Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Armada Hoffler Properties, Inc. | |
Entity Central Index Key | 1,569,187 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 49,627,792 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Real estate investments: | ||
Income producing property | $ 1,023,658 | $ 910,686 |
Held for development | 2,979 | 680 |
Construction in progress | 139,450 | 83,071 |
Gross real estate investments | 1,166,087 | 994,437 |
Accumulated depreciation | (185,831) | (164,521) |
Net real estate investments | 980,256 | 829,916 |
Cash and cash equivalents | 17,732 | 19,959 |
Restricted cash | 2,916 | 2,957 |
Accounts receivable, net | 18,224 | 15,691 |
Notes receivable | 100,486 | 83,058 |
Construction receivables, including retentions | 21,959 | 23,933 |
Construction contract costs and estimated earnings in excess of billings | 727 | 245 |
Equity method investments | 16,811 | 11,411 |
Other assets | 58,747 | 55,953 |
Total Assets | 1,217,858 | 1,043,123 |
LIABILITIES AND EQUITY | ||
Indebtedness, net | 653,750 | 517,272 |
Accounts payable and accrued liabilities | 15,752 | 15,180 |
Construction payables, including retentions | 45,541 | 47,445 |
Billings in excess of construction contract costs and estimated earnings | 1,767 | 3,591 |
Other liabilities | 40,912 | 39,352 |
Total Liabilities | 757,722 | 622,840 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, 100,000,000 shares authorized, none issued and outstanding as of September 30, 2018 and December 31, 2017 | 0 | 0 |
Common stock, $0.01 par value, 500,000,000 shares authorized, 49,576,222 and 44,937,763 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively | 496 | 449 |
Additional paid-in capital | 350,849 | 287,407 |
Distributions in excess of earnings | (76,386) | (61,166) |
Accumulated other comprehensive loss | (47) | 0 |
Total stockholders’ equity | 274,912 | 226,690 |
Noncontrolling interests | 185,224 | 193,593 |
Total Equity | 460,136 | 420,283 |
Total Liabilities and Equity | $ 1,217,858 | $ 1,043,123 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 49,576,222 | 44,937,763 |
Common stock, shares outstanding (in shares) | 49,576,222 | 44,937,763 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues | ||||
Rental revenues | $ 28,930 | $ 27,096 | $ 86,227 | $ 81,083 |
Total revenues | 48,880 | 68,297 | 149,881 | 242,474 |
Expenses | ||||
Rental expenses | 7,103 | 6,830 | 20,049 | 19,069 |
Real estate taxes | 2,840 | 2,693 | 8,388 | 7,797 |
Depreciation and amortization | 10,196 | 9,239 | 28,653 | 28,018 |
General and administrative expenses | 2,367 | 2,098 | 8,092 | 7,762 |
Acquisition, development and other pursuit costs | 69 | 61 | 162 | 477 |
Impairment charges | 3 | 19 | 101 | 50 |
Total expenses | 41,551 | 60,317 | 126,919 | 217,761 |
Operating income | 7,329 | 7,980 | 22,962 | 24,713 |
Interest income | 2,545 | 1,910 | 7,152 | 4,966 |
Interest expense | (4,677) | (4,253) | (13,547) | (13,282) |
Loss on extinguishment of debt | (11) | 0 | (11) | 0 |
Gain on real estate dispositions | 0 | 4,692 | 0 | 8,087 |
Change in fair value of interest rate derivatives | 298 | 87 | 1,256 | 300 |
Other income | 65 | 74 | 233 | 154 |
Income before taxes | 5,549 | 10,490 | 18,045 | 24,938 |
Income tax benefit (provision) | 120 | (29) | 552 | (781) |
Net income | 5,669 | 10,461 | 18,597 | 24,157 |
Net income attributable to noncontrolling interests | (1,467) | (2,973) | (5,036) | (7,262) |
Net income attributable to stockholders | $ 4,202 | $ 7,488 | $ 13,561 | $ 16,895 |
Net income attributable to stockholders per share (basic and diluted) (in dollars per share) | $ 0.09 | $ 0.17 | $ 0.29 | $ 0.41 |
Weighted-average common shares outstanding (basic and diluted) (in shares) | 49,194 | 44,934 | 46,766 | 41,575 |
Dividends and distributions declared per common share and unit (in dollars per share) | $ 0.20 | $ 0.19 | $ 0.60 | $ 0.57 |
Comprehensive income: | ||||
Net income | $ 5,669 | $ 10,461 | $ 18,597 | $ 24,157 |
Unrealized cash flow hedge losses | (130) | 0 | (130) | 0 |
Realized cash flow hedge losses reclassified to net income | 67 | 0 | 67 | 0 |
Comprehensive income | 5,606 | 10,461 | 18,534 | 24,157 |
Comprehensive income attributable to noncontrolling interests | (1,450) | (2,973) | (5,019) | (7,262) |
Comprehensive income attributable to stockholders | 4,156 | 7,488 | 13,515 | 16,895 |
General contracting and real estate services | ||||
General contracting and real estate services revenues | 19,950 | 41,201 | 63,654 | 161,391 |
General contracting and real estate services expenses | $ 18,973 | $ 39,377 | $ 61,474 | $ 154,588 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Equity - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Distributions in excess of earnings | Accumulated other comprehensive loss | Total stockholders' equity | Noncontrolling interests |
Beginning balance (in shares) at Dec. 31, 2017 | 44,937,763 | 44,937,763 | |||||
Beginning balance at Dec. 31, 2017 | $ 420,283 | $ 449 | $ 287,407 | $ (61,166) | $ 0 | $ 226,690 | $ 193,593 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 18,597 | 13,561 | 13,561 | 5,036 | |||
Unrealized cash flow hedge losses | (130) | (97) | (97) | (33) | |||
Realized cash flow hedge losses reclassified to net income | 67 | 50 | 50 | 17 | |||
Net proceeds from sales of common stock (in shares) | 4,227,978 | ||||||
Net proceeds from sales of common stock | 59,529 | $ 42 | 59,487 | 59,529 | |||
Restricted stock awards, net of tax withholding (in shares) | 127,275 | ||||||
Restricted stock awards, net of tax withholding | 1,311 | $ 2 | 1,309 | 1,311 | |||
Restricted stock award forfeitures (in shares) | (3,298) | ||||||
Restricted stock award forfeitures | (26) | (26) | (26) | ||||
Issuance of operating partnership units for acquisitions | 2,196 | (5) | (5) | 2,201 | |||
Redemption of operating partnership units (in shares) | 286,504 | ||||||
Redemption of operating partnership units | (2,531) | $ 3 | 2,677 | 2,680 | (5,211) | ||
Dividends and distributions declared | $ (39,160) | (28,781) | (28,781) | (10,379) | |||
Ending balance, shares (in shares) at Sep. 30, 2018 | 49,576,222 | 49,576,222 | |||||
Ending balance at Sep. 30, 2018 | $ 460,136 | $ 496 | $ 350,849 | $ (76,386) | $ (47) | $ 274,912 | $ 185,224 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 18,597 | $ 24,157 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of buildings and tenant improvements | 21,404 | 19,385 |
Amortization of leasing costs and in-place lease intangibles | 7,249 | 8,633 |
Accrued straight-line rental revenue | (1,789) | (927) |
Amortization of leasing incentives and above or below-market rents | (211) | (140) |
Accrued straight-line ground rent expense | 187 | 401 |
Bad debt expense | 245 | 425 |
Noncash stock compensation | 1,072 | 1,047 |
Impairment charges | 101 | 50 |
Noncash interest expense | 827 | 940 |
Loss on extinguishment of debt | 11 | 0 |
Gain on real estate dispositions | 0 | (8,087) |
Change in the fair value of interest rate derivatives | (1,256) | (300) |
Changes in operating assets and liabilities: | ||
Property assets | (3,610) | (3,871) |
Property liabilities | 2,031 | 3,498 |
Construction assets | 3,044 | 4,065 |
Construction liabilities | (13,558) | (12,648) |
Interest receivable | (7,147) | (4,962) |
Net cash provided by operating activities | 27,197 | 31,666 |
INVESTING ACTIVITIES | ||
Development of real estate investments | (102,183) | (28,731) |
Tenant and building improvements | (8,281) | (8,104) |
Acquisitions of real estate investments, net of cash received | (57,541) | (28,020) |
Dispositions of real estate investments, net of selling costs | 4,271 | 12,557 |
Notes receivable issuances | (10,281) | (10,792) |
Leasing costs | (4,048) | (149) |
Leasing incentives | (95) | (147) |
Contributions to equity method investments | (5,400) | (934) |
Net cash used for investing activities | (183,558) | (64,320) |
FINANCING ACTIVITIES | ||
Proceeds from sales of common stock | 60,439 | 96,044 |
Offering costs | (910) | (4,663) |
Common shares tendered for tax withholding | (343) | (289) |
Debt issuances, credit facility and construction loan borrowings | 274,427 | 124,206 |
Debt and credit facility repayments, including principal amortization | (138,122) | (152,201) |
Debt issuance costs | (1,317) | (751) |
Redemption of operating partnership units | (2,531) | (229) |
Dividends and distributions | (37,550) | (31,740) |
Net cash provided by financing activities | 154,093 | 30,377 |
Net decrease in cash and cash equivalents | (2,268) | (2,277) |
Cash, cash equivalents, and restricted cash, beginning of period | 22,916 | 25,193 |
Cash, cash equivalents, and restricted cash, end of period | 20,648 | 22,916 |
Supplemental Disclosures (noncash transactions): | ||
Increase in dividends payable | 1,610 | 2,214 |
Increase (decrease) in accounts payable and accrued liabilities for capital expenditures | 10,103 | (5,874) |
Issuance of operating partnership units for acquisitions | 1,702 | 982 |
Operating Partnership units redeemed for common shares | 3,151 | 0 |
Redeemable noncontrolling interest from development | 0 | 2,000 |
Deferred payment for land acquisition | $ 0 | $ 600 |
Business of Organization
Business of Organization | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business of Organization | Business of 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 primarily throughout the Mid-Atlantic and Southeastern United States. The Company is the sole general partner of Armada Hoffler, L.P. (the “Operating Partnership”) and, as of September 30, 2018 , owned 74.3% of the economic interest in the Operating Partnership, of which 0.1% is held as general partnership units. The operations of the Company are carried on primarily through the Operating Partnership and the wholly owned subsidiaries of the Operating Partnership. As of September 30, 2018 , the Company's property portfolio consisted of 50 operating properties and 10 development properties. Refer to Note 4 for information related to the Company's recent acquisitions and dispositions of operating properties. Refer to Note 5 for information related to the Company’s investment in Durham City Center II, LLC, which is an unconsolidated subsidiary that the Company accounts for using the equity method of accounting. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 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 and its consolidated 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, 2017 . 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 significantly from management’s estimates. Reclassifications During the second quarter of 2018, the Company identified certain immaterial classification errors on the Company's Consolidated Statements of Cash Flows and determined that, in the Quarterly Report on Form 10-Q for the quarter ended June 30, 2018 and future periodic reports, the Company will correct these classification errors. One classification error will be corrected by including within the changes in operating assets and liabilities in the operating activities section a new line item for "Interest receivable." A corresponding adjustment will be recorded to reduce the amount of "Notes receivable issuances" within investing activities on the consolidated statement of cash flows. These reclassifications totaled $7.1 million , $3.2 million , and $0.1 million during the years ended December 31, 2017, 2016, and 2015, respectively and $5.0 million for the nine months ended September 30, 2017. These reclassifications will decrease "Net cash provided by operating activities" and "Net cash used for investing activities" by an equal and offsetting amount. These reclassifications will not have any impact on the Consolidated Balance Sheets, Consolidated Statements of Income, Consolidated Statement of Equity, or any other operating measure for the periods affected. These amounts were previously presented as "Notes receivable issuances," a component of net cash used for investing activities on the Consolidated Statements of Cash Flows, resulting in overstatements in cash provided by operating activities and overstatements of cash used in investing activities. These amounts represent interest earned on mezzanine loans that were funded by additional borrowings as provided for in the mezzanine loan agreements. These amounts are now classified as changes in interest receivable, a non-cash adjustment to calculate net cash provided by operating activities. The second classification error will be corrected by including within financing activities on the Consolidated Statements of Cash Flows a new line item for “Common shares tendered for tax withholding.” A corresponding adjustment will be recorded to the "Changes in operating assets and liabilities: Property liabilities" within operating activities on the Consolidated Statements of Cash Flows. This reclassification totaled $0.3 million , $0.2 million , and $0.3 million during the years ended December 31, 2017, 2016, and 2015, respectively and $0.3 million for the nine months ended September 30, 2017. These reclassifications will increase “Net cash provided by operating activities” and decrease “Net cash provided by financing activities” by an equal and offsetting amount. Significant Accounting Policies General Contracting and Real Estate Services Revenues On January 1, 2018, the Company adopted the new accounting standard codified in Accounting Standards Codification 606 - Revenue from Contracts with Customers (see also "Recent Accounting Pronouncements" below). The Company recognizes general contracting revenues as a customer obtains control of promised goods or services in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. For each construction contract, the Company identifies the performance obligations, which typically include the delivery of a single building constructed according to the specifications of the contract. The Company estimates the total transaction price, which generally includes a fixed contract price and may also include variable components such as early completion bonuses, liquidated damages, or cost savings to be shared with the customer. Variable components of the contract price are included in the transaction price to the extent that it is probable that a significant reversal of revenue will not occur. The Company recognizes the estimated transaction price as revenue as it satisfies its performance obligations, and the Company estimates its progress in satisfying performance obligations for each contract using the percentage-of-completion method, based on the proportion of incurred costs to total estimated construction costs at completion. Construction contract costs include all direct material, direct labor, subcontract costs, and overhead costs directly related to contract performance. Changes in job performance, job conditions, and estimated profitability, including those arising from contract penalty provisions and final contract settlements, are all significant judgments that may result in revisions to costs and income and are recognized in the period in which they are determined. Provisions for estimated losses on uncompleted contracts are recognized immediately in the period in which such losses are determined. The Company defers pre-contract costs when such costs are directly associated with specific anticipated contracts and their recovery is probable. The Company recognizes real estate services revenues from property development and management services as it satisfies its performance obligations under these service arrangements. The Company assesses whether multiple contracts with a single counterparty should be combined into a single contract for revenue recognition purposes based on factors such as the timing of the negotiation and execution of the contracts and whether the economic substance of the contracts was contemplated separately or in tandem. See the Company's Annual Report on Form 10-K for the year ended December 31, 2017 for a description of other accounting principles upon which basis the accompanying consolidated financial statements were prepared. 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 changes the way the Company recognizes revenue from construction and development contracts with third party customers. The Company adopted this standard on January 1, 2018 using the modified retrospective method, applying this standard to all contracts not yet completed as of that date. In applying the standard to the Company’s future construction contracts, certain pre-contract costs incurred by the Company are now deferred and amortized over the period during which construction obligations are fulfilled. Previously, these costs were immediately recorded as general contracting expenses upon commencement of construction, with the corresponding general contracting revenue also recorded. Applying the standard to the Company’s uncompleted contracts as of January 1, 2018 did not result in material differences to these contracts in aggregate, and no cumulative adjustment to distributions in excess of earnings was recorded as of January 1, 2018. On February 25, 2016, the FASB issued a new lease standard that requires lessees to recognize most leases in their balance sheets as lease liabilities with corresponding right-of-use assets. The new standard also makes targeted changes to lessor accounting. The new standard will be effective for the Company on January 1, 2019 and requires a modified retrospective transition approach for all leases existing at, or entered into after, the beginning of the earliest comparative period presented, with an option to use certain transition relief. Management is currently evaluating the potential impact of the new standard on the Company’s consolidated financial statements. The Company is the lessee on certain long-term ground leases, which represents a majority of the Company's current operating lease payments, and expects to record right-of-use assets and lease liabilities for these leases under the new standard. The Company anticipates utilizing certain transition relief under the new standard that will allow the Company not to apply certain aspects of the new standard to its existing leases. In 2016, the FASB issued new guidance that addresses eight classification issues related to the statement of cash flows and requires the presentation of total changes in cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. The Company adopted this new guidance on December 31, 2017, applying it retrospectively to each period presented. The new guidance requires that the statement of cash flows show changes in restricted cash in addition to changes in cash and cash equivalents. No additional changes were required to be made to the Company's consolidated statements of cash flows as a result of the new guidance. The following table sets forth the items from the Company's consolidated balance sheets that are included in cash, cash equivalents, and restricted cash in the consolidated statements of cash flows (in thousands): Balance as of September 30, 2018 December 31, 2017 September 30, 2017 December 31, 2016 Cash and cash equivalents $ 17,732 $ 19,959 $ 19,721 $ 21,942 Restricted cash 2,916 2,957 3,195 3,251 Cash, cash equivalents, and restricted cash $ 20,648 $ 22,916 $ 22,916 $ 25,193 The following table summarizes the changes made to net cash provided by operating activities, net cash used for investing activities, and net cash provided by financing activities in the consolidated statement of cash flows for the nine months ended September 30, 2017 on a retrospective basis (in thousands) as a result of the new guidance as well as the reclassification adjustments described in the "Reclassifications" section above: Nine months ended September 30, 2017 Operating activities as originally presented $ 36,598 Adjustment relating to restricted cash (259 ) Adjustment for shares tendered for tax withholding 289 Adjustment relating to interest income presentation (4,962 ) Operating activities after adjustments $ 31,666 Investing activities as originally presented $ (69,485 ) Adjustment relating to restricted cash 203 Adjustment relating to interest income presentation 4,962 Investing activities after adjustments $ (64,320 ) Financing activities as originally presented $ 30,666 Adjustment for shares tendered for tax withholding (289 ) Financing activities after adjustments $ 30,377 On February 22, 2017, the FASB issued new guidance that clarifies the scope and application of guidance on sales or transfers of nonfinancial assets and in substance nonfinancial assets to customers, including partial sales. The new guidance applies to all nonfinancial assets, including real estate, and defines an in substance nonfinancial asset. The Company adopted the new guidance on January 1, 2018, and it did not have a material impact on the Company’s consolidated financial statements. On August 28, 2017, the FASB issued new guidance that simplifies some of the requirements relating to accounting for derivatives and hedging. The new guidance eliminates the requirement to separately measure and report hedge ineffectiveness for a highly effective hedge and also simplifies certain documentation and assessment requirements relating to the determination of hedge effectiveness. The Company adopted this guidance effective July 1, 2018. The application of this guidance to hedging relationships could reduce or eliminate the gains and losses that would otherwise be recorded in net income for these derivative instruments. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segments | 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, 2018 and 2017 was as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 (Unaudited) Office real estate Rental revenues $ 5,149 $ 4,762 $ 15,537 $ 14,427 Rental expenses 1,551 1,447 4,435 4,138 Real estate taxes 515 481 1,519 1,381 Segment net operating income 3,083 2,834 9,583 8,908 Retail real estate Rental revenues 16,932 15,880 50,251 47,089 Rental expenses 2,761 2,699 7,974 7,698 Real estate taxes 1,703 1,588 5,041 4,557 Segment net operating income 12,468 11,593 37,236 34,834 Multifamily residential real estate Rental revenues 6,849 6,454 20,439 19,567 Rental expenses 2,791 2,684 7,640 7,233 Real estate taxes 622 624 1,828 1,859 Segment net operating income 3,436 3,146 10,971 10,475 General contracting and real estate services Segment revenues 19,950 41,201 63,654 161,391 Segment expenses 18,973 39,377 61,474 154,588 Segment gross profit 977 1,824 2,180 6,803 Net operating income $ 19,964 $ 19,397 $ 59,970 $ 61,020 General contracting and real estate services revenues for the three months ended September 30, 2018 and 2017 exclude revenue related to intercompany construction contracts of $38.5 million and $13.9 million , respectively. General contracting and real estate services revenues for the nine months ended September 30, 2018 and 2017 exclude revenue related to intercompany construction contracts of $98.6 million and $31.3 million , respectively. General contracting and real estate services expenses for the three months ended September 30, 2018 and 2017 exclude expenses related to intercompany construction contracts of $38.2 million and $13.7 million , respectively. General contracting and real estate services expenses for the nine months ended September 30, 2018 and 2017 exclude expenses related to intercompany construction contracts of $97.7 million and $31.0 million , respectively. General contracting and real estate services expenses for the three months ended September 30, 2018 and 2017 include noncash stock compensation expense of less than $0.1 million for each period. General contracting and real estate services expenses for the nine months ended September 30, 2018 and 2017 include noncash stock compensation expense of $0.2 million for each period. The following table reconciles net operating income to net income, the most directly comparable GAAP measure, for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 (Unaudited) Net operating income $ 19,964 $ 19,397 $ 59,970 $ 61,020 Depreciation and amortization (10,196 ) (9,239 ) (28,653 ) (28,018 ) General and administrative expenses (2,367 ) (2,098 ) (8,092 ) (7,762 ) Acquisition, development and other pursuit costs (69 ) (61 ) (162 ) (477 ) Impairment charges (3 ) (19 ) (101 ) (50 ) Interest income 2,545 1,910 7,152 4,966 Interest expense (4,677 ) (4,253 ) (13,547 ) (13,282 ) Loss on extinguishment of debt (11 ) — (11 ) — Gain on real estate dispositions — 4,692 — 8,087 Change in fair value of interest rate derivatives 298 87 1,256 300 Other income 65 74 233 154 Income tax benefit (provision) 120 (29 ) 552 (781 ) Net income $ 5,669 $ 10,461 $ 18,597 $ 24,157 General and administrative expenses for the three months ended September 30, 2018 and 2017 include noncash stock compensation expense of $0.2 million for each period. General and administrative expenses for the nine months ended September 30, 2018 and 2017 include noncash stock compensation expense of $0.9 million and $0.8 million , respectively. |
Real Estate Investment
Real Estate Investment | 9 Months Ended |
Sep. 30, 2018 | |
Real Estate [Abstract] | |
Real Estate Investment | Real Estate Investment Property Acquisitions On January 9, 2018, the Company acquired Indian Lakes Crossing, a Harris Teeter-anchored shopping center in Virginia Beach, Virginia, for a contract price of $14.7 million plus capitalized acquisition costs of $0.2 million . On January 29, 2018, the Company acquired Parkway Centre, a newly developed Publix-anchored shopping center in Moultrie, Georgia, for total consideration of $11.3 million (comprised of $9.6 million in cash and $1.7 million in the form of Class A units of limited partnership interest in the Operating Partnership ("Class A Units")) plus capitalized acquisition costs of $0.3 million . On August 28, 2018, the Company acquired Lexington Square, a newly developed Lowes Foods-anchored shopping center in Lexington, South Carolina, for a purchase price of $26.8 million , consisting of cash consideration of $24.2 million and $2.6 million of additional consideration in the form of Class A Units issuable in increments to the seller upon the fulfillment of certain occupancy thresholds within the first 18 months of the Company's ownership. No Class A Units have been issued as of September 30, 2018 for this acquisition. As part of this transaction, the Company also capitalized acquisition costs of $0.4 million . The following table summarizes the purchase price allocation (including acquisition costs) based on relative fair value of the assets acquired and liabilities assumed for the three operating properties purchased during the nine months ended September 30, 2018 (in thousands): Indian Lakes Crossing Parkway Centre Lexington Square Land $ 10,926 $ 1,372 $ 3,036 Site improvements 531 696 7,396 Building and improvements 1,913 7,168 10,387 In-place leases 1,648 2,346 4,113 Above-market leases 11 — 89 Below-market leases (175 ) (10 ) (447 ) Net assets acquired $ 14,854 $ 11,572 $ 24,574 On November 30, 2017, the Company entered into a lease agreement with Bottling Group, LLC for a new distribution facility that the Company will develop and construct for expected delivery in the fourth quarter of 2018. On January 29, 2018, the Company acquired undeveloped land in Chesterfield, Virginia, a portion of which currently serves as the site for this facility, for a contract price of $2.4 million plus capitalized acquisition costs of $0.1 million . On January 18, 2018, the Company entered into an operating agreement with a partner to develop a Lowes Foods-anchored shopping center in Mount Pleasant, South Carolina. The Company has a 70% ownership interest in the partnership. The partnership, Market at Mill Creek Partners, LLC, acquired undeveloped land on February 16, 2018 for a contract price of $2.9 million plus capitalized acquisition costs of $0.1 million . The Company is responsible for funding the equity requirements of this development. As of September 30, 2018 , the book value of the Company's investment in the project totaled $14.2 million . Management has concluded that this entity is a variable interest entity ("VIE") as it lacks sufficient equity to fund its operations without additional financial support. The Company is the developer of the shopping center and has the power to direct the activities of the project that most significantly impact its performance and is the party most closely associated with the project. Therefore, the Company is the project's primary beneficiary and consolidates the project in its consolidated financial statements. On April 2, 2018, the Company acquired undeveloped land in Newport News, Virginia for less than $0.1 million . This land parcel is being used in the development of the Brooks Crossing office property. On July 2, 2018, the Company executed a ground lease for the site of a new mixed-use development project at Wills Wharf, a site in the Harbor Point area of Baltimore, Maryland. The lease has an initial term of five years and includes ten extension options of seven years each. Property Disposition On May 24, 2018, the Company completed the sale of the Wawa outparcel at Indian Lakes Crossing for a contract price of $4.4 million . There was no gain or loss on the disposition. |
Equity Method Investment
Equity Method Investment | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | Equity Method Investment City Center On February 25, 2016, the Company acquired a 37% interest in Durham City Center II, LLC (“City Center”) for purposes of developing a 22 -story mixed use tower in Durham, North Carolina. During the nine months ended September 30, 2018 , the Company invested an additional $5.1 million in City Center. As of September 30, 2018 and December 31, 2017 , the Company had invested $15.9 million and $10.9 million , respectively, in City Center, and the carrying value of the Company's investment was $16.8 million and $11.4 million , respectively. The Company has agreed to guarantee 37% of the construction loan for City Center; however, the loan is collateralized by 100% of the assets of City Center. As of September 30, 2018 and December 31, 2017 , $44.2 million and $29.2 million , respectively, had been drawn against the construction loan, of which $16.3 million and $11.2 million , respectively, was attributable to the Company's portion of the loan. For the three and nine months ended September 30, 2018 and 2017 , City Center did not have any operating activity, and therefore the Company did not receive any distributions or allocated income. Based on the terms of City Center’s operating agreement, the Company has concluded that City Center is a VIE and that the Company holds a variable interest. The Company does not have the power to direct the activities of the project that most significantly impact its performance. Accordingly, the Company is not the project’s primary beneficiary and, therefore, does not consolidate City Center in its consolidated financial statements. |
Notes Receivable
Notes Receivable | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Notes Receivable | Notes Receivable The Company had the following mezzanine loans outstanding as of September 30, 2018 and December 31, 2017 (in thousands): Outstanding loan amount Maximum loan commitment Interest rate Development Project September 30, 2018 December 31, 2017 1405 Point $ 28,133 $ 22,444 $ 28,232 8.0 % The Residences at Annapolis Junction 46,396 43,021 48,105 10.0 % North Decatur Square 15,703 11,790 29,673 15.0 % Delray Plaza 6,779 5,379 13,123 15.0 % Nexton Square 2,219 — 2,314 10.0 % Total $ 99,230 $ 82,634 $ 121,447 Interest on the mezzanine loans is accrued and funded utilizing the interest reserves for each loan, which are components of the respective maximum loan commitments, and such accrued interest is added to the loan receivable balances. The Company recognized interest income for the three and nine months ended September 30, 2018 and 2017 as follows: Three Months Ended Nine Months Ended Development Project 2018 2017 2018 2017 1405 Point $ 547 $ 443 $ 1,483 $ 1,288 The Residences at Annapolis Junction 1,166 1,054 3,374 3,051 North Decatur Square 569 412 1,561 623 Delray Plaza 228 — 676 — Nexton Square 19 — 19 — Total $ 2,529 $ 1,909 $ 7,113 $ 4,962 1405 Point 1405 Point (also known as Point Street Apartments) opened during the first quarter of 2018. The developer of 1405 Point secured a senior construction loan of up to $67.0 million to fund the development and construction of 1405 Point on November 10, 2016. The Company has agreed to guarantee $25.0 million of the senior construction loan in exchange for the option to purchase up to an 88% controlling interest in 1405 Point upon completion of the project. The Company currently has a $2.1 million letter of credit for the guarantee of the senior construction loan. The Residences at Annapolis Junction The developer of The Residences at Annapolis Junction secured a senior construction loan of up to $60.0 million to fund the development and construction of Annapolis Junction's residential component on September 30, 2016. The Company 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 Annapolis Junction. Nexton Square On August 31, 2018, the Company financed a $2.2 million bridge loan to the developer of Nexton Square, a shopping center development project located in Summerville, South Carolina. The bridge loan bears interest at a rate of 10% . All principal and accrued interest will be due upon the earlier of (i) February 28, 2019 or (ii) any refinancing of the project. This loan has been personally guaranteed by the developer. The Company does not have any option to purchase this project. North Decatur Square On September 18, 2018, the Company increased the maximum commitment for the North Decatur Square mezzanine loan to $29.7 million . Subsequent to September 30, 2018 The Interlock On October 2, 2018, the Company financed a $3.0 million bridge loan to S.J. Collins, the developer of the office and retail components of The Interlock, a new mixed-use public-private partnership with Georgia Tech in West Midtown Atlanta. The bridge loan bears interest at a rate of 15% and matures on January 1, 2019. This loan has been personally guaranteed by the developer. The Company does not have an option to purchase this project. On October 23, 2018, the Company increased the maximum commitment for this loan to $4.0 million and advanced an additional $0.7 million . North Decatur Square On October 2, 2018, the Company advanced an additional $2.2 million on this mezzanine loan. The Residences at Annapolis Junction On October 4, 2018, the Company entered into an agreement to sell its purchase option for $5.0 million upon the developer's refinancing of the senior construction loan. Upon this refinancing, the maturity of the remaining outstanding mezzanine loan will coincide with the maturity of the new senior loan, which is 12 months from origination with an option to extend for an additional 12 months , subject to certain conditions. |
Construction Contracts
Construction Contracts | 9 Months Ended |
Sep. 30, 2018 | |
Contractors [Abstract] | |
Construction Contracts | Construction Contracts Construction contract costs and estimated earnings in excess of billings represent reimbursable costs and amounts earned under contracts in progress as of the balance sheet date. Such amounts become billable according to contract terms, which usually consider the passage of time, achievement of certain milestones or completion of the project. The Company expects to bill and collect substantially all construction contract costs and estimated earnings in excess of billings as of September 30, 2018 during the next twelve months. Billings in excess of construction contract costs and estimated earnings represent billings or collections on contracts made in advance of revenue recognized. The following table summarizes the changes to the balances in the Company’s construction contract costs and estimated earnings in excess of billings account and the billings in excess of construction contract costs and estimated earnings account for the nine months ended September 30, 2018 (in thousands): Construction contract costs and estimated earnings in excess of billings Billings in excess of construction contract costs and estimated earnings Balance as of January 1, 2018 $ 245 $ 3,591 Revenue recognized that was included in the balance at the beginning of the period — (3,591 ) Increases due to new billings, excluding amounts recognized as revenue during the period — 2,400 Transferred to receivables (245 ) — Construction contract costs and estimated earnings not billed during the period 576 — Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion 151 (633 ) Balance as of September 30, 2018 $ 727 $ 1,767 The Company defers pre-contract costs when such costs are directly associated with specific anticipated contracts and their recovery is probable. Pre-contract costs of $0.7 million and $0.6 million were deferred as of September 30, 2018 and December 31, 2017 , respectively. Construction receivables and payables include retentions, amounts that are generally withheld until the completion of the contract or the satisfaction of certain restrictive conditions such as fulfillment guarantees. As of September 30, 2018 and December 31, 2017 , construction receivables included retentions of $8.6 million and $9.9 million , respectively. The Company expects to collect substantially all construction receivables as of September 30, 2018 during the next twelve months. As of September 30, 2018 and December 31, 2017 , construction payables included retentions of $20.1 million and $17.4 million , respectively. The Company expects to pay substantially all construction payables as of September 30, 2018 during the next twelve months. The Company’s net position on uncompleted construction contracts comprised the following as of September 30, 2018 and December 31, 2017 (in thousands): September 30, December 31, Costs incurred on uncompleted construction contracts $ 581,852 $ 520,368 Estimated earnings 20,137 18,070 Billings (603,029 ) (541,784 ) Net position $ (1,040 ) $ (3,346 ) September 30, December 31, Construction contract costs and estimated earnings in excess of billings $ 727 $ 245 Billings in excess of construction contract costs and estimated earnings (1,767 ) (3,591 ) Net position $ (1,040 ) $ (3,346 ) The Company’s balances and changes in construction contract price allocated to unsatisfied performance obligations (backlog) as of September 30, 2018 and December 31, 2017 were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Beginning backlog $ 37,921 $ 116,657 $ 49,167 $ 217,718 New contracts/change orders 7,138 1,251 39,514 20,211 Work performed (19,879 ) (41,165 ) (63,501 ) (161,186 ) Ending backlog $ 25,180 $ 76,743 $ 25,180 $ 76,743 The Company expects to complete a majority of the uncompleted contracts as of September 30, 2018 during the next 12 to 18 months. |
Indebtedness
Indebtedness | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness Credit Facility On October 26, 2017, the Operating Partnership entered into an amended and restated credit agreement (the “credit agreement”), which provides for a $300.0 million senior credit facility comprised of a $150.0 million senior unsecured revolving credit facility (the "revolving credit facility") and a $150.0 million senior unsecured term loan facility (the "term loan facility" and, together with the revolving credit facility, the "credit facility"), with a syndicate of banks. The credit facility includes an accordion feature that allows the total commitments to be increased to $450.0 million , subject to certain conditions, including obtaining commitments from any one or more lenders. The revolving credit facility has a scheduled maturity date of October 26, 2021 , with two six -month extension options, subject to certain conditions, including payment of a 0.075% extension fee at each extension. The term loan facility has a scheduled maturity date of October 26, 2022 . On March 28, 2018, the Operating Partnership increased the maximum commitments under the credit facility to $330.0 million using the accordion feature, with an increase of the term loan facility to $180.0 million . The revolving credit facility bears interest at LIBOR (the London Inter-Bank Offered Rate) plus a margin ranging from 1.40% to 2.00% and the term loan facility bears interest at LIBOR plus a margin ranging from 1.35% to 1.95% , in each case depending on the Company's total leverage. The Company is also obligated to pay an unused commitment fee of 15 or 25 basis points on the unused portions of the commitments under the revolving credit facility, depending on the amount of borrowings under the credit facility. As of September 30, 2018 and December 31, 2017 , the outstanding balance on the revolving credit facility was $102.0 million and $66.0 million , respectively, and the outstanding balance on the term loan facility was $180.0 million and $150.0 million , respectively. As of September 30, 2018 , the effective interest rates on the revolving credit facility and the term loan facility were 3.81% and 3.76% , respectively. The Company may, at any time, voluntarily prepay any loan under the credit facility in whole or in part without premium or penalty. The Operating Partnership is the borrower under the credit facility, and its obligations under the credit facility are guaranteed by the Company and certain of its subsidiaries that are not otherwise prohibited from providing such guaranty. The credit agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Company's ability to borrow under the credit facility is subject to ongoing compliance with a number of financial covenants, affirmative covenants and other restrictions. The credit agreement includes customary events of default, in certain cases subject to customary cure periods. The occurrence of an event of default, if not cured within the applicable cure period, would permit the lenders to, among other things, declare the unpaid principal, accrued and unpaid interest and all other amounts payable under the credit facility to be immediately due and payable. The Company is currently in compliance with all covenants under the credit agreement. Subsequent to September 30, 2018 In October 2018, the Company increased its borrowings under the revolving credit facility by $16.0 million . Other Financing Activity On January 22, 2018, the Company extended and modified the Sandbridge Commons note. The note bears interest at a rate of LIBOR plus a spread of 1.75% and will mature on January 17, 2023. On March 27, 2018, the Company paid off Columbus Village Note 1 and Columbus Village Note 2 in full for an aggregate amount of $8.3 million . On May 31, 2018, the Company modified the Southgate Square note. The principal amount of the note was increased to $22 million , and the note now bears interest at a rate of LIBOR plus a spread of 1.60% . This note will still mature on April 29, 2021. On June 1, 2018, the Company entered into a $16.3 million construction loan for the River City industrial development project in Chesterfield, Virginia. The loan bears interest at a rate of LIBOR plus a spread of 1.50% and will mature on May 31, 2019. On June 14, 2018, the Company extended and modified the note secured by 249 Central Park Retail, Fountain Plaza Retail, and South Retail. The principal amount of the note was increased to $35.0 million . The note bears interest at a rate of LIBOR plus a spread of 1.60% and will mature on August 10, 2023. On June 29, 2018, the Company entered into a $15.6 million construction loan for the Brooks Crossing office development project. The loan bears interest at a rate of LIBOR plus a spread of 1.60% and will mature on July 1, 2025. On July 12, 2018, the Company entered into a $16.2 million construction loan for the Market at Mill Creek development project in Mt. Pleasant, South Carolina. The loan bears interest at a rate of LIBOR plus a spread of 1.55% and will mature on July 12, 2025. On July 27, 2018, the Company paid off the Johns Hopkins Village note and entered into a new loan. The principal amount of the new note is $53.0 million . The note bears interest at a rate of LIBOR plus a spread of 1.25% and will mature on August 7, 2025. The Company simultaneously entered into an interest rate swap agreement that effectively fixes the interest rate at 4.19% for the term of the loan. On August 28, 2018, the Company entered into a $15.0 million note secured by the newly acquired Lexington Square shopping center. The note bears interest at a rate of 4.50% and will mature on September 1, 2028. During the nine months ended September 30, 2018 , the Company borrowed $59.0 million under its existing construction loans to fund new development and construction. Subsequent to September 30, 2018 On October 12, 2018, the Company extended and modified the note secured by Lightfoot Marketplace. Under the modified note, the Company may borrow up to $17.9 million . The Company has borrowed an initial tranche of $10.5 million on this note, which bears interest at a rate of LIBOR plus a spread of 1.75% until stabilization of the property, whereupon the spread will be reduced to 1.60% . The note matures on October 12, 2023. The Company simultaneously entered into an interest rate swap agreement that effectively fixes the interest rate of this initial tranche at 4.77% until stabilization and 4.62% thereafter. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 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 the change in fair value of interest rate derivatives in the condensed consolidated statements of income. For derivatives that qualify as cash flow hedges, the gain or loss is reported as a component of other comprehensive income (loss) and reclassified into earnings in the periods during which the hedged forecasted transaction affects earnings. On March 7, 2018, the Operating Partnership entered into a LIBOR interest rate cap agreement on a notional amount of $50.0 million at a strike rate of 2.25% for a premium of $0.3 million . The interest rate cap expires on April 1, 2020. This interest rate cap has not been designated as a hedge for accounting purposes. On April 23, 2018, the Operating Partnership entered into a floating-to-fixed interest rate swap attributable to one-month LIBOR indexed interest payments with a notional amount of $50.0 million . The interest rate swap has a fixed rate of 2.783% , an effective date of May 1, 2018, and a maturity date of May 1, 2023. This interest rate swap has not been designated as a hedge for accounting purposes. On July 16, 2018, the Operating Partnership entered into a LIBOR interest rate cap agreement on a notional amount of $50.0 million at a strike rate of 2.50% for a premium of $0.3 million . The interest rate cap expires on August 1, 2020. This interest rate cap has not been designated as a hedge for accounting purposes. On July 27, 2018, the Company entered into a LIBOR interest rate swap agreement that effectively fixes the interest rate of the new Johns Hopkins Village note payable at 4.19% with a maturity date of August 7, 2025. The Company designated the interest rate swap as a hedge for accounting purposes. During the three months ended September 30, 2018, unrealized losses of $130,000 were recorded to other comprehensive loss, and $67,000 of realized losses were reclassified out of accumulated other comprehensive loss to interest expense due to payments made to the swap counterparty during the three months ended September 30, 2018. During the next 12 months, the Company anticipates reclassifying approximately $173,000 of net hedging losses from accumulated other comprehensive loss into earnings to offset the variability of the hedged item during this period. The Company’s derivatives were comprised of the following as of September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 (Unaudited) Notional Amount Fair Value Notional Amount Fair Value Derivatives not designated as accounting hedges Asset Liability Asset Liability Interest rate swaps $ 100,000 $ 744 $ — $ 56,079 $ 10 $ (69 ) Interest rate caps 300,000 2,597 — 345,000 1,515 — Total derivatives not designated as accounting hedges 400,000 3,341 — 401,079 1,525 (69 ) Interest rate swap designated as accounting hedge 52,930 — (63 ) — — — Total derivatives $ 452,930 $ 3,341 $ (63 ) $ 401,079 $ 1,525 $ (69 ) The changes in the fair value of the Company’s derivatives during the three and nine months ended September 30, 2018 and 2017 were comprised of the following (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Interest rate swaps $ 319 $ 124 $ 673 $ 392 Interest rate caps (151 ) (37 ) 453 (92 ) Total change in fair value of interest rate derivatives $ 168 $ 87 $ 1,126 $ 300 Comprehensive income statement presentation: Change in fair value of interest rate derivatives $ 298 $ 87 $ 1,256 $ 300 Unrealized cash flow hedge gains losses (130 ) $ — $ (130 ) $ — Total change in fair value of interest rate derivatives $ 168 $ 87 $ 1,126 $ 300 Subsequent to September 30, 2018 On October 12, 2018, the Company entered into a LIBOR interest rate swap agreement that effectively fixes the variable component on the interest rate of the initial $10.5 million tranche of new Lightfoot Marketplace note payable. The swap matures on October 12, 2023. The Company designated the interest rate swap as a hedge for accounting purposes. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Equity | Equity Stockholders’ Equity On February 26, 2018, the Company commenced an at-the-market continuous equity offering program (the “ATM 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 $125.0 million . During the nine months ended September 30, 2018 , the Company sold an aggregate of 4,227,978 shares of common stock at a weighted average price of $14.33 per share under the ATM Program, receiving net proceeds, after offering costs and commissions, of $59.7 million . As of September 30, 2018 and December 31, 2017 , the Company’s authorized capital was 500 million shares of common stock and 100 million shares of preferred stock. The Company had 49,576,222 and 44,937,763 shares of common stock issued and outstanding as of September 30, 2018 and December 31, 2017 , respectively. No shares of preferred stock were issued and outstanding as of September 30, 2018 or December 31, 2017 . Noncontrolling Interests As of September 30, 2018 and December 31, 2017 , the Company held a 74.3% and 72.0% interest, respectively, in the Operating Partnership. The Company is the primary beneficiary of the Operating Partnership as it has the power to direct the activities of the Operating Partnership and the rights to absorb 74.3% of the net income of the Operating Partnership. As the primary beneficiary, 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 in the Operating Partnership not held by the Company. As of September 30, 2018 , there were 17,166,899 Class A Units not held by the Company. The Company's financial position and results of operations are the same as those of the Operating Partnership. The noncontrolling interest for the consolidated entities under development or construction (see Note 1) was zero as of September 30, 2018 and December 31, 2017 . On January 2, 2018, due to the holders of Class A Units tendering an aggregate of 163,000 Class A Units for redemption by the Operating Partnership, the Company elected to satisfy the redemption request through the issuance of an equal number of shares of common stock. As partial consideration for the acquisition of Columbus Village, the Operating Partnership issued 1,000,000 class B units of limited partnership interest in the Operating Partnership ("Class B Units") on July 10, 2015 and issued 275,000 class C units of limited partnership interest in the Operating Partnership ("Class C Units") on January 10, 2017. The Class B Units were automatically converted to Class A Units on July 10, 2017. The Class C Units were automatically converted into Class A Units on January 10, 2018. As partial consideration for the acquisition of Parkway Centre, the Operating Partnership issued 117,228 Class A Units on January 29, 2018. On April 2, 2018, due to the holders of Class A Units tendering an aggregate of 187,142 Class A Units for redemption by the Operating Partnership, the Company elected to satisfy the redemption request with an aggregate cash payment of $2.5 million . On April 17, 2018, the Operating Partnership issued 36,684 Class A Units to the former noncontrolling interest holder of John Hopkins Village due to the satisfaction of a contingent event that was part of the redemption of its redeemable noncontrolling interest in Johns Hopkins Village in December 2017. On July 2, 2018, due to the holders of Class A Units tendering an aggregate of 123,504 Class A Units for redemption by the Operating Partnership, the Company elected to satisfy the redemption requests through the issuance of an equal number of shares of common stock. Common Stock Dividends and Class A Unit Distributions On January 4, 2018, the Company paid cash dividends of $8.5 million to common stockholders and the Operating Partnership paid cash distributions of $3.3 million to holders of Class A Units. On April 5, 2018, the Company paid cash dividends of $9.0 million to common stockholders and the Operating Partnership paid cash distributions of $3.5 million to holders of Class A Units. On July 5, 2018, the Company paid cash dividends of $9.7 million to common stockholders and the Operating Partnership paid cash distributions of $3.5 million to holders of Class A Units. On August 2, 2018, the Board of Directors declared a cash dividend and distribution of $0.20 per share and Class A Unit payable on October 4, 2018 to stockholders and unitholders of record on September 26, 2018. Subsequent to September 30, 2018 On October 1, 2018, due to the holders of Class A Units tendering an aggregate of 56,495 Class A Units for redemption by the Operating Partnership, the Company elected to satisfy the redemption requests through the issuance of 52,200 shares of common stock and a cash payment of $0.1 million . On October 4, 2018, the Company paid cash dividends of $9.9 million to common stockholders and the Operating Partnership paid cash distributions of $3.4 million to holders of Class A Units. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation On June 14, 2017, the Company's stockholders approved the Company's Amended and Restated 2013 Equity Incentive Plan (the "Amended Plan"), which, among other things, increased the number of shares of the Company's common stock reserved for issuance under the Amended Plan by 1,000,000 shares, from 700,000 shares to 1,700,000 shares. As of September 30, 2018 , there were 1,032,329 shares available for issuance under the Amended Plan. During the nine months ended September 30, 2018 , the Company granted an aggregate of 153,069 shares of restricted stock to employees and non-employee directors with a weighted average grant date fair value of $13.54 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. Non-employee 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 nine months ended September 30, 2018 , the Company issued performance-based awards in the form of restricted stock units to certain employees. The performance period for these awards is three years , with a required two -year service period immediately following the expiration of the performance period in order to fully vest. The compensation expense and the effect on the Company’s weighted average diluted shares calculation were immaterial. During the three months ended September 30, 2018 and 2017 , the Company recognized $0.4 million and $0.3 million , respectively, of stock-based compensation expense. During the nine months ended September 30, 2018 and 2017 , the Company recognized $1.6 million and $1.4 million , respectively, of stock-based compensation expense. As of September 30, 2018 , there were 136,301 nonvested restricted shares outstanding; the total unrecognized compensation expense related to nonvested restricted shares was $0.9 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, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 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 values. 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. Financial assets and liabilities whose fair values are not measured at fair value but for which the fair value is disclosed include the Company's notes receivable and indebtedness. The fair value is estimated by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity, credit characteristics, and other terms of the arrangements, which are Level 3 inputs under the fair value hierarchy. 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 carrying amounts and fair values of the Company’s financial instruments as of September 30, 2018 and December 31, 2017 were as follows (in thousands): September 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value (Unaudited) Indebtedness $ 653,750 $ 647,311 $ 517,272 $ 518,417 Notes receivable $ 100,486 $ 100,486 $ 83,058 $ 83,058 Interest rate swap liabilities 63 63 69 69 Interest rate swap and cap assets 3,341 3,341 1,525 1,525 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company provides general contracting and real estate services to certain related party entities that are included in these condensed consolidated financial statements. Revenue from construction contracts with these entities for the three months ended September 30, 2018 and 2017 was less than $0.1 million for each period, and gross profit from such contracts for the three months ended September 30, 2018 and 2017 was less than $0.1 million for each period. Revenue from construction contracts with related party entities of the Company for the nine months ended September 30, 2018 and 2017 was $1.5 million and $7.4 million , respectively, and gross profit from such contracts for the nine months ended September 30, 2018 and 2017 was $0.3 million and $0.4 million , respectively. Real estate services fees from affiliated entities of the Company were not significant for the three and nine months ended September 30, 2018 or 2017 . 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 the three and nine months ended September 30, 2018 and 2017 . The Operating Partnership entered into tax protection agreements that indemnify certain directors and executive officers of the Company from their tax liabilities resulting from the potential future sale of certain of the Company’s properties within seven (or, in a limited number of cases, ten ) years of the completion of the Company’s initial public offering and formation transactions completed on May 13, 2013. In addition, the tax protection agreements provide that the Operating Partnership will offer certain of the original contributors, including certain of the Company’s directors and executive officers, the opportunity to guarantee debt, or, alternatively, to enter into a deficit restoration obligation, for ten years from the closing of the Company’s initial public offering in a manner intended to provide an allocation of Operating Partnership liabilities to the partner for U.S. federal income tax purposes. Pursuant to these tax protection agreements, certain of the Company’s executive officers previously guaranteed approximately $0.3 million of the Operating Partnership’s outstanding debt. In September 2018, these officers were released from these guaranty obligations. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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. 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 $33.4 million and $44.9 million as of September 30, 2018 and December 31, 2017 , respectively. The Operating Partnership has entered into standby letters of credit using the available capacity under the credit facility. Letters of credit generally are available for draw down in the event the Company does not perform. As of both September 30, 2018 and December 31, 2017 , the Operating Partnership had total outstanding letters of credit of $2.1 million . The amounts outstanding at September 30, 2018 and December 31, 2017 were comprised of a $2.1 million letter of credit related to the guarantee on the 1405 Point senior construction loan. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
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 and its consolidated 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, 2017 . |
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 significantly from management’s estimates. |
General Contracting and Real Estate Services Revenues | General Contracting and Real Estate Services Revenues On January 1, 2018, the Company adopted the new accounting standard codified in Accounting Standards Codification 606 - Revenue from Contracts with Customers (see also "Recent Accounting Pronouncements" below). The Company recognizes general contracting revenues as a customer obtains control of promised goods or services in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. For each construction contract, the Company identifies the performance obligations, which typically include the delivery of a single building constructed according to the specifications of the contract. The Company estimates the total transaction price, which generally includes a fixed contract price and may also include variable components such as early completion bonuses, liquidated damages, or cost savings to be shared with the customer. Variable components of the contract price are included in the transaction price to the extent that it is probable that a significant reversal of revenue will not occur. The Company recognizes the estimated transaction price as revenue as it satisfies its performance obligations, and the Company estimates its progress in satisfying performance obligations for each contract using the percentage-of-completion method, based on the proportion of incurred costs to total estimated construction costs at completion. Construction contract costs include all direct material, direct labor, subcontract costs, and overhead costs directly related to contract performance. Changes in job performance, job conditions, and estimated profitability, including those arising from contract penalty provisions and final contract settlements, are all significant judgments that may result in revisions to costs and income and are recognized in the period in which they are determined. Provisions for estimated losses on uncompleted contracts are recognized immediately in the period in which such losses are determined. The Company defers pre-contract costs when such costs are directly associated with specific anticipated contracts and their recovery is probable. The Company recognizes real estate services revenues from property development and management services as it satisfies its performance obligations under these service arrangements. The Company assesses whether multiple contracts with a single counterparty should be combined into a single contract for revenue recognition purposes based on factors such as the timing of the negotiation and execution of the contracts and whether the economic substance of the contracts was contemplated separately or in tandem. The Company defers pre-contract costs when such costs are directly associated with specific anticipated contracts and their recovery is probable. Construction Contracts Construction contract costs and estimated earnings in excess of billings represent reimbursable costs and amounts earned under contracts in progress as of the balance sheet date. Such amounts become billable according to contract terms, which usually consider the passage of time, achievement of certain milestones or completion of the project. The Company expects to bill and collect substantially all construction contract costs and estimated earnings in excess of billings as of September 30, 2018 during the next twelve months. Billings in excess of construction contract costs and estimated earnings represent billings or collections on contracts made in advance of revenue recognized. |
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 changes the way the Company recognizes revenue from construction and development contracts with third party customers. The Company adopted this standard on January 1, 2018 using the modified retrospective method, applying this standard to all contracts not yet completed as of that date. In applying the standard to the Company’s future construction contracts, certain pre-contract costs incurred by the Company are now deferred and amortized over the period during which construction obligations are fulfilled. Previously, these costs were immediately recorded as general contracting expenses upon commencement of construction, with the corresponding general contracting revenue also recorded. Applying the standard to the Company’s uncompleted contracts as of January 1, 2018 did not result in material differences to these contracts in aggregate, and no cumulative adjustment to distributions in excess of earnings was recorded as of January 1, 2018. On February 25, 2016, the FASB issued a new lease standard that requires lessees to recognize most leases in their balance sheets as lease liabilities with corresponding right-of-use assets. The new standard also makes targeted changes to lessor accounting. The new standard will be effective for the Company on January 1, 2019 and requires a modified retrospective transition approach for all leases existing at, or entered into after, the beginning of the earliest comparative period presented, with an option to use certain transition relief. Management is currently evaluating the potential impact of the new standard on the Company’s consolidated financial statements. The Company is the lessee on certain long-term ground leases, which represents a majority of the Company's current operating lease payments, and expects to record right-of-use assets and lease liabilities for these leases under the new standard. The Company anticipates utilizing certain transition relief under the new standard that will allow the Company not to apply certain aspects of the new standard to its existing leases. In 2016, the FASB issued new guidance that addresses eight classification issues related to the statement of cash flows and requires the presentation of total changes in cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. The Company adopted this new guidance on December 31, 2017, applying it retrospectively to each period presented. The new guidance requires that the statement of cash flows show changes in restricted cash in addition to changes in cash and cash equivalents. No additional changes were required to be made to the Company's consolidated statements of cash flows as a result of the new guidance. The following table sets forth the items from the Company's consolidated balance sheets that are included in cash, cash equivalents, and restricted cash in the consolidated statements of cash flows (in thousands): Balance as of September 30, 2018 December 31, 2017 September 30, 2017 December 31, 2016 Cash and cash equivalents $ 17,732 $ 19,959 $ 19,721 $ 21,942 Restricted cash 2,916 2,957 3,195 3,251 Cash, cash equivalents, and restricted cash $ 20,648 $ 22,916 $ 22,916 $ 25,193 The following table summarizes the changes made to net cash provided by operating activities, net cash used for investing activities, and net cash provided by financing activities in the consolidated statement of cash flows for the nine months ended September 30, 2017 on a retrospective basis (in thousands) as a result of the new guidance as well as the reclassification adjustments described in the "Reclassifications" section above: Nine months ended September 30, 2017 Operating activities as originally presented $ 36,598 Adjustment relating to restricted cash (259 ) Adjustment for shares tendered for tax withholding 289 Adjustment relating to interest income presentation (4,962 ) Operating activities after adjustments $ 31,666 Investing activities as originally presented $ (69,485 ) Adjustment relating to restricted cash 203 Adjustment relating to interest income presentation 4,962 Investing activities after adjustments $ (64,320 ) Financing activities as originally presented $ 30,666 Adjustment for shares tendered for tax withholding (289 ) Financing activities after adjustments $ 30,377 On February 22, 2017, the FASB issued new guidance that clarifies the scope and application of guidance on sales or transfers of nonfinancial assets and in substance nonfinancial assets to customers, including partial sales. The new guidance applies to all nonfinancial assets, including real estate, and defines an in substance nonfinancial asset. The Company adopted the new guidance on January 1, 2018, and it did not have a material impact on the Company’s consolidated financial statements. On August 28, 2017, the FASB issued new guidance that simplifies some of the requirements relating to accounting for derivatives and hedging. The new guidance eliminates the requirement to separately measure and report hedge ineffectiveness for a highly effective hedge and also simplifies certain documentation and assessment requirements relating to the determination of hedge effectiveness. The Company adopted this guidance effective July 1, 2018. The application of this guidance to hedging relationships could reduce or eliminate the gains and losses that would otherwise be recorded in net income for these derivative instruments. |
Segments | 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. |
Derivative Financial Instruments | 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 the change in fair value of interest rate derivatives in the condensed consolidated statements of income. For derivatives that qualify as cash flow hedges, the gain or loss is reported as a component of other comprehensive income (loss) and reclassified into earnings in the periods during which the hedged forecasted transaction affects earnings. |
Fair Value of Financial Instruments | 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 values. 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. Financial assets and liabilities whose fair values are not measured at fair value but for which the fair value is disclosed include the Company's notes receivable and indebtedness. The fair value is estimated by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity, credit characteristics, and other terms of the arrangements, which are Level 3 inputs under the fair value hierarchy. 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. |
Legal Proceedings | 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. 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of restricted cash | The following table sets forth the items from the Company's consolidated balance sheets that are included in cash, cash equivalents, and restricted cash in the consolidated statements of cash flows (in thousands): Balance as of September 30, 2018 December 31, 2017 September 30, 2017 December 31, 2016 Cash and cash equivalents $ 17,732 $ 19,959 $ 19,721 $ 21,942 Restricted cash 2,916 2,957 3,195 3,251 Cash, cash equivalents, and restricted cash $ 20,648 $ 22,916 $ 22,916 $ 25,193 |
Summary of changes due to new accounting principle | The following table summarizes the changes made to net cash provided by operating activities, net cash used for investing activities, and net cash provided by financing activities in the consolidated statement of cash flows for the nine months ended September 30, 2017 on a retrospective basis (in thousands) as a result of the new guidance as well as the reclassification adjustments described in the "Reclassifications" section above: Nine months ended September 30, 2017 Operating activities as originally presented $ 36,598 Adjustment relating to restricted cash (259 ) Adjustment for shares tendered for tax withholding 289 Adjustment relating to interest income presentation (4,962 ) Operating activities after adjustments $ 31,666 Investing activities as originally presented $ (69,485 ) Adjustment relating to restricted cash 203 Adjustment relating to interest income presentation 4,962 Investing activities after adjustments $ (64,320 ) Financing activities as originally presented $ 30,666 Adjustment for shares tendered for tax withholding (289 ) Financing activities after adjustments $ 30,377 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and 2017 was as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 (Unaudited) Office real estate Rental revenues $ 5,149 $ 4,762 $ 15,537 $ 14,427 Rental expenses 1,551 1,447 4,435 4,138 Real estate taxes 515 481 1,519 1,381 Segment net operating income 3,083 2,834 9,583 8,908 Retail real estate Rental revenues 16,932 15,880 50,251 47,089 Rental expenses 2,761 2,699 7,974 7,698 Real estate taxes 1,703 1,588 5,041 4,557 Segment net operating income 12,468 11,593 37,236 34,834 Multifamily residential real estate Rental revenues 6,849 6,454 20,439 19,567 Rental expenses 2,791 2,684 7,640 7,233 Real estate taxes 622 624 1,828 1,859 Segment net operating income 3,436 3,146 10,971 10,475 General contracting and real estate services Segment revenues 19,950 41,201 63,654 161,391 Segment expenses 18,973 39,377 61,474 154,588 Segment gross profit 977 1,824 2,180 6,803 Net operating income $ 19,964 $ 19,397 $ 59,970 $ 61,020 |
Reconciliation of net operating income to net income | The following table reconciles net operating income to net income, the most directly comparable GAAP measure, for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 (Unaudited) Net operating income $ 19,964 $ 19,397 $ 59,970 $ 61,020 Depreciation and amortization (10,196 ) (9,239 ) (28,653 ) (28,018 ) General and administrative expenses (2,367 ) (2,098 ) (8,092 ) (7,762 ) Acquisition, development and other pursuit costs (69 ) (61 ) (162 ) (477 ) Impairment charges (3 ) (19 ) (101 ) (50 ) Interest income 2,545 1,910 7,152 4,966 Interest expense (4,677 ) (4,253 ) (13,547 ) (13,282 ) Loss on extinguishment of debt (11 ) — (11 ) — Gain on real estate dispositions — 4,692 — 8,087 Change in fair value of interest rate derivatives 298 87 1,256 300 Other income 65 74 233 154 Income tax benefit (provision) 120 (29 ) 552 (781 ) Net income $ 5,669 $ 10,461 $ 18,597 $ 24,157 |
Real Estate Investment (Tables)
Real Estate Investment (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Real Estate [Abstract] | |
Summary of the purchase price allocation | The following table summarizes the purchase price allocation (including acquisition costs) based on relative fair value of the assets acquired and liabilities assumed for the three operating properties purchased during the nine months ended September 30, 2018 (in thousands): Indian Lakes Crossing Parkway Centre Lexington Square Land $ 10,926 $ 1,372 $ 3,036 Site improvements 531 696 7,396 Building and improvements 1,913 7,168 10,387 In-place leases 1,648 2,346 4,113 Above-market leases 11 — 89 Below-market leases (175 ) (10 ) (447 ) Net assets acquired $ 14,854 $ 11,572 $ 24,574 |
Notes Receivable Notes Receivab
Notes Receivable Notes Receivable (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Summary of Mezzanine Loans | The Company had the following mezzanine loans outstanding as of September 30, 2018 and December 31, 2017 (in thousands): Outstanding loan amount Maximum loan commitment Interest rate Development Project September 30, 2018 December 31, 2017 1405 Point $ 28,133 $ 22,444 $ 28,232 8.0 % The Residences at Annapolis Junction 46,396 43,021 48,105 10.0 % North Decatur Square 15,703 11,790 29,673 15.0 % Delray Plaza 6,779 5,379 13,123 15.0 % Nexton Square 2,219 — 2,314 10.0 % Total $ 99,230 $ 82,634 $ 121,447 |
Summary of Interest Income | The Company recognized interest income for the three and nine months ended September 30, 2018 and 2017 as follows: Three Months Ended Nine Months Ended Development Project 2018 2017 2018 2017 1405 Point $ 547 $ 443 $ 1,483 $ 1,288 The Residences at Annapolis Junction 1,166 1,054 3,374 3,051 North Decatur Square 569 412 1,561 623 Delray Plaza 228 — 676 — Nexton Square 19 — 19 — Total $ 2,529 $ 1,909 $ 7,113 $ 4,962 |
Construction Contracts (Tables)
Construction Contracts (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Contractors [Abstract] | |
Summary of balances and changes of construction contracts | The following table summarizes the changes to the balances in the Company’s construction contract costs and estimated earnings in excess of billings account and the billings in excess of construction contract costs and estimated earnings account for the nine months ended September 30, 2018 (in thousands): Construction contract costs and estimated earnings in excess of billings Billings in excess of construction contract costs and estimated earnings Balance as of January 1, 2018 $ 245 $ 3,591 Revenue recognized that was included in the balance at the beginning of the period — (3,591 ) Increases due to new billings, excluding amounts recognized as revenue during the period — 2,400 Transferred to receivables (245 ) — Construction contract costs and estimated earnings not billed during the period 576 — Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion 151 (633 ) Balance as of September 30, 2018 $ 727 $ 1,767 The Company’s balances and changes in construction contract price allocated to unsatisfied performance obligations (backlog) as of September 30, 2018 and December 31, 2017 were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Beginning backlog $ 37,921 $ 116,657 $ 49,167 $ 217,718 New contracts/change orders 7,138 1,251 39,514 20,211 Work performed (19,879 ) (41,165 ) (63,501 ) (161,186 ) Ending backlog $ 25,180 $ 76,743 $ 25,180 $ 76,743 |
Net position of uncompleted construction contracts | The Company’s net position on uncompleted construction contracts comprised the following as of September 30, 2018 and December 31, 2017 (in thousands): September 30, December 31, Costs incurred on uncompleted construction contracts $ 581,852 $ 520,368 Estimated earnings 20,137 18,070 Billings (603,029 ) (541,784 ) Net position $ (1,040 ) $ (3,346 ) September 30, December 31, Construction contract costs and estimated earnings in excess of billings $ 727 $ 245 Billings in excess of construction contract costs and estimated earnings (1,767 ) (3,591 ) Net position $ (1,040 ) $ (3,346 ) |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivatives | The Company’s derivatives were comprised of the following as of September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 (Unaudited) Notional Amount Fair Value Notional Amount Fair Value Derivatives not designated as accounting hedges Asset Liability Asset Liability Interest rate swaps $ 100,000 $ 744 $ — $ 56,079 $ 10 $ (69 ) Interest rate caps 300,000 2,597 — 345,000 1,515 — Total derivatives not designated as accounting hedges 400,000 3,341 — 401,079 1,525 (69 ) Interest rate swap designated as accounting hedge 52,930 — (63 ) — — — Total derivatives $ 452,930 $ 3,341 $ (63 ) $ 401,079 $ 1,525 $ (69 ) |
Schedule of changes in fair value of derivatives | The changes in the fair value of the Company’s derivatives during the three and nine months ended September 30, 2018 and 2017 were comprised of the following (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Interest rate swaps $ 319 $ 124 $ 673 $ 392 Interest rate caps (151 ) (37 ) 453 (92 ) Total change in fair value of interest rate derivatives $ 168 $ 87 $ 1,126 $ 300 Comprehensive income statement presentation: Change in fair value of interest rate derivatives $ 298 $ 87 $ 1,256 $ 300 Unrealized cash flow hedge gains losses (130 ) $ — $ (130 ) $ — Total change in fair value of interest rate derivatives $ 168 $ 87 $ 1,126 $ 300 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 as of September 30, 2018 and December 31, 2017 were as follows (in thousands): September 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value (Unaudited) Indebtedness $ 653,750 $ 647,311 $ 517,272 $ 518,417 Notes receivable $ 100,486 $ 100,486 $ 83,058 $ 83,058 Interest rate swap liabilities 63 63 69 69 Interest rate swap and cap assets 3,341 3,341 1,525 1,525 |
Business of Organization - Addi
Business of Organization - Additional Information (Details) - property | Sep. 30, 2018 | Dec. 31, 2017 |
Business And Organization [Line Items] | ||
Percentage of Operating Partnership held | 74.30% | 72.00% |
Operating Property | ||
Business And Organization [Line Items] | ||
Number of real estate properties | 50 | |
Development Property | ||
Business And Organization [Line Items] | ||
Number of real estate properties | 10 | |
General Partner | ||
Business And Organization [Line Items] | ||
Percentage of Operating Partnership held | 0.10% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Interest receivable | $ 7,147 | $ 4,962 | |||
Notes receivable issuances | 10,281 | 10,792 | |||
Common shares tendered for tax withholding | 343 | 289 | |||
Property liabilities | 2,031 | 3,498 | |||
Restatement Adjustment | Reclassification Of Earned Interest Income | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Interest receivable | 5,000 | $ 7,100 | $ 3,200 | $ 100 | |
Notes receivable issuances | (5,000) | (7,100) | (3,200) | (100) | |
Restatement Adjustment | Reclassification For Shares Tendered For Tax Withholding | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Common shares tendered for tax withholding | $ 300 | 300 | 200 | 300 | |
Property liabilities | $ (300) | $ (300) | $ (200) | $ (300) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 17,732 | $ 19,959 | $ 19,721 | $ 21,942 |
Restricted cash | 2,916 | 2,957 | 3,195 | 3,251 |
Cash, cash equivalents, and restricted cash | $ 20,648 | $ 22,916 | $ 22,916 | $ 25,193 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Prior Period Adjustment (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net cash provided by operating activities | $ 27,197 | $ 31,666 |
Net cash used for investing activities | (183,558) | (64,320) |
Net cash provided by (used in) financing activities | $ 154,093 | 30,377 |
Activities as originally presented | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net cash provided by (used in) financing activities | 30,666 | |
Adjustment for shares tendered for tax withholding | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net cash provided by operating activities | 289 | |
Net cash provided by (used in) financing activities | (289) | |
Accounting Standards Update 2016-15 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net cash provided by operating activities | 31,666 | |
Net cash used for investing activities | (64,320) | |
Accounting Standards Update 2016-15 | Activities as originally presented | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net cash provided by operating activities | 36,598 | |
Net cash used for investing activities | (69,485) | |
Accounting Standards Update 2016-15 | Adjustment relating to restricted cash | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net cash provided by operating activities | (259) | |
Net cash used for investing activities | 203 | |
Accounting Standards Update 2016-15 | Adjustment relating to interest income presentation | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net cash provided by operating activities | (4,962) | |
Net cash used for investing activities | $ 4,962 |
Segments - Net Income of Report
Segments - Net Income of Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information | ||||
Rental revenues | $ 28,930 | $ 27,096 | $ 86,227 | $ 81,083 |
Rental expenses | 7,103 | 6,830 | 20,049 | 19,069 |
Real estate taxes | 2,840 | 2,693 | 8,388 | 7,797 |
General contracting and real estate services | ||||
Segment Reporting Information | ||||
Segment revenues | 19,950 | 41,201 | 63,654 | 161,391 |
Segment expenses | 18,973 | 39,377 | 61,474 | 154,588 |
Operating Segments | ||||
Segment Reporting Information | ||||
Gross profit | 19,964 | 19,397 | 59,970 | 61,020 |
Operating Segments | Office real estate | ||||
Segment Reporting Information | ||||
Rental revenues | 5,149 | 4,762 | 15,537 | 14,427 |
Rental expenses | 1,551 | 1,447 | 4,435 | 4,138 |
Real estate taxes | 515 | 481 | 1,519 | 1,381 |
Gross profit | 3,083 | 2,834 | 9,583 | 8,908 |
Operating Segments | Retail real estate | ||||
Segment Reporting Information | ||||
Rental revenues | 16,932 | 15,880 | 50,251 | 47,089 |
Rental expenses | 2,761 | 2,699 | 7,974 | 7,698 |
Real estate taxes | 1,703 | 1,588 | 5,041 | 4,557 |
Gross profit | 12,468 | 11,593 | 37,236 | 34,834 |
Operating Segments | Multifamily residential real estate | ||||
Segment Reporting Information | ||||
Rental revenues | 6,849 | 6,454 | 20,439 | 19,567 |
Rental expenses | 2,791 | 2,684 | 7,640 | 7,233 |
Real estate taxes | 622 | 624 | 1,828 | 1,859 |
Gross profit | 3,436 | 3,146 | 10,971 | 10,475 |
Operating Segments | General contracting and real estate services | ||||
Segment Reporting Information | ||||
Gross profit | 977 | 1,824 | 2,180 | 6,803 |
Operating Segments | General contracting and real estate services | General contracting and real estate services | ||||
Segment Reporting Information | ||||
Segment revenues | 19,950 | 41,201 | 63,654 | 161,391 |
Segment expenses | $ 18,973 | $ 39,377 | $ 61,474 | $ 154,588 |
Segments - Additional Informati
Segments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information | ||||
Non-cash stock compensation | $ 1,072 | $ 1,047 | ||
General and Administrative Expense | ||||
Segment Reporting Information | ||||
Non-cash stock compensation | $ 200 | $ 200 | 900 | 800 |
General contracting and real estate services | ||||
Segment Reporting Information | ||||
Non-cash stock compensation | 100 | 100 | 200 | 200 |
General contracting and real estate services | ||||
Segment Reporting Information | ||||
General contracting and real estate services revenues | 19,950 | 41,201 | 63,654 | 161,391 |
General contracting and real estate services expenses | 18,973 | 39,377 | 61,474 | 154,588 |
General contracting and real estate services | General contracting and real estate services | Intercompany Eliminations | ||||
Segment Reporting Information | ||||
General contracting and real estate services revenues | 38,500 | 13,900 | 98,600 | 31,300 |
General contracting and real estate services expenses | $ 38,200 | $ 13,700 | $ 97,700 | $ 31,000 |
Segments - Reconciliation of Ne
Segments - Reconciliation of Net Operating Income to Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Depreciation and amortization | $ (10,196) | $ (9,239) | $ (28,653) | $ (28,018) |
General and administrative expenses | (2,367) | (2,098) | (8,092) | (7,762) |
Acquisition, development and other pursuit costs | (69) | (61) | (162) | (477) |
Impairment charges | (3) | (19) | (101) | (50) |
Interest income | 2,545 | 1,910 | 7,152 | 4,966 |
Interest expense | (4,677) | (4,253) | (13,547) | (13,282) |
Loss on extinguishment of debt | (11) | 0 | (11) | 0 |
Gain on real estate dispositions | 0 | 8,087 | ||
Change in fair value of interest rate derivatives | 298 | 87 | 1,256 | 300 |
Other income | 65 | 74 | 233 | 154 |
Income tax benefit (provision) | 120 | (29) | 552 | (781) |
Net income | 5,669 | 10,461 | 18,597 | 24,157 |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Gross profit | 19,964 | 19,397 | 59,970 | 61,020 |
Segment Reconciling Items | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Depreciation and amortization | (10,196) | (9,239) | (28,653) | (28,018) |
General and administrative expenses | (2,367) | (2,098) | (8,092) | (7,762) |
Acquisition, development and other pursuit costs | (69) | (61) | (162) | (477) |
Impairment charges | (3) | (19) | (101) | (50) |
Interest income | 2,545 | 1,910 | 7,152 | 4,966 |
Interest expense | (4,677) | (4,253) | (13,547) | (13,282) |
Loss on extinguishment of debt | (11) | 0 | (11) | 0 |
Gain on real estate dispositions | 0 | 4,692 | 0 | 8,087 |
Change in fair value of interest rate derivatives | 298 | 87 | 1,256 | 300 |
Other income | 65 | 74 | 233 | 154 |
Income tax benefit (provision) | $ 120 | $ (29) | $ 552 | $ (781) |
Real Estate Investment - Acquis
Real Estate Investment - Acquisitions (Details) $ in Millions | Aug. 28, 2018USD ($) | Jul. 02, 2018renewal_term | Apr. 02, 2018USD ($) | Feb. 16, 2018USD ($) | Jan. 29, 2018USD ($) | Jan. 09, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2018property | Jan. 18, 2018 |
Chesterfield, Virginia | |||||||||
Real Estate Properties [Line Items] | |||||||||
Capitalized acquisition costs | $ 0.1 | ||||||||
Payments to acquire land | 2.4 | ||||||||
Indian Lakes Crossing | |||||||||
Real Estate Properties [Line Items] | |||||||||
Consideration transferred | $ 14.7 | ||||||||
Capitalized acquisition costs | $ 0.2 | ||||||||
Parkway Centre | |||||||||
Real Estate Properties [Line Items] | |||||||||
Consideration transferred | 11.3 | ||||||||
Capitalized acquisition costs | 0.3 | ||||||||
Acquisition, cash consideration | 9.6 | ||||||||
Acquisition, equity consideration issued or issuable | $ 1.7 | ||||||||
Lexington Square | |||||||||
Real Estate Properties [Line Items] | |||||||||
Consideration transferred | $ 26.8 | ||||||||
Capitalized acquisition costs | 0.4 | ||||||||
Acquisition, cash consideration | 24.2 | ||||||||
Acquisition, equity consideration issued or issuable | $ 2.6 | ||||||||
Length of additional consideration contingency | 18 months | ||||||||
Indian Lakes Crossing, Parkway Centre, and Lexington Square | |||||||||
Real Estate Properties [Line Items] | |||||||||
Number of operating properties acquired | property | 3 | ||||||||
Market At Mill Creek Partners, LLC | |||||||||
Real Estate Properties [Line Items] | |||||||||
Capitalized acquisition costs | $ 0.1 | ||||||||
Payments to acquire land | $ 2.9 | ||||||||
Ownership interest in partnership | 70.00% | ||||||||
Investment in project | $ 14.2 | ||||||||
Brooks Crossing | |||||||||
Real Estate Properties [Line Items] | |||||||||
Payments to acquire land | $ 0.1 | ||||||||
Wills Wharf, Baltimore, Maryland | |||||||||
Real Estate Properties [Line Items] | |||||||||
Term of contract | 5 years | ||||||||
Number of renewal terms | renewal_term | 10 | ||||||||
Renewal term | 7 years |
Real Estate Investment - Summar
Real Estate Investment - Summary of the Purchase Price Allocation (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Indian Lakes Crossing | |
Business Acquisition [Line Items] | |
Below-market leases | $ (175) |
Net assets acquired | 14,854 |
Indian Lakes Crossing | In-place leases | |
Business Acquisition [Line Items] | |
Finite-lived intangibles | 1,648 |
Indian Lakes Crossing | Above-market leases | |
Business Acquisition [Line Items] | |
Finite-lived intangibles | 11 |
Indian Lakes Crossing | Land | |
Business Acquisition [Line Items] | |
Property, plant, and equipment | 10,926 |
Indian Lakes Crossing | Site improvements | |
Business Acquisition [Line Items] | |
Property, plant, and equipment | 531 |
Indian Lakes Crossing | Building and improvements | |
Business Acquisition [Line Items] | |
Property, plant, and equipment | 1,913 |
Parkway Centre | |
Business Acquisition [Line Items] | |
Below-market leases | (10) |
Net assets acquired | 11,572 |
Parkway Centre | In-place leases | |
Business Acquisition [Line Items] | |
Finite-lived intangibles | 2,346 |
Parkway Centre | Above-market leases | |
Business Acquisition [Line Items] | |
Finite-lived intangibles | 0 |
Parkway Centre | Land | |
Business Acquisition [Line Items] | |
Property, plant, and equipment | 1,372 |
Parkway Centre | Site improvements | |
Business Acquisition [Line Items] | |
Property, plant, and equipment | 696 |
Parkway Centre | Building and improvements | |
Business Acquisition [Line Items] | |
Property, plant, and equipment | 7,168 |
Lexington Square | |
Business Acquisition [Line Items] | |
Below-market leases | (447) |
Net assets acquired | 24,574 |
Lexington Square | In-place leases | |
Business Acquisition [Line Items] | |
Finite-lived intangibles | 4,113 |
Lexington Square | Above-market leases | |
Business Acquisition [Line Items] | |
Finite-lived intangibles | 89 |
Lexington Square | Land | |
Business Acquisition [Line Items] | |
Property, plant, and equipment | 3,036 |
Lexington Square | Site improvements | |
Business Acquisition [Line Items] | |
Property, plant, and equipment | 7,396 |
Lexington Square | Building and improvements | |
Business Acquisition [Line Items] | |
Property, plant, and equipment | $ 10,387 |
Real Estate Investment Real Est
Real Estate Investment Real Estate Investment - Property Disposition (Details) - USD ($) | May 24, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Real Estate Properties [Line Items] | |||
Contract price | $ 4,271,000 | $ 12,557,000 | |
Indian Lakes Crossing | Wawa Outparcel | Disposal Group, Not Discontinued Operations | |||
Real Estate Properties [Line Items] | |||
Contract price | $ 4,400,000 | ||
Gain (loss) on disposal | $ 0 |
Equity Method Investment (Detai
Equity Method Investment (Details) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Feb. 25, 2016story | |
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in equity method investment during period | $ 5,400,000 | $ 934,000 | ||||
Equity method investments | $ 16,811,000 | 16,811,000 | $ 11,411,000 | |||
Construction loan outstanding | 653,750,000 | 653,750,000 | 517,272,000 | |||
22-Story Mixed Use Tower | City Center | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Interests in equity method investments | 37.00% | |||||
Number stories in the mixed use tower (story) | story | 22 | |||||
Investment in equity method investment during period | 5,100,000 | |||||
Investment in equity method investments | 15,900,000 | 15,900,000 | 10,900,000 | |||
Equity method investments | 16,800,000 | 16,800,000 | 11,400,000 | |||
Guarantee of construction loan | 37.00% | |||||
Assets being used as collateral for the construction loan | 100.00% | |||||
Construction loan outstanding | 16,300,000 | 16,300,000 | 11,200,000 | |||
Dividends from equity investment | 0 | $ 0 | 0 | 0 | ||
Income from equity method investment | 0 | $ 0 | 0 | $ 0 | ||
City Center | 22-Story Mixed Use Tower | City Center | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Construction loan outstanding | $ 44,200,000 | $ 44,200,000 | $ 29,200,000 |
Notes Receivable Notes Receiv_2
Notes Receivable Notes Receivable (Summary of Mezzanine Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 18, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Notes receivable | $ 100,486 | $ 100,486 | $ 83,058 | |||
Interest income | 2,545 | $ 1,910 | 7,152 | $ 4,966 | ||
Mezzanine Loan | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Notes receivable | 99,230 | 99,230 | 82,634 | |||
Maximum loan commitment | 121,447 | 121,447 | ||||
Interest income | 2,529 | 1,909 | 7,113 | 4,962 | ||
Mezzanine Loan | 1405 Point | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Notes receivable | 28,133 | 28,133 | 22,444 | |||
Maximum loan commitment | $ 28,232 | $ 28,232 | ||||
Interest rate | 8.00% | 8.00% | ||||
Interest income | $ 547 | 443 | $ 1,483 | 1,288 | ||
Mezzanine Loan | The Residences at Annapolis Junction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Notes receivable | 46,396 | 46,396 | 43,021 | |||
Maximum loan commitment | $ 48,105 | $ 48,105 | ||||
Interest rate | 10.00% | 10.00% | ||||
Interest income | $ 1,166 | 1,054 | $ 3,374 | 3,051 | ||
Mezzanine Loan | North Decatur Square | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Notes receivable | 15,703 | 15,703 | 11,790 | |||
Maximum loan commitment | $ 29,673 | $ 29,673 | $ 29,700 | |||
Interest rate | 15.00% | 15.00% | ||||
Interest income | $ 569 | 412 | $ 1,561 | 623 | ||
Mezzanine Loan | Delray Plaza | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Notes receivable | 6,779 | 6,779 | 5,379 | |||
Maximum loan commitment | $ 13,123 | $ 13,123 | ||||
Interest rate | 15.00% | 15.00% | ||||
Interest income | $ 228 | 0 | $ 676 | 0 | ||
Mezzanine Loan | Nexton Square | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Notes receivable | 2,219 | 2,219 | $ 0 | |||
Maximum loan commitment | $ 2,314 | $ 2,314 | ||||
Interest rate | 10.00% | 10.00% | ||||
Interest income | $ 19 | $ 0 | $ 19 | $ 0 |
Notes Receivable (Details)
Notes Receivable (Details) - USD ($) | Oct. 23, 2018 | Oct. 04, 2018 | Oct. 02, 2018 | Sep. 30, 2018 | Sep. 18, 2018 | Aug. 31, 2018 | Dec. 31, 2017 | Nov. 10, 2016 | Sep. 30, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Notes receivable | $ 100,486,000 | $ 83,058,000 | |||||||
1405 Point | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Purchase option, percentage of development | 88.00% | ||||||||
1405 Point | Financial Guarantee | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Guarantor obligations, maximum exposure (up to) | $ 25,000,000 | ||||||||
1405 Point | Financial Guarantee | Letter of Credit | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Credit facility, amount outstanding | 2,100,000 | ||||||||
1405 Point | Construction loans | Beatty Development Group | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Maximum borrowing capacity | $ 67,000,000 | ||||||||
The Residences at Annapolis Junction | Financial Guarantee | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Guarantor obligations, maximum exposure (up to) | $ 25,000,000 | ||||||||
The Residences at Annapolis Junction | AJAO | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Purchase option, percentage of development | 88.00% | ||||||||
The Residences at Annapolis Junction | Construction loans | AJAO | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Maximum borrowing capacity | $ 60,000,000 | ||||||||
Shopping Center in Summerville, South Carolina | Bridge loan | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Notes receivable | $ 2,200,000 | ||||||||
Interest rate | 10.00% | ||||||||
Subsequent Event | The Residences at Annapolis Junction | AJAO | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Purchase option, selling price | $ 5,000,000 | ||||||||
Subsequent Event | The Residences at Annapolis Junction | Construction loans | AJAO | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Expiration period | 12 months | ||||||||
Duration of extension option | 12 months | ||||||||
Subsequent Event | The Interlock In West Midtown Atlanta | Bridge loan | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Maximum loan commitment | $ 4,000,000 | $ 3,000,000 | |||||||
Interest rate | 15.00% | ||||||||
Additional advances | $ 700,000 | ||||||||
Mezzanine Loan | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Notes receivable | 99,230,000 | 82,634,000 | |||||||
Maximum loan commitment | 121,447,000 | ||||||||
Mezzanine Loan | 1405 Point | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Notes receivable | 28,133,000 | 22,444,000 | |||||||
Maximum loan commitment | $ 28,232,000 | ||||||||
Interest rate | 8.00% | ||||||||
Mezzanine Loan | The Residences at Annapolis Junction | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Notes receivable | $ 46,396,000 | 43,021,000 | |||||||
Maximum loan commitment | $ 48,105,000 | ||||||||
Interest rate | 10.00% | ||||||||
Mezzanine Loan | North Decatur Square | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Notes receivable | $ 15,703,000 | $ 11,790,000 | |||||||
Maximum loan commitment | $ 29,673,000 | $ 29,700,000 | |||||||
Interest rate | 15.00% | ||||||||
Mezzanine Loan | Subsequent Event | North Decatur Square | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Additional advances | $ 2,200,000 |
Construction Contracts (Details
Construction Contracts (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Contractors [Abstract] | ||
Construction receivables retentions | $ 8,600 | $ 9,900 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Retention payable | 1,767 | 3,591 |
Construction | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Retention payable | 20,100 | 17,400 |
Portion Attributable To Pending Contracts | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred pre-contract costs | $ 700 | $ 600 |
Construction Contracts - Summar
Construction Contracts - Summary of Costs in Excess of Billings and Billings in Excess of Costs (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Change In Contract With Customer, Asset [Roll Forward] | |
Balance as of January 1, 2018 | $ 245 |
Transferred to receivables | (245) |
Construction contract costs and estimated earnings not billed during the period | 576 |
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion | 151 |
Balance as of September 30, 2018 | 727 |
Change In Contract With Customer, Liability [Roll Forward] | |
Balance as of January 1, 2018 | 3,591 |
Revenue recognized that was included in the balance at the beginning of the period | (3,591) |
Increases due to new billings, excluding amounts recognized as revenue during the period | 2,400 |
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion | (633) |
Balance as of September 30, 2018 | $ 1,767 |
Construction Contracts - Summ_2
Construction Contracts - Summary of Net Position (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Contractors [Abstract] | ||
Costs incurred on uncompleted construction contracts | $ 581,852 | $ 520,368 |
Estimated earnings | 20,137 | 18,070 |
Billings | (603,029) | (541,784) |
Net position | (1,040) | (3,346) |
Construction contract costs and estimated earnings in excess of billings | 727 | 245 |
Billings in excess of construction contract costs and estimated earnings | $ (1,767) | $ (3,591) |
Construction Contracts - Summ_3
Construction Contracts - Summary of Backlog (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue, Remaining Performance Obligation [Roll Forward] | ||||
Beginning backlog | $ 37,921 | $ 116,657 | $ 49,167 | $ 217,718 |
New contracts/change orders | 7,138 | 1,251 | 39,514 | 20,211 |
Work performed | (19,879) | (41,165) | (63,501) | (161,186) |
Ending backlog | $ 25,180 | $ 76,743 | $ 25,180 | $ 76,743 |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Expected completion of contracts | 12 months | 12 months | ||
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Expected completion of contracts | 18 months | 18 months |
Indebtedness - Additional Infor
Indebtedness - Additional Information (Details) | Oct. 12, 2018USD ($) | Jul. 27, 2018USD ($) | Jul. 12, 2018USD ($) | Jun. 29, 2018USD ($) | Jun. 14, 2018USD ($) | Jun. 01, 2018USD ($) | May 31, 2018USD ($) | Mar. 27, 2018USD ($) | Jan. 22, 2018 | Oct. 26, 2017USD ($)extension | Oct. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Aug. 28, 2018USD ($) | Mar. 28, 2018USD ($) | Dec. 31, 2017USD ($) |
Columbus Village | |||||||||||||||
Indebtedness | |||||||||||||||
Repayment of debt | $ 8,300,000 | ||||||||||||||
Southgate Square | |||||||||||||||
Indebtedness | |||||||||||||||
Face amount | $ 22,000,000 | ||||||||||||||
249 Central Park Retail | |||||||||||||||
Indebtedness | |||||||||||||||
Face amount | $ 35,000,000 | ||||||||||||||
Johns Hopkins Village | |||||||||||||||
Indebtedness | |||||||||||||||
Face amount | $ 53,000,000 | ||||||||||||||
Effective interest rate | 4.19% | ||||||||||||||
LIBOR | Sandbridge Commons | |||||||||||||||
Indebtedness | |||||||||||||||
Stated interest rate, basis spread on variable rate | 1.75% | ||||||||||||||
LIBOR | Southgate Square | |||||||||||||||
Indebtedness | |||||||||||||||
Stated interest rate, basis spread on variable rate | 1.60% | ||||||||||||||
LIBOR | River City | |||||||||||||||
Indebtedness | |||||||||||||||
Stated interest rate, basis spread on variable rate | 1.50% | ||||||||||||||
LIBOR | 249 Central Park Retail | |||||||||||||||
Indebtedness | |||||||||||||||
Stated interest rate, basis spread on variable rate | 1.60% | ||||||||||||||
LIBOR | Johns Hopkins Village | |||||||||||||||
Indebtedness | |||||||||||||||
Stated interest rate, basis spread on variable rate | 1.25% | ||||||||||||||
Revolving Credit Facility | |||||||||||||||
Indebtedness | |||||||||||||||
Interest rate on credit facility as of end of period | 3.81% | ||||||||||||||
Term Loan Facility | |||||||||||||||
Indebtedness | |||||||||||||||
Interest rate on credit facility as of end of period | 3.76% | ||||||||||||||
Minimum | Revolving Credit Facility | |||||||||||||||
Indebtedness | |||||||||||||||
Basis points on unused commitment fee | 0.15% | ||||||||||||||
Minimum | Revolving Credit Facility | LIBOR | |||||||||||||||
Indebtedness | |||||||||||||||
Stated interest rate, basis spread on variable rate | 1.40% | ||||||||||||||
Minimum | Term Loan Facility | LIBOR | |||||||||||||||
Indebtedness | |||||||||||||||
Stated interest rate, basis spread on variable rate | 1.35% | ||||||||||||||
Maximum | Revolving Credit Facility | |||||||||||||||
Indebtedness | |||||||||||||||
Basis points on unused commitment fee | 0.25% | ||||||||||||||
Maximum | Revolving Credit Facility | LIBOR | |||||||||||||||
Indebtedness | |||||||||||||||
Stated interest rate, basis spread on variable rate | 2.00% | ||||||||||||||
Maximum | Term Loan Facility | LIBOR | |||||||||||||||
Indebtedness | |||||||||||||||
Stated interest rate, basis spread on variable rate | 1.95% | ||||||||||||||
Construction loans | |||||||||||||||
Indebtedness | |||||||||||||||
Borrowings under construction loans | $ 59,000,000 | ||||||||||||||
Construction loans | Line of credit | River City | |||||||||||||||
Indebtedness | |||||||||||||||
Aggregate capacity under the credit facility | $ 16,300,000 | ||||||||||||||
Construction loans | Line of credit | Brooks Crossing | |||||||||||||||
Indebtedness | |||||||||||||||
Aggregate capacity under the credit facility | $ 15,600,000 | ||||||||||||||
Construction loans | Line of credit | Market at Mill Creek | |||||||||||||||
Indebtedness | |||||||||||||||
Aggregate capacity under the credit facility | $ 16,200,000 | ||||||||||||||
Construction loans | Line of credit | LIBOR | Brooks Crossing | |||||||||||||||
Indebtedness | |||||||||||||||
Stated interest rate, basis spread on variable rate | 1.60% | ||||||||||||||
Construction loans | Line of credit | LIBOR | Market at Mill Creek | |||||||||||||||
Indebtedness | |||||||||||||||
Stated interest rate, basis spread on variable rate | 1.55% | ||||||||||||||
Secured Debt | Lexington Square | |||||||||||||||
Indebtedness | |||||||||||||||
Face amount | $ 15,000,000 | ||||||||||||||
Interest rate | 4.50% | ||||||||||||||
Secured Debt | Line of credit | Subsequent Event | Lightfoot Marketplace | |||||||||||||||
Indebtedness | |||||||||||||||
Aggregate capacity under the credit facility | $ 17,900,000 | ||||||||||||||
Proceeds from lines of credit | $ 10,500,000 | ||||||||||||||
Operating Partnership | New Credit Facility | |||||||||||||||
Indebtedness | |||||||||||||||
Aggregate capacity under the credit facility | $ 300,000,000 | $ 330,000,000 | |||||||||||||
Operating Partnership | New Credit Facility | Revolving Credit Facility | |||||||||||||||
Indebtedness | |||||||||||||||
Aggregate capacity under the credit facility | 150,000,000 | ||||||||||||||
Accordion feature maximum borrowing capacity | $ 450,000,000 | ||||||||||||||
Number of extension options | extension | 2 | ||||||||||||||
Duration of extension option | 6 months | ||||||||||||||
Extension fee percentage | 0.075% | ||||||||||||||
Credit facility, amount outstanding | 102,000,000 | $ 66,000,000 | |||||||||||||
Operating Partnership | New Credit Facility | Revolving Credit Facility | Subsequent Event | |||||||||||||||
Indebtedness | |||||||||||||||
Increase in borrowing | $ 16,000,000 | ||||||||||||||
Operating Partnership | New Credit Facility | Term Loan Facility | |||||||||||||||
Indebtedness | |||||||||||||||
Aggregate capacity under the credit facility | $ 150,000,000 | $ 180,000,000 | |||||||||||||
Credit facility, amount outstanding | $ 180,000,000 | $ 150,000,000 | |||||||||||||
Initial tranche | Secured Debt | Line of credit | Subsequent Event | Lightfoot Marketplace | |||||||||||||||
Indebtedness | |||||||||||||||
Effective interest rate | 4.77% | ||||||||||||||
Initial tranche | Secured Debt | Line of credit | Subsequent Event | LIBOR | Lightfoot Marketplace | |||||||||||||||
Indebtedness | |||||||||||||||
Stated interest rate, basis spread on variable rate | 1.75% | ||||||||||||||
Stabilization of property | Initial tranche | Secured Debt | Line of credit | Subsequent Event | Lightfoot Marketplace | |||||||||||||||
Indebtedness | |||||||||||||||
Effective interest rate | 4.62% | ||||||||||||||
Stabilization of property | Initial tranche | Secured Debt | Line of credit | Subsequent Event | LIBOR | Lightfoot Marketplace | |||||||||||||||
Indebtedness | |||||||||||||||
Stated interest rate, basis spread on variable rate | 1.60% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - USD ($) | Oct. 12, 2018 | Sep. 30, 2018 | Jul. 27, 2018 | Jul. 16, 2018 | Apr. 23, 2018 | Mar. 07, 2018 | Dec. 31, 2017 |
Derivatives | |||||||
Interest rate agreement, notional amount | $ 452,930,000 | $ 401,079,000 | |||||
Unrealized losses | 130,000 | ||||||
Realized gain (loss) reclassified to earnings | (67,000) | ||||||
Gain (loss) reclassified during next 12 months | (173,000) | ||||||
Johns Hopkins Village | |||||||
Derivatives | |||||||
Effective interest rate | 4.19% | ||||||
Not designated as accounting hedges | |||||||
Derivatives | |||||||
Interest rate agreement, notional amount | 400,000,000 | 401,079,000 | |||||
Not designated as accounting hedges | Interest Rate Caps | |||||||
Derivatives | |||||||
Interest rate agreement, notional amount | 300,000,000 | $ 50,000,000 | $ 50,000,000 | 345,000,000 | |||
Strike rate | 2.50% | 2.25% | |||||
Interest rate cap agreement, premium (less than) | $ 300,000 | $ 300,000 | |||||
Not designated as accounting hedges | Interest Rate Swaps | |||||||
Derivatives | |||||||
Interest rate agreement, notional amount | $ 100,000,000 | $ 56,079,000 | |||||
Not designated as accounting hedges | Interest Rate Swaps | Operating Partnership | |||||||
Derivatives | |||||||
Interest rate agreement, notional amount | $ 50,000,000 | ||||||
Fixed interest rate | 2.783% | ||||||
Line of credit | Subsequent Event | Secured Debt | Lightfoot Marketplace | |||||||
Derivatives | |||||||
Proceeds from lines of credit | $ 10,500,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Derivatives (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jul. 16, 2018 | Mar. 07, 2018 | Dec. 31, 2017 | |
Derivatives | |||||||
Notional Amount | $ 452,930,000 | $ 452,930,000 | $ 401,079,000 | ||||
Asset, Fair Value | 3,341,000 | 3,341,000 | 1,525,000 | ||||
Liability, Fair Value | (63,000) | (63,000) | (69,000) | ||||
Change in fair value of interest rate derivatives | 298,000 | $ 87,000 | 1,256,000 | $ 300,000 | |||
Unrealized cash flow hedge losses | (130,000) | 0 | (130,000) | 0 | |||
Total change in fair value of interest rate derivatives | 168,000 | 87,000 | 1,126,000 | 300,000 | |||
Interest rate swaps | |||||||
Derivatives | |||||||
Total change in fair value of interest rate derivatives | 319,000 | 124,000 | 673,000 | 392,000 | |||
Interest rate caps | |||||||
Derivatives | |||||||
Total change in fair value of interest rate derivatives | (151,000) | $ (37,000) | 453,000 | $ (92,000) | |||
Not designated as accounting hedges | |||||||
Derivatives | |||||||
Notional Amount | 400,000,000 | 400,000,000 | 401,079,000 | ||||
Asset, Fair Value | 3,341,000 | 3,341,000 | 1,525,000 | ||||
Liability, Fair Value | 0 | 0 | (69,000) | ||||
Not designated as accounting hedges | Interest rate swaps | |||||||
Derivatives | |||||||
Notional Amount | 100,000,000 | 100,000,000 | 56,079,000 | ||||
Asset, Fair Value | 744,000 | 744,000 | 10,000 | ||||
Liability, Fair Value | 0 | 0 | (69,000) | ||||
Not designated as accounting hedges | Interest rate caps | |||||||
Derivatives | |||||||
Notional Amount | 300,000,000 | 300,000,000 | $ 50,000,000 | $ 50,000,000 | 345,000,000 | ||
Asset, Fair Value | 2,597,000 | 2,597,000 | 1,515,000 | ||||
Liability, Fair Value | 0 | 0 | 0 | ||||
Designated as accounting hedge | Interest rate swaps | |||||||
Derivatives | |||||||
Notional Amount | 52,930,000 | 52,930,000 | 0 | ||||
Asset, Fair Value | 0 | 0 | 0 | ||||
Liability, Fair Value | $ (63,000) | $ (63,000) | $ 0 |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) | Oct. 04, 2018 | Oct. 01, 2018 | Aug. 02, 2018 | Jul. 05, 2018 | Jul. 02, 2018 | Apr. 17, 2018 | Apr. 05, 2018 | Apr. 02, 2018 | Feb. 26, 2018 | Jan. 29, 2018 | Jan. 04, 2018 | Jan. 02, 2018 | Jan. 10, 2017 | Jul. 10, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Class of Stock | |||||||||||||||||||
Authorized capital shares of common stock (in shares) | 500,000,000 | 500,000,000 | 500,000,000 | ||||||||||||||||
Authorized capital shares of preferred stock (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | ||||||||||||||||
Common stock, shares issued (in shares) | 49,576,222 | 49,576,222 | 44,937,763 | ||||||||||||||||
Common stock, shares outstanding (in shares) | 49,576,222 | 49,576,222 | 44,937,763 | ||||||||||||||||
Preferred stock issued (in shares) | 0 | 0 | 0 | ||||||||||||||||
Preferred stock outstanding (in shares) | 0 | 0 | 0 | ||||||||||||||||
Percentage of Operating Partnership held | 74.30% | 74.30% | 72.00% | ||||||||||||||||
Aggregate cash dividends and distributions, paid | $ 37,550,000 | $ 31,740,000 | |||||||||||||||||
Dividends and distributions declared per common share and unit (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.19 | $ 0.60 | $ 0.57 | ||||||||||||||
Parkway Centre | |||||||||||||||||||
Class of Stock | |||||||||||||||||||
Acquisition, common units/shares issued or to be issued (in shares) | 117,228 | ||||||||||||||||||
Consolidated Entities Under Development Or Construction | Operating Partnership | |||||||||||||||||||
Class of Stock | |||||||||||||||||||
Ownership interest percentage in properties | $ 0 | $ 0 | $ 0 | ||||||||||||||||
Class A units | |||||||||||||||||||
Class of Stock | |||||||||||||||||||
Class A Units not held by Company (in shares) | 17,166,899 | 17,166,899 | |||||||||||||||||
Units redeemed (in shares) | 123,504 | 187,142 | |||||||||||||||||
Payments for redemption of partnership units | $ 2,500,000 | ||||||||||||||||||
Class A units | Operating Partnership | |||||||||||||||||||
Class of Stock | |||||||||||||||||||
Aggregate cash dividends and distributions, paid | $ 3,500,000 | $ 3,500,000 | $ 3,300,000 | ||||||||||||||||
Class B units | Columbus Village | |||||||||||||||||||
Class of Stock | |||||||||||||||||||
Acquisition, common units/shares issued or to be issued (in shares) | 1,000,000 | ||||||||||||||||||
Class C units | Columbus Village | |||||||||||||||||||
Class of Stock | |||||||||||||||||||
Acquisition, common units/shares issued or to be issued (in shares) | 275,000 | ||||||||||||||||||
Common Stock | |||||||||||||||||||
Class of Stock | |||||||||||||||||||
Shares issued (in shares) | 163,000 | 4,227,978 | |||||||||||||||||
Common stock, shares outstanding (in shares) | 49,576,222 | 49,576,222 | 44,937,763 | ||||||||||||||||
Units redeemed (in shares) | (286,504) | ||||||||||||||||||
Aggregate cash dividends and distributions, paid | $ 9,700,000 | $ 9,000,000 | $ 8,500,000 | ||||||||||||||||
Noncontrolling interests | Class A units | Johns Hopkins Village | |||||||||||||||||||
Class of Stock | |||||||||||||||||||
Shares issued (in shares) | 36,684 | ||||||||||||||||||
New ATM Program | |||||||||||||||||||
Class of Stock | |||||||||||||||||||
Consideration received on transaction | $ 59,700,000 | ||||||||||||||||||
New ATM Program | Common Stock | |||||||||||||||||||
Class of Stock | |||||||||||||||||||
Maximum aggregate offering price of shares to be sold (up to) | $ 125,000,000 | ||||||||||||||||||
Shares issued (in shares) | 4,227,978 | ||||||||||||||||||
Weighted average price (in dollars per share) | $ 14.33 | $ 14.33 | |||||||||||||||||
Subsequent Event | |||||||||||||||||||
Class of Stock | |||||||||||||||||||
Shares issued (in shares) | 52,200 | ||||||||||||||||||
Subsequent Event | Class A units | |||||||||||||||||||
Class of Stock | |||||||||||||||||||
Units redeemed (in shares) | 56,495 | ||||||||||||||||||
Payments for redemption of partnership units | $ 100,000 | ||||||||||||||||||
Subsequent Event | Class A units | Operating Partnership | |||||||||||||||||||
Class of Stock | |||||||||||||||||||
Aggregate cash dividends and distributions, paid | $ 3,400,000 | ||||||||||||||||||
Subsequent Event | Common Stock | |||||||||||||||||||
Class of Stock | |||||||||||||||||||
Aggregate cash dividends and distributions, paid | $ 9,900,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 14, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 13, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Stock-based compensation expense | $ 0.4 | $ 0.3 | $ 1.6 | $ 1.4 | ||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Restricted stock granted (in shares) | 153,069 | |||||
Restricted stock granted, grant date fair value (in dollars per share) | $ 13.54 | |||||
Employee restricted stock award, vesting period | 2 years | |||||
Non-employee restricted stock award vest grant over period | 1 year | |||||
Nonvested restricted shares outstanding (in shares) | 136,301 | 136,301 | ||||
Unrecognized compensation cost | $ 0.9 | $ 0.9 | ||||
Unrecognized compensation cost, recognition period | 18 months | |||||
Restricted Stock | Grant Date | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Restricted stock award, vesting percentage | 33.33% | |||||
Restricted Stock | First Anniversary | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Restricted stock award, vesting percentage | 33.33% | |||||
Restricted Stock | Second Anniversary | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Restricted stock award, vesting percentage | 33.33% | |||||
Amended and Restated 2013 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Number of additional shares authorized (in shares) | 1,000,000 | |||||
Number of shares reserved for issuance (in shares) | 1,700,000 | 700,000 | ||||
Shares available for issuance (in shares) | 1,032,329 | 1,032,329 | ||||
Long Term Incentive Plan | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Performance period | 3 years | |||||
Service period | 2 years |
Fair Value of Financial Instr_3
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, 2018 | Dec. 31, 2017 |
Carrying Value | ||
Fair Value of Financial Instruments | ||
Indebtedness | $ 653,750 | $ 517,272 |
Notes receivable | 100,486 | 83,058 |
Interest rate swap liabilities | 63 | 69 |
Interest rate swap and cap assets | 3,341 | 1,525 |
Fair Value | ||
Fair Value of Financial Instruments | ||
Indebtedness | 647,311 | 518,417 |
Notes receivable | 100,486 | 83,058 |
Interest rate swap liabilities | 63 | 69 |
Interest rate swap and cap assets | $ 3,341 | $ 1,525 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | May 13, 2013 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Construction Contracts | |||||
Related Party Transactions | |||||
Revenue from contracts with affiliated entities | $ 0.1 | $ 0.1 | $ 1.5 | $ 7.4 | |
Gross profit from related parties | 0.1 | 0.1 | 0.3 | 0.4 | |
Real Estate Service Fees | |||||
Related Party Transactions | |||||
Revenue from contracts with affiliated entities | 0 | 0 | 0 | 0 | |
Cost Reimbursements | |||||
Related Party Transactions | |||||
Revenue from contracts with affiliated entities | $ 0 | $ 0 | 0 | $ 0 | |
Tax Protection Agreements | Operating Partnership | |||||
Related Party Transactions | |||||
Future sale period for properties | 7 years | ||||
Future sale period for properties in limited number of cases | 10 years | ||||
Period of opportunity to guarantee debt | 10 years | ||||
Tax Protection Agreements | Operating Partnership | Executive Officers | |||||
Related Party Transactions | |||||
Guarantee of debt | $ 0.3 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Commitments and Contingencies | ||
Line of credit, performance and payment bonds | $ 33.4 | $ 44.9 |
Financial Guarantee | Letter of Credit | 1405 Point | ||
Commitments and Contingencies | ||
Credit facility, amount outstanding | 2.1 | |
Credit facility, amount outstanding | 2.1 | 2.1 |
Operating Partnership | ||
Commitments and Contingencies | ||
Credit facility, amount outstanding | $ 2.1 | $ 2.1 |