Preferred shares, $.01 and $1 par value: | ||
Preferred shares $.01 par value 2,000 shares authorized, none outstanding | 0 | 0 |
Common stock, $.01 par value, 300,000 shares authorized, | ||
Common stock, $.01 par value, 300,000 shares authorized; 16,432 and 15,637 shares outstanding | 164 | 156 |
Additional paid-in capital | 244,222 | 232,331 |
Accumulated other comprehensive loss | (30) | (10) |
Accumulated deficit | (41,477) | (32,824) |
Total BRT Apartments Corp. stockholders’ equity | 202,879 | 199,653 |
Non-controlling interests | (153) | (93) |
Total Equity | 202,726 | 199,560 |
Total Liabilities and Equity | $ 394,960 | $ 390,610 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Real estate accumulated depreciation | $ 25,655 | $ 24,094 |
Deferred mortgage costs | $ 1,090 | $ 1,160 |
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred shares, authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred shares, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, outstanding (in shares) | 16,432,000 | 15,638,000 |
Mortgages payable | ||
Debt Instrument [Line Items] | ||
Deferred mortgage costs | $ 758 | $ 823 |
Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Deferred mortgage costs | 332 | 337 |
Credit Facility, Maturing 2021 | Revolving Credit Facility | Valley National Bank, Affiliate | ||
Debt Instrument [Line Items] | ||
Deferred mortgage costs | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues: | ||
Rental revenue | $ 6,745 | $ 6,886 |
Other income | 179 | 244 |
Total revenues | 6,924 | 7,130 |
Expenses: | ||
Real estate operating expenses - including $8 and $39 to related parties | 3,058 | 3,176 |
Interest expense | 1,860 | 1,946 |
General and administrative - including $226 and $181 to related parties | 3,367 | 2,544 |
Depreciation | 1,561 | 1,547 |
Total expenses | 9,846 | 9,213 |
Total revenues less total expenses | (2,922) | (2,083) |
Equity in loss of unconsolidated joint ventures | (1,815) | (2,068) |
Loss from continuing operations | (4,737) | (4,151) |
Income tax provision | 62 | 62 |
Net loss | (4,799) | (4,213) |
Net loss attributable to non-controlling interests | (32) | (34) |
Net loss attributable to common stockholders | $ (4,831) | $ (4,247) |
Weighted average number of shares of common stock outstanding: | ||
Basic (in shares) | 16,932,252 | 15,886,493 |
Diluted (in shares) | 16,932,252 | 15,886,493 |
Basic (in dollars per share) | $ (0.29) | $ (0.27) |
Diluted (in dollars per share) | $ (0.29) | $ (0.27) |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Related party - real estate operating expenses | $ 8 | $ 39 |
Related party - general and administrative | $ 226 | $ 181 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (4,799) | $ (4,213) |
Other comprehensive loss: | ||
Unrealized loss on derivative instruments | (23) | (9) |
Other comprehensive loss | (23) | (9) |
Comprehensive loss | (4,822) | (4,222) |
Comprehensive income attributable to non-controlling interests | (29) | (32) |
Comprehensive loss attributable to common stockholders | $ (4,851) | $ (4,254) |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Non-Controlling Interest |
Beginning balance at Dec. 31, 2018 | $ 203,819 | $ 150 | $ 223,373 | $ 9 | $ (20,044) | $ 331 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Distributions - Common Stock | (3,221) | (3,221) | ||||
Restricted stock vesting | 0 | 2 | (2) | |||
Compensation expense - restricted stock and restricted stock units | 365 | 365 | ||||
Distributions to non-controlling interests | (46) | (46) | ||||
Net income (loss) | (4,213) | (4,247) | 34 | |||
Other comprehensive income (loss) | (9) | (7) | (2) | |||
Comprehensive income (loss) | (4,222) | |||||
Ending balance at Mar. 31, 2019 | 196,695 | 152 | 223,736 | 2 | (27,512) | 317 |
Beginning balance at Dec. 31, 2019 | 199,560 | 156 | 232,331 | (10) | (32,824) | (93) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Distributions - Common Stock | (3,822) | (3,822) | ||||
Restricted stock vesting | 0 | 1 | (1) | |||
Compensation expense - restricted stock and restricted stock units | 438 | 438 | ||||
Distributions to non-controlling interests | (89) | (89) | ||||
Shares issued through equity offering program, net | 12,077 | 7 | 12,070 | |||
Shares repurchased | (616) | (616) | ||||
Net income (loss) | (4,799) | (4,831) | 32 | |||
Other comprehensive income (loss) | (23) | (20) | (3) | |||
Comprehensive income (loss) | (4,822) | |||||
Ending balance at Mar. 31, 2020 | $ 202,726 | $ 164 | $ 244,222 | $ (30) | $ (41,477) | $ (153) |
CONSOLIDATED STATEMENT OF EQU_2
CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (in dollars per share) | $ 0.22 | $ 0.20 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (4,799) | $ (4,213) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation | 1,561 | 1,547 |
Amortization of deferred financing costs | 70 | 73 |
Amortization of restricted stock and restricted stock units | 438 | 365 |
Equity in loss of unconsolidated joint ventures | 1,815 | 2,068 |
Increases and decreases from changes in other assets and liabilities: | ||
(Increase) decrease in deposits and escrows | (280) | 690 |
Increase in other assets | (51) | (1,918) |
Increase in accounts payable and accrued liabilities | 1,803 | 1,704 |
Net cash provided by operating activities | 557 | 316 |
Cash flows from investing activities: | ||
Collections from real estate loan | 150 | 150 |
Improvements to real estate properties | (323) | (390) |
Distributions from unconsolidated joint ventures | 3,010 | 4,101 |
Contributions to unconsolidated joint ventures | (13,700) | (12,287) |
Net cash used in investing activities | (10,863) | (8,426) |
Cash flows from financing activities: | ||
Mortgage principal payments | (756) | (775) |
Dividends paid | (3,778) | (3,181) |
Distributions to non-controlling interests | (89) | (46) |
Proceeds from the sale of common stock | 12,077 | 0 |
Repurchase of shares of common stock | (616) | 0 |
Net cash provided by (used in) financing activities | 6,838 | (4,002) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (3,468) | (12,112) |
Cash, cash equivalents and restricted cash at beginning of period | 32,418 | 31,719 |
Cash, cash equivalents and restricted cash at end of period | 28,950 | 19,607 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 1,810 | 1,863 |
Taxes paid | $ 10 | $ 10 |
Organization and Background
Organization and Background | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Background | Organization and Background BRT Apartments Corp. (the "Company"), a Maryland corporation, owns and operates multi-family properties. The Company conducts its operations to qualify as a real estate investment trust, or REIT, for federal income tax purposes. Generally, the multi-family properties are acquired with joint venture partners in transactions in which the Company contributes a significant portion of the equity. At March 31, 2020, the Company: (a) wholly owns eight multi-family properties located in six states with an aggregate of 1,880 units, and a carrying value of $158,224,000; and (b) has interests, through unconsolidated entities, in 31 multi-family properties located in nine states with an aggregate of 9,162 units (including 741 units at two properties currently in lease-up) and the carrying value of this net equity investment is $185,863,000. Most of the Company's properties are located in the Southeast United States and Texas. The Company also owns and operates various other real estate assets. At March 31, 2020, the carrying value of the other real estate assets was $14,310,000, including a real estate loan of $4,000,000 |
Basis of Preparation
Basis of Preparation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation | Basis of Preparation The accompanying interim unaudited consolidated financial statements as of March 31, 2020, and for the three months ended March 31, 2020 and 2019, reflect all normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the results for such interim periods. The results of operations for the three months ended March 31, 2020 and 2019, are not necessarily indicative of the results for the full year. The consolidated audited balance sheet as of December 31, 2019, has been derived from the audited financial statements at that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States ("GAAP"). Accordingly, these unaudited statements should be read in conjunction with the Company's audited financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission ("SEC") on May 15, 2020, for complete financial statements. The consolidated financial statements include the accounts and operations of the Company, its wholly owned subsidiaries. The joint venture that owns a property in Yonkers New York, was determined not to be a variable interest entity ("VIE") but is consolidated because the Company has controlling rights in such entity. With respect to its unconsolidated joint ventures, as (i) the Company is generally the managing member but does not exercise substantial operating control over these entities or the Company is not the managing member and (ii) such entities are not VIEs, the Company has determined that such joint ventures should be accounted for under the equity method of accounting for financial statement purposes. The distributions to each joint venture partner are determined pursuant to the applicable operating agreement and may not be pro-rata to the percentage equity interest each partner has in the applicable venture. The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results could differ from those estimates. Substantially all of the Company's assets are comprised of multi- family real estate assets generally leased to tenants on a one-year basis. Therefore, the Company aggregates real estate assets for reporting purposes and operates in one reportable segment. Certain items on the consolidated financial statements have been reclassified to conform with the current year's presentation. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Equity | Equity Equity Distribution Agreements In November 2019, the Company entered into equity distribution agreements, with three sales agents to sell up to an aggregate of $30,000,000 of its common stock from time-to-time in an at-the-market offering. During the quarter ended March 31, 2020, the Company sold 694,298 shares for an aggregate sales price of $12,293,000 before commissions and fees of $185,000 and offering related expenses of $31,000. From the commencement of this program through March 31, 2020, the Company sold 806,261 shares for an aggregate sales price of $14,316,000 before commissions and fees of $314,000 and offering related expenses of $56,000. Common Stock Dividend Distribution The Company declared quarterly cash distributions of $0.22 per share, payable on April 7, 2020 and July 9, 2020 to stockholders of record on March 24, 2020 and June 26, 2020, respectively. Stock Based Compensation During the first quarter of 2020 , the Company's board of directors adopted, subject to stockholder approval, the 2020 Incentive Plan-this plan permits the Company to grant: (i) stock options, restricted stock, restricted stock units, performance shares awards and any one or more of the foregoing, up to a maximum of 1,000,000 shares; and (ii) cash settled dividend equivalent rights in tandem with the grant of restricted stock units and certain performance based awards. The Company's 2018 Incentive Plan (the "2018 Plan") permits the Company to grant: (i) stock options, restricted stock, restricted stock units, performance share awards and any one or more of the foregoing, up to a maximum of 600,000 shares; and (ii) cash settled dividend equivalent rights in tandem with the grant of restricted stock units or certain performance based awards. Restricted Stock Units In June 2016, the Company issued restricted stock units (the "Units") to acquire up to 450,000 shares of common stock pursuant to the 2016 Amended and Restated Incentive Plan (the "2016 Incentive Plan"). The Units entitle the recipients, subject to continued service through the March 31, 2021 vesting date, to receive (i) the underlying shares if and to the extent certain performance and/or market conditions are satisfied at the vesting date, and (ii) an amount equal to the cash dividends paid from the grant date through the vesting date with respect to the shares of common stock underlying the Units if, when, and to the extent, the related Units vest. For financial statement purposes, because the Units are not participating securities, the shares underlying the Units are excluded in the outstanding shares reflected on the consolidated balance sheet and from the calculation of basic earnings per share. The shares underlying the Units are contingently issuable shares. Expense is recognized over the five Restricted Stock In January 2020, the Company granted 158,299 shares of restricted stock pursuant to the 2018 Incentive Plan. As of March 31, 2020 , an aggregate of 744,145 shares of unvested restricted stock are outstanding pursuant to the 2018 Incentive Plan, the 2016 Incentive Plan and the 2012 Incentive Plan. No additional awards may be granted under the 2016 Incentive Plan and the 2012 Incentive Plan. The shares of restricted stock vest five years from the date of grant and under specified circumstances, including a change in control, may vest earlier. For financial statement purposes, the restricted stock is not included in the outstanding shares shown on the consolidated balance sheets until they vest, but are included in the earnings per share computation. For the three months ended March 31, 2020 and 2019, the Company recorded $403,000 and $330,000, respectively, of compensation expense related to the amortization of unearned compensation with respect to the restricted stock awards. At March 31, 2020 and December 31, 2019 , $5,689,000 and $3,328,000 has been deferred as unearned compensation and will be charged to expense over the remaining vesting periods of these restricted stock awards. The weighted average remaining vesting period of these shares of restricted stock is 2.9 years. Stock Buyback On September 12, 2019, the Board of Directors approved a repurchase plan authorizing the Company, effective as of October 1, 2019, to repurchase up to $5,000,000 of shares of common stock through September 30, 2021. During the three months ended March 31, 2020, the Company repurchased 39,093 shares of common stock at an average market price of $15.76 for an aggregate cost of $616,000. During the three months ended March 31, 2019, the Company did not repurchase any shares. Per Share Data Basic earnings (loss) per share is determined by dividing net income (loss) applicable to common stockholders for the applicable period by the weighted average number of shares of common stock outstanding during such period. The Units are excluded from the basic earnings per share calculation, as they are not participating securities. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into shares of common stock or resulted in the issuance of shares of common stock that share in the earnings of the Company. Diluted earnings per share is determined by dividing net income applicable to common stockholders for the applicable period by the weighted average number of shares of common stock deemed to be outstanding during such period. In calculating diluted earnings per share, the Company, for the three months ended March 31, 2020 and the three months ended March 31, 2019, did not include any shares underlying the Units as their effect would have been anti-dilutive. The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except share amounts): Three Months Ended March 31, 2020 2019 Numerator for basic and diluted earnings (loss) per share attributable to common stockholders: Net loss attributable to common stockholders $ (4,831) $ (4,247) Denominator: Denominator for basic earnings per share—weighted average number of shares 16,932,252 15,886,493 Effect of diluted securities — — Denominator for diluted earnings per share—adjusted weighted average number of shares and assumed conversions 16,932,252 15,886,493 Basic loss per share $ (0.29) $ (0.27) Diluted loss per share $ (0.29) $ (0.27) |
Real Estate Properties
Real Estate Properties | 3 Months Ended |
Mar. 31, 2020 | |
Real Estate [Abstract] | |
Real Estate Properties | Real Estate Properties Real estate properties consist of the following (dollars in thousands): March 31, 2020 December 31, 2019 Land $ 29,227 $ 29,227 Building 154,854 154,854 Building improvements 10,025 9,702 Real estate properties 194,106 193,783 Accumulated depreciation (25,655) (24,094) Total real estate properties, net $ 168,451 $ 169,689 A summary of real estate properties owned is as follows (dollars in thousands): December 31, 2019 Additions Capitalized Costs and Improvements Depreciation Sales March 31, 2020 Multi-family $ 159,434 $ — $ 323 $ (1,534) $ — $ 158,223 Land - Daytona, FL 8,021 — — — — 8,021 Shopping centers/Retail - Yonkers, NY 2,234 — — (27) — 2,207 Total real estate properties $ 169,689 $ — $ 323 $ (1,561) $ — $ 168,451 |
Acquisitions and Dispositions
Acquisitions and Dispositions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Property Acquisitions The table below provides information regarding the Company's acquisition of a multi-family property, through an unconsolidated joint venture, during the three months ended March 31, 2020 (dollars in thousands): Location Purchase Date No. of Units Purchase Price Acquisition Mortgage Debt Initial BRT Equity Ownership Percentage Capitalized Acquisition Costs Wilmington, North Carolina 2/20/2020 264 $ 38,000 $ 23,160 $ 13,700 80 % $ 459 The table below provides information regarding the Company's acquisition of a multi - family property,through an unconsolidated joint venture, during the three months ended March 31, 2019 (dollars in thousands): Location Purchase Date No. of Units Purchase Price Acquisition Mortgage Debt Initial BRT Equity Ownership Percentage Capitalized Acquisition Costs Kannapolis, North Carolina 3/12/2019 312 $ 48,065 $ 33,347 $ 11,231 65 % $ 559 Property Dispositions The Company did not dispose of any real estate properties during the three months ended March 31, 2020 and 2019. Impairment Charges The Company reviews each real estate asset owned, including those held through investments in unconsolidated joint ventures, for impairment when there is an event or a change in circumstances indicating that the carrying amount may not be recoverable. The Company measures and records impairment losses, and reduces the carrying value of properties, when indicators of impairment are present and the expected undiscounted cash flows related to those properties are less than their carrying amounts. In cases where the Company does not expect to recover its carrying costs on properties held for use, the Company reduces its carrying costs to fair value, and for properties held for sale, the Company reduces its carrying value to the fair value less costs to sell. During the three months ended March 31, 2020 and 2019, no impairment charges were recorded. |
Restricted Cash
Restricted Cash | 3 Months Ended |
Mar. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | Restricted CashRestricted cash represents funds held for specific purposes and are therefore not available for general corporate purposes. The restricted cash reflected on the consolidated balance sheets represents funds that are held by or on behalf of the Company specifically for capital improvements at certain multi-family properties. |
Investment in Unconsolidated Ve
Investment in Unconsolidated Ventures | 3 Months Ended |
Mar. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Ventures | Investment in Unconsolidated Ventures At March 31, 2020 and December 31, 2019, the Company owns interests in unconsolidated joint ventures that own 31 and 30 multi-family properties, respectively (the "Unconsolidated Properties"). The condensed balance sheets below present information regarding such properties (dollars in thousands): March 31, 2020 December 31, 2019 ASSETS Real estate properties, net of accumulated depreciation of $114,358 and $104,001 $ 1,102,025 $ 1,070,941 Cash and cash equivalents 12,717 12,804 Deposits and escrows 20,061 23,912 Other assets 4,791 4,136 Total Assets $ 1,139,594 $ 1,111,793 LIABILITIES AND EQUITY Liabilities: Mortgages payable, net of deferred costs of $5,847 and $5,839 $ 826,646 $ 803,289 Accounts payable and accrued liabilities 15,438 19,731 Total Liabilities 842,084 823,020 Commitments and contingencies Equity: Total unconsolidated joint venture equity 297,510 288,773 Total Liabilities and Equity $ 1,139,594 $ 1,111,793 Company equity interest of joint venture equity $ 185,946 $ 177,071 Real estate properties of our unconsolidated joint ventures consist of the following (dollars in thousands): March 31, 2020 December 31, 2019 Land $ 148,341 $ 144,136 Building 1,028,861 993,643 Building improvements 39,181 37,163 Real estate properties 1,216,383 1,174,942 Accumulated depreciation (114,358) (104,001) Total real estate properties, net $ 1,102,025 $ 1,070,941 At March 31, 2020, the weighted average interest rate on the mortgages payable is 4.06% and the weighted average remaining term to maturity is 7.9 years. The condensed income statement below presents information regarding the Unconsolidated Properties (dollars in thousands): Three Months Ended 2020 2019 Revenues: Rental and other revenue $ 30,843 $ 26,827 Total revenues 30,843 26,827 Expenses: Real estate operating expenses 14,532 13,096 Interest expense 8,757 7,906 Depreciation 10,357 9,189 Total expenses 33,646 30,191 Total revenues less total expenses (2,803) (3,364) Net income from joint ventures $ (2,803) $ (3,364) BRT equity in loss from joint ventures $ (1,815) $ (2,068) |
Debt Obligations
Debt Obligations | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt Obligations Debt obligations consist of the following (dollars in thousands): March 31, 2020 December 31, 2019 Mortgages payable $ 133,282 $ 134,038 Junior subordinated notes 37,400 37,400 Deferred financing costs (1,090) (1,160) Total debt obligations, net of deferred costs $ 169,592 $ 170,278 Mortgages Payable The weighted average interest rate on the Company's mortgage debt at March 31, 2020 was 4.15%. For the three months ended March 31, 2020 and 2019 interest expense, which includes amortization of deferred fees, was $1,475,000 and $1,500,000, respectively. Credit Facility The Company entered into a credit facility dated April 18, 2019, as amended from time-to-time, with an affiliate of Valley National Bank. The facility allows the Company to borrow, subject to compliance with borrowing base requirements and other conditions, up to $10,000,000 to facilitate the acquisition of multi-family properties and for working capital (including dividend payments) and operating expenses. The facility is secured by the cash available in certain cash accounts maintained by the Company at Valley National Bank, matures April 2021 and bears an adjustable interest rate of 50 basis points over the prime rate, with a floor of 5%. The interest rate in effect as of March 31, 2020 is 5%. There is an unused facility fee of 0.25% per annum on the difference between the outstanding loan balance and maximum amount then available under the facility. On May 21, 2020, the Company borrowed $5,000,000 for working capital and operating expense purposes. At March 31, 2020, there was no outstanding balance on the facility. At June 1, 2020, the outstanding balance on the credit facility was $5,000,000. Junior Subordinated Notes At March 31, 2020 and December 31, 2019, the Company's junior subordinated notes had an outstanding principal balance of $37,400,000, before deferred financing costs of $332,000 and $337,000, respectively. At March 31, 2020, the interest rate on the outstanding balance is three month LIBOR + 2.00% or 3.77%. The interest rate in effect for the next payment period (April 30 - July 30, 2020) is 2.76% The junior subordinated notes require interest - only payments through the maturity date of April 30, 2036, at which time repayment of the outstanding principal and unpaid interest become due. Interest expense for the three months ended March 31, 2020 and 2019, which includes amortization of deferred costs, was $370,000 and $449,000, respectively. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company has retained certain of its executive officers and Fredric H. Gould, a director, among other things, to participate in the Company's multi-family property analysis and approval process (which includes service on an investment committee); provide investment advice; and provide long-term planning and consulting with executives and employees with respect to other business matters, as required. The aggregate fees incurred and paid for these services in the three months ended March 31, 2020 and 2019 were $350,000 and $333,000, respectively. Management of certain properties owned by the Company and certain joint venture properties is provided by Majestic Property Management Corp. ("Majestic Property"), a company wholly owned by Fredric H. Gould. Certain of the Company's officers and directors are also officers and directors of Majestic Property. Majestic Property may also provide real estate brokerage and construction supervision services to these properties. These fees amounted to $8,000 and $8,000 for the three months ended March 31, 2020 and 2019, respectively. The Company shares facilities, personnel and other resources with One Liberty Properties, Inc., Majestic Property, and Gould Investors L.P. Certain of the Company's executive officers and/or directors also serve in management positions, and have ownership interests, in One Liberty, Majestic Property and/or Georgetown Partners Inc., the managing general partner of Gould Investors. The allocation of expenses for the facilities, personnel and other resources shared by the Company, One Liberty, Majestic Property and Gould Investors is computed in accordance with a shared services agreement by and among the Company and these entities and is included in general and administrative expense on the consolidated statements of operations. For the three months ended March 31, 2020 and 2019, net allocated general and administrative expenses reimbursed by the Company to Gould Investors pursuant to the shared services agreement aggregated $226,000 and $142,000, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial Instruments Not Carried at Fair Value The following methods and assumptions were used to estimate the fair value of each class of financial instruments that are not recorded at fair value on the consolidated balance sheets: Cash and cash equivalents, restricted cash, accounts receivable (included in other assets), accounts payable and accrued liabilities: The carrying amounts reported in the balance sheets for these instruments approximate their fair value due to the short term nature of these accounts. Junior subordinated notes: At March 31, 2020 and December 31, 2019, the estimated fair value of the notes is lower their carrying value by approximately $9,915,000 and $9,589,000, respectively, based on a market interest rate of 5.95% and 6.41%, respectively. Credit facility: At March 31, 2020, and December 31, 2019, the estimated fair value of the credit facility is equal to its carrying value. Mortgages payable: At March 31, 2020, the estimated fair value of the Company’s mortgages payable is greater than their carrying value by approximately $6,504,000, assuming market interest rates between 2.70% and 3.05% and at December 31, 2019, the estimated fair value of the Company's mortgages payable was lower than their carrying value by approximately $321,000 assuming market interest rates between 3.89% and 4.33%. Market interest rates were determined using rates which the Company believes reflects institutional lender yield requirements at the balance sheet dates. Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value assumptions. Financial Instruments Carried at Fair Value The Company’s fair value measurements are based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, there is a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. Level 1 assets/liabilities are valued based on quoted prices for identical instruments in active markets, Level 2 assets/liabilities are valued based on quoted prices in active markets for similar instruments, on quoted prices in less active or inactive markets, or on other “observable” market inputs, and Level 3 assets/liabilities are valued based significantly on “unobservable” market inputs. The Company does not currently own any financial instruments that are classified as Level 3. Set forth below is information regarding the Company’s financial assets and liabilities measured at fair value as of March 31, 2020 (dollars in thousands): Carrying and Fair Value Fair Value Measurements Using Fair Value Hierarchy Level 1 Level 2 Financial Liabilities: Interest rate swap $ 35 — $ 35 Derivative financial instruments: Fair values are approximated using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivatives. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, foreign exchange rates, and implied volatilities. At March 31, 2020, these derivatives are included in other liabilities on the consolidated balance sheet. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with them utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. As of March 31, 2020, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative position and determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company determined that its derivatives valuation is classified in Level 2 of the fair value hierarchy. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Cash Flow Hedges of Interest Rate Risk The Company's objective in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated Other Comprehensive Income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. As of March 31, 2020, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollars in thousands): Interest Rate Derivative Current Notional Amount Fixed Rate Maturity Interest rate swap $ 1,138 5.25 % April 1, 2022 Non-designated Derivatives Derivatives not designated as hedges are not speculative and are used to manage the Company's exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. At March 31, 2020, the Company did not have any outstanding derivatives that were not designated as hedges in qualifying hedging relationships. The table below presents the fair value of the Company’s derivative financial instruments as well as its classification on the consolidated balance sheets as of the dates indicated (dollars in thousands): Derivatives as of: March 31, 2020 December 31, 2019 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Other Assets $ — Other Assets $ — Accounts payable and accrued liabilities $ 35 Accounts payable and accrued liabilities $ 12 The following table presents the effect of the Company’s interest rate swaps on the consolidated statements of comprehensive (loss) income for the dates indicated (dollars in thousands): Three Months Ended 2020 2019 Amount of (loss) gain recognized on derivative in Other Comprehensive Income $ (24) $ (9) Amount of (loss) gain reclassified from Accumulated Other Comprehensive Income into Interest expense $ (1) $ 1 Total amount of Interest expense presented in the Consolidated Statement of Operations $ 1,860 $ 1,946 The Company estimates an additional $19,000 will be reclassified from other comprehensive loss as a decrease to interest expense over the next twelve months. Credit-risk-related Contingent Features The agreement between the Company and its derivative counterparties provides that if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, the Company could be declared in default on its derivative obligations. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases . ASU 2016-02 supersedes the current accounting for leases and while retaining two distinct types of leases, finance and operating, and requires lessees to recognize most leases on their balance sheets and makes targeted changes to lessor accounting. Further, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. This amendment provides a new practical expedient that allows lessors, by class of underlying asset, to avoid separating lease and associated non-lease components within a contract if the following criteria are met: (i) the timing and pattern of transfer for the non-lease component and the associated lease component are the same, and (ii) the stand-alone lease component would be classified as an operating lease if accounted for separately. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and early adoption is permitted. The Company adopted this standard effective January 1, 2019, and its adoption did not have a material effect on the consolidated financial statements. As a lessor, the adoption of ASU 2016-02 (as amended by subsequent ASUs) did not change the timing of revenue recognition of the Company’s rental revenues. As a lessee, the Company is party to a ground lease, and an operating lease with future payment obligations for which the Company recorded right-of-use assets and lease liabilities at the present value of the remaining minimum rental payments upon adoption of this standard. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities . The update better aligns a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. The Company adopted this standard effective January 1, 2019. The adoption of this guidance did not have a material effect on the consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This update provides specific guidance for transactions for acquiring goods and services from nonemployees and specifies that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (i) financing to the issuer or (ii) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC Topic 606, Revenue from Contracts with Customers. The Company adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material effect on the consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement , which removes, modifies, and adds certain disclosure requirements related to fair value measurements in ASC Topic 820. This guidance is effective for public companies in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material effect on the consolidated financial statements. In October 2018, the FASB issued ASU 2018-16, (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) as a Benchmark Interest Rate for Hedging Purposes . The amendments in this update permit the OIS rate based on SOFR as an eligible benchmark interest rate. The amendments in this update are effective for fiscal years beginning after December 15, 2018. The Company adopted this guidance on January 1, 2019. The Company does not believe this guidance will have a material effect on its consolidated financial statements. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent events have been evaluated and any significant events, relative to our consolidated financial statements as of March 31, 2020, that warrant additional disclosure, have been included in the notes to the consolidated financial statements. The Company is presented with the risks presented by the novel coronavirus or COVID-19, which has spread and may continue to spread, to markets in which it operates. The ultimate extent of the impact of the pandemic on the Company’s business, financial condition, liquidity, results of operations and prospects will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration, the severity of, and the actions taken to |
Basis of Preparation (Policies)
Basis of Preparation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation | The accompanying interim unaudited consolidated financial statements as of March 31, 2020, and for the three |
Consolidated Financial Statements and Variable Interest Entities | The consolidated financial statements include the accounts and operations of the Company, its wholly owned subsidiaries. The joint venture that owns a property in Yonkers New York, was determined not to be a variable interest entity ("VIE") but is consolidated because the Company has controlling rights in such entity. With respect to its unconsolidated joint ventures, as (i) the Company is generally the managing member but does not exercise substantial operating control over these entities or the Company is not the managing member and (ii) such entities are not VIEs, the Company has determined that such joint ventures should be accounted for under the equity method of accounting for financial statement purposes. The distributions to each joint venture partner are determined pursuant to the applicable operating agreement and may not be pro-rata |
Use of Estimates | The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results could differ from those estimates. Substantially all of the Company's assets are comprised of multi- family real estate assets generally leased to tenants on a one-year basis. Therefore, the Company aggregates real estate assets for reporting purposes and operates in one reportable segment. |
Financial Instruments Carried at Fair Value | Financial Instruments Carried at Fair Value The Company’s fair value measurements are based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, there is a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. Level 1 assets/liabilities are valued based on quoted prices for identical instruments in active markets, Level 2 assets/liabilities are valued based on quoted prices in active markets for similar instruments, on quoted prices in less active or inactive markets, or on other “observable” market inputs, and Level 3 assets/liabilities are valued based significantly on “unobservable” market inputs. |
New Accounting Pronouncements | New Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases . ASU 2016-02 supersedes the current accounting for leases and while retaining two distinct types of leases, finance and operating, and requires lessees to recognize most leases on their balance sheets and makes targeted changes to lessor accounting. Further, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. This amendment provides a new practical expedient that allows lessors, by class of underlying asset, to avoid separating lease and associated non-lease components within a contract if the following criteria are met: (i) the timing and pattern of transfer for the non-lease component and the associated lease component are the same, and (ii) the stand-alone lease component would be classified as an operating lease if accounted for separately. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and early adoption is permitted. The Company adopted this standard effective January 1, 2019, and its adoption did not have a material effect on the consolidated financial statements. As a lessor, the adoption of ASU 2016-02 (as amended by subsequent ASUs) did not change the timing of revenue recognition of the Company’s rental revenues. As a lessee, the Company is party to a ground lease, and an operating lease with future payment obligations for which the Company recorded right-of-use assets and lease liabilities at the present value of the remaining minimum rental payments upon adoption of this standard. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities . The update better aligns a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. The Company adopted this standard effective January 1, 2019. The adoption of this guidance did not have a material effect on the consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This update provides specific guidance for transactions for acquiring goods and services from nonemployees and specifies that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (i) financing to the issuer or (ii) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC Topic 606, Revenue from Contracts with Customers. The Company adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material effect on the consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement , which removes, modifies, and adds certain disclosure requirements related to fair value measurements in ASC Topic 820. This guidance is effective for public companies in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material effect on the consolidated financial statements. In October 2018, the FASB issued ASU 2018-16, (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) as a Benchmark Interest Rate for Hedging Purposes . The amendments in this update permit the OIS rate based on SOFR as an eligible benchmark interest rate. The amendments in this update are effective for fiscal years beginning after December 15, 2018. The Company adopted this guidance on January 1, 2019. The Company does not believe this guidance will have a material effect on its consolidated financial statements. |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except share amounts): Three Months Ended March 31, 2020 2019 Numerator for basic and diluted earnings (loss) per share attributable to common stockholders: Net loss attributable to common stockholders $ (4,831) $ (4,247) Denominator: Denominator for basic earnings per share—weighted average number of shares 16,932,252 15,886,493 Effect of diluted securities — — Denominator for diluted earnings per share—adjusted weighted average number of shares and assumed conversions 16,932,252 15,886,493 Basic loss per share $ (0.29) $ (0.27) Diluted loss per share $ (0.29) $ (0.27) |
Real Estate Properties (Tables)
Real Estate Properties (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Real Estate [Abstract] | |
Summary of real estate properties owned | Real estate properties consist of the following (dollars in thousands): March 31, 2020 December 31, 2019 Land $ 29,227 $ 29,227 Building 154,854 154,854 Building improvements 10,025 9,702 Real estate properties 194,106 193,783 Accumulated depreciation (25,655) (24,094) Total real estate properties, net $ 168,451 $ 169,689 A summary of real estate properties owned is as follows (dollars in thousands): December 31, 2019 Additions Capitalized Costs and Improvements Depreciation Sales March 31, 2020 Multi-family $ 159,434 $ — $ 323 $ (1,534) $ — $ 158,223 Land - Daytona, FL 8,021 — — — — 8,021 Shopping centers/Retail - Yonkers, NY 2,234 — — (27) — 2,207 Total real estate properties $ 169,689 $ — $ 323 $ (1,561) $ — $ 168,451 Real estate properties of our unconsolidated joint ventures consist of the following (dollars in thousands): March 31, 2020 December 31, 2019 Land $ 148,341 $ 144,136 Building 1,028,861 993,643 Building improvements 39,181 37,163 Real estate properties 1,216,383 1,174,942 Accumulated depreciation (114,358) (104,001) Total real estate properties, net $ 1,102,025 $ 1,070,941 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of real estate acquisitions | The table below provides information regarding the Company's acquisition of a multi-family property, through an unconsolidated joint venture, during the three months ended March 31, 2020 (dollars in thousands): Location Purchase Date No. of Units Purchase Price Acquisition Mortgage Debt Initial BRT Equity Ownership Percentage Capitalized Acquisition Costs Wilmington, North Carolina 2/20/2020 264 $ 38,000 $ 23,160 $ 13,700 80 % $ 459 The table below provides information regarding the Company's acquisition of a multi - family property,through an unconsolidated joint venture, during the three months ended March 31, 2019 (dollars in thousands): Location Purchase Date No. of Units Purchase Price Acquisition Mortgage Debt Initial BRT Equity Ownership Percentage Capitalized Acquisition Costs Kannapolis, North Carolina 3/12/2019 312 $ 48,065 $ 33,347 $ 11,231 65 % $ 559 |
Investment in Unconsolidated _2
Investment in Unconsolidated Ventures (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The condensed balance sheets below present information regarding such properties (dollars in thousands): March 31, 2020 December 31, 2019 ASSETS Real estate properties, net of accumulated depreciation of $114,358 and $104,001 $ 1,102,025 $ 1,070,941 Cash and cash equivalents 12,717 12,804 Deposits and escrows 20,061 23,912 Other assets 4,791 4,136 Total Assets $ 1,139,594 $ 1,111,793 LIABILITIES AND EQUITY Liabilities: Mortgages payable, net of deferred costs of $5,847 and $5,839 $ 826,646 $ 803,289 Accounts payable and accrued liabilities 15,438 19,731 Total Liabilities 842,084 823,020 Commitments and contingencies Equity: Total unconsolidated joint venture equity 297,510 288,773 Total Liabilities and Equity $ 1,139,594 $ 1,111,793 Company equity interest of joint venture equity $ 185,946 $ 177,071 The condensed income statement below presents information regarding the Unconsolidated Properties (dollars in thousands): Three Months Ended 2020 2019 Revenues: Rental and other revenue $ 30,843 $ 26,827 Total revenues 30,843 26,827 Expenses: Real estate operating expenses 14,532 13,096 Interest expense 8,757 7,906 Depreciation 10,357 9,189 Total expenses 33,646 30,191 Total revenues less total expenses (2,803) (3,364) Net income from joint ventures $ (2,803) $ (3,364) BRT equity in loss from joint ventures $ (1,815) $ (2,068) |
Summary of real estate properties owned | Real estate properties consist of the following (dollars in thousands): March 31, 2020 December 31, 2019 Land $ 29,227 $ 29,227 Building 154,854 154,854 Building improvements 10,025 9,702 Real estate properties 194,106 193,783 Accumulated depreciation (25,655) (24,094) Total real estate properties, net $ 168,451 $ 169,689 A summary of real estate properties owned is as follows (dollars in thousands): December 31, 2019 Additions Capitalized Costs and Improvements Depreciation Sales March 31, 2020 Multi-family $ 159,434 $ — $ 323 $ (1,534) $ — $ 158,223 Land - Daytona, FL 8,021 — — — — 8,021 Shopping centers/Retail - Yonkers, NY 2,234 — — (27) — 2,207 Total real estate properties $ 169,689 $ — $ 323 $ (1,561) $ — $ 168,451 Real estate properties of our unconsolidated joint ventures consist of the following (dollars in thousands): March 31, 2020 December 31, 2019 Land $ 148,341 $ 144,136 Building 1,028,861 993,643 Building improvements 39,181 37,163 Real estate properties 1,216,383 1,174,942 Accumulated depreciation (114,358) (104,001) Total real estate properties, net $ 1,102,025 $ 1,070,941 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt obligations | Debt obligations consist of the following (dollars in thousands): March 31, 2020 December 31, 2019 Mortgages payable $ 133,282 $ 134,038 Junior subordinated notes 37,400 37,400 Deferred financing costs (1,090) (1,160) Total debt obligations, net of deferred costs $ 169,592 $ 170,278 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets measured at fair value | Set forth below is information regarding the Company’s financial assets and liabilities measured at fair value as of March 31, 2020 (dollars in thousands): Carrying and Fair Value Fair Value Measurements Using Fair Value Hierarchy Level 1 Level 2 Financial Liabilities: Interest rate swap $ 35 — $ 35 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of outstanding interest rate derivatives | As of March 31, 2020, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollars in thousands): Interest Rate Derivative Current Notional Amount Fixed Rate Maturity Interest rate swap $ 1,138 5.25 % April 1, 2022 |
Schedule of fair value of derivative financial instruments and classification on consolidated balance sheets | The table below presents the fair value of the Company’s derivative financial instruments as well as its classification on the consolidated balance sheets as of the dates indicated (dollars in thousands): Derivatives as of: March 31, 2020 December 31, 2019 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Other Assets $ — Other Assets $ — Accounts payable and accrued liabilities $ 35 Accounts payable and accrued liabilities $ 12 |
Schedule of effect of derivative financial instrument on consolidated statements of comprehensive (loss) income | The following table presents the effect of the Company’s interest rate swaps on the consolidated statements of comprehensive (loss) income for the dates indicated (dollars in thousands): Three Months Ended 2020 2019 Amount of (loss) gain recognized on derivative in Other Comprehensive Income $ (24) $ (9) Amount of (loss) gain reclassified from Accumulated Other Comprehensive Income into Interest expense $ (1) $ 1 Total amount of Interest expense presented in the Consolidated Statement of Operations $ 1,860 $ 1,946 |
Organization and Background (De
Organization and Background (Details) $ in Thousands | Mar. 31, 2020USD ($)property_Unitproperty_unitinvestmentstateproperty | Dec. 31, 2019USD ($)property |
Real Estate Properties [Line Items] | ||
Number of properties | property | 8 | |
Number of states | state | 6 | |
Number of units | property_Unit | 1,880 | |
Carry value of investment property | $ 168,451 | $ 169,689 |
Investments in unconsolidated joint ventures | 185,946 | $ 177,071 |
Real estate investments, other | 14,310 | |
Mortgage loans on real estate | 4,000 | |
Multi-family | ||
Real Estate Properties [Line Items] | ||
Carry value of investment property | $ 158,224 | |
Unconsolidated joint ventures | ||
Real Estate Properties [Line Items] | ||
Number of properties | property | 31 | 30 |
Number of states | state | 9 | |
Number of units | property_Unit | 9,162 | |
Carry value of investment property | $ 1,102,025 | $ 1,070,941 |
Number of investments | investment | 31 | |
Number of units in properties in lease up stage | property_Unit | 741 | |
Number of properties in real estate property, in lease up stage | property_unit | 2 | |
Investments in unconsolidated joint ventures | $ 185,863 |
Basis of Preparation (Details)
Basis of Preparation (Details) | 3 Months Ended |
Mar. 31, 2020numberOfRefinancings | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Equity - Narrative (Details)
Equity - Narrative (Details) | Jul. 09, 2020$ / shares | Apr. 07, 2020$ / shares | Jan. 31, 2020shares | Jun. 30, 2016shares | Mar. 31, 2020USD ($)$ / sharesshares | Mar. 31, 2019USD ($)shares | Mar. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Nov. 30, 2019USD ($)numberOfAgents | Sep. 12, 2019USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Repurchases of common stock | $ 616,000 | $ 0 | ||||||||
Effect of diluted securities (in shares) | shares | 0 | 0 | ||||||||
New Share Repurchase Program | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Beneficial interest purchased authorized amount | $ 5,000,000 | |||||||||
Shares repurchased (in shares) | shares | 39,093 | |||||||||
Average market price of shares repurchased (in dollars per share) | $ / shares | $ 15.76 | |||||||||
Repurchases of common stock | $ 616,000 | |||||||||
Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Compensation expense | 35,000 | $ 35,000 | ||||||||
Deferred unearned compensation | 142,000 | $ 142,000 | $ 177,000 | |||||||
Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Compensation expense | 403,000 | $ 330,000 | ||||||||
Deferred unearned compensation | $ 5,689,000 | $ 5,689,000 | $ 3,328,000 | |||||||
Remaining weighted average vesting period | 2 years 10 months 24 days | |||||||||
Incentive Plan 2020 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares authorized (in shares) | shares | 1,000,000 | 1,000,000 | ||||||||
Incentive Plan 2018 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares authorized (in shares) | shares | 600,000 | 600,000 | ||||||||
Incentive Plan 2018 | Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Issued (in shares) | shares | 158,299 | |||||||||
Shares outstanding (in shares) | shares | 744,145 | 744,145 | ||||||||
Incentive Plan 2016 | Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Issued (in shares) | shares | 450,000 | |||||||||
Vesting period for shares issued | 5 years | |||||||||
Incentive Plan 2016 | Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period for shares issued | 5 years | |||||||||
Prior Plan | Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of additional awards available for grant (in shares) | shares | 0 | 0 | ||||||||
Subsequent Event | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Dividends declared per share (in dollars per share) | $ / shares | $ 0.22 | $ 0.22 | ||||||||
Private placement | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of agents | numberOfAgents | 3 | |||||||||
Common stock issued in offering | $ 30,000,000 | |||||||||
Shares sold in offering (in shares) | shares | 694,298 | 806,261 | ||||||||
Payments for commissions | $ 185,000 | $ 314,000 | ||||||||
Payments of offering related expenses | 31,000 | 56,000 | ||||||||
Aggregate sales price | $ 12,293,000 | $ 14,316,000 |
Equity - Schedule of Computatio
Equity - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator for basic and diluted earnings (loss) per share attributable to common stockholders: | ||
Net loss attributable to common stockholders | $ (4,831) | $ (4,247) |
Denominator: | ||
Denominator for basic earnings per share—weighted average number of shares (in shares) | 16,932,252 | 15,886,493 |
Effect of diluted securities (in shares) | 0 | 0 |
Denominator for diluted earnings per share—adjusted weighted average number of shares and assumed conversions (in shares) | 16,932,252 | 15,886,493 |
Basic earnings (loss) per share (in dollars per share) | $ (0.29) | $ (0.27) |
Diluted earnings (loss) per share (in dollars per share) | $ (0.29) | $ (0.27) |
Real Estate Properties - Schedu
Real Estate Properties - Schedule of Real Estate Properties (Including Properties Held For Sale) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Real Estate [Abstract] | ||
Land | $ 29,227 | $ 29,227 |
Building | 154,854 | 154,854 |
Building improvements | 10,025 | 9,702 |
Real estate properties | 194,106 | 193,783 |
Accumulated depreciation | (25,655) | (24,094) |
Total real estate properties, net | $ 168,451 | $ 169,689 |
Real Estate Properties - Summar
Real Estate Properties - Summary of Real Estate Properties Owned (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |
Real estate properties, beginning balance | $ 169,689 |
Additions | 0 |
Capitalized Costs and Improvements | 323 |
Depreciation | (1,561) |
Real estate properties, ending balance | 168,451 |
Real Estate | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |
Sales | 0 |
Multi-family | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |
Real estate properties, beginning balance | 159,434 |
Additions | 0 |
Capitalized Costs and Improvements | 323 |
Depreciation | (1,534) |
Real estate properties, ending balance | 158,223 |
Multi-family | Real Estate | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |
Sales | 0 |
Land - Daytona, FL | Daytona, FL | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |
Real estate properties, beginning balance | 8,021 |
Additions | 0 |
Capitalized Costs and Improvements | 0 |
Depreciation | 0 |
Real estate properties, ending balance | 8,021 |
Land - Daytona, FL | Daytona, FL | Real Estate | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |
Sales | 0 |
Shopping centers/Retail - Yonkers, NY | RBHTRB Newark Holdings LLC | Yonkers, NY | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |
Real estate properties, beginning balance | 2,234 |
Additions | 0 |
Capitalized Costs and Improvements | 0 |
Depreciation | (27) |
Real estate properties, ending balance | 2,207 |
Shopping centers/Retail - Yonkers, NY | RBHTRB Newark Holdings LLC | Yonkers, NY | Real Estate | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |
Sales | $ 0 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Property Acquisitions (Details) | 3 Months Ended | |
Mar. 31, 2020USD ($)property_Unitproperty | Mar. 31, 2019USD ($)property | |
Business Acquisition [Line Items] | ||
No. of Units | property_Unit | 1,880 | |
Property Acquisition | VIE | Multi-family | Corporate Joint Venture | Wilmington, North Carolina | ||
Business Acquisition [Line Items] | ||
No. of Units | property | 264 | |
Purchase Price | $ 38,000,000 | |
Initial BRT Equity | $ 13,700,000 | |
Ownership Percentage | 80.00% | |
Capitalized Acquisition Costs | $ 459,000 | |
Property Acquisition | VIE | Multi-family | Corporate Joint Venture | Kannapolis, North Carolina | ||
Business Acquisition [Line Items] | ||
No. of Units | property | 312 | |
Purchase Price | $ 48,065,000 | |
Initial BRT Equity | $ 11,231,000 | |
Ownership Percentage | 65.00% | |
Capitalized Acquisition Costs | $ 559,000 | |
Property Acquisition | VIE | Multi-family | Corporate Joint Venture | Mortgages payable | Wilmington, North Carolina | ||
Business Acquisition [Line Items] | ||
Acquisition Mortgage Debt | $ 23,160,000 | |
Property Acquisition | VIE | Multi-family | Corporate Joint Venture | Mortgages payable | Kannapolis, North Carolina | ||
Business Acquisition [Line Items] | ||
Acquisition Mortgage Debt | $ 33,347,000 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Impairment Charges (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Business Combinations [Abstract] | ||
Impairment charges | $ 0 | $ 0 |
Investment in Unconsolidated _3
Investment in Unconsolidated Ventures - Narrative (Details) - property | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||
Number of properties | 8 | |
Unconsolidated joint ventures | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of properties | 31 | 30 |
Weighted average interest rate (as a percent) | 4.06% | |
Weighted average remaining term to maturity | 7 years 10 months 24 days |
Investment in Unconsolidated _4
Investment in Unconsolidated Ventures - Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Carry value of investment property | $ 168,451 | $ 169,689 |
Cash and cash equivalents | 18,707 | 22,699 |
Other assets | 7,613 | 7,282 |
Total Assets | 394,960 | 390,610 |
Liabilities: | ||
Mortgages payable | 132,524 | 133,215 |
Accounts payable and accrued liabilities | 22,642 | 20,772 |
Total Liabilities | 192,234 | 191,050 |
Commitments and contingencies | ||
Equity [Abstract] | ||
Total unconsolidated joint venture equity | 202,879 | 199,653 |
Total Liabilities and Equity | 394,960 | 390,610 |
Deferred mortgage costs | 1,090 | 1,160 |
Mortgages payable | ||
Equity [Abstract] | ||
Deferred mortgage costs | 758 | 823 |
Unconsolidated joint ventures | ||
ASSETS | ||
Carry value of investment property | 1,102,025 | 1,070,941 |
Cash and cash equivalents | 12,717 | 12,804 |
Deposits and escrows | 20,061 | 23,912 |
Other assets | 4,791 | 4,136 |
Total Assets | 1,139,594 | 1,111,793 |
Liabilities: | ||
Mortgages payable | 826,646 | 803,289 |
Accounts payable and accrued liabilities | 15,438 | 19,731 |
Total Liabilities | 842,084 | 823,020 |
Equity [Abstract] | ||
Total unconsolidated joint venture equity | 297,510 | 288,773 |
Total Liabilities and Equity | 1,139,594 | 1,111,793 |
Investment in unconsolidated joint ventures | 185,946 | 177,071 |
Real estate properties, net of accumulated depreciation | 114,358 | 104,001 |
Unconsolidated joint ventures | Mortgages payable | ||
Equity [Abstract] | ||
Deferred mortgage costs | $ 5,847 | $ 5,839 |
Investments, Equity Method and
Investments, Equity Method and Joint Ventures - Summary of Real Estate Properties Owned (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Land | $ 29,227 | $ 29,227 |
Building | 154,854 | 154,854 |
Building improvements | 10,025 | 9,702 |
Real estate properties | 194,106 | 193,783 |
Accumulated depreciation | (25,655) | (24,094) |
Total real estate properties, net | 168,451 | 169,689 |
Unconsolidated joint ventures | ||
Schedule of Equity Method Investments [Line Items] | ||
Land | 148,341 | 144,136 |
Building | 1,028,861 | 993,643 |
Building improvements | 39,181 | 37,163 |
Real estate properties | 1,216,383 | 1,174,942 |
Accumulated depreciation | (114,358) | (104,001) |
Total real estate properties, net | $ 1,102,025 | $ 1,070,941 |
Investment in Unconsolidated _5
Investment in Unconsolidated Ventures - Income Statement Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues: | ||
Total revenues | $ 6,924 | $ 7,130 |
Expenses: | ||
Real estate operating expenses | 3,058 | 3,176 |
Interest expense | 1,860 | 1,946 |
Depreciation | 1,561 | 1,547 |
Total expenses | 9,846 | 9,213 |
Total revenues less total expenses | (2,922) | (2,083) |
Net income from joint ventures | (4,831) | (4,247) |
Unconsolidated joint ventures | ||
Revenues: | ||
Rental and other revenue | 30,843 | 26,827 |
Total revenues | 30,843 | 26,827 |
Expenses: | ||
Real estate operating expenses | 14,532 | 13,096 |
Interest expense | 8,757 | 7,906 |
Depreciation | 10,357 | 9,189 |
Total expenses | 33,646 | 30,191 |
Total revenues less total expenses | (2,803) | (3,364) |
Net income from joint ventures | (2,803) | (3,364) |
BRT equity in loss from joint ventures | $ (1,815) | $ (2,068) |
Debt Obligations - Summary of D
Debt Obligations - Summary of Debt Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Deferred financing costs | $ (1,090) | $ (1,160) |
Total debt obligations, net of deferred costs | 169,592 | 170,278 |
Mortgages payable | ||
Debt Instrument [Line Items] | ||
Debt, long-term and short-term debt, combined amount | 133,282 | 134,038 |
Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Debt, long-term and short-term debt, combined amount | $ 37,400 | $ 37,400 |
Debt Obligations - Mortgage Pay
Debt Obligations - Mortgage Payable (Details) - Mortgages payable - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Instrument [Line Items] | ||
Weighted average interest rate on mortgage debt (as a percentage) | 4.15% | |
Interest expense | $ 1,475 | $ 1,500 |
Debt Obligations - Credit Facil
Debt Obligations - Credit Facility (Details) - Line of Credit - Valley National Bank - Credit Facility, Maturing April 2021 - Secured Debt - USD ($) | Apr. 18, 2019 | Jun. 01, 2020 | May 21, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||||
Debt assumed, face value | $ 10,000,000 | ||||
Effective interest rate | 5.00% | ||||
Unused borrowing capacity fee, percentage | 0.25% | ||||
Facility amount drawn | $ 0 | ||||
Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Facility amount drawn | $ 5,000,000 | $ 5,000,000 | |||
Prime Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Floor | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 5.00% |
Debt Obligations - Junior Subor
Debt Obligations - Junior Subordinated Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Jul. 30, 2020 | Dec. 31, 2019 | |
Debt Obligations | ||||
Deferred mortgage costs | $ 1,090 | $ 1,160 | ||
Junior subordinated notes | ||||
Debt Obligations | ||||
Outstanding principal balance | 37,400 | 37,400 | ||
Deferred mortgage costs | 332 | $ 337 | ||
Interest expense | $ 370 | $ 449 | ||
Junior subordinated notes | London Interbank Offered Rate (LIBOR) | ||||
Debt Obligations | ||||
Basis spread on variable rate | 2.00% | |||
Effective interest rate | 3.77% | |||
Junior subordinated notes | London Interbank Offered Rate (LIBOR) | Subsequent Event | ||||
Debt Obligations | ||||
Effective interest rate | 2.76% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Related party - general and administrative | $ 226 | $ 181 |
Director | Advisory services | ||
Related Party Transaction [Line Items] | ||
Related party expense | 350 | 333 |
Majestic Property Management Corporation | Real Property Management Real Estate Brokerage And Construction Supervision Services | ||
Related Party Transaction [Line Items] | ||
Related party expense | 8 | 8 |
Gould Investors Limited Partnership | Shared Services Agreement | ||
Related Party Transaction [Line Items] | ||
Related party - general and administrative | $ 226 | 142 |
Affiliated Entity | Management fee | ||
Related Party Transaction [Line Items] | ||
Related party expense | $ 32 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) - Level 2 - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2020 | Jun. 30, 2019 | |
Market Approach Valuation Technique | Junior subordinated notes | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate (as a percent) | 5.95% | 6.41% |
Market Approach Valuation Technique | Mortgages payable | Minimum | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate (as a percent) | 2.70% | 3.89% |
Market Approach Valuation Technique | Mortgages payable | Maximum | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate (as a percent) | 3.05% | 4.33% |
Carrying and Fair Value | Junior subordinated notes | ||
Financial Instruments Not Measured at Fair Value | ||
Estimated fair value (lower) higher than carrying value | $ 9,915 | $ 9,589 |
Carrying and Fair Value | Mortgages payable | ||
Financial Instruments Not Measured at Fair Value | ||
Estimated fair value (lower) higher than carrying value | $ 6,504 | $ 321 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Summary of Financial Assets and Liabilities Measured at Fair Value (Details) - Interest rate swap $ in Thousands | Mar. 31, 2020USD ($) |
Level 1 | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Total Financial Liabilities | $ 0 |
Level 2 | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Total Financial Liabilities | 35 |
Carrying and Fair Value | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Total Financial Liabilities | $ 35 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Effect of derivative financial instrument on the consolidated statements of comprehensive (loss) income | |||
Estimated amount to be reclassified from Accumulated other comprehensive income (loss) as an increase to interest expense | $ 19 | ||
Interest Expense | |||
Effect of derivative financial instrument on the consolidated statements of comprehensive (loss) income | |||
Amount of (loss) gain recognized on derivative in Other Comprehensive Income | (24) | $ (9) | |
Amount of (loss) gain reclassified from Accumulated Other Comprehensive Income into Interest expense | (1) | 1 | |
Total amount of Interest expense presented in the Consolidated Statement of Operations | 1,860 | $ 1,946 | |
Other Assets | |||
Fair value of derivative financial instruments | |||
Fair value of derivative financial instrument asset | 0 | $ 0 | |
Accounts payable and accrued liabilities | |||
Fair value of derivative financial instruments | |||
Fair value of derivative financial instrument liability | 35 | $ 12 | |
Hedging instrument | Interest Rate Swap, Maturity Date April 1, 2022 | |||
Derivative [Line Items] | |||
Current Notional Amount | $ 1,138 | ||
Fixed Rate | 5.25% |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ in Thousands | 3 Months Ended |
Jun. 30, 2020USD ($)tennet | |
Subsequent Event [Line Items] | |
Number of commercial tenants | tennet | 2 |
Rent abatement | $ | $ 75 |