Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 10, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | Inland Real Estate Income Trust, Inc. | |
Entity Central Index Key | 0001528985 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2021 | |
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 | 36,022,368 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity File Number | 000-55146 | |
Entity Tax Identification Number | 45-3079597 | |
Entity Address, Address Line One | 2901 Butterfield Road | |
Entity Address, City or Town | Oak Brook | |
Entity Address, State or Province | IL | |
Entity Address, Country | US | |
Entity Incorporation, State or Country Code | MD | |
Entity Address, Postal Zip Code | 60523 | |
City Area Code | 630 | |
Local Phone Number | 218-8000 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Investment properties held and used: | ||
Land | $ 267,946 | $ 267,946 |
Building and other improvements | 988,411 | 987,181 |
Total | 1,256,357 | 1,255,127 |
Less accumulated depreciation | (217,268) | (207,764) |
Net investment properties held and used | 1,039,089 | 1,047,363 |
Cash and cash equivalents | 11,586 | 12,906 |
Restricted cash | 2,080 | 1,079 |
Accounts and rent receivable, net | 20,001 | 21,851 |
Acquired lease intangible assets, net | 68,048 | 71,539 |
Operating lease right-of-use asset, net | 14,900 | 15,013 |
Other assets | 5,740 | 6,299 |
Total assets | 1,161,444 | 1,176,050 |
Liabilities: | ||
Mortgages and credit facility payable, net | 618,533 | 628,718 |
Accounts payable and accrued expenses | 8,155 | 8,977 |
Operating lease liability | 24,123 | 24,035 |
Acquired intangible liabilities, net | 40,750 | 41,658 |
Due to related parties | 3,093 | 5,348 |
Other liabilities | 21,116 | 23,355 |
Total liabilities | 715,770 | 732,091 |
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, 36,022,368 and 36,022,368 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | 36 | 36 |
Additional paid in capital | 810,228 | 810,210 |
Accumulated distributions and net loss | (350,047) | (348,719) |
Accumulated other comprehensive loss | (14,543) | (17,568) |
Total stockholders’ equity | 445,674 | 443,959 |
Total liabilities and stockholders’ equity | $ 1,161,444 | $ 1,176,050 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
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 | 36,022,368 | 36,022,368 |
Common stock, shares outstanding | 36,022,368 | 36,022,368 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME ( LOSS ) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income: | ||
Rental income | $ 30,000 | $ 30,700 |
Other property income | 48 | 61 |
Total income | 30,048 | 30,761 |
Cost and Expenses: | ||
Property operating expenses | 5,719 | 5,497 |
Real estate tax expense | 3,670 | 3,638 |
General and administrative expenses | 1,313 | 1,240 |
Business management fee | 2,234 | 2,229 |
Depreciation and amortization | 12,455 | 13,304 |
Total expenses | 25,391 | 25,908 |
Other Income (Expense): | ||
Interest expense | (6,042) | (6,498) |
Interest and other income | 57 | 24 |
Net loss | $ (1,328) | $ (1,621) |
Net loss per common share, basic and diluted | $ (0.04) | $ (0.04) |
Weighted average number of common shares outstanding, basic and diluted | 36,022,368 | 36,019,393 |
Comprehensive income (loss): | ||
Net loss | $ (1,328) | $ (1,621) |
Unrealized gain (loss) on derivatives | 1,161 | (14,552) |
Reclassification adjustment for amounts included in net loss | 1,864 | 403 |
Comprehensive income (loss) | $ 1,697 | $ (15,770) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid In Capital [Member] | Accumulated Distributions and Net Loss [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |
Balance at Dec. 31, 2019 | $ 460,519 | $ 36 | $ 805,722 | $ (338,331) | $ (6,908) | |
Balance, shares at Dec. 31, 2019 | 35,799,388 | |||||
Distributions declared | (8,173) | [1] | (8,173) | |||
Proceeds from distribution reinvestment plan | 4,547 | 4,547 | ||||
Proceeds from distribution reinvestment plan, shares | 225,940 | |||||
Shares repurchased | (102) | (102) | ||||
Shares repurchased, shares | (4,987) | |||||
Unrealized gain (loss) on derivatives | (14,552) | (14,552) | ||||
Reclassification adjustment for amounts included in net loss | 403 | 403 | ||||
Equity-based compensation | 15 | 15 | ||||
Net loss | (1,621) | (1,621) | ||||
Balance at Mar. 31, 2020 | 441,036 | $ 36 | 810,182 | (348,125) | (21,057) | |
Balance, shares at Mar. 31, 2020 | 36,020,341 | |||||
Balance at Dec. 31, 2020 | $ 443,959 | $ 36 | 810,210 | (348,719) | (17,568) | |
Balance, shares at Dec. 31, 2020 | 36,022,368 | 36,022,368 | ||||
Shares repurchased | $ 0 | |||||
Unrealized gain (loss) on derivatives | 1,161 | 1,161 | ||||
Reclassification adjustment for amounts included in net loss | 1,864 | 1,864 | ||||
Equity-based compensation | 18 | 18 | ||||
Net loss | (1,328) | (1,328) | ||||
Balance at Mar. 31, 2021 | $ 445,674 | $ 36 | $ 810,228 | $ (350,047) | $ (14,543) | |
Balance, shares at Mar. 31, 2021 | 36,022,368 | 36,022,368 | ||||
[1] | The distribution declared during the first quarter of 2020 was rescinded during the second quarter. |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) | 3 Months Ended |
Mar. 31, 2021$ / shares | |
Statement Of Stockholders Equity [Abstract] | |
Distributions declared per share | $ 0.226875 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Cash flows from operating activities: | |||
Net loss | $ (1,328) | $ (1,621) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 12,455 | 13,304 | |
Amortization of debt issuance costs and mortgage premiums, net | 128 | 145 | |
Amortization of acquired market leases, net | (170) | (595) | |
Amortization of equity-based compensation | 18 | 15 | |
Reduction in the carrying amount of the right-of-use-asset | 113 | 118 | |
Straight-line income, net | (180) | (139) | |
Other non-cash adjustments | 24 | 16 | |
Changes in assets and liabilities: | |||
Accounts payable and accrued expenses | (706) | (550) | |
Accounts and rent receivable | 2,030 | 1,538 | |
Due to related parties | (2,255) | (186) | |
Operating lease liability | 88 | 83 | |
Other liabilities | 179 | (2,417) | |
Other assets | 220 | (156) | |
Net cash flows provided by operating activities | 10,616 | 9,555 | |
Cash flows from investing activities: | |||
Capital expenditures | (622) | (1,118) | |
Proceeds from sale of investment properties | 37,255 | ||
Net cash flows (used in) provided by investing activities | (622) | 36,137 | |
Cash flows from financing activities: | |||
Payment of credit facility | (8,097) | (43,022) | |
Proceeds from credit facility | 52,097 | 7,000 | |
Payment of mortgages payable | (54,313) | (56) | |
Proceeds from the distribution reinvestment plan | 4,547 | ||
Shares repurchased | (2,380) | ||
Distributions paid | [1] | (10,841) | |
Net cash flows used in financing activities | (10,313) | (44,752) | |
Net (decrease) increase in cash, cash equivalents and restricted cash | (319) | 940 | |
Cash, cash equivalents and restricted cash, at beginning of the period | 13,985 | 5,533 | |
Cash, cash equivalents and restricted cash, at end of period | 13,666 | 6,473 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 5,766 | 6,373 | |
Supplemental schedule of non-cash investing and financing activities: | |||
Accrued capital expenditures | $ 608 | 294 | |
Distributions payable | $ 8,173 | ||
[1] | The distribution paid in 2020 was authorized in the fourth quarter of 2019 and paid during the first quarter of 2020 to stockholders of record as of December 31, 2019. |
Organization
Organization | 3 Months Ended |
Mar. 31, 2021 | |
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 is primarily focused on owning retail properties and targets a portfolio of 100% grocery-anchored properties The Company has no employees. The Company is managed by IREIT Business Manager & Advisor, Inc. (the “Business Manager”), an indirect wholly owned subsidiary of Inland Real Estate Investment Corporation (the “Sponsor”), pursuant to a Business Management Agreement with the Business Manager. On February 11, 2019, the Company’s board of directors approved a strategic plan (the “Strategic Plan”) with the goals of providing future liquidity to investors and creating long-term stockholder value. The Strategic Plan centers around owning a portfolio of 100% grocery-anchored properties with lower exposure to big box retailers. As part of this strategy, the Company’s management team and board have completed the sale of 15 properties, including the sale of three properties during January 2020, as further described in Note 4 – “Dispositions,” with the goal of redeploying capital into the acquisition of strategically located grocery-anchored centers. The Company plans to move toward a liquidity event in the future, market conditions permitting, most likely through a listing on a public securities exchange. In connection with the Strategic Plan, the Company’s share repurchase program (as amended, the “SRP”) was amended and restated, effective March 21, 2019, and the Business Management Agreement with the Business Manager was amended and restated on February 11, 2019 to, among other things, eliminate all future acquisition and disposition fees. On March 3, 2020, the Company’s SRP was further amended and restated (the “Third A&R SRP”), which became effective on April 10, 2020, as further described below in Note 3 – “Equity”. The Strategic Plan may evolve or change over time. For example, the Company may decide to focus more on redeveloping existing properties relative to investing in new grocery-anchored centers, depending on such factors, including, but not limited to, market prices for its properties, availability of capital for redevelopment and construction costs. There is no assurance, particularly in light of the COVID-19 pandemic, that the Company will be able to successfully implement the Strategic Plan, including making strategic sales or purchases of properties or listing the Company’s common stock, within the timeframe we expected or would prefer or at all. We expect that no liquidity event will occur before the adverse effects of the COVID-19 pandemic on the economy and the retail commercial real estate market subside. On March 5, 2021, as reported in the Company’s Form 8-K filed with the Securities and Exchange Commission on the same date, the Company announced that the Company’s board of directors unanimously approved: (i) an estimated per share net asset value (the “Estimated Per Share NAV”) as of December 31, 2020; (ii) the same per share purchase price for shares issued under the Company’s distribution reinvestment plan (as amended, the “DRP”) beginning with the first distribution payment to stockholders upon resumption of distributions and the DRP until the Company announces a new Estimated Per Share NAV, and (iii) that, in accordance with the SRP, beginning with repurchases when the Company resumes the SRP and until the Company announces a new Estimated Per Share NAV, any shares accepted for ordinary repurchases and “exceptional repurchases” will be repurchased at 80% of the Estimated Per Share NAV. Due to the uncertainty surrounding the COVID-19 pandemic and the need to preserve cash for the payment of operating and other expenses, such as debt payments, the Company’s board of directors suspended distributions and the Company’s DRP and SRP until further notice. The suspension of the DRP was effective on June 6, 2020 and the suspension of the SRP was effective on June 26, 2020. Any unfulfilled repurchase requests will automatically roll over for processing under the terms and conditions of the SRP when the Company restarts the plan, unless a stockholder withdraws the request for repurchase. At March 31, 2021, the Company owned 44 retail properties, totaling 6,469,300 square feet. The properties are located in 21 states. At March 31, 2021, the portfolio had a weighted average physical occupancy of 91.9% and economic occupancy of 92.4%. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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, 2020, as filed with the Securities and Exchange Commission on March 18, 2021, under the heading Note 2 – “Summary of Significant Accounting Policies.” There have been no changes to the Company’s significant accounting policies during the three months ended March 31, 2021, except as noted below. General The 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. Significant Risks and Uncertainties related to COVID-19 Pandemic Currently, one of the most significant risks and uncertainties is the potential further adverse effect of the current pandemic of the novel coronavirus, or COVID-19. A number of our tenants had temporarily closed their stores and requested rent deferral or rent abatement during this pandemic. Many experts acknowledge that the outbreak has already triggered a period of global economic slowdown or a global recession. The COVID-19 pandemic has already had a material impact on the Company’s operations (See Note 5 – “Leases”) and could continue to have material and adverse effects on our financial condition, results of operations and cash flows in the near term due to, but not limited to, the following: • reduced economic activity severely impacts our tenants' businesses, financial condition and liquidity and has caused tenants to be unable to fully meet their obligations to us or to otherwise seek modifications of such obligations, resulting in increases in uncollectible receivables and reductions in rental income; • a prolonged economic recession in the U.S. would negatively impact the Company’s ability to lease space and negotiate and maintain favorable rents causing reductions in occupancy and rental income; • the negative financial impact of the pandemic could impact our future compliance with financial covenants of our credit facility and other debt agreements; and • weaker economic conditions and defaults or failures by tenants to pay rent when due could cause us to recognize impairment in value of our tangible or intangible assets. The extent to which the COVID-19 pandemic impacts the Company’s operations and those of our tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others. Recently Adopted Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) In April 2020, the FASB issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under existing lease guidance, the Company would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated with the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A grants relief to entities, allowing them an election to not evaluate whether lease-related relief that lessors provide to mitigate the economic effects of COVID-19 on lessees is a lease modification under Topic 842, Leases. An entity that makes this election can then elect whether to apply the modification guidance (i.e. assume the relief was always contemplated by the contract or assume the relief was not contemplated by the contract). Both lessees and lessors may make this election. The Company has elected to apply such relief and will avail itself of the election to avoid performing a lease by lease analysis. Restricted Cash 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: March 31, 2021 2020 Cash and cash equivalents $ 11,586 $ 5,401 Restricted cash 2,080 1,072 Total cash, cash equivalents, and restricted cash $ 13,666 $ 6,473 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2021 | |
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 sold 33,534,022 shares of common stock generating gross proceeds of $834,399 from the Offering. As of March 31, 2021, there were 36,022,368 shares of common stock outstanding including 5,574,215 shares issued through the DRP, net of 3,092,634 shares repurchased through the SRP. On March 5, 2021, the Company’s board of directors determined the Estimated Per Share NAV as of December 31, 2020. The previously Estimated Per Share NAV as of December 31, 2019 was established on March 3, 2020. 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 Through the DRP, the Company provides stockholders with the option to purchase additional shares from the Company by automatically reinvesting cash distributions, 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 $4,547 for the three months ended March 31, 2020. There were no distributions reinvested through the DRP during the three months ended March 31, 2021 due to the suspension of the DRP discussed in Note 1 – “Organization.” Share Repurchase Program The Company adopted the SRP effective October 18, 2012, under which 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. The SRP may be amended or terminated at the Company’s sole discretion. In the case of repurchases made upon the death of a stockholder or qualifying disability (“Exceptional Repurchases”), as defined in the SRP, the one year holding period does not apply. On February 11, 2019, the Company’s board of directors adopted a second amended and restated SRP, effective March 21, 2019, which reduced the price the Company was authorized to make ordinary repurchases from a range of 92.5% to 100% of the “share price” down to 80% of the “share price.” The “share price” is defined in the second amended and restated SRP as an amount equal to the lesser of: (A) $25, as adjusted under certain circumstances, including, among other things, if the applicable shares were purchased from the Company at a discounted price; or (B) the most recently disclosed estimated value per share. On March 3, 2020 the Company’s board of directors adopted the Third A&R SRP. Under the Third A&R SRP, the Company is authorized to make ordinary repurchases and Exceptional Repurchases at a price equal to 80.0% of the “share price,” which is defined in the Third A&R SRP the same way as described above for the second amended and restated SRP. Prior to the amendment, the Company was authorized to make Exceptional Repurchases at a price equal to 100% of the “share price.” The Third A&R SRP provides the Company’s board of directors with the discretion to set the funding limit for share repurchases. The Third A&R SRP limits the dollar amount for any repurchases made by the Company each calendar quarter to an amount equal to a percentage determined in the sole discretion of the board on a quarterly basis that will not be less than 50% of the net proceeds from the DRP during the applicable quarter. As the Company’s board of directors has not authorized distributions since December 2019, and there have been no distributions to reinvest through the DRP, there has been no net proceeds from the DRP available to fund the repurchase of shares by the Company through the SRP. See Note 1 – “Organization” for further discussion on the suspension of the SRP. The Company continues to limit the number of shares repurchased during any calendar year to 5% of the number of shares outstanding on December 31st of the previous calendar year, as adjusted for any stock splits or other combinations. If either or both of the repurchase limitations prevent the Company from repurchasing all of the shares offered for repurchase during a calendar quarter, the Company will repurchase shares, on a pro rata basis within each category below, in accordance with the repurchase limitations in the following order: (a) first, all Exceptional Repurchases and (b) second, all ordinary repurchases. The SRP will immediately terminate if the Company’s shares become listed for trading on a national securities exchange. Repurchases through the SRP were zero and $102 for the three months ended March 31, 2021 and 2020, respectively. There was no liability related to the SRP at March 31, 2021 due to the suspension of the SRP. See Note 1 – “Organization” for further discussion on the suspension of the SRP. |
Dispositions
Dispositions | 3 Months Ended |
Mar. 31, 2021 | |
Assets Of Disposal Group Including Discontinued Operation [Abstract] | |
Dispositions | NOTE 4 – DISPOSITIONS In connection with the Strategic Plan, the Company sold three properties in January 2020. The Company collected proceeds of $37,255 net of selling costs upon completion of the three sales. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | NOTE 5 – LEASES The Company is lessor to approximately 700 retail operating leases. The remaining lease terms for the Company’s leases range from less than one year to 16 years. The Company considers the date on which it makes a leased space available to a lessee as the commencement date of the lease. At commencement, the Company determines the lease classification utilizing the classification tests under ASC 842. Options to extend a lease are included in the lease term when it is reasonably certain that the tenant will exercise its option to extend. Termination penalties are included in income when there is a termination agreement, all the conditions of the agreement have been met and amounts due are considered collectible. Such termination fees are recognized on a straight-line basis over the remaining lease term in rental income. If an operating lease is modified and the modification is not accounted for as a separate contract, the Company accounts for the modification as if it were a termination of the existing lease and the creation of a new lease. The Company considers any prepaid or accrued rentals relating to the original lease as part of the lease payments for the modified lease. Most of the revenue from the Company’s properties consists of rents received under long-term operating leases. Most leases require the tenant to pay fixed base rent paid monthly in advance, and to reimburse the Company for the tenant’s pro rata share of certain operating expenses including real estate taxes, special assessments, insurance, utilities, common area maintenance, management fees, and certain building repairs paid by the Company and recoverable under the terms of the lease. Under these leases, the Company pays all expenses and is reimbursed by the tenant for the tenant’s pro rata share of recoverable expenses paid. Certain other tenants are subject to net leases which provide that the tenant is responsible for fixed base rent as well as all costs and expenses associated with occupancy. Under net leases where all expenses are paid directly by the tenant rather than the landlord, such expenses are not included in the consolidated statements of operations and comprehensive income (loss). Under leases where all expenses are paid by the Company, subject to reimbursement by the tenant, the expenses are included within property operating expenses. As of January 1, 2019, the date on which the Company adopted the new leasing standard, reimbursements for common area maintenance are considered non-lease components that are permitted to be combined with rental income. The combined lease component and reimbursements for insurance and taxes are reported as rental income on the consolidated statements of operations and comprehensive income (loss). Rental income related to the Company's operating leases is comprised of the following: Three Months Ended March 31, 2021 2020 Rental income - fixed payments $ 23,889 $ 24,030 Rental income - variable payments (a) 5,941 6,075 Amortization of acquired market leases, net 170 595 Rental income $ 30,000 $ 30,700 (a) Primarily includes tenant recovery income for real estate taxes, common area maintenance and insurance. The Company is closely monitoring the impact of the COVID-19 pandemic on the collectability of lease obligations. As of March 31, 2021, the Company’s accounts and rent receivable, net balance is $20,001, which is net of an allowance for bad debts of $3,082 and includes $3,299 of deferred rent receivable related to COVID-19 agreements negotiated with tenants. Such agreements generally allow tenants to defer the payment of a portion of rent with no substantive changes to the consideration in the original lease. Consistent with the guidance in the Lease Modification Q&A issued by the FASB, such deferrals affect the timing, but not the amount, of the lease obligations. The Company is accounting for these deferrals as if no changes to the lease were made. Under this accounting, the Company increases its rent receivable as tenant obligations accrue and continues to recognize rental income. |
Acquired Intangible Assets and
Acquired Intangible Assets and Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Intangible assets: Acquired in-place lease value $ 156,918 $ 156,918 Acquired above market lease value 45,742 45,742 Accumulated amortization (134,612 ) (131,121 ) Acquired lease intangibles, net $ 68,048 $ 71,539 Intangible liabilities: Acquired below market lease value $ 70,260 $ 70,260 Accumulated amortization (29,510 ) (28,602 ) Acquired below market lease intangibles, net $ 40,750 $ 41,658 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 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 lease value and below market lease value is summarized below: Three Months Ended March 31, 2021 2020 Amortization recorded as amortization expense: Acquired in-place lease value $ 2,752 $ 3,728 Amortization recorded as a (reduction) increase to rental income: Acquired above market leases $ (738 ) $ (783 ) Acquired below market leases 908 1,378 Net rental income increase $ 170 $ 595 Estimated amortization of the respective intangible lease assets and liabilities as of March 31, 2021 for each of the five succeeding years and thereafter is as follows: Acquired In-Place Leases Above Market Leases Below Market Leases 2021 (remainder of year) $ 7,475 $ 2,201 $ 2,680 2022 7,600 2,649 3,366 2023 6,397 2,463 3,108 2024 5,412 2,296 2,932 2025 3,620 2,030 2,741 Thereafter 14,455 11,450 25,923 Total $ 44,959 $ 23,089 $ 40,750 |
Debt and Derivative Instruments
Debt and Derivative Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Derivative Instruments | NOTE 7 – DEBT AND DERIVATIVE INSTRUMENTS As of March 31, 2021 and December 31, 2020, the Company had the following mortgages and credit facility payable: March 31, 2021 December 31, 2020 Type of Debt Principal Amount Weighted Average Interest Rate Principal Amount Weighted Average Interest Rate Fixed rate mortgages payable $ 147,675 4.11 % $ 163,738 4.25 % Variable rate mortgages payable with swap agreements 213,345 3.40 % 251,595 3.33 % Variable rate mortgages payable without swap agreements 684 1.72 % 684 1.75 % Mortgages payable $ 361,704 3.69 % $ 416,017 3.69 % Credit facility payable 259,000 3.60 % 215,000 3.89 % Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps $ 620,704 3.65 % $ 631,017 3.76 % Add: Unamortized mortgage premiums 215 419 Less: Unamortized debt issuance costs (2,386 ) (2,718 ) Total debt $ 618,533 $ 628,718 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 $620,704 and $631,017 as of March 31, 2021 and December 31, 2020, respectively, and its estimated fair value was $614,112 and $625,751 as of March 31, 2021 and December 31, 2020, respectively. As of March 31, 2021, scheduled principal payments and maturities on the Company’s debt were as follows: March 31, 2021 Scheduled Principal Payments and Maturities by Year: Scheduled Principal Payments Maturities of Mortgage Loans Maturity of Credit Facility Total 2021 (remainder of the year) $ 1,167 $ 28,810 $ — $ 29,977 2022 615 101,537 109,000 211,152 2023 326 91,230 150,000 241,556 2024 341 — — 341 2025 295 92,656 — 92,951 Thereafter — 44,727 — 44,727 Total $ 2,744 $ 358,960 $ 259,000 $ 620,704 Credit Facility Payable The Company’s credit facility (the “Credit Facility”) consisting of a $200,000 revolving credit facility (the “Revolving Credit Facility”) and a $150,000 term loan (the “Term Loan”) has an accordion feature that allows for an increase in available borrowings up to $700,000, subject to certain conditions. At March 31, 2021, the Company had $109,000 outstanding under the Revolving Credit Facility and $150,000 outstanding under the Term Loan. At March 31, 2021 the interest rate on the Revolving Credit Facility and the Term Loan was 2.15% and 4.65%, 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 March 31, 2021, the Company had a maximum amount of $91,000 available for borrowing under the Revolving Credit Facility, subject to the terms and conditions, including compliance with the covenants which could further limit the amount available, of the Amended and Restated Credit Agreement that governs the 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 March 31, 2021, there were 27 properties included in the pool of unencumbered properties. 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. On September 29, 2020, the Company entered into a first amendment to the Company’s Amended and Restated Credit Agreement dated as of August 1, 2018 with KeyBank National Association individually and as administrative agent, KeyBanc Capital Markets Inc., PNC Capital Markets LLC and Merrill Lynch Pierce, Fenner & Smith Incorporated (now BofA Securities, Inc.) as joint lead arrangers, and other lenders from time to time parties to the agreement. This amendment provides a waiver of the minimum tangible net worth requirement for three consecutive quarters beginning with the quarter ended September 30, 2020. In exchange, our leverage ratio may be increased only to 62.5% (formerly 65%) for two consecutive fiscal quarters two times prior to the facility termination date, the Company is restricted, during this waiver period, from making any share repurchases or distributions without lender approval, a LIBOR floor of 25 basis points will remain in effect for the remainder of the term, and the Company paid a set fee to the arranging bank and all the participating lenders. As of March 31, 2021, the Company is in compliance with all financial covenants related to the Credit Facility as amended. Mortgages Payable The mortgage loans require compliance with certain covenants, such as debt service ratios, investment restrictions and distribution limitations. As of March 31, 2021, the Company was current on all of the payments and except for two mortgage loans with covenant violations which only required cash maintenance accounts be established for their two mortgaged properties, all other mortgage loans were in compliance with their financial covenants. All of the Company’s mortgage loans are secured by first mortgages on the respective real estate assets. As of March 31, 2021, the weighted average years to maturity for the Company’s mortgages payable was 2.8 years. For mortgage loans maturing in the next twelve months, the Company intends to either refinance such mortgage loans or repay such mortgage loans with cash on hand or use proceeds available under the Revolving Credit Facility. 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 March 31, 2021. Date Entered Effective Date Maturity Date Pay Fixed Rate (a) Notional Amount Fair Value at March 31, 2021 Liabilities February 11, 2015 March 2, 2015 March 1, 2022 2.02 % 6,114 (106 ) April 7, 2015 April 7, 2015 April 7, 2022 1.74 % 48,501 (787 ) September 17, 2015 September 17, 2015 September 17, 2022 1.90 % 13,700 (351 ) October 2, 2015 November 1, 2015 November 1, 2022 1.79 % 13,100 (338 ) December 23, 2015 December 23, 2015 January 2, 2026 2.30 % 26,000 (1,743 ) June 7, 2016 July 1, 2016 July 1, 2023 1.42 % 43,680 (1,152 ) July 21, 2016 August 1, 2016 August 1, 2023 1.30 % 47,550 (1,143 ) June 5, 2017 May 31, 2017 May 15, 2022 1.90 % 14,700 (292 ) August 23, 2018 September 4, 2018 August 1, 2023 2.73 % 60,000 (3,451 ) August 23, 2018 September 4, 2018 August 1, 2023 2.74 % 25,000 (1,438 ) August 23, 2018 September 4, 2018 August 1, 2023 2.74 % 25,000 (1,441 ) August 23, 2018 September 4, 2018 August 1, 2023 2.73 % 40,000 (2,301 ) $ 363,345 $ (14,543 ) (a) Receive floating rate index based upon one-month LIBOR. At March 31, 2021, the one-month LIBOR was 0.11%. 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 months ended March 31, 2021 and 2020. Three Months Ended March 31, Derivatives in Cash Flow Hedging Relationships 2021 2020 Effective portion of derivatives $ 1,161 $ (14,552 ) Reclassification adjustment for amounts included in net gain or loss (effective portion) $ 1,864 $ 403 The total amount of interest expense presented on the consolidated statements of operations and comprehensive income (loss) was $6,042 and $6,498, for the three months ended March 31, 2021 and 2020, respectively. The location of the net gain or loss reclassified into income from accumulated other comprehensive income (loss) is reported in interest expense on the consolidated statements of operations and comprehensive income (loss). The amount that is expected to be reclassified from accumulated other comprehensive income (loss) into income in the next twelve months is $7,216. |
Distributions
Distributions | 3 Months Ended |
Mar. 31, 2021 | |
Distributions [Abstract] | |
Distributions | NOTE 8 – DISTRIBUTIONS In 2020, d ue to the uncertainty surrounding the COVID-19 pandemic and the need to preserve cash for the payment of operating and other expenses, during the second quarter the Company’s board of directors rescinded the distribution that was declared in the first quarter of 2020 and suspended distributions until further notice. The table below presents the distributions paid and declared during the three months ended March 31, 2021 and 2020. Three Months Ended March 31, 2021 2020 Distributions paid (1) $ — $ 10,841 Distributions declared (2) $ — $ 8,173 (1) The distribution paid in 2020 was authorized in the fourth quarter of 2019 and paid during the first quarter of 2020 to stockholders of record as of December 31, 2019. (2) The distribution declared during the first quarter of 2020 was rescinded during the second quarter. |
Earnings (Loss) per Share
Earnings (Loss) per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | NOTE 9 – EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share (“EPS”) is 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. As a result of a net loss in the three months ended March 31, 2021 and 2020, 3,914 shares and 4,124 shares, respectively, were excluded from the computation of diluted EPS, because they would have been antidilutive. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 10 – COMMITMENTS AND CONTINGENCIES 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 | 3 Months Ended |
Mar. 31, 2021 | |
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 are issued to non-employee directors as compensation. Each restricted share and restricted share unit entitles the holder to receive one common share when it vests. Restricted shares are included in common stock outstanding on the date of vesting. Restricted share units are included in common stock outstanding on the date they are transferred to the non-employee director or their beneficiary. The grant-date value of the restricted shares and restricted share units is amortized over the vesting period representing the requisite service period. Compensation expense associated with the restricted shares and restricted share units issued to the non-employee directors was $18 and $15, in the aggregate, for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, the Company had $50 of unrecognized compensation expense related to the unvested restricted shares and restricted share units, in the aggregate. The weighted average remaining period that compensation expense related to unvested restricted shares and restricted share units will be recognized is 1.4 years. No restricted shares or restricted shares units vested during the three months ended March 31, 2021 and 2020. A summary table of the status of the restricted shares and restricted share units is presented below: Restricted Shares Restricted Share Units Outstanding at December 31, 2020 6,457 683 Granted — — Vested — — Outstanding at March 31, 2021 6,457 683 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2021 | |
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 three months ended March 31, 2021 and 2020. |
Transactions with Related Parti
Transactions with Related Parties | 3 Months Ended |
Mar. 31, 2021 | |
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 months ended March 31, 2021 and 2020. Certain compensation and fees payable to the Business Manager for services provided to the Company are limited to maximum amounts. Three Months Ended March 31, Unpaid amounts as of 2021 2020 March 31, 2021 December 31, 2020 General and administrative reimbursements (a) $ 309 $ 329 $ 235 $ 237 Real estate management fees $ 1,236 $ 1,085 $ 464 $ 387 Property operating expenses 350 343 91 178 Construction management fees — 4 4 4 Leasing fees 61 83 65 77 Total real estate management related costs (b) $ 1,647 $ 1,515 $ 624 $ 646 Business management fees (c) $ 2,234 $ 2,229 $ 2,234 $ 4,465 (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 ) 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). ( c ) 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. Unpaid amounts are included in due to related parties on the consolidated balance sheets. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and December 31, 2020, respectively. Fair Value Level 1 Level 2 Level 3 Total March 31, 2021 Interest rate swap agreements - Other assets $ — $ — $ — $ — Interest rate swap agreements - Other liabilities $ — $ 14,543 $ — $ 14,543 December 31, 2020 Interest rate swap agreements - Other assets $ — $ — $ — $ — Interest rate swap agreements - Other liabilities $ — $ 17,568 $ — $ 17,568 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 15 – SUBSEQUENT EVENTS In connection with the preparation of its financial statements, the Company has evaluated events that occurred subsequent to March 31, 2021 through the date on which these financial statements were issued to determine whether any of these events required disclosure in the financial statements. Repayment of Mortgages On April 30, 2021, the Company used cash on hand to repay indebtedness secured by separate mortgages on the Walgreens Plaza and Heritage Square properties with outstanding principal balances of $4,650 and $4,460, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
General | General The 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. |
Significant Risks and Uncertainties related to COVID-19 Pandemic | Significant Risks and Uncertainties related to COVID-19 Pandemic Currently, one of the most significant risks and uncertainties is the potential further adverse effect of the current pandemic of the novel coronavirus, or COVID-19. A number of our tenants had temporarily closed their stores and requested rent deferral or rent abatement during this pandemic. Many experts acknowledge that the outbreak has already triggered a period of global economic slowdown or a global recession. The COVID-19 pandemic has already had a material impact on the Company’s operations (See Note 5 – “Leases”) and could continue to have material and adverse effects on our financial condition, results of operations and cash flows in the near term due to, but not limited to, the following: • reduced economic activity severely impacts our tenants' businesses, financial condition and liquidity and has caused tenants to be unable to fully meet their obligations to us or to otherwise seek modifications of such obligations, resulting in increases in uncollectible receivables and reductions in rental income; • a prolonged economic recession in the U.S. would negatively impact the Company’s ability to lease space and negotiate and maintain favorable rents causing reductions in occupancy and rental income; • the negative financial impact of the pandemic could impact our future compliance with financial covenants of our credit facility and other debt agreements; and • weaker economic conditions and defaults or failures by tenants to pay rent when due could cause us to recognize impairment in value of our tangible or intangible assets. The extent to which the COVID-19 pandemic impacts the Company’s operations and those of our tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) In April 2020, the FASB issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under existing lease guidance, the Company would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated with the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A grants relief to entities, allowing them an election to not evaluate whether lease-related relief that lessors provide to mitigate the economic effects of COVID-19 on lessees is a lease modification under Topic 842, Leases. An entity that makes this election can then elect whether to apply the modification guidance (i.e. assume the relief was always contemplated by the contract or assume the relief was not contemplated by the contract). Both lessees and lessors may make this election. The Company has elected to apply such relief and will avail itself of the election to avoid performing a lease by lease analysis. |
Restricted Cash | Restricted Cash 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: March 31, 2021 2020 Cash and cash equivalents $ 11,586 $ 5,401 Restricted cash 2,080 1,072 Total cash, cash equivalents, and restricted cash $ 13,666 $ 6,473 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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: March 31, 2021 2020 Cash and cash equivalents $ 11,586 $ 5,401 Restricted cash 2,080 1,072 Total cash, cash equivalents, and restricted cash $ 13,666 $ 6,473 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Summary of Rental Income Related to Operating Leases | Rental income related to the Company's operating leases is comprised of the following: Three Months Ended March 31, 2021 2020 Rental income - fixed payments $ 23,889 $ 24,030 Rental income - variable payments (a) 5,941 6,075 Amortization of acquired market leases, net 170 595 Rental income $ 30,000 $ 30,700 (a) Primarily includes tenant recovery income for real estate taxes, common area maintenance and insurance. |
Acquired Intangible Assets an_2
Acquired Intangible Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Intangible assets: Acquired in-place lease value $ 156,918 $ 156,918 Acquired above market lease value 45,742 45,742 Accumulated amortization (134,612 ) (131,121 ) Acquired lease intangibles, net $ 68,048 $ 71,539 Intangible liabilities: Acquired below market lease value $ 70,260 $ 70,260 Accumulated amortization (29,510 ) (28,602 ) Acquired below market lease intangibles, net $ 40,750 $ 41,658 |
Schedule of Amortization of Acquired In Place Lease Value, Above Market and Below Market Lease Values | Amortization pertaining to acquired in-place lease value, above market lease value and below market lease value is summarized below: Three Months Ended March 31, 2021 2020 Amortization recorded as amortization expense: Acquired in-place lease value $ 2,752 $ 3,728 Amortization recorded as a (reduction) increase to rental income: Acquired above market leases $ (738 ) $ (783 ) Acquired below market leases 908 1,378 Net rental income increase $ 170 $ 595 |
Schedule of Estimated Amortization of Intangible Lease Assets and Liabilities | Estimated amortization of the respective intangible lease assets and liabilities as of March 31, 2021 for each of the five succeeding years and thereafter is as follows: Acquired In-Place Leases Above Market Leases Below Market Leases 2021 (remainder of year) $ 7,475 $ 2,201 $ 2,680 2022 7,600 2,649 3,366 2023 6,397 2,463 3,108 2024 5,412 2,296 2,932 2025 3,620 2,030 2,741 Thereafter 14,455 11,450 25,923 Total $ 44,959 $ 23,089 $ 40,750 |
Debt and Derivative Instrumen_2
Debt and Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Mortgages and Credit Facilities Payable | As of March 31, 2021 and December 31, 2020, the Company had the following mortgages and credit facility payable: March 31, 2021 December 31, 2020 Type of Debt Principal Amount Weighted Average Interest Rate Principal Amount Weighted Average Interest Rate Fixed rate mortgages payable $ 147,675 4.11 % $ 163,738 4.25 % Variable rate mortgages payable with swap agreements 213,345 3.40 % 251,595 3.33 % Variable rate mortgages payable without swap agreements 684 1.72 % 684 1.75 % Mortgages payable $ 361,704 3.69 % $ 416,017 3.69 % Credit facility payable 259,000 3.60 % 215,000 3.89 % Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps $ 620,704 3.65 % $ 631,017 3.76 % Add: Unamortized mortgage premiums 215 419 Less: Unamortized debt issuance costs (2,386 ) (2,718 ) Total debt $ 618,533 $ 628,718 |
Schedule of Principal Payments and Maturities of Company's Debt | As of March 31, 2021, scheduled principal payments and maturities on the Company’s debt were as follows: March 31, 2021 Scheduled Principal Payments and Maturities by Year: Scheduled Principal Payments Maturities of Mortgage Loans Maturity of Credit Facility Total 2021 (remainder of the year) $ 1,167 $ 28,810 $ — $ 29,977 2022 615 101,537 109,000 211,152 2023 326 91,230 150,000 241,556 2024 341 — — 341 2025 295 92,656 — 92,951 Thereafter — 44,727 — 44,727 Total $ 2,744 $ 358,960 $ 259,000 $ 620,704 |
Summary of Interest Rate Swap Contracts Outstanding | The following table summarizes the Company’s interest rate swap contracts outstanding as of March 31, 2021. Date Entered Effective Date Maturity Date Pay Fixed Rate (a) Notional Amount Fair Value at March 31, 2021 Liabilities February 11, 2015 March 2, 2015 March 1, 2022 2.02 % 6,114 (106 ) April 7, 2015 April 7, 2015 April 7, 2022 1.74 % 48,501 (787 ) September 17, 2015 September 17, 2015 September 17, 2022 1.90 % 13,700 (351 ) October 2, 2015 November 1, 2015 November 1, 2022 1.79 % 13,100 (338 ) December 23, 2015 December 23, 2015 January 2, 2026 2.30 % 26,000 (1,743 ) June 7, 2016 July 1, 2016 July 1, 2023 1.42 % 43,680 (1,152 ) July 21, 2016 August 1, 2016 August 1, 2023 1.30 % 47,550 (1,143 ) June 5, 2017 May 31, 2017 May 15, 2022 1.90 % 14,700 (292 ) August 23, 2018 September 4, 2018 August 1, 2023 2.73 % 60,000 (3,451 ) August 23, 2018 September 4, 2018 August 1, 2023 2.74 % 25,000 (1,438 ) August 23, 2018 September 4, 2018 August 1, 2023 2.74 % 25,000 (1,441 ) August 23, 2018 September 4, 2018 August 1, 2023 2.73 % 40,000 (2,301 ) $ 363,345 $ (14,543 ) (a) Receive floating rate index based upon one-month LIBOR. At March 31, 2021, the one-month LIBOR was 0.11%. |
Schedule of Effect of Derivatives on Consolidated Statements of Operations and Other Comprehensive 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 months ended March 31, 2021 and 2020. Three Months Ended March 31, Derivatives in Cash Flow Hedging Relationships 2021 2020 Effective portion of derivatives $ 1,161 $ (14,552 ) Reclassification adjustment for amounts included in net gain or loss (effective portion) $ 1,864 $ 403 |
Distributions (Tables)
Distributions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Distributions [Abstract] | |
Schedule of Distributions Paid, Declared and Rescinded | The table below presents the distributions paid and declared during the three months ended March 31, 2021 and 2020. Three Months Ended March 31, 2021 2020 Distributions paid (1) $ — $ 10,841 Distributions declared (2) $ — $ 8,173 (1) The distribution paid in 2020 was authorized in the fourth quarter of 2019 and paid during the first quarter of 2020 to stockholders of record as of December 31, 2019. (2) The distribution declared during the first quarter of 2020 was rescinded during the second quarter. |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 Outstanding at December 31, 2020 6,457 683 Granted — — Vested — — Outstanding at March 31, 2021 6,457 683 |
Transactions with Related Par_2
Transactions with Related Parties (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table summarizes the Company’s related party transactions for the three months ended March 31, 2021 and 2020. Certain compensation and fees payable to the Business Manager for services provided to the Company are limited to maximum amounts. Three Months Ended March 31, Unpaid amounts as of 2021 2020 March 31, 2021 December 31, 2020 General and administrative reimbursements (a) $ 309 $ 329 $ 235 $ 237 Real estate management fees $ 1,236 $ 1,085 $ 464 $ 387 Property operating expenses 350 343 91 178 Construction management fees — 4 4 4 Leasing fees 61 83 65 77 Total real estate management related costs (b) $ 1,647 $ 1,515 $ 624 $ 646 Business management fees (c) $ 2,234 $ 2,229 $ 2,234 $ 4,465 (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 ) 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). ( c ) 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. Unpaid amounts are included in due to related parties on the consolidated balance sheets. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities Measured on a Recurring Basis | 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 March 31, 2021 and December 31, 2020, respectively. Fair Value Level 1 Level 2 Level 3 Total March 31, 2021 Interest rate swap agreements - Other assets $ — $ — $ — $ — Interest rate swap agreements - Other liabilities $ — $ 14,543 $ — $ 14,543 December 31, 2020 Interest rate swap agreements - Other assets $ — $ — $ — $ — Interest rate swap agreements - Other liabilities $ — $ 17,568 $ — $ 17,568 |
Organization (Narrative) (Detai
Organization (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Jan. 31, 2020Property | Mar. 31, 2021ft²PropertyState | Sep. 30, 2020Property | |
Organization [Line Items] | |||
Target percentage of grocery-anchored property | 100.00% | ||
Number of properties sold | 3 | 15 | |
Number of retail properties owned | 44 | ||
Square footage of real estate properties owned | ft² | 6,469,300 | ||
Number of states in which company owns real estate properties | State | 21 | ||
Weighted average physical occupancy rate of property portfolio | 91.90% | ||
Weighted average economic occupancy rate of property portfolio | 92.40% | ||
DRP [Member] | |||
Organization [Line Items] | |||
Suspension effective date | Jun. 6, 2020 | ||
Share Repurchase Program [Member] | |||
Organization [Line Items] | |||
Percentage of share price on repurchase of shares | 80.00% | ||
Suspension effective date | Jun. 26, 2020 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Reconciliation of Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 11,586 | $ 12,906 | $ 5,401 | |
Restricted cash | 2,080 | 1,079 | 1,072 | |
Total cash, cash equivalents, and restricted cash | $ 13,666 | $ 13,985 | $ 6,473 | $ 5,533 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) | 3 Months Ended | 36 Months Ended | 101 Months Ended | |||||
Mar. 31, 2021 | Mar. 31, 2020 | Oct. 16, 2015 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 03, 2020 | Mar. 21, 2019 | Mar. 20, 2019 | |
Equity [Line Items] | ||||||||
Common stock, shares sold | 36,022,368 | 33,534,022 | 36,022,368 | 36,022,368 | ||||
Proceeds from offering | $ 834,399,000 | |||||||
Common stock, shares outstanding | 36,022,368 | 36,022,368 | 36,022,368 | |||||
Distribution reinvestment plan, shares | 5,574,215 | |||||||
Shares repurchased through the share repurchase program | 3,092,634 | |||||||
Distribution reinvested | $ 4,547,000 | |||||||
Stock repurchase program, amount | $ 0 | 102,000 | ||||||
Liabilities | $ 715,770,000 | $ 715,770,000 | $ 732,091,000 | |||||
Third Amended and Restated Share Repurchase Program [Member] | ||||||||
Equity [Line Items] | ||||||||
Limit on share repurchases as a percentage of proceeds of the distribution reinvestment program | 50.00% | |||||||
Description of share repurchase program | Under the Third A&R SRP, the Company is authorized to make ordinary repurchases and Exceptional Repurchases at a price equal to 80.0% of the “share price,” which is defined in the Third A&R SRP as an amount equal to the lesser of: (A) $25, as adjusted under certain circumstances, including, among other things, if the applicable shares were purchased from the Company at a discounted price; or (B) the most recently disclosed estimated value per share. Prior to the amendment, the Company was authorized to make Exceptional Repurchases at a price equal to 100% of the “share price.” The Third A&R SRP provides the Company’s board of directors with the discretion to reduce the funding limit for share repurchases. The Third A&R SRP limits the dollar amount for any repurchases made by the Company each calendar quarter to an amount equal to a percentage determined in the sole discretion of the board on a quarterly basis that will not be less than 50% of the net proceeds from the DRP during the applicable quarter. As the Company’s board of directors has suspended the SRP, there is no current effective limit based on % of the net proceeds from the DRP. See Note 1 – “Organization” for further discussion on the suspension of the SRP. The Company continues to limit the number of shares repurchased during any calendar year to 5% of the number of shares outstanding on December 31st of the previous calendar year, as adjusted for any stock splits or other combinations. If either or both of the repurchase limitations prevent the Company from repurchasing all of the shares offered for repurchase during a calendar quarter, the Company will repurchase shares, on a pro rata basis within each category below, in accordance with the repurchase limitations in the following order: (a) first, all Exceptional Repurchases and (b) second, all ordinary repurchases. | |||||||
Third Amended and Restated Share Repurchase Program [Member] | Exceptional Repurchases [Member] | ||||||||
Equity [Line Items] | ||||||||
Percentage of share price on repurchase of shares | 80.00% | |||||||
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% | |||||||
Prior Share Repurchase Agreement [Member] | Exceptional Repurchases [Member] | ||||||||
Equity [Line Items] | ||||||||
Percentage of share price on repurchase of shares | 100.00% | |||||||
Stock Repurchase Program [Member] | ||||||||
Equity [Line Items] | ||||||||
Liabilities | $ 0 | $ 0 | ||||||
Minimum [Member] | ||||||||
Equity [Line Items] | ||||||||
Stock repurchase program, to be held | 1 year | |||||||
Maximum [Member] | Second Amended and Restated Share Repurchase Program [Member] | ||||||||
Equity [Line Items] | ||||||||
Stock repurchase program per share amount | $ 25 | |||||||
Percentage of share price on repurchase of shares | 80.00% | |||||||
Maximum [Member] | Third Amended and Restated Share Repurchase Program [Member] | ||||||||
Equity [Line Items] | ||||||||
Percentage of prior fiscal year end outstanding shares that may be repurchased | 5.00% | |||||||
DRP [Member] | ||||||||
Equity [Line Items] | ||||||||
Distribution reinvested | $ 0 | $ 4,547,000 | ||||||
Net proceeds from distribution reinvestment | $ 0 |
Dispositions - Additional Infor
Dispositions - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Jan. 31, 2020USD ($)Property | Mar. 31, 2020USD ($) | Sep. 30, 2020Property | |
Assets Of Disposal Group Including Discontinued Operation [Abstract] | |||
Number of properties sold | Property | 3 | 15 | |
Cash proceeds from sale of property | $ | $ 37,255 | $ 37,255 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)OperatingLease | Dec. 31, 2020USD ($) | |
Operating Leased Assets [Line Items] | ||
Number of retail operating leases | OperatingLease | 700 | |
Accounts and rent receivable, net | $ 20,001 | $ 21,851 |
COVID-19 [Member] | ||
Operating Leased Assets [Line Items] | ||
Accounts and rent receivable, net | $ 20,001 | |
Allowance for bad debts | 3,082 | |
Deferred rent receivable | $ 3,299 | |
Minimum [Member] | ||
Operating Leased Assets [Line Items] | ||
Lessor, operating leases, remaining lease term | 1 year | |
Maximum [Member] | ||
Operating Leased Assets [Line Items] | ||
Lessor, operating leases, remaining lease term | 16 years |
Leases - Summary of Rental Inco
Leases - Summary of Rental Income Related to Operating Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Operating Leases Lease Income [Abstract] | |||
Rental income - fixed payments | $ 23,889 | $ 24,030 | |
Rental income - variable payments | [1] | 5,941 | 6,075 |
Amortization of acquired market leases, net | 170 | 595 | |
Rental income | $ 30,000 | $ 30,700 | |
[1] | Primarily includes tenant recovery income for real estate taxes, common area maintenance and insurance. |
Acquired Intangible Assets an_3
Acquired Intangible Assets and Liabilities (Schedule of Intangible Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Intangible assets: | ||
Accumulated amortization | $ (134,612) | $ (131,121) |
Acquired lease intangibles, net | 68,048 | 71,539 |
Intangible liabilities: | ||
Acquired below market lease value | 70,260 | 70,260 |
Accumulated amortization | (29,510) | (28,602) |
Acquired below market lease intangibles, net | 40,750 | 41,658 |
Acquired in-place lease value [Member] | ||
Intangible assets: | ||
Acquired intangible assets | 156,918 | 156,918 |
Acquired lease intangibles, net | 44,959 | |
Acquired above market lease value [Member] | ||
Intangible assets: | ||
Acquired intangible assets | 45,742 | $ 45,742 |
Acquired lease intangibles, net | $ 23,089 |
Acquired Intangible Assets an_4
Acquired Intangible Assets and Liabilities (Schedule of Amortization of Acquired In Place Lease Value, Above Market and Below Market Lease Values) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization recorded as a (reduction) increase to rental income | $ 170 | $ 595 |
Acquired in-place lease value [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization recorded as amortization expense | 2,752 | 3,728 |
Acquired above market lease value [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization recorded as a (reduction) increase to rental income | (738) | (783) |
Acquired below market lease value [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization recorded as a (reduction) increase to rental income | $ 908 | $ 1,378 |
Acquired Intangible Assets an_5
Acquired Intangible Assets and Liabilities (Schedule of Estimated Amortization of Intangible Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Future amortization for acquired in-place and above market lease assets: | ||
Acquired lease intangibles, net | $ 68,048 | $ 71,539 |
Future amortization for below market lease liabilities: | ||
2021 (remainder of year) | 2,680 | |
2022 | 3,366 | |
2023 | 3,108 | |
2024 | 2,932 | |
2025 | 2,741 | |
Thereafter | 25,923 | |
Total | 40,750 | |
Acquired in-place lease value [Member] | ||
Future amortization for acquired in-place and above market lease assets: | ||
2021 (remainder of year) | 7,475 | |
2022 | 7,600 | |
2023 | 6,397 | |
2024 | 5,412 | |
2025 | 3,620 | |
Thereafter | 14,455 | |
Acquired lease intangibles, net | 44,959 | |
Above Market Leases [Member] | ||
Future amortization for acquired in-place and above market lease assets: | ||
2021 (remainder of year) | 2,201 | |
2022 | 2,649 | |
2023 | 2,463 | |
2024 | 2,296 | |
2025 | 2,030 | |
Thereafter | 11,450 | |
Acquired lease intangibles, net | $ 23,089 |
Debt and Derivative Instrumen_3
Debt and Derivative Instruments (Schedule of Mortgages and Credit Facility Payable) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Mortgage Loans On Real Estate [Line Items] | ||
Mortgages payable | $ 361,704 | $ 416,017 |
Credit facility payable | 259,000 | 215,000 |
Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps | 620,704 | 631,017 |
Add: Unamortized mortgage premiums | 215 | 419 |
Less: Unamortized debt issuance costs | (2,386) | (2,718) |
Total debt | $ 618,533 | $ 628,718 |
Mortgages Payable, Weighted Average Interest Rate | 3.69% | 3.69% |
Credit Facilities Payable, Weighted Average Interest Rate | 3.60% | 3.89% |
Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps, Weighted Average Interest Rate | 3.65% | 3.76% |
Fixed rate mortgages payable [Member] | ||
Mortgage Loans On Real Estate [Line Items] | ||
Mortgages payable | $ 147,675 | $ 163,738 |
Mortgages Payable, Weighted Average Interest Rate | 4.11% | 4.25% |
Variable rate mortgages payable with swap agreements [Member] | ||
Mortgage Loans On Real Estate [Line Items] | ||
Mortgages payable | $ 213,345 | $ 251,595 |
Mortgages Payable, Weighted Average Interest Rate | 3.40% | 3.33% |
Variable rate mortgages payable without swap agreements [Member] | ||
Mortgage Loans On Real Estate [Line Items] | ||
Mortgages payable | $ 684 | $ 684 |
Mortgages Payable, Weighted Average Interest Rate | 1.72% | 1.75% |
Debt and Derivative Instrumen_4
Debt and Derivative Instruments (Narrative) (Details) | Sep. 29, 2020 | Mar. 31, 2021USD ($)Property | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020 |
Debt Instrument [Line Items] | |||||
Debt principal balance | $ 620,704,000 | $ 631,017,000 | |||
Estimated fair value of debt | 614,112,000 | 625,751,000 | |||
Outstanding line of credit | 259,000,000 | $ 215,000,000 | |||
Outstanding balance repaid | 8,097,000 | $ 43,022,000 | |||
Interest expense | 6,042,000 | $ 6,498,000 | |||
Amount expected to be reclassified from accumulated other comprehensive income (loss) into income in the next twelve months | $ 7,216,000 | ||||
Mortgages Payable [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt, covenant compliance | the Company was current on all of the payments and except for two mortgage loans with covenant violations which only required cash maintenance accounts be established for their two mortgaged properties, all other mortgage loans were in compliance with their financial covenants. | ||||
Weighted Average Years to Maturity | 2 years 9 months 18 days | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 200,000,000 | ||||
Line of credit accordion feature to increase available borrowings | 700,000,000 | ||||
Outstanding line of credit | $ 109,000,000 | ||||
Credit facility, interest rate | 2.15% | ||||
Credit facility, maturity date | Aug. 1, 2022 | ||||
Line of credit facility, expiration date, extension period | 1 year | ||||
Revolving Credit Facility [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility available for borrowing | $ 91,000,000 | ||||
Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | 150,000,000 | ||||
Outstanding line of credit | $ 150,000,000 | ||||
Credit facility, interest rate | 4.65% | ||||
Credit facility, maturity date | Aug. 1, 2023 | ||||
Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Number of properties pledged as collateral | Property | 27 | ||||
Debt, covenant compliance | the Company is in compliance with all financial covenants related to the Credit Facility as amended. | ||||
Leverage ratio | 65.00% | 62.50% | |||
Credit Facility [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
LIBOR floor rate | 0.25% |
Debt and Derivative Instrumen_5
Debt and Derivative Instruments (Schedule of Principal Payments and Maturities of Company's Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
2021 (remainder of the year) | $ 29,977 | |
2022 | 211,152 | |
2023 | 241,556 | |
2024 | 341 | |
2025 | 92,951 | |
Thereafter | 44,727 | |
Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps | 620,704 | $ 631,017 |
Maturity of Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
2022 | 109,000 | |
2023 | 150,000 | |
Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps | 259,000 | |
Scheduled Principal Payments [Member] | ||
Debt Instrument [Line Items] | ||
2021 (remainder of the year) | 1,167 | |
2022 | 615 | |
2023 | 326 | |
2024 | 341 | |
2025 | 295 | |
Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps | 2,744 | |
Maturities of Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
2021 (remainder of the year) | 28,810 | |
2022 | 101,537 | |
2023 | 91,230 | |
2025 | 92,656 | |
Thereafter | 44,727 | |
Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps | $ 358,960 |
Debt and Derivative Instrumen_6
Debt and Derivative Instruments (Summary of Interest Rate Swap Contracts Outstanding) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($) | ||
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 liability, notional amount | $ 6,114 | |
Interest Rate Swap One [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities measured on recurring basis | $ (106) | |
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 liability, notional amount | $ 48,501 | |
Interest Rate Swap Two [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities measured on recurring basis | $ (787) | |
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 liability, notional amount | $ 13,700 | |
Interest Rate Swap Three [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities measured on recurring basis | $ (351) | |
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 liability, notional amount | $ 13,100 | |
Interest Rate Swap Four [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities measured on recurring basis | $ (338) | |
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 liability, notional amount | $ 26,000 | |
Interest Rate Swap Five [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities measured on recurring basis | $ (1,743) | |
Interest Rate Swap Six [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 liability, notional amount | $ 43,680 | |
Interest Rate Swap Six [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities measured on recurring basis | $ (1,152) | |
Interest Rate Swap Seven [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 liability, notional amount | $ 47,550 | |
Interest Rate Swap Seven [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities measured on recurring basis | $ (1,143) | |
Interest Rate Swap Eight [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 liability, notional amount | $ 14,700 | |
Interest Rate Swap Eight [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities measured on recurring basis | $ (292) | |
Interest Rate Swap Nine [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 liability, notional amount | $ 60,000 | |
Interest Rate Swap Nine [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities measured on recurring basis | $ (3,451) | |
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 | 2.74% | [1] |
Derivative liability, notional amount | $ 25,000 | |
Interest Rate Swap Ten [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities measured on recurring basis | $ (1,438) | |
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 liability, notional amount | $ 25,000 | |
Interest Rate Swap Eleven [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities measured on recurring basis | $ (1,441) | |
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 | 2.73% | [1] |
Derivative liability, notional amount | $ 40,000 | |
Interest Rate Swap Twelve [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities measured on recurring basis | (2,301) | |
Interest Rate Swap Thirteen [Member] | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | 363,345 | |
Interest Rate Swap Thirteen [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities measured on recurring basis | $ (14,543) | |
[1] | Receive floating rate index based upon one-month LIBOR. At March 31, 2021, the one-month LIBOR was 0.11%. |
Debt and Derivative Instrumen_7
Debt and Derivative Instruments (Summary of Interest Rate Swap Contracts Outstanding) (Parenthetical) (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative [Line Items] | |
Derivative instrument, receive floating rate index | one-month LIBOR |
LIBOR [Member] | |
Derivative [Line Items] | |
One month floating rate | 0.11% |
Debt and Derivative Instrumen_8
Debt and Derivative Instruments (Schedule of Effect of 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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effective portion of derivatives | $ 1,161 | $ (14,552) |
Reclassification adjustment for amounts included in net gain or loss (effective portion) | $ 1,864 | $ 403 |
Distributions (Schedule of Dist
Distributions (Schedule of Distributions Paid, Declared and Rescinded) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($) | ||
Distributions [Abstract] | ||
Distributions paid | $ 10,841 | [1] |
Distributions declared | $ 8,173 | [2] |
[1] | The distribution paid in 2020 was authorized in the fourth quarter of 2019 and paid during the first quarter of 2020 to stockholders of record as of December 31, 2019. | |
[2] | The distribution declared during the first quarter of 2020 was rescinded during the second quarter. |
Earnings (Loss) per Share (Deta
Earnings (Loss) per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Additional shares excluded from the computation of diluted earnings per share | 3,914 | 4,124 |
Equity-Based Compensation - Nar
Equity-Based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restricted Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average remaining period unrecognized compensation expense related to non-vested | 1 year 4 months 24 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] | ||
Weighted average remaining period unrecognized compensation expense related to non-vested | 1 year 4 months 24 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 | |
Restricted Shares and Restricted Share Units [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation expense of unvested share-based awards | $ 50,000 | |
Total fair value at vesting date | 0 | $ 0 |
Non-Employee Directors [Member] | Restricted Shares and Restricted Share Units [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation expense | $ 18,000 | $ 15,000 |
Equity-Based Compensation (Summ
Equity-Based Compensation (Summary of the Restricted Shares and Restricted Share Units) (Details) | Mar. 31, 2021shares |
Restricted Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding, Shares | 6,457 |
Outstanding, Shares | 6,457 |
Restricted Stock Units (RSUs) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding, Shares | 683 |
Outstanding, Shares | 683 |
Segment Reporting (Details)
Segment Reporting (Details) - Segment | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
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 | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | ||
Related Party Transaction [Line Items] | ||||
Due to related parties | $ 3,093 | $ 5,348 | ||
General and Administrative Reimbursements [Member] | ||||
Related Party Transaction [Line Items] | ||||
General and administrative expenses incurred with related party | [1] | 309 | $ 329 | |
Due to related parties | [1] | 235 | 237 | |
Real Estate Management Fees [Member] | ||||
Related Party Transaction [Line Items] | ||||
Real estate management related costs with related party | 1,236 | 1,085 | ||
Due to related parties | 464 | 387 | ||
Property Operating Expenses [Member] | ||||
Related Party Transaction [Line Items] | ||||
Real estate management related costs with related party | 350 | 343 | ||
Due to related parties | 91 | 178 | ||
Construction Management Fees [Member] | ||||
Related Party Transaction [Line Items] | ||||
Real estate management related costs with related party | 4 | |||
Due to related parties | 4 | 4 | ||
Leasing fees [Member] | ||||
Related Party Transaction [Line Items] | ||||
Real estate management related costs with related party | 61 | 83 | ||
Due to related parties | 65 | 77 | ||
Real Estate Management Costs [Member] | ||||
Related Party Transaction [Line Items] | ||||
Real estate management related costs with related party | [2] | 1,647 | 1,515 | |
Due to related parties | [2] | 624 | 646 | |
Business Management Fee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Expenses incurred with related party | [3] | 2,234 | $ 2,229 | |
Due to related parties | [3] | $ 2,234 | $ 4,465 | |
[1] | 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. | |||
[2] | 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). | |||
[3] | 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. Unpaid amounts are included in due to related parties on the consolidated balance sheets. |
Transactions with Related Par_4
Transactions with Related Parties (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transaction [Line Items] | |
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% |
Monthly Real Estate Management Fee Of Single Tenant Property [Member] | Maximum [Member] | |
Related Party Transaction [Line Items] | |
Property management fee, percentage of gross income | 1.90% |
Monthly Real Estate Management Fee Of Any Other Property [Member] | Maximum [Member] | |
Related Party Transaction [Line Items] | |
Property management fee, percentage of gross income | 3.90% |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value Assets and Liabilities Measured on a Recurring Basis) (Details) - Recurring [Member] - Interest Rate Swap Agreements [Member] - Other Liabilities [Member] - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Derivatives Fair Value [Line Items] | ||
Interest rate swap agreements - Other liabilities | $ 14,543 | $ 17,568 |
Level 2 [Member] | ||
Derivatives Fair Value [Line Items] | ||
Interest rate swap agreements - Other liabilities | $ 14,543 | $ 17,568 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Subsequent Event [Line Items] | |||
Repayment of mortgages | $ 54,313 | $ 56 | |
Walgreens Plaza [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Repayment of mortgages | $ 4,650 | ||
Heritage Square Properties [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Repayment of mortgages | $ 4,460 |