Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 07, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-55619 | |
Entity Registrant Name | LIGHTSTONE VALUE PLUS REIT III, INC. | |
Entity Central Index Key | 0001563756 | |
Entity Tax Identification Number | 46-1140492 | |
Entity Incorporation, State or Country Code | MD | |
Entity Address, Address Line One | 1985 Cedar Bridge Avenue | |
Entity Address, Address Line Two | Suite 1 | |
Entity Address, City or Town | Lakewood | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08701 | |
City Area Code | (732) | |
Local Phone Number | 367-0129 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,800,000 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Investment property: | ||
Land and improvements | $ 21,732 | $ 21,722 |
Building and improvements | 92,648 | 92,493 |
Furniture and fixtures | 16,931 | 16,960 |
Construction in progress | 94 | 27 |
Gross investment property | 131,405 | 131,202 |
Less: accumulated depreciation | (38,109) | (36,479) |
Net investment property | 93,296 | 94,723 |
Investments in unconsolidated affiliated real estate entities | 18,233 | 20,240 |
Cash and cash equivalents | 4,531 | 3,848 |
Marketable securities, available for sale | 5,339 | 7,196 |
Accounts receivable and other assets | 4,197 | 1,971 |
Total Assets | 125,596 | 127,978 |
Liabilities and Stockholders’ Equity | ||
Accounts payable and other accrued expenses | 3,560 | 2,511 |
Mortgages payable, net | 57,165 | 57,161 |
Distributions payable | 970 | |
Due to related parties | 1,262 | 363 |
Total Liabilities | 61,987 | 61,005 |
Company’s stockholders’ equity: | ||
Preferred stock, $0.01 par value; 50.0 million shares authorized, none issued and outstanding | ||
Common stock, $0.01 par value; 200.0 million shares authorized, 12.9 million shares issued and outstanding | 129 | 129 |
Additional paid-in-capital | 110,119 | 110,462 |
Accumulated other comprehensive loss | (125) | (166) |
Accumulated deficit | (58,606) | (55,544) |
Total Company stockholders’ equity | 51,517 | 54,881 |
Noncontrolling interests | 12,092 | 12,092 |
Total Stockholders’ Equity | 63,609 | 66,973 |
Total Liabilities and Stockholders’ Equity | $ 125,596 | $ 127,978 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, par value per share | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 50,000 | 50,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value per share | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 200,000 | 200,000 |
Common Stock, shares issued | 12,900 | 12,900 |
Common Stock, shares outstanding | 12,900 | 12,900 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Revenues | $ 8,719 | $ 7,966 | $ 14,989 | $ 14,332 |
Expenses: | ||||
Property operating expenses | 5,318 | 5,103 | 9,997 | 9,682 |
Real estate taxes | 340 | 267 | 704 | 597 |
General and administrative costs | 823 | 672 | 1,496 | 1,315 |
Depreciation and amortization | 828 | 1,114 | 1,662 | 2,294 |
Total expenses | 7,309 | 7,156 | 13,859 | 13,888 |
Interest expense | (1,336) | (1,333) | (2,673) | (2,571) |
Loss from investments in unconsolidated affiliated real estate entities | (253) | (1,002) | (1,754) | (2,180) |
Other income, net | 104 | 242 | 235 | 317 |
Net loss | (75) | (1,283) | (3,062) | (3,990) |
Less: net loss attributable to noncontrolling interests | ||||
Net loss applicable to Company’s common shares | $ (75) | $ (1,283) | $ (3,062) | $ (3,990) |
Net (loss)/income per Company's common share, basic | $ (0.01) | $ (0.10) | $ (0.24) | $ (0.31) |
Net (loss)/income per Company's common share, diluted | $ (0.01) | $ (0.10) | $ (0.24) | $ (0.31) |
Weighted average number of common shares outstanding, basic | 12,902 | 12,973 | 12,916 | 12,998 |
Weighted average number of common shares outstanding, diluted | 12,902 | 12,973 | 12,916 | 12,998 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Net loss | $ (75) | $ (1,283) | $ (3,062) | $ (3,990) |
Other comprehensive income: | ||||
Holding gain on marketable securities, available for sale | 23 | 24 | 41 | 24 |
Comprehensive loss | (52) | (1,259) | (3,021) | (3,966) |
Less: Comprehensive loss attributable to noncontrolling interests | ||||
Comprehensive loss attributable to the Company’s common shares | $ (52) | $ (1,259) | $ (3,021) | $ (3,966) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total | |
Beginning balance, value at Dec. 31, 2022 | $ 130 | $ 111,585 | $ (250) | $ (44,818) | $ 12,092 | $ 78,739 | |
Beginning balance, shares at Dec. 31, 2022 | 13,043 | ||||||
Net loss | (3,990) | (3,990) | |||||
Other comprehensive income | 24 | 24 | |||||
Distributions declared | [1] | (1,945) | (1,945) | ||||
Redemption and cancellation of shares | $ (1) | (864) | (865) | ||||
Redemption and cancellation of shares, shares | (86) | ||||||
Ending balance, value at Jun. 30, 2023 | $ 129 | 110,721 | (226) | (50,753) | 12,092 | 71,963 | |
Ending balance, shares at Jun. 30, 2023 | 12,957 | ||||||
Beginning balance, value at Mar. 31, 2023 | $ 130 | 111,336 | (250) | (48,500) | 12,092 | 74,808 | |
Beginning balance, shares at Mar. 31, 2023 | 13,017 | ||||||
Net loss | (1,283) | (1,283) | |||||
Other comprehensive income | 24 | 24 | |||||
Distributions declared | [2] | (970) | (970) | ||||
Redemption and cancellation of shares | $ (1) | (615) | (616) | ||||
Redemption and cancellation of shares, shares | (60) | ||||||
Ending balance, value at Jun. 30, 2023 | $ 129 | 110,721 | (226) | (50,753) | 12,092 | 71,963 | |
Ending balance, shares at Jun. 30, 2023 | 12,957 | ||||||
Beginning balance, value at Dec. 31, 2023 | $ 129 | 110,462 | (166) | (55,544) | 12,092 | 66,973 | |
Beginning balance, shares at Dec. 31, 2023 | 12,932 | ||||||
Net loss | (3,062) | (3,062) | |||||
Other comprehensive income | 41 | 41 | |||||
Redemption and cancellation of shares | (343) | (343) | |||||
Redemption and cancellation of shares, shares | (35) | ||||||
Ending balance, value at Jun. 30, 2024 | $ 129 | 110,119 | (125) | (58,606) | 12,092 | 63,609 | |
Ending balance, shares at Jun. 30, 2024 | 12,897 | ||||||
Beginning balance, value at Mar. 31, 2024 | $ 129 | 110,439 | (148) | (58,531) | 12,092 | 63,981 | |
Beginning balance, shares at Mar. 31, 2024 | 12,930 | ||||||
Net loss | (75) | (75) | |||||
Other comprehensive income | 23 | 23 | |||||
Redemption and cancellation of shares | (320) | (320) | |||||
Redemption and cancellation of shares, shares | (33) | ||||||
Ending balance, value at Jun. 30, 2024 | $ 129 | $ 110,119 | $ (125) | $ (58,606) | $ 12,092 | $ 63,609 | |
Ending balance, shares at Jun. 30, 2024 | 12,897 | ||||||
[1]Distributions per share were $0.150.[2]Distributions per share were $0.075. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (3,062) | $ (3,990) |
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities: | ||
Loss from investments in unconsolidated affiliated real estate entities | 1,754 | 2,180 |
Depreciation and amortization | 1,662 | 2,294 |
Amortization of deferred financing costs | 148 | 107 |
Other non-cash adjustments | 63 | 31 |
Changes in assets and liabilities: | ||
Increase in accounts receivable and other assets | (2,357) | (1,077) |
Increase in accounts payable and other accrued expenses | 1,051 | 399 |
Increase in due to related parties | 721 | 94 |
Cash (used in)/provided by operating activities | (20) | 38 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investment property | (204) | (307) |
Purchase of marketable securities | (96) | (10,373) |
Proceeds from sale of marketable securities | 2,030 | 4,403 |
Distributions from unconsolidated affiliated real estate entity | 627 | |
Investments in unconsolidated affiliated real estate entities | (197) | (1,002) |
Cash provided by/(used in) investing activities | 2,160 | (7,279) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments on mortgages payable | (144) | |
Distributions to common stockholders | (970) | (975) |
Redemption and cancellation of common shares | (343) | (865) |
Cash used in financing activities | (1,457) | (1,840) |
Change in cash, cash equivalents and restricted cash | 683 | (9,081) |
Cash, cash equivalents and restricted cash, beginning of year | 3,853 | 18,391 |
Cash, cash equivalents and restricted cash, end of period | 4,536 | 9,310 |
Supplemental cash flow information for the periods indicated is as follows: | ||
Cash paid for interest | 2,545 | 2,419 |
Cash paid for taxes | 53 | 212 |
Investments in unconsolidated affiliated real estate entities in due to related parties | 178 | |
Distributions declared, but not paid | 970 | |
Holding gain/loss on marketable securities, available for sale | 41 | 24 |
Cash and cash equivalents | 4,531 | 9,310 |
Restricted cash | 5 | |
Total cash, cash equivalents and restricted cash | $ 4,536 | $ 9,310 |
Business and Structure
Business and Structure | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Structure | 1. Business and Structure Lightstone Value Plus REIT III, Inc. (“Lightstone REIT III”) is a Maryland corporation, formed on October 5, 2012, which elected to qualify as a real estate investment trust (“REIT”) for United States (the “U.S.”) federal income tax purposes beginning with the taxable year ended December 31, 2015. Lightstone REIT III is structured as an umbrella partnership REIT, or UPREIT, and substantially all of its current and future business will be conducted through Lightstone Value Plus REIT III LP, a Delaware limited partnership (the “Operating Partnership”). As of June 30, 2024, Lightstone REIT III had a 99% Lightstone REIT III and the Operating Partnership and its subsidiaries are collectively referred to as the “Company” and the use of “we,” “our,” “us” or similar pronouns in these consolidated financial statements refers to Lightstone REIT III, its Operating Partnership or the Company as required by the context in which such pronoun is used. Through the Operating Partnership, the Company owns, operates and develops commercial properties and makes real estate-related investments. Since its inception, the Company has primarily acquired, developed and operated commercial hospitality properties, principally consisting of limited-service hotels and one full-service hotel all located in the U.S. Although the Company has historically acquired hotels, it has and may continue to purchase other types of real estate. Assets other than hotels may include, without limitation, office buildings, shopping centers, business and industrial parks, manufacturing facilities, single-tenant properties, multifamily properties, student housing properties, warehouses and distribution facilities and medical/life sciences office buildings. The Company’s real estate investments are held by it alone or jointly with other parties. In addition, the Company may invest up to 20% of its net assets in collateralized debt obligations, commercial mortgage-backed securities (“CMBS”) and mortgage and mezzanine loans secured, directly or indirectly, by the same types of properties which it may acquire directly. Although most of its investments are these types, the Company may invest in whatever types of real estate or real estate-related investments that it believes are in its best interests. The Company evaluates all of its real estate investments as one operating segment. The Company currently intends to hold its investments until such time as it determines that a sale or other disposition appears to be advantageous to achieve its investment objectives or until it appears that the objectives will not be met. As of June 30, 2024, the Company (i) wholly owned and consolidated the operating results and financial condition of eight limited service hotels containing a total of 872 rooms, (ii) held an unconsolidated 50% membership interest in LVP LIC Hotel JV LLC (the “Hilton Garden Inn Joint Venture”), which owns one limited service hotel, and (iii) held an unconsolidated 25% membership interest in Bedford Avenue Holdings LLC (the “Williamsburg Moxy Hotel Joint Venture”), which owns one full service hotel. The Company accounts for its unconsolidated membership interests in the Hilton Garden Inn Joint Venture and the Williamsburg Moxy Hotel Joint Venture under the equity method of accounting. The Hilton Garden Inn Joint Venture owns a 183-room, limited-service hotel (the “Hilton Garden Inn – Long Island City”) located in the Long Island City neighborhood in the Queens borough of New York City. The Williamsburg Moxy Hotel Joint Venture developed, constructed and owns a 216-room branded hotel (the “Williamsburg Moxy Hotel”) located in the Williamsburg neighborhood in the Brooklyn borough of New York City, which opened on March 7, 2023. Both the Hilton Garden Inn Joint Venture and the Williamsburg Moxy Hotel Joint Venture are between the Company and related parties. The Company’s advisor is Lightstone Value Plus REIT III LLC (the “Advisor”), which is majority owned by David Lichtenstein. On July 16, 2014, the Advisor contributed $ 2 200 20,000 200 10.00 222,222 9.00 242 50,000 12.1 The Company has no employees. The Company is dependent on the Advisor and certain affiliates of the Sponsor for performing a full range of services that are essential to it, including asset management, property management (excluding its hospitality properties, which are each managed by an unrelated third party property manager) and acquisition, disposition and financing activities, and other general administrative responsibilities, such as tax, accounting, legal, information technology and investor relations services. If the Advisor and its affiliates are unable to provide these services to the Company, it would be required to provide the services itself or obtain the services from other parties. The Company’s Common Shares are not currently listed on a national securities exchange. The Company may seek to list its Common Shares for trading on a national securities exchange only if a majority of its independent directors believe listing would be in the best interest of its stockholders. The Company does not intend to list its Common Shares at this time. The Company does not anticipate that there would be any active market for its Common Shares until they are listed for trading. Noncontrolling Interests – Partners of the Operating Partnership Limited Partner On July 16, 2014, the Advisor contributed $2 to the Operating Partnership in exchange for 200 limited partner units in the Operating Partnership. The Advisor has the right to convert limited partner units into cash or, at the Company’s option, an equal number of its Common Shares. Special Limited Partner In connection with the Company’s Offering, the Special Limited Partner purchased from the Operating Partnership an aggregate of 242 Subordinated Participation Interests at a cost of $50,000 per unit, or aggregate consideration of $12.1 million. As the indirect majority owner of the Special Limited Partner, Mr. Lichtenstein is the beneficial owner of a 99% interest in such Subordinated Participation Interests and will thus receive an indirect benefit from any distributions made in respect thereof. These Subordinated Participation Interests may entitle the Special Limited Partner to a portion of any regular distributions that the Company makes to its stockholders, but only after its stockholders have received a stated preferred return. However, from inception through June 30, 2024, there have been no distributions declared on the Subordinated Participation Interests. Any future distributions on the Subordinated Participation Interests will always be subordinated until stockholders receive a stated preferred return. The Subordinated Participation Interests may also entitle the Special Limited Partner to a portion of any liquidating distributions made by the Operating Partnership. The value of such distributions will depend upon the net proceeds available for distribution upon the Company’s liquidation and, therefore, cannot be determined at the present time. Liquidating distributions to the Special Limited Partner will always be subordinated until stockholders receive a distribution equal to their initial investment plus a stated preferred return. Related Parties The Company’s Advisor and certain affiliates of the Sponsor, including the Special Limited Partner, are related parties of the Company as well as the other public REITs also sponsored and/or advised by these entities. Pursuant to the terms of various agreements, these entities are entitled to compensation and reimbursement for services and costs incurred for services related to the investment, development, management and disposition of the Company’s assets. The compensation is generally based on the cost of acquired properties/investments and the annual revenue earned from such properties/investments, and other such fees and expense reimbursements as outlined in each of the respective agreements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Lightstone REIT III and the Operating Partnership and its subsidiaries (over which Lightstone REIT III exercises financial and operating control). As of June 30, 2024, Lightstone REIT III had a 99% The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements of the Company and related notes as contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Form 10-K”). The unaudited interim consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair presentation of the results for the periods presented. The accompanying unaudited consolidated financial statements of Lightstone Value Plus REIT III, Inc. and its Subsidiaries have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during a reporting period. The most significant assumptions and estimates relate to the valuation of real estate and depreciable lives. Application of these assumptions requires the exercise of judgment as to future uncertainties and, as a result, actual results could differ from these estimates. The consolidated balance sheet as of December 31, 2023 included herein has been derived from the consolidated balance sheet included in the Company’s 2023 Form 10-K. The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. Income Taxes The Company elected to be taxed and qualify as a REIT commencing with the taxable year ended December 31, 2015. As a REIT, the Company generally will not be subject to U.S. federal income tax on its net taxable income that it distributes currently to its stockholders. To maintain its REIT qualification under the Internal Revenue Code of 1986, as amended, or the Code, the Company must meet a number of organizational and operational requirements, including a requirement that it annually distribute to its stockholders at least 90% of its REIT taxable income (which does not equal net income, as calculated in accordance with GAAP), determined without regard to the deduction for dividends paid and excluding any net capital gain. If the Company fails to remain qualified for taxation as a REIT in any subsequent year and does not qualify for certain statutory relief provisions, its income for that year will be taxed at regular corporate rates, and it may be precluded from qualifying for treatment as a REIT for the four-year period following its failure to qualify as a REIT. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. Additionally, even if the Company continues to qualify as a REIT for U.S. federal income tax purposes, it may still be subject to some U.S. federal, state and local taxes on its income and property and to U.S. federal income taxes and excise taxes on its undistributed income, if any. To maintain its qualification as a REIT, the Company engages in certain activities through a taxable REIT subsidiary (“TRS”), including when it acquires a hotel it usually establishes a new TRS and enters into an operating lease agreement for the hotel. As such, the Company is subject to U.S. federal and state income taxes and franchise taxes from these activities. The Company’s income tax benefits and expense are included in other income, net on its consolidated statements of operations. During the three and six months ended June 30, 2024, the Company recorded income tax expense of $ 5 48 3 63 As of June 30, 2024 and December 31, 2023, the Company had no Revenues The following table represents the total revenues from hotel operations on a disaggregated basis: Schedule of revenues from hotel operations For the For the Revenues 2024 2023 2024 2023 Room $ 8,461 $ 7,726 $ 14,516 $ 13,856 Food, beverage and other 258 240 473 476 Total revenues $ 8,719 $ 7,966 $ 14,989 $ 14,332 New Accounting Pronouncements In November 2023, the FASB issued an accounting standards update which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The amendments will require entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within segment profit and loss, as well as the title and position of the CODM. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is evaluating the guidance and the impact it may have on the consolidated financial statements. In December 2023, the FASB issued an accounting standards update which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This update is effective for annual periods beginning after December 15, 2024. The Company is evaluating the guidance and the impact it may have on the consolidated financial statements. The Company has reviewed and determined that other recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations. Concentration of Risk As of June 30, 2024 and December 31, 2023, the Company had cash deposited in certain financial institutions in excess of U.S. federally insured levels. The Company regularly monitors the financial stability of these financial institutions and believes that it is not exposed to any significant credit risk in cash and cash equivalents. Current Environment The Company’s operating results and financial condition are substantially impacted by the overall health of local, U.S. national and global economies and may be influenced by market and other challenges. Additionally, its business and financial performance may be adversely affected by current and future economic and other conditions; including, but not limited to, availability or terms of financings, financial markets volatility and uncertainty as a result of recent banking failures, political upheaval or uncertainty, natural and man-made disasters, terrorism and acts of war, unfavorable changes in laws and regulations, outbreaks of contagious diseases, cybercrime, loss of key relationships, inflation and recession. The Company’s overall performance depends in part on worldwide economic and geopolitical conditions and their impacts on consumer behavior. Worsening economic conditions, increases in costs due to inflation, higher interest rates, labor and supply chain challenges and other changes in economic conditions could adversely affect the Company’s future results from operations and its financial condition. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliated Real Estate Entities | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliated Real Estate Entities | 3. Investments in Unconsolidated Affiliated Real Estate Entities The entities below are partially owned by the Company. The Company accounts for these investments under the equity method of accounting as the Company exercises significant influence, but does not exercise financial and operating control over these entities. A summary of the Company’s investments in unconsolidated affiliated real estate entities is as follows: Schedule of investments in the unconsolidated affiliated real estate As of Entity Date of Ownership % June 30, December 31, Hilton Garden Inn Joint Venture March 27, 2018 50 % $ 8,523 $ 9,405 Williamsburg Moxy Hotel Joint Venture August 5, 2021 25 % 9,710 10,835 Total investments in unconsolidated affiliated real estate entities $ 18,233 $ 20,240 Hilton Garden Inn Joint Venture On March 27, 2018, the Company and Lightstone Value Plus REIT II, Inc. (“Lightstone REIT II”), a REIT also sponsored by the Company’s Sponsor and a related party, acquired, through the Hilton Garden Inn Joint Venture, the Hilton Garden Inn – Long Island City from an unrelated third party, for aggregate consideration of $ 60.0 25.0 35.0 12.9 50% On May 31, 2023, the Hilton Garden Inn Mortgage was further amended to provide for (i) an extension of the maturity date for an additional five years, (ii) the interest rate to be adjusted to SOFR plus 3.25%, subject to a 6.41% floor, interest-only payments for the first two years of its extended term with principal and interest payments pursuant to a 300-month amortization schedule thereafter and the remaining unpaid balance due in full at its maturity date of May 31, 2028, (iii) the ability to draw up to an additional $ 3.0 1.3 37 The Company and Lightstone REIT II each have a 50% During the six months ended June 30, 2024, the Company received distributions from the Hilton Garden Joint Venture of $ 0.6 0.1 0.4 As of June 30, 2024, the Hilton Garden Inn Joint Venture is in compliance with all of its financial debt covenants. Hilton Garden Inn Joint Venture Financial Information The following table represents the condensed statements of operations for the Hilton Garden Inn Joint Venture for the periods indicated: Schedule of condensed statement of operations For the For the For the For the Revenues $ 3,473 $ 3,115 $ 5,775 $ 5,144 Property operating expenses 1,992 1,907 3,803 3,414 General and administrative costs 13 106 35 132 Depreciation and amortization 598 596 1,206 1,205 Operating income 870 506 731 393 Interest expense (705 ) (825 ) (1,389 ) (1,451 ) Net income/(loss) $ 165 $ (319 ) $ (658 ) $ (1,058 ) Company’s share of earnings (50.00%) $ 83 $ (159 ) $ (329 ) $ (529 ) The following table represents the condensed balance sheets for the Hilton Garden Inn Joint Venture as of the dates indicated: Schedule of condensed balance sheet As of As of June 30, December 31, Investment property, net $ 46,893 $ 48,001 Cash 820 1,741 Other assets 2,024 1,816 Total assets $ 49,737 $ 51,558 Mortgage payable, net $ 32,280 $ 32,273 Other liabilities 1,011 1,075 Members’ capital 16,446 18,210 Total liabilities and members’ capital $ 49,737 $ 51,558 Williamsburg Moxy Hotel Joint Venture On August 5, 2021, the Company formed a joint venture with Lightstone Value Plus REIT IV, Inc. (“Lightstone REIT IV”), a related party REIT also sponsored by the Company’s Sponsor, pursuant to which the Company acquired 25% of Lightstone REIT IV’s membership interest in Bedford Avenue Holdings LLC, which effective on that date became the Williamsburg Moxy Hotel Joint Venture, for aggregate consideration of $ 7.9 As a result, the Company and Lightstone REIT IV have 25% and 75% membership interests, respectively, in the Williamsburg Moxy Hotel Joint Venture. The Company has determined that the Williamsburg Moxy Hotel Joint Venture is a VIE and the Company is not the primary beneficiary, as it was determined that Lightstone REIT IV is the primary beneficiary. Therefore, the Company accounts for its membership interest in the Williamsburg Moxy Hotel Joint Venture in accordance with the equity method because it exerts significant influence over but does not control the Williamsburg Moxy Hotel Joint Venture. All capital contributions and distributions of earnings from the Williamsburg Moxy Hotel Joint Venture are made on a pro rata basis in proportion to each member’s equity interest percentage. Any distributions in excess of earnings from the Williamsburg Moxy Hotel Joint Venture are made to the members pursuant to the terms of the Williamsburg Moxy Hotel Joint Venture’s operating agreement. On August 5, 2021, the Williamsburg Moxy Hotel Joint Venture entered into a development agreement (the “Development Agreement”) with an affiliate of the Sponsor (the “Williamsburg Moxy Developer”) pursuant to which the Williamsburg Moxy Developer was paid a development fee equal to 3% of hard and soft costs, as defined in the Development Agreement, incurred in connection with the development and construction of the Williamsburg Moxy Hotel. Additionally on August 5, 2021, the Williamsburg Moxy Hotel Joint Venture obtained construction financing for the Williamsburg Moxy Hotel as discussed below. Furthermore, certain affiliates of the Sponsor are reimbursed for various development and development-related costs attributable to the Williamsburg Moxy Hotel. The Williamsburg Moxy Hotel was substantially completed and opened for business on March 7, 2023. In preparation for the opening of the Williamsburg Moxy Hotel, which opened on March 7, 2023, the Williamsburg Moxy Hotel Joint Venture incurred pre-opening costs of $ 0.5 2.2 , respectively During the six months ended June 30, 2024, the Company made capital contributions to the Williamsburg Moxy Joint Venture of $ 0.1 0.6 Moxy Construction Loan On August 5, 2021, the Williamsburg Moxy Hotel Joint Venture entered into a recourse construction loan facility with a financial institution for up to $77.0 million (the “Moxy Construction Loan”) to fund certain of the development, construction and certain pre-opening costs associated with the Williamsburg Moxy Hotel. The Moxy Construction Loan, which was scheduled to initially mature on February 5, 2024, was further extended to May 4, 2024 LIBOR plus 9.00%, with a floor of 9.50%, to SOFR plus 9.11%, with a floor of 9.61%. As of December 31, 2023, the outstanding principal balance of the Moxy Construction Loan was $ 83.8 6.9 0.1 In connection with the Moxy Construction Loan, the Williamsburg Moxy Hotel Joint Venture provided certain completion and carry cost guarantees. Furthermore, in connection with the Moxy Construction Loan, the Williamsburg Moxy Hotel Joint Venture paid $ 3.7 0.8 Moxy Mortgage Loans On April 19, 2024, the Williamsburg Moxy Joint Venture entered into an $ 86.0 9.0 The Moxy Mortgage Loans bear interest at SOFR plus 5.10%, subject to a 8.75% floor April 19, 2027 85.8 86.0 0.8 1.0 As of June 30, 2024, the outstanding principal balance of the Moxy Mortgage Loans was $ 95.0 3.1 In connection with the Moxy Mortgage Loans, the Williamsburg Moxy Hotel Joint Venture has provided certain interest and carry costs guarantees. Furthermore, in connection with the Moxy Mortgage Loans, $3.2 million of the initial proceeds advanced at closing were used to fund reserves for interest, real estate taxes and insurance. Additionally, in connection with the Moxy Mortgage Loans, the Williamsburg Moxy Hotel Joint Venture paid an aggregate of $ 2.8 0.5 Williamsburg Moxy Hotel Joint Venture Financial Information The following table represents the condensed statements of operations for the Williamsburg Moxy Hotel Joint Venture for the periods indicated: Schedule of condensed statement of operations For the For the For the For the Revenues $ 8,302 $ 7,106 $ 12,861 $ 8,059 Property operating expenses 5,778 5,905 10,440 7,245 Pre-opening costs - 493 - 2,228 General and administrative costs 55 47 115 79 Depreciation and amortization 921 869 1,829 1,140 Operating income/(loss) 1,548 (208 ) 477 (2,633 ) Interest expense (2,851 ) (3,162 ) (6,139 ) (3,970 ) Net loss $ (1,303 ) $ (3,370 ) $ (5,662 ) $ (6,603 ) Company’s share of net loss (25.00%) $ (326 ) $ (843 ) $ (1,416 ) $ (1,651 ) Additional deprecation and amortization expense (1) (10 ) - (10 ) - Company’s net loss from investment $ (336 ) $ (843 ) $ (1,426 ) $ (1,651 ) (1) Additional depreciation and amortization expense relates to the amortization of the difference between the cost of the interest in the Williamsburg Moxy Hotel Joint Venture and the amount of the underlying equity in net assets of the Williamsburg Moxy Hotel Joint Venture. The following table represents the condensed balance sheets for the Williamsburg Moxy Hotel Joint Venture as of the dates indicated: Schedule of condensed balance sheet As of As of June 30, December 31, Investment property, net $ 124,931 $ 126,603 Cash 5,890 3,453 Other assets 4,476 2,385 Total assets $ 135,297 $ 132,441 Mortgages payable, net $ 91,861 $ 83,666 Other liabilities 5,856 6,023 Members’ capital 37,580 42,752 Total liabilities and members’ capital $ 135,297 $ 132,441 |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Marketable Securities And Fair Value Measurements | |
Marketable Securities and Fair Value Measurements | 4. Marketable Securities and Fair Value Measurements Marketable Securities The following is a summary of the Company’s available for sale securities as of the dates indicated: Schedule of available-for-sale securities reconciliation As of June 30, 2024 Adjusted Gross Unrealized Gross Unrealized Fair Marketable Securities Equity securities Preferred Equity Securities $ 3,456 $ 47 $ - $ 3,503 Mutual Funds 1,215 - - 1,215 4,671 47 - 4,718 Debt securities Corporate Bonds 746 - (125 ) 621 Total $ 5,417 $ 47 $ (125 ) $ 5,339 As of December 31, 2023 Adjusted Gross Unrealized Gross Unrealized Fair Marketable Securities Equity securities Preferred Equity Securities $ 3,456 $ 14 $ (4 ) $ 3,466 Mutual Funds 3,150 - - 3,150 6,606 14 (4 ) 6,616 Debt securities Corporate Bonds 746 - (166 ) 580 Total $ 7,352 $ 14 $ (170 ) $ 7,196 As of June 30, 2024, the Company has not recognized an allowance for expected credit losses related to available-for-sale debt securities as the Company has not identified any unrealized losses for these investments attributable to credit factors. The Company’s unrealized loss on investments in corporate bonds was primarily caused by recent rising interest rates. The Company does not intend to sell the investment and it is not more likely than not that the Company will be required to sell the investment before recovery of its amortized cost basis. The Company may sell certain of its investments in marketable debt securities prior to their stated maturities for strategic purposes, in anticipation of credit deterioration, or for duration management. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: ● Level 1 – Quoted prices in active markets for identical assets or liabilities. ● Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s mutual funds were classified as Level 1 assets and the Company’s preferred equity securities, corporate bonds and interest rate cap contract were classified as Level 2 assets. There were no transfers between the level classifications during the six months ended June 30, 2024 and 2023. The fair values of the Company’s investments in mutual funds are measured using quoted prices in active markets for identical assets and its preferred equity securities and corporate bonds are measured using readily available quoted prices for these securities; however, the markets for these securities are not active. The fair value of the Company’s interest rate cap contract is measured using other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. The following table summarizes the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities: Schedule of available-for-sale securities As of Due in 1 year $ - Due in 1 year through 5 years - Due in 5 year through 10 years - Due after 10 years 621 Total $ 621 The Company did not have any other significant financial assets or liabilities, which would require revised valuations that are recognized at fair value. |
Mortgages payable, net
Mortgages payable, net | 6 Months Ended |
Jun. 30, 2024 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Mortgages payable, net | 5. Mortgages payable, net Mortgages payable, net consists of the following: Schedule of mortgages payable, net Description Interest Weighted Average Maturity Amount Due As of As of Revolving Credit Facility AMERIBOR + 3.15% 8.66 % July 2027 $ 30,844 $ 30,844 $ 30,844 Home2 Suites Tukwila Loan AMERIBOR + 3.50% 9.02 % December 2026 15,524 16,123 16,210 Home2 Suites Salt Lake City Loan AMERIBOR + 3.50% 9.02 % December 2026 10,094 10,483 10,540 Total mortgages payable 8.83 % $ 56,462 57,450 57,594 Less: Deferred financing costs (285 ) (433 ) Total mortgage payable, net $ 57,165 $ 57,161 AMERIBOR as of June 30, 2024 and December 31, 2023 was 5.44% 5.43% Revolving Credit Facility The Company has a non-recourse revolving credit facility (the “Revolving Credit Facility”) with a financial institution. The Revolving Credit Facility provides it with a line of credit of up to $ 60 65% The Revolving Credit Facility, which had an outstanding balance of $ 30.8 ● The maturity date was extended by three years to July 13, 2027 with two additional one-year extension options at the sole discretion of the lender; ● The maximum borrowing amount was reduced to $ 40.0 30.8 ● The interest rate was prospectively changed to SOFR plus 3.30% 6.64% ● The financial debt covenants commence with the quarter ended September 30, 2024, but the Revolving Credit Facility provides for phased increases to the prescribed minimum financial ratios throughout the initial three-year term of the Revolving Credit Facility. Six of the Company’s hotel properties are currently pledged as collateral under the Revolving Credit Facility. On December 1, 2023, the Company entered into an interest rate cap contract at a cost of $44 with an unrelated financial institution in order to reduce the effect of increases to the interest rate associated with the Revolving Credit Facility. The interest rate cap contract had a notional amount of $30.8 million, matured on July 13, 2024 and effectively capped AMERIBOR at 5.34% In connection with the amendment and restatement of the Revolving Credit Facility, the Company simultaneously entered into an interest rate cap contract at a cost of $85 with an unrelated financial institution in order to reduce the effect of increases to the interest rate associated with the Revolving Credit Facility. The interest rate cap contract has a notional amount of $ 30.8 July 31, 2025 5.34% Principal Maturities The following table sets forth the estimated contractual principal maturities of the Company’s mortgages payable, including balloon payments due at maturity, as of June 30, 2024 after taking into consideration the aforementioned amendment and restatement of the Revolving Credit Facility: Schedule of principal maturities 2024 2025 2026 2027 2028 Thereafter Total Principal maturities $ 204 $ 409 $ 25,993 $ 30,844 $ - $ - $ 57,450 Less: Deferred financing costs (285 ) Total principal maturities, net $ 57,165 Certain of the Company’s debt agreements also contain clauses providing for prepayment penalties. As of June 30, 2024, the Company was in compliance with all its financial debt covenants. |
Company_s Stockholder_s Equity
Company’s Stockholder’s Equity | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Company’s Stockholder’s Equity | 6. Company’s Stockholder’s Equity Distributions on Common Shares On November 13, 2023, the Board of Directors authorized and the Company declared a Common Share distribution of $ 0.075 0.30 3% 10.00 1.0 On March 18, 2024, the Board of Directors determined to suspend regular quarterly distributions. Future distributions declared, if any, will be at the discretion of the Board of Directors based on their analysis of the Company’s performance over the previous periods and expectations of performance for future periods. The Board of Directors will consider various factors in its determination, including but not limited to, the sources and availability of capital, revenues and other sources of income, operating and interest expenses and the Company’s ability to refinance near-term debt as well as the IRS’s annual distribution requirement that REITs distribute no less than 90% of their taxable income. The Company cannot assure that any future distributions will be made or that it will maintain any particular level of distributions that it has previously established or may establish. SRP The Company’s share repurchase program (the “SRP”) may provide eligible stockholders with limited, interim liquidity by enabling them to sell their Common Shares back to the Company, subject to restrictions and applicable law. On March 19, 2020, the Board of Directors amended the SRP to remove stockholder notice requirements and also approved the suspension of all redemptions. Effective May 10, 2021, the Board of Directors partially reopened the SRP to allow, subject to various conditions as set forth below, for redemptions submitted in connection with a stockholder’s death and hardship, respectively, and set the price for all such purchases to the Company’s current estimated net asset value per share of common stock, as determined by the Board of Directors and reported by the Company from time to time. Deaths that occurred subsequent to January 1, 2020 were eligible for consideration, subject to certain conditions. Beginning January 1, 2022, requests for redemptions in connection with a stockholder’s death must be submitted and received by the Company within one year of the stockholder’s date of death for consideration. On the above noted date, the Board of Directors established that on an annual basis, the Company would not redeem in excess of 0.5% For the six months ended June 30, 2024, the Company repurchased 34,514 9.95 86,223 10.03 Earnings per Share The Company had no potentially dilutive securities outstanding during the periods presented. Accordingly, basic and diluted earnings per share is calculated by dividing net income/(loss) by the weighted-average number of shares of common stock outstanding during the applicable period. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 7. Related Party Transactions The Company’s Sponsor, Advisor and their affiliates, including the Special Limited Partner, are related parties of the Company as well as other public REITs also sponsored and/or advised by these entities. Pursuant to the terms of various agreements, certain of these entities are entitled to compensation and reimbursement of costs incurred for services related to the investment, development, management and disposition of our assets. The compensation is generally based on the cost of acquired properties/investments and the annual revenue earned from such properties/investments, and other such fees and expense reimbursements as outlined in each of the respective agreements. The following table represents the fees incurred associated with the payments to the Company’s Advisor for the periods indicated: Schedule of fees payments to company’s advisor For the For the 2024 2023 2024 2023 Asset management fees (general and administrative costs) $ 365 $ 360 $ 730 $ 677 Finance fees (1) 178 - 178 - Total $ 543 $ 360 $ 908 $ 677 (1) Finances fees were capitalized and are included in the carrying value of the Company’s investment in the Williamsburg Moxy Hotel Joint Venture. The advisory agreement has a one-year term and is renewable for an unlimited number of successive one-year periods upon the mutual consent of the Advisor and the Company’s independent directors. Payments to the Advisor or certain affiliates of the Sponsor may include asset acquisition fees and the reimbursement of acquisition-related expenses, development fees and the reimbursement of development-related costs, financing coordination fees, asset management fees or asset management participation, and construction management fees. The Company may also reimburse the Advisor and certain affiliates of the Sponsor for actual expenses it incurs for administrative and other services provided for it. Upon the liquidation of the Company’s assets, it may pay the Advisor or certain affiliates of the Sponsor a disposition commission. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | 8. Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable and other assets, accounts payable and other accrued expenses, distributions payable and due to related parties approximate their fair values because of the short maturity of these instruments. The carrying amount of the mortgages payable approximate fair value because the interest rates are variable and reflective of market rates. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Management Agreements The Company’s hotels operate pursuant to management agreements (the “Management Agreements”) with various third-party management companies. The management companies perform management functions including, but not limited to, hiring and supervising employees, establishing room prices, establishing administrative policies and procedures, managing expenditures and arranging and supervising public relations and advertising. The Management Agreements are for initial terms ranging from 1 10 The Management Agreements provide for the payment of a base management fee equal to 3% 3.5% Franchise Agreements As of June 30, 2024, the Company’s hotels operated pursuant to various franchise agreements. Under the franchise agreements, the Company generally pays a fee equal to 3% to 5.5% of gross room sales, as defined, and a marketing fund charge from 2.0% 2.5% The franchise agreements are generally for initial terms ranging from 15 20 Legal Proceedings From time to time in the ordinary course of business, the Company may become subject to legal proceedings, claims or disputes. As of the date hereof, the Company is not a party to any material pending legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on its results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Lightstone REIT III and the Operating Partnership and its subsidiaries (over which Lightstone REIT III exercises financial and operating control). As of June 30, 2024, Lightstone REIT III had a 99% The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements of the Company and related notes as contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Form 10-K”). The unaudited interim consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair presentation of the results for the periods presented. The accompanying unaudited consolidated financial statements of Lightstone Value Plus REIT III, Inc. and its Subsidiaries have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during a reporting period. The most significant assumptions and estimates relate to the valuation of real estate and depreciable lives. Application of these assumptions requires the exercise of judgment as to future uncertainties and, as a result, actual results could differ from these estimates. The consolidated balance sheet as of December 31, 2023 included herein has been derived from the consolidated balance sheet included in the Company’s 2023 Form 10-K. The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. |
Income Taxes | Income Taxes The Company elected to be taxed and qualify as a REIT commencing with the taxable year ended December 31, 2015. As a REIT, the Company generally will not be subject to U.S. federal income tax on its net taxable income that it distributes currently to its stockholders. To maintain its REIT qualification under the Internal Revenue Code of 1986, as amended, or the Code, the Company must meet a number of organizational and operational requirements, including a requirement that it annually distribute to its stockholders at least 90% of its REIT taxable income (which does not equal net income, as calculated in accordance with GAAP), determined without regard to the deduction for dividends paid and excluding any net capital gain. If the Company fails to remain qualified for taxation as a REIT in any subsequent year and does not qualify for certain statutory relief provisions, its income for that year will be taxed at regular corporate rates, and it may be precluded from qualifying for treatment as a REIT for the four-year period following its failure to qualify as a REIT. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. Additionally, even if the Company continues to qualify as a REIT for U.S. federal income tax purposes, it may still be subject to some U.S. federal, state and local taxes on its income and property and to U.S. federal income taxes and excise taxes on its undistributed income, if any. To maintain its qualification as a REIT, the Company engages in certain activities through a taxable REIT subsidiary (“TRS”), including when it acquires a hotel it usually establishes a new TRS and enters into an operating lease agreement for the hotel. As such, the Company is subject to U.S. federal and state income taxes and franchise taxes from these activities. The Company’s income tax benefits and expense are included in other income, net on its consolidated statements of operations. During the three and six months ended June 30, 2024, the Company recorded income tax expense of $ 5 48 3 63 As of June 30, 2024 and December 31, 2023, the Company had no |
Revenues | Revenues The following table represents the total revenues from hotel operations on a disaggregated basis: Schedule of revenues from hotel operations For the For the Revenues 2024 2023 2024 2023 Room $ 8,461 $ 7,726 $ 14,516 $ 13,856 Food, beverage and other 258 240 473 476 Total revenues $ 8,719 $ 7,966 $ 14,989 $ 14,332 |
New Accounting Pronouncements | New Accounting Pronouncements In November 2023, the FASB issued an accounting standards update which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The amendments will require entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within segment profit and loss, as well as the title and position of the CODM. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is evaluating the guidance and the impact it may have on the consolidated financial statements. In December 2023, the FASB issued an accounting standards update which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This update is effective for annual periods beginning after December 15, 2024. The Company is evaluating the guidance and the impact it may have on the consolidated financial statements. The Company has reviewed and determined that other recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations. |
Concentration of Risk | Concentration of Risk As of June 30, 2024 and December 31, 2023, the Company had cash deposited in certain financial institutions in excess of U.S. federally insured levels. The Company regularly monitors the financial stability of these financial institutions and believes that it is not exposed to any significant credit risk in cash and cash equivalents. |
Current Environment | Current Environment The Company’s operating results and financial condition are substantially impacted by the overall health of local, U.S. national and global economies and may be influenced by market and other challenges. Additionally, its business and financial performance may be adversely affected by current and future economic and other conditions; including, but not limited to, availability or terms of financings, financial markets volatility and uncertainty as a result of recent banking failures, political upheaval or uncertainty, natural and man-made disasters, terrorism and acts of war, unfavorable changes in laws and regulations, outbreaks of contagious diseases, cybercrime, loss of key relationships, inflation and recession. The Company’s overall performance depends in part on worldwide economic and geopolitical conditions and their impacts on consumer behavior. Worsening economic conditions, increases in costs due to inflation, higher interest rates, labor and supply chain challenges and other changes in economic conditions could adversely affect the Company’s future results from operations and its financial condition. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of revenues from hotel operations | Schedule of revenues from hotel operations For the For the Revenues 2024 2023 2024 2023 Room $ 8,461 $ 7,726 $ 14,516 $ 13,856 Food, beverage and other 258 240 473 476 Total revenues $ 8,719 $ 7,966 $ 14,989 $ 14,332 |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliated Real Estate Entities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of investments in the unconsolidated affiliated real estate | Schedule of investments in the unconsolidated affiliated real estate As of Entity Date of Ownership % June 30, December 31, Hilton Garden Inn Joint Venture March 27, 2018 50 % $ 8,523 $ 9,405 Williamsburg Moxy Hotel Joint Venture August 5, 2021 25 % 9,710 10,835 Total investments in unconsolidated affiliated real estate entities $ 18,233 $ 20,240 |
Schedule of condensed statement of operations | Schedule of condensed statement of operations For the For the For the For the Revenues $ 3,473 $ 3,115 $ 5,775 $ 5,144 Property operating expenses 1,992 1,907 3,803 3,414 General and administrative costs 13 106 35 132 Depreciation and amortization 598 596 1,206 1,205 Operating income 870 506 731 393 Interest expense (705 ) (825 ) (1,389 ) (1,451 ) Net income/(loss) $ 165 $ (319 ) $ (658 ) $ (1,058 ) Company’s share of earnings (50.00%) $ 83 $ (159 ) $ (329 ) $ (529 ) |
Hilton Garden Inn Joint Venture [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of condensed balance sheet | Schedule of condensed balance sheet As of As of June 30, December 31, Investment property, net $ 46,893 $ 48,001 Cash 820 1,741 Other assets 2,024 1,816 Total assets $ 49,737 $ 51,558 Mortgage payable, net $ 32,280 $ 32,273 Other liabilities 1,011 1,075 Members’ capital 16,446 18,210 Total liabilities and members’ capital $ 49,737 $ 51,558 |
Williamsburg Moxy Hotel Joint Venture [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of condensed statement of operations | Schedule of condensed statement of operations For the For the For the For the Revenues $ 8,302 $ 7,106 $ 12,861 $ 8,059 Property operating expenses 5,778 5,905 10,440 7,245 Pre-opening costs - 493 - 2,228 General and administrative costs 55 47 115 79 Depreciation and amortization 921 869 1,829 1,140 Operating income/(loss) 1,548 (208 ) 477 (2,633 ) Interest expense (2,851 ) (3,162 ) (6,139 ) (3,970 ) Net loss $ (1,303 ) $ (3,370 ) $ (5,662 ) $ (6,603 ) Company’s share of net loss (25.00%) $ (326 ) $ (843 ) $ (1,416 ) $ (1,651 ) Additional deprecation and amortization expense (1) (10 ) - (10 ) - Company’s net loss from investment $ (336 ) $ (843 ) $ (1,426 ) $ (1,651 ) (1) Additional depreciation and amortization expense relates to the amortization of the difference between the cost of the interest in the Williamsburg Moxy Hotel Joint Venture and the amount of the underlying equity in net assets of the Williamsburg Moxy Hotel Joint Venture. |
Schedule of condensed balance sheet | Schedule of condensed balance sheet As of As of June 30, December 31, Investment property, net $ 124,931 $ 126,603 Cash 5,890 3,453 Other assets 4,476 2,385 Total assets $ 135,297 $ 132,441 Mortgages payable, net $ 91,861 $ 83,666 Other liabilities 5,856 6,023 Members’ capital 37,580 42,752 Total liabilities and members’ capital $ 135,297 $ 132,441 |
Marketable Securities and Fai_2
Marketable Securities and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Marketable Securities And Fair Value Measurements | |
Schedule of available-for-sale securities reconciliation | Schedule of available-for-sale securities reconciliation As of June 30, 2024 Adjusted Gross Unrealized Gross Unrealized Fair Marketable Securities Equity securities Preferred Equity Securities $ 3,456 $ 47 $ - $ 3,503 Mutual Funds 1,215 - - 1,215 4,671 47 - 4,718 Debt securities Corporate Bonds 746 - (125 ) 621 Total $ 5,417 $ 47 $ (125 ) $ 5,339 As of December 31, 2023 Adjusted Gross Unrealized Gross Unrealized Fair Marketable Securities Equity securities Preferred Equity Securities $ 3,456 $ 14 $ (4 ) $ 3,466 Mutual Funds 3,150 - - 3,150 6,606 14 (4 ) 6,616 Debt securities Corporate Bonds 746 - (166 ) 580 Total $ 7,352 $ 14 $ (170 ) $ 7,196 |
Schedule of available-for-sale securities | Schedule of available-for-sale securities As of Due in 1 year $ - Due in 1 year through 5 years - Due in 5 year through 10 years - Due after 10 years 621 Total $ 621 |
Mortgages payable, net (Tables)
Mortgages payable, net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Schedule of mortgages payable, net | Schedule of mortgages payable, net Description Interest Weighted Average Maturity Amount Due As of As of Revolving Credit Facility AMERIBOR + 3.15% 8.66 % July 2027 $ 30,844 $ 30,844 $ 30,844 Home2 Suites Tukwila Loan AMERIBOR + 3.50% 9.02 % December 2026 15,524 16,123 16,210 Home2 Suites Salt Lake City Loan AMERIBOR + 3.50% 9.02 % December 2026 10,094 10,483 10,540 Total mortgages payable 8.83 % $ 56,462 57,450 57,594 Less: Deferred financing costs (285 ) (433 ) Total mortgage payable, net $ 57,165 $ 57,161 |
Schedule of principal maturities | Schedule of principal maturities 2024 2025 2026 2027 2028 Thereafter Total Principal maturities $ 204 $ 409 $ 25,993 $ 30,844 $ - $ - $ 57,450 Less: Deferred financing costs (285 ) Total principal maturities, net $ 57,165 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Schedule of fees payments to company’s advisor | Schedule of fees payments to company’s advisor For the For the 2024 2023 2024 2023 Asset management fees (general and administrative costs) $ 365 $ 360 $ 730 $ 677 Finance fees (1) 178 - 178 - Total $ 543 $ 360 $ 908 $ 677 (1) Finances fees were capitalized and are included in the carrying value of the Company’s investment in the Williamsburg Moxy Hotel Joint Venture. |
Business and Structure (Details
Business and Structure (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | ||
Jul. 16, 2014 | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 11, 2014 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Common Stock, Shares, Issued | 12,900,000 | 12,900,000 | ||
Lichtenstein [Member] | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Common Stock, Shares, Issued | 222,222 | |||
Lightstone Value Plus REIT III LLC [Member]. | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Issuance of common shares, shares | 20,000 | |||
Issuance of common shares, value | $ 200 | |||
Shares issued, price per share | $ 10 | |||
Company Owned By David Lichtenstein [Member] | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Shares reserved for issuance, price per share | $ 9 | |||
General Partner [Member] | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Contribution from advisor | $ 2 | |||
Number of limited partner units issued to advisor | 200 | |||
Limited Partner [Member] | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Partners' Capital Account, Units, Contributed | 242 | |||
Partners' Capital Account, Contributions | $ 50,000 | |||
Consideration amount | $ 12,100 | |||
Lightstone REIT III [Member] | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
General partner ownership interest | 99% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Product Information [Line Items] | ||||
Total revenues | $ 8,719 | $ 7,966 | $ 14,989 | $ 14,332 |
Room [Member] | ||||
Product Information [Line Items] | ||||
Total revenues | 8,461 | 7,726 | 14,516 | 13,856 |
Food and Beverage [Member] | ||||
Product Information [Line Items] | ||||
Total revenues | $ 258 | $ 240 | $ 473 | $ 476 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Income tax expense | $ 5 | $ 48 | $ 3 | $ 63 | |
Uncertain income tax positions | $ 0 | $ 0 | $ 0 | ||
Lightstone REIT III [Member] | |||||
General partner ownership interest | 99% |
Investments in Unconsolidated_3
Investments in Unconsolidated Affiliated Real Estate Entities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||
Total investments in unconsolidated affiliated real estate entities | $ 18,233 | $ 20,240 |
Hilton Garden Inn [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Date of Ownership | Mar. 27, 2018 | |
Ownership Percentage | 50% | |
Total investments in unconsolidated affiliated real estate entities | $ 8,523 | 9,405 |
Williamsburg Moxy [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Date of Ownership | Aug. 05, 2021 | |
Ownership Percentage | 25% | |
Total investments in unconsolidated affiliated real estate entities | $ 9,710 | $ 10,835 |
Investments in Unconsolidated_4
Investments in Unconsolidated Affiliated Real Estate Entities (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Revenues | $ 8,719 | $ 7,966 | $ 14,989 | $ 14,332 |
Property operating expenses | 7,309 | 7,156 | 13,859 | 13,888 |
Hilton Garden Inn [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Revenues | 3,473 | 3,115 | 5,775 | 5,144 |
Property operating expenses | 1,992 | 1,907 | 3,803 | 3,414 |
General and administrative costs | 13 | 106 | 35 | 132 |
Depreciation and amortization | 598 | 596 | 1,206 | 1,205 |
Operating loss | 870 | 506 | 731 | 393 |
Interest expense | (705) | (825) | (1,389) | (1,451) |
Net (loss)/income | 165 | (319) | (658) | (1,058) |
Net Income (Loss) Available to Common Stockholders, Basic | $ 83 | $ (159) | $ (329) | $ (529) |
Investments in Unconsolidated_5
Investments in Unconsolidated Affiliated Real Estate Entities (Details 2) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Restructuring Cost and Reserve [Line Items] | |||
Cash | $ 4,531 | $ 9,310 | |
Hilton Garden Inn [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Investment property, net | 46,893 | $ 48,001 | |
Cash | 820 | 1,741 | |
Other assets | 2,024 | 1,816 | |
Total assets | 49,737 | 51,558 | |
Mortgage payable, net | 32,280 | 32,273 | |
Other liabilities | 1,011 | 1,075 | |
Members' Capital | 16,446 | 18,210 | |
[custom:TotalLiabilitiesAndMemberCapital-0] | $ 49,737 | $ 51,558 |
Investments in Unconsolidated_6
Investments in Unconsolidated Affiliated Real Estate Entities (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Revenues | $ 8,719 | $ 7,966 | $ 14,989 | $ 14,332 | |
Property operating expenses | 7,309 | 7,156 | 13,859 | 13,888 | |
Depreciation and amortization | 828 | 1,114 | 1,662 | 2,294 | |
Interest expense | 1,336 | 1,333 | 2,673 | 2,571 | |
Williamsburg Moxy [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Revenues | 8,302 | 7,106 | 12,861 | 8,059 | |
Property operating expenses | 5,778 | 5,905 | 10,440 | 7,245 | |
Pre-opening costs | 493 | 2,228 | |||
General and administrative costs | 55 | 47 | 115 | 79 | |
Depreciation and amortization | 921 | 869 | 1,829 | 1,140 | |
Operating income/(loss) | 1,548 | (208) | 477 | (2,633) | |
Interest expense | (2,851) | (3,162) | (6,139) | (3,970) | |
Net loss | (1,303) | (3,370) | (5,662) | (6,603) | |
Company's share of net loss (25.00%) | (326) | (843) | (1,416) | (1,651) | |
Additional deprecation and amortization expense | [1] | (10) | (10) | ||
Company's net loss from investment | $ (336) | $ (843) | $ (1,426) | $ (1,651) | |
[1]Additional depreciation and amortization expense relates to the amortization of the difference between the cost of the interest in the Williamsburg Moxy Hotel Joint Venture and the amount of the underlying equity in net assets of the Williamsburg Moxy Hotel Joint Venture. |
Investments in Unconsolidated_7
Investments in Unconsolidated Affiliated Real Estate Entities (Details 4) - Williamsburg Moxy [Member] - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Restructuring Cost and Reserve [Line Items] | ||
Investment property, net | $ 124,931 | $ 126,603 |
Cash | 5,890 | 3,453 |
Other assets | 4,476 | 2,385 |
Total assets | 135,297 | 132,441 |
Mortgages payable, net | 91,861 | 83,666 |
Other liabilities | 5,856 | 6,023 |
Members capitals | 37,580 | 42,752 |
Total liabilities and members' capital | $ 135,297 | $ 132,441 |
Investments in Unconsolidated_8
Investments in Unconsolidated Affiliated Real Estate Entities (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Aug. 05, 2024 | Aug. 05, 2021 | Apr. 19, 2024 | Mar. 27, 2018 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Jun. 01, 2026 | Mar. 27, 2023 | |
Williamsburg Moxy Hotel [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Capital contributions | $ 100 | $ 600 | ||||||||
Aggregate consideration amount | $ 7,900 | |||||||||
Pre-opening costs | $ 500 | 2,200 | ||||||||
Moxy Construction Loan [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Outstanding principal amount | $ 83,800 | |||||||||
Debt instrument, maturity date | May 04, 2024 | |||||||||
Debt instrument, description of variable rate basis | LIBOR plus 9.00%, with a floor of 9.50%, to SOFR plus 9.11%, with a floor of 9.61%. | |||||||||
Interest amount | 6,900 | |||||||||
Deferred financing fees | 100 | |||||||||
Loan fees | 3,700 | |||||||||
Accrued exit fees | $ 800 | |||||||||
Moxy Senior Loan [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Outstanding principal amount | $ 86,000 | |||||||||
Moxy Junior Loan [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Outstanding principal amount | $ 9,000 | 95,000 | ||||||||
Deferred financing fees | 3,100 | |||||||||
Moxy Mortgage Loans [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Debt instrument, maturity date | Apr. 19, 2027 | |||||||||
Debt instrument, description of variable rate basis | SOFR plus 5.10%, subject to a 8.75% floor | |||||||||
Loan fees | 2,800 | |||||||||
Accrued exit fees | $ 800 | |||||||||
Proceeds from advance from related party | 85,800 | |||||||||
Restricted escrows | $ 1,000 | |||||||||
Loan exit fees | $ 500 | |||||||||
Hilton Garden Inn [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Aggregate purchase price | $ 60,000 | |||||||||
Offering funds used in acquisition | 12,900 | |||||||||
Proceeds from Issuance of Debt | 35,000 | |||||||||
Outstanding principal amount | $ 1,300 | $ 3,000 | ||||||||
Cash collateral | $ 37 | |||||||||
Membership intersts | 50% | |||||||||
Distributions amount | $ 600 | |||||||||
Capital contributions | $ 100 | $ 400 | ||||||||
Hilton Garden Inn [Member] | Reportable Legal Entities [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Offering funds used in acquisition | $ 25,000 | |||||||||
Business Acquisition Percent age Of Voting Interest Acquired | 50% |
Marketable Securities and Fai_3
Marketable Securities and Fair Value Measurements (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Equity securities, Adjusted Cost | $ 4,671 | $ 6,606 |
Equity securities, Gross Unrealized Gains | 47 | 14 |
Equity securities, gross unrealized losses | (4) | |
Equity securities, Fair Value | 4,718 | 6,616 |
Debt securities, Adjusted Cost | 5,417 | 7,352 |
Debt securities, Gross Unrealized Gains | 47 | 14 |
Debt securities, Gross Unrealized Losses | (125) | (170) |
Debt securities, Fair Value | 5,339 | |
Preferred Equity Securities [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Equity securities, Adjusted Cost | 3,456 | 3,456 |
Equity securities, Gross Unrealized Gains | 47 | 14 |
Equity securities, gross unrealized losses | (4) | |
Equity securities, Fair Value | 3,503 | 3,466 |
Mutual Fund [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Equity securities, Adjusted Cost | 1,215 | 3,150 |
Equity securities, Gross Unrealized Gains | ||
Equity securities, gross unrealized losses | ||
Equity securities, Fair Value | 1,215 | 3,150 |
Corporate Bonds [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Debt securities, Adjusted Cost | 746 | 746 |
Debt securities, Gross Unrealized Gains | ||
Debt securities, Gross Unrealized Losses | (125) | (166) |
Debt securities, Fair Value | $ 621 | $ 580 |
Marketable Securities and Fai_4
Marketable Securities and Fair Value Measurements (Details 1) $ in Thousands | Jun. 30, 2024 USD ($) |
Marketable Securities And Fair Value Measurements | |
Due in 1 year | |
Due in 1 year through 5 years | |
Due in 5 year through 10 years | |
Due after 10 years | 621 |
Total | $ 621 |
Mortgages payable, net (Details
Mortgages payable, net (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Line of Credit Facility [Line Items] | ||
Weighted Average Interest Rate | 8.83% | |
Amount Due at Maturity | $ 56,462 | |
Total mortgages payable | 57,450 | $ 57,594 |
Less: Deferred financing costs | (285) | (433) |
Total mortgages payable, net | $ 57,165 | 57,161 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest Rate | AMERIBOR + 3.15% (floor of 4.00%) | |
Weighted Average Interest Rate | 8.66% | |
Maturity Date | July 2027 | |
Amount Due at Maturity | $ 30,844 | |
Total mortgages payable | $ 30,844 | 30,844 |
Home 2 Suites Tukwila Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest Rate | AMERIBOR + 3.50% (floor of 3.75%) | |
Weighted Average Interest Rate | 9.02% | |
Maturity Date | December 2026 | |
Amount Due at Maturity | $ 15,524 | |
Total mortgages payable | $ 16,123 | 16,210 |
Home 2 Suites Salt Lake City Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest Rate | AMERIBOR + 3.50% (floor of 3.75%) | |
Weighted Average Interest Rate | 9.02% | |
Maturity Date | December 2026 | |
Amount Due at Maturity | $ 10,094 | |
Total mortgages payable | $ 10,483 | $ 10,540 |
Mortgages payable, net (Detai_2
Mortgages payable, net (Details 1) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | ||
2024 | $ 204 | |
2025 | 409 | |
2026 | 25,993 | |
2027 | 30,844 | |
2028 | ||
Thereafter | ||
Principal maturities | 57,450 | $ 57,594 |
Less: Deferred financing costs | (285) | (433) |
Total principal maturities, net | $ 57,165 | $ 57,161 |
Mortgages payable, net (Detai_3
Mortgages payable, net (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 60,000 | |
Line Of Credit Facility Current Borrowing Capacity Percentage | 65% | |
Principal amount | $ 30,800 | $ 30,800 |
Maximum borrowing amount | $ 40,000 | |
Spread on variable rate | 3.30% | |
Floor rate | 6.64% | |
AMERIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.44% | 5.43% |
AMERIBOR [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Spread on variable rate | 5.34% | |
SOFR [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 30,800 | |
Spread on variable rate | 5.34% | |
Maturity date | Jul. 31, 2025 |
Company_s Stockholder_s Equity
Company’s Stockholder’s Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |||
Jan. 15, 2024 | Nov. 13, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Equity [Abstract] | ||||
Common share distribution per share | $ 0.075 | |||
Annual distributions paid per share | $ 0.30 | |||
Annualized Distribution Rate | 3% | |||
Share Price | $ 10 | |||
Distribution paid in cash | $ 1,000 | |||
Share redemption program, annual limitation, percentage of weighted average shares outstanding | 0.50% | |||
Repurchase of shares | 34,514 | 86,223 | ||
Weighted average price per share | $ 9.95 | $ 10.03 |
Related Party Transactions (Det
Related Party Transactions (Details) - Advisor [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Related Party Transaction [Line Items] | |||||
Asset management fees (general and administrative costs) | $ 365 | $ 360 | $ 730 | $ 677 | |
Finance fees | [1] | 178 | 178 | ||
Total | $ 543 | $ 360 | $ 908 | $ 677 | |
[1]Finances fees were capitalized and are included in the carrying value of the Company’s investment in the Williamsburg Moxy Hotel Joint Venture. |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | 6 Months Ended |
Jun. 30, 2024 | |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Management Agreement Term | 1 year |
Percentage Of Management Fees On Gross Revenue | 3% |
Franchise Agreement Term | 15 years |
Minimum [Member] | Marketing Fund Charge [Member] | |
Loss Contingencies [Line Items] | |
Property Management Fee, Percent Fee | 2% |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Management Agreement Term | 10 years |
Percentage Of Management Fees On Gross Revenue | 3.50% |
Franchise Agreement Term | 20 years |
Maximum [Member] | Marketing Fund Charge [Member] | |
Loss Contingencies [Line Items] | |
Property Management Fee, Percent Fee | 2.50% |