Document And Entity Information
Document And Entity Information - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Aug. 09, 2018 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Carter Validus Mission Critical REIT II, Inc. | |
Entity Central Index Key | 1,567,925 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Class A shares [Member] | ||
Entity Common Stock, Shares Outstanding | 82,306 | |
Class I shares [Member] | ||
Entity Common Stock, Shares Outstanding | 10,451 | |
Class T shares [Member] | ||
Entity Common Stock, Shares Outstanding | 37,820 | |
Class T2 shares [Member] | ||
Entity Common Stock, Shares Outstanding | 1,926 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Real estate: | ||
Land | $ 242,624 | $ 223,277 |
Buildings and improvements, less accumulated depreciation of $64,378 and $45,789, respectively | 1,328,334 | 1,250,794 |
Construction in progress | 36,538 | 31,334 |
Total real estate, net | 1,607,496 | 1,505,405 |
Cash and cash equivalents | 73,241 | 74,803 |
Acquired intangible assets, less accumulated amortization of $31,803 and $22,162, respectively | 153,732 | 150,554 |
Other assets, net | 67,295 | 47,182 |
Total assets | 1,901,764 | 1,777,944 |
Liabilities: | ||
Notes payable, net of deferred financing costs of $3,925 and $4,393, respectively | 464,038 | 463,742 |
Credit facility, net of deferred financing costs of $2,776 and $601, respectively | 307,224 | 219,399 |
Accounts payable due to affiliates | 14,445 | 15,249 |
Accounts payable and other liabilities | 26,226 | 27,709 |
Intangible lease liabilities, less accumulated amortization of $5,202 and $2,760, respectively | 58,852 | 61,294 |
Total liabilities | 870,785 | 787,393 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value per share, 100,000,000 shares authorized; none issued and outstanding | ||
Common stock, $0.01 par value per share, 500,000,000 shares authorized; 135,825,553 and 126,559,834 shares issued, respectively; 131,076,694 and 124,327,777 shares outstanding, respectively | 1,311 | 1,243 |
Additional paid-in capital | 1,143,830 | 1,084,905 |
Accumulated distributions in excess of earnings | (124,267) | (99,309) |
Accumulated other comprehensive income | 10,103 | 3,710 |
Total stockholders’ equity | 1,030,977 | 990,549 |
Noncontrolling interests | 2 | 2 |
Total equity | 1,030,979 | 990,551 |
Total liabilities and stockholders’ equity | $ 1,901,764 | $ 1,777,944 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Buildings and improvements, accumulated depreciation | $ 64,378 | $ 45,789 |
Acquired intangible assets, accumulated amortization | 31,803 | 22,162 |
Notes payable, deferred financing costs | 3,925 | 4,393 |
Credit facility, deferred financing costs | 2,776 | 601 |
Intangible lease liabilities, accumulated amortization | $ 5,202 | $ 2,760 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 135,825,553 | 126,559,834 |
Common stock, shares outstanding (in shares) | 131,076,694 | 124,327,777 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue: | ||||
Rental and parking revenue | $ 37,810 | $ 23,684 | $ 73,505 | $ 43,366 |
Tenant reimbursement revenue | 6,140 | 3,918 | 11,740 | 8,258 |
Total revenue | 43,950 | 27,602 | 85,245 | 51,624 |
Expenses: | ||||
Rental and parking expenses | 9,702 | 5,300 | 17,992 | 10,226 |
General and administrative expenses | 1,339 | 1,212 | 2,282 | 2,137 |
Asset management fees | 3,233 | 2,351 | 6,332 | 4,357 |
Depreciation and amortization | 14,282 | 9,025 | 27,999 | 16,635 |
Total expenses | 28,556 | 17,888 | 54,605 | 33,355 |
Income from operations | 15,394 | 9,714 | 30,640 | 18,269 |
Interest expense, net | 8,208 | 5,073 | 15,950 | 8,837 |
Net income attributable to common stockholders | 7,186 | 4,641 | 14,690 | 9,432 |
Other comprehensive income (loss): | ||||
Unrealized income (loss) on interest rate swaps, net | 1,818 | (706) | 6,393 | 62 |
Other comprehensive income (loss) attributable to common stockholders | 1,818 | (706) | 6,393 | 62 |
Comprehensive income attributable to common stockholders | $ 9,004 | $ 3,935 | $ 21,083 | $ 9,494 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 129,926,130 | 94,910,818 | 128,165,022 | 90,721,343 |
Diluted (in shares) | 129,948,432 | 94,925,665 | 128,187,423 | 90,737,075 |
Net income per common share attributable to common stockholders: | ||||
Basic (in dollars per share) | $ 0.06 | $ 0.05 | $ 0.11 | $ 0.10 |
Diluted (in dollars per share) | 0.06 | 0.05 | 0.11 | 0.10 |
Distributions declared per common share | $ 0.16 | $ 0.16 | $ 0.31 | $ 0.31 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Stockholders' Equity - 6 months ended Jun. 30, 2018 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Distributions in Excess of Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Total Stockholders’ Equity [Member] | Noncontrolling Interests [Member] |
Balance, (in shares) at Dec. 31, 2017 | 124,327,777 | 124,327,777 | |||||
Balance, at Dec. 31, 2017 | $ 990,551 | $ 1,243 | $ 1,084,905 | $ (99,309) | $ 3,710 | $ 990,549 | $ 2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (in shares) | 7,049,627 | ||||||
Issuance of common stock | 67,944 | $ 71 | 67,873 | 67,944 | 0 | ||
Issuance of common stock under the distribution reinvestment plan (in shares) | 2,200,342 | ||||||
Issuance of common stock under the distribution reinvestment plan | 20,199 | $ 22 | 20,177 | 20,199 | 0 | ||
Vesting of restricted common stock (in shares) | 2,250 | ||||||
Vesting of restricted common stock | 44 | 44 | 44 | 0 | |||
Commissions on sale of common stock and related dealer manager fees | (3,229) | (3,229) | (3,229) | 0 | |||
Distribution and servicing fees | (694) | (694) | (694) | 0 | |||
Other offering costs | (2,291) | (2,291) | (2,291) | 0 | |||
Repurchase of common stock (in shares) | (2,503,302) | ||||||
Repurchase of common stock | (22,980) | $ (25) | (22,955) | (22,980) | 0 | ||
Distributions declared to common stockholders | (39,648) | (39,648) | (39,648) | 0 | |||
Other comprehensive income | 6,393 | 6,393 | 6,393 | 0 | |||
Net income | $ 14,690 | 14,690 | 14,690 | 0 | |||
Balance, (in shares) at Jun. 30, 2018 | 131,076,694 | 131,076,694 | |||||
Balance, at Jun. 30, 2018 | $ 1,030,979 | $ 1,311 | $ 1,143,830 | $ (124,267) | $ 10,103 | $ 1,030,977 | $ 2 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 14,690 | $ 9,432 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 27,999 | 16,635 |
Amortization of deferred financing costs | 1,605 | 1,185 |
Amortization of above-market leases | 270 | 39 |
Amortization of intangible lease liabilities | (2,442) | (386) |
Straight-line rent | (6,683) | (4,842) |
Stock-based compensation | 44 | 34 |
Ineffectiveness of interest rate swaps | 77 | (2) |
Changes in operating assets and liabilities: | ||
Accounts payable and other liabilities | 3,955 | 4,853 |
Accounts payable due to affiliates | 118 | 632 |
Other assets | (969) | (1,391) |
Net cash provided by operating activities | 38,664 | 26,189 |
Cash flows from investing activities: | ||
Investment in real estate | (126,908) | (405,569) |
Acquisition costs capitalized subsequent to acquisition | 0 | (44) |
Capital expenditures | (12,053) | (13,692) |
Real estate deposits, net | 0 | 290 |
Net cash used in investing activities | (138,961) | (419,015) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 67,944 | 155,800 |
Proceeds from notes payable | 0 | 248,299 |
Payments on notes payable | (172) | 0 |
Proceeds from credit facility | 90,000 | 175,000 |
Payments on credit facility | 0 | (120,000) |
Payments of deferred financing costs | (4,797) | (2,551) |
Repurchases of common stock | (22,980) | (4,830) |
Offering costs on issuance of common stock | (7,241) | (14,621) |
Distributions to stockholders | (19,309) | (12,812) |
Net cash provided by financing activities | 103,445 | 424,285 |
Net change in cash, cash equivalents and restricted cash | 3,148 | 31,459 |
Cash, cash equivalents and restricted cash - Beginning of period | 85,747 | 56,909 |
Cash, cash equivalents and restricted cash - End of period | 88,895 | 88,368 |
Supplemental cash flow disclosure: | ||
Interest paid, net of interest capitalized of $989 and $835, respectively | 7,802 | 7,882 |
Supplemental disclosure of non-cash transactions: | ||
Common stock issued through distribution reinvestment plan | 20,199 | 14,649 |
Distribution and servicing fees accrued during the period | 0 | 3,725 |
Liabilities assumed at acquisition | 0 | 815 |
Accrued capital expenditures | $ 0 | $ 3,172 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Cash Flows [Abstract] | ||
Interest capitalized | $ 989 | $ 835 |
Organization and Business Opera
Organization and Business Operations | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Operations | Organization and Business Operations Carter Validus Mission Critical REIT II, Inc., or the Company, is a Maryland corporation that was formed on January 11, 2013. The Company elected to be taxed as a real estate investment trust, or a REIT, under the Internal Revenue Code of 1986, as amended, for federal income tax purposes. Substantially all of the Company’s business is conducted through Carter Validus Operating Partnership II, LP, a Delaware limited partnership, or the Operating Partnership, formed on January 10, 2013. The Company is the sole general partner of the Operating Partnership and Carter Validus Advisors II, LLC, or the Advisor, is the special limited partner of the Operating Partnership. The Company commenced the initial public offering of $2,350,000,000 in shares of common stock, or the Initial Offering, consisting of up to $2,250,000,000 in shares in its primary offering and up to $100,000,000 in shares of common stock to be made available pursuant to the Company’s distribution reinvestment plan, or the DRIP. The Company ceased offering shares of common stock pursuant to the Initial Offering on November 24, 2017. At the completion of the Initial Offering, the Company had accepted investors' subscriptions for and issued approximately 125,095,000 shares of Class A, Class I and Class T common stock, including shares of common stock issued pursuant to the DRIP, resulting in gross proceeds of $1,223,803,000 . On October 13, 2017, the Company filed a Registration Statement on Form S-3 to register 10,893,246 shares of common stock under the DRIP for a proposed maximum offering price of $100,000,000 in shares of common stock, or the DRIP Offering. The Company will continue to issue shares of common stock under the DRIP Offering until such time as the Company sells all of the shares registered for sale under the DRIP Offering, unless the Company files a new registration statement with the U.S. Securities and Exchange Commission, or the SEC, or the DRIP Offering is terminated by the Company's board of directors. On November 27, 2017, the Company commenced its follow-on offering of up to $1,000,000,000 in shares of common stock, or the Offering, and collectively with the Initial Offering and the DRIP Offering, the Offerings. As of March 14, 2018, the Company ceased offering shares of Class T common stock in the Offering and began offering shares of Class T2 common stock in the Offering on March 15, 2018. The Company continues to offer shares of Class T common stock in the DRIP Offering. The Company is currently offering, in any combination with a dollar value up to the maximum offering amount, Class A shares of common stock at a price of $10.200 per share, Class I shares of common stock at a price of $9.273 per share, and Class T2 shares of common stock at a price of $9.714 per share in the Offerings. The offering prices are based on the most recent estimated per share net asset value of each of the Class A common stock, Class I common stock and Class T common stock, and any applicable per share upfront selling commissions and dealer manager fees. As of June 30, 2018 , the Company had issued approximately 135,810,000 shares of Class A, Class I, Class T and Class T2 common stock in the Offerings, resulting in receipt of gross proceeds of approximately $1,325,781,000 , before share repurchases of $43,564,000 , selling commissions and dealer manager fees of approximately $95,127,000 and other offering costs of approximately $25,648,000 . Substantially all of the Company’s business is managed by the Advisor. Carter Validus Real Estate Management Services II, LLC, or the Property Manager, an affiliate of the Advisor, serves as the Company’s property manager. The Advisor and the Property Manager have received, and will continue to receive, fees for services related to the Company's acquisition and operational stages. The Advisor will also be eligible to receive fees during the Company's liquidation stage. SC Distributors, LLC, an affiliate of the Advisor, or the Dealer Manager, serves as the dealer manager of the Offering. The Dealer Manager has received fees for services related to the Initial Offering, and has received, and will continue to receive, fees for services related to the Offering. The Company was formed to invest primarily in quality income-producing commercial real estate, with a focus on data centers and healthcare properties, preferably with long-term net leases to creditworthy tenants, as well as to make other real estate-related investments that relate to such property types, which may include equity or debt interests, including securities, in other real estate entities. The Company also may originate or invest in real estate-related notes receivable. As of June 30, 2018 , the Company owned 57 real estate investments, consisting of 75 properties. Except as the context otherwise requires, “we,” “our,” “us,” and the “Company” refer to Carter Validus Mission Critical REIT II, Inc., the Operating Partnership and all wholly-owned subsidiaries. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The summary of significant accounting policies presented below is designed to assist in understanding the Company’s condensed consolidated financial statements. Such condensed consolidated financial statements and the accompanying notes thereto are the representation of management. These accounting policies conform to accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of a normal and recurring nature considered for a fair presentation, have been included. Operating results for the three and six months ended June 30, 2018 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . The condensed consolidated balance sheet at December 31, 2017, has been derived from the audited consolidated financial statements at that date but does not include all the information and notes required by GAAP for complete financial statements. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company's audited consolidated financial statements as of and for the year ended December 31, 2017, and related notes thereto set forth in the Company's Annual Report on Form 10-K, filed with the SEC on March 21, 2018. Principles of Consolidation and Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company, the Operating Partnership, and all wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the condensed consolidated financial statements and accompanying notes in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates are made and evaluated on an ongoing basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. Restricted Cash Restricted cash consists of restricted cash held in escrow and restricted bank deposits. Restricted cash held in escrow includes cash held in escrow accounts for capital improvements for certain properties as well as cash held by lenders in escrow accounts for tenant and capital improvements, repairs and maintenance and other lender reserves for certain properties, in accordance with the respective lender’s loan agreement. Restricted cash held in escrow is reported in other assets, net in the accompanying condensed consolidated balance sheets . Restricted bank deposits consist of tenant receipts for certain properties which are required to be deposited into lender-controlled accounts in accordance with the respective lender's loan agreement. Restricted bank deposits are reported in other assets, net in the accompanying condensed consolidated balance sheets . See Note 6—"Other Assets, Net" . The following table presents a reconciliation of the beginning of period and end of period cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the totals shown in the condensed consolidated statements of cash flows (amounts in thousands): Six Months Ended Beginning of period: 2018 2017 Cash and cash equivalents 74,803 50,446 Restricted cash 10,944 6,463 Cash, cash equivalents and restricted cash $ 85,747 $ 56,909 End of period: Cash and cash equivalents 73,241 74,350 Restricted cash 15,654 14,018 Cash, cash equivalents and restricted cash $ 88,895 $ 88,368 Concentration of Credit Risk and Significant Leases As of June 30, 2018 , the Company had cash on deposit, including restricted cash, in certain financial institutions that had deposits in excess of current federally insured levels. The Company limits its cash investments to financial institutions with high credit standing; therefore, the Company believes it is not exposed to any significant credit risk on its cash deposits. To date, the Company has experienced no loss or lack of access to cash in its accounts. As of June 30, 2018 , the Company owned real estate investments in 38 MSAs, two of which accounted for 10.0% or more of revenue. Real estate investments located in the Atlanta-Sandy Springs-Roswell, Georgia MSA and the Houston-The Woodlands-Sugar Land, Texas MSA accounted for 17.7% and 10.0% , respectively, of rental revenue for the six months ended June 30, 2018 . As of June 30, 2018 , the Company had no exposure to tenant concentration that accounted for 10.0% or more of revenue for the six months ended June 30, 2018 . Share Repurchase Program The Company’s share repurchase program allows for repurchases of shares of the Company’s common stock when certain criteria are met. The share repurchase program provides that all repurchases during any calendar year, including those redeemable upon death or a Qualifying Disability of a stockholder, are limited to those that can be funded with equivalent proceeds raised from the DRIP Offering during the prior calendar year and other operating funds, if any, as the board of directors, in its sole discretion, may reserve for this purpose. Repurchases of shares of the Company’s common stock are at the sole discretion of the Company’s board of directors, provided, however, that the Company will limit the number of shares repurchased during any calendar year to 5.0% of the number of shares of common stock outstanding as of December 31st of the previous calendar year. In addition, the Company’s board of directors, in its sole discretion, may suspend (in whole or in part) the share repurchase program at any time, and may amend, reduce, terminate or otherwise change the share repurchase program upon 30 days' prior notice to the Company’s stockholders for any reason it deems appropriate. During the six months ended June 30, 2018 , the Company received valid repurchase requests related to 2,503,302 Class A shares, Class I shares and Class T shares of common stock ( 2,212,017 Class A shares, 21,085 Class I shares and 270,200 Class T shares), all of which were redeemed in full for an aggregate purchase price of approximately $22,980,000 (an average of $9.18 per share). During the six months ended June 30, 2017 , the Company received valid repurchase requests related to 532,599 Class A and Class T shares of common stock ( 519,091 Class A shares and 13,508 Class T shares) , all of which were redeemed in full for an aggregate purchase price of approximately $4,830,000 (an average of $9.07 per share). Earnings Per Share The Company calculates basic earnings per share by dividing net income attributable to common stockholders for the period by the weighted average shares of its common stock outstanding for that period. Diluted earnings per share are computed based on the weighted average number of shares outstanding and all potentially dilutive securities. Shares of non-vested restricted common stock give rise to potentially dilutive shares of common stock. For the three months ended June 30, 2018 and 2017 , diluted earnings per share reflected the effect of approximately 22,000 and 15,000 shares, respectively, of non-vested shares of restricted common stock that were outstanding as of such period. For the six months ended June 30, 2018 and 2017 , diluted earnings per share reflected the effect of approximately 22,000 and 16,000 and shares, respectively, of non-vested shares of restricted common stock that were outstanding as of such period. Recently Issued Accounting Pronouncements On May 28, 2014, the FASB issued Accounting Standards Update, or ASU, 2014-09, Revenue from Contracts with Customers , or ASU 2014-09. The pronouncement was issued to clarify the principles for recognizing revenue and to develop a common revenue standard and disclosure requirements. The pronouncement is effective for reporting periods beginning after December 15, 2017. Upon adoption of ASU 2016-02 in 2019, as discussed below, the Company may be required to classify its tenant recoveries into lease and nonlease components, whereby the nonlease components would be subject to ASU 2014-09, pending the resolution of the proposed amendment issued by the FASB in January 2018. The Company adopted the provisions of ASU 2014-09 effective January 1, 2018, using the modified retrospective approach. Property rental revenue is accounted for in accordance with Accounting Standards Codification (ASC) 840, Leases . The Company's rental revenue consists of (i) contractual revenues from leases recognized on a straight-line basis over the term of the respective lease; (ii) parking revenue; and (iii) the reimbursements of the tenants' share of real estate taxes, insurance and other operating expenses. The Company evaluated the revenue recognition for its contracts within this scope under existing accounting standards and under ASU 2014-09 and concluded that there were no changes to the condensed consolidated financial statements as a result of adoption. On February 23, 2017, the FASB issued ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, or ASU 2017-05. ASU 2017-05 clarifies the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets. Partial sales of non-financial assets include transactions in which the seller retains an equity interest in the entity that owns the assets or has an equity interest in the buyer. ASU 2017-05 provides guidance on how entities should recognize sales, including partial sales, of non-financial assets (and in-substance non-financial assets) to non-customers. ASU 2017-05 requires the seller to recognize a full gain or loss in a partial sale of non-financial assets, to the extent control is not retained. Any noncontrolling interest retained by the seller would, accordingly, be measured at fair value. ASU 2017-05 was effective for fiscal years beginning after December 15, 2017, including interim reporting periods within those fiscal years. The Company adopted the ASU 2017-05 effective January 1, 2018. The Company has not disposed any real estate properties, therefore, the adoption of ASU 2017-05 has no impact on the Company's condensed consolidated financial statements. On February 25, 2016, the FASB issued ASU 2016-02 , Leases , or ASU 2016-02. ASU 2016-02 establishes the principles to increase the transparency about the assets and liabilities arising from leases. ASU 2016-02 results in a more faithful representation of the rights and obligations arising from leases by requiring lessees to recognize the lease assets and lease liabilities that arise from leases in the statement of financial position and to disclose qualitative and quantitative information about lease transactions and aligns lessor accounting and sale leaseback transactions guidance more closely to comparable guidance in Topic 606, Revenue from Contracts with Customers , and Topic 610, Other Income. Gains and Losses from the Derecognition of Non-financial Assets . Under ASU 2016-02, a lessee is required to record a right of use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. The Company is a lessee on a limited number of ground leases, which will result in the recognition of a right of use asset and lease liability upon the adoption of ASU 2016-02. Lessor accounting remains largely unchanged, apart from the narrower scope of initial direct costs that can be capitalized. The new standard will result in certain costs, such as legal costs related to lease negotiations, being expensed rather than capitalized. In addition, ASU 2016-02 requires lessors to identify the lease and non-lease components, such as the reimbursement of common area maintenance, contained within each lease. Recoveries from tenants will not be addressed until the Company's adoption of ASU 2016-02, considering its revisions to accounting for common area maintenance. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. In July 2018, the FASB issued ASU 2018-11, Targeted Improvements, to simplify the guidance by allowing lessors to elect a practical expedient to not separate non-lease components from a lease, which would provide the Company with the option of not bifurcating certain common area maintenance recoveries as a non-lease component. The Company is in process of evaluating the impact that ASU 2018-11 will have on the Company's condensed consolidated financial statements. On June 16, 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses, or ASU 2016-13. ASU 2016-13 requires more timely recording of credit losses on loans and other financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other such commitments. ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016-13 require the Company to measure all expected credit losses based upon historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the financial assets and eliminates the “incurred loss” methodology in current GAAP. ASU 2016-13 is effective for fiscal years, and interim periods within, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within, beginning after December 15, 2018. The Company is in the process of evaluating the impact ASU 2016-13 will have on the Company’s condensed consolidated financial statements. The Company believes that certain financial statements' accounts may be impacted by the adoption of ASU 2016-13, including allowances for doubtful accounts with respect to accounts receivable and straight-line rent receivable. As of June 30, 2018, there were no allowances for doubtful accounts recorded in the Company's condensed consolidated financial statements. On August 28, 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities , or ASU 2017-12. The objectives of ASU 2017-12 are to (i) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and (ii) reduce the complexity of and simplify the application of hedge accounting by preparers. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. The Company is in process of evaluating the impact that ASU 2017-12 will have on the Company’s condensed consolidated financial statements. |
Real Estate Investments
Real Estate Investments | 6 Months Ended |
Jun. 30, 2018 | |
Real Estate [Abstract] | |
Real Estate Investments | Real Estate Investments During the six months ended June 30, 2018 , the Company purchased four real estate investments, consisting of five properties, all of which were determined to be asset acquisitions. Upon the acquisition of the real estate properties determined to be asset acquisitions, the Company allocated the purchase price of the real estate properties to acquired tangible assets, consisting of land and buildings and improvements, and acquired intangible assets, based on a relative fair value method allocating all accumulated costs. The following table summarizes the consideration transferred for the properties acquired during the six months ended June 30, 2018 : Property Description Date Acquired Ownership Percentage Purchase Price (amounts in thousands) Rancho Cordova Data Center Portfolio (1) 03/14/2018 100% $ 52,087 Carrollton Healthcare Facility 04/27/2018 100% 8,699 Oceans Katy Behavioral Health Hospital 06/08/2018 100% 15,715 San Jose Data Center 06/13/2018 100% 50,407 Total $ 126,908 (1) The Rancho Cordova Data Center Portfolio consists of two properties. The following table summarizes the Company's allocation of the real estate acquisitions during the six months ended June 30, 2018 , (amounts in thousands): Total Land $ 19,347 Buildings and improvements 94,654 In-place leases 12,819 Tenant improvements 88 Total assets acquired $ 126,908 Acquisition fees and costs associated with transactions determined to be asset acquisitions are capitalized. The Company capitalized acquisition fees and costs of approximately $1,882,000 and $3,009,000 related to properties acquired during the three and six months ended June 30, 2018 , respectively, which are included in the Company's allocation of the real estate acquisitions presented above. The total amount of all acquisition fees and costs is limited to 6.0% of the contract purchase price of a property. The contract purchase price is the amount actually paid or allocated in respect of the purchase, development, construction or improvement of a property exclusive of acquisition fees and costs. For the three and six months ended June 30, 2018 , acquisition fees and costs did not exceed 6.0% of the contract purchase price of the Company's acquisitions during such periods. |
Acquired Intangible Assets, Net
Acquired Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2018 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Acquired Intangible Assets, Net | Acquired Intangible Assets, Net Acquired intangible assets, net, consisted of the following as of June 30, 2018 and December 31, 2017 (amounts in thousands, except weighted average life amounts): June 30, 2018 December 31, 2017 In-place leases, net of accumulated amortization of $31,147 and $21,776, respectively (with a weighted average remaining life of 10.4 years and 11.0 years, respectively) $ 152,042 $ 148,594 Above-market leases, net of accumulated amortization of $623 and $358, respectively (with a weighted average remaining life of 2.3 years and 2.8 years, respectively) 1,079 1,344 Ground lease interest, net of accumulated amortization of $33 and $28, respectively (with a weighted average remaining life of 65.3 years and 65.8 years, respectively) 611 616 $ 153,732 $ 150,554 The aggregate weighted average remaining life of the acquired intangible assets was 10.6 years and 11.2 years as of June 30, 2018 and December 31, 2017 , respectively. Amortization of the acquired intangible assets for the three months ended June 30, 2018 and 2017 was $4,947,000 and $2,845,000 , respectively, and for the six months ended June 30, 2018 and 2017 was $9,641,000 and $5,203,000 , respectively. Amortization of the above-market leases is recorded as an adjustment to rental and parking revenue, amortization of the in-place leases is included in depreciation and amortization, and amortization of the ground lease interest is included in rental and parking expenses in the accompanying condensed consolidated statements of comprehensive income . |
Intangible Lease Liabilities, N
Intangible Lease Liabilities, Net | 6 Months Ended |
Jun. 30, 2018 | |
Intangible Lease Liabilities, Net [Abstract] | |
Intangible Lease Liabilities, Net | Intangible Lease Liabilities, Net Intangible lease liabilities, net, consisted of the following as of June 30, 2018 and December 31, 2017 (amounts in thousands, except weighted average life amounts): June 30, 2018 December 31, 2017 Below-market leases, net of accumulated amortization of $5,202 and $2,760, respectively (with a weighted average remaining life of 18.2 years and 18.7 years, respectively) $ 58,852 $ 61,294 $ 58,852 $ 61,294 Amortization of below-market leases for the three months ended June 30, 2018 and 2017 was $1,221,000 and $252,000 , respectively, and for the six months ended June 30, 2018 and 2017 was $2,442,000 and $386,000 , respectively. Amortization of below-market leases is recorded as an adjustment to rental and parking revenue in the accompanying condensed consolidated statements of comprehensive income . |
Other Assets, Net
Other Assets, Net | 6 Months Ended |
Jun. 30, 2018 | |
Other Assets [Abstract] | |
Other Assets, Net | Other Assets, Net Other assets, net, consisted of the following as of June 30, 2018 and December 31, 2017 (amounts in thousands): June 30, 2018 December 31, 2017 Deferred financing costs, related to the revolver portion of the secured credit facility, net of accumulated amortization of $4,243 and $3,426, respectively $ 3,348 $ 1,850 Real estate escrow deposits 100 100 Restricted cash 15,654 10,944 Tenant receivables 4,548 4,916 Straight-line rent receivable 26,004 19,321 Prepaid and other assets 7,413 6,117 Derivative assets 10,228 3,934 $ 67,295 $ 47,182 |
Accounts Payable and Other Liab
Accounts Payable and Other Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other Liabilities | Accounts Payable and Other Liabilities Accounts payable and other liabilities, as of June 30, 2018 and December 31, 2017 , consisted of the following (amounts in thousands): June 30, 2018 December 31, 2017 Accounts payable and accrued expenses $ 6,434 $ 13,220 Accrued interest expense 2,725 2,410 Accrued property taxes 3,689 1,532 Distributions payable to stockholders 6,706 6,566 Tenant deposits 753 682 Deferred rental income 5,919 3,277 Derivative liabilities — 22 $ 26,226 $ 27,709 |
Notes Payable and Secured Credi
Notes Payable and Secured Credit Facility | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Notes Payable and Secured Credit Facility | Notes Payable and Secured Credit Facility The Company's debt outstanding as of June 30, 2018 and December 31, 2017 , consisted of the following (amounts in thousands): June 30, 2018 December 31, 2017 Notes payable: Fixed rate notes payable $ 220,393 $ 220,436 Variable rate notes payable fixed through interest rate swaps 247,570 247,699 Total notes payable, principal amount outstanding 467,963 468,135 Unamortized deferred financing costs related to notes payable (3,925 ) (4,393 ) Total notes payable, net of deferred financing costs 464,038 463,742 Secured credit facility: Revolving line of credit 60,000 120,000 Term loan 250,000 100,000 Total secured credit facility, principal amount outstanding 310,000 220,000 Unamortized deferred financing costs related to the term loan secured credit facility (2,776 ) (601 ) Total secured credit facility, net of deferred financing costs 307,224 219,399 Total debt outstanding $ 771,262 $ 683,141 Significant debt activity for the six months ended June 30, 2018 , excluding scheduled principal payments, includes: • On April 27, 2018, the Operating Partnership and certain of the Company’s subsidiaries entered into the Third Amended and Restated Credit Agreement (the "A&R Credit Agreement") to add seven new lenders and to increase the maximum commitments available under the secured credit facility from $425,000,000 to an aggregate of up to $700,000,000 , consisting of a $450,000,000 revolving line of credit, with a maturity date of April 27, 2022 , subject to the Operating Partnership's right for one , 12 -month extension period, and a $250,000,000 term loan, with a maturity date of April 27, 2023 . In connection with the A&R Credit Agreement, during the three months ended June 30, 2018, the Company converted $150,000,000 of the outstanding balance on its revolving line of credit into $150,000,000 outstanding on its term loan. The annual interest rate payable under the secured credit facility was decreased to, at the Operating Partnership's option, either (a) the London Interbank Offered Rate, plus an applicable margin ranging from 1.75% to 2.25% , which is determined based on the overall leverage of the Operating Partnership; or (b) a base rate, which means, for any day, a fluctuating rate per annum equal to the prime rate for such day, plus an applicable margin ranging from 0.75% to 1.25% , which is determined based on the overall leverage of the Operating Partnership. • During the six months ended June 30, 2018 , the Company drew $90,000,000 on its secured credit facility related to three real estate acquisitions. • During the six months ended June 30, 2018 , the Company increased the borrowing base availability under the secured credit facility by $94,160,000 by adding six properties to the aggregate pool availability. • As of June 30, 2018 , the Company had an aggregate pool availability under the secured credit facility of $498,584,000 . As of June 30, 2018 , the aggregate outstanding principal balance was $310,000,000 , and a total of $188,584,000 remained to be drawn on the secured credit facility. The principal payments due on the notes payable and secured credit facility for the six months ending December 31, 2018 , and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands): Year Total Amount Six months ending December 31, 2018 $ 227 2019 1,970 2020 4,535 2021 155,118 2022 224,971 Thereafter 391,142 $ 777,963 |
Related-Party Transactions and
Related-Party Transactions and Arrangements | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions and Arrangements | Related-Party Transactions and Arrangements The Company reimburses the Advisor and its affiliates for organization and offering expenses it incurs on the Company’s behalf, but only to the extent the reimbursement would not cause the selling commissions, dealer manager fees, distribution and servicing fees and other organization and offering expenses to exceed 15.0% of the gross proceeds of the Company's Initial Offering or Offering, respectively. Organization and offering expenses (other than selling commissions, dealer manager fees and distribution and servicing fees) associated with the Company's Initial Offering, which terminated on November 24, 2017, were approximately 2.0% of the gross proceeds. The Company expects that organization and offering expenses (other than selling commissions, dealer manager fees and distribution and servicing fees) associated with the Company's Offering, which commenced on November 27, 2017, will be approximately 2.0% of the gross proceeds at the termination of the Offering. As of June 30, 2018 , since inception, the Advisor and its affiliates incurred approximately $19,024,000 on the Company’s behalf in offering costs, the majority of which were incurred by the Dealer Manager. Of this amount, approximately $290,000 of other organization and offering costs remained accrued as of June 30, 2018 . As of June 30, 2018 , the Company reimbursed the Advisor or its affiliates approximately $18,212,000 in other offering costs. As of June 30, 2018 , since inception, the Company paid approximately $522,000 to an affiliate of the Dealer Manager in other offering costs. Other organization expenses are expensed as incurred and offering costs are charged to stockholders’ equity as incurred. The Company pays to the Advisor 2.0% of the contract purchase price of each property or asset acquired. For the three months ended June 30, 2018 and 2017 , the Company incurred approximately $1,459,000 and $4,873,000 , respectively, and for the six months ended June 30, 2018 and 2017 , the Company incurred $2,478,000 and $7,956,000 , respectively, in acquisition fees to the Advisor or its affiliates. In addition, the Company reimburses the Advisor for acquisition expenses incurred in connection with the selection and acquisition of properties or real estate-related investments (including expenses relating to potential investments that the Company does not close), such as legal fees and expenses, costs of real estate due diligence, appraisals, non-refundable option payments on properties not acquired, travel and communications expenses, accounting fees and expenses and title insurance premiums, whether or not the property was acquired. The Company expects these expenses will be approximately 0.75% of the purchase price of each property or real estate-related investment. The Company pays to the Advisor an asset management fee calculated on a monthly basis in an amount equal to 1/12t h of 0.75% of aggregate asset value, which is payable monthly in arrears. For the three months ended June 30, 2018 and 2017 , the Company incurred approximately $3,233,000 and $2,351,000 , respectively, and for the six months ended June 30, 2018 and 2017 , the Company incurred approximately $6,332,000 and $4,357,000 , respectively, in asset management fees. In connection with the rental, leasing, operation and management of the Company’s properties, the Company pays the Property Manager and its affiliates aggregate fees equal to 3.0% of gross revenues from the properties managed, or property management fees. The Company will reimburse the Property Manager and its affiliates for property-level expenses that any of them pay or incur on the Company’s behalf, including salaries, bonuses and benefits of persons employed by the Property Manager and its affiliates except for the salaries, bonuses and benefits of persons who also serve as one of its executive officers. The Property Manager and its affiliates may subcontract the performance of their duties to third parties and pay all or a portion of the property management fee to the third parties with whom they contract for these services. If the Company contracts directly with third parties for such services, it will pay them customary market fees and may pay the Property Manager an oversight fee equal to 1.0% of the gross revenues of the properties managed. In no event will the Company pay the Property Manager or any affiliate both a property management fee and an oversight fee with respect to any particular property. The Company also will pay the Property Manager a separate fee for the one-time initial lease-up, leasing-up of newly constructed properties or re-leasing to existing tenants. For the three months ended June 30, 2018 and 2017 , the Company incurred approximately $1,128,000 and $738,000 , respectively, and for the six months ended June 30, 2018 and 2017 , the Company incurred $2,165,000 and $1,409,000 , respectively, in property management fees to the Property Manager, which are recorded in rental and parking expenses in the accompanying condensed consolidated statements of comprehensive income . For the three months ended June 30, 2018 and 2017 , the Company incurred approximately $431,000 and $0 , respectively, and for the six months ended June 30, 2018 and 2017 , the Company incurred $431,000 and $23,000 , respectively, in leasing commissions to the Property Manager. Leasing commission fees are capitalized in other assets, net in the accompanying condensed consolidated balance sheets . For acting as general contractor and/or construction manager to supervise or coordinate projects or to provide major repairs or rehabilitation on our properties, the Company may pay the Property Manager up to 5.0% of the cost of the projects, repairs and/or rehabilitation, as applicable, or construction management fees. For the three months ended June 30, 2018 and 2017 , the Company incurred approximately $62,000 and $244,000 , respectively, and for the six months ended June 30, 2018 and 2017 , the Company incurred approximately $173,000 and $403,000 , respectively, in construction management fees to the Property Manager. Construction management fees are capitalized in real estate, net in the accompanying condensed consolidated balance sheets . The Company reimburses the Advisor for all operating expenses it paid or incurred in connection with the services provided to the Company, subject to certain limitations. Expenses in excess of the operating expenses in the four immediately preceding quarters that exceed the greater of (a) 2.0% of average invested assets or (b) 25% of net income, subject to certain adjustments, will not be reimbursed unless the independent directors determine such excess expenses are justified. The Company will not reimburse the Advisor for personnel costs in connection with services for which the Advisor receives an acquisition fee or a disposition fee. For the three months ended June 30, 2018 and 2017 , the Advisor allocated approximately $385,000 and $482,000 , respectively, and for the six months ended June 30, 2018 and 2017 , the Advisor allocated approximately $697,000 and $847,000 , respectively, in operating expenses to the Company, which are recorded in general and administrative expenses in the accompanying condensed consolidated statements of comprehensive income . On May 15, 2017, the Advisor employed Gael Ragone, who is the daughter of John E. Carter, the chairman of the Company's board of directors, as Vice President of Product Management of Carter Validus Advisors II, LLC. Effective June, 18, 2018, Ms. Ragone is no longer employed by the Advisor. The Company directly reimbursed the Advisor any amounts of Ms. Ragone's salary that were allocated to the Company. For the three and six months ended June 30, 2018, the Advisor allocated approximately $28,000 and $69,000 , respectively, which is included in general and administrative expenses in the Company's condensed consolidated statements of comprehensive income. The Company will pay its Advisor, or its affiliates, if it provides a substantial amount of services (as determined by a majority of the Company’s independent directors) in connection with the sale of properties, a disposition fee, equal to the lesser of 1.0% of the contract sales price and one-half of the total brokerage commission paid if a third party broker is also involved, without exceeding the lesser of 6.0% of the contract sales price or a reasonable, customary and competitive real estate commission. As of June 30, 2018 , the Company has not incurred any disposition fees to the Advisor or its affiliates. Upon the sale of the Company, the Advisor will receive 15% of the remaining net sale proceeds after return of capital contributions plus payment to investors of a 6.0% annual cumulative, non-compounded return on the capital contributed by investors, or the subordinated participation in net sale proceeds. As of June 30, 2018 , the Company has not incurred any subordinated participation in net sale proceeds to the Advisor or its affiliates. Upon the listing of the Company’s shares on a national securities exchange, the Advisor will receive 15.0% of the amount by which the sum of the Company’s adjusted market value plus distributions exceeds the sum of the aggregate capital contributed by investors plus an amount equal to a 6.0% annual cumulative, non-compounded return to investors, or the subordinated incentive listing fee. As of June 30, 2018 , the Company has not incurred any subordinated incentive listing fees to the Advisor or its affiliates. Upon termination or non-renewal of the advisory agreement, with or without cause, the Advisor will be entitled to receive subordinated termination fees from the Operating Partnership equal to 15% of the amount by which the sum of the Company’s adjusted market value plus distributions exceeds the sum of the aggregate capital contributed by investors plus an amount equal to an annual 6.0% cumulative, non-compounded return to investors. In addition, the Advisor may elect to defer its right to receive a subordinated termination fee upon termination until either shares of the Company’s common stock are listed and traded on a national securities exchange or another liquidity event occurs. As of June 30, 2018 , the Company has not incurred any subordinated termination fees to the Advisor or its affiliates. The Company pays the Dealer Manager selling commissions, dealer manager fees and distribution and servicing fees in connection with the purchase of shares of certain classes of common stock. All selling commissions are expected to be re-allowed to participating broker-dealers. The dealer manager fee may be partially re-allowed to participating broker-dealers. No selling commissions, dealer manager fees and distribution and servicing fees will be paid in connection with purchases of shares of any class made pursuant to the DRIP. Class A Shares The Company pays the Dealer Manager selling commissions of up to 7.0% of the gross offering proceeds per Class A share. In addition, the Company pays the Dealer Manager a dealer manager fee of up to 3.0% of gross offering proceeds from the sale of Class A shares. Class I Shares The Company does not pay selling commissions with respect to Class I shares. The Dealer Manager may receive up to 2.0% of the gross offering proceeds from the sale of Class I shares as a dealer manager fee, of which 1.0% will be funded by the Advisor without reimbursement from the Company. The 1.0% of the dealer manager fee paid from offering proceeds will be waived in the event an investor purchases Class I shares through a registered investment advisor that is not affiliated with a broker dealer. Class T Shares The Company paid the Dealer Manager selling commissions of up to 3.0% of the gross offering proceeds per Class T share. In addition, the Company paid the Dealer Manager a dealer manager fee up to 3.0% of gross offering proceeds from the sale of Class T shares. The Company ceased offering Class T shares in the Offering on March 14, 2018. Beginning on March 15, 2018, the Company offers Class T2 shares, as described below. Class T2 Shares The Company pays the Dealer Manager selling commissions of up to 3.0% of gross offering proceeds per Class T2 share. In addition, the Company pays the Dealer Manager a dealer manager fee of up to 2.5% of gross offering proceeds from the sale of Class T2 shares. For the three months ended June 30, 2018 and 2017 , the Company incurred approximately $1,540,000 and $5,313,000 , respectively, and for the six months ended June 30, 2018 and 2017 , the Company incurred approximately $3,229,000 and $10,258,000 , respectively, for selling commissions and dealer manager fees in connection with the Offerings to the Dealer Manager. The Company pays the Dealer Manager a distribution and servicing fee with respect to its Class T and T2 shares that are sold in the Company's Offerings. The distribution and servicing fee is paid monthly in arrears. For the three months ended June 30, 2018 and 2017 , the Company incurred approximately $320,000 and $2,810,000 , respectively, and for the six months ended June 30, 2018 and 2017 , the Company incurred $694,000 and $4,459,000 , respectively, in distribution and servicing fees to the Dealer Manager. Accounts Payable Due to Affiliates The following amounts were due to affiliates as of June 30, 2018 and December 31, 2017 (amounts in thousands): Entity Fee June 30, 2018 December 31, 2017 Carter Validus Advisors II, LLC and its affiliates Asset management fees $ 1,104 $ 1,017 Carter Validus Real Estate Management Services II, LLC Property management fees 527 463 Carter Validus Real Estate Management Services II, LLC Construction management fees 29 39 Carter Validus Advisors II, LLC and its affiliates General and administrative costs 147 182 Carter Validus Advisors II, LLC and its affiliates Offering costs 290 167 SC Distributors, LLC Distribution and servicing fees 12,341 13,376 Carter Validus Advisors II, LLC and its affiliates Acquisition expenses — 5 Carter Validus Real Estate Management Services II, LLC Leasing commissions 7 — $ 14,445 $ 15,249 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Management reviews the performance of individual properties and aggregates individual properties based on operating criteria into two reportable segments—commercial real estate investments in data centers and healthcare, and makes operating decisions based on these two reportable segments. The Company’s commercial real estate investments in data centers and healthcare are based on certain underwriting assumptions and operating criteria, which are different for data centers and healthcare. The Company evaluates performance based on net operating income of the individual properties in each segment. Net operating income, a non-GAAP financial measure, is defined as total revenues, less rental and parking expenses, which excludes depreciation and amortization, general and administrative expenses, acquisition related expenses, asset management fees and interest expense, net. The Company believes that segment net operating income serves as a useful supplement to net income because it allows investors and management to measure unlevered property-level operating results and to compare operating results to the operating results of other real estate companies between periods on a consistent basis. Segment net operating income should not be considered as an alternative to net income determined in accordance with GAAP as an indicator of financial performance, and accordingly, the Company believes that in order to facilitate a clear understanding of the consolidated historical operating results, segment net operating income should be examined in conjunction with net income as presented in the accompanying condensed consolidated financial statements and data included elsewhere in this Quarterly Report on Form 10-Q . Non-segment assets primarily consist of corporate assets, including cash and cash equivalents, real estate and escrow deposits, deferred financing costs attributable to the revolving line of credit portion of the Company's secured credit facility and other assets not attributable to individual properties. Summary information for the reportable segments during the three and six months ended June 30, 2018 and 2017 , is as follows (amounts in thousands): Data Center Healthcare Three Months Ended Revenue: Rental, parking and tenant reimbursement revenue $ 25,879 $ 18,071 $ 43,950 Expenses: Rental and parking expenses (7,200 ) (2,502 ) (9,702 ) Segment net operating income $ 18,679 $ 15,569 34,248 Expenses: General and administrative expenses (1,339 ) Asset management fees (3,233 ) Depreciation and amortization (14,282 ) Income from operations 15,394 Interest expense, net (8,208 ) Net income attributable to common stockholders $ 7,186 Data Center Healthcare Three Months Ended Revenue: Rental, parking and tenant reimbursement revenue $ 11,761 $ 15,841 $ 27,602 Expenses: Rental and parking expenses (3,027 ) (2,273 ) (5,300 ) Segment net operating income $ 8,734 $ 13,568 22,302 Expenses: General and administrative expenses (1,212 ) Asset management fees (2,351 ) Depreciation and amortization (9,025 ) Income from operations 9,714 Interest expense, net (5,073 ) Net income attributable to common stockholders $ 4,641 Data Centers Healthcare Six Months Ended Revenue: Rental, parking and tenant reimbursement revenue $ 49,600 $ 35,645 $ 85,245 Expenses: Rental and parking expenses (13,137 ) (4,855 ) (17,992 ) Segment net operating income $ 36,463 $ 30,790 67,253 Expenses: General and administrative expenses (2,282 ) Asset management fees (6,332 ) Depreciation and amortization (27,999 ) Income from operations 30,640 Interest expense, net (15,950 ) Net income attributable to common stockholders $ 14,690 Data Centers Healthcare Six Months Ended Revenue: Rental, parking and tenant reimbursement revenue $ 21,465 $ 30,159 $ 51,624 Expenses: Rental and parking expenses (5,687 ) (4,539 ) (10,226 ) Segment net operating income $ 15,778 $ 25,620 41,398 Expenses: General and administrative expenses (2,137 ) Asset management fees (4,357 ) Depreciation and amortization (16,635 ) Income from operations 18,269 Interest expense, net (8,837 ) Net income attributable to common stockholders $ 9,432 There were no intersegment sales or transfers during the three and six months ended June 30, 2018 and 2017 . Assets by each reportable segment as of June 30, 2018 and December 31, 2017 are as follows (amounts in thousands): June 30, 2018 December 31, 2017 Assets by segment: Data centers $ 1,003,283 $ 909,477 Healthcare 829,305 813,742 All other 69,176 54,725 Total assets $ 1,901,764 $ 1,777,944 Capital additions and acquisitions by reportable segments for the six months ended June 30, 2018 and 2017 are as follows (amounts in thousands): Six Months Ended 2018 2017 Capital additions and acquisitions by segment: Data centers $ 103,865 $ 308,931 Healthcare 35,096 110,374 Total capital additions and acquisitions $ 138,961 $ 419,305 |
Future Minimum Rent
Future Minimum Rent | 6 Months Ended |
Jun. 30, 2018 | |
Leases [Abstract] | |
Future Minimum Rent | Future Minimum Rent Rental Income The Company’s real estate assets are leased to tenants under operating leases with varying terms. Typically, the leases have provisions to extend the terms of the lease agreements. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. The future minimum rent to be received from the Company’s investment in real estate assets under non-cancelable operating leases, including optional renewal periods for which exercise is reasonably assured, for the six months ending December 31, 2018 and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands): Year Amount Six months ending December 31, 2018 $ 66,563 2019 135,011 2020 134,630 2021 136,763 2022 132,149 Thereafter 1,026,775 $ 1,631,891 Rental Expense The Company has ground lease obligations that generally require fixed annual rental payments and may also include escalation clauses and renewal options. The future minimum rent obligations under non-cancelable ground leases for the six months ending December 31, 2018 and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands): Year Amount Six months ending December 31, 2018 $ 66 2019 132 2020 132 2021 132 2022 132 Thereafter 3,142 $ 3,736 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Notes payable—Fixed Rate —The estimated fair value of notes payable — fixed rate measured using observable inputs from similar liabilities (Level 2) was approximately $210,805,000 and $211,011,000 as of June 30, 2018 and December 31, 2017 , respectively, as compared to the outstanding principal of $220,393,000 and $220,436,000 as of June 30, 2018 and December 31, 2017 , respectively. The estimated fair value of notes payable — variable rate fixed through interest rate swap agreements (Level 2) was approximately $239,119,000 and $243,812,000 as of June 30, 2018 and December 31, 2017 , respectively, as compared to the outstanding principal of $247,570,000 and $247,699,000 as of June 30, 2018 and December 31, 2017 , respectively. Secured credit facility —The outstanding principal of the secured credit facility—variable was $210,000,000 and $120,000,000 , which approximated its fair value as of June 30, 2018 and December 31, 2017 , respectively. The fair value of the Company's variable rate secured credit facility is estimated based on the interest rates currently offered to the Company by financial institutions. The estimated fair value of the secured credit facility—variable rate fixed through interest rate swap agreements (Level 2) was approximately $93,805,000 and $98,593,000 as of June 30, 2018 and December 31, 2017 , respectively, as compared to the outstanding principal of $100,000,000 as of June 30, 2018 and December 31, 2017 . Derivative instruments —Considerable judgment is necessary to develop estimated fair values of financial instruments. Accordingly, the estimates presented herein are not necessarily indicative of the amount the Company could realize, or be liable for, on disposition of the financial instruments. The Company has determined that the majority of the inputs used to value its interest rate swaps fall within Level 2 of the fair value hierarchy. The credit valuation adjustments associated with these instruments utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and the respective counterparty. However, as of June 30, 2018 , the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions, and has determined that the credit valuation adjustments are not significant to the overall valuation of its interest rate swaps. As a result, the Company determined that its interest rate swaps valuation is classified in Level 2 of the fair value hierarchy. The following tables show the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 (amounts in thousands): June 30, 2018 Fair Value Hierarchy Quoted Prices in Active Significant Other Significant Total Fair Assets: Derivative assets $ — $ 10,228 $ — $ 10,228 Total assets at fair value $ — $ 10,228 $ — $ 10,228 December 31, 2017 Fair Value Hierarchy Quoted Prices in Active Significant Other Significant Total Fair Assets: Derivative assets $ — $ 3,934 $ — $ 3,934 Total assets at fair value $ — $ 3,934 $ — $ 3,934 Liabilities: Derivative liabilities $ — $ 22 $ — $ 22 Total liabilities at fair value $ — $ 22 $ — $ 22 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated, and that qualify, as cash flow hedges is recorded in accumulated other comprehensive income in the accompanying condensed consolidated statement of stockholders' equity and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the three and six months ended June 30, 2018 and 2017 , the Company's derivative instruments were used to hedge the variable cash flows associated with variable rate debt. The ineffective portion of changes in fair value of the derivatives are recognized directly in earnings. During the three months ended June 30, 2018 and 2017 , the Company recognized a loss of $38,000 and a gain of $10,000 , respectively, and during the six months ended June 30, 2018 and 2017 , the Company recognized a loss of $77,000 and a gain of $2,000 , respectively, due to ineffectiveness of its hedges of interest rate risk, which was recorded in interest expense, net in the accompanying condensed consolidated statements of comprehensive income . Amounts reported in accumulated other comprehensive income related to the derivative will be reclassified to interest expense, net as interest payments are made on the Company’s variable rate debt. During the next twelve months, the Company estimates that an additional $2,228,000 will be reclassified from accumulated other comprehensive income as a decrease to interest expense, net. See Note 12—"Fair Value" for a further discussion of the fair value of the Company’s derivative instruments. The following table summarizes the notional amount and fair value of the Company’s derivative instruments (amounts in thousands): Derivatives Balance Effective Maturity June 30, 2018 December 31, 2017 Outstanding Fair Value of Outstanding Fair Value of Asset (Liability) Asset (Liability) Interest rate swaps Other assets, net/Accounts 07/01/2016 to 12/22/2020 to $ 347,570 $ 10,228 $ — $ 347,699 $ 3,934 $ (22 ) The notional amount under the agreements is an indication of the extent of the Company’s involvement in the instruments at the time, but does not represent exposure to credit, interest rate or market risks. Accounting for changes in the fair value of a derivative instrument depends on the intended use and designation of the derivative instrument. The Company designated the interest rate swaps as cash flow hedges to hedge the variability of the anticipated cash flows on its variable rate secured credit facility and notes payable. The change in fair value of the effective portion of the derivative instruments that are designated as hedges is recorded in other comprehensive income (loss) in the accompanying condensed consolidated statements of comprehensive income . The table below summarizes the amount of income (loss) recognized on the interest rate derivatives designated as cash flow hedges for the three and six months ended June 30, 2018 and 2017 (amounts in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Income (Loss) Recognized Location of Income (Loss) Amount of Income (Loss) Three Months Ended June 30, 2018 Interest rate swaps $ 1,971 Interest expense, net $ 153 Total $ 1,971 $ 153 Three Months Ended June 30, 2017 Interest rate swaps $ (1,048 ) Interest expense, net $ (342 ) Total $ (1,048 ) $ (342 ) Six Months Ended June 30, 2018 Interest rate swaps $ 6,417 Interest expense, net $ 24 Total $ 6,417 $ 24 Six Months Ended June 30, 2017 Interest rate swaps $ (635 ) Interest expense, net $ (697 ) Total $ (635 ) $ (697 ) Credit Risk-Related Contingent Features T he Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. The Company records credit risk valuation adjustments on its interest rate swaps based on the respective credit quality of the Company and the counterparty. The Company believes it mitigates its credit risk by entering into agreements with creditworthy counterparties. As of June 30, 2018 , there were no derivatives in a net liability position. As of June 30, 2018 , there were no termination events or events of default related to the interest rate swaps. Tabular Disclosure Offsetting Derivatives The Company has elected not to offset derivative positions in its condensed consolidated financial statements. The following tables present the effect on the Company’s financial position had the Company made the election to offset its derivative positions as of June 30, 2018 and December 31, 2017 (amounts in thousands): Offsetting of Derivative Assets Gross Amounts Not Offset in the Balance Sheet Gross Gross Amounts Net Amounts of Financial Instruments Cash Collateral Net June 30, 2018 $ 10,228 $ — $ 10,228 $ — $ — $ 10,228 December 31, 2017 $ 3,934 $ — $ 3,934 $ — $ — $ 3,934 Offsetting of Derivative Liabilities Gross Amounts Not Offset in the Balance Sheet Gross Gross Amounts Net Amounts of Financial Instruments Cash Collateral Net December 31, 2017 $ 22 $ — $ 22 $ — $ — $ 22 The Company reports derivatives in the accompanying condensed consolidated balance sheets as other assets, net and accounts payable and other liabi |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table presents a rollforward of amounts recognized in accumulated other comprehensive income by component for the six months ended June 30, 2018 and 2017 (amounts in thousands): Unrealized Income on Derivative Accumulated Other Balance as of December 31, 2017 $ 3,710 $ 3,710 Other comprehensive income before reclassification 6,417 6,417 Amount of gain reclassified from accumulated other comprehensive income to net income (effective portion) (24 ) (24 ) Other comprehensive income 6,393 6,393 Balance as of June 30, 2018 $ 10,103 $ 10,103 Unrealized Income on Derivative Accumulated Other Balance as of December 31, 2016 $ 840 $ 840 Other comprehensive loss before reclassification (635 ) (635 ) Amount of loss reclassified from accumulated other comprehensive income to net income (effective portion) 697 697 Other comprehensive income 62 62 Balance as of June 30, 2017 $ 902 $ 902 The following table presents reclassifications out of accumulated other comprehensive income for the six months ended June 30, 2018 and 2017 (amounts in thousands): Details about Accumulated Other Amounts Reclassified from Affected Line Items in the Condensed Consolidated Statements of Comprehensive Income Six Months Ended 2018 2017 Interest rate swap contracts $ (24 ) $ 697 Interest expense, net |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation In the ordinary course of business, the Company may become subject to litigation or claims. As of June 30, 2018 , there were, and currently there are, no material pending legal proceedings to which the Company is a party. |
Economic Dependency
Economic Dependency | 6 Months Ended |
Jun. 30, 2018 | |
Economic Dependency [Abstract] | |
Economic Dependency | Economic Dependency The Company is dependent on the Advisor and its affiliates for certain services that are essential to the Company, including the sale of the Company’s shares of common and preferred stock available for issuance; the identification, evaluation, negotiation, purchase and disposition of real estate investments and other investments; the management of the daily operations of the Company’s real estate portfolio; and other general and administrative responsibilities. In the event that the Advisor and its affiliates are unable to provide the respective services, the Company will be required to obtain such services from other sources. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Distributions Paid to Stockholders On July 2, 2018 , the Company paid aggregate distributions of approximately $4,423,000 to Class A stockholders ( $2,296,000 in cash and $2,127,000 in shares of the Company’s Class A common stock pursuant to the DRIP), which related to distributions declared for each day in the period from June 1, 2018 through June 30, 2018. On August 1, 2018 , the Company paid aggregate distributions of approximately $4,556,000 to Class A stockholders ( $2,372,000 in cash and $2,184,000 in shares of the Company’s Class A common stock pursuant to the DRIP), which related to distributions declared for each day in the period from July 1, 2018 through July 31, 2018. On July 2, 2018 , the Company paid aggregate distributions of approximately $511,000 to Class I stockholders ( $295,000 in cash and $216,000 in shares of the Company’s Class I common stock pursuant to the DRIP), which related to distributions declared for each day in the period from June 1, 2018 through June 30, 2018. On August 1, 2018 , the Company paid aggregate distributions of approximately $559,000 to Class I stockholders ( $326,000 in cash and $233,000 in shares of the Company’s Class I common stock pursuant to the DRIP), which related to distributions declared for each day in the period from July 1, 2018 through July 31, 2018. On July 2, 2018 , the Company paid aggregate distributions of approximately $1,717,000 to Class T stockholders ( $734,000 in cash and $983,000 in shares of the Company's Class T common stock pursuant to the DRIP), which related to distributions declared for each day in the period from June 1, 2018 through June 30, 2018. On August 1, 2018 , the Company paid aggregate distributions of approximately $1,777,000 to Class T stockholders ( $763,000 in cash and $1,014,000 in shares of the Company's Class T common stock pursuant to the DRIP), which related to distributions declared for each day in the period from July 1, 2018 through July 31, 2018. On July 2, 2018 , the Company paid aggregate distributions of approximately $55,000 to Class T2 stockholders ( $18,000 in cash and $37,000 in shares of the Company's Class T2 common stock pursuant to the DRIP), which related to distributions declared for each day in the period from June 1, 2018 through June 30, 2018. On August 1, 2018 , the Company paid aggregate distributions of approximately $73,000 to Class T2 stockholders ( $27,000 in cash and $46,000 in shares of the Company's Class T2 common stock pursuant to the DRIP), which related to distributions declared for each day in the period from July 1, 2018 through July 31, 2018. Distributions Authorized Class A Shares On August 10, 2018, the board of directors of the Company approved and authorized a daily distribution to the Company’s Class A stockholders of record as of the close of business on each day of the period commencing on September 1, 2018 and ending on November 30, 2018. The distribution will be calculated based on 365 days in the calendar year and will be equal to $0.001788493 per share of Class A common stock, which will be equal to an annualized distribution rate of 6.40% , assuming a purchase price of $10.200 per share of Class A common stock. The distributions declared for each record date in September 2018, October 2018 and November 2018 will be paid in October 2018, November 2018 and December 2018, respectively. The distributions will be payable to stockholders from legally available funds therefor. Class I Shares On August 10, 2018, the board of directors of the Company approved and authorized a daily distribution to the Company’s Class I stockholders of record as of the close of business on each day of the period commencing on September 1, 2018 and ending on November 30, 2018. The distribution will be calculated based on 365 days in the calendar year and will be equal to $0.001788493 per share of Class I common stock, which will be equal to an annualized distribution rate of 7.04% , assuming a purchase price of $9.273 per share. The distributions declared for each record date in September 2018, October 2018 and November 2018 will be paid in October 2018, November 2018 and December 2018, respectively. The distributions will be payable to stockholders from legally available funds therefor. Class T Shares On August 10, 2018, the board of directors of the Company approved and authorized a daily distribution to the Company’s Class T stockholders of record as of the close of business on each day of the period commencing on September 1, 2018 and ending on November 30, 2018. The distribution will be calculated based on 365 days in the calendar year and will be equal to $0.001519750 per share of Class T common stock, which will be equal to an annualized distribution rate of 5.68% , assuming a purchase price of $9.766 per share. The distributions declared for each record date in September 2018, October 2018 and November 2018 will be paid in October 2018, November 2018 and December 2018, respectively. The distributions will be payable to stockholders from legally available funds therefor. Class T2 Shares On August 10, 2018, the board of directors of the Company approved and authorized a daily distribution to the Company’s Class T2 stockholders of record as of the close of business on each day of the period commencing on September 1, 2018 and ending on November 30, 2018. The distribution will be calculated based on 365 days in the calendar year and will be equal to $0.001522356 per share of Class T2 common stock, which will be equal to an annualized distribution rate of 5.72% , assuming a purchase price of $9.714 per share. The distributions declared for each record date in September 2018, October 2018 and November 2018 will be paid in October 2018, November 2018 and December 2018, respectively. The distributions will be payable to stockholders from legally available funds therefor. Fourth Amended and Restated Share Repurchase Program The board of directors of the Company approved and adopted the Fourth Amended and Restated Share Repurchase Program (the "Amended & Restated SRP"), which will be effective on August 29, 2018. The Amended & Restated SRP provides, among other things, that the Company will repurchase shares on a quarterly, instead of monthly basis. In no event will the Company repurchase in excess of 5.0% of the number of shares of common stock outstanding on December 31st of the previous calendar year (the " 5% Annual Limitation"). The Company will either accept or reject a repurchase request on the last day of each quarter (the "Repurchase Date"). For the remainder of the year ending December 31, 2018, the Company will limit the number of shares repurchased pursuant to the Amended & Restated SRP as follows: • On the Repurchase Date for the third quarter of 2018, the Company will not repurchase in excess of 50% of the number of shares available for repurchase as of June 11, 2018, based on the 5% Annual Limitation; and • On the Repurchase Date for the fourth quarter of 2018, the Company will not repurchase in excess of 50% of the number of shares available for repurchase as of June 11, 2018, based on the 5% Annual Limitation. The Company reserves the right to increase the share limitation of the fourth quarter of 2018 as necessary in accordance with the 5% Annual Limitation. The Company will fund share repurchases during the remainder of 2018 with proceeds received from the sale of shares in DRIP during the year ended December 31, 2017, and other operating funds as approved by the board of directors. See Part II, Item 2. "Unregistered Sales of Equity Securities" for more information on the Amended & Restated SRP. Status of the Offerings As of August 9, 2018 , the Company had accepted investors’ subscriptions for and issued approximately 87,306,000 shares of Class A common stock, 10,485,000 shares of Class I common stock, 38,196,000 shares of Class T common stock and 1,926,000 shares of Class T2 common stock in the Offerings, resulting in receipt of gross proceeds of approximately $863,937,000 , $95,986,000 , $366,921,000 and $18,654,000 , respectively. As of August 9, 2018 , the Company had approximately $908,482,000 in Class A shares, Class I shares and Class T2 shares of common stock remaining in the Offering and approximately $69,750,000 in Class A shares, Class I shares, Class T shares and Class T2 shares of common stock remaining in the DRIP Offering. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company, the Operating Partnership, and all wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements and accompanying notes in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates are made and evaluated on an ongoing basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. |
Restricted Cash | Restricted Cash Restricted cash consists of restricted cash held in escrow and restricted bank deposits. Restricted cash held in escrow includes cash held in escrow accounts for capital improvements for certain properties as well as cash held by lenders in escrow accounts for tenant and capital improvements, repairs and maintenance and other lender reserves for certain properties, in accordance with the respective lender’s loan agreement. Restricted cash held in escrow is reported in other assets, net in the accompanying condensed consolidated balance sheets . Restricted bank deposits consist of tenant receipts for certain properties which are required to be deposited into lender-controlled accounts in accordance with the respective lender's loan agreement. Restricted bank deposits are reported in other assets, net in the accompanying condensed consolidated balance sheets . See Note 6—"Other Assets, Net" . The following table presents a reconciliation of the beginning of period and end of period cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the totals shown in the condensed consolidated statements of cash flows (amounts in thousands): Six Months Ended Beginning of period: 2018 2017 Cash and cash equivalents 74,803 50,446 Restricted cash 10,944 6,463 Cash, cash equivalents and restricted cash $ 85,747 $ 56,909 End of period: Cash and cash equivalents 73,241 74,350 Restricted cash 15,654 14,018 Cash, cash equivalents and restricted cash $ 88,895 $ 88,368 |
Concentration of Credit Risk and Significant Leases | Concentration of Credit Risk and Significant Leases As of June 30, 2018 , the Company had cash on deposit, including restricted cash, in certain financial institutions that had deposits in excess of current federally insured levels. The Company limits its cash investments to financial institutions with high credit standing; therefore, the Company believes it is not exposed to any significant credit risk on its cash deposits. To date, the Company has experienced no loss or lack of access to cash in its accounts. As of June 30, 2018 , the Company owned real estate investments in 38 MSAs, two of which accounted for 10.0% or more of revenue. Real estate investments located in the Atlanta-Sandy Springs-Roswell, Georgia MSA and the Houston-The Woodlands-Sugar Land, Texas MSA accounted for 17.7% and 10.0% , respectively, of rental revenue for the six months ended June 30, 2018 . As of June 30, 2018 , the Company had no exposure to tenant concentration that accounted for 10.0% or more of revenue for the six months ended June 30, 2018 . |
Share Repurchase Program | Share Repurchase Program The Company’s share repurchase program allows for repurchases of shares of the Company’s common stock when certain criteria are met. The share repurchase program provides that all repurchases during any calendar year, including those redeemable upon death or a Qualifying Disability of a stockholder, are limited to those that can be funded with equivalent proceeds raised from the DRIP Offering during the prior calendar year and other operating funds, if any, as the board of directors, in its sole discretion, may reserve for this purpose. Repurchases of shares of the Company’s common stock are at the sole discretion of the Company’s board of directors, provided, however, that the Company will limit the number of shares repurchased during any calendar year to 5.0% of the number of shares of common stock outstanding as of December 31st of the previous calendar year. In addition, the Company’s board of directors, in its sole discretion, may suspend (in whole or in part) the share repurchase program at any time, and may amend, reduce, terminate or otherwise change the share repurchase program upon 30 days' prior notice to the Company’s stockholders for any reason it deems appropriate. During the six months ended June 30, 2018 , the Company received valid repurchase requests related to 2,503,302 Class A shares, Class I shares and Class T shares of common stock ( 2,212,017 Class A shares, 21,085 Class I shares and 270,200 Class T shares), all of which were redeemed in full for an aggregate purchase price of approximately $22,980,000 (an average of $9.18 per share). During the six months ended June 30, 2017 , the Company received valid repurchase requests related to 532,599 Class A and Class T shares of common stock ( 519,091 Class A shares and 13,508 Class T shares) , all of which were redeemed in full for an aggregate purchase price of approximately $4,830,000 (an average of $9.07 per share). |
Earnings Per Share | Earnings Per Share The Company calculates basic earnings per share by dividing net income attributable to common stockholders for the period by the weighted average shares of its common stock outstanding for that period. Diluted earnings per share are computed based on the weighted average number of shares outstanding and all potentially dilutive securities. Shares of non-vested restricted common stock give rise to potentially dilutive shares of common stock. For the three months ended June 30, 2018 and 2017 , diluted earnings per share reflected the effect of approximately 22,000 and 15,000 shares, respectively, of non-vested shares of restricted common stock that were outstanding as of such period. For the six months ended June 30, 2018 and 2017 , diluted earnings per share reflected the effect of approximately 22,000 and 16,000 and shares, respectively, of non-vested shares of restricted common stock that were outstanding as of such period. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements On May 28, 2014, the FASB issued Accounting Standards Update, or ASU, 2014-09, Revenue from Contracts with Customers , or ASU 2014-09. The pronouncement was issued to clarify the principles for recognizing revenue and to develop a common revenue standard and disclosure requirements. The pronouncement is effective for reporting periods beginning after December 15, 2017. Upon adoption of ASU 2016-02 in 2019, as discussed below, the Company may be required to classify its tenant recoveries into lease and nonlease components, whereby the nonlease components would be subject to ASU 2014-09, pending the resolution of the proposed amendment issued by the FASB in January 2018. The Company adopted the provisions of ASU 2014-09 effective January 1, 2018, using the modified retrospective approach. Property rental revenue is accounted for in accordance with Accounting Standards Codification (ASC) 840, Leases . The Company's rental revenue consists of (i) contractual revenues from leases recognized on a straight-line basis over the term of the respective lease; (ii) parking revenue; and (iii) the reimbursements of the tenants' share of real estate taxes, insurance and other operating expenses. The Company evaluated the revenue recognition for its contracts within this scope under existing accounting standards and under ASU 2014-09 and concluded that there were no changes to the condensed consolidated financial statements as a result of adoption. On February 23, 2017, the FASB issued ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, or ASU 2017-05. ASU 2017-05 clarifies the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets. Partial sales of non-financial assets include transactions in which the seller retains an equity interest in the entity that owns the assets or has an equity interest in the buyer. ASU 2017-05 provides guidance on how entities should recognize sales, including partial sales, of non-financial assets (and in-substance non-financial assets) to non-customers. ASU 2017-05 requires the seller to recognize a full gain or loss in a partial sale of non-financial assets, to the extent control is not retained. Any noncontrolling interest retained by the seller would, accordingly, be measured at fair value. ASU 2017-05 was effective for fiscal years beginning after December 15, 2017, including interim reporting periods within those fiscal years. The Company adopted the ASU 2017-05 effective January 1, 2018. The Company has not disposed any real estate properties, therefore, the adoption of ASU 2017-05 has no impact on the Company's condensed consolidated financial statements. On February 25, 2016, the FASB issued ASU 2016-02 , Leases , or ASU 2016-02. ASU 2016-02 establishes the principles to increase the transparency about the assets and liabilities arising from leases. ASU 2016-02 results in a more faithful representation of the rights and obligations arising from leases by requiring lessees to recognize the lease assets and lease liabilities that arise from leases in the statement of financial position and to disclose qualitative and quantitative information about lease transactions and aligns lessor accounting and sale leaseback transactions guidance more closely to comparable guidance in Topic 606, Revenue from Contracts with Customers , and Topic 610, Other Income. Gains and Losses from the Derecognition of Non-financial Assets . Under ASU 2016-02, a lessee is required to record a right of use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. The Company is a lessee on a limited number of ground leases, which will result in the recognition of a right of use asset and lease liability upon the adoption of ASU 2016-02. Lessor accounting remains largely unchanged, apart from the narrower scope of initial direct costs that can be capitalized. The new standard will result in certain costs, such as legal costs related to lease negotiations, being expensed rather than capitalized. In addition, ASU 2016-02 requires lessors to identify the lease and non-lease components, such as the reimbursement of common area maintenance, contained within each lease. Recoveries from tenants will not be addressed until the Company's adoption of ASU 2016-02, considering its revisions to accounting for common area maintenance. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. In July 2018, the FASB issued ASU 2018-11, Targeted Improvements, to simplify the guidance by allowing lessors to elect a practical expedient to not separate non-lease components from a lease, which would provide the Company with the option of not bifurcating certain common area maintenance recoveries as a non-lease component. The Company is in process of evaluating the impact that ASU 2018-11 will have on the Company's condensed consolidated financial statements. On June 16, 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses, or ASU 2016-13. ASU 2016-13 requires more timely recording of credit losses on loans and other financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other such commitments. ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016-13 require the Company to measure all expected credit losses based upon historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the financial assets and eliminates the “incurred loss” methodology in current GAAP. ASU 2016-13 is effective for fiscal years, and interim periods within, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within, beginning after December 15, 2018. The Company is in the process of evaluating the impact ASU 2016-13 will have on the Company’s condensed consolidated financial statements. The Company believes that certain financial statements' accounts may be impacted by the adoption of ASU 2016-13, including allowances for doubtful accounts with respect to accounts receivable and straight-line rent receivable. As of June 30, 2018, there were no allowances for doubtful accounts recorded in the Company's condensed consolidated financial statements. On August 28, 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities , or ASU 2017-12. The objectives of ASU 2017-12 are to (i) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and (ii) reduce the complexity of and simplify the application of hedge accounting by preparers. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. The Company is in process of evaluating the impact that ASU 2017-12 will have on the Company’s condensed consolidated financial statements. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table presents a reconciliation of the beginning of period and end of period cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the totals shown in the condensed consolidated statements of cash flows (amounts in thousands): Six Months Ended Beginning of period: 2018 2017 Cash and cash equivalents 74,803 50,446 Restricted cash 10,944 6,463 Cash, cash equivalents and restricted cash $ 85,747 $ 56,909 End of period: Cash and cash equivalents 73,241 74,350 Restricted cash 15,654 14,018 Cash, cash equivalents and restricted cash $ 88,895 $ 88,368 |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Real Estate [Abstract] | |
Schedule of Consideration Transferred for Properties Acquired | The following table summarizes the consideration transferred for the properties acquired during the six months ended June 30, 2018 : Property Description Date Acquired Ownership Percentage Purchase Price (amounts in thousands) Rancho Cordova Data Center Portfolio (1) 03/14/2018 100% $ 52,087 Carrollton Healthcare Facility 04/27/2018 100% 8,699 Oceans Katy Behavioral Health Hospital 06/08/2018 100% 15,715 San Jose Data Center 06/13/2018 100% 50,407 Total $ 126,908 (1) The Rancho Cordova Data Center Portfolio consists of two properties. |
Schedule of Allocation of Acquisitions | The following table summarizes the Company's allocation of the real estate acquisitions during the six months ended June 30, 2018 , (amounts in thousands): Total Land $ 19,347 Buildings and improvements 94,654 In-place leases 12,819 Tenant improvements 88 Total assets acquired $ 126,908 |
Acquired Intangible Assets, N28
Acquired Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Schedule of Acquired Intangible Assets, Net | Acquired intangible assets, net, consisted of the following as of June 30, 2018 and December 31, 2017 (amounts in thousands, except weighted average life amounts): June 30, 2018 December 31, 2017 In-place leases, net of accumulated amortization of $31,147 and $21,776, respectively (with a weighted average remaining life of 10.4 years and 11.0 years, respectively) $ 152,042 $ 148,594 Above-market leases, net of accumulated amortization of $623 and $358, respectively (with a weighted average remaining life of 2.3 years and 2.8 years, respectively) 1,079 1,344 Ground lease interest, net of accumulated amortization of $33 and $28, respectively (with a weighted average remaining life of 65.3 years and 65.8 years, respectively) 611 616 $ 153,732 $ 150,554 |
Intangible Lease Liabilities,29
Intangible Lease Liabilities, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Intangible Lease Liabilities, Net [Abstract] | |
Schedule of Intangible Lease Liabilities, Net | Intangible lease liabilities, net, consisted of the following as of June 30, 2018 and December 31, 2017 (amounts in thousands, except weighted average life amounts): June 30, 2018 December 31, 2017 Below-market leases, net of accumulated amortization of $5,202 and $2,760, respectively (with a weighted average remaining life of 18.2 years and 18.7 years, respectively) $ 58,852 $ 61,294 $ 58,852 $ 61,294 |
Other Assets, Net (Tables)
Other Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Assets [Abstract] | |
Schedule of Other Assets, Net | Other assets, net, consisted of the following as of June 30, 2018 and December 31, 2017 (amounts in thousands): June 30, 2018 December 31, 2017 Deferred financing costs, related to the revolver portion of the secured credit facility, net of accumulated amortization of $4,243 and $3,426, respectively $ 3,348 $ 1,850 Real estate escrow deposits 100 100 Restricted cash 15,654 10,944 Tenant receivables 4,548 4,916 Straight-line rent receivable 26,004 19,321 Prepaid and other assets 7,413 6,117 Derivative assets 10,228 3,934 $ 67,295 $ 47,182 |
Accounts Payable and Other Li31
Accounts Payable and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Other Liabilities | Accounts payable and other liabilities, as of June 30, 2018 and December 31, 2017 , consisted of the following (amounts in thousands): June 30, 2018 December 31, 2017 Accounts payable and accrued expenses $ 6,434 $ 13,220 Accrued interest expense 2,725 2,410 Accrued property taxes 3,689 1,532 Distributions payable to stockholders 6,706 6,566 Tenant deposits 753 682 Deferred rental income 5,919 3,277 Derivative liabilities — 22 $ 26,226 $ 27,709 |
Notes Payable and Secured Cre32
Notes Payable and Secured Credit Facility (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's debt outstanding as of June 30, 2018 and December 31, 2017 , consisted of the following (amounts in thousands): June 30, 2018 December 31, 2017 Notes payable: Fixed rate notes payable $ 220,393 $ 220,436 Variable rate notes payable fixed through interest rate swaps 247,570 247,699 Total notes payable, principal amount outstanding 467,963 468,135 Unamortized deferred financing costs related to notes payable (3,925 ) (4,393 ) Total notes payable, net of deferred financing costs 464,038 463,742 Secured credit facility: Revolving line of credit 60,000 120,000 Term loan 250,000 100,000 Total secured credit facility, principal amount outstanding 310,000 220,000 Unamortized deferred financing costs related to the term loan secured credit facility (2,776 ) (601 ) Total secured credit facility, net of deferred financing costs 307,224 219,399 Total debt outstanding $ 771,262 $ 683,141 |
Schedule of Future Principal Payments Due on Notes Payable and Secured Credit Facility | The principal payments due on the notes payable and secured credit facility for the six months ending December 31, 2018 , and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands): Year Total Amount Six months ending December 31, 2018 $ 227 2019 1,970 2020 4,535 2021 155,118 2022 224,971 Thereafter 391,142 $ 777,963 |
Related-Party Transactions an33
Related-Party Transactions and Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Accounts Payable Due to Affiliates | The following amounts were due to affiliates as of June 30, 2018 and December 31, 2017 (amounts in thousands): Entity Fee June 30, 2018 December 31, 2017 Carter Validus Advisors II, LLC and its affiliates Asset management fees $ 1,104 $ 1,017 Carter Validus Real Estate Management Services II, LLC Property management fees 527 463 Carter Validus Real Estate Management Services II, LLC Construction management fees 29 39 Carter Validus Advisors II, LLC and its affiliates General and administrative costs 147 182 Carter Validus Advisors II, LLC and its affiliates Offering costs 290 167 SC Distributors, LLC Distribution and servicing fees 12,341 13,376 Carter Validus Advisors II, LLC and its affiliates Acquisition expenses — 5 Carter Validus Real Estate Management Services II, LLC Leasing commissions 7 — $ 14,445 $ 15,249 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Information for Reportable Segments | Summary information for the reportable segments during the three and six months ended June 30, 2018 and 2017 , is as follows (amounts in thousands): Data Center Healthcare Three Months Ended Revenue: Rental, parking and tenant reimbursement revenue $ 25,879 $ 18,071 $ 43,950 Expenses: Rental and parking expenses (7,200 ) (2,502 ) (9,702 ) Segment net operating income $ 18,679 $ 15,569 34,248 Expenses: General and administrative expenses (1,339 ) Asset management fees (3,233 ) Depreciation and amortization (14,282 ) Income from operations 15,394 Interest expense, net (8,208 ) Net income attributable to common stockholders $ 7,186 Data Center Healthcare Three Months Ended Revenue: Rental, parking and tenant reimbursement revenue $ 11,761 $ 15,841 $ 27,602 Expenses: Rental and parking expenses (3,027 ) (2,273 ) (5,300 ) Segment net operating income $ 8,734 $ 13,568 22,302 Expenses: General and administrative expenses (1,212 ) Asset management fees (2,351 ) Depreciation and amortization (9,025 ) Income from operations 9,714 Interest expense, net (5,073 ) Net income attributable to common stockholders $ 4,641 Data Centers Healthcare Six Months Ended Revenue: Rental, parking and tenant reimbursement revenue $ 49,600 $ 35,645 $ 85,245 Expenses: Rental and parking expenses (13,137 ) (4,855 ) (17,992 ) Segment net operating income $ 36,463 $ 30,790 67,253 Expenses: General and administrative expenses (2,282 ) Asset management fees (6,332 ) Depreciation and amortization (27,999 ) Income from operations 30,640 Interest expense, net (15,950 ) Net income attributable to common stockholders $ 14,690 Data Centers Healthcare Six Months Ended Revenue: Rental, parking and tenant reimbursement revenue $ 21,465 $ 30,159 $ 51,624 Expenses: Rental and parking expenses (5,687 ) (4,539 ) (10,226 ) Segment net operating income $ 15,778 $ 25,620 41,398 Expenses: General and administrative expenses (2,137 ) Asset management fees (4,357 ) Depreciation and amortization (16,635 ) Income from operations 18,269 Interest expense, net (8,837 ) Net income attributable to common stockholders $ 9,432 |
Schedule of Assets by Reportable Segments | Assets by each reportable segment as of June 30, 2018 and December 31, 2017 are as follows (amounts in thousands): June 30, 2018 December 31, 2017 Assets by segment: Data centers $ 1,003,283 $ 909,477 Healthcare 829,305 813,742 All other 69,176 54,725 Total assets $ 1,901,764 $ 1,777,944 |
Schedule of Capital Additions and Acquisitions by Reportable Segments | Capital additions and acquisitions by reportable segments for the six months ended June 30, 2018 and 2017 are as follows (amounts in thousands): Six Months Ended 2018 2017 Capital additions and acquisitions by segment: Data centers $ 103,865 $ 308,931 Healthcare 35,096 110,374 Total capital additions and acquisitions $ 138,961 $ 419,305 |
Future Minimum Rent (Tables)
Future Minimum Rent (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Income from Non-Cancelable Operating Leases | The future minimum rent to be received from the Company’s investment in real estate assets under non-cancelable operating leases, including optional renewal periods for which exercise is reasonably assured, for the six months ending December 31, 2018 and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands): Year Amount Six months ending December 31, 2018 $ 66,563 2019 135,011 2020 134,630 2021 136,763 2022 132,149 Thereafter 1,026,775 $ 1,631,891 |
Schedule of Future Minimum Rental Payments Under Non-Cancelable Ground Leases | The future minimum rent obligations under non-cancelable ground leases for the six months ending December 31, 2018 and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands): Year Amount Six months ending December 31, 2018 $ 66 2019 132 2020 132 2021 132 2022 132 Thereafter 3,142 $ 3,736 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables show the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 (amounts in thousands): June 30, 2018 Fair Value Hierarchy Quoted Prices in Active Significant Other Significant Total Fair Assets: Derivative assets $ — $ 10,228 $ — $ 10,228 Total assets at fair value $ — $ 10,228 $ — $ 10,228 December 31, 2017 Fair Value Hierarchy Quoted Prices in Active Significant Other Significant Total Fair Assets: Derivative assets $ — $ 3,934 $ — $ 3,934 Total assets at fair value $ — $ 3,934 $ — $ 3,934 Liabilities: Derivative liabilities $ — $ 22 $ — $ 22 Total liabilities at fair value $ — $ 22 $ — $ 22 |
Derivative Instruments and He37
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of the Notional Amount and Fair Value of Derivative Instruments | The following table summarizes the notional amount and fair value of the Company’s derivative instruments (amounts in thousands): Derivatives Balance Effective Maturity June 30, 2018 December 31, 2017 Outstanding Fair Value of Outstanding Fair Value of Asset (Liability) Asset (Liability) Interest rate swaps Other assets, net/Accounts 07/01/2016 to 12/22/2020 to $ 347,570 $ 10,228 $ — $ 347,699 $ 3,934 $ (22 ) |
Schedule of Income (Loss) Recognized on Derivative Instruments | The table below summarizes the amount of income (loss) recognized on the interest rate derivatives designated as cash flow hedges for the three and six months ended June 30, 2018 and 2017 (amounts in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Income (Loss) Recognized Location of Income (Loss) Amount of Income (Loss) Three Months Ended June 30, 2018 Interest rate swaps $ 1,971 Interest expense, net $ 153 Total $ 1,971 $ 153 Three Months Ended June 30, 2017 Interest rate swaps $ (1,048 ) Interest expense, net $ (342 ) Total $ (1,048 ) $ (342 ) Six Months Ended June 30, 2018 Interest rate swaps $ 6,417 Interest expense, net $ 24 Total $ 6,417 $ 24 Six Months Ended June 30, 2017 Interest rate swaps $ (635 ) Interest expense, net $ (697 ) Total $ (635 ) $ (697 ) |
Schedule of Offsetting of Derivative Assets | The following tables present the effect on the Company’s financial position had the Company made the election to offset its derivative positions as of June 30, 2018 and December 31, 2017 (amounts in thousands): Offsetting of Derivative Assets Gross Amounts Not Offset in the Balance Sheet Gross Gross Amounts Net Amounts of Financial Instruments Cash Collateral Net June 30, 2018 $ 10,228 $ — $ 10,228 $ — $ — $ 10,228 December 31, 2017 $ 3,934 $ — $ 3,934 $ — $ — $ 3,934 |
Schedule of Offsetting of Derivative Liabilities | Offsetting of Derivative Liabilities Gross Amounts Not Offset in the Balance Sheet Gross Gross Amounts Net Amounts of Financial Instruments Cash Collateral Net December 31, 2017 $ 22 $ — $ 22 $ — $ — $ 22 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income | The following table presents a rollforward of amounts recognized in accumulated other comprehensive income by component for the six months ended June 30, 2018 and 2017 (amounts in thousands): Unrealized Income on Derivative Accumulated Other Balance as of December 31, 2017 $ 3,710 $ 3,710 Other comprehensive income before reclassification 6,417 6,417 Amount of gain reclassified from accumulated other comprehensive income to net income (effective portion) (24 ) (24 ) Other comprehensive income 6,393 6,393 Balance as of June 30, 2018 $ 10,103 $ 10,103 Unrealized Income on Derivative Accumulated Other Balance as of December 31, 2016 $ 840 $ 840 Other comprehensive loss before reclassification (635 ) (635 ) Amount of loss reclassified from accumulated other comprehensive income to net income (effective portion) 697 697 Other comprehensive income 62 62 Balance as of June 30, 2017 $ 902 $ 902 |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income | The following table presents reclassifications out of accumulated other comprehensive income for the six months ended June 30, 2018 and 2017 (amounts in thousands): Details about Accumulated Other Amounts Reclassified from Affected Line Items in the Condensed Consolidated Statements of Comprehensive Income Six Months Ended 2018 2017 Interest rate swap contracts $ (24 ) $ 697 Interest expense, net |
Organization and Business Ope39
Organization and Business Operations (Details) | Jun. 30, 2018USD ($)real_estate_investmentproperty$ / sharesshares | Nov. 24, 2017USD ($)shares | Jun. 30, 2018USD ($)real_estate_investmentproperty$ / sharesshares |
Organization and Business Operations [Line Items] | |||
Repurchase of common stock | $ 22,980,000 | ||
Selling commissions and dealer manager fees | 3,229,000 | ||
Other offering costs | $ 2,291,000 | ||
Number of Company owned real estate investments | real_estate_investment | 57 | 57 | |
Number of Company owned properties | property | 75 | 75 | |
Common Stock [Member] | |||
Organization and Business Operations [Line Items] | |||
Repurchase of common stock | $ 25,000 | ||
Class A, I and T shares [Member] | Common Stock [Member] | |||
Organization and Business Operations [Line Items] | |||
Repurchase of common stock | 22,980,000 | ||
Initial Offering [Member] | |||
Organization and Business Operations [Line Items] | |||
Common stock offering including DRIP, value | $ 2,350,000,000 | ||
Common stock offering, value | 2,250,000,000 | ||
Common stock offering pursuant to DRIP, value | $ 100,000,000 | ||
Initial Offering [Member] | Class A, I and T shares [Member] | |||
Organization and Business Operations [Line Items] | |||
Common stock offering including DRIP, shares issued | shares | 125,095,000 | ||
Common stock offering including DRIP, gross proceeds raised | $ 1,223,803,000 | ||
DRIP Offering [Member] | |||
Organization and Business Operations [Line Items] | |||
Common stock offering pursuant to DRIP, value | $ 100,000,000 | $ 100,000,000 | |
Common stock offering pursuant to DRIP, shares registered | shares | 10,893,246 | 10,893,246 | |
Follow-On Offering [Member] | |||
Organization and Business Operations [Line Items] | |||
Common stock offering, value | $ 1,000,000,000 | $ 1,000,000,000 | |
Follow-On Offering [Member] | Class A shares [Member] | |||
Organization and Business Operations [Line Items] | |||
Common stock offering, price per share (in dollars per share) | $ / shares | $ 10.200 | $ 10.200 | |
Follow-On Offering [Member] | Class I shares [Member] | |||
Organization and Business Operations [Line Items] | |||
Common stock offering, price per share (in dollars per share) | $ / shares | 9.273 | 9.273 | |
Follow-On Offering [Member] | Class T2 shares [Member] | |||
Organization and Business Operations [Line Items] | |||
Common stock offering, price per share (in dollars per share) | $ / shares | $ 9.714 | $ 9.714 | |
the Offerings [Member] | |||
Organization and Business Operations [Line Items] | |||
Repurchase of common stock | $ 43,564,000 | ||
Selling commissions and dealer manager fees | 95,127,000 | ||
Other offering costs | $ 25,648,000 | ||
the Offerings [Member] | Class A, I, T and T2 shares [Member] | Common Stock [Member] | |||
Organization and Business Operations [Line Items] | |||
Common stock offering including DRIP, shares issued | shares | 135,810,000 | ||
Common stock offering including DRIP, gross proceeds raised | $ 1,325,781,000 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($)metropolitantenantshares | Jun. 30, 2017shares | Jun. 30, 2018USD ($)metropolitantenant$ / sharesshares | Jun. 30, 2017USD ($)$ / sharesshares | |
Summary of Significant Accounting Policies [Line Items] | ||||
Number of metropolitan statistical areas in which Company owns rental property | metropolitan | 38 | 38 | ||
Maximum number of shares available for repurchase during any calendar year, as percentage of common stock outstanding at end of prior year | 5.00% | |||
Period of notice required for changes to share repurchase program | 30 days | |||
Repurchase of common stock | $ | $ 22,980,000 | |||
Diluted earnings per share outstanding adjustment (in shares) | 22,000 | 15,000 | 22,000 | 16,000 |
Allowances for doubtful accounts | $ | $ 0 | $ 0 | ||
Common Stock [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Repurchase of common stock (in shares) | 2,503,302 | |||
Repurchase of common stock | $ | $ 25,000 | |||
Class A, I and T shares [Member] | Common Stock [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Repurchase of common stock (in shares) | 2,503,302 | |||
Repurchase of common stock | $ | $ 22,980,000 | |||
Repurchase of common stock, average price per share (in dollars per share) | $ / shares | $ 9.18 | |||
Class A and T shares [Member] | Common Stock [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Repurchase of common stock (in shares) | 532,599 | |||
Repurchase of common stock | $ | $ 4,830,000 | |||
Repurchase of common stock, average price per share (in dollars per share) | $ / shares | $ 9.07 | |||
Class A shares [Member] | Common Stock [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Repurchase of common stock (in shares) | 2,212,017 | 519,091 | ||
Class I shares [Member] | Common Stock [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Repurchase of common stock (in shares) | 21,085 | |||
Class T shares [Member] | Common Stock [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Repurchase of common stock (in shares) | 270,200 | 13,508 | ||
Rental Revenue [Member] | Geographic Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Number of metropolitan statistical areas in which Company owns rental property | metropolitan | 2 | 2 | ||
Rental Revenue [Member] | Geographic Concentration Risk [Member] | Atlanta-Sandy Springs-Roswell, Georgia MSA [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 17.70% | |||
Rental Revenue [Member] | Geographic Concentration Risk [Member] | Houston-The Woodlands-Sugar Land, Texas MSA [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 10.00% | |||
Rental Revenue [Member] | Customer Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Number of tenants | tenant | 0 | 0 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Reconciliation of Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 73,241 | $ 74,803 | $ 74,350 | $ 50,446 |
Restricted cash | 15,654 | 10,944 | 14,018 | 6,463 |
Cash, cash equivalents and restricted cash | $ 88,895 | $ 85,747 | $ 88,368 | $ 56,909 |
Real Estate Investments (Narrat
Real Estate Investments (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($)real_estate_investmentproperty | |
Real Estate Properties [Line Items] | ||
Number of real estate investments purchased | real_estate_investment | 4 | |
Number of real estate properties purchased | property | 5 | |
Acquisition fees and expenses capitalized | $ | $ 1,882 | $ 3,009 |
Maximum [Member] | ||
Real Estate Properties [Line Items] | ||
Acquisition fee and expense reimbursement, as percentage of purchase price of properties | 6.00% | 6.00% |
Real Estate Investments (Schedu
Real Estate Investments (Schedule of Consideration Transferred for Properties Acquired) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)property | Jun. 30, 2017USD ($) | |
Asset Acquisitions [Line Items] | ||
Purchase Price | $ 126,908 | $ 405,569 |
Number of Company owned properties | property | 75 | |
Rancho Cordova Data Center Portfolio [Member] | ||
Asset Acquisitions [Line Items] | ||
Date Acquired | Mar. 14, 2018 | |
Ownership Percentage | 100.00% | |
Purchase Price | $ 52,087 | |
Number of Company owned properties | property | 2 | |
Carrollton Healthcare Facility [Member] | ||
Asset Acquisitions [Line Items] | ||
Date Acquired | Apr. 27, 2018 | |
Ownership Percentage | 100.00% | |
Purchase Price | $ 8,699 | |
Oceans Katy Behavioral Health Hospital [Member] | ||
Asset Acquisitions [Line Items] | ||
Date Acquired | Jun. 8, 2018 | |
Ownership Percentage | 100.00% | |
Purchase Price | $ 15,715 | |
San Jose Data Center [Member] | ||
Asset Acquisitions [Line Items] | ||
Date Acquired | Jun. 13, 2018 | |
Ownership Percentage | 100.00% | |
Purchase Price | $ 50,407 |
Real Estate Investments (Sche44
Real Estate Investments (Schedule of Allocation of Acquisitions) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Real Estate [Abstract] | |
Land | $ 19,347 |
Buildings and improvements | 94,654 |
In-place leases | 12,819 |
Tenant improvements | 88 |
Total assets acquired | $ 126,908 |
Acquired Intangible Assets, N45
Acquired Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Depreciation and amortization | $ 14,282 | $ 9,025 | $ 27,999 | $ 16,635 |
In-place leases, Above-market leases and Ground lease interest | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Depreciation and amortization | $ 4,947 | $ 2,845 | $ 9,641 | $ 5,203 |
Acquired Intangible Assets, N46
Acquired Intangible Assets, Net (Schedule of Acquired Intangible Assets, Net) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible asset, net of accumulated amortization | $ 153,732 | $ 150,554 |
Acquired intangible asset, accumulated amortization | $ 31,803 | $ 22,162 |
Acquired intangible asset, weighted average remaining life | 10 years 7 months 6 days | 11 years 2 months 12 days |
In-place leases [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible asset, net of accumulated amortization | $ 152,042 | $ 148,594 |
Acquired intangible asset, accumulated amortization | $ 31,147 | $ 21,776 |
Acquired intangible asset, weighted average remaining life | 10 years 4 months 24 days | 11 years |
Above-market leases [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible asset, net of accumulated amortization | $ 1,079 | $ 1,344 |
Acquired intangible asset, accumulated amortization | $ 623 | $ 358 |
Acquired intangible asset, weighted average remaining life | 2 years 3 months 18 days | 2 years 9 months 18 days |
Ground lease interest [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible asset, net of accumulated amortization | $ 611 | $ 616 |
Acquired intangible asset, accumulated amortization | $ 33 | $ 28 |
Acquired intangible asset, weighted average remaining life | 65 years 3 months 18 days | 65 years 9 months 18 days |
Intangible Lease Liabilities,47
Intangible Lease Liabilities, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Intangible Lease Liabilities, Net [Abstract] | ||||
Amortization of below-market leases | $ 1,221 | $ 252 | $ 2,442 | $ 386 |
Intangible Lease Liabilities,48
Intangible Lease Liabilities, Net (Schedule of Intangible Lease Liabilities, Net) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Intangible Lease Liabilities, Net [Abstract] | ||
Below-market leases, net of accumulated amortization of $5,202 and $2,760, respectively (with a weighted average remaining life of 18.2 years and 18.7 years, respectively) | $ 58,852 | $ 61,294 |
Below-market leases, accumulated amortization | $ 5,202 | $ 2,760 |
Below market leases, weighted average remaining life | 18 years 2 months 12 days | 18 years 8 months 12 days |
Other Assets, Net (Schedule of
Other Assets, Net (Schedule of Other Assets, Net) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Other Assets [Abstract] | ||||
Deferred financing costs, related to the revolver portion of the secured credit facility, net of accumulated amortization of $4,243 and $3,426, respectively | $ 3,348 | $ 1,850 | ||
Real estate escrow deposits | 100 | 100 | ||
Restricted cash | 15,654 | 10,944 | $ 14,018 | $ 6,463 |
Tenant receivables | 4,548 | 4,916 | ||
Straight-line rent receivable | 26,004 | 19,321 | ||
Prepaid and other assets | 7,413 | 6,117 | ||
Derivative assets | 10,228 | 3,934 | ||
Total other assets, net | 67,295 | 47,182 | ||
Deferred financing costs, related to the revolver portion of the secured credit facility, accumulated amortization | $ 4,243 | $ 3,426 |
Accounts Payable and Other Li50
Accounts Payable and Other Liabilities (Schedule of Accounts Payable and Other Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Accounts payable and accrued expenses | $ 6,434 | $ 13,220 |
Accrued interest expense | 2,725 | 2,410 |
Accrued property taxes | 3,689 | 1,532 |
Distributions payable to stockholders | 6,706 | 6,566 |
Tenant deposits | 753 | 682 |
Deferred rental income | 5,919 | 3,277 |
Derivative liabilities | 0 | 22 |
Total accounts payable and other liabilities | $ 26,226 | $ 27,709 |
Notes Payable and Secured Cre51
Notes Payable and Secured Credit Facility (Narrative) (Details) | 2 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018USD ($)extensionlender | Jun. 30, 2018USD ($)real_estate_investmentproperty | Jun. 30, 2017USD ($) | Apr. 27, 2018USD ($) | Apr. 26, 2018USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||||||
Credit facility, number of lenders added | lender | 7 | |||||
Credit facility, aggregate pool availability | $ 700,000,000 | $ 700,000,000 | $ 425,000,000 | |||
Proceeds from credit facility | $ 90,000,000 | $ 175,000,000 | ||||
Number of real estate acquisitions | real_estate_investment | 4 | |||||
Credit facility, increase in borrowing base availability | $ 94,160,000 | |||||
Credit facility, number of properties added to aggregate pool availability | property | 6 | |||||
Credit facility, aggregate pool availability | 498,584,000 | $ 498,584,000 | ||||
Credit facility, outstanding principal balance | 310,000,000 | 310,000,000 | $ 220,000,000 | |||
Credit facility, amount remaining to be drawn | $ 188,584,000 | $ 188,584,000 | ||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, basis spread on variable rate | 1.75% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, basis spread on variable rate | 2.25% | |||||
Base Rate [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, basis spread on variable rate | 0.75% | |||||
Base Rate [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, basis spread on variable rate | 1.25% | |||||
Secured Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of real estate acquisitions | real_estate_investment | 3 | |||||
Revolving Line of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, aggregate pool availability | $ 450,000,000 | $ 450,000,000 | ||||
Credit facility, maturity date | Apr. 27, 2022 | |||||
Credit facility, number of maturity extension periods | extension | 1 | |||||
Credit facility, extension period | 12 months | |||||
Credit facility, outstanding principal balance | $ 60,000,000 | 60,000,000 | $ 150,000,000 | 120,000,000 | ||
Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, aggregate pool availability | $ 250,000,000 | 250,000,000 | ||||
Credit facility, maturity date | Apr. 27, 2023 | |||||
Credit facility, outstanding principal balance | $ 250,000,000 | $ 250,000,000 | $ 150,000,000 | $ 100,000,000 |
Notes Payable and Secured Cre52
Notes Payable and Secured Credit Facility (Schedule of Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Apr. 27, 2018 | Apr. 26, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||
Notes payable, principal amount outstanding | $ 467,963 | $ 468,135 | ||
Unamortized deferred financing costs related to notes payable | (3,925) | (4,393) | ||
Notes payable, net of deferred financing costs | 464,038 | 463,742 | ||
Secured credit facility, principal amount outstanding | 310,000 | 220,000 | ||
Unamortized deferred financing costs related to the term loan secured credit facility | (2,776) | (601) | ||
Secured credit facility, net of deferred financing costs | 307,224 | 219,399 | ||
Total debt outstanding | 771,262 | 683,141 | ||
Revolving Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured credit facility, principal amount outstanding | 60,000 | $ 150,000 | 120,000 | |
Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured credit facility, principal amount outstanding | 250,000 | $ 150,000 | 100,000 | |
Fixed Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable, principal amount outstanding | 220,393 | 220,436 | ||
Variable Rate, Subject To Interest Rate Swap [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable, principal amount outstanding | 247,570 | 247,699 | ||
Secured credit facility, principal amount outstanding | $ 100,000 | $ 100,000 |
Notes Payable and Secured Cre53
Notes Payable and Secured Credit Facility (Schedule of Future Principal Payments Due on Notes Payable and Secured Credit Facility) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Debt Disclosure [Abstract] | |
Six months ending December 31, 2018 | $ 227 |
2,019 | 1,970 |
2,020 | 4,535 |
2,021 | 155,118 |
2,022 | 224,971 |
Thereafter | 391,142 |
Total | $ 777,963 |
Related-Party Transactions an54
Related-Party Transactions and Arrangements (Narrative) (Details) - USD ($) | Jun. 30, 2018 | Mar. 14, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | |||||||
Accounts payable due to affiliates | $ 14,445,000 | $ 14,445,000 | $ 14,445,000 | $ 15,249,000 | |||
Asset management fees | 3,233,000 | $ 2,351,000 | $ 6,332,000 | $ 4,357,000 | |||
Cumulative, pretax, non-compounded annual return rate to investors | 6.00% | ||||||
Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Offering costs incurred by Advisor on Company's behalf | 19,024,000 | 19,024,000 | $ 19,024,000 | ||||
Other offering costs reimbursed | 18,212,000 | 18,212,000 | 18,212,000 | ||||
Acquisition fees incurred | 1,459,000 | 4,873,000 | $ 2,478,000 | 7,956,000 | |||
Maximum brokerage fees paid by Company, as percentage of contract sales price | 6.00% | ||||||
Disposition fees incurred | 0 | ||||||
Percentage of remaining net sales proceeds Advisor will receive after investors receive return | 15.00% | ||||||
Subordinated participation in net sale proceeds | 0 | ||||||
Listing fee, percentage | 15.00% | ||||||
Subordinated incentive listing fees | 0 | ||||||
Distribution percentage upon termination of Advisory agreement | 15.00% | ||||||
Subordinated termination fee | 0 | ||||||
Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | Maximum [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Disposition fee, as percentage of contract sales price | 1.00% | ||||||
Percentage of brokerage commission paid by Company for properties sold that required a substantial amount of services | 50.00% | ||||||
Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | Offering Costs [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Accounts payable due to affiliates | 290,000 | 290,000 | $ 290,000 | $ 167,000 | |||
Affiliate of Dealer Manager [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Offering costs incurred by Advisor on Company's behalf | $ 522,000 | 522,000 | $ 522,000 | ||||
Carter Validus Real Estate Management Services II, LLC [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Property management and leasing fees, as percentage of gross revenues from properties managed | 3.00% | ||||||
Oversight fee, as percentage of gross revenues from properties managed | 1.00% | ||||||
Property management fees incurred | 1,128,000 | 738,000 | $ 2,165,000 | 1,409,000 | |||
Leasing commissions incurred | 431,000 | 0 | $ 431,000 | 23,000 | |||
Construction management fee, as percentage of project costs | 5.00% | ||||||
Construction management fees | 62,000 | 244,000 | $ 173,000 | 403,000 | |||
Carter Validus Advisors II, LLC [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Acquisition fee, as percentage of contract purchase price of each property or asset acquired | 2.00% | ||||||
Estimated acquisition expense reimbursement, as percentage of purchase price of property and real estate-related investments | 0.75% | ||||||
Monthly asset management fee, as percentage of aggregate asset value | 0.0625% | ||||||
Asset management fees | 3,233,000 | 2,351,000 | $ 6,332,000 | 4,357,000 | |||
Operating expenses allocated to the Company by the advisor | 385,000 | 482,000 | $ 697,000 | 847,000 | |||
Carter Validus Advisors II, LLC [Member] | Maximum [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Operating expense reimbursement, percentage of average invested assets | 2.00% | ||||||
Operating expense reimbursement, percentage of net income | 25.00% | ||||||
SC Distributors, LLC [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Selling commissions and dealer manager fees | 1,540,000 | 5,313,000 | $ 3,229,000 | 10,258,000 | |||
Distribution and servicing fees incurred | 320,000 | $ 2,810,000 | $ 694,000 | $ 4,459,000 | |||
SC Distributors, LLC [Member] | Class A shares [Member] | Maximum [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Selling commission, as percentage of gross offering proceeds | 7.00% | ||||||
Dealer manager fee, as percentage of gross offering proceeds | 3.00% | ||||||
SC Distributors, LLC [Member] | Class I shares [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Dealer manager fee, as percentage of gross offering proceeds | 1.00% | ||||||
SC Distributors, LLC [Member] | Class I shares [Member] | Maximum [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Dealer manager fee, as percentage of gross offering proceeds | 2.00% | ||||||
Dealer manager fee funded by advisor, as percentage of gross offering proceeds | 1.00% | ||||||
SC Distributors, LLC [Member] | Class T shares [Member] | Maximum [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Selling commission, as percentage of gross offering proceeds | 3.00% | ||||||
Dealer manager fee, as percentage of gross offering proceeds | 3.00% | ||||||
SC Distributors, LLC [Member] | Class T2 shares [Member] | Maximum [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Selling commission, as percentage of gross offering proceeds | 3.00% | ||||||
Dealer manager fee, as percentage of gross offering proceeds | 2.50% | ||||||
Vice President of Product Management of Carter Validus Advisors II, LLC [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Operating expenses allocated to the Company by the advisor | $ 28,000 | $ 69,000 | |||||
Initial Public Offering and Follow-On Offering [Member] | Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | Maximum [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Reimbursable organization and offering costs, as percentage of gross offering proceeds | 15.00% | ||||||
Initial Offering [Member] | Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Other organization and offering costs reimbursement, as percentage of gross offering proceeds | 2.00% | ||||||
Follow-On Offering [Member] | Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Estimated organization and offering costs reimbursement, as percentage of gross offering proceeds | 2.00% |
Related-Party Transactions an55
Related-Party Transactions and Arrangements (Schedule of Accounts Payable Due to Affiliates) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | $ 14,445 | $ 15,249 |
Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | Asset Management Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | 1,104 | 1,017 |
Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | General And Administrative Costs [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | 147 | 182 |
Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | Offering Costs [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | 290 | 167 |
Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | Acquisition Expenses and Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | 0 | 5 |
Carter Validus Real Estate Management Services II, LLC [Member] | Property Management Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | 527 | 463 |
Carter Validus Real Estate Management Services II, LLC [Member] | Construction Management Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | 29 | 39 |
Carter Validus Real Estate Management Services II, LLC [Member] | Leasing Commissions [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | 7 | 0 |
SC Distributors, LLC [Member] | Distribution and Servicing Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | $ 12,341 | $ 13,376 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)segment | Jun. 30, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable business segments | segment | 2 | |||
Revenues | $ 43,950,000 | $ 27,602,000 | $ 85,245,000 | $ 51,624,000 |
Intersegment Elimination [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Information for Reportable Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Rental, parking and tenant reimbursement revenue | $ 43,950 | $ 27,602 | $ 85,245 | $ 51,624 |
Rental and parking expenses | (9,702) | (5,300) | (17,992) | (10,226) |
Income from operations | 15,394 | 9,714 | 30,640 | 18,269 |
General and administrative expenses | (1,339) | (1,212) | (2,282) | (2,137) |
Asset management fees | (3,233) | (2,351) | (6,332) | (4,357) |
Depreciation and amortization | (14,282) | (9,025) | (27,999) | (16,635) |
Interest expense, net | (8,208) | (5,073) | (15,950) | (8,837) |
Net income attributable to common stockholders | 7,186 | 4,641 | 14,690 | 9,432 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Rental, parking and tenant reimbursement revenue | 43,950 | 27,602 | 85,245 | 51,624 |
Rental and parking expenses | (9,702) | (5,300) | (17,992) | (10,226) |
Income from operations | 34,248 | 22,302 | 67,253 | 41,398 |
Operating Segments [Member] | Data Centers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Rental, parking and tenant reimbursement revenue | 25,879 | 11,761 | 49,600 | 21,465 |
Rental and parking expenses | (7,200) | (3,027) | (13,137) | (5,687) |
Income from operations | 18,679 | 8,734 | 36,463 | 15,778 |
Operating Segments [Member] | Healthcare [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Rental, parking and tenant reimbursement revenue | 18,071 | 15,841 | 35,645 | 30,159 |
Rental and parking expenses | (2,502) | (2,273) | (4,855) | (4,539) |
Income from operations | $ 15,569 | $ 13,568 | $ 30,790 | $ 25,620 |
Segment Reporting (Schedule o58
Segment Reporting (Schedule of Assets by Reportable Segments) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets by segment [Line Items] | ||
Total assets | $ 1,901,764 | $ 1,777,944 |
Operating Segments [Member] | Data Centers [Member] | ||
Assets by segment [Line Items] | ||
Total assets | 1,003,283 | 909,477 |
Operating Segments [Member] | Healthcare [Member] | ||
Assets by segment [Line Items] | ||
Total assets | 829,305 | 813,742 |
All Other [Member] | ||
Assets by segment [Line Items] | ||
Total assets | $ 69,176 | $ 54,725 |
Segment Reporting (Schedule o59
Segment Reporting (Schedule of Capital Additions and Acquisitions by Reportable Segments) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Capital additions and acquisitions by segment [Line Items] | ||
Total capital additions and acquisitions | $ 138,961 | $ 419,305 |
Operating Segments [Member] | Data Centers [Member] | ||
Capital additions and acquisitions by segment [Line Items] | ||
Total capital additions and acquisitions | 103,865 | 308,931 |
Operating Segments [Member] | Healthcare [Member] | ||
Capital additions and acquisitions by segment [Line Items] | ||
Total capital additions and acquisitions | $ 35,096 | $ 110,374 |
Future Minimum Rent (Schedule o
Future Minimum Rent (Schedule of Future Minimum Rental Income from Non-Cancelable Operating Leases) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Leases [Abstract] | |
Six months ending December 31, 2018 | $ 66,563 |
2,019 | 135,011 |
2,020 | 134,630 |
2,021 | 136,763 |
2,022 | 132,149 |
Thereafter | 1,026,775 |
Total | $ 1,631,891 |
Future Minimum Rent (Schedule61
Future Minimum Rent (Schedule of Future Minimum Rental Payments Under Non-Cancelable Ground Leases) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Leases [Abstract] | |
Six months ending December 31, 2018 | $ 66 |
2,019 | 132 |
2,020 | 132 |
2,021 | 132 |
2,022 | 132 |
Thereafter | 3,142 |
Total | $ 3,736 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value [Line Items] | ||
Notes payable, principal amount outstanding | $ 467,963 | $ 468,135 |
Secured credit facility, principal amount outstanding | 310,000 | 220,000 |
Fixed Rate [Member] | ||
Fair Value [Line Items] | ||
Notes payable, principal amount outstanding | 220,393 | 220,436 |
Variable Rate, Subject To Interest Rate Swap [Member] | ||
Fair Value [Line Items] | ||
Notes payable, principal amount outstanding | 247,570 | 247,699 |
Secured credit facility, principal amount outstanding | 100,000 | 100,000 |
Variable Rate [Member] | ||
Fair Value [Line Items] | ||
Secured credit facility, principal amount outstanding | 210,000 | 120,000 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fixed Rate [Member] | ||
Fair Value [Line Items] | ||
Notes payable, fair value disclosure | 210,805 | 211,011 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Variable Rate, Subject To Interest Rate Swap [Member] | ||
Fair Value [Line Items] | ||
Notes payable, fair value disclosure | 239,119 | 243,812 |
Secured credit facility, fair value disclosure | $ 93,805 | $ 98,593 |
Fair Value (Schedule of Fair Va
Fair Value (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Derivative assets | $ 10,228 | $ 3,934 |
Liabilities: | ||
Derivative liabilities | 0 | 22 |
Recurring basis [Member] | ||
Assets: | ||
Derivative assets | 10,228 | 3,934 |
Total assets at fair value | 10,228 | 3,934 |
Liabilities: | ||
Derivative liabilities | 22 | |
Total liabilities at fair value | 22 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring basis [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | |
Total liabilities at fair value | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Recurring basis [Member] | ||
Assets: | ||
Derivative assets | 10,228 | 3,934 |
Total assets at fair value | 10,228 | 3,934 |
Liabilities: | ||
Derivative liabilities | 22 | |
Total liabilities at fair value | 22 | |
Significant Unobservable Inputs (Level 3) [Member] | Recurring basis [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Total assets at fair value | $ 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | |
Total liabilities at fair value | $ 0 |
Derivative Instruments and He64
Derivative Instruments and Hedging Activities (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Ineffectiveness of interest rate swaps | $ (38) | $ 10 | $ (77) | $ 2 |
Additional amount expected to be reclassified from AOCI into earnings during next twelve months | $ 2,228 | $ 2,228 |
Derivative Instruments and He65
Derivative Instruments and Hedging Activities (Schedule of the Notional Amount and Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | ||
Fair Value of Asset | $ 10,228 | $ 3,934 |
Fair Value of (Liability) | (22) | |
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional Amount | $ 347,570 | 347,699 |
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Minimum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Effective Date | Jul. 1, 2016 | |
Maturity Date | Dec. 22, 2020 | |
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Maximum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Effective Date | Nov. 16, 2017 | |
Maturity Date | Nov. 16, 2022 | |
Other Assets [Member] | Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Asset | $ 10,228 | 3,934 |
Accounts Payable and Other Liabilities [Member] | Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of (Liability) | $ 0 | $ (22) |
Derivative Instruments and He66
Derivative Instruments and Hedging Activities (Schedule of Income (Loss) Recognized on Derivative Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Income (Loss) Recognized in OCI on Derivative (Effective Portion) | $ 1,971 | $ (1,048) | $ 6,417 | $ (635) |
Amount of Income (Loss) Reclassified From Accumulated Other Comprehensive Income to Net Income (Effective Portion) | 153 | (342) | 24 | (697) |
Interest Rate Swaps [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Income (Loss) Recognized in OCI on Derivative (Effective Portion) | 1,971 | (1,048) | 6,417 | (635) |
Interest Rate Swaps [Member] | Interest Expense, Net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Income (Loss) Reclassified From Accumulated Other Comprehensive Income to Net Income (Effective Portion) | $ 153 | $ (342) | $ 24 | $ (697) |
Derivative Instruments and He67
Derivative Instruments and Hedging Activities (Schedule of Offsetting of Derivative Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross Amounts of Recognized Assets | $ 10,228 | $ 3,934 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Balance Sheet | 10,228 | 3,934 |
Gross Amounts Not Offset in the Balance Sheet, Financial Instruments Collateral | 0 | 0 |
Gross Amounts Not Offset in the Balance Sheet, Cash Collateral | 0 | 0 |
Net Amount | $ 10,228 | $ 3,934 |
Derivative Instruments and He68
Derivative Instruments and Hedging Activities (Schedule of Offsetting of Derivative Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross Amounts of Recognized Liabilities | $ 22 | |
Gross Amounts Offset in the Balance Sheet | 0 | |
Net Amounts of Liabilities Presented in the Balance Sheet | $ 0 | 22 |
Gross Amounts Not Offset in the Balance Sheet, Financial Instruments Collateral | 0 | |
Gross Amounts Not Offset in the Balance Sheet, Cash Collateral | 0 | |
Net Amount | $ 22 |
Accumulated Other Comprehensi69
Accumulated Other Comprehensive Income (Schedule of Amounts Recognized in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 990,549 | |||
Other comprehensive income (loss) attributable to common stockholders | $ 1,818 | $ (706) | 6,393 | $ 62 |
Ending Balance | 1,030,977 | 1,030,977 | ||
Unrealized Income on Derivative Instruments [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 3,710 | 840 | ||
Other comprehensive income (loss) before reclassification | 6,417 | (635) | ||
Amount of (gain) loss reclassified from accumulated other comprehensive income to net income (effective portion) | (24) | 697 | ||
Other comprehensive income (loss) attributable to common stockholders | 6,393 | 62 | ||
Ending Balance | 10,103 | 902 | 10,103 | 902 |
Accumulated Other Comprehensive Income [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 3,710 | 840 | ||
Other comprehensive income (loss) before reclassification | 6,417 | (635) | ||
Amount of (gain) loss reclassified from accumulated other comprehensive income to net income (effective portion) | (24) | 697 | ||
Other comprehensive income (loss) attributable to common stockholders | 6,393 | 62 | ||
Ending Balance | $ 10,103 | $ 902 | $ 10,103 | $ 902 |
Accumulated Other Comprehensi70
Accumulated Other Comprehensive Income (Schedule of Reclassifications Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense, net | $ 8,208 | $ 5,073 | $ 15,950 | $ 8,837 |
Interest Rate Swaps [Member] | Unrealized Income on Derivative Instruments [Member] | Amounts Reclassified from Accumulated Other Comprehensive Income to Net Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense, net | $ (24) | $ 697 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Jun. 30, 2018case |
Commitments and Contingencies Disclosure [Abstract] | |
Number of pending legal proceedings to which the Company is a party | 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Aug. 10, 2018 | Aug. 09, 2018 | Aug. 01, 2018 | Jul. 02, 2018 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2018 | Sep. 30, 2018 |
Subsequent Event [Line Items] | |||||||||||
Distributions paid in cash | $ 19,309 | $ 12,812 | |||||||||
Common stock issued through distribution reinvestment plan | $ 20,199 | $ 14,649 | |||||||||
Distributions declared per common share | $ 0.16 | $ 0.16 | $ 0.31 | $ 0.31 | |||||||
Maximum number of shares available for repurchase during any calendar year, as percentage of common stock outstanding at end of prior year | 5.00% | ||||||||||
Common Stock [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock issued through distribution reinvestment plan | $ 22 | ||||||||||
Class A shares [Member] | Follow-On Offering [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock offering, price per share (in dollars per share) | $ 10.200 | 10.200 | $ 10.200 | ||||||||
Class I shares [Member] | Follow-On Offering [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock offering, price per share (in dollars per share) | 9.273 | 9.273 | 9.273 | ||||||||
Class T2 shares [Member] | Follow-On Offering [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock offering, price per share (in dollars per share) | $ 9.714 | $ 9.714 | $ 9.714 | ||||||||
Class A, I, T and T2 shares [Member] | Common Stock [Member] | the Offerings [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock offering including DRIP, shares issued | 135,810 | ||||||||||
Common stock offering including DRIP, gross proceeds raised | $ 1,325,781 | ||||||||||
Subsequent Event [Member] | Third Quarter Redemption Date [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Maximum number of shares available for repurchase, as a percentage of common stock available for repurchase | 50.00% | ||||||||||
Subsequent Event [Member] | Fourth Quarter Redemption Date [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Maximum number of shares available for repurchase, as a percentage of common stock available for repurchase | 50.00% | ||||||||||
Subsequent Event [Member] | Class A shares [Member] | Common Stock [Member] | the Offerings [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock offering including DRIP, shares issued | 87,306 | ||||||||||
Common stock offering including DRIP, gross proceeds raised | $ 863,937 | ||||||||||
Subsequent Event [Member] | Class I shares [Member] | Common Stock [Member] | the Offerings [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock offering including DRIP, shares issued | 10,485 | ||||||||||
Common stock offering including DRIP, gross proceeds raised | $ 95,986 | ||||||||||
Subsequent Event [Member] | Class T shares [Member] | Common Stock [Member] | the Offerings [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock offering including DRIP, shares issued | 38,196 | ||||||||||
Common stock offering including DRIP, gross proceeds raised | $ 366,921 | ||||||||||
Subsequent Event [Member] | Class T2 shares [Member] | Common Stock [Member] | the Offerings [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock offering including DRIP, shares issued | 1,926 | ||||||||||
Common stock offering including DRIP, gross proceeds raised | $ 18,654 | ||||||||||
Subsequent Event [Member] | Common Class A, I and T2 Shares [Member] | Common Stock [Member] | Follow-On Offering [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock offering, value remaining | 908,482 | ||||||||||
Subsequent Event [Member] | Class A, I, T and T2 shares [Member] | Common Stock [Member] | DRIP Offering [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock offering, value remaining | $ 69,750 | ||||||||||
Subsequent Event [Member] | June 1, 2018 To June 30, 2018 [Member] | Class A shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Aggregate distributions paid | $ 4,423 | ||||||||||
Distributions paid in cash | 2,296 | ||||||||||
Common stock issued through distribution reinvestment plan | 2,127 | ||||||||||
Subsequent Event [Member] | June 1, 2018 To June 30, 2018 [Member] | Class I shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Aggregate distributions paid | 511 | ||||||||||
Distributions paid in cash | 295 | ||||||||||
Common stock issued through distribution reinvestment plan | 216 | ||||||||||
Subsequent Event [Member] | June 1, 2018 To June 30, 2018 [Member] | Class T shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Aggregate distributions paid | 1,717 | ||||||||||
Distributions paid in cash | 734 | ||||||||||
Common stock issued through distribution reinvestment plan | 983 | ||||||||||
Subsequent Event [Member] | June 1, 2018 To June 30, 2018 [Member] | Class T2 shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Aggregate distributions paid | 55 | ||||||||||
Distributions paid in cash | 18 | ||||||||||
Common stock issued through distribution reinvestment plan | $ 37 | ||||||||||
Subsequent Event [Member] | July 1, 2018 To July 31, 2018 [Member] | Class A shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Aggregate distributions paid | $ 4,556 | ||||||||||
Distributions paid in cash | 2,372 | ||||||||||
Common stock issued through distribution reinvestment plan | 2,184 | ||||||||||
Subsequent Event [Member] | July 1, 2018 To July 31, 2018 [Member] | Class I shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Aggregate distributions paid | 559 | ||||||||||
Distributions paid in cash | 326 | ||||||||||
Common stock issued through distribution reinvestment plan | 233 | ||||||||||
Subsequent Event [Member] | July 1, 2018 To July 31, 2018 [Member] | Class T shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Aggregate distributions paid | 1,777 | ||||||||||
Distributions paid in cash | 763 | ||||||||||
Common stock issued through distribution reinvestment plan | 1,014 | ||||||||||
Subsequent Event [Member] | July 1, 2018 To July 31, 2018 [Member] | Class T2 shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Aggregate distributions paid | 73 | ||||||||||
Distributions paid in cash | 27 | ||||||||||
Common stock issued through distribution reinvestment plan | $ 46 | ||||||||||
Subsequent Event [Member] | September 1, 2018 To November 30, 2018 [Member] | Class A shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of days, distribution calculation | 365 days | ||||||||||
Distributions declared per common share | $ 0.001788493 | ||||||||||
Annualized distribution rate | 6.40% | ||||||||||
Common stock offering, price per share (in dollars per share) | $ 10.200 | ||||||||||
Subsequent Event [Member] | September 1, 2018 To November 30, 2018 [Member] | Class I shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of days, distribution calculation | 365 days | ||||||||||
Distributions declared per common share | $ 0.001788493 | ||||||||||
Annualized distribution rate | 7.04% | ||||||||||
Common stock offering, price per share (in dollars per share) | $ 9.273 | ||||||||||
Subsequent Event [Member] | September 1, 2018 To November 30, 2018 [Member] | Class T shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of days, distribution calculation | 365 days | ||||||||||
Distributions declared per common share | $ 0.001519750 | ||||||||||
Annualized distribution rate | 5.68% | ||||||||||
Common stock offering, price per share (in dollars per share) | $ 9.766 | ||||||||||
Subsequent Event [Member] | September 1, 2018 To November 30, 2018 [Member] | Class T2 shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of days, distribution calculation | 365 days | ||||||||||
Distributions declared per common share | $ 0.001522356 | ||||||||||
Annualized distribution rate | 5.72% | ||||||||||
Common stock offering, price per share (in dollars per share) | $ 9.714 |