Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 01, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Inland Real Estate Income Trust, Inc. | |
Entity Central Index Key | 1,528,985 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 35,592,905 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Investment properties: | ||
Land | $ 277,229,000 | $ 277,229,000 |
Building and other improvements | 1,018,048,000 | 1,011,688,000 |
Total | 1,295,277,000 | 1,288,917,000 |
Less accumulated depreciation | (129,574,000) | (101,094,000) |
Net investment properties | 1,165,703,000 | 1,187,823,000 |
Cash and cash equivalents | 16,643,000 | 11,904,000 |
Restricted cash | 1,007,000 | 4,940,000 |
Investment in unconsolidated entities | 4,589,000 | 7,125,000 |
Accounts and rent receivable, net | 15,402,000 | 15,152,000 |
Acquired lease intangible assets, net | 120,822,000 | 138,658,000 |
Deferred costs, net | 2,417,000 | 1,317,000 |
Other assets | 20,659,000 | 8,451,000 |
Total assets | 1,347,242,000 | 1,375,370,000 |
Liabilities: | ||
Mortgages and credit facility payable, net | 699,887,000 | 691,465,000 |
Accounts payable and accrued expenses | 11,345,000 | 10,167,000 |
Distributions payable | 11,924,000 | 4,537,000 |
Acquired intangible liabilities, net | 58,585,000 | 62,270,000 |
Deferred investment property acquisition obligations | 0 | 1,050,000 |
Due to related parties | 2,825,000 | 2,665,000 |
Other liabilities | 12,838,000 | 11,744,000 |
Total liabilities | 797,404,000 | 783,898,000 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $.001 par value, 40,000,000 shares authorized, none outstanding | ||
Common stock, $.001 par value, 1,460,000,000 shares authorized, 35,338,249 and 35,498,444 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively | 35,000 | 35,000 |
Additional paid in capital | 795,238,000 | 798,567,000 |
Accumulated distributions and net loss | (258,864,000) | (212,883,000) |
Accumulated other comprehensive income | 13,429,000 | 5,753,000 |
Total stockholders’ equity | 549,838,000 | 591,472,000 |
Total liabilities and stockholders’ equity | $ 1,347,242,000 | $ 1,375,370,000 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 40,000,000 | 40,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,460,000,000 | 1,460,000,000 |
Common stock, shares issued | 35,338,249 | 35,498,444 |
Common stock, shares outstanding | 35,338,249 | 35,498,444 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income: | ||||
Total income | $ 32,290 | $ 32,110 | $ 96,808 | $ 96,628 |
Cost and Expenses: | ||||
Property operating expenses | 5,395 | 5,519 | 16,889 | 16,390 |
Real estate tax expense | 4,143 | 4,386 | 12,331 | 12,384 |
General and administrative expenses | 904 | 875 | 3,303 | 3,397 |
Acquisition related costs | 62 | 28 | 1,262 | |
Business management fee | 2,338 | 2,311 | 7,000 | 6,871 |
Depreciation and amortization | 14,390 | 15,492 | 43,612 | 46,391 |
Total expenses | 27,170 | 28,645 | 83,163 | 86,695 |
Operating income | 5,120 | 3,465 | 13,645 | 9,933 |
Interest expense | (6,825) | (6,361) | (19,970) | (18,316) |
Gain on early termination of interest rate swap agreements | 1,151 | 1,151 | ||
Loss on extinguishment of debt | (411) | (411) | ||
Interest and other income | 174 | 20 | 380 | 72 |
Provision for impairment of unconsolidated entities | (5,000) | (5,000) | ||
Equity in earnings of unconsolidated entities | 20 | 20 | ||
Net loss | $ (5,791) | $ (2,856) | $ (10,205) | $ (8,291) |
Net loss per common share, basic and diluted | $ (0.16) | $ (0.08) | $ (0.29) | $ (0.23) |
Weighted average number of common shares outstanding, basic and diluted | 35,589,157 | 35,657,535 | 35,590,648 | 35,556,323 |
Comprehensive income (loss): | ||||
Net loss | $ (5,791) | $ (2,856) | $ (10,205) | $ (8,291) |
Unrealized gain (loss) on derivatives | 1,121 | (268) | 7,976 | (1,721) |
Reclassification adjustment for amounts included in net loss | (245) | 507 | (300) | 2,002 |
Comprehensive income (loss) | (4,915) | (2,617) | (2,529) | (8,010) |
Rental Income [Member] | ||||
Income: | ||||
Total income | 25,096 | 24,640 | 74,773 | 74,312 |
Tenant Recovery Income [Member] | ||||
Income: | ||||
Total income | 7,110 | 7,291 | 21,774 | 21,964 |
Other Property Income [Member] | ||||
Income: | ||||
Total income | $ 84 | $ 179 | $ 261 | $ 352 |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY (Unaudited) - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid In Capital [Member] | Accumulated Distributions and Net Loss [Member] | Accumulated Other Comprehensive Income [Member] |
Balance at Dec. 31, 2017 | $ 591,472 | $ 35 | $ 798,567 | $ (212,883) | $ 5,753 |
Balance, shares at Dec. 31, 2017 | 35,498,444 | 35,498,444 | |||
Distributions declared | $ (35,776) | (35,776) | |||
Proceeds from distribution reinvestment plan | $ 13,720 | $ 1 | 13,719 | ||
Proceeds from distribution reinvestment plan, shares | 4,147,832 | 612,608 | |||
Shares repurchased | $ (17,084) | $ (1) | (17,083) | ||
Shares repurchased, shares | (2,345,045) | (773,799) | |||
Unrealized gain on derivatives | $ 7,976 | 7,976 | |||
Reclassification adjustment for amounts included in net loss | (300) | (300) | |||
Equity based compensation | 35 | 35 | |||
Equity based compensation, shares | 996 | ||||
Net loss | (10,205) | (10,205) | |||
Balance at Sep. 30, 2018 | $ 549,838 | $ 35 | $ 795,238 | $ (258,864) | $ 13,429 |
Balance, shares at Sep. 30, 2018 | 35,338,249 | 35,338,249 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (10,205) | $ (8,291) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 43,612 | 46,391 |
Provision for impairment of investment in unconsolidated entities | 5,000 | |
Amortization of debt issuance costs and mortgage premiums, net | 441 | 267 |
Loss on extinguishment of debt | 411 | |
Amortization of acquired market leases, net | (700) | (1,069) |
Amortization of equity based compensation | 35 | 22 |
Straight-line income, net | (975) | (1,276) |
Equity in earnings of unconsolidated entities | (20) | |
Distributions from unconsolidated entity | 146 | |
Payment of leasing fees | (1,353) | (570) |
Adjustment of contingent earnout liability | (853) | 1,084 |
Other non-cash adjustments | (12) | (35) |
Changes in assets and liabilities: | ||
Accounts payable and accrued expenses | 920 | 4,041 |
Accounts and rent receivable | 1,287 | 608 |
Due to related parties | 59 | 446 |
Other liabilities | (582) | (222) |
Other assets | 955 | 1,277 |
Net cash flows provided by operating activities | 38,040 | 42,799 |
Cash flows from investing activities: | ||
Purchase of investment properties | (69,953) | |
Capital expenditures | (6,825) | (4,042) |
Investment in unconsolidated joint ventures | (2,464) | (5,602) |
Other assets and restricted escrows | (5,801) | (267) |
Net cash flows used in investing activities | (15,090) | (79,864) |
Cash flows from financing activities: | ||
Payment of credit facility | (56,277) | (43,000) |
Proceeds from credit facility | 251,000 | 79,300 |
Proceeds from mortgages payable | 39,180 | |
Payment of mortgages payable | (184,894) | (164) |
Proceeds from the distribution reinvestment plan | 13,720 | 20,415 |
Shares repurchased | (13,996) | (12,683) |
Distributions paid | (28,388) | (39,989) |
Payment of deferred investment property acquisition obligations | (1,050) | (6,415) |
Payment of debt issuance costs | (2,259) | (444) |
Net cash flows (used in) provided by financing activities | (22,144) | 36,200 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 806 | (865) |
Cash, cash equivalents and restricted cash, at beginning of the period | 16,844 | 16,857 |
Cash, cash equivalents and restricted cash, at end of period | 17,650 | 15,992 |
Supplemental disclosure of cash flow information: | ||
Land | 17,513 | |
Building and improvements | 828 | 41,793 |
Acquired in-place lease intangibles | 6,740 | |
Acquired above market lease intangibles | 8,645 | |
Acquired below market lease intangibles | (4,590) | |
Assumed liabilities, net | (148) | |
Purchase of investment properties | 828 | 69,953 |
Cash paid for interest | 19,700 | 18,075 |
Supplemental schedule of non-cash investing and financing activities: | ||
Accrued SRP | 5,618 | 1,850 |
Distributions payable | $ 11,924 | $ 4,395 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | NOTE 1 – ORGANIZATION The Company was formed on August 24, 2011 to acquire and manage a portfolio of commercial real estate investments located in the United States. The Company has acquired primarily retail properties. The Company has invested in joint ventures and may continue to invest in additional joint ventures or acquire other real estate assets such as office and medical office buildings, multi-family properties and industrial/distribution and warehouse facilities if its management believes the expected returns from those investments exceed that of retail properties. The Company also may invest in real estate-related equity securities of both publicly traded and private real estate companies, as well as commercial mortgage-backed securities. The Company entered into a Business Management Agreement with IREIT Business Manager & Advisor, Inc. (the “Business Manager”), an indirect wholly owned subsidiary of Inland Real Estate Investment Corporation (the “Sponsor”), to be the Business Manager to the Company. At September 30, 2018, the Company owned 59 retail properties, totaling 6,870,124 square feet. The properties are located in 24 states. At September 30, 2018, the portfolio had a weighted average physical occupancy of 94.1% and economic occupancy of 94.7%. On January 16, 2018, the Company effected a 1-for-2.5 reverse stock split of its issued and outstanding common stock whereby every 2.5 shares of issued and outstanding common stock were converted into one share of its common stock (the “Reverse Stock Split”). In accordance with U.S. GAAP, all share information presented has been retroactively adjusted to reflect the Reverse Stock Split. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Disclosures discussing all significant accounting policies are set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission on March 16, 2018, under the heading Note 2 – “Summary of Significant Accounting Policies.” There have been no changes to the Company’s significant accounting policies during the nine months ended September 30, 2018, except as noted below. General The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and require 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. In the opinion of management, all adjustments necessary for a fair statement, in all material respects, of the financial position and results of operations for the periods are presented. Actual results could differ from those estimates. The results of operations for the interim periods are not necessarily indicative of the results for the entire year. Certain amounts in the prior period consolidated financial statements have been reclassified to conform with the current year presentation. Recently Adopted Accounting Pronouncements In November 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, requires that amounts described as restricted cash and restricted cash equivalents be included in beginning and ending-of-period reconciliation of cash shown on the statement of cash flows. Amounts included in restricted cash represent those required to be set aside by lenders for real estate taxes, insurance, capital expenditures and tenant improvements on our existing properties. These amounts also include post close escrows for tenant improvements, leasing commissions, master lease, general repairs and maintenance, and are classified as restricted cash on the Company’s consolidated balance sheets. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Company’s consolidated balance sheets to such amounts shown in the Company’s consolidated statements of cash flows: September 30, 2018 2017 Cash and cash equivalents $ 16,643 $ 10,874 Restricted cash 1,007 5,118 Total cash, cash equivalents, and restricted cash $ 17,650 $ 15,992 On January 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers Leases (Topic 842) Recently Issued Accounting Pronouncements In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). On July 30, 2018 the FASB issued ASU No. 2018-11, Targeted Improvements, Leases (Topic 842) ASU No. 2018-11 also provides companies with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company expects to adopt the ASU No. 2016-02 on its effective date and For lessees, ASU No. 2016-02 establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. The Company is the lessee under a ground lease, for which it will be required to recognize a ROU asset and a related lease liability on its consolidated balance sheets upon adoption. Both ASU No. 2016-02 and ASU No. 2018-11 are effective for the Company on January 1, 2019. The Company is continuing to evaluate this guidance and the impact, both as lessor and lessee on its consolidated financial statements. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Equity | NOTE 3 – EQUITY The Company commenced an initial public “best efforts” offering (the “Offering”) on October 18, 2012, which concluded on October 16, 2015. The Company issued 33,534,022 shares of common stock generating gross proceeds of $834,399 from the Offering. As of September 30, 2018, there were 35,338,249 shares of common stock outstanding including 4,147,832 shares issued through the distribution reinvestment plan (“DRP”), net of 2,345,045 shares repurchased through the share repurchase program (“SRP”). On March 20, 2018, the Company’s board of directors determined an estimated per share net asset value (the “Estimated Per Share NAV”) as reported in the Company’s Form 8-K filed with the Securities and Exchange Commission on March 21, 2018. The Company provides the following programs to facilitate additional investment in the Company’s shares and to provide limited liquidity for stockholders. Distribution Reinvestment Plan The Company provides stockholders with the option to purchase additional shares from the Company by automatically reinvesting distributions through the DRP, subject to certain share ownership restrictions. The Company does not pay any selling commissions or a marketing contribution and due diligence expense allowance in connection with the DRP. Pursuant to the DRP, the price per share for shares of common stock purchased under the DRP is equal to the estimated value of a share, as determined by the Company’s board of directors and reported by the Company from time to time, until the shares become listed for trading, if a listing occurs, assuming that the DRP has not been terminated or suspended in connection with such listing. Distributions reinvested through the DRP were $13,720 and $20,415 for the nine months ended September 30, 2018 and 2017, respectively. Share Repurchase Program The Company adopted a share repurchase program effective October 18, 2012 which was subsequently amended effective January 1, 2018 to change the processing of repurchase requests from a monthly to a quarterly basis to align with the move to quarterly distributions. Under the amended and restated SRP, the Company is authorized to purchase shares from stockholders who purchased their shares from the Company or received their shares through a non-cash transfer and who have held their shares for at least one year, if requested, if the Company chooses to purchase them. Subject to funds being available, the Company limits the number of shares repurchased during any calendar year to 5% of the number of shares outstanding on December 31 st Pursuant to the SRP, the Company may repurchase shares at prices ranging from 92.5% of the “share price,” as defined in the SRP, for stockholders who have owned shares for at least one year to 100% of the “share price” for stockholders who have owned shares for at least four years. For repurchases sought upon a stockholder’s death or qualifying disability, the Company may repurchase shares at a price equal to 100% of the “share price.” As used in the SRP, “share price” means the lesser of (1) the offering price of the Company’s shares in the Offering (unless the shares were purchased at a discount from that price, and then that purchase price), as adjusted by the Reverse Stock Split, reduced by any distributions of net sale proceeds that the Company designates as constituting a return of capital; or (2) the most recently disclosed estimated value per share. Repurchases through the SRP were $17,084 and $13,085 for the nine months ended September 30, 2018 and 2017, respectively. At September 30, 2018 and December 31, 2017, the Company’s liability related to the SRP was $5,618 and $2,530, respectively, recorded in other liabilities on the Company’s consolidated balance sheets. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | NOTE 4 – ACQUISITIONS 2018 Acquisitions During the nine months ended September 30, 2018, the Company did not acquire any additional properties. The Company incurred a total of $12 of acquisition related costs, during the three months ended September 30, 2018, all of which are capitalized as the acquisition of net investment properties in the consolidated balance sheets. The Company incurred $65 of acquisition related costs during the nine months ended September 30, 2018, $12 of which are capitalized as the acquisition of net investment properties in the consolidated balance sheets and $53 of which was recorded in acquisition related costs, net of an adjustment to the deferred investment property acquisition obligation of ($25), that were recorded in acquisition related costs in the consolidated statements of operations and comprehensive income (loss). For the three months ended September 30, 2017, the Company incurred $222 of total acquisition costs and fees, $160 of which are capitalized as the acquisition of net investment properties in the consolidated balance sheets and $62 of such costs are included in acquisition related costs in the consolidated statements of operations and comprehensive income (loss). For the nine months ended September 30, 2017, the Company incurred $2,781 of total acquisition costs and fees, $1,519 of which are capitalized as the acquisition of net investment properties in the consolidated balance sheets and $1,262 of such costs are included in acquisition related costs in the consolidated statements of operations and comprehensive income (loss). |
Investment in Unconsolidated En
Investment in Unconsolidated Entities | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investment in Unconsolidated Entities | NOTE 5 – INVESTMENT IN UNCONSOLIDATED ENTITIES The following table summarizes the Company’s joint ventures: Investment in unconsolidated entities Entity Company's Profit/Loss Allocation at September 30, 2018 Remaining Commitment September 30, 2018 (b) December 31, 2017 Mainstreet Texas Development Fund, LLC ("Mainstreet JV") (a) 83.7% $ — $ 4,589 $ 7,125 $ 4,589 $ 7,125 (a) In August 2017, the Company, through a wholly owned taxable REIT subsidiary, made an equity commitment to Mainstreet JV in order to develop, construct, lease, finance and sell parcels of land and related building improvements including personal property which are to be operated as rapid recovery healthcare facilities located in Beaumont, Amarillo and Temple, Texas. In August 2018, the Company’s subsidiary made an additional capital contribution to Mainstreet JV to fund cost overruns. The investment balance includes capitalized acquisition, interest and legal costs of $337. (b) During the three and nine months ended September 30, 2018, the Company recorded an impairment to its investment in the Mainstreet JV of $5,000 to write down the investment to its estimated fair value based on the Company’s evaluations. See Note 14 - "Fair Value Measurements" for further information. |
Acquired Intangible Assets and
Acquired Intangible Assets and Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Acquired Intangible Assets and Liabilities | NOTE 6 – ACQUIRED INTANGIBLE ASSETS AND LIABILITIES The following table summarizes the Company’s identified intangible assets and liabilities as of September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 Intangible assets: Acquired in-place lease value $ 165,182 $ 165,182 Acquired above market lease value 45,824 45,824 Accumulated amortization (90,184 ) (72,348 ) Acquired lease intangibles, net $ 120,822 $ 138,658 Intangible liabilities: Acquired below market lease value $ 71,551 $ 71,551 Acquired above market ground lease 5,169 5,169 Accumulated amortization (18,135 ) (14,450 ) Acquired below market lease intangibles, net $ 58,585 $ 62,270 As of September 30, 2018, the weighted average amortization periods for acquired in-place lease, above market lease intangibles, below market lease intangibles and above market ground leases are 10, 14, 19 and 55 years, respectively. The portion of the purchase price allocated to acquired above market lease value and acquired below market lease value is amortized on a straight-line basis over the term of the related lease as an adjustment to rental income. For below market lease values, the amortization period includes any renewal periods with fixed rate renewals. The acquired above market ground lease is amortized on a straight-line basis as an adjustment to property operating expense over the term of the lease and includes renewal periods. The portion of the purchase price allocated to acquired in-place lease value is amortized on a straight-line basis over the acquired leases’ weighted average remaining term. Amortization pertaining to acquired in-place lease value, above market ground lease, above market lease value and below market lease value is summarized below: Three Months Ended September 30, Nine Months Ended September 30, Amortization recorded as amortization expense: 2018 2017 2018 2017 Acquired in-place lease value $ 4,832 $ 5,640 $ 14,851 $ 16,508 Amortization recorded as a reduction to property operating expense: Acquired above market ground lease $ 23 $ 23 $ 70 $ 70 Amortization recorded as a (reduction) increase to rental income: Acquired above market leases $ (910 ) $ (1,212 ) $ (2,985 ) $ (3,304 ) Acquired below market leases 1,310 1,187 3,615 4,303 Net rental income (decrease) increase $ 400 $ (25 ) $ 630 $ 999 Estimated amortization of the respective intangible lease assets and liabilities as of September 30, 2018 for each of the five succeeding years and thereafter is as follows: Acquired In-Place Leases Above Market Leases Below Market Leases Above Market Ground Lease 2018 (remainder of year) $ 4,559 $ 906 $ (1,099 ) $ (23 ) 2019 16,882 3,405 (4,297 ) (94 ) 2020 13,884 3,066 (4,078 ) (94 ) 2021 11,427 2,997 (3,896 ) (94 ) 2022 8,781 2,691 (3,636 ) (94 ) Thereafter 33,915 18,309 (36,690 ) (4,490 ) Total $ 89,448 $ 31,374 $ (53,696 ) $ (4,889 ) |
Debt and Derivative Instruments
Debt and Derivative Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Derivative Instruments | NOTE 7 – DEBT AND DERIVATIVE INSTRUMENTS As of September 30, 2018 and December 31, 2017, the Company had the following mortgages and credit facility payable: September 30, 2018 December 31, 2017 Type of Debt Principal Amount Weighted Average Interest Rate Principal Amount Weighted Average Interest Rate Fixed rate mortgages payable $ 171,699 4.25 % $ 171,851 4.25 % Variable rate mortgages payable with swap agreements 252,244 3.33 % 383,517 3.49 % Variable rate mortgages payable 684 3.70 % 54,153 3.26 % Mortgages payable $ 424,627 3.71 % $ 609,521 3.69 % Credit facility payable 278,523 4.07 % 83,800 3.21 % Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps $ 703,150 3.85 % $ 693,321 3.63 % Add: Unamortized mortgage premiums 1,841 2,316 Less: Unamortized debt issuance costs (5,104 ) (4,172 ) Total debt $ 699,887 $ 691,465 The Company estimates the fair value of its total debt by discounting the future cash flows of each instrument at rates currently offered for similar debt instruments of comparable maturities by the Company’s lenders using Level 3 inputs. The carrying value of the Company’s debt excluding mortgage premium and unamortized debt issuance costs was $703,150 and $693,321 as of September 30, 2018 and December 31, 2017, respectively, and its estimated fair value was $700,117 and $684,621 as of September 30, 2018 and December 31, 2017, respectively. As of September 30, 2018, scheduled principal payments and maturities on the Company’s debt were as follows: September 30, 2018 Scheduled Principal Payments and Maturities by Year: Scheduled Principal Payments Maturities of Mortgage Loans Maturity of Credit Facility Total 2018 (remainder of the year) $ 69 $ — $ — $ 69 2019 215 7,447 — 7,662 2020 897 — — 897 2021 1,531 82,740 — 84,271 2022 615 101,537 128,523 230,675 Thereafter 963 228,613 150,000 379,576 Total $ 4,290 $ 420,337 $ 278,523 $ 703,150 Credit Facility Payable On August 1, 2018, the Company amended and restated its credit facility (the “Credit Facility”) to among other things: • Increase the facility from $110,000 to $350,000 including a $200,000 revolving credit facility (the “Revolving Credit Facility”) and $150,000 term loan (the “Term Loan”), with an accordion feature that allows for an increase in available borrowings up to $700,000, subject to certain conditions; • Extend the maturity date of the current revolving credit facility to August 1, 2022 with one 12-month extension; • Provide a Term Loan with a maturity date of August 1, 2023. At September 30, 2018, the Company has $128,523 outstanding under the Revolving Credit Facility and $150,000 outstanding under the Term Loan. At September 30, 2018 the interest rate on the Revolving Credit Facility and the Term Loan was 3.82% and 4.29%, respectively. The Revolving Credit Facility matures on August 1, 2022, and the Company has the option to extend the maturity date for one additional year subject to the payment of an extension fee and certain other conditions. The Term Loan matures on August 1, 2023. As of September 30, 2018, the Company had $71,477 available for borrowing under the Revolving Credit Facility. The Company’s performance of the obligations under the Credit Facility, including the payment of any outstanding indebtedness under the Credit Facility, is guaranteed by certain subsidiaries of the Company, including each of the subsidiaries of the Company which owns or leases any of the properties included in the pool of unencumbered properties comprising the borrowing base. Additional properties will be added to and removed from the pool from time to time to support amounts borrowed under the Credit Facility. At September 30, 2018, there were 28 properties included in the pool of unencumbered properties. The Company paid-off twelve mortgage loans with a principal balance of $184,700 and ten interest rate swap agreements with a notional amount of $131,300. The Credit Facility requires compliance with certain covenants, including a minimum tangible net worth requirement, a distribution limitation, restrictions on indebtedness and investment restrictions, as defined. It also contains customary default provisions including the failure to comply with the Company's covenants and the failure to pay when amounts outstanding under the Credit Facility become due. The Company is in compliance with all financial covenants related to the Credit Facility. Gain on early termination of interest rate swap agreements During the three and nine months ended September 30, 2018, the Company recorded a gain of $1,151 related to the early termination of certain interest rate swap agreements that had corresponding early mortgage pay-offs. Loss on extinguishment of debt During the three and nine months ended September 30, 2018, the Company realized a loss on extinguishment of debt in the consolidated statements of operations and comprehensive income (loss) of $411 due to the write-off of the unamortized balance of debt issuance costs associated with ten loans that were repaid prior to maturity. Mortgages Payable The mortgage loans require compliance with certain covenants, such as debt service ratios, investment restrictions and distribution limitations. As of September 30, 2018, the Company was current on all of the payments and in compliance with all financial covenants. All of the Company’s mortgage loans are secured by first mortgages on the respective real estate assets. As of September 30, 2018, the weighted average years to maturity for the Company’s mortgages payable was approximately 4.84 years. Interest Rate Swap Agreements The Company entered into interest rate swaps to fix certain of its floating LIBOR based debt under variable rate loans to a fixed rate to manage its risk exposure to interest rate fluctuations. The Company will generally match the maturity of the underlying variable rate debt with the maturity date on the interest swap. See Note 14 - "Fair Value Measurements" for further information. The following table summarizes the Company’s interest rate swap contracts outstanding as of September 30, 2018. Date Entered Effective Date Maturity Date Pay Fixed Rate (a) Notional Amount Fair Value at September 30, 2018 Assets February 11, 2015 March 2, 2015 March 1, 2022 2.02 % 6,114 173 April 7, 2015 April 7, 2015 April 7, 2022 1.74 % 49,400 1,883 September 17, 2015 September 17, 2015 September 17, 2022 1.90 % 13,700 514 October 2, 2015 November 1, 2015 November 1, 2022 1.79 % 13,100 561 December 23, 2015 December 23, 2015 January 2, 2026 2.30 % 26,000 1,054 January 25, 2016 February 1, 2016 February 1, 2021 1.40 % 38,000 1,249 June 7, 2016 July 1, 2016 July 1, 2023 1.42 % 43,680 2,884 July 21, 2016 August 1, 2016 August 1, 2023 1.30 % 47,550 3,468 June 5, 2017 May 31, 2017 May 15, 2022 1.90 % 14,700 501 August 23, 2018 September 4, 2018 August 1, 2023 2.73 % 60,000 474 August 23, 2018 September 4, 2018 August 1, 2023 2.74 % 25,000 196 August 23, 2018 September 4, 2018 August 1, 2023 2.74 % 25,000 189 August 23, 2018 September 4, 2018 August 1, 2023 2.73 % 40,000 313 $ 402,244 $ 13,459 (a) Receive floating rate index based upon 1 month LIBOR. At September 30, 2018, the 1 month LIBOR was 2.26%. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the unrealized gain or loss on the derivative is reported as a component of comprehensive income (loss). The ineffective portion of the change in fair value, if any, is recognized directly in earnings. The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2018 and 2017. Three Months Ended September 30, Nine Months Ended September 30, Derivatives in Cash Flow Hedging Relationships 2018 2017 2018 2017 Effective portion of derivatives $ 1,121 $ (268 ) $ 7,976 $ (1,721 ) Reclassification adjustment for amounts included in net gain or loss (effective portion) $ (245 ) $ 507 $ (300 ) $ 2,002 Ineffective portion of derivatives $ — $ (1 ) $ (13 ) $ 12 The amount that is expected to be reclassified from accumulated other comprehensive income into income in the next twelve months is approximately $2,293. |
Distributions
Distributions | 9 Months Ended |
Sep. 30, 2018 | |
Distributions [Abstract] | |
Distributions | NOTE 8 – DISTRIBUTIONS The Company currently pays quarterly distributions in an amount equal to $0.335 per share, which represents an annualized rate of 6% based on the Estimated Per Share NAV, payable in arrears the following quarter. For 2017, the Company paid distributions based on daily record dates, payable in arrears the following month, equal to a daily amount of $0.00410959 per share, based upon a 365-day year. The table below presents the distributions paid and declared during the three and nine months ended September 30, 2018 and 2017. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Distributions paid $ 11,924 $ 13,482 $ 28,388 $ 39,989 Distributions declared $ 11,924 $ 13,484 $ 35,776 $ 39,896 |
Earnings (Loss) per Share
Earnings (Loss) per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | NOTE 9 – EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share (“EPS”) are computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period (the “common shares”). Diluted EPS is computed by dividing net income (loss) by the common shares plus common share equivalents. The Company excludes antidilutive restricted shares and units from the calculation of weighted-average shares for diluted EPS. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 10 – COMMITMENTS AND CONTINGENCIES The acquisition of certain of the Company’s properties included an earnout component to the purchase price that was recorded as a deferred investment property acquisition obligation (“Earnout liability”). At September 30, 2018 there is no earnout liability outstanding. The table below presents the change in the Company’s Earnout liability for the nine months ended September 30, 2018 and 2017. Nine Months Ended September 30, 2018 2017 Earnout liability-beginning of period $ 1,050 $ 6,856 Increases: Additional earnout liability 816 — Amortization expense 24 28 Decreases: Earnout payments (1,865 ) (6,415 ) Other: Adjustments to acquisition related costs (25 ) 1,084 Earnout liability – end of period $ — $ 1,553 The Company may be subject, from time to time, to various legal proceedings and claims that arise in the ordinary course of business. While the resolution of these matters cannot be predicted with certainty, management believes, based on currently available information, that the final outcome of such matters will not have a material adverse effect on the consolidated financial statements of the Company. |
Equity-Based Compensation
Equity-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-Based Compensation | NOTE 11 – EQUITY-BASED COMPENSATION Under the Company’s Employee and Director Restricted Share Plan (“RSP”), restricted shares and restricted share units generally vest over a one to three year vesting period from the date of the grant, subject to the specific terms of the grant. In accordance with the RSP, restricted shares and restricted share units were issued to non-employee directors as compensation. Each restricted share and restricted share unit entitle the holder to receive one common share when it vests. Restricted shares and restricted units are included in common stock outstanding on the date of vesting. A summary table of the status of the restricted shares and restricted share units is presented below: Restricted Shares Restricted Share Units Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding at December 31, 2017 2,543 904 $ 78 $ 78 Granted 1,677 624 51 51 Vested (996 ) (353 ) (30 ) (30 ) Converted — — — — Forfeited — — — — Outstanding at September 30, 2018 3,224 1,175 $ 99 $ 99 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 12 – SEGMENT REPORTING The Company has one reportable segment as defined by U.S. GAAP, retail real estate, for the nine months ended September 30, 2018 and 2017. |
Transactions with Related Parti
Transactions with Related Parties | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Transactions With Related Parties | NOTE 13 – TRANSACTIONS WITH RELATED PARTIES The following table summarizes the Company’s related party transactions for the three and nine months ended September 30, 2018 and 2017. Certain compensation and fees payable to the Business Manager for services provided to the Company are limited to maximum amounts. Three Months Ended September 30, Nine Months Ended September 30, Unpaid amounts as of 2018 2017 2018 2017 September 30, 2018 December 31, 2017 General and administrative reimbursements (a) $ 279 $ 345 $ 1,102 $ 1,319 $ 288 $ 203 Acquisition related costs $ — $ 54 $ 8 $ 273 $ — $ — Acquisition fees 12 180 28 1,216 12 51 Total acquisition costs and fees (b) $ 12 $ 234 $ 36 $ 1,489 $ 12 $ 51 Real estate management fees $ 1,090 $ 1,178 $ 3,615 $ 3,638 $ — $ — Property operating expenses 289 282 857 832 — — Construction management fees 67 45 177 98 70 35 Leasing fees 69 51 214 143 116 51 Total real estate management related costs (c) $ 1,515 $ 1,556 $ 4,863 $ 4,711 $ 186 $ 86 Business management fees (d) $ 2,338 $ 2,311 $ 7,000 $ 6,871 $ 2,339 $ 2,325 (a) The Business Manager and its related parties are entitled to reimbursement for certain general and administrative expenses incurred by the Business Manager or its related parties relating to the Company’s administration. Such costs are included in general and administrative expenses in the consolidated statements of operations and comprehensive income (loss). Unpaid amounts are included in due to related parties in the consolidated balance sheets. (b) The Company pays the Business Manager or its affiliates a fee equal to 1.5% of the “contract purchase price,” as defined, of each asset acquired. The Business Manager and its related parties are also reimbursed for acquisition and transaction related costs of the Business Manager and its related parties relating to the Company’s acquisition activities, regardless of whether the Company acquires the real estate assets. Of the $12 related party acquisition costs and fees incurred during the three months ended September 30, 2018, $12 are capitalized as the acquisition of net investment properties in the consolidated balance sheets. Of the $36 related party acquisition costs and fees incurred during the nine months ended September 30, 2018, $12 are capitalized as the acquisition of net investment properties in the consolidated balance sheets and $24 of such costs are included in acquisition related costs in the consolidated statements of operations and comprehensive income (loss). Of the $234 related party acquisition costs and fees incurred during the three months ended September 30, 2017, $98 are capitalized as the acquisition of net investment properties in the consolidated balance sheets and $52 of such costs are included in acquisition related costs in the consolidated statements of operations and comprehensive income (loss). Of the $1,489 related party acquisition costs and fees incurred during the nine months ended September 30, 2017, $1,344 are capitalized as the acquisition of net investment properties in the consolidated balance sheets and $145 of such costs are included in acquisition related costs in the consolidated statements of operations and comprehensive income (loss). Unpaid amounts are included in due to related parties in the consolidated balance sheets. (c) For each property that is managed by Inland Commercial Real Estate Services LLC (the “Real Estate Manager”) (and its predecessor), the Company pays a monthly real estate management fee of up to 1.9% of the gross income from any single-tenant, net-leased property, and up to 3.9% of the gross income from any other property type. The Real Estate Manager determines, in its sole discretion, the amount of the fee with respect to a particular property, subject to the limitations. For each property that is managed directly by the Real Estate Manager or its affiliates, the Company pays the Real Estate Manager a separate leasing fee. Further, in the event that the Company engages its Real Estate Manager to provide construction management services for a property, the Company pays a separate construction management fee. Leasing fees are included in deferred costs, net and construction management fees are included in building and other improvements in the consolidated balance sheets. The Company also reimburses the Real Estate Manager and its affiliates for property-level expenses that they pay or incur on the Company’s behalf, including the salaries, bonuses and benefits of persons performing services for the Real Estate Manager and its affiliates except for the salaries, bonuses and benefits of persons who also serve as an executive officer of the Real Estate Manager or the Company. Real estate management fees and reimbursable expenses are included in property operating expenses in the consolidated statements of operations and comprehensive income (loss). (d) The Company pays the Business Manager an annual business management fee equal to 0.65% of its “average invested assets.” The fee is payable quarterly in an amount equal to 0.1625% of its average invested assets as of the last day of the immediately preceding quarter. “Average invested assets” means, for any period, the average of the aggregate book value of the Company’s assets, including all intangibles and goodwill, invested, directly or indirectly, in equity interests in, and loans secured by, properties, as well as amounts invested in securities and consolidated and unconsolidated joint ventures or other partnerships, before reserves for amortization and depreciation or bad debts, impairments or other similar non-cash reserves, computed by taking the average of these values at the end of each month during the relevant calendar quarter. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 14 – FAIR VALUE MEASUREMENTS Fair Value Hierarchy The Company defines fair value based on the price that it believes would be received upon sale of an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below: Level 1 − Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. Level 2 − Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 − Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company has estimated the fair value of its financial and non-financial instruments using available market information and valuation methodologies the Company believes to be appropriate for these purposes. Recurring Fair Value Measurements For assets and liabilities measured at fair value on a recurring basis, the table below presents the fair value of the Company’s cash flow hedges as well as their classification on the consolidated balance sheets as of September 30, 2018 and December 31, 2017, respectively. Fair Value Level 1 Level 2 Level 3 Total September 30, 2018 Interest rate swap agreements - Other assets $ — $ 13,459 $ — $ 13,459 December 31, 2017 Interest rate swap agreements - Other assets $ — $ 6,136 $ — $ 6,136 Interest rate swap agreements - Other liabilities $ — $ 340 $ — $ 340 The fair value of derivative instruments was estimated based on data observed in the forward yield curve which is widely observed in the marketplace. The Company also incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the counterparty's nonperformance risk in the fair value measurements which utilize Level 3 inputs, such as estimates of current credit spreads. The Company has determined that the credit valuation adjustments are not significant to the overall valuation of its derivative interest rate swap agreements and therefore has classified these in Level 2 of the hierarchy. Non-recurring Fair Value Measurements The table below presents activity for the Company’s assets measured at fair value on a non-recurring basis. The Company recognized an impairment charge of $5,000 to its investment in the Mainstreet JV to reflect this investment at its estimated fair value for the three and nine months ended September 30, 2018 which is included in provision for impairment of unconsolidated entities on the consolidated statements of operations and comprehensive income (loss). During the three and nine months ended September 30 no Fair Value Level 1 Level 2 Level 3 Total Total Impairment Loss Investment in unconsolidated entities $ — $ — $ 4,589 $ 4,589 $ 5,000 Total $ — $ — $ 4,589 $ 4,589 $ 5,000 As of September 30, 2018, the Company identified indicators of impairment in its investment in the Mainstreet JV. Such indicators included construction overruns, loss of a planned tenant and the related cost of re-leasing. The fair value of this investment was based on the value of the underlying properties and was The |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 15 – SUBSEQUENT EVENTS Distributions On September 5, 2018, the Company’s board of directors declared cash distributions payable to stockholders of record at the close of business on September 28, 2018, in the amount equal to $0.335 per share, or $11,924, which represents an annualized rate of 6% based on the Estimated Per Share NAV, payable in arrears the following quarter. In October 2018, the Company reinvested and repurchased the following shares and amounts: Distributions Reinvested through the DRP Number of Shares Issued through the DRP Amount of Shares Repurchased through the SRP Number of Shares Repurchased through the SRP $ 5,618 251,431 $ 5,618 253,776 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
General | General The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and require 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. In the opinion of management, all adjustments necessary for a fair statement, in all material respects, of the financial position and results of operations for the periods are presented. Actual results could differ from those estimates. The results of operations for the interim periods are not necessarily indicative of the results for the entire year. Certain amounts in the prior period consolidated financial statements have been reclassified to conform with the current year presentation. |
Recently Adopted Accounting and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In November 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, requires that amounts described as restricted cash and restricted cash equivalents be included in beginning and ending-of-period reconciliation of cash shown on the statement of cash flows. Amounts included in restricted cash represent those required to be set aside by lenders for real estate taxes, insurance, capital expenditures and tenant improvements on our existing properties. These amounts also include post close escrows for tenant improvements, leasing commissions, master lease, general repairs and maintenance, and are classified as restricted cash on the Company’s consolidated balance sheets. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Company’s consolidated balance sheets to such amounts shown in the Company’s consolidated statements of cash flows: September 30, 2018 2017 Cash and cash equivalents $ 16,643 $ 10,874 Restricted cash 1,007 5,118 Total cash, cash equivalents, and restricted cash $ 17,650 $ 15,992 On January 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers Leases (Topic 842) Recently Issued Accounting Pronouncements In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). On July 30, 2018 the FASB issued ASU No. 2018-11, Targeted Improvements, Leases (Topic 842) ASU No. 2018-11 also provides companies with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company expects to adopt the ASU No. 2016-02 on its effective date and For lessees, ASU No. 2016-02 establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. The Company is the lessee under a ground lease, for which it will be required to recognize a ROU asset and a related lease liability on its consolidated balance sheets upon adoption. Both ASU No. 2016-02 and ASU No. 2018-11 are effective for the Company on January 1, 2019. The Company is continuing to evaluate this guidance and the impact, both as lessor and lessee on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Company’s consolidated balance sheets to such amounts shown in the Company’s consolidated statements of cash flows: September 30, 2018 2017 Cash and cash equivalents $ 16,643 $ 10,874 Restricted cash 1,007 5,118 Total cash, cash equivalents, and restricted cash $ 17,650 $ 15,992 |
Investment in Unconsolidated _2
Investment in Unconsolidated Entities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Schedule of Joint Ventures | The following table summarizes the Company’s joint ventures: Investment in unconsolidated entities Entity Company's Profit/Loss Allocation at September 30, 2018 Remaining Commitment September 30, 2018 (b) December 31, 2017 Mainstreet Texas Development Fund, LLC ("Mainstreet JV") (a) 83.7% $ — $ 4,589 $ 7,125 $ 4,589 $ 7,125 (a) In August 2017, the Company, through a wholly owned taxable REIT subsidiary, made an equity commitment to Mainstreet JV in order to develop, construct, lease, finance and sell parcels of land and related building improvements including personal property which are to be operated as rapid recovery healthcare facilities located in Beaumont, Amarillo and Temple, Texas. In August 2018, the Company’s subsidiary made an additional capital contribution to Mainstreet JV to fund cost overruns. The investment balance includes capitalized acquisition, interest and legal costs of $337. (b) During the three and nine months ended September 30, 2018, the Company recorded an impairment to its investment in the Mainstreet JV of $5,000 to write down the investment to its estimated fair value based on the Company’s evaluations. See Note 14 - "Fair Value Measurements" for further information. |
Acquired Intangible Assets an_2
Acquired Intangible Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Liabilities | The following table summarizes the Company’s identified intangible assets and liabilities as of September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 Intangible assets: Acquired in-place lease value $ 165,182 $ 165,182 Acquired above market lease value 45,824 45,824 Accumulated amortization (90,184 ) (72,348 ) Acquired lease intangibles, net $ 120,822 $ 138,658 Intangible liabilities: Acquired below market lease value $ 71,551 $ 71,551 Acquired above market ground lease 5,169 5,169 Accumulated amortization (18,135 ) (14,450 ) Acquired below market lease intangibles, net $ 58,585 $ 62,270 |
Schedule of Amortization of Acquired In Place Lease Value, Above Market Ground Lease, Above and Below Market Lease Values | Amortization pertaining to acquired in-place lease value, above market ground lease, above market lease value and below market lease value is summarized below: Three Months Ended September 30, Nine Months Ended September 30, Amortization recorded as amortization expense: 2018 2017 2018 2017 Acquired in-place lease value $ 4,832 $ 5,640 $ 14,851 $ 16,508 Amortization recorded as a reduction to property operating expense: Acquired above market ground lease $ 23 $ 23 $ 70 $ 70 Amortization recorded as a (reduction) increase to rental income: Acquired above market leases $ (910 ) $ (1,212 ) $ (2,985 ) $ (3,304 ) Acquired below market leases 1,310 1,187 3,615 4,303 Net rental income (decrease) increase $ 400 $ (25 ) $ 630 $ 999 |
Schedule of Estimated Amortization of Intangible Lease Assets and Liabilities | Estimated amortization of the respective intangible lease assets and liabilities as of September 30, 2018 for each of the five succeeding years and thereafter is as follows: Acquired In-Place Leases Above Market Leases Below Market Leases Above Market Ground Lease 2018 (remainder of year) $ 4,559 $ 906 $ (1,099 ) $ (23 ) 2019 16,882 3,405 (4,297 ) (94 ) 2020 13,884 3,066 (4,078 ) (94 ) 2021 11,427 2,997 (3,896 ) (94 ) 2022 8,781 2,691 (3,636 ) (94 ) Thereafter 33,915 18,309 (36,690 ) (4,490 ) Total $ 89,448 $ 31,374 $ (53,696 ) $ (4,889 ) |
Debt and Derivative Instrumen_2
Debt and Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Mortgages and Credit Facilities Payable | As of September 30, 2018 and December 31, 2017, the Company had the following mortgages and credit facility payable: September 30, 2018 December 31, 2017 Type of Debt Principal Amount Weighted Average Interest Rate Principal Amount Weighted Average Interest Rate Fixed rate mortgages payable $ 171,699 4.25 % $ 171,851 4.25 % Variable rate mortgages payable with swap agreements 252,244 3.33 % 383,517 3.49 % Variable rate mortgages payable 684 3.70 % 54,153 3.26 % Mortgages payable $ 424,627 3.71 % $ 609,521 3.69 % Credit facility payable 278,523 4.07 % 83,800 3.21 % Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps $ 703,150 3.85 % $ 693,321 3.63 % Add: Unamortized mortgage premiums 1,841 2,316 Less: Unamortized debt issuance costs (5,104 ) (4,172 ) Total debt $ 699,887 $ 691,465 |
Schedule of Principal Payments and Maturities of Company's Debt | As of September 30, 2018, scheduled principal payments and maturities on the Company’s debt were as follows: September 30, 2018 Scheduled Principal Payments and Maturities by Year: Scheduled Principal Payments Maturities of Mortgage Loans Maturity of Credit Facility Total 2018 (remainder of the year) $ 69 $ — $ — $ 69 2019 215 7,447 — 7,662 2020 897 — — 897 2021 1,531 82,740 — 84,271 2022 615 101,537 128,523 230,675 Thereafter 963 228,613 150,000 379,576 Total $ 4,290 $ 420,337 $ 278,523 $ 703,150 |
Summary of Interest Rate Swap Contracts Outstanding | The following table summarizes the Company’s interest rate swap contracts outstanding as of September 30, 2018. Date Entered Effective Date Maturity Date Pay Fixed Rate (a) Notional Amount Fair Value at September 30, 2018 Assets February 11, 2015 March 2, 2015 March 1, 2022 2.02 % 6,114 173 April 7, 2015 April 7, 2015 April 7, 2022 1.74 % 49,400 1,883 September 17, 2015 September 17, 2015 September 17, 2022 1.90 % 13,700 514 October 2, 2015 November 1, 2015 November 1, 2022 1.79 % 13,100 561 December 23, 2015 December 23, 2015 January 2, 2026 2.30 % 26,000 1,054 January 25, 2016 February 1, 2016 February 1, 2021 1.40 % 38,000 1,249 June 7, 2016 July 1, 2016 July 1, 2023 1.42 % 43,680 2,884 July 21, 2016 August 1, 2016 August 1, 2023 1.30 % 47,550 3,468 June 5, 2017 May 31, 2017 May 15, 2022 1.90 % 14,700 501 August 23, 2018 September 4, 2018 August 1, 2023 2.73 % 60,000 474 August 23, 2018 September 4, 2018 August 1, 2023 2.74 % 25,000 196 August 23, 2018 September 4, 2018 August 1, 2023 2.74 % 25,000 189 August 23, 2018 September 4, 2018 August 1, 2023 2.73 % 40,000 313 $ 402,244 $ 13,459 (a) Receive floating rate index based upon 1 month LIBOR. At September 30, 2018, the 1 month LIBOR was 2.26%. |
Schedule of Derivative Financial Instruments on Consolidated Statements of Operations and Other Comprehensive Income (Loss) | The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2018 and 2017. Three Months Ended September 30, Nine Months Ended September 30, Derivatives in Cash Flow Hedging Relationships 2018 2017 2018 2017 Effective portion of derivatives $ 1,121 $ (268 ) $ 7,976 $ (1,721 ) Reclassification adjustment for amounts included in net gain or loss (effective portion) $ (245 ) $ 507 $ (300 ) $ 2,002 Ineffective portion of derivatives $ — $ (1 ) $ (13 ) $ 12 |
Distributions (Tables)
Distributions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Distributions [Abstract] | |
Schedule of Distributions Paid and Declared | The table below presents the distributions paid and declared during the three and nine months ended September 30, 2018 and 2017. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Distributions paid $ 11,924 $ 13,482 $ 28,388 $ 39,989 Distributions declared $ 11,924 $ 13,484 $ 35,776 $ 39,896 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Change in Earnout Liability for Acquisition of Certain Properties | The table below presents the change in the Company’s Earnout liability for the nine months ended September 30, 2018 and 2017. Nine Months Ended September 30, 2018 2017 Earnout liability-beginning of period $ 1,050 $ 6,856 Increases: Additional earnout liability 816 — Amortization expense 24 28 Decreases: Earnout payments (1,865 ) (6,415 ) Other: Adjustments to acquisition related costs (25 ) 1,084 Earnout liability – end of period $ — $ 1,553 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Restricted Shares and Restricted Share Units | A summary table of the status of the restricted shares and restricted share units is presented below: Restricted Shares Restricted Share Units Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding at December 31, 2017 2,543 904 $ 78 $ 78 Granted 1,677 624 51 51 Vested (996 ) (353 ) (30 ) (30 ) Converted — — — — Forfeited — — — — Outstanding at September 30, 2018 3,224 1,175 $ 99 $ 99 |
Transactions with Related Par_2
Transactions with Related Parties (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table summarizes the Company’s related party transactions for the three and nine months ended September 30, 2018 and 2017. Certain compensation and fees payable to the Business Manager for services provided to the Company are limited to maximum amounts. Three Months Ended September 30, Nine Months Ended September 30, Unpaid amounts as of 2018 2017 2018 2017 September 30, 2018 December 31, 2017 General and administrative reimbursements (a) $ 279 $ 345 $ 1,102 $ 1,319 $ 288 $ 203 Acquisition related costs $ — $ 54 $ 8 $ 273 $ — $ — Acquisition fees 12 180 28 1,216 12 51 Total acquisition costs and fees (b) $ 12 $ 234 $ 36 $ 1,489 $ 12 $ 51 Real estate management fees $ 1,090 $ 1,178 $ 3,615 $ 3,638 $ — $ — Property operating expenses 289 282 857 832 — — Construction management fees 67 45 177 98 70 35 Leasing fees 69 51 214 143 116 51 Total real estate management related costs (c) $ 1,515 $ 1,556 $ 4,863 $ 4,711 $ 186 $ 86 Business management fees (d) $ 2,338 $ 2,311 $ 7,000 $ 6,871 $ 2,339 $ 2,325 (a) The Business Manager and its related parties are entitled to reimbursement for certain general and administrative expenses incurred by the Business Manager or its related parties relating to the Company’s administration. Such costs are included in general and administrative expenses in the consolidated statements of operations and comprehensive income (loss). Unpaid amounts are included in due to related parties in the consolidated balance sheets. (b) The Company pays the Business Manager or its affiliates a fee equal to 1.5% of the “contract purchase price,” as defined, of each asset acquired. The Business Manager and its related parties are also reimbursed for acquisition and transaction related costs of the Business Manager and its related parties relating to the Company’s acquisition activities, regardless of whether the Company acquires the real estate assets. Of the $12 related party acquisition costs and fees incurred during the three months ended September 30, 2018, $12 are capitalized as the acquisition of net investment properties in the consolidated balance sheets. Of the $36 related party acquisition costs and fees incurred during the nine months ended September 30, 2018, $12 are capitalized as the acquisition of net investment properties in the consolidated balance sheets and $24 of such costs are included in acquisition related costs in the consolidated statements of operations and comprehensive income (loss). Of the $234 related party acquisition costs and fees incurred during the three months ended September 30, 2017, $98 are capitalized as the acquisition of net investment properties in the consolidated balance sheets and $52 of such costs are included in acquisition related costs in the consolidated statements of operations and comprehensive income (loss). Of the $1,489 related party acquisition costs and fees incurred during the nine months ended September 30, 2017, $1,344 are capitalized as the acquisition of net investment properties in the consolidated balance sheets and $145 of such costs are included in acquisition related costs in the consolidated statements of operations and comprehensive income (loss). Unpaid amounts are included in due to related parties in the consolidated balance sheets. (c) For each property that is managed by Inland Commercial Real Estate Services LLC (the “Real Estate Manager”) (and its predecessor), the Company pays a monthly real estate management fee of up to 1.9% of the gross income from any single-tenant, net-leased property, and up to 3.9% of the gross income from any other property type. The Real Estate Manager determines, in its sole discretion, the amount of the fee with respect to a particular property, subject to the limitations. For each property that is managed directly by the Real Estate Manager or its affiliates, the Company pays the Real Estate Manager a separate leasing fee. Further, in the event that the Company engages its Real Estate Manager to provide construction management services for a property, the Company pays a separate construction management fee. Leasing fees are included in deferred costs, net and construction management fees are included in building and other improvements in the consolidated balance sheets. The Company also reimburses the Real Estate Manager and its affiliates for property-level expenses that they pay or incur on the Company’s behalf, including the salaries, bonuses and benefits of persons performing services for the Real Estate Manager and its affiliates except for the salaries, bonuses and benefits of persons who also serve as an executive officer of the Real Estate Manager or the Company. Real estate management fees and reimbursable expenses are included in property operating expenses in the consolidated statements of operations and comprehensive income (loss). (d) The Company pays the Business Manager an annual business management fee equal to 0.65% of its “average invested assets.” The fee is payable quarterly in an amount equal to 0.1625% of its average invested assets as of the last day of the immediately preceding quarter. “Average invested assets” means, for any period, the average of the aggregate book value of the Company’s assets, including all intangibles and goodwill, invested, directly or indirectly, in equity interests in, and loans secured by, properties, as well as amounts invested in securities and consolidated and unconsolidated joint ventures or other partnerships, before reserves for amortization and depreciation or bad debts, impairments or other similar non-cash reserves, computed by taking the average of these values at the end of each month during the relevant calendar quarter. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Cash Flow Hedges and Classification on Consolidated Balance Sheets | For assets and liabilities measured at fair value on a recurring basis, the table below presents the fair value of the Company’s cash flow hedges as well as their classification on the consolidated balance sheets as of September 30, 2018 and December 31, 2017, respectively. Fair Value Level 1 Level 2 Level 3 Total September 30, 2018 Interest rate swap agreements - Other assets $ — $ 13,459 $ — $ 13,459 December 31, 2017 Interest rate swap agreements - Other assets $ — $ 6,136 $ — $ 6,136 Interest rate swap agreements - Other liabilities $ — $ 340 $ — $ 340 |
Schedule of Assets Measured at Fair Value on a Non-Recurring Basis | The table below presents activity for the Company’s assets measured at fair value on a non-recurring basis. The Company recognized an impairment charge of $5,000 to its investment in the Mainstreet JV to reflect this investment at its estimated fair value for the three and nine months ended September 30, 2018 which is included in provision for impairment of unconsolidated entities on the consolidated statements of operations and comprehensive income (loss). During the three and nine months ended September 30 no Fair Value Level 1 Level 2 Level 3 Total Total Impairment Loss Investment in unconsolidated entities $ — $ — $ 4,589 $ 4,589 $ 5,000 Total $ — $ — $ 4,589 $ 4,589 $ 5,000 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Schedule of Reinvested and Repurchased Shares | In October 2018, the Company reinvested and repurchased the following shares and amounts: Distributions Reinvested through the DRP Number of Shares Issued through the DRP Amount of Shares Repurchased through the SRP Number of Shares Repurchased through the SRP $ 5,618 251,431 $ 5,618 253,776 |
Organization (Narrative) (Detai
Organization (Narrative) (Details) | Jan. 16, 2018 | Sep. 30, 2018ft²PropertyState |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Number of retail properties owned | Property | 59 | |
Square footage of real estate properties owned | ft² | 6,870,124 | |
Number of states in which company owns real estate properties | State | 24 | |
Weighted average physical occupancy rate of property portfolio | 94.10% | |
Weighted average economic occupancy rate of property portfolio | 94.70% | |
Description of reverse stock split | On January 16, 2018, the Company effected a 1-for-2.5 reverse stock split of its issued and outstanding common stock whereby every 2.5 shares of issued and outstanding common stock were converted into one share of its common stock (the “Reverse Stock Split”). In accordance with U.S. GAAP, all share information presented has been retroactively adjusted to reflect the Reverse Stock Split. | |
Reverse stock, split ratio | 0.4 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Accounting Standards Update 2016-18 [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Decrease in net cash used in investing activities | $ 878 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Reconciliation of Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 16,643 | $ 11,904 | $ 10,874 | |
Restricted cash | 1,007 | 4,940 | 5,118 | |
Total cash, cash equivalents, and restricted cash | $ 17,650 | $ 16,844 | $ 15,992 | $ 16,857 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) | Oct. 16, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Equity [Line Items] | ||||
Common stock, shares issued | 33,534,022 | 35,338,249 | 35,498,444 | |
Proceeds from offering | $ 834,399 | |||
Common stock, shares outstanding | 35,338,249 | 35,498,444 | ||
Distribution reinvestment plan, shares | 4,147,832 | |||
Shares repurchased through the share repurchase program | 2,345,045 | |||
Distribution reinvested | $ 13,720,000 | |||
Stock repurchase program, amount | 17,084,000 | $ 13,085,000 | ||
Other liabilities | $ 12,838,000 | $ 11,744,000 | ||
Repurchase of Shares Owned for One Year [Member] | ||||
Equity [Line Items] | ||||
Percentage of share price on repurchase of shares | 92.50% | |||
Repurchase of Shares Owned for Four Years [Member] | ||||
Equity [Line Items] | ||||
Percentage of share price on repurchase of shares | 100.00% | |||
Repurchase of Shares Owned upon Death and Qualifying Disability [Member] | ||||
Equity [Line Items] | ||||
Percentage of share price on repurchase of shares | 100.00% | |||
Stock Repurchase Program [Member] | ||||
Equity [Line Items] | ||||
Other liabilities | $ 5,618,000 | $ 2,530,000 | ||
Minimum [Member] | ||||
Equity [Line Items] | ||||
Stock repurchase program, to be held | 1 year | |||
Maximum [Member] | ||||
Equity [Line Items] | ||||
Stock repurchase program shares issued in percentage | 5.00% | |||
DRP [Member] | ||||
Equity [Line Items] | ||||
Distribution reinvested | $ 13,720,000 | $ 20,415,000 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Business Combinations [Abstract] | ||||
Acquisition cost | $ 12 | $ 222 | $ 65 | $ 2,781 |
Capitalized acquisition costs and fees in net investment properties | $ 12 | 160 | 12 | 1,519 |
Acquisition related costs in adjustment to deferred investment property | $ 62 | 25 | $ 1,262 | |
Acquisition and dead deal costs excluding deferred investment property incurred during the period | $ 53 |
Investment in Unconsolidated _3
Investment in Unconsolidated Entities (Schedule of Joint Ventures) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | ||
Schedule Of Equity Method Investments [Line Items] | ||||
Investment in unconsolidated entities | $ 4,589 | [1] | $ 7,125 | |
Mainstreet Texas Development Fund, LLC ("Mainstreet JV") [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Company's Profit/Loss Allocation | [2] | 83.70% | ||
Investment in unconsolidated entities | [2] | $ 4,589 | [1] | $ 7,125 |
[1] | During the three and nine months ended September 30, 2018, the Company recorded an impairment to its investment in the Mainstreet JV of $5,000 to write down the investment to its estimated fair value based on the Company’s evaluations. See Note 14 - "Fair Value Measurements" for further information. | |||
[2] | In August 2017, the Company, through a wholly owned taxable REIT subsidiary, made an equity commitment to Mainstreet JV in order to develop, construct, lease, finance and sell parcels of land and related building improvements including personal property which are to be operated as rapid recovery healthcare facilities located in Beaumont, Amarillo and Temple, Texas. In August 2018, the Company’s subsidiary made an additional capital contribution to Mainstreet JV to fund cost overruns. The investment balance includes capitalized acquisition, interest and legal costs of $337. |
Investment in Unconsolidated _4
Investment in Unconsolidated Entities (Schedule of Joint Ventures) (Parenthetical) (Details) - Mainstreet Texas Development Fund, LLC ("Mainstreet JV") [Member] $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | |
Schedule Of Equity Method Investments [Line Items] | ||
Investment balance includes capitalized acquisition, interest and legal costs | $ 337 | $ 337 |
Impairment to investment | $ 5,000 | $ 5,000 |
Acquired Intangible Assets an_3
Acquired Intangible Assets and Liabilities (Schedule of Intangible Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Intangible assets: | ||
Accumulated amortization | $ (90,184) | $ (72,348) |
Acquired lease intangibles, net | 120,822 | 138,658 |
Intangible liabilities: | ||
Acquired below market lease value | 71,551 | 71,551 |
Acquired above market ground lease | 5,169 | 5,169 |
Accumulated amortization | (18,135) | (14,450) |
Acquired below market lease intangibles, net | 58,585 | 62,270 |
Acquired in-place lease value [Member] | ||
Intangible assets: | ||
Acquired intangible assets | 165,182 | 165,182 |
Acquired lease intangibles, net | 89,448 | |
Acquired above market lease value [Member] | ||
Intangible assets: | ||
Acquired intangible assets | 45,824 | $ 45,824 |
Acquired lease intangibles, net | $ 31,374 |
Acquired Intangible Assets an_4
Acquired Intangible Assets and Liabilities - Narrative (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Acquired in-place lease value [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible liabilities, weighted average amortization period | 10 years |
Acquired above market lease value [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible liabilities, weighted average amortization period | 14 years |
Acquired below market lease value [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible liabilities, weighted average amortization period | 19 years |
Acquired Above market ground lease [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible liabilities, weighted average amortization period | 55 years |
Acquired Intangible Assets an_5
Acquired Intangible Assets and Liabilities (Schedule of Amortization of Acquired In Place Lease Value, Above Market Ground Lease, Above and Below Market Lease Values) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Amortization recorded as a (reduction) increase to rental income | $ 400 | $ (25) | $ 630 | $ 999 |
Acquired in-place lease value [Member] | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Amortization recorded as amortization expense | 4,832 | 5,640 | 14,851 | 16,508 |
Acquired above market ground lease [Member] | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Amortization recorded as a reduction to property operating expense | 23 | 23 | 70 | 70 |
Acquired above market lease value [Member] | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Amortization recorded as a (reduction) increase to rental income | (910) | (1,212) | (2,985) | (3,304) |
Acquired below market lease value [Member] | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Amortization recorded as a (reduction) increase to rental income | $ 1,310 | $ 1,187 | $ 3,615 | $ 4,303 |
Acquired Intangible Assets an_6
Acquired Intangible Assets and Liabilities (Schedule of Estimated Amortization of Intangible Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Future amortization for acquired in-place and above market lease assets: | ||
Acquired lease intangibles, net | $ 120,822 | $ 138,658 |
Future amortization for below market lease liabilities: | ||
2018 (remainder of year) | (1,099) | |
2,019 | (4,297) | |
2,020 | (4,078) | |
2,021 | (3,896) | |
2,022 | (3,636) | |
Thereafter | (36,690) | |
Total | (53,696) | |
Future amortization for above market ground lease liabilities: | ||
2018 (remainder of year) | (23) | |
2,019 | (94) | |
2,020 | (94) | |
2,021 | (94) | |
2,022 | (94) | |
Thereafter | (4,490) | |
Total | (4,889) | |
Acquired in-place lease value [Member] | ||
Future amortization for acquired in-place and above market lease assets: | ||
2018 (remainder of year) | 4,559 | |
2,019 | 16,882 | |
2,020 | 13,884 | |
2,021 | 11,427 | |
2,022 | 8,781 | |
Thereafter | 33,915 | |
Acquired lease intangibles, net | 89,448 | |
Acquired above market lease value [Member] | ||
Future amortization for acquired in-place and above market lease assets: | ||
2018 (remainder of year) | 906 | |
2,019 | 3,405 | |
2,020 | 3,066 | |
2,021 | 2,997 | |
2,022 | 2,691 | |
Thereafter | 18,309 | |
Acquired lease intangibles, net | $ 31,374 |
Debt and Derivative Instrumen_3
Debt and Derivative Instruments (Schedule of Mortgages and Credit Facility Payable) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Mortgage Loans On Real Estate [Line Items] | ||
Mortgages payable | $ 424,627 | $ 609,521 |
Credit facility payable | 278,523 | 83,800 |
Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps | 703,150 | 693,321 |
Add: Unamortized mortgage premiums | 1,841 | 2,316 |
Less: Unamortized debt issuance costs | (5,104) | (4,172) |
Total debt | $ 699,887 | $ 691,465 |
Mortgages Payable, Weighted Average Interest Rate | 3.71% | 3.69% |
Credit Facilities Payable, Weighted Average Interest Rate | 4.07% | 3.21% |
Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps, Weighted Average Interest Rate | 3.85% | 3.63% |
Fixed rate mortgages payable [Member] | ||
Mortgage Loans On Real Estate [Line Items] | ||
Mortgages payable | $ 171,699 | $ 171,851 |
Mortgages Payable, Weighted Average Interest Rate | 4.25% | 4.25% |
Variable rate mortgages payable with swap agreements [Member] | ||
Mortgage Loans On Real Estate [Line Items] | ||
Mortgages payable | $ 252,244 | $ 383,517 |
Mortgages Payable, Weighted Average Interest Rate | 3.33% | 3.49% |
Variable rate mortgages payable [Member] | ||
Mortgage Loans On Real Estate [Line Items] | ||
Mortgages payable | $ 684 | $ 54,153 |
Mortgages Payable, Weighted Average Interest Rate | 3.70% | 3.26% |
Debt and Derivative Instrumen_4
Debt and Derivative Instruments (Narrative) (Details) | Aug. 01, 2018USD ($) | Sep. 30, 2018USD ($)DebtInstrumentDerivativeInstrument | Sep. 30, 2018USD ($)PropertyDebtInstrumentDerivativeInstrumentLoan | Jul. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |||||
Carrying value of debt | $ 703,150,000 | $ 703,150,000 | $ 693,321,000 | ||
Estimated fair value of debt | 700,117,000 | 700,117,000 | 684,621,000 | ||
Credit facility, maximum borrowing capacity | $ 350,000,000 | $ 110,000,000 | |||
Outstanding line of credit | 278,523,000 | $ 278,523,000 | $ 83,800,000 | ||
Number of properties pledged as collateral | Property | 28 | ||||
Gain on early termination of interest rate swap agreements | 1,151,000 | $ 1,151,000 | |||
Loss on extinguishment of debt | $ 411,000 | $ 411,000 | |||
Number of loans repaid prior to maturity | Loan | 10 | ||||
Amount expected to be reclassified from accumulated other comprehensive income into income in the next twelve months | $ 2,293,000 | ||||
Mortgages Payable [Member] | |||||
Debt Instrument [Line Items] | |||||
Weighted Average Years to Maturity | 4 years 10 months 2 days | ||||
Mortgages payable, covenant compliance | the Company was current on all of the payments and in compliance with all financial covenants. | ||||
Interest Rate Swap Agreements [Member] | |||||
Debt Instrument [Line Items] | |||||
Number of derivative instruments paid off | DerivativeInstrument | 10 | 10 | |||
Notional amount | $ 131,300,000 | $ 131,300,000 | |||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Carrying value of debt | 278,523,000 | $ 278,523,000 | |||
Credit facility, maximum borrowing capacity | 200,000,000 | ||||
Line of credit accordion feature to increase available borrowings | $ 700,000,000 | ||||
Credit facility, maturity date | Aug. 1, 2022 | Aug. 1, 2022 | |||
Line of credit facility, number of months extension available | 12 months | ||||
Outstanding line of credit | 128,523,000 | $ 128,523,000 | |||
Credit facility, interest rate | 3.82% | ||||
Line of credit facility, expiration date, extension period | 1 year | ||||
Credit facility available for borrowing | 71,477,000 | $ 71,477,000 | |||
Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 150,000,000 | ||||
Credit facility, maturity date | Aug. 1, 2023 | Aug. 1, 2023 | |||
Outstanding line of credit | $ 150,000,000 | $ 150,000,000 | |||
Credit facility, interest rate | 4.29% | ||||
Mortgage Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Number of debt instruments paid off | DebtInstrument | 12 | 12 | |||
Principal balance of debt instruments paid off | $ 184,700,000 | $ 184,700,000 |
Debt and Derivative Instrumen_5
Debt and Derivative Instruments (Schedule of Principal Payments and Maturities of Company's Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
2018 (remainder of the year) | $ 69 | |
2,019 | 7,662 | |
2,020 | 897 | |
2,021 | 84,271 | |
2,022 | 230,675 | |
Thereafter | 379,576 | |
Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps | 703,150 | $ 693,321 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
2,022 | 128,523 | |
Thereafter | 150,000 | |
Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps | 278,523 | |
Scheduled Principal Payments [Member] | ||
Debt Instrument [Line Items] | ||
2018 (remainder of the year) | 69 | |
2,019 | 215 | |
2,020 | 897 | |
2,021 | 1,531 | |
2,022 | 615 | |
Thereafter | 963 | |
Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps | 4,290 | |
Maturities of Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
2,019 | 7,447 | |
2,021 | 82,740 | |
2,022 | 101,537 | |
Thereafter | 228,613 | |
Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps | $ 420,337 |
Debt and Derivative Instrumen_6
Debt and Derivative Instruments (Summary of Interest Rate Swap Contracts Outstanding) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018USD ($) | ||
Derivative [Line Items] | ||
Derivative instrument, notional amount | $ 402,244 | |
Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 13,459 | |
Interest Rate Swap One [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | Feb. 11, 2015 | |
Derivative instrument, effective date | Mar. 2, 2015 | |
Derivative instrument, maturity date | Mar. 1, 2022 | |
Derivative instrument, pay fixed interest rate | 2.02% | [1] |
Derivative instrument, notional amount | $ 6,114 | |
Interest Rate Swap One [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 173 | |
Interest Rate Swap Two [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | Apr. 7, 2015 | |
Derivative instrument, effective date | Apr. 7, 2015 | |
Derivative instrument, maturity date | Apr. 7, 2022 | |
Derivative instrument, pay fixed interest rate | 1.74% | [1] |
Derivative instrument, notional amount | $ 49,400 | |
Interest Rate Swap Two [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 1,883 | |
Interest Rate Swap Three [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | Sep. 17, 2015 | |
Derivative instrument, effective date | Sep. 17, 2015 | |
Derivative instrument, maturity date | Sep. 17, 2022 | |
Derivative instrument, pay fixed interest rate | 1.90% | [1] |
Derivative instrument, notional amount | $ 13,700 | |
Interest Rate Swap Three [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 514 | |
Interest Rate Swap Four [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | Oct. 2, 2015 | |
Derivative instrument, effective date | Nov. 1, 2015 | |
Derivative instrument, maturity date | Nov. 1, 2022 | |
Derivative instrument, pay fixed interest rate | 1.79% | [1] |
Derivative instrument, notional amount | $ 13,100 | |
Interest Rate Swap Four [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 561 | |
Interest Rate Swap Five [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | Dec. 23, 2015 | |
Derivative instrument, effective date | Dec. 23, 2015 | |
Derivative instrument, maturity date | Jan. 2, 2026 | |
Derivative instrument, pay fixed interest rate | 2.30% | [1] |
Derivative instrument, notional amount | $ 26,000 | |
Interest Rate Swap Five [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 1,054 | |
Interest Rate Swap Six [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | Jan. 25, 2016 | |
Derivative instrument, effective date | Feb. 1, 2016 | |
Derivative instrument, maturity date | Feb. 1, 2021 | |
Derivative instrument, pay fixed interest rate | 1.40% | [1] |
Derivative instrument, notional amount | $ 38,000 | |
Interest Rate Swap Six [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 1,249 | |
Interest Rate Swap Seven [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | Jun. 7, 2016 | |
Derivative instrument, effective date | Jul. 1, 2016 | |
Derivative instrument, maturity date | Jul. 1, 2023 | |
Derivative instrument, pay fixed interest rate | 1.42% | [1] |
Derivative instrument, notional amount | $ 43,680 | |
Interest Rate Swap Seven [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 2,884 | |
Interest Rate Swap Eight [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | Jul. 21, 2016 | |
Derivative instrument, effective date | Aug. 1, 2016 | |
Derivative instrument, maturity date | Aug. 1, 2023 | |
Derivative instrument, pay fixed interest rate | 1.30% | [1] |
Derivative instrument, notional amount | $ 47,550 | |
Interest Rate Swap Eight [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 3,468 | |
Interest Rate Swap Nine [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | Jun. 5, 2017 | |
Derivative instrument, effective date | May 31, 2017 | |
Derivative instrument, maturity date | May 15, 2022 | |
Derivative instrument, pay fixed interest rate | 1.90% | [1] |
Derivative instrument, notional amount | $ 14,700 | |
Interest Rate Swap Nine [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 501 | |
Interest Rate Swap Ten [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | Aug. 23, 2018 | |
Derivative instrument, effective date | Sep. 4, 2018 | |
Derivative instrument, maturity date | Aug. 1, 2023 | |
Derivative instrument, pay fixed interest rate | 2.73% | [1] |
Derivative instrument, notional amount | $ 60,000 | |
Interest Rate Swap Ten [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 474 | |
Interest Rate Swap Eleven [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | Aug. 23, 2018 | |
Derivative instrument, effective date | Sep. 4, 2018 | |
Derivative instrument, maturity date | Aug. 1, 2023 | |
Derivative instrument, pay fixed interest rate | 2.74% | [1] |
Derivative instrument, notional amount | $ 25,000 | |
Interest Rate Swap Eleven [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 196 | |
Interest Rate Swap Twelve [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | Aug. 23, 2018 | |
Derivative instrument, effective date | Sep. 4, 2018 | |
Derivative instrument, maturity date | Aug. 1, 2023 | |
Derivative instrument, pay fixed interest rate | 2.74% | [1] |
Derivative instrument, notional amount | $ 25,000 | |
Interest Rate Swap Twelve [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 189 | |
Interest Rate Swap Thirteen [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | Aug. 23, 2018 | |
Derivative instrument, effective date | Sep. 4, 2018 | |
Derivative instrument, maturity date | Aug. 1, 2023 | |
Derivative instrument, pay fixed interest rate | 2.73% | [1] |
Derivative instrument, notional amount | $ 40,000 | |
Interest Rate Swap Thirteen [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 313 | |
[1] | Receive floating rate index based upon 1 month LIBOR. At September 30, 2018, the 1 month LIBOR was 2.26%. |
Debt and Derivative Instrumen_7
Debt and Derivative Instruments (Summary of Interest Rate Swap Contracts Outstanding) (Parenthetical) (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative [Line Items] | |
Derivative instrument, receive floating rate index | 1 month LIBOR |
LIBOR [Member] | |
Derivative [Line Items] | |
One month floating rate | 2.26% |
Debt and Derivative Instrumen_8
Debt and Derivative Instruments (Derivatives on Consolidated Statements of Operations and Other Comprehensive Income (Loss) (Details) - Designated as Hedging Instrument [Member] - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective portion of derivatives | $ 1,121 | $ (268) | $ 7,976 | $ (1,721) |
Reclassification adjustment for amounts included in net gain or loss (effective portion) | $ (245) | 507 | (300) | 2,002 |
Ineffective portion of derivatives | $ (1) | $ (13) | $ 12 |
Distributions (Narrative) (Deta
Distributions (Narrative) (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Distributions [Abstract] | ||
Amount per share of distributions | $ 0.335 | $ 0.00410959 |
Annualized rate on Estimated Per Share NAV | 6.00% |
Distributions (Schedule of Dist
Distributions (Schedule of Distributions Paid and Declared) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Distributions [Abstract] | ||||
Distributions paid | $ 11,924 | $ 13,482 | $ 28,388 | $ 39,989 |
Distributions declared | $ 11,924 | $ 13,484 | $ 35,776 | $ 39,896 |
Earnings (Loss) per Share (Deta
Earnings (Loss) per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Additional shares excluded from the computation of diluted earnings per share | 1,460 | 2,087 | 2,333 | 2,751 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Commitments And Contingencies Disclosure [Abstract] | ||||
Earnout liability outstanding | $ 0 | $ 1,050,000 | $ 1,553,000 | $ 6,856,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Schedule of Change in Earnout Liability for Acquisition of Certain Properties) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Earnout liability-beginning of period | $ 1,050,000 | $ 6,856,000 |
Increases: | ||
Additional earnout liability | 816,000 | |
Amortization expense | 24,000 | 28,000 |
Decreases: | ||
Earnout payments | (1,865,000) | (6,415,000) |
Other: | ||
Adjustments to acquisition related costs | (25,000) | 1,084,000 |
Earnout liability – end of period | $ 0 | $ 1,553,000 |
Equity-Based Compensation - Nar
Equity-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restricted Stock [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized compensation expense of unvested share-based awards | $ 60 | $ 60 | ||
Weighted average remaining period unrecognized compensation expense related to non-vested | 1 year 7 months 6 days | |||
Common stock shares issued upon vesting | 1 | |||
Restricted Stock [Member] | Minimum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation vesting period | 1 year | |||
Restricted Stock [Member] | Maximum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation vesting period | 3 years | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized compensation expense of unvested share-based awards | $ 60 | $ 60 | ||
Weighted average remaining period unrecognized compensation expense related to non-vested | 1 year 7 months 6 days | |||
Common stock shares issued upon vesting | 1 | |||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation vesting period | 1 year | |||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation vesting period | 3 years | |||
Non-Employee Directors [Member] | Restricted Stock [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 13 | $ 9 | $ 35 | $ 22 |
Non-Employee Directors [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 13 | $ 9 | $ 35 | $ 22 |
Equity-Based Compensation (Summ
Equity-Based Compensation (Summary of the Restricted Shares and Restricted Share Units) (Details) | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding, Weighted Average Grant Date Fair Value | $ / shares | $ 78 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 51 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | (30) |
Outstanding, Weighted Average Grant Date Fair Value | $ / shares | 99 |
Outstanding, Aggregate Intrinsic Value | $ / shares | 78 |
Granted, Aggregate Intrinsic Value | $ / shares | 51 |
Vested, Aggregate Intrinsic Value | $ / shares | (30) |
Outstanding, Aggregate Intrinsic Value | $ / shares | $ 99 |
Restricted Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding, Shares | shares | 2,543 |
Granted, Shares | shares | 1,677 |
Vested, Shares | shares | (996) |
Outstanding, Shares | shares | 3,224 |
Restricted Stock Units (RSUs) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding, Shares | shares | 904 |
Granted, Shares | shares | 624 |
Vested, Shares | shares | (353) |
Outstanding, Shares | shares | 1,175 |
Segment Reporting (Details)
Segment Reporting (Details) - Segment | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting [Abstract] | ||
Number of reportable segments | 1 | 1 |
Transactions with Related Par_3
Transactions with Related Parties (Schedule of Related Party Transactions) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | ||
Related Party Transaction [Line Items] | ||||||
Real estate management related costs with related party | [1] | $ 1,515 | $ 1,556 | $ 4,863 | $ 4,711 | |
Due to related parties | 2,825 | 2,825 | $ 2,665 | |||
General and Administrative Reimbursements [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
General and administrative expenses incurred with related party | [2] | 279 | 345 | 1,102 | 1,319 | |
Due to related parties | [2] | 288 | 288 | 203 | ||
Acquisition Related Costs [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses incurred with related party | 54 | 8 | 273 | |||
Acquisition Fees [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses incurred with related party | 12 | 180 | 28 | 1,216 | ||
Acquisition related costs | 12 | 12 | 51 | |||
Acquisition Related Costs and Fee [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses incurred with related party | [3] | 12 | 234 | 36 | 1,489 | |
Acquisition related costs | [3] | 12 | 12 | 51 | ||
Real Estate Management Fees [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Real estate management related costs with related party | 1,090 | 1,178 | 3,615 | 3,638 | ||
Property Operating Expenses [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Real estate management related costs with related party | 289 | 282 | 857 | 832 | ||
Construction Management Fees [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Real estate management related costs with related party | 67 | 45 | 177 | 98 | ||
Due to related parties | 70 | 70 | 35 | |||
Leasing fees [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Real estate management related costs with related party | 69 | 51 | 214 | 143 | ||
Due to related parties | 116 | 116 | 51 | |||
Real Estate Management Costs [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due to related parties | [1] | 186 | 186 | 86 | ||
Business Management Fee [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses incurred with related party | [4] | 2,338 | $ 2,311 | 7,000 | $ 6,871 | |
Due to related parties | [4] | $ 2,339 | $ 2,339 | $ 2,325 | ||
[1] | For each property that is managed by Inland Commercial Real Estate Services LLC (the “Real Estate Manager”) (and its predecessor), the Company pays a monthly real estate management fee of up to 1.9% of the gross income from any single-tenant, net-leased property, and up to 3.9% of the gross income from any other property type. The Real Estate Manager determines, in its sole discretion, the amount of the fee with respect to a particular property, subject to the limitations. For each property that is managed directly by the Real Estate Manager or its affiliates, the Company pays the Real Estate Manager a separate leasing fee. Further, in the event that the Company engages its Real Estate Manager to provide construction management services for a property, the Company pays a separate construction management fee. Leasing fees are included in deferred costs, net and construction management fees are included in building and other improvements in the consolidated balance sheets. The Company also reimburses the Real Estate Manager and its affiliates for property-level expenses that they pay or incur on the Company’s behalf, including the salaries, bonuses and benefits of persons performing services for the Real Estate Manager and its affiliates except for the salaries, bonuses and benefits of persons who also serve as an executive officer of the Real Estate Manager or the Company. Real estate management fees and reimbursable expenses are included in property operating expenses in the consolidated statements of operations and comprehensive income (loss). | |||||
[2] | The Business Manager and its related parties are entitled to reimbursement for certain general and administrative expenses incurred by the Business Manager or its related parties relating to the Company’s administration. Such costs are included in general and administrative expenses in the consolidated statements of operations and comprehensive income (loss). Unpaid amounts are included in due to related parties in the consolidated balance sheets. | |||||
[3] | The Company pays the Business Manager or its affiliates a fee equal to 1.5% of the “contract purchase price,” as defined, of each asset acquired. The Business Manager and its related parties are also reimbursed for acquisition and transaction related costs of the Business Manager and its related parties relating to the Company’s acquisition activities, regardless of whether the Company acquires the real estate assets. Of the $12 related party acquisition costs and fees incurred during the three months ended September 30, 2018, $12 are capitalized as the acquisition of net investment properties in the consolidated balance sheets. Of the $36 related party acquisition costs and fees incurred during the nine months ended September 30, 2018, $12 are capitalized as the acquisition of net investment properties in the consolidated balance sheets and $24 of such costs are included in acquisition related costs in the consolidated statements of operations and comprehensive income (loss). Of the $234 related party acquisition costs and fees incurred during the three months ended September 30, 2017, $98 are capitalized as the acquisition of net investment properties in the consolidated balance sheets and $52 of such costs are included in acquisition related costs in the consolidated statements of operations and comprehensive income (loss). Of the $1,489 related party acquisition costs and fees incurred during the nine months ended September 30, 2017, $1,344 are capitalized as the acquisition of net investment properties in the consolidated balance sheets and $145 of such costs are included in acquisition related costs in the consolidated statements of operations and comprehensive income (loss). Unpaid amounts are included in due to related parties in the consolidated balance sheets. | |||||
[4] | The Company pays the Business Manager an annual business management fee equal to 0.65% of its “average invested assets.” The fee is payable quarterly in an amount equal to 0.1625% of its average invested assets as of the last day of the immediately preceding quarter. “Average invested assets” means, for any period, the average of the aggregate book value of the Company’s assets, including all intangibles and goodwill, invested, directly or indirectly, in equity interests in, and loans secured by, properties, as well as amounts invested in securities and consolidated and unconsolidated joint ventures or other partnerships, before reserves for amortization and depreciation or bad debts, impairments or other similar non-cash reserves, computed by taking the average of these values at the end of each month during the relevant calendar quarter. |
Transactions with Related Par_4
Transactions with Related Parties (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Related Party Transaction [Line Items] | |||||
Asset acquisition fee to contract purchase price, percentage | 1.50% | ||||
Acquisition related costs | $ 62 | $ 28 | $ 1,262 | ||
Annual business management fee to its average invested assets, percentage | 0.65% | ||||
Quarterly payable business management fee to its average invested assets, percentage | 0.1625% | ||||
Acquisition Related Costs and Fee [Member] | |||||
Related Party Transaction [Line Items] | |||||
Total acquisition cost and fees | [1] | $ 12 | 234 | $ 36 | 1,489 |
Acquisition costs and fees capitalized | $ 12 | 98 | 12 | 1,344 | |
Acquisition related costs | $ 52 | $ 24 | $ 145 | ||
Monthly Real Estate Management Fee Of Single Tenant Property [Member] | Maximum [Member] | |||||
Related Party Transaction [Line Items] | |||||
Property management fee, percentage | 1.90% | ||||
Monthly Real Estate Management Fee Of Any Other Property [Member] | Maximum [Member] | |||||
Related Party Transaction [Line Items] | |||||
Property management fee, percentage | 3.90% | ||||
[1] | The Company pays the Business Manager or its affiliates a fee equal to 1.5% of the “contract purchase price,” as defined, of each asset acquired. The Business Manager and its related parties are also reimbursed for acquisition and transaction related costs of the Business Manager and its related parties relating to the Company’s acquisition activities, regardless of whether the Company acquires the real estate assets. Of the $12 related party acquisition costs and fees incurred during the three months ended September 30, 2018, $12 are capitalized as the acquisition of net investment properties in the consolidated balance sheets. Of the $36 related party acquisition costs and fees incurred during the nine months ended September 30, 2018, $12 are capitalized as the acquisition of net investment properties in the consolidated balance sheets and $24 of such costs are included in acquisition related costs in the consolidated statements of operations and comprehensive income (loss). Of the $234 related party acquisition costs and fees incurred during the three months ended September 30, 2017, $98 are capitalized as the acquisition of net investment properties in the consolidated balance sheets and $52 of such costs are included in acquisition related costs in the consolidated statements of operations and comprehensive income (loss). Of the $1,489 related party acquisition costs and fees incurred during the nine months ended September 30, 2017, $1,344 are capitalized as the acquisition of net investment properties in the consolidated balance sheets and $145 of such costs are included in acquisition related costs in the consolidated statements of operations and comprehensive income (loss). Unpaid amounts are included in due to related parties in the consolidated balance sheets. |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Cash Flow Hedges and Classification on Consolidated Balance Sheets) (Details) - Recurring [Member] - Interest Rate Swap Agreements [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Other Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Interest rate swap agreements - Other assets | $ 13,459 | $ 6,136 |
Other Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Interest rate swap agreements - Other liabilities | 340 | |
Level 2 [Member] | Other Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Interest rate swap agreements - Other assets | $ 13,459 | 6,136 |
Level 2 [Member] | Other Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Interest rate swap agreements - Other liabilities | $ 340 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Impairment charges | $ 0 | $ 0 | ||
Fair value of investment property based on discounted cash flow model term | 10 years | |||
Measurement Input, Cap Rate [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Capitalization and discount rate | 7 | 7 | ||
Measurement Input, Discount Rate [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Capitalization and discount rate | 7.6 | 7.6 | ||
Mainstreet Texas Development Fund, LLC ("Mainstreet JV") [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Impairment charges | $ 5,000,000 | $ 5,000,000 |
Fair Value Measurements (Sche_2
Fair Value Measurements (Schedule of Assets Measured at Fair Value on a Non-Recurring Basis) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total Impairment Loss | $ 0 | $ 0 | |
Non-recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment in unconsolidated entities | $ 4,589,000 | ||
Total Impairment Loss | 5,000,000 | ||
Non-recurring [Member] | Level 3 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment in unconsolidated entities | 4,589,000 | ||
Non-recurring [Member] | Investment in Unconsolidated Entities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment in unconsolidated entities | 4,589,000 | ||
Total Impairment Loss | 5,000,000 | ||
Non-recurring [Member] | Investment in Unconsolidated Entities [Member] | Level 3 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment in unconsolidated entities | $ 4,589,000 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Subsequent Events [Abstract] | ||
Dividends payable, declared date | Sep. 5, 2018 | |
Amount per share of distributions | $ 0.335 | $ 0.00410959 |
Annualized rate on Estimated Per Share NAV | 6.00% | |
Dividends payable, record date | Sep. 28, 2018 | |
Distributions payable | $ 11,924 | $ 4,537 |
Subsequent Events (Schedule of
Subsequent Events (Schedule of Reinvested and Repurchased Shares) (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |||
Oct. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Oct. 16, 2015 | |
Subsequent Event [Line Items] | |||||
Distribution reinvested | $ 13,720 | ||||
Number of Shares Issued through the DRP | 35,338,249 | 35,498,444 | 33,534,022 | ||
Amount of Shares Repurchased through the SRP | $ 17,084 | $ 13,085 | |||
Number of Shares Repurchased through the SRP | 2,345,045 | ||||
DRP [Member] | |||||
Subsequent Event [Line Items] | |||||
Distribution reinvested | $ 13,720 | $ 20,415 | |||
Subsequent Event [Member] | DRP [Member] | |||||
Subsequent Event [Line Items] | |||||
Distribution reinvested | $ 5,618 | ||||
Number of Shares Issued through the DRP | 251,431 | ||||
Subsequent Event [Member] | SRP [Member] | |||||
Subsequent Event [Line Items] | |||||
Amount of Shares Repurchased through the SRP | $ 5,618 | ||||
Number of Shares Repurchased through the SRP | 253,776 |