Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 02, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CIO | |
Entity Registrant Name | City Office REIT, Inc. | |
Entity Central Index Key | 1,593,222 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 30,257,448 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Real estate properties | ||
Land | $ 126,263 | $ 115,634 |
Building and improvement | 457,684 | 423,707 |
Tenant improvement | 52,399 | 49,813 |
Furniture, fixtures and equipment | 228 | 222 |
Real estate properties, gross | 636,574 | 589,376 |
Accumulated depreciation | (44,782) | (39,052) |
Real estate properties, net | 591,792 | 550,324 |
Cash and cash equivalents | 50,632 | 13,703 |
Restricted cash | 22,570 | 15,948 |
Rents receivable, net | 20,205 | 17,257 |
Deferred leasing costs, net | 6,487 | 5,422 |
Acquired lease intangibles assets, net | 54,707 | 56,214 |
Prepaid expenses and other assets | 1,641 | 2,626 |
Total Assets | 748,034 | 661,494 |
Liabilities: | ||
Debt | 400,764 | 370,057 |
Accounts payable and accrued liabilities | 12,641 | 12,976 |
Deferred rent | 4,125 | 5,558 |
Tenant rent deposits | 2,725 | 2,621 |
Acquired lease intangibles liability, net | 6,157 | 4,302 |
Dividend distributions payable | 8,966 | 7,521 |
Earn-out liability | 0 | 2,400 |
Total Liabilities | 435,378 | 405,435 |
Commitments and Contingencies (Note 9) | ||
Equity: | ||
6.625% Series A Preferred stock, $0.01 par value per share, 4,600,000 shares authorized, 4,480,000 issued and outstanding | 112,000 | 112,000 |
Common stock, $0.01 par value, 100,000,000 shares authorized, and 30,257,448 and 24,382,226 shares issued and outstanding | 303 | 244 |
Additional paid-in capital | 264,433 | 195,566 |
Accumulated deficit | (65,877) | (53,608) |
Total Stockholders' Equity | 310,859 | 254,202 |
Operating Partnership unitholders' non-controlling interests | 108 | |
Non-controlling interests in properties | 1,797 | 1,749 |
Total Equity | 312,656 | 256,059 |
Total Liabilities and Equity | $ 748,034 | $ 661,494 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Statement of Financial Position [Abstract] | ||
Preferred stock, Dividend rate percentage | 6.625% | 6.625% |
Preferred stock, par value per share | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 4,600,000 | 4,600,000 |
Preferred stock, shares issued | 4,480,000 | 4,480,000 |
Preferred stock, shares outstanding | 4,480,000 | 4,480,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 30,257,448 | 24,382,226 |
Common stock, shares outstanding | 30,257,448 | 24,382,226 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues: | ||
Rental income | $ 22,314 | $ 14,072 |
Expense reimbursement | 2,294 | 1,782 |
Other | 791 | 420 |
Total Revenues | 25,399 | 16,274 |
Operating Expenses: | ||
Property operating expenses | 9,612 | 6,157 |
General and administrative | 2,193 | 1,241 |
Base management fee | 109 | |
External advisor acquisition | 7,044 | |
Depreciation and amortization | 10,498 | 6,551 |
Total Operating Expenses | 22,303 | 21,102 |
Operating income/(loss) | 3,096 | (4,828) |
Interest Expense: | ||
Contractual interest expense | (4,072) | (3,740) |
Amortization of deferred financing costs | (323) | (221) |
Interest expense, net | (4,395) | (3,961) |
Net loss | (1,299) | (8,789) |
Less: Net income attributable to noncontrolling interests in properties | (168) | (69) |
Less: Net loss attributable to Operating Partnership unitholders' noncontrolling interests | 1,739 | |
Net loss attributable to the Company | (1,467) | (7,119) |
Preferred stock distributions | (1,846) | |
Net loss attributable to common stockholders | $ (3,313) | $ (7,119) |
Net loss per common share and unit: | ||
Basic and Diluted | $ (0.11) | $ (0.56) |
Weighted average common shares outstanding: | ||
Basic and Diluted | 29,511 | 12,764 |
Dividend distributions declared per common share and unit | $ 0.235 | $ 0.235 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Changes in Equity - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Parent [Member] | Operating Partnership Unitholders' Non-controlling Interests [Member] | Non-controlling Interests in Properties [Member] |
Beginning balance at Dec. 31, 2015 | $ 73,720 | $ 125 | $ 95,318 | $ (29,598) | $ 65,845 | $ 8,550 | $ (675) | |
Beginning balance, shares at Dec. 31, 2015 | 12,518,000 | |||||||
Conversion of OP units to shares, values | $ 32 | 10,754 | 10,786 | (10,786) | ||||
Conversion of OP units to shares, shares | 3,206,000 | |||||||
Restricted stock award grants and vesting, values | 2,436 | $ 2 | 2,434 | 2,436 | ||||
Restricted stock award grants and vesting, shares | 164,000 | |||||||
Internalization payment in shares, values | 3,464 | $ 3 | 3,461 | 3,464 | ||||
Internalization payment in shares, shares | 297,000 | |||||||
Earn out payment in shares, values | 3,778 | $ 2 | 767 | 769 | 3,009 | |||
Earn out payment in shares, shares | 147,000 | |||||||
Net proceeds from sale of common stock, values | 86,785 | $ 80 | 86,705 | 86,785 | ||||
Net proceeds from sale of common stock, shares | 8,050,000 | |||||||
Net proceeds from sale of preferred stock, values | 108,127 | $ 112,000 | (3,873) | 108,127 | ||||
Net proceeds from sale of preferred stock, shares | 4,480,000 | |||||||
Common stock dividend distributions declared | (22,916) | (21,386) | (21,386) | (1,530) | ||||
Preferred stock dividend distributions declared | (1,781) | (1,781) | (1,781) | |||||
Contributions | 2,525 | 2,525 | ||||||
Distributions | (455) | (455) | ||||||
Net (loss)/income | 376 | (843) | (843) | 865 | 354 | |||
Ending balance at Dec. 31, 2016 | $ 256,059 | $ 112,000 | $ 244 | 195,566 | (53,608) | 254,202 | 108 | 1,749 |
Ending balance, shares at Dec. 31, 2016 | 24,382,226 | 4,480,000 | 24,382,000 | |||||
Conversion of OP units to shares, values | 108 | 108 | $ (108) | |||||
Conversion of OP units to shares, shares | 40,000 | |||||||
Restricted stock award grants and vesting, values | $ 827 | $ 1 | 826 | 827 | ||||
Restricted stock award grants and vesting, shares | 85,000 | |||||||
Net proceeds from sale of common stock, values | 67,991 | $ 58 | 67,933 | 67,991 | ||||
Net proceeds from sale of common stock, shares | 5,750,000 | |||||||
Common stock dividend distributions declared | (8,462) | (8,462) | (8,462) | |||||
Preferred stock dividend distributions declared | (2,340) | (2,340) | (2,340) | |||||
Distributions | (120) | (120) | ||||||
Net (loss)/income | (1,299) | (1,467) | (1,467) | 168 | ||||
Ending balance at Mar. 31, 2017 | $ 312,656 | $ 112,000 | $ 303 | $ 264,433 | $ (65,877) | $ 310,859 | $ 1,797 | |
Ending balance, shares at Mar. 31, 2017 | 30,257,448 | 4,480,000 | 30,257,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (1,299) | $ (8,789) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 10,498 | 6,551 |
Amortization of deferred financing costs | 323 | 221 |
Amortization of above/below market leases | (3) | 61 |
Increase in straight-line rent | (777) | (1,144) |
Non-cash stock compensation | 827 | 542 |
Earn-out termination payment | (2,400) | |
Internalization shares issued | 3,464 | |
Changes in non-cash working capital: | ||
Rents receivable, net | (2,169) | (278) |
Prepaid expenses and other assets | 988 | (17) |
Accounts payable and accrued liabilities | (1,528) | 4,437 |
Deferred rent | (1,468) | (569) |
Tenant rent deposits | 33 | (146) |
Net Cash Provided By Operating Activities | 2,959 | 4,333 |
Cash Flows to Investing Activities: | ||
Additions to real estate properties | (1,794) | (4,359) |
Acquisition of real estate | (46,035) | |
Deferred leasing costs | (474) | (159) |
Net Cash Used In Investing Activities | (48,303) | (4,518) |
Cash Flows from Financing Activities: | ||
Proceeds from sale of common stock | 67,991 | |
Debt issuance and extinguishment costs | (326) | (104) |
Proceeds from mortgage loan payable | 84,100 | |
Proceeds from Secured Credit Facility | 4,000 | |
Repayment of mortgage loans payable | (892) | (280) |
Repayment of Secured Credit Facility | (52,500) | |
Distributions to non-controlling interests in properties | (120) | (115) |
Dividend distributions paid to stockholders and Operating Partnership unitholders | (9,358) | (3,663) |
Change in restricted cash | (6,622) | 407 |
Net Cash Provided By Financing Activities | 82,273 | 245 |
Net Increase in Cash and Cash Equivalents | 36,929 | 60 |
Cash and Cash Equivalents, Beginning of Period | 13,703 | 8,138 |
Cash and Cash Equivalents, End of Period | 50,632 | 8,198 |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid for interest | 4,114 | 3,732 |
Earn-out payment in common stock | $ 3,778 | |
Purchases of additions in real estate properties included in accounts payable | 260 | |
Purchases of deferred leasing costs included in accounts payable | $ 912 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business City Office REIT, Inc. (the “Company”) was organized in the state of Maryland on November 26, 2013. On April 21, 2014, the Company completed its initial public offering (“IPO”) of shares of the Company’s common stock. The Company contributed the net proceeds of the IPO to City Office REIT Operating Partnership, L.P., a Maryland limited partnership (the “Operating Partnership”), in exchange for common units of limited partnership interest in the Operating Partnership (“common units”). Both the Company and the Operating Partnership commenced operations upon completion of the IPO and certain related formation transactions (the “Formation Transactions”). The Company’s interest in the Operating Partnership entitles the Company to share in distributions from, and allocations of profits and losses of, the Operating Partnership in proportion to the Company’s percentage ownership of common units. As the sole general partner of the Operating Partnership, the Company has the exclusive power under the Operating Partnership’s partnership agreement to manage and conduct the Operating Partnership’s business, subject to limited approval and voting rights of the limited partners. The Company has elected to be taxed and will continue to operate in a manner that will allow it to qualify as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”). Subject to qualification as a REIT, the Company will be permitted to deduct dividend distributions paid to its stockholders, eliminating the U.S. federal taxation of income represented by such distributions at the Company level. REITs are subject to a number of organizational and operational requirements. If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to U.S. federal and state income tax on its taxable income at regular corporate tax rates and any applicable alternative minimum tax. On February 1, 2016, the Company closed on the previously announced management internalization (“the Internalization”). The Company had previously entered into a Stock Purchase Agreement (“Stock Purchase Agreement”) with certain stockholders of the Company’s external advisor, City Office Real Estate Management Inc. (the “Advisor”) pursuant to which the Company acquired all of the outstanding stock of the Advisor. Pursuant to this Stock Purchase Agreement, at closing, the Company issued 297,321 shares of its common stock with a fair market value of $3.5 million to the stockholders of the Advisor (the “Sellers”), which included the Company’s three executive officers and Samuel Belzberg, a director of the Company. In addition, the Company was required to make cash payments to the Sellers of up to $3.5 million if the Company’s fully diluted market capitalization reached the following thresholds prior to December 31, 2016: $1 million upon the Company achieving a $200 million fully diluted market capitalization, an additional $1 million upon the Company achieving a $225 million fully diluted market capitalization and an additional $1.5 million upon the Company achieving a $250 million fully diluted market capitalization. The Company paid an additional $3.5 million in the first quarter of 2016 representing the payments to be made to the Sellers upon reaching these fully diluted market capitalizations, which, together with the initial payment and professional fees, resulted in a total cost of $7.0 million in the year ended December 31, 2016. The amount was recorded as an expense in the accompanying condensed consolidated statements of operations as it represented the cost of terminating the relationship. In connection with the closing of the Internalization, the Company entered into an amendment to the Advisory Agreement between the Company, the Operating Partnership and the Company’s former external Advisor (“Advisory Agreement”) that eliminates the payment of acquisition fees by the Company to the Advisor. In addition, each of the Company’s executive officers entered into an employment agreement with the Company and became employees of the Company, and, at the same time, approximately eleven additional former employees of the Advisor and its affiliates became employees of the Company. In connection with the closing of the transactions under the Stock Purchase Agreement, a subsidiary of the Company entered into an Administrative Services Agreement (the “Administrative Services Agreement”) with Second City Capital II Corporation and Second City Real Estate II Corporation, related entities controlled by Mr. Belzberg. The Administrative Services Agreement has a three year term and pursuant to the agreement, the Company will provide various administrative services and support to the related entities managing the Second City funds. The Company’s subsidiary will receive annual payments for these services under the Administrative Services Agreement as follows: first 12 months—$1.5 million, second 12 months—$1.15 million and third 12 months—$0.625 million, for a total of $3.275 million over the three-year term. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Preparation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with Securities and Exchange Commission rules and regulations and generally accepted accounting principles in the United States of America (“US GAAP”) and in the opinion of management contain all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K New Accounting Pronouncements Adopted in the Current Year In January of 2017, the FASB issued ASU 2017-01, To be Adopted in Future Years In May 2014, the FASB issued ASU No. 2014-09, In February 2016, the FASB issued ASU 2016-02, 2016-02 In March 2016, the FASB issued ASU 2016-09, 2016-09), 2016-09 In August of 2016, the FASB issued ASU 2016-15, In November of 2016, the FASB issued ASU 2016-18, |
Real Estate Investments
Real Estate Investments | 3 Months Ended |
Mar. 31, 2017 | |
Real Estate [Abstract] | |
Real Estate Investments | 3. Real Estate Investments Acquisitions During the three months March 31, 2017 and 2016 the Company acquired the following property: Property Date Acquired Percentage Owned 2525 McKinnon January 2017 100% The above acquisition has been accounted for as an asset acquisition. The following table summarizes the Company’s allocations of the purchase price of assets acquired and liabilities assumed during the three months ended March 31, 2017 (in thousands): 2525 Land $ 10,629 Buildings and improvements 33,357 Tenant improvements 1,158 Acquired intangible assets 3,267 Accounts payable and other liabilities (190) Lease intangible liabilities (2,186) Total consideration $ 46,035 Consideration paid on acquisitions was in the form of cash and debt. Sale of Real Estate Property On September 21, 2016, we entered into a Purchase and Sale agreement to sell the Washington Group Plaza property. The transaction is anticipated to close in April 2018, subject to customary closing conditions. Either party has the right to accelerate closing by providing at least 120 days’ advance notice. Subsequent to quarter end, on May 2, 2017, we closed on the sale of the 1400 and 1600 buildings at the AmberGlen property for a gross sales price of $18.9 million. Subsequent to quarter-end, March 31, 2017 AmberGlen Washington Total Real estate properties, net $ 4,342 $ 34,536 $ 38,878 Deferred leasing costs, net 229 1,246 1,475 Acquired lease intangibles asset, net — 816 816 Rents receivable, prepaid expenses and other assets 409 1,621 2,030 Accounts payable, accrued expenses, deferred rent and tenant rent deposits (406) (2,011) (2,417) $ 4,574 $ 36,208 $ 40,782 |
Lease Intangibles
Lease Intangibles | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Lease Intangibles | 4. Lease Intangibles Lease intangibles and the value of assumed lease obligations as of March 31, 2017 and December 31, 2016 were comprised as follows (in thousands): March 31, 2017 Above In Place Leasing Total Below Below Total Cost $ 7,796 $ 61,852 $ 26,400 $ 96,048 $ (7,773) $ (138) $ (7,911) Accumulated amortization (4,108) (27,711) (9,522) (41,341) 1,725 29 1,754 $ 3,688 $ 34,141 $ 16,878 $ 54,707 $ (6,048) $ (109) $ (6,157) December 31, 2016 Above In Place Leasing Total Below Below Total Cost $ 7,796 $ 59,370 $ 25,693 92,859 (5,587) $ (138) (5,725) Accumulated amortization (3,779) (24,384) (8,482) (36,645) 1,395 28 1,423 $ 4,017 $ 34,986 17,211 $ 56,214 $ (4,192) $ (110) $ (4,302) The estimated aggregate amortization expense for lease intangibles for the five succeeding years and in the aggregate are as follows (in thousands): 2017 $ 11,543 2018 11,118 2019 9,463 2020 7,834 2021 5,569 Thereafter 3,023 $ 48,550 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt The following table summarizes the secured indebtedness as of March 31, 2017 and December 31, 2016 (in thousands): Property March 31, December 31, Interest Rate as 2017 Maturity Secured Credit Facility (1) $ - $ 52,500 LIBOR +2.25% (2) June 2018 Washington Group Plaza (3) 32,817 32,995 3.85 July 2018 AmberGlen Mortgage Loan (4) 24,165 24,280 4.38 May 2019 Midland Life Insurance (5) 89,744 90,124 4.34 May 2021 Lake Vista Pointe (3) 18,460 18,460 4.28 August 2024 FRP Ingenuity Drive (3)(6) 17,000 17,000 4.44 December 2024 Plaza 25 (3)(7) 17,000 17,000 4.10 July 2025 190 Office Center (7) 41,250 41,250 4.79 October 2025 Intellicenter (7) 33,563 33,563 4.65 October 2025 FRP Collection (7) 30,599 30,737 3.85 September 2023 Carillon Point (7) 16,919 17,000 3.50 October 2023 5090 N 40 th 22,000 - 3.92 January 2027 SanTan (7) 35,100 - 4.56 March 2027 2525 McKinnon 27,000 - 4.24 April 2027 Total Principal 405,617 374,909 Deferred financing costs, net (4,853) (4,852) Total $ 400,764 $ 370,057 All interest rates are fixed interest rates with the exception of the secured credit facility (“Secured Credit Facility”) as explained in footnote 1 below. (1) At March 31, 2017 the Secured Credit Facility had $100 million authorized and was undrawn. In addition, the Secured Credit Facility has an accordion feature that will permit the Company to borrow up to $150 million, subject to additional collateral availability and lender approval. The Credit Agreement has a maturity date of June 26, 2018, which may be extended to June 26, 2019 at the Company’s option upon meeting certain conditions. The Secured Credit Facility requires the Company to maintain a fixed charge coverage ratio of no less than 1.60x. At March 31, 2017, the Secured Credit Facility was cross-collateralized by Central Fairwinds, Logan Tower, Superior Pointe and Park Tower. During 2016 the authorized borrowing capacity was increased from $75 million to $100 million. (2) As of March 31, 2017, the one month LIBOR rate was 0.98%. (3) Interest on mortgage loan is payable monthly plus principal based on 360 months of amortization. (4) The Company is required to maintain a minimum net worth of $25 million and a minimum liquidity of $2 million. On May 2, 2017, in conjunction with the sale of the 1400 and 1600 buildings at the AmberGlen property, the Company repaid the outstanding debt secured on the property of $24.1 million plus closing costs and subsequently closed on a $20 million loan secured by a first mortgage lien on the remaining buildings. The loan matures in May 2027. Interest is payable at a fixed rate of 3.69% per annum. (5) The mortgage loan is cross-collateralized by DTC Crossroads, Cherry Creek and City Center. Interest on mortgage loan is payable monthly plus principal based on 360 months of amortization. The loan bears a fixed interest rate of 4.34% and matures on May 6, 2021. Upon the sale of Corporate Parkway on June 15, 2016, $4 million of the loan was paid down and DTC Crossroads was substituted in as collateral property. (6) The Company is required to maintain a minimum net worth of $17 million, minimum liquidity of $1.7 million and a debt service coverage ratio of no less than 1.15x. (7) The Company is required to maintain a debt service coverage ratio of no less than 1.45x, 1.15x, 1.20x, 1.40x, 1.35x and 1.20x respectively for each of Plaza 25, 190 Office Center, Intellicenter, FRP Collection, Carillon Point and SanTan. The scheduled principal repayments of debt as of March 31, 2017 are as follows (in thousands): 2017 $ 2,961 2018 36,421 2019 28,087 2020 5,791 2021 87,802 Thereafter 244,555 Total $ 405,617 On January 4, 2017, the Company closed on a $22.0 million loan secured by a first mortgage lien on the 5090 N 40th St property in Phoenix, Arizona. The loan matures in January 2027. Interest is payable at a fixed rate of 3.92% per annum. On February 9, 2017, the Company closed on a $35.1 million loan secured by a first mortgage lien on the SanTan property in Phoenix, Arizona. The loan matures in March 2027. Interest is payable at a fixed rate of 4.56% per annum. On March 10, 2017, the Company closed on a $27.0 million loan secured by a first mortgage lien on the 2525 McKinnon property in Dallas, Texas. The loan matures in April 2027. Interest is payable at a fixed rate of 4.24% per annum. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 6. Fair Value of Financial Instruments Fair value measurements are based on assumptions that market participants would use in pricing an asset or a liability. The hierarchy for inputs used in measuring fair value is as follows: Level 1 Inputs – quoted prices in active markets for identical assets or liabilities Level 2 Inputs – observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 Inputs – unobservable inputs As of March 31, 2017 and December 31, 2016, the Company did not have any hedges or derivatives. The estimated fair value of the earn-out earn-out Cash Equivalents, Restricted Cash, Accounts Receivable, Accounts Payable and Accrued Liabilities The Company estimates that the fair value approximates carrying value due to the relatively short-term nature of these instruments. Fair Value of Financial Instruments Not Carried at Fair Value With the exception of fixed rate mortgage loans payable, the carrying amounts of the Company’s financial instruments approximate their fair value. The Company determines the fair value of its fixed rate mortgage loan payable based on a discounted cash flow analysis using a discount rate that approximates the current borrowing rates for instruments of similar maturities. Based on this, the Company has determined that the fair value of these instruments was $407.9 million and $323.7 million as of March 31, 2017 and December 31, 2016, respectively. Although the Company has determined the majority of the inputs used to value its fixed rate debt fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its fixed rate debt utilize Level 3 inputs, such as estimates of current credit spreads. Accordingly, mortgage loans payable have been classified as Level 3 fair value measurements. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 7. Related Party Transactions Equity Transactions On February 1, 2016, the Company closed on the previously announced Internalization. The Company had previously entered into a Stock Purchase Agreement with certain stockholders of the Company’s Advisor pursuant to which the Company acquired all of the outstanding stock of the Advisor (see Note 1). Property Management Fees Five of the Company’s properties (City Center, Central Fairwinds, AmberGlen, FRP Collection and Park Tower) have engaged related parties to perform asset and property management services for a fee ranging from 2.0% to 3.5% of gross revenue. Management fees paid to the minority partners of these five properties totaled $0.2 million and $0.1 million for the three months ended March 31, 2017 and 2016, respectively. Earn-Out On February 15, 2017, the Company entered into a Termination and Mutual Release Agreement with Second City that terminated our obligation to make any future earn-out |
Future Minimum Rent Schedule
Future Minimum Rent Schedule | 3 Months Ended |
Mar. 31, 2017 | |
Leases [Abstract] | |
Future Minimum Rent Schedule | 8. Future Minimum Rent Schedule Future minimum lease payments to be received as of March 31, 2017 under noncancellable operating leases for the next five years and thereafter are as follows (in thousands): 2017 59,552 2018 73,016 2019 63,740 2020 58,026 2021 50,745 Thereafter 121,366 $ 426,445 The above minimum lease payments to be received do not include reimbursements from tenants for certain operating expenses and real estate taxes and do not include early termination payments provided for in certain leases. Thirteen state government tenants currently have the exercisable right to terminate their leases if the applicable state legislation does not appropriate rent in its annual budget. The Company has determined that the occurrence of any government tenant not being appropriated the rent in the applicable annual budget is a remote contingency and accordingly recognizes lease revenue on a straight-line basis over the respective lease term. These tenants represent approximately 14.5% of the Company’s total future minimum lease payments as of March 31, 2017. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Other The Company is obligated under certain tenant leases to fund tenant improvements and the expansion of the underlying leased properties. Under various federal, state and local laws, ordinances and regulations relating to the protection of the environment, a current or previous owner or operator of real estate may be liable for the cost of removal or remediation of certain hazardous or toxic substances disposed, stored, generated, released, manufactured or discharged from, on, at, under, or in a property. As such, the Company may be potentially liable for costs associated with any potential environmental remediation at any of its formerly or currently owned properties. The Company believes that it is in compliance in all material respects with all federal, state and local ordinances and regulations regarding hazardous or toxic substances. Management is not aware of any environmental liability that it believes would have a material adverse impact on the Company’s financial position or results of operations. Management is unaware of any instances in which the Company would incur significant environmental costs if any or all properties were sold, disposed of or abandoned. However, there can be no assurance that any such non-compliance, The Company is involved from time to time in lawsuits and other disputes which arise in the ordinary course of business. As of March 31, 2017, management believes that these matters will not have a material adverse effect, individually or in the aggregate, on the Company’s financial position or results of operations. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity On February 1, 2016, the Company closed on the Internalization. Upon closing of the Internalization, the Company and certain of its subsidiaries acquired all of the outstanding stock of the Advisor. Pursuant to the Stock Purchase Agreement, at closing, the Company issued 297,321 shares of its common stock to the sellers. In addition, the Company recorded $3.5 million in the first quarter of 2016 in payments to the sellers upon reaching certain fully diluted market capitalization thresholds. On January 13, 2017, the Company completed a public offering pursuant to which the Company sold 5,750,000 shares of its common stock to the public at a price of $12.40 per share, inclusive of the overallotment option. The Company raised $71.3 million in gross proceeds, resulting in net proceeds to us of approximately $68.0 million after deducting $3.3 million in underwriting discounts and other expenses related to the offering. Non-controlling Non-controlling Non-controlling one-for-one During the three months ended March 31, 2017, 40,000 common units were redeemed for shares of common stock. Common Stock and Common Unit Distributions On March 21, 2017, the Company’s board of directors approved and the Company declared a cash dividend distribution of $0.235 per share for the quarterly period ended March 31, 2017. The dividend was paid on April 25, 2017 to common stockholders and common unitholders of record as of April 11, 2017 for an aggregate of $7.1 million. Preferred Stock Distributions During the quarter ended March 31, 2017, the Company’s board of directors approved and the Company declared a cash dividend of 0.4140625 per share for an aggregate amount of $1.8 million. The dividend was paid subsequent to quarter end on April 25, 2017. Restricted Stock Units The Company has an equity incentive plan (“Equity Incentive Plan”) for certain officers, directors, advisors and personnel, and, with approval of the board of directors, for subsidiaries and their respective affiliates. The Equity Incentive Plan provides for grants of restricted common stock, restricted stock units, phantom shares, stock options, dividend equivalent rights and other equity-based awards (including LTIP Units), subject to the total number of shares available for issuance under the plan. The Equity Incentive Plan is administered by the compensation committee of the board of directors (the “plan administrator”). The maximum number of shares of common stock that may be issued under the Equity Incentive Plan is 1,263,580 shares. To the extent an award granted under the Equity Incentive Plan expires or terminates, the shares subject to any portion of the award that expires or terminates without having been exercised or paid, as the case may be, will again become available for the issuance of additional awards. During the three months ended March 31, 2017, 115,478 restricted stock units (“RSUs”) were granted to directors and non-executive A RSU award represents the right to receive shares of the Company’s common stock in the future, after the applicable vesting criteria, determined by the plan administrator, has been satisfied. The holder of an award of RSU has no rights as a stockholder until shares of common stock are issued in settlement of vested RSUs. The plan administrator may provide for a grant of dividend equivalent rights in connection with the grant of RSU; provided, however, that if the RSUs do not vest solely upon satisfaction of continued employment or service, any payment in respect to the related dividend equivalent rights will be held by the Company and paid when, and only to the extent that, the related RSU vest. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Preparation and Summary of Significant Accounting Policies | Basis of Preparation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with Securities and Exchange Commission rules and regulations and generally accepted accounting principles in the United States of America (“US GAAP”) and in the opinion of management contain all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K |
New Accounting Pronouncements | New Accounting Pronouncements Adopted in the Current Year In January of 2017, the FASB issued ASU 2017-01, To be Adopted in Future Years In May 2014, the FASB issued ASU No. 2014-09, In February 2016, the FASB issued ASU 2016-02, 2016-02 In March 2016, the FASB issued ASU 2016-09, 2016-09), 2016-09 In August of 2016, the FASB issued ASU 2016-15, In November of 2016, the FASB issued ASU 2016-18, |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Real Estate [Abstract] | |
Schedule of Acquired Property | During the three months March 31, 2017 and 2016 the Company acquired the following property: Property Date Acquired Percentage Owned 2525 McKinnon January 2017 100% |
Schedule of Allocation of Purchase Price of Assets Acquired and Liabilities Assumed | The following table summarizes the Company’s allocations of the purchase price of assets acquired and liabilities assumed during the three months ended March 31, 2017 (in thousands): 2525 Land $ 10,629 Buildings and improvements 33,357 Tenant improvements 1,158 Acquired intangible assets 3,267 Accounts payable and other liabilities (190) Lease intangible liabilities (2,186) Total consideration $ 46,035 |
Schedule of Carrying Value of Properties | The carrying value of the properties at March 31, 2017 were as follows: March 31, 2017 AmberGlen Washington Total Real estate properties, net $ 4,342 $ 34,536 $ 38,878 Deferred leasing costs, net 229 1,246 1,475 Acquired lease intangibles asset, net — 816 816 Rents receivable, prepaid expenses and other assets 409 1,621 2,030 Accounts payable, accrued expenses, deferred rent and tenant rent deposits (406) (2,011) (2,417) $ 4,574 $ 36,208 $ 40,782 |
Lease Intangibles (Tables)
Lease Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Lease Intangibles and Value of Assumed Lease Obligations | Lease intangibles and the value of assumed lease obligations as of March 31, 2017 and December 31, 2016 were comprised as follows (in thousands): March 31, 2017 Above In Place Leasing Total Below Below Total Cost $ 7,796 $ 61,852 $ 26,400 $ 96,048 $ (7,773) $ (138) $ (7,911) Accumulated amortization (4,108) (27,711) (9,522) (41,341) 1,725 29 1,754 $ 3,688 $ 34,141 $ 16,878 $ 54,707 $ (6,048) $ (109) $ (6,157) December 31, 2016 Above In Place Leasing Total Below Below Total Cost $ 7,796 $ 59,370 $ 25,693 92,859 (5,587) $ (138) (5,725) Accumulated amortization (3,779) (24,384) (8,482) (36,645) 1,395 28 1,423 $ 4,017 $ 34,986 17,211 $ 56,214 $ (4,192) $ (110) $ (4,302) |
Estimated Aggregate Amortization Expense for Lease Intangibles | The estimated aggregate amortization expense for lease intangibles for the five succeeding years and in the aggregate are as follows (in thousands): 2017 $ 11,543 2018 11,118 2019 9,463 2020 7,834 2021 5,569 Thereafter 3,023 $ 48,550 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Secured Indebtedness | The following table summarizes the secured indebtedness as of March 31, 2017 and December 31, 2016 (in thousands): Property March 31, December 31, Interest Rate as 2017 Maturity Secured Credit Facility (1) $ - $ 52,500 LIBOR +2.25% (2) June 2018 Washington Group Plaza (3) 32,817 32,995 3.85 July 2018 AmberGlen Mortgage Loan (4) 24,165 24,280 4.38 May 2019 Midland Life Insurance (5) 89,744 90,124 4.34 May 2021 Lake Vista Pointe (3) 18,460 18,460 4.28 August 2024 FRP Ingenuity Drive (3)(6) 17,000 17,000 4.44 December 2024 Plaza 25 (3)(7) 17,000 17,000 4.10 July 2025 190 Office Center (7) 41,250 41,250 4.79 October 2025 Intellicenter (7) 33,563 33,563 4.65 October 2025 FRP Collection (7) 30,599 30,737 3.85 September 2023 Carillon Point (7) 16,919 17,000 3.50 October 2023 5090 N 40 th 22,000 - 3.92 January 2027 SanTan (7) 35,100 - 4.56 March 2027 2525 McKinnon 27,000 - 4.24 April 2027 Total Principal 405,617 374,909 Deferred financing costs, net (4,853) (4,852) Total $ 400,764 $ 370,057 All interest rates are fixed interest rates with the exception of the secured credit facility (“Secured Credit Facility”) as explained in footnote 1 below. (1) At March 31, 2017 the Secured Credit Facility had $100 million authorized and was undrawn. In addition, the Secured Credit Facility has an accordion feature that will permit the Company to borrow up to $150 million, subject to additional collateral availability and lender approval. The Credit Agreement has a maturity date of June 26, 2018, which may be extended to June 26, 2019 at the Company’s option upon meeting certain conditions. The Secured Credit Facility requires the Company to maintain a fixed charge coverage ratio of no less than 1.60x. At March 31, 2017, the Secured Credit Facility was cross-collateralized by Central Fairwinds, Logan Tower, Superior Pointe and Park Tower. During 2016 the authorized borrowing capacity was increased from $75 million to $100 million. (2) As of March 31, 2017, the one month LIBOR rate was 0.98%. (3) Interest on mortgage loan is payable monthly plus principal based on 360 months of amortization. (4) The Company is required to maintain a minimum net worth of $25 million and a minimum liquidity of $2 million. On May 2, 2017, in conjunction with the sale of the 1400 and 1600 buildings at the AmberGlen property, the Company repaid the outstanding debt secured on the property of $24.1 million plus closing costs and subsequently closed on a $20 million loan secured by a first mortgage lien on the remaining buildings. The loan matures in May 2027. Interest is payable at a fixed rate of 3.69% per annum. (5) The mortgage loan is cross-collateralized by DTC Crossroads, Cherry Creek and City Center. Interest on mortgage loan is payable monthly plus principal based on 360 months of amortization. The loan bears a fixed interest rate of 4.34% and matures on May 6, 2021. Upon the sale of Corporate Parkway on June 15, 2016, $4 million of the loan was paid down and DTC Crossroads was substituted in as collateral property. (6) The Company is required to maintain a minimum net worth of $17 million, minimum liquidity of $1.7 million and a debt service coverage ratio of no less than 1.15x. (7) The Company is required to maintain a debt service coverage ratio of no less than 1.45x, 1.15x, 1.20x, 1.40x, 1.35x and 1.20x respectively for each of Plaza 25, 190 Office Center, Intellicenter, FRP Collection, Carillon Point and SanTan. |
Schedule of Principal Repayments of Debt | The scheduled principal repayments of debt as of March 31, 2017 are as follows (in thousands): 2017 $ 2,961 2018 36,421 2019 28,087 2020 5,791 2021 87,802 Thereafter 244,555 Total $ 405,617 |
Future Minimum Rent Schedule (T
Future Minimum Rent Schedule (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments under Noncancellable Operating Leases | Future minimum lease payments to be received as of March 31, 2017 under noncancellable operating leases for the next five years and thereafter are as follows (in thousands): 2017 59,552 2018 73,016 2019 63,740 2020 58,026 2021 50,745 Thereafter 121,366 $ 426,445 |
Organization and Description 22
Organization and Description of Business - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 01, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 |
Business Description And Basis Of Presentation [Line Items] | ||||
Company formation date | Nov. 26, 2013 | |||
Operation commencement date | Apr. 21, 2014 | |||
Total cost of business acquisition | $ 7,044 | $ 7,000 | ||
Second City Funds [Member] | Administrative Services Agreement [Member] | ||||
Business Description And Basis Of Presentation [Line Items] | ||||
Annual payment receivable for services | $ 3,275 | |||
Administrative service agreement, term | 3 years | |||
Second City Funds [Member] | First 12 months [Member] | Administrative Services Agreement [Member] | ||||
Business Description And Basis Of Presentation [Line Items] | ||||
Annual payment receivable for services | $ 1,500 | |||
Second City Funds [Member] | Second 12 months [Member] | Administrative Services Agreement [Member] | ||||
Business Description And Basis Of Presentation [Line Items] | ||||
Annual payment receivable for services | 1,150 | |||
Second City Funds [Member] | Third 12 months [Member] | Administrative Services Agreement [Member] | ||||
Business Description And Basis Of Presentation [Line Items] | ||||
Annual payment receivable for services | $ 625 | |||
External Advisor, City Office Real Estate Management, Inc [Member] | Thresholds Payment Condition 1 [Member] | ||||
Business Description And Basis Of Presentation [Line Items] | ||||
Additional cash payment for business acquisition | $ 1,000 | |||
Diluted market capitalization | 200,000 | |||
External Advisor, City Office Real Estate Management, Inc [Member] | Thresholds Payment Condition 2 [Member] | ||||
Business Description And Basis Of Presentation [Line Items] | ||||
Additional cash payment for business acquisition | 1,000 | |||
Diluted market capitalization | 225,000 | |||
External Advisor, City Office Real Estate Management, Inc [Member] | Thresholds Payment Condition 3 [Member] | ||||
Business Description And Basis Of Presentation [Line Items] | ||||
Additional cash payment for business acquisition | 1,500 | |||
Diluted market capitalization | $ 250,000 | |||
External Advisor, City Office Real Estate Management, Inc [Member] | Stock Purchase Agreement [Member] | ||||
Business Description And Basis Of Presentation [Line Items] | ||||
Common stock acquired, shares issued | 297,321 | |||
Common stock, fair market value | $ 3,500 | |||
Additional cash payment for business acquisition | $ 3,500 | $ 3,500 |
Real Estate Investments - Sched
Real Estate Investments - Schedule of Acquired Property through Operating Partnership (Detail) - 2525 McKinnon [Member] | 3 Months Ended |
Mar. 31, 2017 | |
Business Acquisition [Line Items] | |
Real estate property, date acquired | 2017-01 |
Real estate property, percentage owned | 100.00% |
Real Estate Investments - Sch24
Real Estate Investments - Schedule of Allocation of Purchase Price of Assets Acquired and Liabilities Assumed (Detail) - 2525 McKinnon [Member] $ in Thousands | Mar. 31, 2017USD ($) |
Business Acquisition [Line Items] | |
Land | $ 10,629 |
Buildings and improvements | 33,357 |
Tenant improvements | 1,158 |
Acquired intangible assets | 3,267 |
Accounts payable and other liabilities | (190) |
Lease intangible liabilities | (2,186) |
Total consideration | $ 46,035 |
Real Estate Investments - Addit
Real Estate Investments - Additional Information (Detail) $ in Millions | May 02, 2017USD ($) |
Portland Oregon [Member] | Subsequent Event [Member] | |
Business Acquisition [Line Items] | |
Proceeds of sale of property | $ 18.9 |
Real Estate Investments - Sch26
Real Estate Investments - Schedule of Carrying Value of Properties (Detail) $ in Thousands | Mar. 31, 2017USD ($) |
Long Lived Assets Held-for-sale [Line Items] | |
Carrying value of the properties | $ 40,782 |
Real Estate Properties, Net [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Carrying value of the properties | 38,878 |
Deferred Leasing Costs, Net [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Carrying value of the properties | 1,475 |
Acquired Lease Intangible Asset, Net [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Carrying value of the properties | 816 |
Rents Receivable, Prepaid Expenses and Other Assets [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Carrying value of the properties | 2,030 |
Accounts Payable, Accrued Expenses, Deferred Rent and Tenant Rent Deposits [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Carrying value of the properties | (2,417) |
AmberGlen 1400 and 1600 [ Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Carrying value of the properties | 4,574 |
AmberGlen 1400 and 1600 [ Member] | Real Estate Properties, Net [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Carrying value of the properties | 4,342 |
AmberGlen 1400 and 1600 [ Member] | Deferred Leasing Costs, Net [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Carrying value of the properties | 229 |
AmberGlen 1400 and 1600 [ Member] | Rents Receivable, Prepaid Expenses and Other Assets [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Carrying value of the properties | 409 |
AmberGlen 1400 and 1600 [ Member] | Accounts Payable, Accrued Expenses, Deferred Rent and Tenant Rent Deposits [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Carrying value of the properties | (406) |
Washington Group Plaza [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Carrying value of the properties | 36,208 |
Washington Group Plaza [Member] | Real Estate Properties, Net [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Carrying value of the properties | 34,536 |
Washington Group Plaza [Member] | Deferred Leasing Costs, Net [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Carrying value of the properties | 1,246 |
Washington Group Plaza [Member] | Acquired Lease Intangible Asset, Net [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Carrying value of the properties | 816 |
Washington Group Plaza [Member] | Rents Receivable, Prepaid Expenses and Other Assets [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Carrying value of the properties | 1,621 |
Washington Group Plaza [Member] | Accounts Payable, Accrued Expenses, Deferred Rent and Tenant Rent Deposits [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Carrying value of the properties | $ (2,011) |
Lease Intangibles - Schedule of
Lease Intangibles - Schedule of Lease Intangibles and Value of Assumed Lease Obligations (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 96,048 | $ 92,859 |
Cost, Below Market Leases | (7,773) | (5,587) |
Cost, Below Market Ground Lease | (138) | (138) |
Cost | (7,911) | (5,725) |
Accumulated amortization | (41,341) | (36,645) |
Accumulated amortization, Below Market Leases | 1,725 | 1,395 |
Accumulated amortization, Below Market Ground lease | 29 | 28 |
Accumulated amortization | 1,754 | 1,423 |
Total | 54,707 | 56,214 |
Total, Below Market Leases | (6,048) | (4,192) |
Total, Below Market Ground lease | (109) | (110) |
Total | (6,157) | (4,302) |
Above Market Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 7,796 | 7,796 |
Accumulated amortization | (4,108) | (3,779) |
Total | 3,688 | 4,017 |
In Place Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 61,852 | 59,370 |
Accumulated amortization | (27,711) | (24,384) |
Total | 34,141 | 34,986 |
Leasing Commissions [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 26,400 | 25,693 |
Accumulated amortization | (9,522) | (8,482) |
Total | $ 16,878 | $ 17,211 |
Lease Intangibles - Estimated A
Lease Intangibles - Estimated Aggregate Amortization Expense for Lease Intangibles (Detail) $ in Thousands | Mar. 31, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,017 | $ 11,543 |
2,018 | 11,118 |
2,019 | 9,463 |
2,020 | 7,834 |
2,021 | 5,569 |
Thereafter | 3,023 |
Total | $ 48,550 |
Debt - Summary of Secured Indeb
Debt - Summary of Secured Indebtedness (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Secured indebtedness | $ 405,617 | $ 374,909 |
Deferred financing costs, net | (4,853) | (4,852) |
Total | $ 400,764 | 370,057 |
Secured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Secured indebtedness | 52,500 | |
Maturity | 2018-06 | |
Washington Group Plaza [Member] | ||
Debt Instrument [Line Items] | ||
Secured indebtedness | $ 32,817 | 32,995 |
Interest Rate | 3.85% | |
Maturity | 2018-07 | |
AmberGlen Mortgage Loan [Member] | ||
Debt Instrument [Line Items] | ||
Secured indebtedness | $ 24,165 | 24,280 |
Interest Rate | 4.38% | |
Maturity | 2019-05 | |
Midland Life Insurance [Member] | ||
Debt Instrument [Line Items] | ||
Secured indebtedness | $ 89,744 | 90,124 |
Interest Rate | 4.34% | |
Maturity | 2021-05 | |
Lake Vista Pointe [Member] | ||
Debt Instrument [Line Items] | ||
Secured indebtedness | $ 18,460 | 18,460 |
Interest Rate | 4.28% | |
Maturity | 2024-08 | |
FRP Ingenuity Drive [Member] | ||
Debt Instrument [Line Items] | ||
Secured indebtedness | $ 17,000 | 17,000 |
Interest Rate | 4.44% | |
Maturity | 2024-12 | |
Plaza 25 [Member] | ||
Debt Instrument [Line Items] | ||
Secured indebtedness | $ 17,000 | 17,000 |
Interest Rate | 4.10% | |
Maturity | 2025-07 | |
190 Office Center [Member] | ||
Debt Instrument [Line Items] | ||
Secured indebtedness | $ 41,250 | 41,250 |
Interest Rate | 4.79% | |
Maturity | 2025-10 | |
Intellicenter [Member] | ||
Debt Instrument [Line Items] | ||
Secured indebtedness | $ 33,563 | 33,563 |
Interest Rate | 4.65% | |
Maturity | 2025-10 | |
FRP Collection [Member] | ||
Debt Instrument [Line Items] | ||
Secured indebtedness | $ 30,599 | 30,737 |
Interest Rate | 3.85% | |
Maturity | 2023-09 | |
Carillon Point [Member] | ||
Debt Instrument [Line Items] | ||
Secured indebtedness | $ 16,919 | $ 17,000 |
Interest Rate | 3.50% | |
Maturity | 2023-10 | |
5090 N 40th St [Member] | ||
Debt Instrument [Line Items] | ||
Secured indebtedness | $ 22,000 | |
Interest Rate | 3.92% | |
Maturity | 2027-01 | |
SanTan [Member] | ||
Debt Instrument [Line Items] | ||
Secured indebtedness | $ 35,100 | |
Interest Rate | 4.56% | |
Maturity | 2027-03 | |
2525 McKinnon [Member] | ||
Debt Instrument [Line Items] | ||
Secured indebtedness | $ 27,000 | |
Interest Rate | 4.24% | |
Maturity | 2027-04 | |
London Interbank Offered Rate (LIBOR) [Member] | Secured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate, Description | 2.25% |
Debt - Summary of Secured Ind30
Debt - Summary of Secured Indebtedness (Parenthetical) (Detail) - USD ($) | May 02, 2017 | Jun. 15, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||||||
Repayment of mortgage loans payable | $ 892,000 | $ 280,000 | ||||
Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayment of mortgage loans payable | $ 24,100,000 | |||||
Loan maturity | 2027-05 | |||||
Interest rate | 3.69% | |||||
Washington Group Plaza [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amortization period | 360 months | |||||
Loan maturity | 2018-07 | |||||
Effective interest rate of loan | 3.85% | |||||
AmberGlen Mortgage Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Minimum net worth required | $ 25,000,000 | |||||
Minimum liquidity requirements | $ 2,000,000 | |||||
Loan maturity | 2019-05 | |||||
Effective interest rate of loan | 4.38% | |||||
Midland Life Insurance [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Loan maturity date | May 6, 2021 | |||||
Amortization period | 360 months | |||||
Repayment of mortgage loans payable | $ 4,000,000 | $ 4,000,000 | ||||
Loan maturity | 2021-05 | |||||
Effective interest rate of loan | 4.34% | |||||
Lake Vista Pointe [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amortization period | 360 months | |||||
Loan maturity | 2024-08 | |||||
Effective interest rate of loan | 4.28% | |||||
FRP Ingenuity Drive [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amortization period | 360 months | |||||
Minimum net worth required | $ 17,000,000 | |||||
Minimum liquidity requirements | $ 1,700,000 | |||||
Loan maturity | 2024-12 | |||||
Effective interest rate of loan | 4.44% | |||||
Plaza 25 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amortization period | 360 months | |||||
Loan maturity | 2025-07 | |||||
Effective interest rate of loan | 4.10% | |||||
190 Office Center [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Loan maturity | 2025-10 | |||||
Effective interest rate of loan | 4.79% | |||||
Intellicenter [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Loan maturity | 2025-10 | |||||
Effective interest rate of loan | 4.65% | |||||
FRP Collection [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Loan maturity | 2023-09 | |||||
Effective interest rate of loan | 3.85% | |||||
Carillon Point [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Loan maturity | 2023-10 | |||||
Effective interest rate of loan | 3.50% | |||||
SanTan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Loan maturity | 2027-03 | |||||
Effective interest rate of loan | 4.56% | |||||
First Mortgage Lien on Remaining Buildings [Member] | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayment of mortgage loans payable | $ 20,000,000 | |||||
Minimum [Member] | FRP Ingenuity Drive [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Fixed charge coverage ratio | 115.00% | |||||
Minimum [Member] | Plaza 25 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Fixed charge coverage ratio | 145.00% | |||||
Minimum [Member] | 190 Office Center [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Fixed charge coverage ratio | 115.00% | |||||
Minimum [Member] | Intellicenter [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Fixed charge coverage ratio | 120.00% | |||||
Minimum [Member] | FRP Collection [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Fixed charge coverage ratio | 140.00% | |||||
Minimum [Member] | Carillon Point [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Fixed charge coverage ratio | 135.00% | |||||
Minimum [Member] | SanTan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Fixed charge coverage ratio | 120.00% | |||||
Secured Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving Credit Facility, authorized amount | $ 100,000,000 | $ 100,000,000 | $ 75,000,000 | |||
Loan maturity date | Jun. 26, 2018 | |||||
Loan expected extended maturity date | Jun. 26, 2019 | |||||
Revolving Credit Facility, accordion feature | $ 150,000,000 | |||||
Loan maturity | 2018-06 | |||||
Secured Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
One month LIBOR rate | 0.98% | |||||
Interest rate | 2.25% | |||||
Secured Credit Facility [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Fixed charge coverage ratio | 160.00% |
Debt - Schedule of Principal Re
Debt - Schedule of Principal Repayments of Debt (Detail) $ in Thousands | Mar. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 2,961 |
2,018 | 36,421 |
2,019 | 28,087 |
2,020 | 5,791 |
2,021 | 87,802 |
Thereafter | 244,555 |
Total | $ 405,617 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 10, 2017 | Feb. 09, 2017 | Jan. 04, 2017 | Mar. 31, 2017 | Mar. 31, 2016 |
Debt Instrument [Line Items] | |||||
Secured indebtedness closed | $ 892 | $ 280 | |||
5090 N 40th St [Member] | |||||
Debt Instrument [Line Items] | |||||
Secured indebtedness closed | $ 22,000 | ||||
Interest Rate | 3.92% | ||||
SanTan [Member] | |||||
Debt Instrument [Line Items] | |||||
Secured indebtedness closed | $ 35,100 | ||||
Interest Rate | 4.56% | ||||
2525 McKinnon [Member] | |||||
Debt Instrument [Line Items] | |||||
Secured indebtedness closed | $ 27,000 | ||||
Interest Rate | 4.24% |
Fair Value of Financial Instr33
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) | Feb. 21, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||||
Hedges or derivatives | $ 0 | $ 0 | ||
Estimated fair value of earn-out liability | 0 | 2,400,000 | ||
Earn-out payment | $ 2,400,000 | $ 3,778,000 | ||
Mortgage loans payable, fair value | $ 407,900,000 | $ 323,700,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Thousands | Feb. 21, 2017USD ($) | Feb. 01, 2016 | Mar. 31, 2017USD ($)Property | May 31, 2016USD ($) | Mar. 31, 2016USD ($) |
Related Party Transaction [Line Items] | |||||
Earn-out payment | $ 2,400 | $ 3,778 | |||
Property Management Firm [Member] | |||||
Related Party Transaction [Line Items] | |||||
Property management fee, Description | Fee ranging from 2.0% to 3.5% of gross revenue. | ||||
Number of real estate properties | Property | 5 | ||||
Management fees paid | $ 200 | $ 100 | |||
Property Management Firm [Member] | Minimum [Member] | |||||
Related Party Transaction [Line Items] | |||||
Property management fee, percentage | 2.00% | ||||
Property Management Firm [Member] | Maximum [Member] | |||||
Related Party Transaction [Line Items] | |||||
Property management fee, percentage | 3.50% | ||||
Stock Purchase Agreement [Member] | External Advisor, City Office Real Estate Management, Inc [Member] | |||||
Related Party Transaction [Line Items] | |||||
Business acquisition effective date | Feb. 1, 2016 | Feb. 1, 2016 |
Future Minimum Rent Schedule -
Future Minimum Rent Schedule - Schedule of Future Minimum Lease Payments under Noncancellable Operating Leases (Detail) $ in Thousands | Mar. 31, 2017USD ($) |
Leases [Abstract] | |
2,017 | $ 59,552 |
2,018 | 73,016 |
2,019 | 63,740 |
2,020 | 58,026 |
2,021 | 50,745 |
Thereafter | 121,366 |
Total future minimum lease payments to be received | $ 426,445 |
Future Minimum Rent Schedule 36
Future Minimum Rent Schedule - Additional Information (Detail) | Mar. 31, 2017 |
Sales Revenue, Services, Net [Member] | Government Contracts Concentration Risk [Member] | |
Schedule Of Operating Leases Future Minimum Payments Receivable [Line Items] | |
Percentage of total future minimum lease payments | 14.50% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) $ / shares in Units, $ in Thousands | Apr. 25, 2017USD ($) | Mar. 31, 2017$ / sharesshares | Mar. 21, 2017$ / shares | Jan. 13, 2017USD ($)$ / sharesshares | Feb. 01, 2016USD ($)shares | Mar. 31, 2017USD ($)Installment$ / sharesshares | Mar. 31, 2016USD ($)$ / shares | Dec. 31, 2016USD ($)$ / sharesshares |
Class of Stock [Line Items] | ||||||||
Common stock issued | shares | 30,257,448 | 30,257,448 | 24,382,226 | |||||
Common stock price per share | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Net proceeds from issuance of public offering | $ 67,991 | |||||||
Operating partnership common units | shares | 1 | |||||||
Partnership unit, description | each limited partner and assignees of limited partners will have the right, subject to the terms and conditions set forth in the partnership agreement, to require the Operating Partnership to redeem all or a portion of the common units held by such limited partner or assignee in exchange for a cash amount per common unit equal to the value of one share of common stock, determined in accordance with and subject to adjustment under the partnership agreement. The Company has the sole option at its discretion to redeem the tendered common units by issuing common stock on a one-for-one basis. | |||||||
Common units redeemed for shares of common stock | shares | 40,000 | |||||||
Declared cash dividend distribution per share | $ / shares | $ 0.235 | $ 0.235 | $ 0.235 | |||||
Dividends paid, declared date | Mar. 21, 2017 | |||||||
Dividends paid date | Apr. 25, 2017 | |||||||
Dividends paid, date of record | Apr. 11, 2017 | |||||||
Dividends | $ 8,462 | $ 22,916 | ||||||
Preferred Stock, dividend declared and paid | $ 1,800 | |||||||
Preferred Stock, dividend declared per share | $ / shares | $ 0.4140625 | |||||||
Maximum number of shares issued under Equity Incentive Plan | shares | 1,263,580 | |||||||
External Advisor, City Office Real Estate Management, Inc [Member] | Stock Purchase Agreement [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Business acquisition effective date | Feb. 1, 2016 | Feb. 1, 2016 | ||||||
Common stock acquired, shares issued | shares | 297,321 | |||||||
Additional cash payment for business acquisition | $ 3,500 | $ 3,500 | ||||||
Subsequent Event [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Dividends | $ 7,100 | |||||||
Preferred Stock, dividend declared and paid | $ 1,800 | |||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Net compensation expense | $ 800 | |||||||
Number of annual installments for award vesting | Installment | 3 | |||||||
Restricted Stock Units (RSUs) [Member] | Directors and Non-Executive Employees [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Restricted stock units granted to executive officers, directors and non-executive employees | shares | 115,478 | |||||||
Restricted stock units grant date fair value | $ 1,500 | |||||||
Public Offering [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock issued | shares | 5,750,000 | |||||||
Common stock price per share | $ / shares | $ 12.40 | |||||||
Gross proceeds from issuance of public offering | $ 71,300 | |||||||
Net proceeds from issuance of public offering | 68,000 | |||||||
Underwriting discounts and other expenses | $ 3,300 |