Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | AHH | |
Entity Registrant Name | ARMADA HOFFLER PROPERTIES, INC. | |
Entity Central Index Key | 1,569,187 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 26,520,311 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Real estate investments: | ||
Income producing property | $ 649,029 | $ 513,918 |
Held for development | 1,180 | |
Construction in progress | 35,407 | 81,082 |
Gross real estate investments | 685,616 | 595,000 |
Accumulated depreciation | (129,996) | (116,099) |
Net real estate investments | 555,620 | 478,901 |
Real estate investments held for sale | 8,538 | |
Cash and cash equivalents | 15,191 | 25,883 |
Restricted cash | 4,243 | 4,224 |
Accounts receivable, net | 22,006 | 20,548 |
Construction receivables, including retentions | 48,097 | 19,432 |
Construction contract costs and estimated earnings in excess of billings | 289 | 272 |
Other assets | 48,647 | 33,108 |
Total Assets | 694,093 | 590,906 |
LIABILITIES AND EQUITY | ||
Indebtedness | 420,145 | 359,229 |
Accounts payable and accrued liabilities | 6,278 | 8,358 |
Construction payables, including retentions | 54,159 | 42,399 |
Billings in excess of construction contract costs and estimated earnings | 2,512 | 1,053 |
Other liabilities | 25,350 | 17,961 |
Total Liabilities | 508,444 | 429,000 |
Stockholders' equity: | ||
Common stock, $0.01 par value, 500,000,000 shares authorized, 26,260,685 and 25,022,701 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively | 262 | 250 |
Additional paid-in capital | 64,027 | 51,472 |
Distributions in excess of earnings | (53,225) | (54,413) |
Accumulated other comprehensive loss | (972) | |
Total stockholders' equity (deficit) | 10,092 | (2,691) |
Noncontrolling interests | 175,557 | 164,597 |
Total Equity | 185,649 | 161,906 |
Total Liabilities and Equity | $ 694,093 | $ 590,906 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 26,260,685 | 25,022,701 |
Common stock, shares outstanding | 26,260,685 | 25,022,701 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues | ||||
Rental revenues | $ 21,303 | $ 16,713 | $ 59,401 | $ 47,225 |
General contracting and real estate services revenues | 53,822 | 31,532 | 129,959 | 71,261 |
Total revenues | 75,125 | 48,245 | 189,360 | 118,486 |
Expenses | ||||
Rental expenses | 4,865 | 4,414 | 14,256 | 12,230 |
Real estate taxes | 2,056 | 1,480 | 5,672 | 4,231 |
General contracting and real estate services expenses | 51,716 | 30,468 | 125,141 | 67,807 |
Depreciation and amortization | 6,317 | 4,567 | 16,991 | 12,593 |
General and administrative expenses | 1,873 | 1,741 | 6,297 | 5,768 |
Acquisition, development and other pursuit costs | 288 | 174 | 1,050 | 174 |
Impairment charges | 15 | 23 | 15 | |
Total expenses | 67,115 | 42,859 | 169,430 | 102,818 |
Operating income | 8,010 | 5,386 | 19,930 | 15,668 |
Interest expense | (3,518) | (2,734) | (9,922) | (7,977) |
Loss on extinguishment of debt | (3) | (410) | ||
Gain on real estate dispositions | 13,407 | |||
Other income (loss) | (34) | 59 | (182) | (23) |
Income before taxes | 4,455 | 2,711 | 22,823 | 7,668 |
Income tax benefit (provision) | (118) | 43 | (83) | (135) |
Net income | 4,337 | 2,754 | 22,740 | 7,533 |
Net income attributable to noncontrolling interests | (1,649) | (1,139) | (8,426) | (3,128) |
Net income attributable to stockholders | $ 2,688 | $ 1,615 | $ 14,314 | $ 4,405 |
Net income per share and unit: | ||||
Basic and diluted | $ 0.10 | $ 0.08 | $ 0.56 | $ 0.23 |
Weighted average outstanding: | ||||
Common shares | 25,958 | 20,266 | 25,532 | 19,574 |
Operating partnership units | 15,919 | 14,291 | 15,159 | 13,905 |
Basic and diluted | 41,877 | 34,557 | 40,691 | 33,479 |
Dividends declared per common share and unit | $ 0.17 | $ 0.16 | $ 0.51 | $ 0.48 |
Comprehensive income: | ||||
Net income | $ 4,337 | $ 2,754 | $ 22,740 | $ 7,533 |
Unrealized cash flow hedge losses | (1,026) | (1,574) | ||
Realized cash flow hedge losses reclassified to net income | 13 | 13 | ||
Comprehensive income | 3,324 | 2,754 | 21,179 | 7,533 |
Comprehensive income attributable to noncontrolling interests | (1,264) | (1,139) | (7,837) | (3,128) |
Comprehensive income attributable to stockholders | $ 2,060 | $ 1,615 | $ 13,342 | $ 4,405 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Equity - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Distributions in Excess of Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total Stockholders' Equity (Deficit) [Member] | Noncontrolling Interests [Member] |
Beginning balance at Dec. 31, 2014 | $ 161,906 | $ 250 | $ 51,472 | $ (54,413) | $ (2,691) | $ 164,597 | |
Beginning balance, shares at Dec. 31, 2014 | 25,022,701 | 25,022,701 | |||||
Net income | $ 22,740 | $ 14,314 | 14,314 | 8,426 | |||
Unrealized cash flow hedge losses | (1,574) | $ (980) | (980) | (594) | |||
Realized cash flow hedge losses reclassified to net income | 13 | $ 8 | 8 | 5 | |||
Net proceeds from sales of common stock | 7,366 | $ 7 | 7,359 | 7,366 | |||
Net proceeds from sales of common stock (in shares) | 747,163 | ||||||
Restricted stock awards | 764 | $ 1 | 763 | 764 | |||
Restricted stock awards (in shares) | 75,321 | ||||||
Acquisitions of real estate investments | 15,169 | $ 4 | 4,429 | 4,433 | 10,736 | ||
Acquisitions of real estate investments(in shares) | 415,500 | ||||||
Redemption of operating partnership units | $ (79) | $ 4 | $ 4 | $ (83) | |||
Redemption of operating partnership units (in shares) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Dividends and distributions declared | $ (20,656) | $ (13,126) | $ (13,126) | ||||
Dividends and distributions declared | $ (7,530) | ||||||
Ending balance at Sep. 30, 2015 | $ 185,649 | $ 262 | $ 64,027 | $ (53,225) | $ (972) | $ 10,092 | $ 175,557 |
Ending balance, shares at Sep. 30, 2015 | 26,260,685 | 26,260,685 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
OPERATING ACTIVITIES | ||
Net income | $ 22,740 | $ 7,533 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of buildings and tenant improvements | 13,998 | 10,611 |
Amortization of leasing costs and in-place lease intangibles | 2,993 | 1,982 |
Accrued straight-line rental revenue | (1,724) | (1,730) |
Amortization of leasing incentives and above or below-market rents | 564 | 461 |
Accrued straight-line ground rent expense | 224 | 236 |
Bad debt expense | 123 | 48 |
Noncash stock compensation | 755 | 720 |
Impairment charges | 23 | 15 |
Noncash interest expense | 791 | 410 |
Loss on extinguishment of debt | 410 | |
Gain on real estate dispositions | (13,407) | |
Change in the fair value of derivatives | 238 | 123 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Property assets | (2,524) | (1,932) |
Property liabilities | 2,369 | 234 |
Construction assets | (29,027) | (4,298) |
Construction liabilities | 19,078 | 6,879 |
Net cash provided by operating activities | 17,624 | 21,292 |
INVESTING ACTIVITIES | ||
Development of real estate investments | (40,293) | (77,094) |
Tenant and building improvements | (3,794) | (4,622) |
Acquisitions of real estate investments | (64,945) | (2,754) |
Dispositions of real estate investments | 50,613 | |
Government development grants | 300 | 300 |
Decrease (increase) in restricted cash | 742 | (1,713) |
Leasing costs | (1,715) | (1,524) |
Leasing incentives | (1,563) | (63) |
Net cash used for investing activities | (60,655) | (87,470) |
FINANCING ACTIVITIES | ||
Proceeds from sales of common stock | 7,687 | 49,566 |
Offering costs | (321) | (320) |
Debt issuances, credit facility and construction loan borrowings | 200,267 | 92,409 |
Debt and credit facility payments, including principal amortization | (153,321) | (61,494) |
Debt issuance costs | (1,844) | (35) |
Redemption of operating partnership units | (79) | |
Dividends and distributions | (20,050) | (15,729) |
Net cash provided by financing activities | 32,339 | 64,397 |
Net decrease in cash and cash equivalents | (10,692) | (1,781) |
Cash and cash equivalents, beginning of period | 25,883 | 18,882 |
Cash and cash equivalents, end of period | $ 15,191 | $ 17,101 |
Business and Organization
Business and Organization | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | 1. Business and Organization Armada Hoffler Properties, Inc. (the “Company”) is a full service real estate company with extensive experience developing, building, owning and managing high-quality, institutional-grade office, retail and multifamily properties in attractive markets throughout the Mid-Atlantic United States. The Company is the sole general partner of Armada Hoffler, L.P. (the “Operating Partnership”). The operations of the Company are carried on primarily through the Operating Partnership and the wholly owned subsidiaries of the Operating Partnership. Both the Company and the Operating Partnership were formed on October 12, 2012 and commenced operations upon completion of the underwritten initial public offering of shares of the Company’s common stock and certain related formation transactions on May 13, 2013. As of September 30, 2015, the Company owned 100% of the interests in each of the following properties in its operating property portfolio: Property Segment Location 4525 Main Street Office Virginia Beach, Virginia* Armada Hoffler Tower Office Virginia Beach, Virginia* Commonwealth of Virginia – Chesapeake Office Chesapeake, Virginia Commonwealth of Virginia – Virginia Beach Office Virginia Beach, Virginia Oceaneering Office Chesapeake, Virginia One Columbus Office Virginia Beach, Virginia* Oyster Point Office Newport News, Virginia Richmond Tower Office Richmond, Virginia Two Columbus Office Virginia Beach, Virginia* 249 Central Park Retail Retail Virginia Beach, Virginia* Bermuda Crossroads Retail Chester, Virginia Broad Creek Shopping Center Retail Norfolk, Virginia Columbus Village Retail Virginia Beach, Virginia* Commerce Street Retail Retail Virginia Beach, Virginia* Courthouse 7-Eleven Retail Virginia Beach, Virginia Dick’s at Town Center Retail Virginia Beach, Virginia* Dimmock Square Retail Colonial Heights, Virginia Fountain Plaza Retail Retail Virginia Beach, Virginia* Gainsborough Square Retail Chesapeake, Virginia Greentree Shopping Center Retail Chesapeake, Virginia Hanbury Village Retail Chesapeake, Virginia Harrisonburg Regal Retail Harrisonburg, Virginia North Point Center Retail Durham, North Carolina Parkway Marketplace Retail Virginia Beach, Virginia Perry Hall Marketplace Retail Perry Hall, Maryland Providence Plaza Retail Charlotte, North Carolina Sandbridge Commons Retail Virginia Beach, Virginia Socastee Commons Retail Myrtle Beach, South Carolina South Retail Retail Virginia Beach, Virginia* Stone House Square Retail Hagerstown, Maryland Studio 56 Retail Retail Virginia Beach, Virginia* Tyre Neck Harris Teeter Retail Portsmouth, Virginia Encore Apartments Multifamily Virginia Beach, Virginia* Liberty Apartments Multifamily Newport News, Virginia Smith’s Landing Multifamily Blacksburg, Virginia The Cosmopolitan Multifamily Virginia Beach, Virginia* * Located in the Town Center of Virginia Beach As of September 30, 2015, the following properties were under development or construction: Property Segment Location Lightfoot Marketplace Retail Williamsburg, Virginia Johns Hopkins Village Multifamily Baltimore, Maryland The Company owns a 60% controlling financial interest in Lightfoot Marketplace. Subject to the occurrence of certain events, the Company’s ownership interest in Lightfoot Marketplace may increase to 70%. The Company owns an 80% controlling financial interest in Johns Hopkins Village. The noncontrolling interest holder of Johns Hopkins Village has the right to exchange its 20% ownership interest for Class A units of limited partnership interest in the Operating Partnership (“Class A Units”) upon and for a period of one year after the project’s completion. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The condensed consolidated financial statements include the financial position and results of operations of the Company, the Operating Partnership and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for the fair presentation of the financial condition and results of operations for the interim periods presented. The accompanying condensed consolidated financial statements were prepared in accordance with the requirements for interim financial information. Accordingly, these interim financial statements have not been audited and exclude certain disclosures required for annual financial statements. Also, the operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These interim financial statements should be read in conjunction with the audited consolidated financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed. Such estimates are based on management’s historical experience and best judgment after considering past, current and expected events and economic conditions. Actual results could differ from management’s estimates. Significant Accounting Policies The accompanying condensed consolidated financial statements were prepared on the basis of the accounting principles described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, among others. Recent Accounting Pronouncements On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued a new standard that provides a single, comprehensive model for recognizing revenue from contracts with customers. While the new standard does not supersede the guidance on accounting for leases, it could change the way the Company recognizes revenue from construction and development contracts with third party customers. The new standard will be effective for the Company on January 1, 2018. Management is currently evaluating the potential impact of the new revenue recognition standard on the Company’s consolidated financial statements. On February 18, 2015, the FASB issued new consolidation guidance that changes: (i) the identification of variable interests, (ii) the variable interest entity (“VIE”) characteristics for a limited partnership or similar entity and (iii) primary beneficiary determination. The amended guidance also eliminates the presumption that a general partner controls a limited partnership. The amended guidance will be effective for the Company on January 1, 2016. Management is currently evaluating the potential impact of the new guidance on the Company’s consolidated financial statements. Current accounting guidance requires debt issuance costs to be presented in the balance sheet as an asset. On April 7, 2015, the FASB issued new guidance that requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount, rather than as an asset. However, with respect to line of credit arrangements, the Securities and Exchange Commission staff have stated that they would not object to the presentation of issuance costs as an asset, regardless of whether there were any outstanding borrowings under such arrangements. The new guidance will be effective for the Company on January 1, 2016 and will be applied on a retrospective basis. Management does not expect the adoption of the new guidance to have a material effect on the Company’s financial position or results of operations. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segments | 3. Segments Net operating income (segment revenues minus segment expenses) is the measure used by the Company’s chief operating decision-maker to assess segment performance. Net operating income is not a measure of operating income or cash flows from operating activities as measured by GAAP and is not indicative of cash available to fund cash needs. As a result, net operating income should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate net operating income in the same manner. The Company considers net operating income to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of the Company’s real estate and construction businesses. Net operating income of the Company’s reportable segments for the three and nine months ended September 30, 2015 and 2014 was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Unaudited) Office real estate Rental revenues $ 8,092 $ 7,295 $ 23,847 $ 20,363 Rental expenses 1,758 1,742 5,216 4,756 Real estate taxes 734 609 2,228 1,697 Segment net operating income 5,600 4,944 16,403 13,910 Retail real estate Rental revenues 8,523 6,086 22,715 17,559 Rental expenses 1,478 1,255 4,223 3,764 Real estate taxes 810 540 2,080 1,546 Segment net operating income 6,235 4,291 16,412 12,249 Multifamily residential real estate Rental revenues 4,688 3,332 12,839 9,303 Rental expenses 1,629 1,417 4,817 3,710 Real estate taxes 512 331 1,364 988 Segment net operating income 2,547 1,584 6,658 4,605 General contracting and real estate services Segment revenues 53,822 31,532 129,959 71,261 Segment expenses 51,716 30,468 125,141 67,807 Segment net operating income 2,106 1,064 4,818 3,454 Net operating income $ 16,488 $ 11,883 $ 44,291 $ 34,218 General contracting and real estate services revenues for the three and nine months ended September 30, 2015 exclude revenue related to intercompany construction contracts of $11.4 million and $27.9 million, respectively. General contracting and real estate services expenses for the three and nine months ended September 30, 2015 exclude expenses related to intercompany construction contracts of $11.3 million and $27.7 million, respectively. General contracting and real estate services expenses for the three and nine months ended September 30, 2015 include noncash stock compensation expense of less than $0.1 million and $0.2 million, respectively. General contracting and real estate services revenues for the three and nine months ended September 30, 2014 exclude revenue from intercompany construction contracts of $24.2 million and $68.8 million, respectively. General contracting and real estate services expenses for the three and nine months ended September 30, 2014 exclude expenses for intercompany construction contracts of $24.1 million and $68.2 million, respectively. General contracting and real estate services expenses for the three and nine months ended September 30, 2014 include noncash stock compensation expense of less than $0.1 million and $0.2 million, respectively. The following table reconciles net operating income to net income for the three and nine months ended September 30, 2015 and 2014 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Unaudited) Net operating income $ 16,488 $ 11,883 $ 44,291 $ 34,218 Depreciation and amortization (6,317 ) (4,567 ) (16,991 ) (12,593 ) General and administrative expenses (1,873 ) (1,741 ) (6,297 ) (5,768 ) Acquisition, development and other pursuit costs (288 ) (174 ) (1,050 ) (174 ) Impairment charges — (15 ) (23 ) (15 ) Interest expense (3,518 ) (2,734 ) (9,922 ) (7,977 ) Loss on extinguishment of debt (3 ) — (410 ) — Gain on real estate dispositions — — 13,407 — Other income (loss) (34 ) 59 (182 ) (23 ) Income tax benefit (provision) (118 ) 43 (83 ) (135 ) Net income $ 4,337 $ 2,754 $ 22,740 $ 7,533 General and administrative expenses for the three and nine months ended September 30, 2015 include noncash stock compensation expense of $0.2 million and $0.6 million, respectively. General and administrative expenses for the three and nine months ended September 30, 2014 include noncash stock compensation expense of $0.2 million and $0.5 million, respectively. |
Real Estate Investments
Real Estate Investments | 9 Months Ended |
Sep. 30, 2015 | |
Real Estate [Abstract] | |
Real Estate Investments | 4. Real Estate Investments On March 31, 2015, the Company purchased land held for development in the Town Center of Virginia Beach, Virginia for $1.2 million. Operating Property Acquisitions In connection with operating property acquisitions, the Company identifies and recognizes all assets acquired and liabilities assumed at their estimated fair values as of the acquisition date. The purchase price allocations to tangible assets, such as land, site improvements and buildings and improvements are presented within income producing property in the condensed consolidated balance sheet and depreciated over their estimated useful lives. Acquired lease intangibles are presented within other assets and liabilities in the condensed consolidated balance sheet and amortized over their respective lease terms. The Company expenses all costs incurred related to operating property acquisitions. The Company values land based on a market approach, looking to recent sales of similar properties, adjusting for differences due to location, the state of entitlement as well as the shape and size of the parcel. Improvements to land are valued using a replacement cost approach. The approach applies industry standard replacement costs adjusted for geographic specific considerations and reduced by estimated depreciation. The value of buildings acquired is estimated using the replacement cost approach, assuming the buildings were vacant at acquisition. The replacement cost approach considers the composition of the structures acquired, adjusted for an estimate of depreciation. The estimate of depreciation is made considering industry standard information and depreciation curves for the identified asset classes. The value of acquired lease intangibles considers the estimated cost of leasing the properties as if the acquired buildings were vacant, as well as the value of the current leases relative to market-rate leases. The in-place lease value is determined using an estimated total lease-up time and lost rental revenues during such time. The value of current leases relative to market-rate leases is based on market rents obtained for market comparables. Given the significance of unobservable inputs used in the valuation of acquired real estate assets, the Company classifies them as Level 3 inputs in the fair value hierarchy. On April 8, 2015, the Company completed the acquisitions of Stone House Square in Hagerstown, Maryland and Perry Hall Marketplace in Perry Hall, Maryland. In exchange for both properties, the Company paid $35.4 million of cash and issued 415,500 shares of common stock. The acquisition date fair value of the total consideration transferred in exchange for Stone House Square and Perry Hall Marketplace was $39.8 million. On July 1, 2015, the Company completed the acquisition of Socastee Commons, a 57,000 square foot retail center in Myrtle Beach, South Carolina. The total consideration for Socastee Commons was $8.7 million, which was comprised of $3.7 million of cash and the assumption of debt with an outstanding principal balance of $5.0 million. On July 10, 2015, the Company acquired Columbus Village, a 65,000 square foot retail center in Virginia Beach, Virginia. In exchange for Columbus Village, the Company assumed debt with an aggregate outstanding principal balance of $8.8 million, issued 1,000,000 Class B units of limited partnership interest in the Operating Partnership (“Class B Units”) and agreed to issue 275,000 Class C units of limited partnership interest in the Operating Partnership (“Class C Units”) on January 10, 2017. Subject to the occurrence of certain events, the Class B Units and Class C Units will not earn or accrue distributions until July 10, 2017 and January 10, 2018, respectively, at which time each may be redeemed in exchange for cash equal to the market price of shares of the Company’s common stock or, at the Company’s option and sole discretion, shares of the Company’s common stock on a one-for-one basis. The estimated fair value of the Class B Units and Class C Units includes a discount for their lack of marketability and distributions until July 10, 2017 and January 10, 2017, respectively. The acquisition date fair value of the total consideration transferred in exchange for Columbus Village was $19.2 million. On September 1, 2015, the Company acquired Providence Plaza in Charlotte, North Carolina for $26.2 million of cash. Providence Plaza is a mixed-use property comprised of three buildings totaling 103,000 square feet, a two-level parking garage and approximately one acre of land zoned for multifamily development. The following table summarizes the acquisition date fair values of the assets acquired and liabilities assumed during the nine months ended September 30, 2015 (in thousands): Land $ 29,500 Site improvements 3,290 Building and improvements 49,260 In-place leases 14,160 Above-market leases 2,260 Below-market leases (4,420 ) Indebtedness (13,935 ) Net assets acquired $ 80,115 The following table summarizes the consolidated results of operations of the Company on a pro forma basis, as if each of these properties had been acquired on January 1, 2014 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Unaudited) Rental revenues $ 21,781 $ 18,838 $ 63,392 $ 53,601 Net income 4,657 2,999 24,158 7,322 The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if each of these acquisitions had taken place on January 1, 2014. The pro forma financial information includes adjustments to rental revenues for above and below-market leases and adjustments to depreciation and amortization expense for acquired property and in-place lease assets. Rental revenues and net income from the acquired properties for the period from the respective acquisition dates to September 30, 2015 included in the consolidated statement of comprehensive income was $2.6 million and $0.4 million, respectively. Real Estate Dispositions On January 5, 2015, the Company completed the sale of the Sentara Williamsburg office property for $15.4 million. Net proceeds to the Company after transaction costs were $15.2 million. The Company recognized a gain on the disposition of the Sentara Williamsburg office property of $6.2 million. On February 13, 2015, the Company agreed to the future sale of the Oyster Point office property for $6.5 million. The Company intends to complete the sale on January 15, 2017. On May 20, 2015, the Company completed the sale of Whetstone Apartments for $35.6 million. Net proceeds to the Company after transaction costs were $35.5 million. The Company recognized a gain on the disposition of Whetstone Apartments of $7.2 million. Subsequent to September 30, 2015 Brooks Crossing On October 5, 2015, the Company purchased 3.24 acres of land in Newport News, Virginia for $0.1 million for the development of Brooks Crossing, a new urban, mixed-use and low-rise development project, in partnership with the City of Newport News. Point Street Apartments On October 15, 2015, the Company agreed to invest up to $23.0 million in the Point Street Apartments project in the Harbor Point area of Baltimore, Maryland. Point Street Apartments is an estimated $93.0 million development project with plans for a 17-story building comprising 289 residential units and 18,000 square feet of street-level retail space. Beatty Development Group (“BDG”) is the developer of the project and has engaged the Company to serve as construction general contractor. Point Street Apartments is scheduled to open in 2017; however, management can provide no assurances that Point Street Apartments will open on the anticipated timeline. BDG is responsible for securing a senior construction loan of up to $70.0 million to fund the development and construction of Point Street Apartments. The Company has agreed to guarantee up to $25.0 million of the senior construction loan in exchange for the option to purchase up to an 88% controlling interest in Point Street Apartments upon completion of the project as follows: (i) an option to purchase a 79% indirect interest in Point Street Apartments for $27.3 million, exercisable within one year from the project’s completion (the “First Option”) and (ii) provided that the Company has exercised the First Option, an option to purchase an additional 9% indirect interest in Point Street Apartments for $3.1 million, exercisable within 27 months from the project’s completion (the “Second Option”). The Company’s investment in the Point Street Apartments project is in the form of a loan under which BDG may borrow up to $23.0 million (the “BDG loan”). Interest on the BDG loan accrues at 8.0% per annum and matures on the earlier of: (i) November 1, 2018, which may be extended by BDG under two one-year extension options, (ii) the maturity date or earlier termination of the senior construction loan or (iii) the date the Company exercises the Second Option as described further below. In the event the Company exercises the First Option, BDG is required to simultaneously pay down the senior construction loan by $7.4 million and the BDG loan by $19.9 million, at which time the interest rate on the BDG loan will automatically be reduced to the interest rate on the senior construction loan plus 200 basis points. In the event the Company exercises the Second Option, BDG is required to simultaneously repay any remaining amounts outstanding under the BDG loan, with any excess proceeds received from the exercise of the Second Option applied against the senior construction loan. In the event the Company does not exercise either the First Option or the Second Option, the interest rate on the BDG loan will automatically be reduced to the interest rate on the senior construction loan for the remaining term of the BDG loan. In the event BDG is unable to secure a senior construction loan on or before June 30, 2016, the interest rate on the BDG loan will be reduced to one-month LIBOR plus 200 basis points. As of the date of this report, the Company had funded $6.1 million under the BDG loan. Oceaneering International facility sale On October 30, 2015, the Company completed the sale of the Oceaneering International facility for $30.0 million. Net assets of $5.7 million associated with the Oceaneering International facility were included in the condensed consolidated balance sheet as of September 30, 2015. Richmond Tower sale On November 2, 2015, the Company entered into an agreement to sell the Richmond Tower office building for $78.0 million. The Company expects to complete the disposition in 2015, subject to the satisfaction of certain customary closing conditions including satisfactory completion of the buyer’s due diligence. There can be no assurances that these conditions will be satisfied or that the Company will complete the disposition on the terms described herein or at all. Net assets of $51.4 million associated with the Richmond Tower office building were included in the condensed consolidated balance sheet as of September 30, 2015. |
Indebtedness
Indebtedness | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Indebtedness | 5. Indebtedness Credit Facility On January 23, 2015, the Operating Partnership borrowed $5.0 million under its prior credit facility. This credit facility was scheduled to mature on May 13, 2016; however, the Operating Partnership repaid all amounts due under this credit facility with proceeds from a new credit facility and terminated the prior credit facility on February 20, 2015, as discussed below. New Credit Facility On February 20, 2015, the Operating Partnership, as borrower, and the Company, as parent guarantor, entered into a new $200.0 million senior unsecured credit facility that includes a $150.0 million senior unsecured revolving credit facility and a $50.0 million senior unsecured term loan facility. The new credit facility replaced the prior $155.0 million senior secured revolving credit facility that was scheduled to mature on May 13, 2016. On February 20, 2015, the Operating Partnership borrowed $54.0 million under the revolving credit facility and $50.0 million under the term loan facility to repay in full all outstanding amounts due under the prior credit facility and to repay approximately $39.0 million of other indebtedness secured by the following properties in the Company’s portfolio: (i) Broad Creek Shopping Center, (ii) Commerce Street Retail, (iii) Dick’s at Town Center, (iv) Hanbury Village, (v) Studio 56 Retail and (vi) Tyre Neck Harris Teeter. The Company recognized a $0.2 million loss on extinguishment of debt representing the unamortized debt issuance costs associated with the $39.0 million of other indebtedness repaid on February 20, 2015. Depending on the Operating Partnership’s total leverage, the revolving credit facility bears interest at LIBOR plus 1.40% to 2.00% and the term loan facility bears interest at LIBOR plus 1.35% to 1.95%. As of September 30, 2015, the interest rates on the revolving credit facility and the term loan facility were 1.75% and 1.70%, respectively. The revolving credit facility has a scheduled maturity date of February 20, 2019, with a one-year extension option, subject to certain conditions, and the term loan facility has a scheduled maturity date of February 20, 2020. The Operating Partnership may, at any time, voluntarily prepay any loan under the new credit facility in whole or in part without premium or penalty. As of September 30, 2015, the outstanding balances on the revolving credit facility and the term loan facility were $106.0 million and $50.0 million, respectively. Other Financing Activity On May 20, 2015, the Company repaid the $17.8 million construction loan secured by Whetstone Apartments and recognized a loss on extinguishment of debt of $0.1 million representing unamortized debt issuance costs. On May 27, 2015, the Company repaid the existing $24.4 million mortgage secured by Smith’s Landing and refinanced the property with a new $21.6 million loan that bears interest at 4.05% and matures on June 1, 2035. As a result of the refinancing, the Company recognized a $0.1 million loss on extinguishment of debt representing the unamortized debt issuance costs associated with the repaid mortgage. On July 1, 2015, the Company assumed debt with an outstanding principal balance of $5.0 million in connection with the acquisition of Socastee Commons. The mortgage bears interest at 4.57% and matures on January 6, 2023. On July 10, 2015, the Company assumed two loans with an aggregate outstanding principal balance of $8.8 million in connection with the acquisition of Columbus Village. Both loans bear interest at LIBOR plus 2.00% and mature on April 5, 2018. On July 30, 2015, the Company entered into a $50.0 million loan agreement to fund the development and construction of Johns Hopkins Village. The construction loan bears interest at LIBOR plus 1.90% and matures on July 30, 2018. On September 1, 2015, the Company repaid the $6.1 million mortgage secured by the Oyster Point office building. During the nine months ended September 30, 2015, the Company borrowed $17.7 million under its construction loans to fund new development and construction. Subsequent to September 30, 2015 On October 6, 2015, the Operating Partnership secured the Oyster Point office building with a $6.4 million note that bears interest at LIBOR plus 1.40% to 2.00% and matures on February 28, 2017. On October 30, 2015, the Company repaid the $18.7 million construction loan secured by the Oceaneering International facility. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 6. Derivative Financial Instruments The Company may enter into interest rate derivative contracts to manage exposure to interest rate risks. The Company does not use derivative financial instruments for trading or speculative purposes. Derivative financial instruments are recognized at fair value and presented within other assets and liabilities in the condensed consolidated balance sheets. Gains and losses resulting from changes in the fair value of derivatives that are neither designated nor qualify as hedging instruments are recognized within other income (expense) in the condensed consolidated statements of comprehensive income. For derivatives that qualify as cash flow hedges, the effective portion of the gain or loss is reported as a component of other comprehensive income and reclassified into earnings in the periods during which the hedged forecasted transaction affects earnings. On February 20, 2015, the Operating Partnership entered into a $50.0 million floating-to-fixed interest rate swap attributable to one-month LIBOR indexed interest payments. The $50.0 million interest rate swap has a fixed rate of 2.00%, an effective date of March 1, 2016 and a maturity date of February 20, 2020. The Operating Partnership entered into this interest rate swap agreement in connection with the new $50.0 million senior unsecured term loan facility that bears interest at LIBOR plus 1.35% to 1.95%, depending on the Operating Partnership’s total leverage. The Company designated this interest rate swap as a cash flow hedge of variable interest payments based on one-month LIBOR. On July 13, 2015, the Operating Partnership entered into a $6.5 million floating-to-fixed interest rate swap attributable to one-month LIBOR indexed interest payments. The $6.5 million interest rate swap has a fixed rate of 3.05%, an effective date of July 13, 2015 and a maturity date of April 5, 2018. The Company designated this interest rate swap as a cash flow hedge of variable interest payments based on one-month LIBOR. The Company’s derivatives were comprised of the following as of September 30, 2015 and December 31, 2014 (in thousands): September 30, 2015 December 31, 2014 (Unaudited) Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Interest rate swaps $ 57,140 $ — $ (1,585 ) $ 685 $ — $ (11 ) Interest rate caps 171,546 22 — 180,434 260 — Total $ 228,686 $ 22 $ (1,585 ) $ 181,119 $ 260 $ (11 ) The changes in the fair value of the Company’s derivatives during the three and nine months ended September 30, 2015 and 2014 were comprised of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Unaudited) Interest rate swaps $ (1,026 ) $ 4 $ (1,574 ) $ 5 Interest rate caps (51 ) 42 (238 ) (128 ) Total $ (1,077 ) $ 46 $ (1,812 ) $ (123 ) Comprehensive income statement presentation: Other income (loss) $ (51 ) $ 46 $ (238 ) $ (123 ) Unrealized gain (loss) on cash flow hedge (1,026 ) — (1,574 ) — Total $ (1,077 ) $ 46 $ (1,812 ) $ (123 ) Subsequent to September 30, 2015 On October 26, 2015, the Operating Partnership entered into a LIBOR interest rate cap agreement on a notional amount of $75.0 million at a strike rate of 1.25% for a premium of $0.1 million. The interest rate cap agreement expires on October 15, 2017. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Equity | 7. Equity Stockholders’ Equity On April 8, 2015, the Company issued 415,500 shares of common stock in a private placement as partial consideration for the acquisition of Perry Hall Marketplace. On May 5, 2015, the Company commenced an at-the-market continuous equity program through which the Company may, from time to time, issue and sell shares of its common stock having an aggregate offering price of up to $50.0 million. During the nine months ended September 30, 2015, the Company issued and sold an aggregate of 747,163 shares of common stock at a weighted average price of $10.29 per share. Net proceeds to the Company after offering costs and commissions were $7.4 million. As of September 30, 2015 and December 31, 2014, the Company’s authorized capital was 500 million shares of common stock and 100 million shares of preferred stock. The Company had 26.3 million and 25.0 million shares of common stock issued and outstanding as of September 30, 2015 and December 31, 2014, respectively. No shares of preferred stock were issued and outstanding as of September 30, 2015 or December 31, 2014. Noncontrolling Interests As of September 30, 2015 and December 31, 2014, the Company held a 62.5% and 62.9% interest in the Operating Partnership, respectively. As the sole general partner and the majority interest holder, the Company consolidates the financial position and results of operations of the Operating Partnership. Noncontrolling interests in the Company represent units of limited partnership interest not held by the Company. As of September 30, 2015, there were 14,768,507 Class A Units not held by the Company. As partial consideration for Columbus Village, the Operating Partnership issued 1,000,000 Class B Units on July 10, 2015 and agreed to issue 275,000 Class C Units on January 10, 2017. Subject to the occurrence of certain events, the Class B Units and Class C Units will not earn or accrue distributions until July 10, 2017 and January 10, 2018, respectively, at which time each automatically convert to Class A Units. Common Stock Dividends and Class A Unit Distributions On January 8, 2015, the Company paid cash dividends of $4.0 million to common stockholders and the Operating Partnership paid cash distributions of $2.4 million to holders of Class A Units. On April 9, 2015, the Company paid cash dividends of $4.3 million to common stockholders and the Operating Partnership paid cash distributions of $2.5 million to holders of Class A Units. On July 9, 2015, the Company paid cash dividends of $4.4 million to common stockholders and the Operating Partnership paid cash distributions of $2.5 million to holders of Class A Units. On August 6, 2015, the Board of Directors declared a cash dividend of $0.17 per share to stockholders of record on October 1, 2015. Subsequent to September 30, 2015 On October 8, 2015, the Company paid cash dividends of $4.5 million to common stockholders and the Operating Partnership paid cash distributions of $2.5 million to holders of Class A Units. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 8. Stock-Based Compensation During the nine months ended September 30, 2015, the Company granted an aggregate of 104,779 shares of restricted stock to employees and nonemployee directors with a weighted average grant date fair value of $10.85 per share. Employee restricted stock awards generally vest over a period of two years: one-third immediately on the grant date and the remaining two-thirds in equal amounts on the first two anniversaries following the grant date, subject to continued service to the Company. Nonemployee director restricted stock awards vest either immediately upon grant or over a period of one year, subject to continued service to the Company. During the three and nine months ended September 30, 2015, the Company recognized $0.2 million and $1.0 million of stock-based compensation, respectively. During the three and nine months ended September 30, 2014, the Company recognized $0.3 million and $1.2 million of stock-based compensation, respectively. As of September 30, 2015, there were 102,322 nonvested restricted shares outstanding; the total unrecognized compensation related to nonvested restricted shares was $0.5 million, which the Company expects to recognize over the next 18 months. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 9. Fair Value of Financial Instruments Fair value measurements are based on assumptions that market participants would use in pricing an asset or a liability. The hierarchy for inputs used in measuring fair value is as follows: Level 1—quoted prices in active markets for identical assets or liabilities Level 2—observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3—unobservable inputs Except as disclosed below, the carrying amounts of the Company’s financial instruments approximate their fair value. Financial assets and liabilities whose fair values are measured on a recurring basis using Level 2 inputs consist of interest rate swaps and caps. The Company measures the fair values of these assets and liabilities based on prices provided by independent market participants that are based on observable inputs using market-based valuation techniques. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. For disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. The fair value of the Company’s long term debt is sensitive to fluctuations in interest rates. Discounted cash flow analysis based on Level 2 inputs is generally used to estimate the fair value of the Company’s long term debt. Considerable judgment is used to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. The carrying amounts and fair values of the Company’s financial instruments, all of which are based on Level 2 inputs, as of September 30, 2015 and December 31, 2014 were as follows (in thousands): September 30, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value (Unaudited) Indebtedness $ 420,145 $ 426,848 $ 359,229 $ 366,095 Interest rate swap liabilities 1,585 1,585 11 11 Interest rate cap assets 22 22 260 260 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. Related Party Transactions The Company provides general contracting and real estate services to certain related party entities that are not included in these condensed consolidated financial statements. Revenue from construction contracts with related party entities of the Company was $1.5 million and $5.5 million for the three and nine months ended September 30, 2015, respectively. Gross profit from such contracts was less than $0.1 million and $0.2 million for the three and nine months ended September 30, 2015, respectively. Revenue from construction contracts with related party entities of the Company was $1.1 million and $5.0 million for the three and nine months ended September 30, 2014, respectively. Gross profit from such contracts was less than $0.1 million and $0.3 million for the three and nine months ended September 30, 2014, respectively. Real estate services fees from affiliated entities of the Company were not significant for either the three or nine months ended September 30, 2015 or 2014. In addition, affiliated entities also reimburse the Company for monthly maintenance and facilities management services provided to the properties. Cost reimbursements earned by the Company from affiliated entities were not significant for either the three or nine months ended September 30, 2015 or 2014. On March 31, 2015, the Company acquired the option to purchase land in Virginia Beach, Virginia for future development from certain of its executives, officers and directors. As consideration for the land option, the Company reimbursed such executives, officers and directors $0.2 million for the real estate taxes and insurance costs they incurred with respect to this land. On March 31, 2015, the Company exercised the option on the land, which is presented as real estate held for development in the condensed consolidated balance sheet. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Legal Proceedings The Company is from time to time involved in various disputes, lawsuits, warranty claims, environmental and other matters arising in the ordinary course of business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters. The Company currently is a party to various legal proceedings, none of which management expects will have a material adverse effect on the Company’s financial position, results of operations or liquidity. Management accrues a liability for litigation if an unfavorable outcome is determined to be probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is determined to be probable and a range of loss can be reasonably estimated, management accrues the best estimate within the range; however, if no amount within the range is a better estimate than any other, the minimum amount within the range is accrued. Legal fees related to litigation are expensed as incurred. Management does not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on the Company’s financial position or results of operations; however, litigation is subject to inherent uncertainties. Under the Company’s leases, tenants are typically obligated to indemnify the Company from and against all liabilities, costs and expenses imposed upon or asserted against it as owner of the properties due to certain matters relating to the operation of the properties by the tenant. Commitments The Company has a bonding line of credit for its general contracting construction business and is contingently liable under performance and payment bonds, bonds for cancellation of mechanics liens and defect bonds. Such bonds collectively totaled $204.7 million and $192.2 million as of September 30, 2015 and December 31, 2014, respectively. The Operating Partnership has entered into standby letters of credit using the available capacity under the credit facility. The letters of credit relate to the guarantee of future performance on certain of the Company’s construction contracts. Letters of credit generally are available for draw down in the event the Company does not perform. As of September 30, 2015 and December 31, 2014, the Operating Partnership had total outstanding letters of credit of $8.0 million and $8.5 million, respectively. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The condensed consolidated financial statements include the financial position and results of operations of the Company, the Operating Partnership and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for the fair presentation of the financial condition and results of operations for the interim periods presented. The accompanying condensed consolidated financial statements were prepared in accordance with the requirements for interim financial information. Accordingly, these interim financial statements have not been audited and exclude certain disclosures required for annual financial statements. Also, the operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These interim financial statements should be read in conjunction with the audited consolidated financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed. Such estimates are based on management’s historical experience and best judgment after considering past, current and expected events and economic conditions. Actual results could differ from management’s estimates. |
Significant Accounting Policies | Significant Accounting Policies The accompanying condensed consolidated financial statements were prepared on the basis of the accounting principles described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, among others. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued a new standard that provides a single, comprehensive model for recognizing revenue from contracts with customers. While the new standard does not supersede the guidance on accounting for leases, it could change the way the Company recognizes revenue from construction and development contracts with third party customers. The new standard will be effective for the Company on January 1, 2018. Management is currently evaluating the potential impact of the new revenue recognition standard on the Company’s consolidated financial statements. On February 18, 2015, the FASB issued new consolidation guidance that changes: (i) the identification of variable interests, (ii) the variable interest entity (“VIE”) characteristics for a limited partnership or similar entity and (iii) primary beneficiary determination. The amended guidance also eliminates the presumption that a general partner controls a limited partnership. The amended guidance will be effective for the Company on January 1, 2016. Management is currently evaluating the potential impact of the new guidance on the Company’s consolidated financial statements. Current accounting guidance requires debt issuance costs to be presented in the balance sheet as an asset. On April 7, 2015, the FASB issued new guidance that requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount, rather than as an asset. However, with respect to line of credit arrangements, the Securities and Exchange Commission staff have stated that they would not object to the presentation of issuance costs as an asset, regardless of whether there were any outstanding borrowings under such arrangements. The new guidance will be effective for the Company on January 1, 2016 and will be applied on a retrospective basis. Management does not expect the adoption of the new guidance to have a material effect on the Company’s financial position or results of operations. |
Operating Property Acquisitions | Operating Property Acquisitions In connection with operating property acquisitions, the Company identifies and recognizes all assets acquired and liabilities assumed at their estimated fair values as of the acquisition date. The purchase price allocations to tangible assets, such as land, site improvements and buildings and improvements are presented within income producing property in the condensed consolidated balance sheet and depreciated over their estimated useful lives. Acquired lease intangibles are presented within other assets and liabilities in the condensed consolidated balance sheet and amortized over their respective lease terms. The Company expenses all costs incurred related to operating property acquisitions. The Company values land based on a market approach, looking to recent sales of similar properties, adjusting for differences due to location, the state of entitlement as well as the shape and size of the parcel. Improvements to land are valued using a replacement cost approach. The approach applies industry standard replacement costs adjusted for geographic specific considerations and reduced by estimated depreciation. The value of buildings acquired is estimated using the replacement cost approach, assuming the buildings were vacant at acquisition. The replacement cost approach considers the composition of the structures acquired, adjusted for an estimate of depreciation. The estimate of depreciation is made considering industry standard information and depreciation curves for the identified asset classes. The value of acquired lease intangibles considers the estimated cost of leasing the properties as if the acquired buildings were vacant, as well as the value of the current leases relative to market-rate leases. The in-place lease value is determined using an estimated total lease-up time and lost rental revenues during such time. The value of current leases relative to market-rate leases is based on market rents obtained for market comparables. Given the significance of unobservable inputs used in the valuation of acquired real estate assets, the Company classifies them as Level 3 inputs in the fair value hierarchy. |
Derivative Financial Instruments | The Company may enter into interest rate derivative contracts to manage exposure to interest rate risks. The Company does not use derivative financial instruments for trading or speculative purposes. Derivative financial instruments are recognized at fair value and presented within other assets and liabilities in the condensed consolidated balance sheets. Gains and losses resulting from changes in the fair value of derivatives that are neither designated nor qualify as hedging instruments are recognized within other income (expense) in the condensed consolidated statements of comprehensive income. For derivatives that qualify as cash flow hedges, the effective portion of the gain or loss is reported as a component of other comprehensive income and reclassified into earnings in the periods during which the hedged forecasted transaction affects earnings. |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Net Operating Income of Reportable Segments | Net operating income of the Company’s reportable segments for the three and nine months ended September 30, 2015 and 2014 was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Unaudited) Office real estate Rental revenues $ 8,092 $ 7,295 $ 23,847 $ 20,363 Rental expenses 1,758 1,742 5,216 4,756 Real estate taxes 734 609 2,228 1,697 Segment net operating income 5,600 4,944 16,403 13,910 Retail real estate Rental revenues 8,523 6,086 22,715 17,559 Rental expenses 1,478 1,255 4,223 3,764 Real estate taxes 810 540 2,080 1,546 Segment net operating income 6,235 4,291 16,412 12,249 Multifamily residential real estate Rental revenues 4,688 3,332 12,839 9,303 Rental expenses 1,629 1,417 4,817 3,710 Real estate taxes 512 331 1,364 988 Segment net operating income 2,547 1,584 6,658 4,605 General contracting and real estate services Segment revenues 53,822 31,532 129,959 71,261 Segment expenses 51,716 30,468 125,141 67,807 Segment net operating income 2,106 1,064 4,818 3,454 Net operating income $ 16,488 $ 11,883 $ 44,291 $ 34,218 |
Reconciliation of Net Operating Income to Net Income | The following table reconciles net operating income to net income for the three and nine months ended September 30, 2015 and 2014 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Unaudited) Net operating income $ 16,488 $ 11,883 $ 44,291 $ 34,218 Depreciation and amortization (6,317 ) (4,567 ) (16,991 ) (12,593 ) General and administrative expenses (1,873 ) (1,741 ) (6,297 ) (5,768 ) Acquisition, development and other pursuit costs (288 ) (174 ) (1,050 ) (174 ) Impairment charges — (15 ) (23 ) (15 ) Interest expense (3,518 ) (2,734 ) (9,922 ) (7,977 ) Loss on extinguishment of debt (3 ) — (410 ) — Gain on real estate dispositions — — 13,407 — Other income (loss) (34 ) 59 (182 ) (23 ) Income tax benefit (provision) (118 ) 43 (83 ) (135 ) Net income $ 4,337 $ 2,754 $ 22,740 $ 7,533 |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Summary of Consolidated and Combined Results of Operations on Pro Forma Basis | The following table summarizes the consolidated results of operations of the Company on a pro forma basis, as if each of these properties had been acquired on January 1, 2014 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Unaudited) Rental revenues $ 21,781 $ 18,838 $ 63,392 $ 53,601 Net income 4,657 2,999 24,158 7,322 |
Stone House Square and Mary Land and Perry Hall Market Place [Member] | |
Summary of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the acquisition date fair values of the assets acquired and liabilities assumed during the nine months ended September 30, 2015 (in thousands): Land $ 29,500 Site improvements 3,290 Building and improvements 49,260 In-place leases 14,160 Above-market leases 2,260 Below-market leases (4,420 ) Indebtedness (13,935 ) Net assets acquired $ 80,115 |
Derivative Financial Instrume21
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives | The Company’s derivatives were comprised of the following as of September 30, 2015 and December 31, 2014 (in thousands): September 30, 2015 December 31, 2014 (Unaudited) Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Interest rate swaps $ 57,140 $ — $ (1,585 ) $ 685 $ — $ (11 ) Interest rate caps 171,546 22 — 180,434 260 — Total $ 228,686 $ 22 $ (1,585 ) $ 181,119 $ 260 $ (11 ) The changes in the fair value of the Company’s derivatives during the three and nine months ended September 30, 2015 and 2014 were comprised of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Unaudited) Interest rate swaps $ (1,026 ) $ 4 $ (1,574 ) $ 5 Interest rate caps (51 ) 42 (238 ) (128 ) Total $ (1,077 ) $ 46 $ (1,812 ) $ (123 ) Comprehensive income statement presentation: Other income (loss) $ (51 ) $ 46 $ (238 ) $ (123 ) Unrealized gain (loss) on cash flow hedge (1,026 ) — (1,574 ) — Total $ (1,077 ) $ 46 $ (1,812 ) $ (123 ) |
Fair Value of Financial Instr22
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Fair Values of Financial Instruments Measured based on Level Two Inputs | The carrying amounts and fair values of the Company’s financial instruments, all of which are based on Level 2 inputs, as of September 30, 2015 and December 31, 2014 were as follows (in thousands): September 30, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value (Unaudited) Indebtedness $ 420,145 $ 426,848 $ 359,229 $ 366,095 Interest rate swap liabilities 1,585 1,585 11 11 Interest rate cap assets 22 22 260 260 |
Business and Organization - Add
Business and Organization - Additional Information (Detail) | Sep. 30, 2015 |
Real Estate Properties [Line Items] | |
Ownership interest percentage in properties | 100.00% |
Lightfoot Marketplace [Member] | |
Real Estate Properties [Line Items] | |
Ownership interest percentage in properties | 60.00% |
Increase in ownership interest due to certain events | 70.00% |
Johns Hopkins Village [Member] | |
Real Estate Properties [Line Items] | |
Ownership interest percentage in properties | 80.00% |
Noncontrolling interest ownership percentage in properties | 20.00% |
Segments - Net Operating Income
Segments - Net Operating Income of Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Rental revenues | $ 21,303 | $ 16,713 | $ 59,401 | $ 47,225 |
Segment revenues | 53,822 | 31,532 | 129,959 | 71,261 |
Rental expenses | 4,865 | 4,414 | 14,256 | 12,230 |
Real estate taxes | 2,056 | 1,480 | 5,672 | 4,231 |
Net operating income | 16,488 | 11,883 | 44,291 | 34,218 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net operating income | 16,488 | 11,883 | 44,291 | 34,218 |
Operating Segments [Member] | Office Real Estate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Rental revenues | 8,092 | 7,295 | 23,847 | 20,363 |
Rental expenses | 1,758 | 1,742 | 5,216 | 4,756 |
Real estate taxes | 734 | 609 | 2,228 | 1,697 |
Net operating income | 5,600 | 4,944 | 16,403 | 13,910 |
Operating Segments [Member] | Retail Real Estate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Rental revenues | 8,523 | 6,086 | 22,715 | 17,559 |
Rental expenses | 1,478 | 1,255 | 4,223 | 3,764 |
Real estate taxes | 810 | 540 | 2,080 | 1,546 |
Net operating income | 6,235 | 4,291 | 16,412 | 12,249 |
Operating Segments [Member] | Multifamily Residential Real Estate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Rental revenues | 4,688 | 3,332 | 12,839 | 9,303 |
Rental expenses | 1,629 | 1,417 | 4,817 | 3,710 |
Real estate taxes | 512 | 331 | 1,364 | 988 |
Net operating income | 2,547 | 1,584 | 6,658 | 4,605 |
Operating Segments [Member] | General Contracting and Real Estate Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenues | 53,822 | 31,532 | 129,959 | 71,261 |
Segment expenses | 51,716 | 30,468 | 125,141 | 67,807 |
Net operating income | $ 2,106 | $ 1,064 | $ 4,818 | $ 3,454 |
Segments - Additional Informati
Segments - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
General contracting and real estate services revenues | $ (53,822,000) | $ (31,532,000) | $ (129,959,000) | $ (71,261,000) |
Noncash stock compensation | 755,000 | 720,000 | ||
General and Administrative Expenses [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Noncash stock compensation | 200,000 | 200,000 | 600,000 | 500,000 |
General Contracting and Real Estate Services [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
General contracting and real estate services revenues | 11,400,000 | 24,200,000 | 27,900,000 | 68,800,000 |
General contracting and real estate services expenses | 11,300,000 | 24,100,000 | 27,700,000 | 68,200,000 |
General Contracting and Real Estate Services [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
General contracting and real estate services revenues | (53,822,000) | (31,532,000) | (129,959,000) | (71,261,000) |
General contracting and real estate services expenses | (51,716,000) | (30,468,000) | (125,141,000) | (67,807,000) |
General Contracting and Real Estate Services [Member] | Operating Segments [Member] | Maximum [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Noncash stock compensation | $ 100,000 | $ 100,000 | $ 200,000 | $ 200,000 |
Segments - Reconciliation of Ne
Segments - Reconciliation of Net Operating Income to Net Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting [Abstract] | ||||
Net operating income | $ 16,488 | $ 11,883 | $ 44,291 | $ 34,218 |
Depreciation and amortization | (6,317) | (4,567) | (16,991) | (12,593) |
General and administrative expenses | (1,873) | (1,741) | (6,297) | (5,768) |
Acquisition, development and other pursuit costs | (288) | (174) | (1,050) | (174) |
Impairment charges | (15) | (23) | (15) | |
Interest expense | (3,518) | (2,734) | (9,922) | (7,977) |
Loss on extinguishment of debt | (3) | (410) | ||
Gain on real estate dispositions | 13,407 | |||
Other income (loss) | (34) | 59 | (182) | (23) |
Income tax benefit (provision) | (118) | 43 | (83) | (135) |
Net income | $ 4,337 | $ 2,754 | $ 22,740 | $ 7,533 |
Real Estate Investments - Addit
Real Estate Investments - Additional Information (Detail) | Nov. 02, 2015USD ($) | Oct. 30, 2015USD ($) | Oct. 15, 2015USD ($)ft²Residential | Sep. 01, 2015USD ($)ft²aBuildings | Jul. 10, 2015USD ($)ft²shares | Jul. 01, 2015USD ($)ft² | May. 20, 2015USD ($) | Apr. 08, 2015USD ($)shares | Feb. 13, 2015USD ($) | Jan. 05, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Oct. 05, 2015USD ($)a | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Real Estate Properties [Line Items] | ||||||||||||||||||
Land held for development purchased | $ 1,180,000 | $ 1,180,000 | $ 1,180,000 | |||||||||||||||
Rental revenues | 21,303,000 | $ 16,713,000 | 59,401,000 | $ 47,225,000 | ||||||||||||||
Net income (loss) | 2,688,000 | $ 1,615,000 | 14,314,000 | $ 4,405,000 | ||||||||||||||
Sale of office property | $ 50,613,000 | |||||||||||||||||
Loan investment description | The Company's investment in the Point Street Apartments project is in the form of a loan under which BDG may borrow up to $23.0 million (the "BDG loan"). Interest on the BDG loan accrues at 8.0% per annum and matures on the earlier of (i) November 1, 2018, which may be extended by BDG under two one-year extension options, (ii) the maturity date or earlier termination of the senior construction loan or (iii) the date the Company exercises the Second Option | |||||||||||||||||
Loan maturity date | Nov. 1, 2018 | |||||||||||||||||
Net assets associated with sale of Richmond Tower property | $ 555,620,000 | 555,620,000 | $ 555,620,000 | $ 478,901,000 | ||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Number of residential units in Square feet | ft² | 18,000 | |||||||||||||||||
Pay down senior secured construction loan | $ 7,400,000 | |||||||||||||||||
Interest at Libor Plus basis points | 2.00% | |||||||||||||||||
Subsequent Event [Member] | BDG [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Investment loan | $ 23,000,000 | |||||||||||||||||
Percentage of interest accrued | 8.00% | |||||||||||||||||
Pay down senior secured construction loan | $ 19,900,000 | |||||||||||||||||
Company investment amount | 6,100,000 | |||||||||||||||||
Subsequent Event [Member] | Newport News Va [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Area of property acquired | a | 3.24 | |||||||||||||||||
Purchase of land | $ 100,000 | |||||||||||||||||
Subsequent Event [Member] | Oceaneering International Facility [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Sale of property | $ 30,000,000 | |||||||||||||||||
Net assets | $ 5,700,000 | |||||||||||||||||
Subsequent Event [Member] | Maximum [Member] | BDG [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Senior construction loan | 70,000,000 | |||||||||||||||||
Subsequent Event [Member] | Maximum [Member] | Guarantor Subsidiaries [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Senior construction loan | 25,000,000 | |||||||||||||||||
Sentara Williamsburg [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Sale of office property | $ 15,400,000 | |||||||||||||||||
Net proceeds after transaction costs | 15,200,000 | |||||||||||||||||
Gain (Loss) on disposition of real estate | $ 6,200,000 | |||||||||||||||||
Whetstone Apartments [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Acquisition date | May 20, 2015 | |||||||||||||||||
Net proceeds after transaction costs | $ 35,500,000 | |||||||||||||||||
Proceeds from sale of Whetstone Apartments | 35,600,000 | |||||||||||||||||
Gain on disposition of Apartments | $ 7,200,000 | |||||||||||||||||
Point Street Apartments [Member] | Subsequent Event [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Estimated cost of construction of development project | $ 93,000,000 | |||||||||||||||||
Number of units comprises of 17-story building | Residential | 289 | |||||||||||||||||
Point Street Apartments [Member] | Subsequent Event [Member] | First Option [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Indirect interest an option to purchase | 79.00% | |||||||||||||||||
Indirect interest an option to additional purchase,amount | $ 27,300,000 | |||||||||||||||||
Indirect interest exercisable period | 1 year | |||||||||||||||||
Point Street Apartments [Member] | Subsequent Event [Member] | Second Option [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Indirect interest an option to purchase | 9.00% | |||||||||||||||||
Indirect interest an option to additional purchase,amount | $ 3,100,000 | |||||||||||||||||
Indirect interest exercisable period | 27 months | |||||||||||||||||
Point Street Apartments [Member] | Subsequent Event [Member] | Maximum [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Company agreed to invest on projects | $ 23,000,000 | |||||||||||||||||
Point Street Apartments [Member] | Subsequent Event [Member] | Maximum [Member] | BDG [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Percentage of options to purchase | 88.00% | |||||||||||||||||
Richmond Tower [Member] | Subsequent Event [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Sale of property | $ 78,000,000 | |||||||||||||||||
Net assets associated with sale of Richmond Tower property | $ 51,400,000 | |||||||||||||||||
Virginia Beach, VA [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Land held for development purchased | $ 1,200,000 | |||||||||||||||||
Stone House Square and Mary Land and Perry Hall Market Place [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Acquisition, total consideration | $ 35,400,000 | |||||||||||||||||
Acquisition, cash consideration | $ 39,800,000 | |||||||||||||||||
Acquisition, common units issued | shares | 415,500 | |||||||||||||||||
Acquisition date | Apr. 8, 2015 | |||||||||||||||||
Rental revenues | 2,600,000 | |||||||||||||||||
Net income (loss) | $ 400,000 | |||||||||||||||||
Columbus Village in Virginia Beach [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Acquisition, total consideration | $ 19,200,000 | |||||||||||||||||
Acquisition date | Jul. 10, 2015 | |||||||||||||||||
Area of property acquired | ft² | 65,000 | |||||||||||||||||
Acquisition, assumption of debt | $ 8,800,000 | |||||||||||||||||
Columbus Village in Virginia Beach [Member] | Class B Units [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Acquisition, common units issued | shares | 1,000,000 | |||||||||||||||||
Columbus Village in Virginia Beach [Member] | Class C Units [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Acquisition, common units issued | shares | 275,000 | |||||||||||||||||
Oyster Point [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Sale of office property | $ 6,500,000 | |||||||||||||||||
Providence Plaza in Charlotte North Carolina [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Acquisition, cash consideration | $ 26,200,000 | |||||||||||||||||
Acquisition date | Sep. 1, 2015 | |||||||||||||||||
Area of property acquired | ft² | 103,000 | |||||||||||||||||
Building Acquired | Buildings | 3 | |||||||||||||||||
Providence Plaza in Charlotte North Carolina [Member] | Multifamily Residential Real Estate [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Area of property acquired | a | 1 | |||||||||||||||||
Socastee Commons Myrtle Beach [Member] | ||||||||||||||||||
Real Estate Properties [Line Items] | ||||||||||||||||||
Acquisition, total consideration | $ 8,700,000 | |||||||||||||||||
Acquisition date | Jul. 1, 2015 | |||||||||||||||||
Area of property acquired | ft² | 57,000 | |||||||||||||||||
Net proceeds after transaction costs and tax protection payments | $ 3,700,000 | |||||||||||||||||
Acquisition, assumption of debt | $ 5,000,000 |
Real Estate Investments - Summa
Real Estate Investments - Summary of Fair Values of Assets Acquired and Liabilities Assumed (Detail) - Stone House Square and Mary Land and Perry Hall Market Place [Member] $ in Thousands | Sep. 30, 2015USD ($) |
Real Estate Properties [Line Items] | |
Land | $ 29,500 |
Site improvements | 3,290 |
Building and improvements | 49,260 |
In-place leases | 14,160 |
Above-market leases | 2,260 |
Below-market leases | (4,420) |
Indebtedness | (13,935) |
Net assets acquired | $ 80,115 |
Real Estate Investments - Sum29
Real Estate Investments - Summary of Consolidated and Combined Results of Operations on Pro Forma Basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Real Estate [Abstract] | ||||
Rental revenues | $ 21,781 | $ 18,838 | $ 63,392 | $ 53,601 |
Net income | $ 4,657 | $ 2,999 | $ 24,158 | $ 7,322 |
Indebtedness - Additional Infor
Indebtedness - Additional Information (Detail) | Oct. 30, 2015USD ($) | Oct. 15, 2015 | Oct. 06, 2015USD ($) | Sep. 01, 2015USD ($) | Jul. 30, 2015USD ($) | Jul. 10, 2015USD ($)Loans | May. 27, 2015USD ($) | May. 20, 2015USD ($) | Feb. 20, 2015USD ($) | Jan. 23, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Jul. 01, 2015USD ($) | Feb. 19, 2015USD ($) |
Debt Instrument [Line Items] | ||||||||||||||
Senior unsecured term loan facility | $ 50,000,000 | |||||||||||||
Loss on extinguishment of debt | $ 3,000 | $ 410,000 | ||||||||||||
Socastee Commons Myrtle Beach [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument maturity date | Jan. 6, 2023 | |||||||||||||
Debt assumed, interest rate | 4.57% | |||||||||||||
Outstanding principal amount of debt | $ 5,000,000 | |||||||||||||
Columbus Village in Virginia Beach [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument maturity date | Apr. 5, 2018 | |||||||||||||
Outstanding principal amount of debt | $ 8,800,000 | |||||||||||||
Number of loans | Loans | 2 | |||||||||||||
Columbus Village in Virginia Beach [Member] | LIBOR [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate, basis spread on variable rate | 2.00% | |||||||||||||
Oyster Point [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayment of secured debt | $ 6,100,000 | |||||||||||||
Whetstone Apartments [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayment of term loan facility | $ 17,800,000 | |||||||||||||
Loss on extinguishment of debt | $ 100,000 | |||||||||||||
Smith's Landing [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Amount borrowed under credit facility | $ 21,600,000 | |||||||||||||
Debt instrument maturity date | Jun. 1, 2035 | |||||||||||||
Repayment of term loan facility | 24,400,000 | |||||||||||||
Loss on extinguishment of debt | $ 100,000 | |||||||||||||
Smith's Landing [Member] | Collateralized Mortgage Obligations [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt assumed, interest rate | 4.05% | |||||||||||||
Johns Hopkins Village [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument maturity date | Jul. 30, 2018 | |||||||||||||
Johns Hopkins Village [Member] | Construction Loans [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Aggregate amount available under the construction loan | $ 50,000,000 | |||||||||||||
Johns Hopkins Village [Member] | LIBOR [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate, basis spread on variable rate | 1.90% | |||||||||||||
Subsequent Event [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate, basis spread on variable rate | 2.00% | |||||||||||||
Revolving Credit Facility [Member] | New Credit Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument maturity date | Feb. 20, 2019 | |||||||||||||
Revolving credit facility, extension option | 1 year | |||||||||||||
Revolving Credit Facility [Member] | Minimum [Member] | New Credit Facility [Member] | LIBOR [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate, basis spread on variable rate | 1.40% | |||||||||||||
Revolving Credit Facility [Member] | Maximum [Member] | New Credit Facility [Member] | LIBOR [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate, basis spread on variable rate | 2.00% | |||||||||||||
Senior Unsecured Term Loan Facility [Member] | Minimum [Member] | LIBOR [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate, basis spread on variable rate | 1.35% | |||||||||||||
Senior Unsecured Term Loan Facility [Member] | Maximum [Member] | LIBOR [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate, basis spread on variable rate | 1.95% | |||||||||||||
Term Loan Facility [Member] | New Credit Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument maturity date | Feb. 20, 2020 | |||||||||||||
Term Loan Facility [Member] | Minimum [Member] | New Credit Facility [Member] | LIBOR [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate, basis spread on variable rate | 1.35% | |||||||||||||
Term Loan Facility [Member] | Maximum [Member] | New Credit Facility [Member] | LIBOR [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate, basis spread on variable rate | 1.95% | |||||||||||||
Operating Partnership [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Amount borrowed under loan agreements for construction | $ 17,700,000 | |||||||||||||
Operating Partnership [Member] | New Credit Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Amount borrowed under credit facility | $ 54,000,000 | |||||||||||||
Repayment of term loan facility | 50,000,000 | |||||||||||||
Repayment of other indebtedness | 39,000,000 | |||||||||||||
Loss on extinguishment of debt | 200,000 | |||||||||||||
Credit facility, amount outstanding | $ 106,000,000 | $ 106,000,000 | ||||||||||||
Operating Partnership [Member] | Prior Credit Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Amount borrowed under credit facility | $ 5,000,000 | |||||||||||||
Debt instrument maturity date | May 13, 2016 | |||||||||||||
Credit facility termination date | Feb. 20, 2015 | |||||||||||||
Operating Partnership [Member] | Subsequent Event [Member] | Oyster Point [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument maturity date | Feb. 28, 2017 | |||||||||||||
Secured debt | $ 6,400,000 | |||||||||||||
Operating Partnership [Member] | Subsequent Event [Member] | Oyster Point [Member] | Minimum [Member] | LIBOR [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate, basis spread on variable rate | 1.40% | |||||||||||||
Operating Partnership [Member] | Subsequent Event [Member] | Oyster Point [Member] | Maximum [Member] | LIBOR [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate, basis spread on variable rate | 2.00% | |||||||||||||
Operating Partnership [Member] | Revolving Credit Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument maturity date | May 13, 2016 | |||||||||||||
Senior revolving credit facility, maximum borrowing capacity | $ 155,000,000 | |||||||||||||
Operating Partnership [Member] | Revolving Credit Facility [Member] | New Credit Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate | 1.75% | 1.75% | ||||||||||||
Operating Partnership [Member] | Senior Unsecured Credit Facility [Member] | New Credit Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Senior revolving credit facility, maximum borrowing capacity | 200,000,000 | |||||||||||||
Operating Partnership [Member] | Senior Unsecured Revolving Credit Facility [Member] | New Credit Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Senior revolving credit facility, maximum borrowing capacity | 150,000,000 | |||||||||||||
Operating Partnership [Member] | Senior Unsecured Term Loan Facility [Member] | New Credit Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Senior unsecured term loan facility | $ 50,000,000 | |||||||||||||
Operating Partnership [Member] | Term Loan Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Credit facility, amount outstanding | $ 50,000,000 | $ 50,000,000 | ||||||||||||
Operating Partnership [Member] | Term Loan Facility [Member] | New Credit Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate | 1.70% | 1.70% | ||||||||||||
Oceaneering International Facility [Member] | Subsequent Event [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayment of secured debt | $ 18,700,000 |
Derivative Financial Instrume31
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | Oct. 26, 2015 | Oct. 15, 2015 | Feb. 20, 2015 | Sep. 30, 2015 | Jul. 13, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||||||
Notional Amount | $ 228,686,000 | $ 181,119,000 | ||||
Senior unsecured term loan facility | $ 50,000,000 | |||||
Subsequent Event [Member] | ||||||
Derivative [Line Items] | ||||||
Senior unsecured term loan facility interest rate | 2.00% | |||||
Interest Rate Caps [Member] | ||||||
Derivative [Line Items] | ||||||
Notional Amount | $ 171,546,000 | $ 180,434,000 | ||||
Interest Rate Caps [Member] | Subsequent Event [Member] | ||||||
Derivative [Line Items] | ||||||
Notional Amount | $ 75,000,000 | |||||
Fixed rate interest rate swap, Maturity date | Oct. 15, 2017 | |||||
Interest rate cap agreement, strike price | 1.25% | |||||
Interest rate cap agreement, premium | $ 100,000 | |||||
One-month LIBOR [Member] | Interest Rate Swap Agreement Maturing on February 20, 2020 [Member] | ||||||
Derivative [Line Items] | ||||||
Notional Amount | $ 50,000,000 | |||||
Fixed rate interest rate swap | 2.00% | |||||
Fixed rate interest rate swap, agreement date | Feb. 20, 2015 | |||||
Fixed rate interest rate swap, Maturity date | Feb. 20, 2020 | |||||
Fixed rate interest rate swap, Effective date | Mar. 1, 2016 | |||||
One-month LIBOR [Member] | Interest Rate Swap Agreement Maturing on April 5, 2018 [Member] | ||||||
Derivative [Line Items] | ||||||
Notional Amount | $ 6,500,000 | |||||
Fixed rate interest rate swap | 3.05% | |||||
Fixed rate interest rate swap, agreement date | Jul. 13, 2015 | |||||
Fixed rate interest rate swap, Maturity date | Apr. 5, 2018 | |||||
Fixed rate interest rate swap, Effective date | Jul. 13, 2015 | |||||
LIBOR [Member] | Minimum [Member] | Senior Unsecured Term Loan Facility [Member] | ||||||
Derivative [Line Items] | ||||||
Senior unsecured term loan facility interest rate | 1.35% | |||||
LIBOR [Member] | Maximum [Member] | Senior Unsecured Term Loan Facility [Member] | ||||||
Derivative [Line Items] | ||||||
Senior unsecured term loan facility interest rate | 1.95% |
Derivative Financial Instrume32
Derivative Financial Instruments - Schedule of Derivatives (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Derivative [Line Items] | |||||
Notional Amount | $ 228,686,000 | $ 228,686,000 | $ 181,119,000 | ||
Fair Value Asset | 22,000 | 22,000 | 260,000 | ||
Fair Value Liability | (1,585,000) | (1,585,000) | (11,000) | ||
Changes in fair value of derivatives | (238,000) | $ (123,000) | |||
Total Changes in fair value of derivatives | (1,077,000) | $ 46,000 | (1,812,000) | (123,000) | |
Unrealized cash flow hedge gains (losses) [Member] | |||||
Derivative [Line Items] | |||||
Changes in fair value of derivatives | (1,026,000) | (1,574,000) | |||
Other Income (Loss) [Member] | |||||
Derivative [Line Items] | |||||
Changes in fair value of derivatives | (51,000) | 46,000 | (238,000) | (123,000) | |
Interest Rate Swaps [Member] | |||||
Derivative [Line Items] | |||||
Notional Amount | 57,140,000 | 57,140,000 | 685,000 | ||
Fair Value Liability | (1,585,000) | (1,585,000) | (11,000) | ||
Changes in fair value of derivatives | (1,026,000) | 4,000 | (1,574,000) | 5,000 | |
Interest Rate Caps [Member] | |||||
Derivative [Line Items] | |||||
Notional Amount | 171,546,000 | 171,546,000 | 180,434,000 | ||
Fair Value Asset | 22,000 | 22,000 | $ 260,000 | ||
Changes in fair value of derivatives | $ (51,000) | $ 42,000 | $ (238,000) | $ (128,000) |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | Jan. 10, 2017 | Oct. 08, 2015 | Aug. 06, 2015 | Jul. 10, 2015 | Jul. 09, 2015 | May. 05, 2015 | Apr. 09, 2015 | Apr. 08, 2015 | Jan. 08, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Class of Stock [Line Items] | ||||||||||||||
Net proceeds after offering costs and commissions from sale of shares | $ 7,400,000 | |||||||||||||
Authorized capital shares of common stock | 500,000,000 | 500,000,000 | 500,000,000 | |||||||||||
Authorized capital shares of preferred stock | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||||
Shares of common stock issued | 26,260,685 | 26,260,685 | 25,022,701 | |||||||||||
Shares of common stock outstanding | 26,260,685 | 26,260,685 | 25,022,701 | |||||||||||
Preferred stock issued | 0 | 0 | 0 | |||||||||||
Preferred stock outstanding | 0 | 0 | 0 | |||||||||||
Percentage of Operating Partnership held | 62.50% | 62.50% | 62.90% | |||||||||||
Aggregate cash dividends and distributions, paid | $ 20,050,000 | $ 15,729,000 | ||||||||||||
Cash dividend per share, declared | $ 0.17 | $ 0.16 | $ 0.51 | $ 0.48 | ||||||||||
Common Class A [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Common stock units not held by company | 14,768,507 | 14,768,507 | ||||||||||||
Columbus Village in Virginia Beach [Member] | Class B Units [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Acquisition, common stock issued | 1,000,000 | |||||||||||||
Columbus Village in Virginia Beach [Member] | Class C Units [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Acquisition, common stock issued | 275,000 | |||||||||||||
Columbus Village in Virginia Beach [Member] | Scenario, Forecast [Member] | Class C Units [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Acquisition, common stock issued | 275,000 | |||||||||||||
Common Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Number of shares issued and sold | 747,163 | |||||||||||||
Numbers shares issued and sold, weighted average price per share | $ 10.29 | $ 10.29 | ||||||||||||
Shares of common stock outstanding | 26,260,685 | 26,260,685 | 25,022,701 | |||||||||||
Maximum [Member] | Common Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Proceeds from issuance of common stock | $ 50,000,000 | |||||||||||||
Private Placement [Member] | Perry Hall Marketplace [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Acquisition, common stock issued | 415,500 | |||||||||||||
Common Stockholders [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Aggregate cash dividends and distributions, paid | $ 4,400,000 | $ 4,300,000 | $ 4,000,000 | |||||||||||
Common Stockholders [Member] | Subsequent Event [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Aggregate cash dividends and distributions, paid | $ 4,500,000 | |||||||||||||
Class A Unit Holders [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Aggregate cash dividends and distributions, paid | $ 2,500,000 | $ 2,500,000 | $ 2,400,000 | |||||||||||
Class A Unit Holders [Member] | Subsequent Event [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Aggregate cash dividends and distributions, paid | $ 2,500,000 | |||||||||||||
Dividend Declared [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Cash dividend per share, declared | $ 0.17 | |||||||||||||
Cash dividend, date of record | Oct. 1, 2015 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 200,000 | $ 300,000 | $ 1,000,000 | $ 1,200,000 |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock granted | 104,779 | |||
Restricted stock granted, grant date fair value | $ 10.85 | |||
Restricted stock award, vesting period | 2 years | |||
Restricted stock award vest grant over period | 1 year | |||
Unrecognized compensation cost | $ 500,000 | $ 500,000 | ||
Nonvested restricted shares outstanding | 102,322 | 102,322 | ||
Unrecognized compensation cost, recognition period | 18 months | |||
Restricted Stock [Member] | Immediately on the Grant Date [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock award, percentage vested on grant date | 33.33% | |||
Restricted Stock [Member] | First Anniversary following the Grant Date [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock award, percentage vested on grant date | 33.33% | |||
Restricted Stock [Member] | Second Anniversary following the Grant Date [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock award, percentage vested on grant date | 33.33% |
Fair Value of Financial Instr35
Fair Value of Financial Instruments - Carrying Amounts and Fair Values of Financial Instruments Measured based on Level Two Inputs (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Indebtedness | $ 420,145 | $ 359,229 |
Interest rate swap liabilities | 1,585 | 11 |
Interest rate cap assets | 22 | 260 |
Carrying Value [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Indebtedness | 420,145 | 359,229 |
Interest rate swap liabilities | 1,585 | 11 |
Interest rate cap assets | 22 | 260 |
Fair Value [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Indebtedness | 426,848 | 366,095 |
Interest rate swap liabilities | 1,585 | 11 |
Interest rate cap assets | $ 22 | $ 260 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Affiliated Entities [Member] - USD ($) | Mar. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Related Party Transaction [Line Items] | |||||
Revenue from contracts with affiliated entities | $ 1,500,000 | $ 1,100,000 | $ 5,500,000 | $ 5,000,000 | |
Gross profit | $ 200,000 | $ 300,000 | |||
Reimbursed real estate taxes and insurance costs | $ 200,000 | ||||
Maximum [Member] | |||||
Related Party Transaction [Line Items] | |||||
Gross profit | $ 100,000 | $ 100,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Loss Contingencies [Line Items] | ||
Line of credit, performance and payment bonds | $ 204.7 | $ 192.2 |
Operating Partnership [Member] | ||
Loss Contingencies [Line Items] | ||
Outstanding letters of credit | $ 8 | $ 8.5 |