Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001571283 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-36008 | |
Entity Registrant Name | Rexford Industrial Realty, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 46-2024407 | |
Entity Address, Address Line One | 11620 Wilshire Boulevard, Suite 1000 | |
Entity Address, City or Town | Los Angeles | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90025 | |
City Area Code | 310 | |
Local Phone Number | 966-1680 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 116,327,336 | |
Common Stock | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | REXR | |
Security Exchange Name | NYSE | |
Series A Preferred Stock | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 5.875% Series A Cumulative Redeemable Preferred Stock | |
Trading Symbol | REXR-PA | |
Security Exchange Name | NYSE | |
Series B Preferred Stock | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 5.875% Series B Cumulative Redeemable Preferred Stock | |
Trading Symbol | REXR-PB | |
Security Exchange Name | NYSE | |
Series C Preferred Stock | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 5.625% Series C Cumulative Redeemable Preferred Stock | |
Trading Symbol | REXR-PC | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Land | $ 2,068,460 | $ 1,927,098 |
Buildings and improvements | 1,748,675 | 1,680,178 |
Tenant improvements | 75,341 | 72,179 |
Furniture, fixtures and equipment | 141 | 141 |
Construction in progress | 26,791 | 18,794 |
Total real estate held for investment | 3,919,408 | 3,698,390 |
Accumulated depreciation | (316,812) | (296,777) |
Investments in real estate, net | 3,602,596 | 3,401,613 |
Cash and cash equivalents | 112,432 | 78,857 |
Restricted cash | 46 | 0 |
Rents and other receivables, net | 5,859 | 5,889 |
Deferred rent receivable, net | 31,339 | 29,671 |
Deferred leasing costs, net | 19,482 | 18,688 |
Deferred loan costs, net | 2,770 | 695 |
Acquired lease intangible assets, net | 76,138 | 73,090 |
Acquired indefinite-lived intangible | 5,156 | 5,156 |
Interest rate swap asset | 0 | 766 |
Other assets | 10,717 | 9,671 |
Acquisition related deposits | 5,896 | 14,526 |
Total Assets | 3,872,431 | 3,638,622 |
Liabilities | ||
Notes payable | 903,802 | 857,842 |
Interest rate swap liability | 22,690 | 8,488 |
Accounts payable, accrued expenses and other liabilities | 39,000 | 31,112 |
Dividends payable | 25,931 | 21,624 |
Acquired lease intangible liabilities, net | 63,914 | 59,340 |
Tenant security deposits | 30,342 | 28,779 |
Prepaid rents | 8,074 | 8,988 |
Total Liabilities | 1,093,753 | 1,016,173 |
Rexford Industrial Realty, Inc. stockholders’ equity | ||
Common Stock, $0.01 par value per share, 489,950,000 authorized and 116,331,347 and 113,793,300 shares outstanding at March 31, 2020 and December 31, 2019, respectively | 1,162 | 1,136 |
Additional paid in capital | 2,524,274 | 2,439,007 |
Cumulative distributions in excess of earnings | (132,843) | (118,751) |
Accumulated other comprehensive loss | (21,950) | (7,542) |
Total stockholders’ equity | 2,612,970 | 2,556,177 |
Noncontrolling interests | 165,708 | 66,272 |
Total Equity | 2,778,678 | 2,622,449 |
Total Liabilities and Equity | 3,872,431 | 3,638,622 |
5.875% series A cumulative redeemable preferred stock, 3,600,000 shares outstanding at March 31, 2020 and December 31, 2019 ($90,000 liquidation preference) | ||
Rexford Industrial Realty, Inc. stockholders’ equity | ||
Preferred stock, $0.01 par value per share, 10,050,000 shares authorized, at March 31, 2020 and December 31, 2019 | 86,651 | 86,651 |
5.875% series B cumulative redeemable preferred stock, 3,000,000 shares outstanding at March 31, 2020 and December 31, 2019 ($75,000 liquidation preference) | ||
Rexford Industrial Realty, Inc. stockholders’ equity | ||
Preferred stock, $0.01 par value per share, 10,050,000 shares authorized, at March 31, 2020 and December 31, 2019 | 72,443 | 72,443 |
5.625% series C cumulative redeemable preferred stock, 3,450,000 shares outstanding at March 31, 2020 and December 31, 2019 ($86,250 liquidation preference) | ||
Rexford Industrial Realty, Inc. stockholders’ equity | ||
Preferred stock, $0.01 par value per share, 10,050,000 shares authorized, at March 31, 2020 and December 31, 2019 | $ 83,233 | $ 83,233 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,050,000 | 10,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 489,950,000 | 489,950,000 |
Common stock, shares outstanding (in shares) | 116,331,347 | 113,793,300 |
Series A Preferred Stock | ||
Preferred Stock, Dividend Rate, Percentage | 5.875% | 5.875% |
Preferred stock, shares outstanding (in shares) | 3,600,000 | 3,600,000 |
Preferred Stock, Liquidation Preference, Value | $ 90,000,000 | $ 90,000,000 |
Series B Preferred Stock | ||
Preferred Stock, Dividend Rate, Percentage | 5.875% | 5.875% |
Preferred stock, shares outstanding (in shares) | 3,000,000 | 3,000,000 |
Preferred Stock, Liquidation Preference, Value | $ 75,000,000 | $ 75,000,000 |
Series C Preferred Stock | ||
Preferred Stock, Dividend Rate, Percentage | 5.625% | 5.625% |
Preferred stock, shares outstanding (in shares) | 3,450,000 | 3,450,000 |
Preferred Stock, Liquidation Preference, Value | $ 86,250,000 | $ 86,250,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
REVENUES | ||
Rental income | $ 77,490 | $ 59,604 |
Management, leasing and development services | 93 | 102 |
Interest income | 97 | 657 |
TOTAL REVENUES | 77,680 | 60,363 |
OPERATING EXPENSES | ||
Property expenses | 18,114 | 13,812 |
General and administrative | 9,317 | 7,344 |
Depreciation and amortization | 27,523 | 21,996 |
TOTAL OPERATING EXPENSES | 54,954 | 43,152 |
OTHER EXPENSES | ||
Acquisition expenses | 5 | 23 |
Interest expense | 7,449 | 6,471 |
TOTAL EXPENSES | 62,408 | 49,646 |
NET INCOME | 15,272 | 10,717 |
Less: net income attributable to noncontrolling interests | (717) | (201) |
NET INCOME ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC. | 14,555 | 10,516 |
Less: preferred stock dividends | (3,636) | (2,423) |
Less: earnings allocated to participating securities | (131) | (114) |
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 10,788 | $ 7,979 |
Net income attributable to common stockholders - basic (in dollars per share) | $ 0.09 | $ 0.08 |
Net income attributable to common stockholders - diluted (in dollars per share) | $ 0.09 | $ 0.08 |
Weighted average shares of common stock outstanding - basic (in shares) | 114,054,434 | 98,342,677 |
Weighted average shares of common stock outstanding - diluted (in shares) | 114,314,331 | 98,607,786 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 15,272 | $ 10,717 |
Other comprehensive loss: cash flow hedge adjustment | (14,968) | (5,127) |
Comprehensive income | 304 | 5,590 |
Comprehensive income attributable to noncontrolling interests | (157) | (75) |
Comprehensive income attributable to Rexford Industrial Realty, Inc. | $ 147 | $ 5,515 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Total Stockholders’ Equity | Preferred Stock | Common Stock | Additional Paid-in Capital | Cumulative Distributions in Excess of Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests |
Beginning Balance at Dec. 31, 2018 | $ 1,908,423 | $ 1,876,094 | $ 159,094 | $ 966 | $ 1,798,113 | $ (88,341) | $ 6,262 | $ 32,329 |
Beginning Balance (in shares) at Dec. 31, 2018 | 96,810,504 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of adoption of ASC 842 | (222) | (222) | (222) | |||||
Issuance of common stock (in shares) | 7,148,746 | |||||||
Issuance of common stock | 248,394 | 248,394 | $ 71 | 248,323 | ||||
Offering costs | (3,974) | (3,974) | 0 | (3,974) | ||||
Share-based compensation (in shares) | 86,919 | |||||||
Share-based compensation | 2,613 | 511 | $ 1 | 510 | 2,102 | |||
Shares acquired to satisfy employee tax withholding requirements on vesting restricted stock (in shares) | (23,090) | |||||||
Shares acquired to satisfy employee tax withholding requirements on vesting restricted stock | (791) | (791) | (791) | |||||
Conversion of units to common stock (in shares) | 4,967 | |||||||
Conversion of units to common stock | 0 | 37 | 37 | (37) | ||||
Net income | 10,717 | 10,516 | 2,423 | 8,093 | 201 | |||
Other comprehensive income (loss) | (5,127) | (5,001) | (5,001) | (126) | ||||
Preferred stock dividends | (2,423) | (2,423) | (2,423) | |||||
Common stock dividends | (19,245) | (19,245) | (19,245) | |||||
Distributions | (529) | (529) | ||||||
Ending Balance at Mar. 31, 2019 | 2,137,836 | 2,103,896 | 159,094 | $ 1,038 | 2,042,218 | (99,715) | 1,261 | 33,940 |
Ending Balance (in shares) at Mar. 31, 2019 | 104,028,046 | |||||||
Beginning Balance at Dec. 31, 2019 | $ 2,622,449 | 2,556,177 | 242,327 | $ 1,136 | 2,439,007 | (118,751) | (7,542) | 66,272 |
Beginning Balance (in shares) at Dec. 31, 2019 | 113,793,300 | 113,793,300 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock (in shares) | 2,206,957 | 2,206,957 | ||||||
Issuance of common stock | $ 80,814 | 80,814 | $ 22 | 80,792 | ||||
Offering costs | (1,383) | (1,383) | 0 | (1,383) | ||||
Issuance of 4.00% cumulative redeemable convertible preferred units | 63,277 | 63,277 | ||||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance, Preferred | 40,787 | 40,787 | ||||||
Share-based compensation (in shares) | 102,275 | |||||||
Share-based compensation | 3,627 | 699 | $ 1 | 698 | 2,928 | |||
Shares acquired to satisfy employee tax withholding requirements on vesting restricted stock (in shares) | (25,797) | |||||||
Shares acquired to satisfy employee tax withholding requirements on vesting restricted stock | (1,207) | (1,207) | (1,207) | |||||
Conversion of units to common stock (in shares) | 254,612 | |||||||
Conversion of units to common stock | 0 | 6,370 | $ 3 | 6,367 | (6,370) | |||
Net income | 15,272 | 14,555 | 3,636 | 10,919 | 717 | |||
Other comprehensive income (loss) | (14,968) | (14,408) | (14,408) | (560) | ||||
Preferred stock dividends | (3,636) | (3,636) | (3,636) | |||||
Preferred unit distributions | (423) | (423) | ||||||
Common stock dividends | (25,011) | (25,011) | (25,011) | |||||
Distributions | (920) | (920) | ||||||
Ending Balance at Mar. 31, 2020 | $ 2,778,678 | $ 2,612,970 | $ 242,327 | $ 1,162 | $ 2,524,274 | $ (132,843) | $ (21,950) | $ 165,708 |
Ending Balance (in shares) at Mar. 31, 2020 | 116,331,347 | 116,331,347 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Parenthetical) - $ / shares | Sep. 20, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Common Stock, Dividends, Per Share, Declared | $ 0.215 | $ 0.185 | ||
Series A Preferred Stock | ||||
Preferred Stock, Dividends Per Share, Declared | $ 0.367188 | 0.367188 | ||
Preferred Stock, Dividend Rate, Percentage | 5.875% | 5.875% | ||
Series B Preferred Stock | ||||
Preferred Stock, Dividends Per Share, Declared | $ 0.367188 | $ 0.367188 | ||
Preferred Stock, Dividend Rate, Percentage | 5.875% | 5.875% | ||
Series C Preferred Stock | ||||
Preferred Stock, Dividends Per Share, Declared | $ 0.351563 | |||
Preferred Stock, Dividend Rate, Percentage | 5.625% | 5.625% | 5.625% | |
Series 2 CPOP Units [Member] | ||||
Preferred Stock, Dividend Rate, Percentage | 4.00% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 15,272 | $ 10,717 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 27,523 | 21,996 |
Amortization of (below) above market lease intangibles, net | (2,402) | (1,751) |
Amortization of debt issuance costs | 343 | 344 |
Amortization of discount on notes payable | (16) | 1 |
Equity based compensation expense | 3,570 | 2,579 |
Straight-line rent | (1,672) | (2,067) |
Change in working capital components: | ||
Rents and other receivables | 300 | 396 |
Deferred leasing costs | (1,820) | (1,413) |
Other assets | 170 | 533 |
Accounts payable, accrued expenses and other liabilities | 5,437 | 3,936 |
Tenant security deposits | 988 | 753 |
Prepaid rents | (1,200) | 160 |
Net cash provided by operating activities | 46,493 | 36,184 |
Payments to Acquire Commercial Real Estate | 46,503 | 145,253 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (15,607) | (9,712) |
Payments for deposits on real estate acquisitions | (1,028) | (10,475) |
Net cash used in investing activities | (63,138) | (165,440) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Issuance of common stock, net | 79,431 | 244,420 |
Repayment of notes payable | (50) | (38) |
Debt issuance costs | (2,225) | 0 |
Dividends paid to preferred stockholders | (3,636) | (2,423) |
Dividends paid to common stockholders | (21,052) | (15,490) |
Distributions paid to common unitholders | (572) | (448) |
Distributions paid to preferred unitholders | (423) | 0 |
Repurchase of common shares to satisfy employee tax withholding requirements | (1,207) | (791) |
Net cash provided by financing activities | 50,266 | 225,230 |
Increase in cash, cash equivalents and restricted cash | 33,621 | 95,974 |
Cash, cash equivalents and restricted cash, beginning of period | 78,857 | 180,601 |
Cash, cash equivalents and restricted cash, end of period | 112,478 | 276,575 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest (net of capitalized interest of $882 and $629 for the three months ended March 31, 2020 and 2019, respectively) | 8,685 | 6,940 |
Supplemental disclosure of noncash transactions: | ||
Operating lease right-of-use assets obtained in exchange for lease liabilities upon adoption of ASC 842 on January 1, 2019 | 0 | 3,262 |
Operating lease right-of-use assets obtained in exchange for lease liabilities subsequent to adoption of ASC 842 | 1,014 | 3,457 |
Noncash or Part Noncash Acquisition, Debt Assumed | 45,833 | 0 |
Accrual for capital expenditures | 7,239 | 5,481 |
Accrual of dividends | 25,931 | 19,774 |
Operating Partnership Units | ||
Supplemental disclosure of noncash transactions: | ||
Issuance of 4.0% cumulative redeemable convertible preferred units in connection with acquisition of real estate | 63,277 | |
Series 2 CPOP Units [Member] | ||
Supplemental disclosure of noncash transactions: | ||
Issuance of 4.0% cumulative redeemable convertible preferred units in connection with acquisition of real estate | $ 40,787 | $ 0 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Cash Flows [Abstract] | ||
Interest costs capitalized | $ 882 | $ 629 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Rexford Industrial Realty, Inc. is a self-administered and self-managed full-service real estate investment trust (“REIT”) focused on owning and operating industrial properties in Southern California infill markets. We were formed as a Maryland corporation on January 18, 2013, and Rexford Industrial Realty, L.P. (the “Operating Partnership”), of which we are the sole general partner, was formed as a Maryland limited partnership on January 18, 2013. Through our controlling interest in our Operating Partnership and its subsidiaries, we own, manage, lease, acquire and develop industrial real estate principally located in Southern California infill markets, and, from time to time, acquire or provide mortgage debt secured by industrial property. As of March 31, 2020 , our consolidated portfolio consisted of 223 properties with approximately 27.4 million rentable square feet. In addition, we currently manage 19 properties with approximately 1.0 million rentable square feet. The terms “us,” “we,” “our,” and the “Company” as used in these financial statements refer to Rexford Industrial Realty, Inc. and its subsidiaries (including our Operating Partnership). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation As of March 31, 2020 and December 31, 2019 , and for the three months ended March 31, 2020 and 2019 , the financial statements presented are the consolidated financial statements of Rexford Industrial Realty, Inc. and its subsidiaries, including our Operating Partnership. All significant intercompany balances and transactions have been eliminated in the consolidated financial statements. Under consolidation guidance, we have determined that our Operating Partnership is a variable interest entity because the holders of limited partnership interests do not have substantive kick-out rights or participating rights. Furthermore, we are the primary beneficiary of the Operating Partnership because we have the obligation to absorb losses and the right to receive benefits from the Operating Partnership and the exclusive power to direct the activities of the Operating Partnership. As of March 31, 2020 and December 31, 2019 , the assets and liabilities of the Company and the Operating Partnership are substantially the same, as the Company does not have any significant assets other than its investment in the Operating Partnership. The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) may have been condensed or omitted pursuant to SEC rules and regulations, although we believe that the disclosures are adequate to make their presentation not misleading. The accompanying unaudited financial statements include, in our opinion, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial information set forth therein. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 . The interim financial statements should be read in conjunction with the consolidated financial statements in our 2019 Annual Report on Form 10-K and the notes thereto. Any references to the number of properties and square footage are unaudited and outside the scope of our independent registered public accounting firm’s review of our financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include all cash and liquid investments with an initial maturity of three months or less. The carrying amount approximates fair value due to the short-term maturity of these investments. Restricted Cash Restricted cash is comprised of escrow reserves that we are required to set aside for future costs as required by certain agreements with our lenders, and from time to time includes cash proceeds from property sales that are being held by qualified intermediaries for purposes of facilitating tax-deferred like-kind exchanges under Section 1031 of the Internal Revenue Code (“1031 Exchange”). As of March 31, 2020 , the restricted cash balance of $46 thousand was being reserved for real estate taxes related to the property located at 960-970 Knox Street. As of December 31, 2019 we did not have a balance in restricted cash. Restricted cash balances are included with cash and cash equivalents balances as of the beginning and ending of each period presented in the consolidated statements of cash flows. The following table provides a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the three months ended March 31, 2020 and 2020 (in thousands): Three Months Ended March 31, 2020 2019 Cash and cash equivalents $ 78,857 $ 180,601 Restricted cash — — Cash, cash equivalents and restricted cash, beginning of period $ 78,857 $ 180,601 Cash and cash equivalents $ 112,432 $ 276,575 Restricted cash 46 — Cash, cash equivalents and restricted cash, end of period $ 112,478 $ 276,575 Investments in Real Estate Acquisitions We account for acquisitions of properties under Accounting Standards Update (“ASU”) 2017-01, Business Combinations - Clarifying the Definition of a Business (“ASU 2017-01”), which provides a framework for determining whether transactions should be accounted for as acquisitions of assets or businesses and further revises the definition of a business. Our acquisitions of properties generally no longer meet the revised definition of a business and accordingly are accounted for as asset acquisitions. For asset acquisitions, we allocate the cost of the acquisition, which includes the purchase price and associated acquisition transaction costs, to the individual assets acquired and liabilities assumed on a relative fair value basis. These individual assets and liabilities typically include land, building and improvements, tenant improvements, intangible assets and liabilities related to above- and below-market leases, intangible assets related to in-place leases, and from time to time, assumed debt. As there is no measurement period concept for an asset acquisition, the allocated cost of the acquired assets is finalized in the period in which the acquisition occurs. We determine the fair value of the tangible assets of an acquired property by valuing the property as if it were vacant. This “as-if vacant” value is estimated using an income, or discounted cash flow, approach that relies upon Level 3 inputs, which are unobservable inputs based on the Company’s assumptions about the assumptions a market participant would use. These Level 3 inputs include discount rates, capitalization rates, market rents and comparable sales data for similar properties. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions. In determining the “as-if-vacant” value for the properties we acquired during the three months ended March 31, 2020 , we used discount rates ranging from 5.75% to 6.50% and exit capitalization rates ranging from 4.75% to 5.50% . In determining the fair value of intangible lease assets or liabilities, we also consider Level 3 inputs. Acquired above- and below-market leases are valued based on the present value of the difference between prevailing market rates and the in-place rates measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed rate renewal options for below-market leases, if applicable. The estimated fair value of acquired in-place at-market tenant leases are the estimated costs that would have been incurred to lease the property to the occupancy level of the property at the date of acquisition. We consider estimated costs such as the value associated with leasing commissions, legal and other costs, as well as the estimated period of time necessary to lease such a property to its occupancy level at the time of its acquisition. In determining the fair value of acquisitions completed during the three months ended March 31, 2020 , we used an estimated average lease-up period of six months . The difference between the fair value and the face value of debt assumed, if any, in connection with an acquisition is recorded as a premium or discount and amortized to “interest expense” over the life of the debt assumed. The valuation of assumed liabilities are based on our estimate of the current market rates for similar liabilities in effect at the acquisition date. In determining the fair value of debt assumed during the three months ended March 31, 2020 , we used estimated market interest rates ranging from 3.21% to 3.75% . Capitalization of Costs We capitalize direct costs incurred in developing, renovating, rehabilitating and improving real estate assets as part of the investment basis. This includes certain general and administrative costs, including payroll, bonus and non-cash equity compensation of the personnel performing development, renovations and rehabilitation if such costs are identifiable to a specific activity to get the real estate asset ready for its intended use. During the development and construction periods of a project, we also capitalize interest, real estate taxes and insurance costs. We cease capitalization of costs upon substantial completion of the project, but no later than one year from cessation of major construction activity. If some portions of a project are substantially complete and ready for use and other portions have not yet reached that stage, we cease capitalizing costs on the completed portion of the project but continue to capitalize for the incomplete portion of the project. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. We capitalized interest costs of $0.9 million and $0.6 million during the three months ended March 31, 2020 and 2019 , respectively. We capitalized real estate taxes and insurance costs aggregating $0.3 million and $0.2 million during the three months ended March 31, 2020 and 2019 , respectively. We capitalized compensation costs for employees who provide construction services of $1.0 million and $0.7 million during the three months ended March 31, 2020 and 2019 , respectively. Depreciation and Amortization Real estate, including land, building and land improvements, tenant improvements, furniture, fixtures and equipment and intangible lease assets and liabilities are stated at historical cost less accumulated depreciation and amortization, unless circumstances indicate that the cost cannot be recovered, in which case, the carrying value of the property is reduced to estimated fair value as discussed below in our policy with regard to impairment of long-lived assets. We estimate the depreciable portion of our real estate assets and related useful lives in order to record depreciation expense. The values allocated to buildings, site improvements, in-place lease intangibles and tenant improvements are depreciated on a straight-line basis using an estimated remaining life of 10 - 30 years for buildings, 5 - 20 years for site improvements, and the shorter of the estimated useful life or respective lease term for in-place lease intangibles and tenant improvements. As discussed above in— Investments in Real Estate—Acquisitions , in connection with property acquisitions, we may acquire leases with rental rates above or below the market rental rates. Such differences are recorded as an acquired lease intangible asset or liability and amortized to “rental income” over the remaining term of the related leases. Our estimate of the useful life of our assets is evaluated upon acquisition and when circumstances indicate that a change in the useful life has occurred, which requires significant judgment regarding the economic obsolescence of tangible and intangible assets. Assets Held for Sale We classify a property as held for sale when all of the criteria set forth in the Accounting Standards Codification (“ASC”) Topic 360: Property, Plant and Equipment (“ASC 360”) have been met. The criteria are as follows: (i) management, having the authority to approve the action, commits to a plan to sell the property; (ii) the property is available for immediate sale in its present condition, subject only to terms that are usual and customary; (iii) an active program to locate a buyer and other actions required to complete the plan to sell have been initiated; (iv) the sale of the property is probable and is expected to be completed within one year; (v) the property is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (vi) actions necessary to complete the plan of sale indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. At the time we classify a property as held for sale, we cease recording depreciation and amortization. A property classified as held for sale is measured and reported at the lower of its carrying amount or its estimated fair value less cost to sell. As of March 31, 2020 and December 31, 2019, we did not have any properties classified as held for sale. Impairment of Long-Lived Assets In accordance with the provisions of the Impairment or Disposal of Long-Lived Assets Subsections of ASC 360 , we assess the carrying values of our respective long-lived assets, including goodwill, whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. Recoverability of real estate assets is measured by comparison of the carrying amount of the asset to the estimated future undiscounted cash flows. To review real estate assets for recoverability, we consider current market conditions as well as our intent with respect to holding or disposing of the asset. The intent with regards to the underlying assets might change as market conditions and other factors change. Fair value is determined through various valuation techniques; including discounted cash flow models, applying a capitalization rate to estimated net operating income of a property, quoted market values and third-party appraisals, where considered necessary. The use of projected future cash flows is based on assumptions that are consistent with estimates of future expectations and the strategic plan used to manage our underlying business. If our analysis indicates that the carrying value of the real estate asset is not recoverable on an undiscounted cash flow basis, we will recognize an impairment charge for the amount by which the carrying value exceeds the current estimated fair value of the real estate property. Assumptions and estimates used in the recoverability analyses for future cash flows, discount rates and capitalization rates are complex and subjective. Changes in economic and operating conditions or our intent with respect to our investment that occur subsequent to our impairment analyses could impact these assumptions and result in future impairment of our real estate properties. There were no impairment charges recorded to the carrying value of our properties during the three months ended March 31, 2020 and 2019 , respectively. Income Taxes We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”) commencing with our initial taxable year ended December 31, 2013. To qualify as a REIT, we are required (among other things) to distribute at least 90% of our REIT taxable income to our stockholders and meet the various other requirements imposed by the Code relating to matters such as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided we qualify for taxation as a REIT, we are generally not subject to corporate-level income tax on the earnings distributed currently to our stockholders. If we fail to qualify as a REIT in any taxable year, and were unable to avail ourselves of certain savings provisions set forth in the Code, all of our taxable income would be subject to federal income tax at regular corporate rates, including any applicable alternative minimum tax. In addition, we are subject to taxation by various state and local jurisdictions, including those in which we transact business or reside. Our non-taxable REIT subsidiaries, including our Operating Partnership, are either partnerships or disregarded entities for federal income tax purposes. Under applicable federal and state income tax rules, the allocated share of net income or loss from disregarded entities and flow-through entities such as partnerships is reportable in the income tax returns of the respective equity holders. Accordingly, no income tax provision is included in the accompanying consolidated financial statements for the three months ended March 31, 2020 and 2019 . We periodically evaluate our tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of March 31, 2020 and December 31, 2019 , we have not established a liability for uncertain tax positions. Derivative Instruments and Hedging Activities ASC Topic 815: Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. As required by ASC 815, we record all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, and whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. We may enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply or we elect not to apply hedge accounting. See Note 7. Revenue Recognition Our primary sources of revenue are rental income, management, leasing and development services and gains on sale of real estate. Rental Income We lease industrial space to tenants primarily under non-cancelable operating leases that generally contain provisions for minimum base rents plus reimbursement for certain operating expenses. Total minimum annual lease payments are recognized in rental income on a straight-line basis over the term of the related lease, regardless of when payments are contractually due. Rental revenue recognition commences when the tenant takes possession or controls the physical use of the leased space. Lease termination fees, which are included in rental income, are recognized when the related leases are canceled and we have no continuing obligation to provide services to such former tenants. Our lease agreements with tenants generally contain provisions that require tenants to reimburse us for certain property expenses. Estimated reimbursements from tenants for these property expenses, which include real estate taxes, insurance, common area maintenance and other recoverable operating expenses, are recognized as revenues in the period that the expenses are incurred. Subsequent to year-end, we perform final reconciliations on a lease-by-lease basis and bill or credit each tenant for any cumulative annual adjustments. As the timing and pattern of revenue recognition is the same, rents and tenant reimbursements are treated as a combined lease component and presented as a single line item “Rental income” in our consolidated statements of operations. We record revenues and expenses on a gross basis for lessor costs (which include real estate taxes) when these costs are reimbursed to us by our tenants. Conversely, we record revenues and expenses on a net basis for lessor costs when they are paid by our tenants directly to the taxing authorities on our behalf. Management, leasing and development services We provide property management services and leasing services to related party and third-party property owners, the customer, in exchange for fees and commissions. Property management services include performing property inspections, monitoring repairs and maintenance, negotiating vendor contracts, maintaining tenant relations and providing financial and accounting oversight. For these services, we earn monthly management fees, which are based on a fixed percentage of each managed property’s monthly tenant cash receipts. We have determined that control over the services is passed to the customer simultaneously as performance occurs. Accordingly, management fee revenue is earned as the services are provided to our customers. Leasing commissions are earned when we provide leasing services that result in an executed lease with a tenant. We have determined that control over the services is transferred to the customer upon execution of each lease agreement. We earn leasing commissions based on a fixed percentage of rental income generated for each executed lease agreement and there is no variable income component. Gain or Loss on Sale of Real Estate We account for dispositions of real estate properties, which are considered nonfinancial assets, in accordance with ASC 610-20: Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets and recognize a gain or loss on sale of real estate upon transferring control of the nonfinancial asset to the purchaser, which is generally satisfied at the time of sale. If we were to conduct a partial sale of real estate by transferring a controlling interest in a nonfinancial asset, while retaining a noncontrolling ownership interest, we would measure any noncontrolling interest received or retained at fair value, and recognize a full gain or loss. If we receive consideration before transferring control of a nonfinancial asset, we recognize a contract liability. If we transfer control of the asset before consideration is received, we recognize a contract asset. Valuation of Receivables We may be subject to tenant defaults and bankruptcies that could affect the collection of outstanding receivables related to our operating leases. In order to mitigate these risks, we perform credit reviews and analyses on prospective tenants before significant leases are executed and on existing tenants before properties are acquired. On a quarterly basis, we perform an assessment of the collectability of operating lease receivables on a tenant-by-tenant basis, which includes reviewing the age and nature of our receivables, the payment history and financial condition of the tenant, our assessment of the tenant’s ability to meet its lease obligations and the status of negotiations of any disputes with the tenant. Any changes in the collectability assessment for an operating lease is recognized as an adjustment, which can be a reduction or increase, to rental income in the consolidated statements of operations. As a result of our quarterly collectability assessments, we recognized $0.4 million and $0.1 million , for the three months ended March 31, 2020 and 2019 , respectively, as a reduction of rental income in the consolidated statements of operations. Deferred Leasing Costs We capitalize the incremental direct costs of originating a lease that would not have been incurred had the lease not been executed. As a result, deferred leasing costs will generally only include third-party broker commissions. Debt Issuance Costs Debt issuance costs related to a recognized debt liability are presented in the balance sheet as a reduction from the carrying value of the debt liability. This offset against the debt liability is treated similarly to a debt discount, which effectively reduces the proceeds of a borrowing. For line of credit arrangements, we present debt issuance costs as an asset and amortize the cost over the term of the line of credit arrangement. See Note 5. Equity Based Compensation We account for equity-based compensation in accordance with ASC Topic 718: Compensation - Stock Compensation. Total compensation cost for all share-based awards is based on the estimated fair market value on the grant date. For share-based awards that vest based solely on a service condition, we recognize compensation cost on a straight-line basis over the total requisite service period for the entire award. For share-based awards that vest based on a market condition, we recognize compensation cost on a straight-line basis over the requisite service period of each separately vesting tranche. For share-based awards that vest based on a performance condition, we recognize compensation cost based on the number of awards that are expected to vest based on the probable outcome of the performance condition. Compensation cost for these awards will be adjusted to reflect the number of awards that ultimately vest. Forfeitures are recognized in the period in which they occur. See Note 11. Equity Offering Costs Underwriting commissions and offering costs related to our common stock issuances have been reflected as a reduction of additional paid-in capital. Underwriting commissions and offering costs related to our preferred stock issuances have been reflected as a direct reduction of the preferred stock balance. Earnings Per Share We calculate earnings per share (“EPS”) in accordance with ASC 260 - Earnings Per Share (“ASC 260”). Under ASC 260, nonvested share-based payment awards that contain non-forfeitable rights to dividends are participating securities and, therefore, are included in the computation of basic EPS pursuant to the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends declared (or accumulated) and their respective participation rights in undistributed earnings. Basic EPS is calculated by dividing the net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period. Diluted EPS is calculated by dividing the net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding determined for the basic EPS computation plus the effect of any dilutive securities. We include unvested shares of restricted stock and unvested LTIP units in the computation of diluted EPS by using the more dilutive of the two-class method or treasury stock method. We include unvested performance units as contingently issuable shares in the computation of diluted EPS once the market criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted EPS calculation. See Note 12. Segment Reporting Management views the Company as a single reportable segment based on its method of internal reporting in addition to its allocation of capital and resources. ASC 842 - Cumulative-Effect Adjustment to Retained Earning On January 1, 2019, we adopted the new lease accounting standard, ASU 2016-02, Leases (Topic 842), and the various lease-related ASUs that were subsequently issued by the Financial Accounting Standards Board (“FASB”) (collectively referred to as “ASC 842”), which together set out the principals for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. We adopted ASC 842 using the modified retrospective approach and applied the provisions as of the date of adoption on a prospective basis. Upon adoption of ASC 842, we recognized a cumulative-effect adjustment to retained earnings of $0.2 million to write off internal compensation costs that were capitalized in connection with leases that were executed but had not commenced prior to January 1, 2019, as these costs were capitalized in accordance with prior lease accounting guidance and did not qualify for capitalization under ASC 842. Leases as a Lessee We determine if an arrangement is a lease at inception. Operating lease right-of-use assets (“ROU assets”) are included in “Other assets” and lease liabilities are included in “Accounts payable, accrued expenses and other liabilities” in our consolidated balance sheets. ROU assets represent our right to use, or control the use of, a specified asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Because our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Additionally, for our operating leases, we do not separate non-lease components, such as common area maintenance, from associated lease components. See Note 6. Adoption of New Accounting Pronouncements Allowance for Credit Losses On June 16, 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which amends the accounting for credit losses for certain financial instruments. ASU 2016-13 introduced the “current expected credit losses” (CECL) model, which requires companies to estimate credit losses immediately upon exposure. The guidance applies to financial assets measured at amortized cost including net investments in leases arising from sales-type and direct financing leases, financing receivables (loans) and trade receivables. On November 26, 2018, the FASB issued ASU 2018-19, C odification Improvements to Topic 326, Financial Instrument - Credit Losses, which clarifies that operating lease receivables are outside the scope of ASC Topic 326 and instead should be accounted for under ASC 842. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. Effective January 1, 2020 we adopted ASU 2016-13. As we did not have any financial assets within the scope of ASU 2016-13, there was no impact to our consolidated financial statements. In the event that any of our leases were to be classified as sales-type or direct finance leases, or if we were to acquire or provide mortgage debt secured by industrial properties in the future, we would become subject to the provisions of ASU 2016-13. Recently Issued Accounting Pronouncements Changes to GAAP are established by the FASB in the form of ASUs to the FASB’s Accounting Standards Codification. We consider the applicability and impact of all ASUs. Other than the ASUs discussed below, the FASB has not recently issued any other ASUs that we expect to be applicable and have a material impact on our consolidated financial statements. Reference Rate Reform |
Investments in Real Estate
Investments in Real Estate | 3 Months Ended |
Mar. 31, 2020 | |
Investments, All Other Investments [Abstract] | |
Investments in Real Estate | Investments in Real Estate Acquisitions On March 5, 2020, we acquired from a group of sellers that were not affiliated with the Company ten industrial properties located in Southern California (the “Properties”) for an aggregate purchase price of $203.2 million , exclusive of closing costs, including assumed debt of approximately $44.7 million . In consideration for the Properties we (i) paid $56.2 million in cash, including a $9.7 million deposit paid in 2019, (ii) issued 1,406,170 common units of limited partnership interests in the Operating Partnership and (iii) issued 906,374 4.00% Cumulative Redeemable Convertible Preferred Units of partnership interest in the Operating Partnership (the “Series 2 CPOP Units”). See Note 5 and Note 11 for further details regarding the assumption of debt and Series 2 CPOP Units, respectively. The following table summarizes the wholly-owned industrial properties we acquired during the three months ended March 31, 2020 : Property Submarket Date of Acquisition Rentable Square Feet Number of Buildings Contractual Purchase Price (1) (in thousands) 701-751 Kingshill Place Los Angeles - South Bay 3/5/2020 169,069 6 $ 32,968 2601-2641 Manhattan Beach Boulevard Los Angeles - South Bay 3/5/2020 126,726 6 38,230 2410-2420 Santa Fe Avenue Los Angeles - South Bay 3/5/2020 112,000 1 34,700 11600 Los Nietos Road Los Angeles - Mid-Counties 3/5/2020 103,982 1 16,608 5160 Richton Street San Bernardino - Inland Empire West 3/5/2020 94,976 1 15,605 2205 126th Street Los Angeles - South Bay 3/5/2020 63,532 1 17,100 11832-11954 La Cienega Boulevard Los Angeles - South Bay 3/5/2020 63,462 4 19,150 7612-7642 Woodwind Drive Orange County - West 3/5/2020 62,377 3 13,719 960-970 Knox Street Los Angeles - South Bay 3/5/2020 39,400 1 9,600 25781 Atlantic Ocean Drive Orange County - South 3/5/2020 27,960 1 5,475 Total 2020 Wholly-Owned Property Acquisitions 863,484 25 $ 203,155 (1) Represents the gross contractual purchase price before prorations, closing costs and other acquisition related costs. The following table summarizes the fair value of amounts allocated to each major class of asset and liability for the acquisitions noted in the table above, as of the date of each acquisition (in thousands): 2020 Acquisitions Assets: Land $ 141,363 Buildings and improvements 61,853 Tenant improvements 1,529 Acquired lease intangible assets (1) 9,196 Other acquired assets (2) 281 Total assets acquired 214,222 Liabilities: Acquired lease intangible liabilities (3) 7,303 Notes payable (4) 45,833 Other assumed liabilities (2) 861 Total liabilities assumed 53,997 Net assets acquired $ 160,225 (1) Acquired lease intangible assets is comprised of $9.1 million of in-place lease intangibles with a weighted average amortization period of 4.6 years and $0.1 million of above-market lease intangibles with a weighted average amortization period of 4.7 years. (2) Includes other working capital assets acquired and liabilities assumed at the time of acquisition. (3) Represents below-market lease intangibles with a weighted average amortization period of 5.9 years. (4) In connection with acquisition of the Properties, we assumed nine mortgage loans from the sellers. At the date of acquisition, the loans had an aggregate fair value of $45.8 million and an aggregate principal balance of $44.7 million |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The following table summarizes our acquired lease intangible assets, including the value of in-place leases and above-market tenant leases, and our acquired lease intangible liabilities which includes below-market tenant leases (in thousands): March 31, 2020 December 31, 2019 Acquired Lease Intangible Assets: In-place lease intangibles $ 163,381 $ 154,370 Accumulated amortization (93,653 ) (87,955 ) In-place lease intangibles, net $ 69,728 $ 66,415 Above-market tenant leases $ 14,358 $ 14,296 Accumulated amortization (7,948 ) (7,621 ) Above-market tenant leases, net $ 6,410 $ 6,675 Acquired lease intangible assets, net $ 76,138 $ 73,090 Acquired Lease Intangible Liabilities: Below-market tenant leases $ (89,000 ) $ (81,718 ) Accumulated accretion 25,086 22,378 Below-market tenant leases, net $ (63,914 ) $ (59,340 ) Acquired lease intangible liabilities, net $ (63,914 ) $ (59,340 ) The following table summarizes the amortization related to our acquired lease intangible assets and liabilities for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 In-place lease intangibles (1) $ 5,822 $ 4,339 Net below-market tenant leases (2) $ (2,402 ) $ (1,751 ) (1) The amortization of in-place lease intangibles is recorded to depreciation and amortization expense in the consolidated statements of operations for the periods presented. (2) The amortization of net below-market tenant leases is recorded as an increase to rental income in the consolidated statements of operations for the periods presented. |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Notes Payable | Notes Payable The following table summarizes the components and significant terms of our indebtedness as of March 31, 2020 and December 31, 2019 (dollars in thousands): March 31, 2020 December 31, 2019 Margin Above LIBOR Interest Rate (1) Contractual Maturity Date Unsecured and Secured Debt Unsecured Debt: Revolving Credit Facility $ — $ — 1.050 % (2) 2.043 % (3) 2/13/2024 (4) $100M Term Loan Facility 100,000 100,000 1.200 % (2) 2.964 % (5) 2/14/2022 $225M Term Loan Facility 225,000 225,000 1.200 % (2) 2.574 % (5) 1/14/2023 $150M Term Loan Facility 150,000 150,000 1.500 % (2) 4.263 % (5) 5/22/2025 $100M Notes 100,000 100,000 n/a 4.290 % 8/6/2025 $125M Notes 125,000 125,000 n/a 3.930 % 7/13/2027 $25M Series 2019A Notes 25,000 25,000 n/a 3.880 % 7/16/2029 $75M Series 2019B Notes 75,000 75,000 n/a 4.030 % 7/16/2034 Total Unsecured Debt $ 800,000 $ 800,000 Secured Debt: $60M Term Loan (6) $ 58,499 $ 58,499 1.700 % 2.693 % 8/1/2023 (6) Gilbert/La Palma (7) 2,419 2,459 n/a 5.125 % 3/1/2031 701-751 Kingshill Place (8) 7,100 — n/a 3.900 % 1/5/2026 2601-2641 Manhattan Beach Boulevard (7) 4,147 — n/a 4.080 % 4/5/2023 2410-2420 Santa Fe Avenue (7) 10,300 — n/a 3.700 % 1/1/2028 11600 Los Nietos Road (7) 2,899 — n/a 4.190 % 5/1/2024 5160 Richton Street (7) 4,471 — n/a 3.790 % 11/15/2024 2205 126th Street (9) 5,200 — n/a 3.910 % 12/1/2027 11832-11954 La Cienega Boulevard (8) 4,100 — n/a 4.260 % 7/1/2028 7612-7642 Woodwind Drive (7) 3,959 — n/a 5.240 % 1/5/2024 960-970 Knox Street (7)(10) 2,551 — n/a 5.000 % 11/1/2023 Total Secured Debt $ 105,645 $ 60,958 Total Unsecured and Secured Debt $ 905,645 $ 860,958 Less: Unamortized premium/discount and debt issuance costs (11) (1,843 ) (3,116 ) Total $ 903,802 $ 857,842 (1) Reflects the contractual interest rate under the terms of each loan as of March 31, 2020 and includes the effect of interest rate swaps that were effective as of March 31, 2020 . See footnote (5) below. Excludes the effect of unamortized debt issuance costs and unamortized fair market value premiums and discounts. (2) The interest rates on these loans are comprised of LIBOR plus a LIBOR margin. The LIBOR margins will range from 1.05% to 1.50% per annum for the unsecured revolving credit facility, 1.20% to 1.70% per annum for the $100.0 million term loan facility, 1.20% to 1.70% per annum for the $225.0 million term loan facility and 1.50% to 2.20% per annum for the $150 million term loan facility, depending on our leverage ratio, which is the ratio of our outstanding consolidated indebtedness to the value of our consolidated gross asset value, which is measured on a quarterly basis. (3) The unsecured revolving credit facility is subject to an applicable facility fee which is calculated as a percentage of the total lenders’ commitment amount, regardless of usage. The applicable facility fee will range from 0.15% to 0.30% per annum depending upon our leverage ratio. (4) Two additional six -month extensions are available at the borrower’s option, subject to certain terms and conditions. (5) As of March 31, 2020 , interest on the $100.0 million term loan facility, $225.0 million term loan facility and $150 million term loan facility have been effectively fixed through the use of interest rate swaps. See Note 7 for details. (6) Loan is secured by six properties. One 24 -month extension is available at the borrower’s option, subject to certain terms and conditions. Monthly payments of interest only through June 2021, followed by equal monthly payments of principal ( $65,250 ), plus accrued interest until maturity. (7) Fixed monthly payments of interest and principal until maturity as follows: Gilbert/La Palma ( $24,008 ), 2601-2641 Manhattan Beach Boulevard ( $23,138 ), 2410-2420 Santa Fe Avenue ( $31,758 ), 11600 Los Nietos ( $22,637 ), 5160 Richton Street ( $23,270 ), 7612-7642 Woodwind Drive ( $24,270 ) and 960-970 Knox Street ( $17,538 ). (8) For 701-751 Kingshill Place, fixed monthly payments of interest only through January 2023, followed by fixed monthly payments of interest and principal ( $33,488 ) until maturity. For 11832-11954 La Cienega Boulevard, fixed monthly payments of interest only through July 2020, followed by fixed monthly payments of interest and principal ( $20,194 ) until maturity. (9) Fixed monthly payments of interest only. (10) Loan also requires monthly escrow reserve payments for real estate taxes related to the property located at 960-970 Knox Street. (11) Excludes unamortized debt issuance costs related to our unsecured revolving credit facility, which are presented in the line item “Deferred loan costs, net” in the consolidated balance sheets. Contractual Debt Maturities The following table summarizes the contractual debt maturities and scheduled amortization payments, excluding debt discounts and debt issuance costs, as of March 31, 2020 , and does not consider extension options available to us as noted in the table above (in thousands): April 1, 2020 - December 31, 2020 $ 560 2021 1,200 2022 101,630 2023 289,245 2024 10,348 Thereafter 502,662 Total $ 905,645 Assumption of Mortgage Loans On March 5, 2020, in connection with the acquisition of the Properties, we assumed nine mortgage loans secured by nine of the Properties we acquired. At the date of acquisition, the assumed loans had an aggregate principal balance of $44.7 million and an aggregate fair value of $45.8 million resulting in an aggregate initial net debt premium of $1.1 million . The mortgage loans bear interest at fixed interest rates ranging from 3.70% to 5.24% and have maturities ranging from 3.0 years to 8.3 years from the date assumed. Third Amended and Restated Credit Facility On February 13, 2020 , we amended our $450 million credit agreement, that was scheduled to mature on February 14, 2021, by entering into a Third Amended and Restated Credit Agreement (the “Amended Credit Agreement”), which provides for a $600.0 million senior unsecured credit facility, comprised of a $500.0 million unsecured revolving credit facility (the "Amended Revolver") and a $100.0 million unsecured term loan facility (the "Amended Term Loan Facility"). The Amended Revolver is scheduled to mature on February 13, 2024 , and has two six-month extension options available, and the Amended Term Loan Facility is scheduled to mature on February 14, 2022 . Subject to certain terms and conditions set forth in the Amended Credit Agreement, we may request additional lender commitments up to an additional aggregate $900.0 million , which may be comprised of additional revolving commitments under the Amended Revolver, an increase to the Amended Term Loan Facility, additional term loan tranches or any combination of the foregoing. Interest on the Amended Credit Agreement is generally to be paid based upon, at our option, either (i) LIBOR plus an applicable margin that is based upon our leverage ratio or (ii) the Base Rate (which is defined as the highest of (a) the federal funds rate plus 0.50% , (b) the administrative agent’s prime rate or (c) the Eurodollar Rate plus 1.00% ) plus an applicable margin that is based on our leverage ratio. The margins for the Amended Revolver range in amount from 1.05% to 1.50% per annum for LIBOR-based loans and 0.05% to 0.50% per annum for Base Rate-based loans, depending on our leverage ratio. The margins for the Amended Term Loan Facility range in amount from 1.20% to 1.70% per annum for LIBOR-based loans and 0.20% to 0.70% for Base Rate-based loans, depending on our leverage ratio. If we attain one additional investment grade rating by one or more of S&P or Moody’s to complement our current investment grade Fitch rating, we may elect to convert the pricing structure under the Amended Credit Agreement to be based on such rating. In that event, the margins for the Amended Revolver will range in amount from 0.725% to 1.40% for LIBOR-based loans and 0.00% to 0.45% for Base Rate-based loans, depending on such rating. The margins for the Amended Term Loan Facility will range in amount from 0.85% to 1.65% per annum for LIBOR-based loans and 0.00% to 0.65% per annum for Base Rate-based loans, depending on such rating. In addition to the interest payable on amounts outstanding under the Amended Revolver, we are required to pay an applicable facility fee, based upon our leverage ratio, on each lender's commitment amount under the Amended Revolver, regardless of usage. The applicable facility fee will range in amount from 0.15% to 0.30% per annum, depending on our leverage ratio. In the event that we convert the pricing structure to be based on an investment-grade rating, the applicable facility fee will range in amount from 0.125% to 0.30% per annum, depending on such rating. The Amended Credit Agreement is guaranteed by the Company and by substantially all of the current and to-be-formed subsidiaries of the Operating Partnership that own an unencumbered property. The Amended Credit Agreement is not secured by the Company’s properties or by equity interests in the subsidiaries that hold such properties. The Amended Revolver and the Amended Term Loan Facility may be voluntarily prepaid in whole or in part at any time without premium or penalty. Amounts borrowed under the Amended Term Loan Facility and repaid or prepaid may not be reborrowed. The Amended Credit Agreement contains usual and customary events of default including defaults in the payment of principal, interest or fees, defaults in compliance with the covenants set forth in the Amended Credit Agreement and other loan documentation, cross-defaults to certain other indebtedness, and bankruptcy and other insolvency defaults. If an event of default occurs and is continuing under the Amended Credit Agreement, the unpaid principal amount of all outstanding loans, together with all accrued unpaid interest and other amounts owing in respect thereof, may be declared immediately due and payable. On March 31, 2020 , we did not have any borrowings outstanding under the Amended Revolver, leaving $500.0 million available for future borrowings. Debt Covenants The Amended Credit Agreement, our $225 million unsecured term loan facility (the “$225 Million Term Loan Facility”), our $150 million unsecured term loan facility (the “$150 Million Term Loan Facility”), our $100 million unsecured guaranteed senior notes (the “$100 Million Notes”), our $125 million unsecured guaranteed senior notes (the “$125 Million Notes”) and our $25 million unsecured guaranteed senior notes and $75 million unsecured guaranteed senior notes (together the “Series 2019A and 2019B Notes”) all include a series of financial and other covenants that we must comply with, including the following covenants which are tested on a quarterly basis: • Maintaining a ratio of total indebtedness to total asset value of not more than 60% ; • For the Amended Credit Agreement, $225 Million Term Loan Facility and $150 Million Term Loan Facility, maintaining a ratio of secured debt to total asset value of not more than 45% ; • For the $100 Million Notes, $125 Million Notes and Series 2019A and 2019B Notes (together the “Senior Notes”), maintaining a ratio of secured debt to total asset value of not more than 40% ; • For the Senior Notes, maintaining a ratio of total secured recourse debt to total asset value of not more than 15% ; • For the Amended Credit Agreement, $225 Million Term Loan Facility and $150 Million Term Loan Facility, maintaining a minimum tangible net worth of at least the sum of (i) $2,061,865,500 , and (ii) an amount equal to at least 75% of the net equity proceeds received by the Company after September 30, 2019; • For the Senior Notes, maintaining a minimum tangible net worth of at least the sum of (i) $760,740,750 , and (ii) an amount equal to at least 75% of the net equity proceeds received by the Company after September 30, 2016; • Maintaining a ratio of adjusted EBITDA (as defined in each of the loan agreements) to fixed charges of at least 1.5 to 1.0 ; • Maintaining a ratio of total unsecured debt to total unencumbered asset value of not more than 60% ; and • Maintaining a ratio of unencumbered NOI (as defined in each of the loan agreements) to unsecured interest expense of at least 1.75 to 1.00 . The Amended Credit Agreement, $225 Million Term Loan Facility, $150 Million Term Loan Facility and Senior Notes also provide that our distributions may not exceed the greater of (i) 95.0% of our funds from operations or (ii) the amount required for us to qualify and maintain our status as a REIT and avoid the payment of federal or state income or excise tax in any 12 -month period. Additionally, subject to the terms of the Senior Notes, upon certain events of default, including, but not limited to, (i) a default in the payment of any principal, make-whole payment amount, or interest under the Senior Notes, (ii) a default in the payment of certain of our other indebtedness, (iii) a default in compliance with the covenants set forth in the Senior Notes agreement, and (iv) bankruptcy and other insolvency defaults, the principal and accrued and unpaid interest and the make-whole payment amount on the outstanding Senior Notes will become due and payable at the option of the purchasers. In addition, we are required to maintain at all times a credit rating on the Senior Notes from either S&P, Moody’s or Fitch. In November 2019, Fitch affirmed the BBB investment grade rating of the Senior Notes with a stable outlook. Our $60 million term loan contains a financial covenant that is tested on a quarterly basis, which requires us to maintain a minimum Debt Service Coverage Ratio (as defined in the term loan agreement) of at least 1.10 to 1.0 . We were in compliance with all of our required quarterly debt covenants as of March 31, 2020 . |
Operating Leases
Operating Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lessor Operating Leases | Operating Leases Lessor We lease industrial space to tenants primarily under non-cancelable operating leases that generally contain provisions for minimum base rents plus reimbursement for certain operating expenses. Total minimum lease payments are recognized in rental income on a straight-line basis over the term of the related lease and estimated reimbursements from tenants for real estate taxes, insurance, common area maintenance and other recoverable operating expenses are recognized in rental income in the period that the expenses are incurred. We recognized $75.1 million of rental income related to operating lease payments of which $62.9 million are for fixed lease payments and $12.2 million are for variable lease payments for the three months ended March 31, 2020 , respectively. For the comparable three month-period ended March 31, 2019 , we recognized $57.9 million of rental income related to operating lease payments of which $48.5 million was for fixed lease payments and $9.3 million was for variable lease payments. The following table sets forth the undiscounted cash flows for future minimum base rents to be received under operating leases as of March 31, 2020 (in thousands): Twelve Months Ended March 31, 2021 $ 247,146 2022 212,374 2023 172,010 2024 132,910 2025 93,438 Thereafter 298,695 Total $ 1,156,573 The future minimum base rents in the table above excludes tenant reimbursements of operating expenses, amortization of adjustments for deferred rent receivables and the amortization of above/below-market lease intangibles. Lessee We lease office space as part of conducting our day-to-day business. As of March 31, 2020 , our office space leases have remaining lease terms ranging from approximately 1 month to 5 years and some include options to renew. These renewal terms can extend the lease term from 3 to 5 years and are included in the lease term when it is reasonably certain that we will exercise the option. As of March 31, 2020 , total ROU assets and lease liabilities were approximately $4.3 million and $5.0 million , respectively. As of December 31, 2019 , total ROU assets and lease liabilities were approximately $3.5 million and $3.8 million , respectively. All operating lease expense is recognized on a straight-line basis over the lease term. The tables below present financial information associated with our leases for the three months ended March 31, 2020 and 2019, and as of March 31, 2020 and December 31, 2019 . Three Months Ended March 31, Lease Cost (in thousands) 2020 2019 Operating lease cost (1) $ 305 $ 260 Variable lease cost (1) 12 13 Sublease income (2) — (79 ) Total lease cost $ 317 $ 194 (1) Amounts are included in “General and administrative” and “Property expenses” in the accompanying consolidated statements of operations. (2) Amount is included in “Rental income” in the accompanying consolidated statements of operations. Three Months Ended March 31, Other Information (in thousands) 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 180 $ 239 Right-of-use assets obtained in exchange for new operating lease liabilities (1) $ 1,014 $ 6,720 (1) For the three months ended March 31, 2019 , the reported amount includes $3.3 million for operating leases existing on January 1, 2019, the date we adopted ASC 842. Lease Term and Discount Rate March 31, 2020 December 31, 2019 Weighted-average remaining lease term 4.6 years 4.7 years Weighted-average discount rate (1) 3.68 % 3.92 % (1) Because the rate implicit in each of our leases was not readily determinable, we used our incremental borrowing rate. In determining our incremental borrowing rate for each lease, we considered recent rates on secured borrowings, observable risk-free interest rates and credit spreads correlating to our creditworthiness, the impact of collateralization and the term of each of our lease agreements. Maturities of lease liabilities as of March 31, 2020 were as follows (in thousands): April 1, 2020 - December 31, 2020 $ 872 2021 1,091 2022 1,093 2023 1,131 2024 1,161 Thereafter 97 Total undiscounted lease payments $ 5,445 Less imputed interest (468 ) Total lease liabilities $ 4,977 We have one operating lease for office space of $1.9 million which has not commenced as March 31, 2020 , and as such, has not been recognized on our consolidated balance sheets. This operating lease is expected to commence in 2020 and has a 5 -year lease term. |
Lessee Operating Leases | Operating Leases Lessor We lease industrial space to tenants primarily under non-cancelable operating leases that generally contain provisions for minimum base rents plus reimbursement for certain operating expenses. Total minimum lease payments are recognized in rental income on a straight-line basis over the term of the related lease and estimated reimbursements from tenants for real estate taxes, insurance, common area maintenance and other recoverable operating expenses are recognized in rental income in the period that the expenses are incurred. We recognized $75.1 million of rental income related to operating lease payments of which $62.9 million are for fixed lease payments and $12.2 million are for variable lease payments for the three months ended March 31, 2020 , respectively. For the comparable three month-period ended March 31, 2019 , we recognized $57.9 million of rental income related to operating lease payments of which $48.5 million was for fixed lease payments and $9.3 million was for variable lease payments. The following table sets forth the undiscounted cash flows for future minimum base rents to be received under operating leases as of March 31, 2020 (in thousands): Twelve Months Ended March 31, 2021 $ 247,146 2022 212,374 2023 172,010 2024 132,910 2025 93,438 Thereafter 298,695 Total $ 1,156,573 The future minimum base rents in the table above excludes tenant reimbursements of operating expenses, amortization of adjustments for deferred rent receivables and the amortization of above/below-market lease intangibles. Lessee We lease office space as part of conducting our day-to-day business. As of March 31, 2020 , our office space leases have remaining lease terms ranging from approximately 1 month to 5 years and some include options to renew. These renewal terms can extend the lease term from 3 to 5 years and are included in the lease term when it is reasonably certain that we will exercise the option. As of March 31, 2020 , total ROU assets and lease liabilities were approximately $4.3 million and $5.0 million , respectively. As of December 31, 2019 , total ROU assets and lease liabilities were approximately $3.5 million and $3.8 million , respectively. All operating lease expense is recognized on a straight-line basis over the lease term. The tables below present financial information associated with our leases for the three months ended March 31, 2020 and 2019, and as of March 31, 2020 and December 31, 2019 . Three Months Ended March 31, Lease Cost (in thousands) 2020 2019 Operating lease cost (1) $ 305 $ 260 Variable lease cost (1) 12 13 Sublease income (2) — (79 ) Total lease cost $ 317 $ 194 (1) Amounts are included in “General and administrative” and “Property expenses” in the accompanying consolidated statements of operations. (2) Amount is included in “Rental income” in the accompanying consolidated statements of operations. Three Months Ended March 31, Other Information (in thousands) 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 180 $ 239 Right-of-use assets obtained in exchange for new operating lease liabilities (1) $ 1,014 $ 6,720 (1) For the three months ended March 31, 2019 , the reported amount includes $3.3 million for operating leases existing on January 1, 2019, the date we adopted ASC 842. Lease Term and Discount Rate March 31, 2020 December 31, 2019 Weighted-average remaining lease term 4.6 years 4.7 years Weighted-average discount rate (1) 3.68 % 3.92 % (1) Because the rate implicit in each of our leases was not readily determinable, we used our incremental borrowing rate. In determining our incremental borrowing rate for each lease, we considered recent rates on secured borrowings, observable risk-free interest rates and credit spreads correlating to our creditworthiness, the impact of collateralization and the term of each of our lease agreements. Maturities of lease liabilities as of March 31, 2020 were as follows (in thousands): April 1, 2020 - December 31, 2020 $ 872 2021 1,091 2022 1,093 2023 1,131 2024 1,161 Thereafter 97 Total undiscounted lease payments $ 5,445 Less imputed interest (468 ) Total lease liabilities $ 4,977 We have one operating lease for office space of $1.9 million which has not commenced as March 31, 2020 , and as such, has not been recognized on our consolidated balance sheets. This operating lease is expected to commence in 2020 and has a 5 -year lease term. |
Interest Rate Swaps
Interest Rate Swaps | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest Rate Swaps | Interest Rate Swaps Risk Management Objective of Using Derivatives We are exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources and duration of our debt funding and through the use of derivative financial instruments. Specifically, we enter into derivative financial instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Our derivative financial instruments are used to manage differences in the amount, timing and duration of our known or expected cash payments principally related to our borrowings. Derivative Instruments Our objectives in using interest rate derivatives are to add stability to interest expense and to manage exposure to interest rate movements. To accomplish this objective, we primarily use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional value. We do not use derivatives for trading or speculative purposes. The change in fair value of derivatives designated and qualifying as cash flow hedges is initially recorded in accumulated other comprehensive income/(loss) (“AOCI”) and is subsequently reclassified from AOCI into earnings in the period that the hedged forecasted transaction affects earnings. The following table sets forth a summary of our interest rate swaps at March 31, 2020 and December 31, 2019 (dollars in thousands): Current Notional Value (1) Fair Value of Interest Rate Derivative Assets /(Derivative Liabilities) (2) Derivative Instrument Effective Date Maturity Date LIBOR Interest Strike Rate March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 Interest Rate Swap 2/14/2018 1/14/2022 1.3490 % $ 125,000 $ 125,000 $ (2,380 ) $ 489 Interest Rate Swap 8/14/2018 1/14/2022 1.4060 % $ 100,000 $ 100,000 $ (2,006 ) $ 277 Interest Rate Swap 12/14/2018 8/14/2021 1.7640 % $ 100,000 $ 100,000 $ (2,024 ) $ (332 ) Interest Rate Swap 7/22/2019 11/22/2024 2.7625 % $ 150,000 $ 150,000 $ (16,280 ) $ (8,156 ) (1) Represents the notional value of swaps that are effective as of the balance sheet date presented. (2) The fair value of derivative assets are included in the line item “Interest rate swap asset” in the accompanying consolidated balance sheets and the fair value of (derivative liabilities) are included in the line item “Interest rate swap liability” in the accompanying consolidated balance sheets. The following table sets forth the impact of our interest rate swaps on our consolidated statements of operations for the periods presented (in thousands): Three Months Ended March 31, 2020 2019 Interest Rate Swaps in Cash Flow Hedging Relationships: Amount of loss recognized in AOCI on derivatives $ (15,398 ) $ (4,275 ) Amount of (loss) gain reclassified from AOCI into earnings under “Interest expense” $ (430 ) $ 852 Total interest expense presented in the Consolidated Statement of Operations in which the effects of cash flow hedges are recorded (line item “Interest expense”) $ 7,449 $ 6,471 During the next twelve months, we estimate that an additional $7.5 million will be reclassified from AOCI into earnings as an increase to interest expense. Credit-risk-related Contingent Features Certain of our agreements with our derivative counterparties contain a provision where if we default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender within a specified time period, then we could also be declared in default on its derivative obligations. Certain of our agreements with our derivative counterparties contain provisions where if a merger or acquisition occurs that materially changes our creditworthiness in an adverse manner, we may be required to fully collateralize our obligations under the derivative instrument. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We have adopted FASB Accounting Standards Codification Topic 820: Fair Value Measurements and Disclosure (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements; accordingly, the standard does not require any new fair value measurements of reported balances. ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Recurring Measurements – Interest Rate Swaps Currently, we use interest rate swap agreements to manage our interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. To comply with the provisions of ASC 820, we incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by ourselves and our counterparties. However, as of March 31, 2020 , we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, we have determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. The table below sets forth the estimated fair value of our interest rate swaps as of March 31, 2020 and December 31, 2019 , which we measure on a recurring basis by level within the fair value hierarchy (in thousands). Fair Value Measurement Using Total Fair Value Quoted Price in Active Markets for Identical Assets and Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2020 Interest Rate Swap Asset $ — $ — $ — $ — Interest Rate Swap Liability $ (22,690 ) $ — $ (22,690 ) $ — December 31, 2019 Interest Rate Swap Asset $ 766 $ — $ 766 $ — Interest Rate Swap Liability $ (8,488 ) $ — $ (8,488 ) $ — Financial Instruments Disclosed at Fair Value The carrying amounts of cash and cash equivalents, rents and other receivables, other assets, accounts payable, accrued expenses and other liabilities, and tenant security deposits approximate fair value because of their short-term nature. The fair value of our notes payable was estimated by calculating the present value of principal and interest payments, using discount rates that best reflect current market rates for financings with similar characteristics and credit quality, and assuming each loan is outstanding through its respective contractual maturity date. The table below sets forth the carrying value and the estimated fair value of our notes payable as of March 31, 2020 and December 31, 2019 (in thousands): Fair Value Measurement Using Liabilities Total Fair Value Quoted Price in Active Markets for Identical Assets and Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Carrying Value Notes Payable at: March 31, 2020 $ 936,817 $ — $ — $ 936,817 $ 903,802 December 31, 2019 $ 882,813 $ — $ — $ 882,813 $ 857,842 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Howard Schwimmer We engage in transactions with Howard Schwimmer, our Co-Chief Executive Officer, earning management fees and leasing commissions from entities controlled individually by Mr. Schwimmer. Fees and commissions earned from these entities are included in “Management, leasing and development services” in the consolidated statements of operations. We recorded $0.1 million and $0.1 million for the three months ended March 31, 2020 and 2019 , respectively, in management, leasing and development services revenue. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal From time to time, we are party to various lawsuits, claims and legal proceedings that arise in the ordinary course of business. We are not currently a party to any legal proceedings that we believe would reasonably be expected to have a material adverse effect on our business, financial condition or results of operations. Environmental We will generally perform environmental site assessments at properties we are considering acquiring. After the acquisition of such properties, we continue to monitor the properties for the presence of hazardous or toxic substances. From time to time, we acquire properties with known adverse environmental conditions. If at the time of acquisition, losses associated with environmental remediation obligations are probable and can be reasonably estimated, we record a liability. On February 25, 2014, we acquired the property located at West 228th Street. Before purchasing the property during the due diligence phase, we engaged a third-party environmental consultant to perform various environmental site assessments to determine the presence of any environmental contaminants that might warrant remediation efforts. Based on their investigation, they determined that hazardous substances existed at the property and that additional assessment and remediation work would likely be required to satisfy regulatory requirements. The total remediation costs were estimated to be $1.3 million , which includes remediation, processing and oversight costs. To address the estimated costs associated with the environmental issues at the West 228t h Street property, we entered into an Environmental Holdback Escrow Agreement (the “Holdback Agreement”) with the former owner, whereby $1.4 million was placed into an escrow account to be used to pay remediation costs. To fund the $1.4 million , the escrow holder withheld $1.3 million of the purchase price, which would have otherwise been paid to the seller at closing, and the Company funded an additional $0.1 million . According to the Holdback Agreement, the seller has no liability or responsibility to pay for remediation costs in excess of $1.3 million . As of March 31, 2020 and December 31, 2019 , we had a $0.6 million and $0.6 million contingent liability recorded in our consolidated balance sheets included in the line item “Accounts payable and accrued expenses,” reflecting the estimated remaining cost to remediate environmental liabilities at West 228t h Street that existed prior to the acquisition date. As of March 31, 2020 and December 31, 2019 , we also had a $0.6 million and $0.6 million corresponding indemnification asset recorded in our consolidated balance sheets included in the line item “Other assets,” reflecting the estimated costs we expect the former owner to cover pursuant to the Holdback Agreement. We expect that the resolution of the environmental matters relating to the above will not have a material impact on our consolidated financial condition, results of operations or cash flows. However, we cannot assure you that we have identified all environmental liabilities at our properties, that all necessary remediation actions have been or will be undertaken at our properties or that we will be indemnified, in full or at all, in the event that such environmental liabilities arise. Furthermore, we cannot assure you that future changes to environmental laws or regulations and their application will not give rise to loss contingencies for future environmental remediation. Tenant and Construction Related Commitments As of March 31, 2020 , we had commitments of approximately $38.9 million for tenant improvement and construction work under the terms of leases with certain of our tenants and contractual agreements with our construction vendors. Concentrations of Credit Risk We have deposited cash with financial institutions that are insured by the Federal Deposit Insurance Corporation up to $250,000 per institution. Although we have deposits at institutions in excess of federally insured limits as of March 31, 2020 , we do not believe we are exposed to significant credit risk due to the financial position of the institutions in which those deposits are held. Concentration of Properties in Southern California As of March 31, 2020 , all of our properties are located in the Southern California infill markets. The ability of the tenants to honor the terms of their respective leases is dependent upon the economic, regulatory and social factors affecting the markets in which the tenants operate and other conditions, including the impact of the outbreak of the novel coronavirus (“COVID-19”), which was declared a pandemic in March 2020 by the World Health Organization, and related state and local government reactions. All of our properties are concentrated in Southern California, and the state of California and certain cities, including where we own properties, have reacted to the COVID-19 pandemic by instituting quarantines, restrictions on travel, “shelter in place” rules, restrictions on types of business that may continue to operate and/or restrictions on types of construction projects that may continue as well as moratoriums on commercial tenant evictions and provisions enabling commercial tenants to defer rent. We cannot predict when restrictions currently in place will expire. Additionally, in March 2020, the Governor of California issued Executive Order N-28-20, authorizing local municipalities to impose limitations on commercial evictions for nonpayment of rent for tenants impacted by COVID-19. In response to this Executive Order, most municipalities in Southern California have, in turn, mandated a moratorium on all commercial evictions and have given tenants impacted by COVID-19 the unilateral right to defer rent while the emergency “shelter in place” orders are in effect, with repayment generally within three to six months after the end of the local emergency “shelter in place” or similar order. While we did not incur significant disruptions from the COVID-19 pandemic during the three months ended March 31, 2020, we are currently unable to predict the impact that the COVID-19 pandemic will have on our tenants, including the number of tenants that will take advantage of the relief provided by the local government mandates authorizing the deferral of rent, and as a result, the impact on our business and results of operations. Tenant Concentration During the three months ended March 31, 2020 , no single tenant accounted for more than 5% of our total consolidated rental income. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Equity | Equity Common Stock On June 13, 2019, we established an at-the-market equity offering program (the “$550 Million ATM Program”) pursuant to which we may sell from time to time up to an aggregate of $550.0 million of our common stock through sales agents. During the three months ended March 31, 2020 , we sold a total of 2,206,957 shares of our common stock under the $550 Million ATM Program at a weighted average price of $36.62 per share, for gross proceeds of $80.8 million , and net proceeds of $79.6 million , after deducting the sales agents’ fee. As of March 31, 2020 , we had the capacity to issue up to an additional $269.9 million of common stock under the $550 Million ATM Program. Actual sales going forward, if any, will depend on a variety of factors, including among others, market conditions, the trading price of our common stock, determinations by us of the appropriate sources of funding for us and potential uses of funding available to us. Noncontrolling Interests Noncontrolling interests relate to interests in the Operating Partnership, represented by OP Units, fully-vested LTIP units, fully-vested performance units, 4.43937% cumulative redeemable convertible preferred units of partnership interest in the Operating Partnership (the “Series 1 CPOP Units”) and Series 2 CPOP Units, as more fully described below, that are not owned by us. Operating Partnership Units As of March 31, 2020 , noncontrolling interests included 3,053,396 OP Units and 863,888 fully-vested LTIP units and performance units and represented approximately 3.3% of our Operating Partnership. OP Units and shares of our common stock have essentially the same economic characteristics, as they share equally in the total net income or loss and distributions of our Operating Partnership. Investors who own OP Units have the right to cause our Operating Partnership to redeem any or all of their units in our Operating Partnership for an amount of cash per unit equal to the then current market value of one share of common stock, or, at our election, shares of our common stock on a one-for-one basis. During the three months ended March 31, 2020 , 254,612 OP Units were converted into an equivalent number of shares of common stock, resulting in the reclassification of $6.4 million of noncontrolling interest to Rexford Industrial Realty, Inc.’s stockholders’ equity. Issuance of OP Units and Series 2 CPOP Units in Connection with the Acquisition of the Properties As previously described in Note 3, on March 5, 2020 we acquired from a group of sellers (the “Sellers”) that were not affiliated with the Company ten Properties for an aggregate purchase price of $203.2 million . As partial consideration for the Properties, we issued the Sellers 1,406,170 OP Units, valued at $63.3 million , and 906,374 newly issued 4.00% Cumulative Redeemable Convertible Preferred Units of partnership interest in the Operating Partnership (the “Series 2 CPOP Units”), valued at $40.8 million . The value of the OP Units and Series 2 CPOP Units was based upon a common stock price of $45.00 . Holders of Series 2 CPOP Units, when and as authorized by the Company as general partner of the Operating Partnership, are entitled to cumulative cash distributions at the rate of 4.00% per annum of the $45.00 per unit liquidation preference, payable quarterly in arrears on or about the last day of March, June, September and December of each year, beginning on March 31, 2020. The holders of Series 2 CPOP Units are entitled to receive the liquidation preference, which is $45.00 per unit and approximately $40.8 million in the aggregate for all of the Series 2 CPOP Units, before the holders of OP Units are entitled to receive distributions in the event of any voluntary or involuntary liquidation, dissolution or winding-up of the affairs of the Operating Partnership. The Series 2 CPOP Units are convertible (i) at the option of the holder anytime from time to time (the “Holder Conversion Right”), or (ii) at the option of the Operating Partnership, at any time on or after March 5, 2025, (the “Company Conversion Right”), in each case, into 0.7722 OP Units per Series 2 CPOP Unit, subject to adjustment to eliminate fractional units or to the extent that there are any accrued and unpaid distributions on the Series 2 CPOP Units. As noted above, investors who own OP Units have the right to cause our Operating Partnership to redeem any or all of their units in our Operating Partnership for an amount of cash per unit equal to the then current market value of one share of common stock, or, at our election, shares of our common stock on a one-for-one basis (the “Subsequent Redemption Right”). The Series 2 CPOP Units rank senior to the Operating Partnership’s OP Units, on parity with the Operating Partnership’s 5.875% series A and series B cumulative redeemable preferred units and 5.625% series C cumulative redeemable preferred units, the Series 1 CPOP Units, and with any future class or series of partnership interest of the Operating Partnership expressly designated as ranking on parity with the Series 2 CPOP Units, and junior to any other class or series of partnership interest of the Operating Partnership expressly designated as ranking senior to the Series 2 CPOP Units. Pursuant to relevant accounting guidance, we analyzed the Series 2 CPOP Units for any embedded derivatives that should be bifurcated and accounted for separately and also considered the conditions that would require classification of the Series 2 CPOP Units in temporary equity versus permanent equity. In carrying out our analyses, we evaluated the key features of the Series 2 CPOP Units including the right to discretionary distributions, the Holder Conversion Right, the Company Conversion Right and the Subsequent Redemption Right to determine whether we control the actions or events necessary to issue the maximum number of shares that could be required to be delivered under the share settlement if the Series 2 CPOP Units are converted into shares of our common stock (subsequent to conversion into OP Units). Based on the results of our analyses, we concluded that (i) none of the embedded features of the Series 2 CPOP Units require bifurcation and separate accounting, and (ii) the Series 2 CPOP Units met the criteria to be classified within equity, and accordingly are presented as noncontrolling interests within permanent equity in the consolidated balance sheets. Amended and Restated 2013 Incentive Award Plan On June 11, 2018, our stockholders approved the Amended and Restated Rexford Industrial Realty, Inc. and Rexford Industrial Realty, L.P. 2013 Incentive Award Plan (the “Plan”), superseding and replacing the Rexford Industrial Realty, Inc. and Rexford Industrial Realty, L.P. 2013 Incentive Award Plan (the “Prior Plan”). Pursuant to the Plan, we may continue to make grants of stock options, restricted stock, dividend equivalents, stock payments, restricted stock units, performance shares, LTIP units of partnership interest in our Operating Partnership (“LTIP Units”), performance units in our Operating Partnership (“Performance Units”), and other stock based and cash awards to our non-employee directors, employees and consultants. The aggregate number of shares of our common stock, LTIP Units and Performance Units that may be issued or transferred pursuant to the Plan is 1,770,000 , plus any shares that have not been issued under the Prior Plan, including shares subject to outstanding awards under the Prior Plan that are not issued or delivered to a participant for any reason or that are forfeited by a participant prior to vesting. As of March 31, 2020 , a total of 1,129,009 shares of common stock, LTIP Units and Performance Units remain available for issuance. Shares and units granted under the Plan may be authorized but unissued shares or units, or, if authorized by the board of directors, shares purchased in the open market. If an award under the Plan is forfeited, expires, or is settled for cash, any shares or units subject to such award will generally be available for future awards. LTIP Units and Performance Units LTIP Units and Performance Units are each a class of limited partnership units in the Operating Partnership. Initially, LTIP Units and Performance Units do not have full parity with OP Units with respect to liquidating distributions. However, upon the occurrence of certain events described in the Operating Partnership’s partnership agreement, the LTIP Units and Performance Units can over time achieve full parity with the OP Units for all purposes. If such parity is reached, vested LTIP Units and vested Performance Units may be converted into an equal number of OP Units, and, upon conversion, enjoy all rights of OP Units. LTIP Units, whether vested or not, receive the same quarterly per-unit distributions as OP Units, which equal the per-share distributions on shares of our common stock. Performance Units that have not vested receive a quarterly per-unit distribution equal to 10% of the distributions paid on OP Units. Share-Based Award Activity The following table sets forth our share-based award activity for the three months ended March 31, 2020 : Unvested Awards Restricted Common Stock LTIP Units Performance Units Balance at January 1, 2020 212,545 298,412 687,761 Granted 104,101 36,292 — Forfeited (1,826 ) — — Vested (1) (70,565 ) (41,953 ) — Balance at March 31, 2020 244,255 292,751 687,761 (1) During the three months ended March 31, 2020 , 25,797 shares of the Company’s common stock were tendered in accordance with the terms of the Plan to satisfy minimum statutory tax withholding requirements associated with the vesting of restricted shares of common stock. The following table sets forth the vesting schedule of all unvested share-based awards outstanding as of March 31, 2020 : Unvested Awards Restricted LTIP Units Performance Units (1) April 1, 2020 - December 31, 2020 17,429 154,422 188,250 2021 84,319 90,031 204,517 2022 68,176 45,740 294,994 2023 48,279 2,558 — 2024 26,052 — — Total 244,255 292,751 687,761 (1) Represents the maximum number of Performance Units that would become earned and vested on December 14, 2020, in the event that the specified maximum total shareholder return (“TSR”) hurdles are achieved over the three-year performance period from December 15, 2017 through December 14, 2020, and the maximum number of Performance Units that would become earned and vested on December 31, 2021 and December 31, 2022, in the event that the specified maximum TSR and FFO per share growth hurdles are achieved over the three-year performance period from January 1, 2019 through December 31, 2021 and the three-year performance period from January 1, 2020 through December 31, 2022. Compensation Expense The following table sets forth the amounts expensed and capitalized for all share-based awards for the reported periods presented below (in thousands): Three Months Ended March 31, 2020 2019 Expensed share-based compensation (1) $ 3,570 $ 2,579 Capitalized share-based compensation (2) 57 34 Total share-based compensation $ 3,627 $ 2,613 (1) Amounts expensed are included in “General and administrative” and “Property expenses” in the accompanying consolidated statements of operations. (2) For the three months ended March 31, 2020 and 2019, amounts capitalized relate to employees who provide construction services, and are included in “Building and improvements” in the consolidated balance sheets. As of March 31, 2020 , total unrecognized compensation cost related to all unvested share-based awards was $23.1 million and is expected to be recognized over a weighted average remaining period of 30 months . Changes in Accumulated Other Comprehensive Income The following table summarizes the changes in our AOCI balance for the three months ended March 31, 2020 and 2019 , which consists solely of adjustments related to our cash flow hedges (in thousands): Three Months Ended March 31, 2020 2019 Accumulated other comprehensive (loss) income - beginning balance $ (7,542 ) $ 6,262 Other comprehensive loss before reclassifications (15,398 ) (4,275 ) Amounts reclassified from accumulated other comprehensive loss (income) to interest expense 430 (852 ) Net current period other comprehensive loss (14,968 ) (5,127 ) Less other comprehensive loss attributable to noncontrolling interests 560 126 Other comprehensive loss attributable to common stockholders (14,408 ) (5,001 ) Accumulated other comprehensive (loss) income - ending balance $ (21,950 ) $ 1,261 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except share and per share amounts): Three Months Ended March 31, 2020 2019 Numerator: Net income $ 15,272 $ 10,717 Less: Preferred stock dividends (3,636 ) (2,423 ) Less: Net income attributable to noncontrolling interests (717 ) (201 ) Less: Net income attributable to participating securities (131 ) (114 ) Net income attributable to common stockholders $ 10,788 $ 7,979 Denominator: Weighted average shares of common stock outstanding – basic 114,054,434 98,342,677 Effect of dilutive securities - performance units 259,897 265,109 Weighted average shares of common stock outstanding – diluted 114,314,331 98,607,786 Earnings per share — Basic Net income attributable to common stockholders $ 0.09 $ 0.08 Earnings per share — Diluted Net income attributable to common stockholders $ 0.09 $ 0.08 Unvested share-based payment awards that contain non-forfeitable rights to dividends, whether paid or unpaid, are accounted for as participating securities. As such, unvested shares of restricted stock, unvested LTIP Units and unvested Performance Units are considered participating securities. Participating securities are included in the computation of basic EPS pursuant to the two-class method. The two-class method determines EPS for each class of common stock and each participating security according to dividends declared (or accumulated) and their respective participation rights in undistributed earnings. Participating securities are also included in the computation of diluted EPS using the more dilutive of the two-class method or treasury stock method for unvested shares of restricted stock and LTIP Units, and by determining if certain market conditions have been met at the reporting date for unvested Performance Units. The effect of including unvested shares of restricted stock and unvested LTIP Units using the treasury stock method was excluded from our calculation of weighted average shares of common stock outstanding – diluted, as their inclusion would have been anti-dilutive. Performance Units, which are subject to vesting based on the Company achieving certain TSR levels over a three -year performance period, are included as contingently issuable shares in the calculation of diluted EPS when TSR has been achieved at or above the threshold levels specified in the award agreements, assuming the reporting period is the end of the performance period, and the effect is dilutive. We also consider the effect of other potentially dilutive securities, including the Series 1 CPOP Units, Series 2 CPOP Units and OP Units, which may be redeemed for shares of our common stock under certain circumstances, and include them in our computation of diluted EPS when their inclusion is dilutive. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events COVID-19 Subsequent to March 31, 2020, the global economy has continued to be severely impacted by the COVID-19 pandemic and we are closely monitoring the impact of the COVID-19 pandemic on all aspects of our business, including how it will impact our tenants in the near and long term. While we did not incur significant disruptions from the COVID-19 pandemic during the three months ended March 31, 2020, we believe this situation may have an impact on our business and results of operations in the second quarter and in later periods of 2020 that may be material, but cannot be reasonably estimated at this time due to numerous uncertainties. On April 10, 2020, the FASB issued a staff question-and-answer document (the “Q&A”) to address some frequently asked questions about accounting for deferrals of lease payments and reduced future lease payments (both “concessions”) related to the effects of the COVID-19 pandemic. Consequently, for concessions related to the effects of the COVID-19 pandemic, an entity will not have to analyze each contract to determine whether enforceable rights and obligations for concessions exist in the contract and can elect to apply or not apply the lease modification guidance in ASC 842 to those contracts. Entities may make the elections for any lessor-provided concessions related to the effects of the COVID-19 pandemic as long as the concession does not result in a substantial increase in the rights of the lessor or the obligations of the lessee. There were no lease concessions granted as a result of COVID-19 during the three months ended March 31, 2020. See below for a summary of concessions being granted to tenants impacted by COVID-19 subsequent to March 31, 2020 . We are currently evaluating the Q&A and the appropriate accounting for these concessions. Subsequent to March 31, 2020, we have received rent relief requests from a number of tenants claiming impacts from COVID-19, many of whom may be making such rent relief requests in response to local California governmental moratoriums on commercial tenant evictions and provisions enabling commercial tenants to defer rent. We are evaluating each tenant’s rent relief request on an individual basis and considering a number of factors prior to executing a lease amendment. For tenants requesting rent relief who meet certain established criteria, we are offering the following concessions: (i) application of their security deposit to contractual base rent, (ii) acceleration of future existing contractual rent concessions to cover contractual base rent, (iii) deferral of contractual base rent and (iv) various combinations of the aforementioned options. Not all tenant requests will result in lease amendments, nor are we forgoing our contractual rights under any of our lease agreements. For further information regarding the impact of COVID-19 on the Company, see Part II, Item 1A titled “Risk Factors.” Acquisitions On April 1, 2020, we acquired a one-acre parcel of land located at Brady Way in Garden Grove, California for a contract price of $0.9 million . This parcel of land is adjacent to another one of our properties. On April 3, 2020 , we acquired the property located at 720-750 North Vernon Avenue in Azusa , California for a contract price of $15.5 million . The property consists of one multi-tenant building with a total of 71,692 rentable square feet. Dividends Declared On May 4, 2020 , our board of directors declared the following quarterly cash dividends/distributions: Security Amount per Share/Unit Record Date Payment Date Common stock $ 0.215 June 30, 2020 July 15, 2020 OP Units $ 0.215 June 30, 2020 July 15, 2020 5.875% Series A Cumulative Redeemable Preferred Stock $ 0.367188 June 15, 2020 June 30, 2020 5.875% Series B Cumulative Redeemable Preferred Stock $ 0.367188 June 15, 2020 June 30, 2020 5.625% Series C Cumulative Redeemable Preferred Stock $ 0.351563 June 15, 2020 June 30, 2020 4.43937% Cumulative Redeemable Convertible Preferred Units $ 0.505085 June 15, 2020 June 30, 2020 4.00% Cumulative Redeemable Convertible Preferred Units $ 0.45 June 15, 2020 June 30, 2020 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation As of March 31, 2020 and December 31, 2019 , and for the three months ended March 31, 2020 and 2019 , the financial statements presented are the consolidated financial statements of Rexford Industrial Realty, Inc. and its subsidiaries, including our Operating Partnership. All significant intercompany balances and transactions have been eliminated in the consolidated financial statements. Under consolidation guidance, we have determined that our Operating Partnership is a variable interest entity because the holders of limited partnership interests do not have substantive kick-out rights or participating rights. Furthermore, we are the primary beneficiary of the Operating Partnership because we have the obligation to absorb losses and the right to receive benefits from the Operating Partnership and the exclusive power to direct the activities of the Operating Partnership. As of March 31, 2020 and December 31, 2019 , the assets and liabilities of the Company and the Operating Partnership are substantially the same, as the Company does not have any significant assets other than its investment in the Operating Partnership. The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) may have been condensed or omitted pursuant to SEC rules and regulations, although we believe that the disclosures are adequate to make their presentation not misleading. The accompanying unaudited financial statements include, in our opinion, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial information set forth therein. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 . The interim financial statements should be read in conjunction with the consolidated financial statements in our 2019 Annual Report on Form 10-K and the notes thereto. Any references to the number of properties and square footage are unaudited and outside the scope of our independent registered public accounting firm’s review of our financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include all cash and liquid investments with an initial maturity of three months or less. The carrying amount approximates fair value due to the short-term maturity of these investments. |
Restricted Cash | Restricted Cash Restricted cash is comprised of escrow reserves that we are required to set aside for future costs as required by certain agreements with our lenders, and from time to time includes cash proceeds from property sales that are being held by qualified intermediaries for purposes of facilitating tax-deferred like-kind exchanges under Section 1031 of the Internal Revenue Code (“1031 Exchange”). As of March 31, 2020 , the restricted cash balance of $46 thousand was being reserved for real estate taxes related to the property located at 960-970 Knox Street. As of December 31, 2019 we did not have a balance in restricted cash. |
Investments in Real Estate | Investments in Real Estate Acquisitions We account for acquisitions of properties under Accounting Standards Update (“ASU”) 2017-01, Business Combinations - Clarifying the Definition of a Business (“ASU 2017-01”), which provides a framework for determining whether transactions should be accounted for as acquisitions of assets or businesses and further revises the definition of a business. Our acquisitions of properties generally no longer meet the revised definition of a business and accordingly are accounted for as asset acquisitions. For asset acquisitions, we allocate the cost of the acquisition, which includes the purchase price and associated acquisition transaction costs, to the individual assets acquired and liabilities assumed on a relative fair value basis. These individual assets and liabilities typically include land, building and improvements, tenant improvements, intangible assets and liabilities related to above- and below-market leases, intangible assets related to in-place leases, and from time to time, assumed debt. As there is no measurement period concept for an asset acquisition, the allocated cost of the acquired assets is finalized in the period in which the acquisition occurs. We determine the fair value of the tangible assets of an acquired property by valuing the property as if it were vacant. This “as-if vacant” value is estimated using an income, or discounted cash flow, approach that relies upon Level 3 inputs, which are unobservable inputs based on the Company’s assumptions about the assumptions a market participant would use. These Level 3 inputs include discount rates, capitalization rates, market rents and comparable sales data for similar properties. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions. In determining the “as-if-vacant” value for the properties we acquired during the three months ended March 31, 2020 , we used discount rates ranging from 5.75% to 6.50% and exit capitalization rates ranging from 4.75% to 5.50% . In determining the fair value of intangible lease assets or liabilities, we also consider Level 3 inputs. Acquired above- and below-market leases are valued based on the present value of the difference between prevailing market rates and the in-place rates measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed rate renewal options for below-market leases, if applicable. The estimated fair value of acquired in-place at-market tenant leases are the estimated costs that would have been incurred to lease the property to the occupancy level of the property at the date of acquisition. We consider estimated costs such as the value associated with leasing commissions, legal and other costs, as well as the estimated period of time necessary to lease such a property to its occupancy level at the time of its acquisition. In determining the fair value of acquisitions completed during the three months ended March 31, 2020 , we used an estimated average lease-up period of six months . The difference between the fair value and the face value of debt assumed, if any, in connection with an acquisition is recorded as a premium or discount and amortized to “interest expense” over the life of the debt assumed. The valuation of assumed liabilities are based on our estimate of the current market rates for similar liabilities in effect at the acquisition date. In determining the fair value of debt assumed during the three months ended March 31, 2020 , we used estimated market interest rates ranging from 3.21% to 3.75% . Capitalization of Costs We capitalize direct costs incurred in developing, renovating, rehabilitating and improving real estate assets as part of the investment basis. This includes certain general and administrative costs, including payroll, bonus and non-cash equity compensation of the personnel performing development, renovations and rehabilitation if such costs are identifiable to a specific activity to get the real estate asset ready for its intended use. During the development and construction periods of a project, we also capitalize interest, real estate taxes and insurance costs. We cease capitalization of costs upon substantial completion of the project, but no later than one year from cessation of major construction activity. If some portions of a project are substantially complete and ready for use and other portions have not yet reached that stage, we cease capitalizing costs on the completed portion of the project but continue to capitalize for the incomplete portion of the project. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. We capitalized interest costs of $0.9 million and $0.6 million during the three months ended March 31, 2020 and 2019 , respectively. We capitalized real estate taxes and insurance costs aggregating $0.3 million and $0.2 million during the three months ended March 31, 2020 and 2019 , respectively. We capitalized compensation costs for employees who provide construction services of $1.0 million and $0.7 million during the three months ended March 31, 2020 and 2019 , respectively. Depreciation and Amortization Real estate, including land, building and land improvements, tenant improvements, furniture, fixtures and equipment and intangible lease assets and liabilities are stated at historical cost less accumulated depreciation and amortization, unless circumstances indicate that the cost cannot be recovered, in which case, the carrying value of the property is reduced to estimated fair value as discussed below in our policy with regard to impairment of long-lived assets. We estimate the depreciable portion of our real estate assets and related useful lives in order to record depreciation expense. The values allocated to buildings, site improvements, in-place lease intangibles and tenant improvements are depreciated on a straight-line basis using an estimated remaining life of 10 - 30 years for buildings, 5 - 20 years for site improvements, and the shorter of the estimated useful life or respective lease term for in-place lease intangibles and tenant improvements. As discussed above in— Investments in Real Estate—Acquisitions , in connection with property acquisitions, we may acquire leases with rental rates above or below the market rental rates. Such differences are recorded as an acquired lease intangible asset or liability and amortized to “rental income” over the remaining term of the related leases. Our estimate of the useful life of our assets is evaluated upon acquisition and when circumstances indicate that a change in the useful life has occurred, which requires significant judgment regarding the economic obsolescence of tangible and intangible assets. |
Assets Held for Sale | Assets Held for Sale We classify a property as held for sale when all of the criteria set forth in the Accounting Standards Codification (“ASC”) Topic 360: Property, Plant and Equipment (“ASC 360”) have been met. The criteria are as follows: (i) management, having the authority to approve the action, commits to a plan to sell the property; (ii) the property is available for immediate sale in its present condition, subject only to terms that are usual and customary; (iii) an active program to locate a buyer and other actions required to complete the plan to sell have been initiated; (iv) the sale of the property is probable and is expected to be completed within one year; (v) the property is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (vi) actions necessary to complete the plan of sale indicate that it is unlikely that significant changes to |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets In accordance with the provisions of the Impairment or Disposal of Long-Lived Assets Subsections of ASC 360 , we assess the carrying values of our respective long-lived assets, including goodwill, whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. Recoverability of real estate assets is measured by comparison of the carrying amount of the asset to the estimated future undiscounted cash flows. To review real estate assets for recoverability, we consider current market conditions as well as our intent with respect to holding or disposing of the asset. The intent with regards to the underlying assets might change as market conditions and other factors change. Fair value is determined through various valuation techniques; including discounted cash flow models, applying a capitalization rate to estimated net operating income of a property, quoted market values and third-party appraisals, where considered necessary. The use of projected future cash flows is based on assumptions that are consistent with estimates of future expectations and the strategic plan used to manage our underlying business. If our analysis indicates that the carrying value of the real estate asset is not recoverable on an undiscounted cash flow basis, we will recognize an impairment charge for the amount by which the carrying value exceeds the current estimated fair value of the real estate property. |
Income Taxes | Income Taxes We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”) commencing with our initial taxable year ended December 31, 2013. To qualify as a REIT, we are required (among other things) to distribute at least 90% of our REIT taxable income to our stockholders and meet the various other requirements imposed by the Code relating to matters such as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided we qualify for taxation as a REIT, we are generally not subject to corporate-level income tax on the earnings distributed currently to our stockholders. If we fail to qualify as a REIT in any taxable year, and were unable to avail ourselves of certain savings provisions set forth in the Code, all of our taxable income would be subject to federal income tax at regular corporate rates, including any applicable alternative minimum tax. In addition, we are subject to taxation by various state and local jurisdictions, including those in which we transact business or reside. Our non-taxable REIT subsidiaries, including our Operating Partnership, are either partnerships or disregarded entities for federal income tax purposes. Under applicable federal and state income tax rules, the allocated share of net income or loss from disregarded entities and flow-through entities such as partnerships is reportable in the income tax returns of the respective equity holders. Accordingly, no income tax provision is included in the accompanying consolidated financial statements for the three months ended March 31, 2020 and 2019 . We periodically evaluate our tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of March 31, 2020 and December 31, 2019 , we have not established a liability for uncertain tax positions. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities ASC Topic 815: Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. As required by ASC 815, we record all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, and whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. We may enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply or we elect not to apply hedge accounting. See Note 7. |
Revenue Recognition | Revenue Recognition Our primary sources of revenue are rental income, management, leasing and development services and gains on sale of real estate. Rental Income We lease industrial space to tenants primarily under non-cancelable operating leases that generally contain provisions for minimum base rents plus reimbursement for certain operating expenses. Total minimum annual lease payments are recognized in rental income on a straight-line basis over the term of the related lease, regardless of when payments are contractually due. Rental revenue recognition commences when the tenant takes possession or controls the physical use of the leased space. Lease termination fees, which are included in rental income, are recognized when the related leases are canceled and we have no continuing obligation to provide services to such former tenants. Our lease agreements with tenants generally contain provisions that require tenants to reimburse us for certain property expenses. Estimated reimbursements from tenants for these property expenses, which include real estate taxes, insurance, common area maintenance and other recoverable operating expenses, are recognized as revenues in the period that the expenses are incurred. Subsequent to year-end, we perform final reconciliations on a lease-by-lease basis and bill or credit each tenant for any cumulative annual adjustments. As the timing and pattern of revenue recognition is the same, rents and tenant reimbursements are treated as a combined lease component and presented as a single line item “Rental income” in our consolidated statements of operations. We record revenues and expenses on a gross basis for lessor costs (which include real estate taxes) when these costs are reimbursed to us by our tenants. Conversely, we record revenues and expenses on a net basis for lessor costs when they are paid by our tenants directly to the taxing authorities on our behalf. Management, leasing and development services We provide property management services and leasing services to related party and third-party property owners, the customer, in exchange for fees and commissions. Property management services include performing property inspections, monitoring repairs and maintenance, negotiating vendor contracts, maintaining tenant relations and providing financial and accounting oversight. For these services, we earn monthly management fees, which are based on a fixed percentage of each managed property’s monthly tenant cash receipts. We have determined that control over the services is passed to the customer simultaneously as performance occurs. Accordingly, management fee revenue is earned as the services are provided to our customers. Leasing commissions are earned when we provide leasing services that result in an executed lease with a tenant. We have determined that control over the services is transferred to the customer upon execution of each lease agreement. We earn leasing commissions based on a fixed percentage of rental income generated for each executed lease agreement and there is no variable income component. Gain or Loss on Sale of Real Estate We account for dispositions of real estate properties, which are considered nonfinancial assets, in accordance with ASC 610-20: Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets and recognize a gain or loss on sale of real estate upon transferring control of the nonfinancial asset to the purchaser, which is generally satisfied at the time of sale. If we were to conduct a partial sale of real estate by transferring a controlling interest in a nonfinancial asset, while retaining a noncontrolling ownership interest, we would measure any noncontrolling interest received or retained at fair value, and recognize a full gain or loss. If we receive consideration before transferring control of a nonfinancial asset, we recognize a contract liability. If we transfer control of the asset before consideration is received, we recognize a contract asset. |
Valuation of Receivables | Valuation of Receivables |
Deferred Leasing Costs | Deferred Leasing Costs We capitalize the incremental direct costs of originating a lease that would not have been incurred had the lease not been executed. As a result, deferred leasing costs will generally only include third-party broker commissions. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs related to a recognized debt liability are presented in the balance sheet as a reduction from the carrying value of the debt liability. This offset against the debt liability is treated similarly to a debt discount, which effectively reduces the proceeds of a borrowing. For line of credit arrangements, we present debt issuance costs as an asset and amortize the cost over the term of the line of credit arrangement. See Note 5. |
Equity Based Compensation | Equity Based Compensation We account for equity-based compensation in accordance with ASC Topic 718: Compensation - Stock Compensation. Total compensation cost for all share-based awards is based on the estimated fair market value on the grant date. For share-based awards that vest based solely on a service condition, we recognize compensation cost on a straight-line basis over the total requisite service period for the entire award. For share-based awards that vest based on a market condition, we recognize compensation cost on a straight-line basis over the requisite service period of each separately vesting tranche. For share-based awards that vest based on a performance condition, we recognize compensation cost based on the number of awards that are expected to vest based on the probable outcome of the performance condition. Compensation cost for these awards will be adjusted to reflect the number of awards that ultimately vest. Forfeitures are recognized in the period in which they occur. See Note 11. |
Equity Offering Costs | Equity Offering Costs |
Earnings Per Share | Earnings Per Share We calculate earnings per share (“EPS”) in accordance with ASC 260 - Earnings Per Share (“ASC 260”). Under ASC 260, nonvested share-based payment awards that contain non-forfeitable rights to dividends are participating securities and, therefore, are included in the computation of basic EPS pursuant to the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends declared (or accumulated) and their respective participation rights in undistributed earnings. Basic EPS is calculated by dividing the net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period. Diluted EPS is calculated by dividing the net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding determined for the basic EPS computation plus the effect of any dilutive securities. We include unvested shares of restricted stock and unvested LTIP units in the computation of diluted EPS by using the more dilutive of the two-class method or treasury stock method. We include unvested performance units as contingently issuable shares in the computation of diluted EPS once the market criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted EPS calculation. See Note 12. |
Segment Reporting | Segment Reporting Management views the Company as a single reportable segment based on its method of internal reporting in addition to its allocation of capital and resources. |
Leases as a Lessee | Leases as a Lessee We determine if an arrangement is a lease at inception. Operating lease right-of-use assets (“ROU assets”) are included in “Other assets” and lease liabilities are included in “Accounts payable, accrued expenses and other liabilities” in our consolidated balance sheets. ROU assets represent our right to use, or control the use of, a specified asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Because our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Additionally, for our operating leases, we do not separate non-lease components, such as common area maintenance, from associated lease components. See Note 6. |
Adoption of New Accounting Pronouncements; Recently Issued Accounting Pronouncements | ASC 842 - Cumulative-Effect Adjustment to Retained Earning On January 1, 2019, we adopted the new lease accounting standard, ASU 2016-02, Leases (Topic 842), and the various lease-related ASUs that were subsequently issued by the Financial Accounting Standards Board (“FASB”) (collectively referred to as “ASC 842”), which together set out the principals for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. We adopted ASC 842 using the modified retrospective approach and applied the provisions as of the date of adoption on a prospective basis. Upon adoption of ASC 842, we recognized a cumulative-effect adjustment to retained earnings of $0.2 million to write off internal compensation costs that were capitalized in connection with leases that were executed but had not commenced prior to January 1, 2019, as these costs were capitalized in accordance with prior lease accounting guidance and did not qualify for capitalization under ASC 842. Adoption of New Accounting Pronouncements Allowance for Credit Losses On June 16, 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which amends the accounting for credit losses for certain financial instruments. ASU 2016-13 introduced the “current expected credit losses” (CECL) model, which requires companies to estimate credit losses immediately upon exposure. The guidance applies to financial assets measured at amortized cost including net investments in leases arising from sales-type and direct financing leases, financing receivables (loans) and trade receivables. On November 26, 2018, the FASB issued ASU 2018-19, C odification Improvements to Topic 326, Financial Instrument - Credit Losses, which clarifies that operating lease receivables are outside the scope of ASC Topic 326 and instead should be accounted for under ASC 842. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. Effective January 1, 2020 we adopted ASU 2016-13. As we did not have any financial assets within the scope of ASU 2016-13, there was no impact to our consolidated financial statements. In the event that any of our leases were to be classified as sales-type or direct finance leases, or if we were to acquire or provide mortgage debt secured by industrial properties in the future, we would become subject to the provisions of ASU 2016-13. Recently Issued Accounting Pronouncements Changes to GAAP are established by the FASB in the form of ASUs to the FASB’s Accounting Standards Codification. We consider the applicability and impact of all ASUs. Other than the ASUs discussed below, the FASB has not recently issued any other ASUs that we expect to be applicable and have a material impact on our consolidated financial statements. Reference Rate Reform |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the three months ended March 31, 2020 and 2020 (in thousands): Three Months Ended March 31, 2020 2019 Cash and cash equivalents $ 78,857 $ 180,601 Restricted cash — — Cash, cash equivalents and restricted cash, beginning of period $ 78,857 $ 180,601 Cash and cash equivalents $ 112,432 $ 276,575 Restricted cash 46 — Cash, cash equivalents and restricted cash, end of period $ 112,478 $ 276,575 |
Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the three months ended March 31, 2020 and 2020 (in thousands): Three Months Ended March 31, 2020 2019 Cash and cash equivalents $ 78,857 $ 180,601 Restricted cash — — Cash, cash equivalents and restricted cash, beginning of period $ 78,857 $ 180,601 Cash and cash equivalents $ 112,432 $ 276,575 Restricted cash 46 — Cash, cash equivalents and restricted cash, end of period $ 112,478 $ 276,575 |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, All Other Investments [Abstract] | |
Summary of Acquired Wholly Owned Property Acquisitions | The following table summarizes the wholly-owned industrial properties we acquired during the three months ended March 31, 2020 : Property Submarket Date of Acquisition Rentable Square Feet Number of Buildings Contractual Purchase Price (1) (in thousands) 701-751 Kingshill Place Los Angeles - South Bay 3/5/2020 169,069 6 $ 32,968 2601-2641 Manhattan Beach Boulevard Los Angeles - South Bay 3/5/2020 126,726 6 38,230 2410-2420 Santa Fe Avenue Los Angeles - South Bay 3/5/2020 112,000 1 34,700 11600 Los Nietos Road Los Angeles - Mid-Counties 3/5/2020 103,982 1 16,608 5160 Richton Street San Bernardino - Inland Empire West 3/5/2020 94,976 1 15,605 2205 126th Street Los Angeles - South Bay 3/5/2020 63,532 1 17,100 11832-11954 La Cienega Boulevard Los Angeles - South Bay 3/5/2020 63,462 4 19,150 7612-7642 Woodwind Drive Orange County - West 3/5/2020 62,377 3 13,719 960-970 Knox Street Los Angeles - South Bay 3/5/2020 39,400 1 9,600 25781 Atlantic Ocean Drive Orange County - South 3/5/2020 27,960 1 5,475 Total 2020 Wholly-Owned Property Acquisitions 863,484 25 $ 203,155 (1) Represents the gross contractual purchase price before prorations, closing costs and other acquisition related costs. |
Summary of Fair Value of Amounts Recognized | The following table summarizes the fair value of amounts allocated to each major class of asset and liability for the acquisitions noted in the table above, as of the date of each acquisition (in thousands): 2020 Acquisitions Assets: Land $ 141,363 Buildings and improvements 61,853 Tenant improvements 1,529 Acquired lease intangible assets (1) 9,196 Other acquired assets (2) 281 Total assets acquired 214,222 Liabilities: Acquired lease intangible liabilities (3) 7,303 Notes payable (4) 45,833 Other assumed liabilities (2) 861 Total liabilities assumed 53,997 Net assets acquired $ 160,225 (1) Acquired lease intangible assets is comprised of $9.1 million of in-place lease intangibles with a weighted average amortization period of 4.6 years and $0.1 million of above-market lease intangibles with a weighted average amortization period of 4.7 years. (2) Includes other working capital assets acquired and liabilities assumed at the time of acquisition. (3) Represents below-market lease intangibles with a weighted average amortization period of 5.9 years. (4) In connection with acquisition of the Properties, we assumed nine mortgage loans from the sellers. At the date of acquisition, the loans had an aggregate fair value of $45.8 million and an aggregate principal balance of $44.7 million |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Acquired Lease Intangible Assets and Liabilities | The following table summarizes our acquired lease intangible assets, including the value of in-place leases and above-market tenant leases, and our acquired lease intangible liabilities which includes below-market tenant leases (in thousands): March 31, 2020 December 31, 2019 Acquired Lease Intangible Assets: In-place lease intangibles $ 163,381 $ 154,370 Accumulated amortization (93,653 ) (87,955 ) In-place lease intangibles, net $ 69,728 $ 66,415 Above-market tenant leases $ 14,358 $ 14,296 Accumulated amortization (7,948 ) (7,621 ) Above-market tenant leases, net $ 6,410 $ 6,675 Acquired lease intangible assets, net $ 76,138 $ 73,090 Acquired Lease Intangible Liabilities: Below-market tenant leases $ (89,000 ) $ (81,718 ) Accumulated accretion 25,086 22,378 Below-market tenant leases, net $ (63,914 ) $ (59,340 ) Acquired lease intangible liabilities, net $ (63,914 ) $ (59,340 ) |
Summary of Amortization or Accretion Recorded During the Period Related to Acquired Lease Intangibles | The following table summarizes the amortization related to our acquired lease intangible assets and liabilities for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 In-place lease intangibles (1) $ 5,822 $ 4,339 Net below-market tenant leases (2) $ (2,402 ) $ (1,751 ) (1) The amortization of in-place lease intangibles is recorded to depreciation and amortization expense in the consolidated statements of operations for the periods presented. (2) The amortization of net below-market tenant leases is recorded as an increase to rental income in the consolidated statements of operations for the periods presented. |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table summarizes the components and significant terms of our indebtedness as of March 31, 2020 and December 31, 2019 (dollars in thousands): March 31, 2020 December 31, 2019 Margin Above LIBOR Interest Rate (1) Contractual Maturity Date Unsecured and Secured Debt Unsecured Debt: Revolving Credit Facility $ — $ — 1.050 % (2) 2.043 % (3) 2/13/2024 (4) $100M Term Loan Facility 100,000 100,000 1.200 % (2) 2.964 % (5) 2/14/2022 $225M Term Loan Facility 225,000 225,000 1.200 % (2) 2.574 % (5) 1/14/2023 $150M Term Loan Facility 150,000 150,000 1.500 % (2) 4.263 % (5) 5/22/2025 $100M Notes 100,000 100,000 n/a 4.290 % 8/6/2025 $125M Notes 125,000 125,000 n/a 3.930 % 7/13/2027 $25M Series 2019A Notes 25,000 25,000 n/a 3.880 % 7/16/2029 $75M Series 2019B Notes 75,000 75,000 n/a 4.030 % 7/16/2034 Total Unsecured Debt $ 800,000 $ 800,000 Secured Debt: $60M Term Loan (6) $ 58,499 $ 58,499 1.700 % 2.693 % 8/1/2023 (6) Gilbert/La Palma (7) 2,419 2,459 n/a 5.125 % 3/1/2031 701-751 Kingshill Place (8) 7,100 — n/a 3.900 % 1/5/2026 2601-2641 Manhattan Beach Boulevard (7) 4,147 — n/a 4.080 % 4/5/2023 2410-2420 Santa Fe Avenue (7) 10,300 — n/a 3.700 % 1/1/2028 11600 Los Nietos Road (7) 2,899 — n/a 4.190 % 5/1/2024 5160 Richton Street (7) 4,471 — n/a 3.790 % 11/15/2024 2205 126th Street (9) 5,200 — n/a 3.910 % 12/1/2027 11832-11954 La Cienega Boulevard (8) 4,100 — n/a 4.260 % 7/1/2028 7612-7642 Woodwind Drive (7) 3,959 — n/a 5.240 % 1/5/2024 960-970 Knox Street (7)(10) 2,551 — n/a 5.000 % 11/1/2023 Total Secured Debt $ 105,645 $ 60,958 Total Unsecured and Secured Debt $ 905,645 $ 860,958 Less: Unamortized premium/discount and debt issuance costs (11) (1,843 ) (3,116 ) Total $ 903,802 $ 857,842 (1) Reflects the contractual interest rate under the terms of each loan as of March 31, 2020 and includes the effect of interest rate swaps that were effective as of March 31, 2020 . See footnote (5) below. Excludes the effect of unamortized debt issuance costs and unamortized fair market value premiums and discounts. (2) The interest rates on these loans are comprised of LIBOR plus a LIBOR margin. The LIBOR margins will range from 1.05% to 1.50% per annum for the unsecured revolving credit facility, 1.20% to 1.70% per annum for the $100.0 million term loan facility, 1.20% to 1.70% per annum for the $225.0 million term loan facility and 1.50% to 2.20% per annum for the $150 million term loan facility, depending on our leverage ratio, which is the ratio of our outstanding consolidated indebtedness to the value of our consolidated gross asset value, which is measured on a quarterly basis. (3) The unsecured revolving credit facility is subject to an applicable facility fee which is calculated as a percentage of the total lenders’ commitment amount, regardless of usage. The applicable facility fee will range from 0.15% to 0.30% per annum depending upon our leverage ratio. (4) Two additional six -month extensions are available at the borrower’s option, subject to certain terms and conditions. (5) As of March 31, 2020 , interest on the $100.0 million term loan facility, $225.0 million term loan facility and $150 million term loan facility have been effectively fixed through the use of interest rate swaps. See Note 7 for details. (6) Loan is secured by six properties. One 24 -month extension is available at the borrower’s option, subject to certain terms and conditions. Monthly payments of interest only through June 2021, followed by equal monthly payments of principal ( $65,250 ), plus accrued interest until maturity. (7) Fixed monthly payments of interest and principal until maturity as follows: Gilbert/La Palma ( $24,008 ), 2601-2641 Manhattan Beach Boulevard ( $23,138 ), 2410-2420 Santa Fe Avenue ( $31,758 ), 11600 Los Nietos ( $22,637 ), 5160 Richton Street ( $23,270 ), 7612-7642 Woodwind Drive ( $24,270 ) and 960-970 Knox Street ( $17,538 ). (8) For 701-751 Kingshill Place, fixed monthly payments of interest only through January 2023, followed by fixed monthly payments of interest and principal ( $33,488 ) until maturity. For 11832-11954 La Cienega Boulevard, fixed monthly payments of interest only through July 2020, followed by fixed monthly payments of interest and principal ( $20,194 ) until maturity. (9) Fixed monthly payments of interest only. (10) Loan also requires monthly escrow reserve payments for real estate taxes related to the property located at 960-970 Knox Street. (11) Excludes unamortized debt issuance costs related to our unsecured revolving credit facility, which are presented in the line item “Deferred loan costs, net” in the consolidated balance sheets. |
Summary of Future Minimum Debt Payments | The following table summarizes the contractual debt maturities and scheduled amortization payments, excluding debt discounts and debt issuance costs, as of March 31, 2020 , and does not consider extension options available to us as noted in the table above (in thousands): April 1, 2020 - December 31, 2020 $ 560 2021 1,200 2022 101,630 2023 289,245 2024 10,348 Thereafter 502,662 Total $ 905,645 |
Operating Leases (Tables)
Operating Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Future Minimum Base Rent Under Non-cancelable Operating Leases | The following table sets forth the undiscounted cash flows for future minimum base rents to be received under operating leases as of March 31, 2020 (in thousands): Twelve Months Ended March 31, 2021 $ 247,146 2022 212,374 2023 172,010 2024 132,910 2025 93,438 Thereafter 298,695 Total $ 1,156,573 |
Lease Cost | The tables below present financial information associated with our leases for the three months ended March 31, 2020 and 2019, and as of March 31, 2020 and December 31, 2019 . Three Months Ended March 31, Lease Cost (in thousands) 2020 2019 Operating lease cost (1) $ 305 $ 260 Variable lease cost (1) 12 13 Sublease income (2) — (79 ) Total lease cost $ 317 $ 194 (1) Amounts are included in “General and administrative” and “Property expenses” in the accompanying consolidated statements of operations. (2) Amount is included in “Rental income” in the accompanying consolidated statements of operations. Three Months Ended March 31, Other Information (in thousands) 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 180 $ 239 Right-of-use assets obtained in exchange for new operating lease liabilities (1) $ 1,014 $ 6,720 (1) For the three months ended March 31, 2019 , the reported amount includes $3.3 million for operating leases existing on January 1, 2019, the date we adopted ASC 842. Lease Term and Discount Rate March 31, 2020 December 31, 2019 Weighted-average remaining lease term 4.6 years 4.7 years Weighted-average discount rate (1) 3.68 % 3.92 % (1) Because the rate implicit in each of our leases was not readily determinable, we used our incremental borrowing rate. In determining our incremental borrowing rate for each lease, we considered recent rates on secured borrowings, observable risk-free interest rates and credit spreads correlating to our creditworthiness, the impact of collateralization and the term of each of our lease agreements. |
Maturities of Lease Liabilities | Maturities of lease liabilities as of March 31, 2020 were as follows (in thousands): April 1, 2020 - December 31, 2020 $ 872 2021 1,091 2022 1,093 2023 1,131 2024 1,161 Thereafter 97 Total undiscounted lease payments $ 5,445 Less imputed interest (468 ) Total lease liabilities $ 4,977 |
Interest Rate Swaps (Tables)
Interest Rate Swaps (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Interest Rate Swap Agreement | The following table sets forth a summary of our interest rate swaps at March 31, 2020 and December 31, 2019 (dollars in thousands): Current Notional Value (1) Fair Value of Interest Rate Derivative Assets /(Derivative Liabilities) (2) Derivative Instrument Effective Date Maturity Date LIBOR Interest Strike Rate March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 Interest Rate Swap 2/14/2018 1/14/2022 1.3490 % $ 125,000 $ 125,000 $ (2,380 ) $ 489 Interest Rate Swap 8/14/2018 1/14/2022 1.4060 % $ 100,000 $ 100,000 $ (2,006 ) $ 277 Interest Rate Swap 12/14/2018 8/14/2021 1.7640 % $ 100,000 $ 100,000 $ (2,024 ) $ (332 ) Interest Rate Swap 7/22/2019 11/22/2024 2.7625 % $ 150,000 $ 150,000 $ (16,280 ) $ (8,156 ) (1) Represents the notional value of swaps that are effective as of the balance sheet date presented. (2) The fair value of derivative assets are included in the line item “Interest rate swap asset” in the accompanying consolidated balance sheets and the fair value of (derivative liabilities) are included in the line item “Interest rate swap liability” in the accompanying consolidated balance sheets. |
Summary of Impact of Interest Rate Swaps on Consolidated Financial Statements | The following table sets forth the impact of our interest rate swaps on our consolidated statements of operations for the periods presented (in thousands): Three Months Ended March 31, 2020 2019 Interest Rate Swaps in Cash Flow Hedging Relationships: Amount of loss recognized in AOCI on derivatives $ (15,398 ) $ (4,275 ) Amount of (loss) gain reclassified from AOCI into earnings under “Interest expense” $ (430 ) $ 852 Total interest expense presented in the Consolidated Statement of Operations in which the effects of cash flow hedges are recorded (line item “Interest expense”) $ 7,449 $ 6,471 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Vale on a Recurring Basis by Level within Fair Value Hierarchy | The table below sets forth the estimated fair value of our interest rate swaps as of March 31, 2020 and December 31, 2019 , which we measure on a recurring basis by level within the fair value hierarchy (in thousands). Fair Value Measurement Using Total Fair Value Quoted Price in Active Markets for Identical Assets and Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2020 Interest Rate Swap Asset $ — $ — $ — $ — Interest Rate Swap Liability $ (22,690 ) $ — $ (22,690 ) $ — December 31, 2019 Interest Rate Swap Asset $ 766 $ — $ 766 $ — Interest Rate Swap Liability $ (8,488 ) $ — $ (8,488 ) $ — |
Carrying Value and Estimated Fair Value of Notes Payable | The table below sets forth the carrying value and the estimated fair value of our notes payable as of March 31, 2020 and December 31, 2019 (in thousands): Fair Value Measurement Using Liabilities Total Fair Value Quoted Price in Active Markets for Identical Assets and Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Carrying Value Notes Payable at: March 31, 2020 $ 936,817 $ — $ — $ 936,817 $ 903,802 December 31, 2019 $ 882,813 $ — $ — $ 882,813 $ 857,842 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Unvested Restricted Stock Activity | The following table sets forth our share-based award activity for the three months ended March 31, 2020 : Unvested Awards Restricted Common Stock LTIP Units Performance Units Balance at January 1, 2020 212,545 298,412 687,761 Granted 104,101 36,292 — Forfeited (1,826 ) — — Vested (1) (70,565 ) (41,953 ) — Balance at March 31, 2020 244,255 292,751 687,761 (1) During the three months ended March 31, 2020 , 25,797 shares of the Company’s common stock were tendered in accordance with the terms of the Plan to satisfy minimum statutory tax withholding requirements associated with the vesting of restricted shares of common stock. |
Vesting Schedule of the Unvested Shares of Restricted Stock Outstanding | The following table sets forth the vesting schedule of all unvested share-based awards outstanding as of March 31, 2020 : Unvested Awards Restricted LTIP Units Performance Units (1) April 1, 2020 - December 31, 2020 17,429 154,422 188,250 2021 84,319 90,031 204,517 2022 68,176 45,740 294,994 2023 48,279 2,558 — 2024 26,052 — — Total 244,255 292,751 687,761 (1) Represents the maximum number of Performance Units that would become earned and vested on December 14, 2020, in the event that the specified maximum total shareholder return (“TSR”) hurdles are achieved over the three-year performance period from December 15, 2017 through December 14, 2020, and the maximum number of Performance Units that would become earned and vested on December 31, 2021 and December 31, 2022, in the event that the specified maximum TSR and FFO per share growth hurdles are achieved over the three-year performance period from January 1, 2019 through December 31, 2021 and the three-year performance period from January 1, 2020 through December 31, 2022. |
Shareholders' Equity and Share-based Payments | The following table sets forth the amounts expensed and capitalized for all share-based awards for the reported periods presented below (in thousands): Three Months Ended March 31, 2020 2019 Expensed share-based compensation (1) $ 3,570 $ 2,579 Capitalized share-based compensation (2) 57 34 Total share-based compensation $ 3,627 $ 2,613 (1) Amounts expensed are included in “General and administrative” and “Property expenses” in the accompanying consolidated statements of operations. (2) For the three months ended March 31, 2020 and 2019, amounts capitalized relate to employees who provide construction services, and are included in “Building and improvements” in the consolidated balance sheets. |
Summary of the Components of Changes in Accumulated Other Comprehensive Loss | The following table summarizes the changes in our AOCI balance for the three months ended March 31, 2020 and 2019 , which consists solely of adjustments related to our cash flow hedges (in thousands): Three Months Ended March 31, 2020 2019 Accumulated other comprehensive (loss) income - beginning balance $ (7,542 ) $ 6,262 Other comprehensive loss before reclassifications (15,398 ) (4,275 ) Amounts reclassified from accumulated other comprehensive loss (income) to interest expense 430 (852 ) Net current period other comprehensive loss (14,968 ) (5,127 ) Less other comprehensive loss attributable to noncontrolling interests 560 126 Other comprehensive loss attributable to common stockholders (14,408 ) (5,001 ) Accumulated other comprehensive (loss) income - ending balance $ (21,950 ) $ 1,261 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except share and per share amounts): Three Months Ended March 31, 2020 2019 Numerator: Net income $ 15,272 $ 10,717 Less: Preferred stock dividends (3,636 ) (2,423 ) Less: Net income attributable to noncontrolling interests (717 ) (201 ) Less: Net income attributable to participating securities (131 ) (114 ) Net income attributable to common stockholders $ 10,788 $ 7,979 Denominator: Weighted average shares of common stock outstanding – basic 114,054,434 98,342,677 Effect of dilutive securities - performance units 259,897 265,109 Weighted average shares of common stock outstanding – diluted 114,314,331 98,607,786 Earnings per share — Basic Net income attributable to common stockholders $ 0.09 $ 0.08 Earnings per share — Diluted Net income attributable to common stockholders $ 0.09 $ 0.08 |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Dividends Declared | On May 4, 2020 , our board of directors declared the following quarterly cash dividends/distributions: Security Amount per Share/Unit Record Date Payment Date Common stock $ 0.215 June 30, 2020 July 15, 2020 OP Units $ 0.215 June 30, 2020 July 15, 2020 5.875% Series A Cumulative Redeemable Preferred Stock $ 0.367188 June 15, 2020 June 30, 2020 5.875% Series B Cumulative Redeemable Preferred Stock $ 0.367188 June 15, 2020 June 30, 2020 5.625% Series C Cumulative Redeemable Preferred Stock $ 0.351563 June 15, 2020 June 30, 2020 4.43937% Cumulative Redeemable Convertible Preferred Units $ 0.505085 June 15, 2020 June 30, 2020 4.00% Cumulative Redeemable Convertible Preferred Units $ 0.45 June 15, 2020 June 30, 2020 |
Organization (Detail)
Organization (Detail) ft² in Millions | Mar. 31, 2020ft²property |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of real estate properties | property | 223 |
Area of real estate property (square feet) | ft² | 27.4 |
Number of real estate properties additionally managed | property | 19 |
Area of real estate property additionally managed | ft² | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Detail) - USD ($) | Jan. 01, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Summary Of Significant Accounting Policies [Line Items] | |||
Interest costs capitalized | $ 882,000 | $ 629,000 | |
Real estate taxes and insurance costs capitalized | $ 300,000 | 200,000 | |
REIT annual taxable income distribution requirement percentage | 90.00% | ||
Adjustment to rental income resulting from lease collectability assessment | $ 400,000 | 100,000 | |
Cumulative effect of adoption of ASC 842 | (222,000) | ||
Income tax provision | 0 | 0 | |
Construction Employees | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Compensation costs capitalized | $ 1,000,000 | $ 700,000 | |
Minimum | Office Leases | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated remaining life | 10 years | ||
Minimum | Site Improvements | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated remaining life | 5 years | ||
Maximum | Office Leases | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated remaining life | 30 years | ||
Maximum | Site Improvements | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated remaining life | 20 years | ||
Measurement Input, Discount Rate | Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Acquired property, measurement input | 5.75% | ||
Measurement Input, Discount Rate | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Acquired property, measurement input | 6.50% | ||
Measurement Input, Cap Rate | Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Acquired property, measurement input | 4.75% | ||
Measurement Input, Cap Rate | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Acquired property, measurement input | 5.50% | ||
Property Average Lease Up Period | Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated average lease-up period | 6 months | ||
Estimate of Fair Value Measurement [Member] | Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Acquired property, measurement input | 3.21% | ||
Estimate of Fair Value Measurement [Member] | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Acquired property, measurement input | 3.75% | ||
Accounting Standards Update 2016-02 | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Cumulative effect of adoption of ASC 842 | $ 200,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 112,432 | $ 78,857 | $ 276,575 | $ 180,601 |
Restricted cash | 46 | 0 | 0 | 0 |
Restricted Cash and Cash Equivalents | $ 112,478 | $ 78,857 | $ 276,575 | $ 180,601 |
Investments in Real Estate - Su
Investments in Real Estate - Summary of Acquired Wholly Owned Industrial Properties (Detail) $ in Thousands | Mar. 05, 2020USD ($)buildingshares | Mar. 31, 2020USD ($)ft²building | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) |
Real Estate [Line Items] | ||||
Noncash or Part Noncash Acquisition, Debt Assumed | $ 45,833 | $ 0 | ||
Payments for Deposits on Real Estate Acquisitions | $ 9,700 | |||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | $ 63,277 | |||
Rentable Square Feet | ft² | 863,484 | |||
Number of Buildings | building | 25 | |||
Acquisition Purchase Price | $ 203,155 | |||
Secured Debt [Member] | ||||
Real Estate [Line Items] | ||||
Noncash or Part Noncash Acquisition, Debt Assumed | 44,700 | |||
Noncontrolling Interests | ||||
Real Estate [Line Items] | ||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 63,277 | |||
Noncontrolling Interests | Operating Partnership | ||||
Real Estate [Line Items] | ||||
Limited Partners' Capital Account, Units Issued | shares | 1,406,170 | |||
Properties Acquired on March 5, 2020 [Member] | ||||
Real Estate [Line Items] | ||||
Purchase price | $ 56,200 | |||
Number of Buildings | building | 10 | |||
Properties Acquired on March 5, 2020 [Member] | Series 2 CPOP Units [Member] | ||||
Real Estate [Line Items] | ||||
Acquisition, preferred units issued (in units) | shares | 906,374 | |||
Preferred Unit, Distribution Rate, Percentage | 4.00% | |||
Properties Acquired on March 5, 2020 [Member] | Noncontrolling Interests | ||||
Real Estate [Line Items] | ||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | $ 63,300 | |||
701-751 Kingshill Place | ||||
Real Estate [Line Items] | ||||
Date of Acquisition | Mar. 5, 2020 | |||
Rentable Square Feet | ft² | 169,069 | |||
Number of Buildings | building | 6 | |||
Acquisition Purchase Price | $ 32,968 | |||
2601-2641 Manhattan Beach Boulevard | ||||
Real Estate [Line Items] | ||||
Date of Acquisition | Mar. 5, 2020 | |||
Rentable Square Feet | ft² | 126,726 | |||
Number of Buildings | building | 6 | |||
Acquisition Purchase Price | $ 38,230 | |||
2410-2420 Santa Fe Avenue | ||||
Real Estate [Line Items] | ||||
Date of Acquisition | Mar. 5, 2020 | |||
Rentable Square Feet | ft² | 112,000 | |||
Number of Buildings | building | 1 | |||
Acquisition Purchase Price | $ 34,700 | |||
11600 Los Nietos Road | ||||
Real Estate [Line Items] | ||||
Date of Acquisition | Mar. 5, 2020 | |||
Rentable Square Feet | ft² | 103,982 | |||
Number of Buildings | building | 1 | |||
Acquisition Purchase Price | $ 16,608 | |||
5160 Richton Street | ||||
Real Estate [Line Items] | ||||
Date of Acquisition | Mar. 5, 2020 | |||
Rentable Square Feet | ft² | 94,976 | |||
Number of Buildings | building | 1 | |||
Acquisition Purchase Price | $ 15,605 | |||
2205 126th Street | ||||
Real Estate [Line Items] | ||||
Date of Acquisition | Mar. 5, 2020 | |||
Rentable Square Feet | ft² | 63,532 | |||
Number of Buildings | building | 1 | |||
Acquisition Purchase Price | $ 17,100 | |||
11832-11954 La Cienega Boulevard | ||||
Real Estate [Line Items] | ||||
Date of Acquisition | Mar. 5, 2020 | |||
Rentable Square Feet | ft² | 63,462 | |||
Number of Buildings | building | 4 | |||
Acquisition Purchase Price | $ 19,150 | |||
7612-7642 Woodwind Drive | ||||
Real Estate [Line Items] | ||||
Date of Acquisition | Mar. 5, 2020 | |||
Rentable Square Feet | ft² | 62,377 | |||
Number of Buildings | building | 3 | |||
Acquisition Purchase Price | $ 13,719 | |||
960-970 Knox Street | ||||
Real Estate [Line Items] | ||||
Date of Acquisition | Mar. 5, 2020 | |||
Rentable Square Feet | ft² | 39,400 | |||
Number of Buildings | building | 1 | |||
Acquisition Purchase Price | $ 9,600 | |||
25781 Atlantic Ocean Drive | ||||
Real Estate [Line Items] | ||||
Date of Acquisition | Mar. 5, 2020 | |||
Rentable Square Feet | ft² | 27,960 | |||
Number of Buildings | building | 1 | |||
Acquisition Purchase Price | $ 5,475 |
Investments in Real Estate - _2
Investments in Real Estate - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) $ in Thousands | Mar. 05, 2020USD ($)loan | Mar. 31, 2020USD ($) |
ASSETS | ||
Land | $ 141,363 | |
Buildings and improvements | 61,853 | |
Tenant improvements | 1,529 | |
Acquired lease intangible assets | 9,196 | |
Other acquired assets | 281 | |
Total assets acquired | 214,222 | |
Liabilities | ||
Acquired lease intangible liabilities | 7,303 | |
Long-term Debt, Fair Value | 45,833 | |
Other assumed liabilities | 861 | |
Total liabilities assumed | 53,997 | |
Net assets acquired | $ 160,225 | |
Intangible Assets [Abstract] | ||
Below-market lease intangibles, weighted average amortization period | 5 years 10 months 24 days | |
In-place lease intangibles | ||
Intangible Assets [Abstract] | ||
In-place lease intangibles | $ 9,100 | |
Weighted average amortization period | 4 years 7 months 6 days | |
Above-market tenant leases | ||
Intangible Assets [Abstract] | ||
Weighted average amortization period | 4 years 8 months 12 days | |
Above-market lease intangibles | $ 100 | |
Properties Acquired on March 5, 2020 [Member] | ||
Liabilities | ||
Long-term Debt, Fair Value | $ 45,800 | |
Intangible Assets [Abstract] | ||
Number Of Mortgage Loans Assumed | loan | 9 |
Intangible Assets - Summary of
Intangible Assets - Summary of Acquired Lease Intangible Assets and Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Acquired lease intangible assets, net | $ 76,138 | $ 73,090 |
Acquired lease intangible liabilities, net | (63,914) | (59,340) |
In-place lease intangibles | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Acquired lease intangible assets, gross | 163,381 | 154,370 |
Accumulated amortization | (93,653) | (87,955) |
Acquired lease intangible assets, net | 69,728 | 66,415 |
Above-market tenant leases | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Acquired lease intangible assets, gross | 14,358 | 14,296 |
Accumulated amortization | (7,948) | (7,621) |
Acquired lease intangible assets, net | 6,410 | 6,675 |
Below-market tenant leases | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Acquired lease intangible liabilities, gross | (89,000) | (81,718) |
Accumulated accretion | 25,086 | 22,378 |
Acquired lease intangible liabilities, net | $ (63,914) | $ (59,340) |
Intangible Assets - Summary o_2
Intangible Assets - Summary of Amortization or Accretion Recorded During the Period Related to Acquired Lease Intangibles (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization of (below) above market lease intangibles, net | $ (2,402) | $ (1,751) |
In-place lease intangibles | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization of in-place lease intangibles | 5,822 | 4,339 |
Net below market tenant leases | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization of (below) above market lease intangibles, net | $ (2,402) | $ (1,751) |
Notes Payable - Summary of Debt
Notes Payable - Summary of Debt (Detail) | Feb. 13, 2020 | May 22, 2018 | Mar. 31, 2020USD ($)propertyextension | Dec. 31, 2019USD ($) | Feb. 14, 2017extension |
Debt Instrument [Line Items] | |||||
Principal amount | $ 905,645,000 | $ 860,958,000 | |||
Unsecured Debt | 800,000,000 | 800,000,000 | |||
Secured Debt | 105,645,000 | 60,958,000 | |||
Less: unamortized discount and deferred loan costs | (1,843,000) | (3,116,000) | |||
Carrying value | 903,802,000 | 857,842,000 | |||
Debt Instrument, Periodic Payment | $ 33,488 | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Extension period | 6 months | ||||
Number Of Additional Extension Periods | extension | 2 | ||||
Revolving Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Commitment fee percentage | 0.15% | ||||
Revolving Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Commitment fee percentage | 0.30% | ||||
Revolving Credit Facility | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 0 | 0 | |||
Debt Instrument, Maturity Date | Feb. 13, 2024 | ||||
$100M Term Loan Facility | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 100,000,000 | 100,000,000 | |||
Debt Instrument, Maturity Date | Feb. 14, 2022 | ||||
$225M Term Loan Facility | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 225,000,000 | 225,000,000 | |||
Debt Instrument, Maturity Date | Jan. 14, 2023 | ||||
$150M Term Loan Facility | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 150,000,000 | 150,000,000 | |||
Debt Instrument, Maturity Date | May 22, 2025 | ||||
$60 Million Term Loan | |||||
Debt Instrument [Line Items] | |||||
Extension period | 24 months | ||||
$60 Million Term Loan | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 58,499,000 | 58,499,000 | |||
Debt Instrument, Maturity Date | Aug. 1, 2023 | ||||
Debt Instrument, Periodic Payment, Principal | $ 65,250 | ||||
Number Of Properties Securing Loan | property | 6 | ||||
Number Of Additional Extension Periods | extension | 1 | ||||
Senior Notes [Member] | $100M Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 100,000,000 | 100,000,000 | |||
Fixed interest rate | 4.29% | ||||
Debt Instrument, Maturity Date | Aug. 6, 2025 | ||||
Senior Notes [Member] | $125M Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 125,000,000 | 125,000,000 | |||
Fixed interest rate | 3.93% | ||||
Debt Instrument, Maturity Date | Jul. 13, 2027 | ||||
Senior Notes [Member] | $25M Series 2019A Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 25,000,000 | 25,000,000 | |||
Fixed interest rate | 3.88% | ||||
Debt Instrument, Maturity Date | Jul. 16, 2029 | ||||
Senior Notes [Member] | $75M Series 2019B Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 75,000,000 | 75,000,000 | |||
Fixed interest rate | 4.03% | ||||
Debt Instrument, Maturity Date | Jul. 16, 2034 | ||||
Line of Credit | Revolving Credit Facility | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line Of Credit Facility, Number Of Extensions | extension | 2 | ||||
701-751 Kingshill Place | Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 7,100,000 | 0 | |||
Fixed interest rate | 3.90% | ||||
Debt Instrument, Maturity Date | Jan. 5, 2026 | ||||
Gilbert/La Palma | Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 2,419,000 | 2,459,000 | |||
Fixed interest rate | 5.125% | ||||
Debt Instrument, Maturity Date | Mar. 1, 2031 | ||||
Debt Instrument, Periodic Payment | $ 24,008 | ||||
2601-2641 Manhattan Beach Boulevard | Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 4,147,000 | 0 | |||
Fixed interest rate | 4.08% | ||||
Debt Instrument, Maturity Date | Apr. 5, 2023 | ||||
Debt Instrument, Periodic Payment | $ 23,138 | ||||
2410-2420 Santa Fe Avenue | Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 10,300,000 | 0 | |||
Fixed interest rate | 3.70% | ||||
Debt Instrument, Maturity Date | Jan. 1, 2028 | ||||
Debt Instrument, Periodic Payment | $ 31,758 | ||||
11600 Los Nietos Road | Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 2,899,000 | 0 | |||
Fixed interest rate | 4.19% | ||||
Debt Instrument, Maturity Date | May 1, 2024 | ||||
Debt Instrument, Periodic Payment | $ 22,637 | ||||
5160 Richton Street | Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 4,471,000 | 0 | |||
Fixed interest rate | 3.79% | ||||
Debt Instrument, Maturity Date | Nov. 15, 2024 | ||||
Debt Instrument, Periodic Payment | $ 23,270 | ||||
2205 126th Street | Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 5,200,000 | 0 | |||
Fixed interest rate | 3.91% | ||||
Debt Instrument, Maturity Date | Dec. 1, 2027 | ||||
11832-11954 La Cienega Boulevard | Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 4,100,000 | 0 | |||
Fixed interest rate | 4.26% | ||||
Debt Instrument, Maturity Date | Jul. 1, 2028 | ||||
Debt Instrument, Periodic Payment | $ 20,194 | ||||
7612-7642 Woodwind Drive | Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 3,959,000 | 0 | |||
Fixed interest rate | 5.24% | ||||
Debt Instrument, Maturity Date | Jan. 5, 2024 | ||||
Debt Instrument, Periodic Payment | $ 24,270 | ||||
960-970 Knox Street | Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 2,551,000 | $ 0 | |||
Fixed interest rate | 5.00% | ||||
Debt Instrument, Maturity Date | Nov. 1, 2023 | ||||
Debt Instrument, Periodic Payment | $ 17,538 | ||||
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.05% | ||||
Fixed interest rate | 2.043% | ||||
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.05% | ||||
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
London Interbank Offered Rate (LIBOR) | $100M Term Loan Facility | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.20% | ||||
Fixed interest rate | 2.964% | ||||
London Interbank Offered Rate (LIBOR) | $100M Term Loan Facility | Term Loan | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.20% | ||||
London Interbank Offered Rate (LIBOR) | $100M Term Loan Facility | Term Loan | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.70% | ||||
London Interbank Offered Rate (LIBOR) | $225M Term Loan Facility | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.20% | ||||
Fixed interest rate | 2.574% | ||||
London Interbank Offered Rate (LIBOR) | $225M Term Loan Facility | Term Loan | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.20% | ||||
London Interbank Offered Rate (LIBOR) | $225M Term Loan Facility | Term Loan | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.70% | ||||
London Interbank Offered Rate (LIBOR) | $150M Term Loan Facility | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Fixed interest rate | 4.263% | ||||
London Interbank Offered Rate (LIBOR) | $150M Term Loan Facility | Term Loan | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
London Interbank Offered Rate (LIBOR) | $150M Term Loan Facility | Term Loan | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.20% | ||||
London Interbank Offered Rate (LIBOR) | $60 Million Term Loan | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.70% | ||||
Fixed interest rate | 2.693% |
Notes Payable - Summary of Futu
Notes Payable - Summary of Future Minimum Debt Payments (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
April 1, 2020 - December 31, 2020 | $ 560 | |
2021 | 1,200 | |
2022 | 101,630 | |
2023 | 289,245 | |
2024 | 10,348 | |
Thereafter | 502,662 | |
Total | $ 905,645 | $ 860,958 |
Notes Payable - Additional Info
Notes Payable - Additional Information (Detail) | Mar. 05, 2020USD ($)propertyloan | Feb. 13, 2020USD ($)extension | Mar. 31, 2020USD ($)property | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |||||
Noncash or Part Noncash Acquisition, Debt Assumed | $ 45,833,000 | $ 0 | |||
Long-term Debt, Fair Value | 45,833,000 | ||||
Debt Instrument, Unamortized Discount (Premium), Net | $ 1,100,000 | ||||
Principal amount | $ 905,645,000 | $ 860,958,000 | |||
$60M Term Loan | |||||
Debt Instrument [Line Items] | |||||
Extension period | 24 months | ||||
Debt service coverage ratio | 110.00% | ||||
Unsecured Revolving Credit Facility, $500 Million [Member] | Minimum | |||||
Debt Instrument [Line Items] | |||||
Commitment fee percentage if pricing structure is converted to be based on an investment-grade rating | 0.125% | ||||
Unsecured Revolving Credit Facility, $500 Million [Member] | Maximum | |||||
Debt Instrument [Line Items] | |||||
Commitment fee percentage if pricing structure is converted to be based on an investment-grade rating | 0.30% | ||||
Unsecured Revolving Credit Facility, $500 Million [Member] | Eurodollar | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Unsecured Revolving Credit Facility, $500 Million [Member] | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.05% | ||||
Basis spread on variable rate if additional investment grade rating attained | 0.00% | ||||
Unsecured Revolving Credit Facility, $500 Million [Member] | Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Basis spread on variable rate if additional investment grade rating attained | 0.45% | ||||
Unsecured Revolving Credit Facility, $500 Million [Member] | Thirty-day LIBOR plus | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.05% | ||||
Basis spread on variable rate if additional investment grade rating attained | 0.725% | ||||
Unsecured Revolving Credit Facility, $500 Million [Member] | Thirty-day LIBOR plus | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Basis spread on variable rate if additional investment grade rating attained | 1.40% | ||||
Unsecured Revolving Credit Facility, $500 Million [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Amended Term Loan Facility, $100 Million [Member] | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.20% | ||||
Basis spread on variable rate if additional investment grade rating attained | 0.00% | ||||
Amended Term Loan Facility, $100 Million [Member] | Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.70% | ||||
Basis spread on variable rate if additional investment grade rating attained | 0.65% | ||||
Amended Term Loan Facility, $100 Million [Member] | Thirty-day LIBOR plus | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.20% | ||||
Basis spread on variable rate if additional investment grade rating attained | 0.85% | ||||
Amended Term Loan Facility, $100 Million [Member] | Thirty-day LIBOR plus | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.70% | ||||
Basis spread on variable rate if additional investment grade rating attained | 1.65% | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Extension period | 6 months | ||||
Revolving Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Commitment fee percentage | 0.15% | ||||
Revolving Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Commitment fee percentage | 0.30% | ||||
Revolving Credit Facility | Thirty-day LIBOR plus | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.05% | ||||
Revolving Credit Facility | Thirty-day LIBOR plus | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.05% | ||||
Revolving Credit Facility | Thirty-day LIBOR plus | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Term Loan | $60M Term Loan | |||||
Debt Instrument [Line Items] | |||||
Number Of Properties Securing Loan | property | 6 | ||||
Principal amount | $ 58,499,000 | $ 58,499,000 | |||
Term Loan | $60M Term Loan | Thirty-day LIBOR plus | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.70% | ||||
Line of Credit | Revolving Credit Facility | Unsecured Revolving Credit Facility, $500 Million [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility maximum future borrowing capacity | $ 500,000,000 | ||||
Line Of Credit Facility, Number Of Extensions | extension | 2 | ||||
Line of Credit | Unsecured Credit Facility | Senior Unsecured Credit Facility, 600 Million [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility maximum future borrowing capacity | $ 600,000,000 | ||||
Debt instrument - contingent additional borrowings | 900,000,000 | ||||
Line of Credit | Term Loan | Amended Term Loan Facility, $100 Million [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility maximum future borrowing capacity | $ 100,000,000 | ||||
Unsecured Credit Facility | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Additional availability | $ 500,000,000 | ||||
$100M Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | 100,000,000 | ||||
$125M senior notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 125,000,000 | ||||
The Credit Facility, $225 Million Term Loan Facility, $150 Million Term Loan Facility, $100 Million Notes, $125 Million Notes, Series 2019A and Series 2019B Notes | |||||
Debt Instrument [Line Items] | |||||
Maximum ratio of total indebtedness to total asset value | 60.00% | ||||
Maximum ratio of recourse debt to total asset | 15.00% | ||||
Minimum tangible net worth required | $ 760,740,750 | ||||
Minimum percentage of equity proceeds to be used in minimum tangible net worth calculation | 75.00% | ||||
Minimum ratio of EBITDA to fixed charges | 1.5 | ||||
Maximum ratio of unsecured debt to the value of the unencumbered asset pool | 60.00% | ||||
Minimum ratio of NOI unsecured interest expense | 1.75 | ||||
Funds from operations percentage | 95.00% | ||||
Credit Facility And Term Loan Facility, 225 and 150 Million | |||||
Debt Instrument [Line Items] | |||||
Maximum ratio of secured debt to total asset value | 45.00% | ||||
Minimum tangible net worth required | $ 2,061,865,500 | ||||
Minimum percentage of equity proceeds to be used in minimum tangible net worth calculation | 75.00% | ||||
Senior Notes, 100 Million, 125 Million, Series 2019A and Series 2019B | |||||
Debt Instrument [Line Items] | |||||
Maximum ratio of secured debt to total asset value | 40.00% | ||||
Secured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Noncash or Part Noncash Acquisition, Debt Assumed | $ 44,700,000 | ||||
Secured Debt [Member] | Minimum | |||||
Debt Instrument [Line Items] | |||||
Fixed interest rate | 3.70% | ||||
Secured Debt [Member] | Maximum | |||||
Debt Instrument [Line Items] | |||||
Fixed interest rate | 5.24% | ||||
Properties Acquired on March 5, 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Number Of Mortgage Loans Assumed | loan | 9 | ||||
Number Of Properties Securing Loan | property | 9 | ||||
Long-term Debt, Fair Value | $ 45,800,000 | ||||
Properties Acquired on March 5, 2020 [Member] | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Maturity Date Range, End | 3 years | ||||
Properties Acquired on March 5, 2020 [Member] | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Maturity Date Range, End | 8 years 3 months 18 days |
Operating Leases - Narrative (D
Operating Leases - Narrative (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Operating Lease Fixed And Variable Lease Payments | $ 75,100 | $ 57,900 | |
Operating Lease, Lease Income, Lease Payments | 62,900 | 48,500 | |
Variable lease payments | 12,200 | 9,300 | |
Right-of-use assets | 4,300 | $ 3,500 | |
Lease liabilities | 4,977 | $ 3,800 | |
Right of use asset obtained in exchange for operating lease liability upon implementation of ASC 842 on January 1, 2019 | 0 | $ 3,262 | |
Operating Lease, Liability, Payments, Leases Not Commenced | $ 1,900 | ||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 5 years | ||
Minimum | Office Leases | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 1 month | ||
Renewal term | 3 years | ||
Maximum | Office Leases | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 5 years | ||
Renewal term | 5 years |
Operating Leases - Future Minim
Operating Leases - Future Minimum Base Rents Under Operating Leases - Rolling Twelve Months (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2021 | $ 247,146 |
2022 | 212,374 |
2023 | 172,010 |
2024 | 132,910 |
2025 | 93,438 |
Thereafter | 298,695 |
Total | $ 1,156,573 |
Operating Leases - Lease Cost (
Operating Leases - Lease Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 305 | $ 260 |
Variable lease cost | 12 | 13 |
Sublease income | 0 | (79) |
Total lease cost | $ 317 | $ 194 |
Operating Leases - Other Inform
Operating Leases - Other Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 180 | $ 239 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 1,014 | $ 6,720 |
Operating Leases - Lease Term a
Operating Leases - Lease Term and Discount Rate (Detail) | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted-average remaining lease term | 4 years 7 months 6 days | 4 years 8 months 12 days |
Weighted-average discount rate | 3.68% | 3.92% |
Operating Leases - Lease Liabil
Operating Leases - Lease Liability Maturities (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
April 1, 2020 - December 31, 2020 | $ 872 | |
2021 | 1,091 | |
2022 | 1,093 | |
2023 | 1,131 | |
2024 | 1,161 | |
Thereafter | 97 | |
Total undiscounted lease payments | 5,445 | |
Less imputed interest | (468) | |
Total lease liabilities | $ 4,977 | $ 3,800 |
Interest Rate Swaps - Summary o
Interest Rate Swaps - Summary of Interest Rate Swap Agreements (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Interest Rate Swap $125M Notional Effective February 14, 2018 | ||
Derivative [Line Items] | ||
Interest rate swap agreement, effective date | Feb. 14, 2018 | |
Interest rate swap agreement, maturity date | Jan. 14, 2022 | |
Interest Strike Rate | 1.349% | |
Current Notional Value | $ 125,000 | $ 125,000 |
Fair Value | $ (2,380) | 489 |
Interest Rate Swap $100M Notional Effective August 14, 2018 | ||
Derivative [Line Items] | ||
Interest rate swap agreement, effective date | Aug. 14, 2018 | |
Interest rate swap agreement, maturity date | Jan. 14, 2022 | |
Interest Strike Rate | 1.406% | |
Current Notional Value | $ 100,000 | 100,000 |
Fair Value | $ (2,006) | 277 |
Interest Rate Swap $100M Notional Effective December 14, 2018 | ||
Derivative [Line Items] | ||
Interest rate swap agreement, effective date | Dec. 14, 2018 | |
Interest rate swap agreement, maturity date | Aug. 14, 2021 | |
Interest Strike Rate | 1.764% | |
Current Notional Value | $ 100,000 | 100,000 |
Fair Value | $ (2,024) | (332) |
Interest Rate Swap $150M Notional Effective July 22, 2019 | ||
Derivative [Line Items] | ||
Interest rate swap agreement, effective date | Jul. 22, 2019 | |
Interest rate swap agreement, maturity date | Nov. 22, 2024 | |
Interest Strike Rate | 2.7625% | |
Current Notional Value | $ 150,000 | 150,000 |
Fair Value | $ (16,280) | $ (8,156) |
Interest Rate Swaps - Impact of
Interest Rate Swaps - Impact of Interest Rate Swaps on Consolidated Statements of Operations - (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2018 | |
Derivative [Line Items] | |||
Total interest expense presented in the Consolidated Statement of Operations in which the effects of cash flow hedges are recorded (line item “Interest expense”) | $ 7,449 | $ 6,471 | |
Increase in interest expense | (7,500) | ||
Interest Rate Swap | |||
Derivative [Line Items] | |||
Total interest expense presented in the Consolidated Statement of Operations in which the effects of cash flow hedges are recorded (line item “Interest expense”) | 7,449 | $ 6,471 | |
Interest Rate Swap | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | |||
Derivative [Line Items] | |||
Amount of loss recognized in AOCI on derivatives | (15,398) | (4,275) | |
Reclassification out of Accumulated Other Comprehensive Income | Interest Rate Swap | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | |||
Derivative [Line Items] | |||
Amount of (loss) gain reclassified from AOCI into earnings under “Interest expense” | $ (430) | $ 852 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis by Level within Fair Value Hierarchy (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Interest rate swap asset | $ 0 | $ 766 |
Interest Rate Swap Liability | (22,690) | (8,488) |
Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Interest rate swap asset | 0 | 766 |
Interest Rate Swap Liability | (22,690) | (8,488) |
Quoted Price in Active Markets for Identical Assets and Liabilities (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Interest rate swap asset | 0 | 0 |
Interest Rate Swap Liability | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Interest rate swap asset | 0 | 766 |
Interest Rate Swap Liability | (22,690) | (8,488) |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Interest rate swap asset | 0 | 0 |
Interest Rate Swap Liability | $ 0 | $ 0 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Estimated Fair Value of Notes Payable (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | $ 45,833 | |
Carrying value | 903,802 | $ 857,842 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | 936,817 | 882,813 |
Estimate of Fair Value Measurement [Member] | Quoted Price in Active Markets for Identical Assets and Liabilities (Level 1) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | 936,817 | 882,813 |
Reported Value Measurement | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying value | $ 903,802 | $ 857,842 |
Related Party Transactions (Det
Related Party Transactions (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Chief Executive Officer | ||
Related Party Transaction [Line Items] | ||
Revenue from management and leasing services | $ 0.1 | $ 0.1 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) | 3 Months Ended | ||
Mar. 31, 2020USD ($)tenant | Dec. 31, 2019USD ($) | Feb. 25, 2014USD ($) | |
Commitments And Contingencies [Line Items] | |||
Estimated remediation costs | $ 1,300,000 | ||
Escrow deposit | 1,400,000 | ||
Holdback Escrow seller funded | 1,300,000 | ||
Holdback Escrow buyer funded | 100,000 | ||
Maximum seller liability remedian costs | $ 1,300,000 | ||
Commitments for tenant improvements and construction work | $ 38,900,000 | ||
Cash, FDIC Insured Amount | $ 250,000 | ||
Customer Concentration Risk | Base Rent | |||
Commitments And Contingencies [Line Items] | |||
Number of major tenants | tenant | 0 | ||
Customer Concentration Risk | Total Rental Revenues | |||
Commitments And Contingencies [Line Items] | |||
Concentration risk, percentage | 5.00% | ||
Accounts Payable and Accrued Liabilities | |||
Commitments And Contingencies [Line Items] | |||
Contingent liability | $ (600,000) | $ (600,000) | |
Other Assets | |||
Commitments And Contingencies [Line Items] | |||
Indemnification asset | $ 600,000 | $ 600,000 |
Equity - Common Stock (Detail)
Equity - Common Stock (Detail) - USD ($) $ / shares in Units, $ in Millions | Jun. 13, 2019 | Mar. 31, 2020 |
Class of Stock [Line Items] | ||
Issuance of common stock (in shares) | 2,206,957 | |
Common stock share price (in dollars per share) | $ 36.62 | |
Gross proceeds from the issuance of common stock | $ 80.8 | |
Net proceeds from issuance of common stock | 79.6 | |
At The Market Equity Offering Program, $550 Million | ||
Class of Stock [Line Items] | ||
Maximum aggregate offering amount | $ 550 | |
Shares available under ATM (in shares) | $ 269.9 |
Equity - Noncontrolling Interes
Equity - Noncontrolling Interests (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Class of Stock [Line Items] | ||
Conversion of units to common stock | $ 0 | $ 0 |
Noncontrolling Interests | ||
Class of Stock [Line Items] | ||
Conversion of units to common stock | $ (6,370) | $ (37) |
Common Stock | ||
Class of Stock [Line Items] | ||
Conversion of units to common stock (in shares) | 254,612 | 4,967 |
Conversion of units to common stock | $ 3 | |
Total Stockholders’ Equity | ||
Class of Stock [Line Items] | ||
Conversion of units to common stock | $ 6,370 | $ 37 |
Partnership Interest | Noncontrolling Interests | Operating Partnership Units | ||
Class of Stock [Line Items] | ||
Operating partnership units outstanding (in shares) | 3,053,396 | |
Partnership Interest | Noncontrolling Interests | Vested LTIP Units | ||
Class of Stock [Line Items] | ||
Operating partnership units outstanding (in shares) | 863,888 | |
Operating Partnership | Partnership Interest | Noncontrolling Interests | ||
Class of Stock [Line Items] | ||
Noncontrolling interest percentage ownership in Operating Partnership | 3.30% |
Equity - Issuance of OP Units a
Equity - Issuance of OP Units and Series 2 CPOP Units in Connection with the Acquisition of the Properties (Details) - USD ($) | Mar. 05, 2020 | Sep. 20, 2019 | Mar. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Acquisition Purchase Price | $ 203,155,000 | |||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance, Preferred | 40,787,000 | |||
Issuance of 4.00% cumulative redeemable convertible preferred units | 63,277,000 | |||
Acquisition, Equity Interests Issued, 30-day Average Closing Price of Common Stock | $ 45 | |||
Preferred Stock, Liquidation Preference, Value | $ 40,800,000 | |||
Partners' Capital Account, Units | 0.7722 | |||
Noncontrolling Interests | ||||
Business Acquisition [Line Items] | ||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance, Preferred | 40,787,000 | |||
Issuance of 4.00% cumulative redeemable convertible preferred units | $ 63,277,000 | |||
Operating Partnership | Noncontrolling Interests | ||||
Business Acquisition [Line Items] | ||||
Limited Partners' Capital Account, Units Issued | 1,406,170 | |||
Properties Acquired on March 5, 2020 [Member] | Noncontrolling Interests | ||||
Business Acquisition [Line Items] | ||||
Issuance of 4.00% cumulative redeemable convertible preferred units | $ 63,300,000 | |||
Series 2 CPOP Units [Member] | Properties Acquired on March 5, 2020 [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition, preferred units issued (in units) | 906,374 | |||
Preferred Stock, Dividend Rate, Percentage | 4.00% | |||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance, Preferred | $ 40,800,000 | |||
Preferred Stock, Liquidation Preference Premium | $ 45 | |||
Series A Preferred Units | ||||
Business Acquisition [Line Items] | ||||
Preferred Stock, Dividend Rate, Percentage | 5.875% | |||
Series C Preferred Stock | ||||
Business Acquisition [Line Items] | ||||
Preferred Stock, Dividend Rate, Percentage | 5.625% | 5.625% | 5.625% | |
Preferred Stock, Liquidation Preference, Value | $ 86,250,000 | $ 86,250,000 |
Equity - 2013 Incentive Award P
Equity - 2013 Incentive Award Plan (Detail) - shares | 3 Months Ended | |
Mar. 31, 2020 | Jun. 11, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested Performance Unit Distribution Sharing Percentage | 10.00% | |
Amended and Restated 2013 Incentive Award Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares that may be issued (in shares) | 1,770,000 | |
Common stock, shares reserved for future issuance | 1,129,009 |
Equity - Schedule of Nonvested
Equity - Schedule of Nonvested Restricted Stock Activity (Detail) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Shares tendered in accordance with terms of plan to satisfy tax withholding (in shares) | 25,797 | 23,090 |
Restricted Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Balance at January 1, 2020 (in shares) | 212,545 | |
Granted (in shares) | 104,101 | |
Forfeited (in shares) | (1,826) | |
Vested (in shares) | (70,565) | |
Balance at March 31, 2020 (in shares) | 244,255 | |
LTIP Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Balance at January 1, 2020 (in shares) | 298,412 | |
Granted (in shares) | 36,292 | |
Forfeited (in shares) | 0 | |
Vested (in shares) | (41,953) | |
Balance at March 31, 2020 (in shares) | 292,751 | |
Performance Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Balance at January 1, 2020 (in shares) | 687,761 | |
Granted (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Vested (in shares) | 0 | |
Balance at March 31, 2020 (in shares) | 687,761 |
Equity - Vesting Schedule of th
Equity - Vesting Schedule of the Nonvested Shares of Restricted Stock Outstanding (Detail) - shares | Jan. 01, 2019 | Dec. 15, 2017 | Dec. 29, 2016 | Mar. 31, 2020 | Dec. 31, 2019 |
Restricted Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested shares (in shares) | 244,255 | 212,545 | |||
Restricted Common Stock | April 1, 2020 - December 31, 2020 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested shares (in shares) | 17,429 | ||||
Restricted Common Stock | 2021 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested shares (in shares) | 84,319 | ||||
Restricted Common Stock | 2022 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested shares (in shares) | 68,176 | ||||
Restricted Common Stock | 2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested shares (in shares) | 48,279 | ||||
Restricted Common Stock | 2024 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested shares (in shares) | 26,052 | ||||
LTIP Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested shares (in shares) | 292,751 | 298,412 | |||
LTIP Units | April 1, 2020 - December 31, 2020 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested shares (in shares) | 154,422 | ||||
LTIP Units | 2021 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested shares (in shares) | 90,031 | ||||
LTIP Units | 2022 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested shares (in shares) | 45,740 | ||||
LTIP Units | 2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested shares (in shares) | 2,558 | ||||
LTIP Units | 2024 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested shares (in shares) | 0 | ||||
Performance Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested shares (in shares) | 687,761 | 687,761 | |||
Performance period | 3 years | ||||
Performance Units | April 1, 2020 - December 31, 2020 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested shares (in shares) | 188,250 | ||||
Performance Units | 2021 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested shares (in shares) | 204,517 | ||||
Performance Units | 2022 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested shares (in shares) | 294,994 | ||||
Performance Units | 2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested shares (in shares) | 0 | ||||
Performance Units | 2024 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested shares (in shares) | 0 | ||||
Executive Officer | Amended 2013 Incentive Award Plan | Performance Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance period | 3 years | 3 years | 3 years |
Equity - Share-based Awards Exp
Equity - Share-based Awards Expensed & Capitalized Amounts (Detail) - Amended 2013 Incentive Award Plan - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expensed share-based compensation | $ 3,570 | $ 2,579 |
Capitalized share-based compensation | 57 | 34 |
Total share-based compensation | 3,627 | $ 2,613 |
Unrecognized compensation expense related to non-vested shares | $ 23,100 | |
Weighted average remaining vesting period | 30 months |
Equity - Summary of the Compone
Equity - Summary of the Components of Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 2,622,449 | $ 1,908,423 |
Other comprehensive loss before reclassifications | (15,398) | (4,275) |
Amounts reclassified from accumulated other comprehensive loss (income) to interest expense | 430 | (852) |
Other comprehensive loss: cash flow hedge adjustment | (14,968) | (5,127) |
Less other comprehensive loss attributable to noncontrolling interests | 560 | 126 |
Other comprehensive loss attributable to common stockholders | (14,408) | (5,001) |
Ending Balance | 2,778,678 | 2,137,836 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | (7,542) | 6,262 |
Other comprehensive loss: cash flow hedge adjustment | (14,408) | (5,001) |
Ending Balance | $ (21,950) | $ 1,261 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||
Net income | $ 15,272 | $ 10,717 |
Less: Preferred stock dividends | (3,636) | (2,423) |
Less: net income attributable to noncontrolling interests | (717) | (201) |
Less: Net income attributable to participating securities | (131) | (114) |
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 10,788 | $ 7,979 |
Denominator: | ||
Weighted average shares of common stock outstanding - basic (in shares) | 114,054,434 | 98,342,677 |
Effect of dilutive securities - performance units (in shares) | 259,897 | 265,109 |
Weighted average shares of common stock outstanding - diluted (in shares) | 114,314,331 | 98,607,786 |
Earnings per share — Basic | ||
Net income attributable to common stockholders - basic (in dollars per share) | $ 0.09 | $ 0.08 |
Earnings per share — Diluted | ||
Net income attributable to common stockholders - diluted (in dollars per share) | $ 0.09 | $ 0.08 |
Earnings Per Share - TSR Perfor
Earnings Per Share - TSR Performance Percentile (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Performance Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance period | 3 years |
Subsequent Events (Detail)
Subsequent Events (Detail) $ / shares in Units, $ in Thousands | May 04, 2020$ / shares | Sep. 20, 2019 | Mar. 31, 2020USD ($)ft²building$ / shares | Mar. 31, 2019$ / shares | Dec. 31, 2019 | Apr. 03, 2020USD ($)ft²building | Apr. 01, 2020USD ($) |
Subsequent Event [Line Items] | |||||||
Acquisition Purchase Price | $ | $ 203,155 | ||||||
Number of Buildings | building | 25 | ||||||
Rentable Square Feet | ft² | 863,484 | ||||||
Dividends declared per common share (in dollars per share) | $ 0.215 | $ 0.185 | |||||
Series A Preferred Stock | |||||||
Subsequent Event [Line Items] | |||||||
Dividends per share, declared (in dollars per share) | $ 0.367188 | 0.367188 | |||||
Preferred Stock, Dividend Rate, Percentage | 5.875% | 5.875% | |||||
Series B Preferred Stock | |||||||
Subsequent Event [Line Items] | |||||||
Dividends per share, declared (in dollars per share) | $ 0.367188 | $ 0.367188 | |||||
Preferred Stock, Dividend Rate, Percentage | 5.875% | 5.875% | |||||
Series C Preferred Stock | |||||||
Subsequent Event [Line Items] | |||||||
Dividends per share, declared (in dollars per share) | $ 0.351563 | ||||||
Preferred Stock, Dividend Rate, Percentage | 5.625% | 5.625% | 5.625% | ||||
Series 2 CPOP Units [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Preferred Stock, Dividend Rate, Percentage | 4.00% | ||||||
Subsequent Event | Common Stock | |||||||
Subsequent Event [Line Items] | |||||||
Dividends declared per common share (in dollars per share) | $ 0.215 | ||||||
Dividends Payable, Date of Record | Jun. 30, 2020 | ||||||
Dividends Payable, Date to be Paid | Jul. 15, 2020 | ||||||
Subsequent Event | Operating Partnership Units | |||||||
Subsequent Event [Line Items] | |||||||
Distributions declared (in dollars per share) | $ 0.215 | ||||||
Dividends Payable, Date of Record | Jun. 30, 2020 | ||||||
Distribution Made to Limited Partner, Distribution Date | Jul. 15, 2020 | ||||||
Subsequent Event | Series A Preferred Stock | |||||||
Subsequent Event [Line Items] | |||||||
Dividends per share, declared (in dollars per share) | $ 0.367188 | ||||||
Dividends Payable, Date of Record | Jun. 15, 2020 | ||||||
Dividends Payable, Date to be Paid | Jun. 30, 2020 | ||||||
Subsequent Event | Series B Preferred Stock | |||||||
Subsequent Event [Line Items] | |||||||
Dividends per share, declared (in dollars per share) | $ 0.367188 | ||||||
Dividends Payable, Date of Record | Jun. 15, 2020 | ||||||
Dividends Payable, Date to be Paid | Jun. 30, 2020 | ||||||
Subsequent Event | Series C Preferred Stock | |||||||
Subsequent Event [Line Items] | |||||||
Dividends per share, declared (in dollars per share) | $ 0.351563 | ||||||
Dividends Payable, Date of Record | Jun. 15, 2020 | ||||||
Dividends Payable, Date to be Paid | Jun. 30, 2020 | ||||||
Subsequent Event | Series 1 CPOP Units | Series 1 CPOP Units | |||||||
Subsequent Event [Line Items] | |||||||
Distributions declared (in dollars per share) | $ 0.505085 | ||||||
Dividends Payable, Date of Record | Jun. 15, 2020 | ||||||
Distribution Made to Limited Partner, Distribution Date | Jun. 30, 2020 | ||||||
Subsequent Event | Series 2 CPOP Units [Member] | Series 2 CPOP Units [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Distributions declared (in dollars per share) | $ 0.45 | ||||||
Dividends Payable, Date of Record | Jun. 15, 2020 | ||||||
Distribution Made to Limited Partner, Distribution Date | Jun. 30, 2020 | ||||||
Brady Way | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Acquisition Purchase Price | $ | $ 900 | ||||||
North Vernon Avenue | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Acquisition Purchase Price | $ | $ 15,500 | ||||||
Number of Buildings | building | 1 | ||||||
Rentable Square Feet | ft² | 71,692 |