Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 29, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
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 Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 39,544,073 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Real estate properties | ||
Land | $ 204,934 | $ 188,110 |
Building and improvement | 656,538 | 534,473 |
Tenant improvement | 74,306 | 53,427 |
Furniture, fixtures and equipment | 321 | 291 |
Real estate properties, gross | 936,099 | 776,301 |
Accumulated depreciation | (67,870) | (48,234) |
Real estate properties, net | 868,229 | 728,067 |
Cash and cash equivalents | 13,696 | 12,301 |
Restricted cash | 20,136 | 22,713 |
Rents receivable, net | 25,081 | 20,087 |
Deferred leasing costs, net | 10,250 | 7,793 |
Acquired lease intangible assets, net | 73,777 | 65,088 |
Prepaid expenses and other assets | 2,706 | 2,013 |
Assets held for sale | 38,427 | |
Total Assets | 1,013,875 | 896,489 |
Liabilities: | ||
Debt | 546,016 | 489,509 |
Accounts payable and accrued liabilities | 23,163 | 17,605 |
Deferred rent | 4,698 | 4,223 |
Tenant rent deposits | 4,406 | 3,523 |
Acquired lease intangible liabilities, net | 8,693 | 8,649 |
Dividend distributions payable | 11,148 | 10,318 |
Liabilities related to assets held for sale | 2,830 | |
Total Liabilities | 598,124 | 536,657 |
Commitments and Contingencies (Note 9) | ||
Equity: | ||
6.625% Series A Preferred stock, $0.01 par value per share, 5,600,000 shares authorized, 4,480,000 issued and outstanding | 112,000 | 112,000 |
Common stock, $0.01 par value, 100,000,000 shares authorized, 39,544,073 and 36,012,086 shares issued and outstanding | 395 | 360 |
Additional paid-in capital | 376,689 | 334,241 |
Accumulated deficit | (74,079) | (86,977) |
Total Stockholders' Equity | 415,005 | 359,624 |
Non-controlling interests in properties | 746 | 208 |
Total Equity | 415,751 | 359,832 |
Total Liabilities and Equity | $ 1,013,875 | $ 896,489 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
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 | 5,600,000 | 5,600,000 |
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 | 39,544,073 | 36,012,086 |
Common stock, shares outstanding | 39,544,073 | 36,012,086 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues: | ||||
Rental income | $ 28,195 | $ 21,452 | $ 81,089 | $ 65,400 |
Expense reimbursement | 4,502 | 2,541 | 11,592 | 7,682 |
Other | 850 | 757 | 2,636 | 2,224 |
Total Revenues | 33,547 | 24,750 | 95,317 | 75,306 |
Operating Expenses: | ||||
Property operating expenses | 13,253 | 10,693 | 36,627 | 30,977 |
General and administrative | 1,850 | 1,446 | 5,793 | 5,236 |
Depreciation and amortization | 13,379 | 9,449 | 37,044 | 29,095 |
Total Operating Expenses | 28,482 | 21,588 | 79,464 | 65,308 |
Operating income | 5,065 | 3,162 | 15,853 | 9,998 |
Interest Expense: | ||||
Contractual interest expense | (5,915) | (4,513) | (16,184) | (12,941) |
Amortization of deferred financing costs | (311) | (372) | (1,297) | (1,027) |
Interest expense, net | (6,226) | (4,885) | (17,481) | (13,968) |
Change in fair value of contingent consideration | 2,000 | |||
Net gain on sale of real estate property | 46,980 | 12,116 | ||
Net (loss)/income | (1,161) | (1,723) | 45,352 | 10,146 |
Net income attributable to non-controlling interests in properties | (135) | (52) | (384) | (3,324) |
Net (loss)/income attributable to the Company | (1,296) | (1,775) | 44,968 | 6,822 |
Preferred stock distributions | (1,855) | (1,855) | (5,565) | (5,556) |
Net (loss)/income attributable to common stockholders | $ (3,151) | $ (3,630) | $ 39,403 | $ 1,266 |
Net (loss)/income per common share: | ||||
Basic | $ (0.08) | $ (0.12) | $ 1.08 | $ 0.04 |
Diluted | $ (0.08) | $ (0.12) | $ 1.07 | $ 0.04 |
Weighted average common shares outstanding: | ||||
Basic | 37,494 | 30,262 | 36,572 | 29,966 |
Diluted | 37,494 | 30,262 | 36,920 | 30,268 |
Dividend distributions declared per common share | $ 0.235 | $ 0.235 | $ 0.705 | $ 0.705 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total stockholders' equity [Member] | Operating Partnership Unitholders' Non-controlling Interests [Member] | Non-controlling Interests in Properties [Member] |
Beginning balance at Dec. 31, 2016 | $ 256,059 | $ 112,000 | $ 244 | $ 195,566 | $ (53,608) | $ 254,202 | $ 108 | $ 1,749 |
Beginning balance, shares at Dec. 31, 2016 | 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 | 1,671 | $ 1 | 1,741 | (71) | 1,671 | |||
Restricted stock award grants and vesting, shares | 90,000 | |||||||
Net proceeds from sale of common stock, values | 136,941 | $ 115 | 136,826 | 136,941 | ||||
Net proceeds from sale of common stock, shares | 11,500,000 | |||||||
Common stock dividend distributions declared | (31,148) | (31,148) | (31,148) | |||||
Preferred stock dividend distributions declared | (7,906) | (7,906) | (7,906) | |||||
Distributions | (4,943) | (4,943) | ||||||
Net income | 9,158 | 5,756 | 5,756 | 3,402 | ||||
Ending balance at Dec. 31, 2017 | $ 359,832 | $ 112,000 | $ 360 | 334,241 | (86,977) | 359,624 | 208 | |
Ending balance, shares at Dec. 31, 2017 | 36,012,086 | 4,480,000 | 36,012,000 | |||||
Restricted stock award grants and vesting, values | $ 975 | $ 1 | 1,204 | (230) | 975 | |||
Restricted stock award grants and vesting, shares | 121,000 | |||||||
Net proceeds from sale of common stock, values | 42,902 | $ 34 | 42,868 | 42,902 | ||||
Net proceeds from sale of common stock, shares | 3,411,000 | |||||||
Common stock dividend distributions declared | (26,275) | (26,275) | (26,275) | |||||
Preferred stock dividend distributions declared | (5,565) | (5,565) | (5,565) | |||||
Minority interest buyout | (1,139) | (1,624) | (1,624) | 485 | ||||
Contributions | 43 | 43 | ||||||
Distributions | (374) | (374) | ||||||
Net income | 45,352 | 44,968 | 44,968 | 384 | ||||
Ending balance at Sep. 30, 2018 | $ 415,751 | $ 112,000 | $ 395 | $ 376,689 | $ (74,079) | $ 415,005 | $ 746 | |
Ending balance, shares at Sep. 30, 2018 | 39,544,073 | 4,480,000 | 39,544,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows from Operating Activities: | ||
Net income | $ 45,352 | $ 10,146 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 37,044 | 29,095 |
Amortization of deferred financing costs | 1,297 | 1,027 |
Amortization of above/below market leases | (143) | (126) |
Increase in straight-line rent | (3,491) | (2,417) |
Non-cash stock compensation | 1,061 | 1,430 |
Earn-out termination payment | (2,400) | |
Net gain on sale of real estate property | (46,980) | (12,116) |
Changes in non-cash working capital: | ||
Rents receivable, net | (1,177) | (285) |
Prepaid expenses and other assets | (162) | (1,648) |
Accounts payable and accrued liabilities | (1,434) | 2,270 |
Deferred rent | (1,428) | (77) |
Tenant rent deposits | 140 | 580 |
Net Cash Provided By Operating Activities | 30,079 | 25,479 |
Cash Flows to Investing Activities: | ||
Additions to real estate properties | (15,785) | (6,119) |
Acquisition of real estate | (162,462) | (216,310) |
Net proceeds from sale of real estate | 84,839 | 16,993 |
Deferred leasing costs | (3,222) | (2,578) |
Net Cash Used In Investing Activities | (96,630) | (208,014) |
Cash Flows from Financing Activities: | ||
Proceeds from sale of common stock | 42,902 | 67,991 |
Debt issuance and extinguishment costs | (2,662) | (1,198) |
Proceeds from mortgage loans payable | 73,324 | 119,340 |
Repayment of mortgage loans payable | (35,128) | (26,759) |
Proceeds from credit facility | 196,500 | 187,000 |
Repayment of credit facility | (177,000) | (117,500) |
Shares withheld for payment of taxes on restricted stock unit vesting | (87) | |
Minority interest buyout | (1,139) | |
Contributions from non-controlling interests in properties | 43 | |
Distributions to non-controlling interests in properties | (374) | (4,764) |
Dividend distributions paid to stockholders and Operating Partnership unitholders | (31,010) | (27,290) |
Net Cash Provided By Financing Activities | 65,369 | 196,820 |
Net (Decrease)/Increase in Cash, Cash Equivalents and Restricted Cash | (1,182) | 14,285 |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 35,014 | 29,651 |
Cash, Cash Equivalents and Restricted Cash, End of Period | $ 33,832 | $ 43,936 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash: | ||
Cash and Cash Equivalents, End of Period | $ 13,696 | $ 18,896 |
Restricted Cash, End of Period | 20,136 | 25,040 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 33,832 | 43,936 |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid for interest | 15,967 | 12,800 |
Purchases of additions in real estate properties included in accounts payable | 4,379 | 364 |
Purchases of deferred leasing costs included in accounts payable | $ 430 | $ 27 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2018 | |
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”). 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 continue 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, for tax years beginning before 2018, any applicable alternative minimum tax. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
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 condensed 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 Effective January 1, 2018, the Company adopted FASB ASU 2014-09, 2016-02, 2017-05, Effective January 1, 2018, the Company adopted FASB ASU 2016-01, 2016-01 Effective January 1, 2018, the Company adopted FASB ASU 2016-15, Effective January 1, 2018, the Company adopted FASB ASU 2016-18, To be Adopted in Future Years In February 2016, the FASB issued ASU 2016-02, 2016-02 2018-11 non-lease non-lease non-lease non-lease |
Real Estate Investments
Real Estate Investments | 9 Months Ended |
Sep. 30, 2018 | |
Real Estate [Abstract] | |
Real Estate Investments | 3. Real Estate Investments Acquisitions During the nine months ended September 30, 2018 and 2017 the Company acquired the following properties: Property Date Acquired Percentage Owned The Quad July 2018 100 % Circle Point July 2018 100 % Pima Center April 2018 100 % Mission City and Sorrento Mesa September 2017 100 % 2525 McKinnon January 2017 100 % All of the properties acquired were accounted for as asset acquisitions. The following table summarizes the Company’s allocations of the purchase price of assets acquired and liabilities assumed during the nine months ended September 30, 2018 (in thousands): The Quad Circle Point Pima Center Total Sept. 30, 2018 Land $ 8,079 $ 8,744 $ — $ 16,823 Buildings and improvements 38,060 33,708 42,235 114,003 Tenant improvements 1,798 5,393 2,898 10,089 Acquired intangible assets 4,209 10,299 10,691 25,199 Prepaid expenses and other assets 15 25 95 135 Accounts payable and other liabilities (527 ) (1,157 ) (337 ) (2,021 ) Lease intangible liabilities (1,247 ) (390 ) (129 ) (1,766 ) Total consideration $ 50,387 $ 56,622 $ 55,453 $ 162,462 The following table summarizes the Company’s allocations of the purchase price of assets acquired and liabilities assumed during the nine months ended September 30, 2017 (in thousands): Mission City 2525 Total Sept. 30, Land $ 66,097 $ 10,629 $ 76,726 Buildings and improvements 78,072 33,357 111,429 Tenant improvements 8,393 1,158 9,551 Acquired intangible assets 22,846 3,267 26,113 Prepaid expenses and other assets 140 — 140 Accounts payable and other liabilities (1,507 ) (190 ) (1,697 ) Lease intangible liabilities (3,766 ) (2,186 ) (5,952 ) Total consideration $ 170,275 $ 46,035 $ 216,310 Sale of Real Estate Property On March 8, 2018, the Company sold the Washington Group Plaza property in Boise, Idaho for $86.5 million, resulting in an aggregate net gain of $47.0 million, net of $1.7 million in costs, which has been classified as net gain on sale of real estate property in the condensed consolidated statements of operations. In connection with the sale of the property, certain debt repayments were made. On May 2, 2017, the Company sold the 1400 and 1600 buildings at the AmberGlen property in Portland, Oregon, and its related assets and liabilities, for a sales price of $18.9 million, resulting in an aggregate net gain of $12.1 million, net of $2.0 million in costs, which has been classified as net gain on sale of real estate property in the condensed consolidated statements of operations. In connection with the sale of the property, certain debt repayments were made. |
Lease Intangibles
Lease Intangibles | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Lease Intangibles | 4. Lease Intangibles Lease intangibles and the value of assumed lease obligations as of September 30, 2018 and December 31, 2017 were comprised as follows (in thousands): Lease Intangible Assets Lease Intangible Liabilities September 30, 2018 Above Market Leases Below Market (1) In Place Leasing Total Below Below Market (1) Total Cost $ 10,477 $ 1,855 $ 82,138 $ 30,421 $ 124,891 $ (12,616 ) $ (138 ) $ (12,754 ) Accumulated amortization (4,599 ) (13 ) (34,698 ) (11,804 ) (51,114 ) 4,026 35 4,061 $ 5,878 $ 1,842 $ 47,440 $ 18,617 $ 73,777 $ (8,590 ) $ (103 ) $ (8,693 ) Lease Intangible Assets Lease Intangible Liabilities December 31, 2017 Above Market Leases Below Market Lease In Place Leasing Total Below Below Market (1) Total Cost $ 9,082 $ — $ 71,426 $ 27,706 $ 108,214 $ (11,608 ) $ (138 ) $ (11,746 ) Accumulated amortization (3,215 ) — (30,613 ) (9,298 ) (43,126 ) 3,065 32 3,097 $ 5,867 $ — $ 40,813 $ 18,408 $ 65,088 $ (8,543 ) $ (106 ) $ (8,649 ) (1) For the below market ground lease asset the Company is the lessee, whereas, for the below market ground lease liability the Company is the lessor. The estimated aggregate amortization expense for lease intangibles for the next five years and in the aggregate are as follows (in thousands): 2018 $ 4,722 2019 18,534 2020 16,298 2021 13,186 2022 5,667 Thereafter 6,677 $ 65,084 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt The following table summarizes the indebtedness as of September 30, 2018 and December 31, 2017 (in thousands): Property September 30, 2018 December 31, Interest Rate as Maturity Unsecured Credit Facility (1) $ 53,000 $ — LIBOR +1.50 % (2) March 2022 Midland Life Insurance (3) 87,382 88,582 4.34 May 2021 Mission City 47,000 47,000 3.78 November 2027 190 Office Center (4) 41,250 41,250 4.79 October 2025 Circle Point (4) 39,650 — 4.49 September 2028 SanTan (4) 34,823 35,100 4.56 March 2027 Intellicenter (4) 33,562 33,563 4.65 October 2025 The Quad 30,600 — 4.20 September 2028 FRP Collection (4) 29,737 30,174 3.85 September 2023 2525 McKinnon 27,000 27,000 4.24 April 2027 5090 N 40th St 22,000 22,000 3.92 January 2027 AmberGlen (4) 20,000 20,000 3.69 May 2027 Lake Vista Pointe (5) 18,124 18,358 4.28 August 2024 Central Fairwinds (4) 17,966 15,107 4.00 June 2024 FRP Ingenuity Drive (5)(6) 17,000 17,000 4.44 December 2024 Plaza 25 (4)(5) 16,662 16,882 4.10 July 2025 Carillon Point (4) 16,416 16,671 3.50 October 2023 Washington Group Plaza — 32,290 — — Secured Credit Facility (1) — 33,500 — — Total Principal 552,172 494,477 Deferred financing costs, net (6,156 ) (4,968 ) Total $ 546,016 $ 489,509 All interest rates are fixed interest rates with the exception of the unsecured credit facility (“Unsecured Credit Facility”) as explained in footnote 1 below. (1) As of September 30, 2018, the Unsecured Credit Facility had $250 million authorized and $53.0 million was drawn. On March 15, 2018, the Company entered into a $250 million Unsecured Credit Facility which includes an accordion feature that will permit the Company to borrow up to $500 million, subject to customary terms and conditions. The Company’s previous secured credit facility was replaced and repaid in full. The Unsecured Credit Facility matures in March 2022, which may be extended to March 2023 at the Company’s option upon meeting certain conditions. Borrowings under the Unsecured Credit Facility will bear an interest at a rate equal to the LIBOR rate plus a margin of between 140 to 225 basis points depending upon the Company’s consolidated leverage ratio. The Unsecured Credit Facility requires the Company to maintain a fixed charge coverage ratio of no less than 1.50x. (2) As of September 30, 2018, the one month LIBOR rate was 2.26%. (3) 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. (4) The Company is subject to various debt covenants including debt service coverage ratios (“DSCR”) that under certain conditions must be maintained no less than 1.15x, 1.20x, 1.20x, 1.40x, 1.15x, 1.45x, 1.35x, 1.35x and 1.20x respectively for each of 190 Office Center, SanTan, Intellicenter, FRP Collection, AmberGlen, Plaza 25, Carillon Point, Central Fairwinds and Circle Point. The DSCR covenant contained in the loan agreements for Plaza 25, allows for the posting of additional collateral reserves in the event the test is not met. As at September 30, 2018, the covenant was not met and thus the Company has posted all required collateral reserves and is not subject to the test while those reserves are held. (5) Interest on mortgage loan is payable monthly plus principal based on 360 months of amortization. (6) The Company is required to maintain a minimum net worth of $17 million, minimum liquidity of $1.7 million and a DSCR of no less than 1.15x. The scheduled principal repayments of debt as of September 30, 2018 are as follows (in thousands): 2018 $ 1,106 2019 5,108 2020 6,152 2021 88,174 2022 57,996 Thereafter 393,636 $ 552,172 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 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 September 30, 2018 and December 31, 2017, the Company did not have any hedges or derivatives. Cash, Cash Equivalents, Restricted Cash, Rents 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 $486.8 million and $462.3 million as of September 30, 2018 and December 31, 2017, respectively. Accordingly, the fair value of mortgage loans payable have been classified as Level 3 fair value measurements. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 7. Related Party Transactions Administrative Services Agreement For the nine months ended September 30, 2018 and 2017, the Company earned $0.5 million and $0.9 million, respectively, in administrative services performed for Second City Real Estate II Corporation and its affiliates (“Second City”). Earn-Out For the nine months ended September 30, 2017, the Company paid $2.4 million to Second City to terminate the Company’s earn-out Minority Interest Buy Out On August 1, 2018, the Company signed an agreement with Second City Capital Partners II, Limited Partnership whereby Second City agreed to sell its seven percent minority interest in Central Fairwinds Limited Partnership to the Company for $1.1 million. As a result of the agreement the Company’s ownership percentage in Central Fairwinds Limited Partnership is 97%. |
Future Minimum Rent Schedule
Future Minimum Rent Schedule | 9 Months Ended |
Sep. 30, 2018 | |
Leases [Abstract] | |
Future Minimum Rent Schedule | 8. Future Minimum Rent Schedule Future minimum lease payments to be received as of September 30, 2018 under non-cancellable 2018 26,564 2019 103,464 2020 91,874 2021 80,189 2022 63,121 Thereafter 130,463 $ 495,675 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. Ten state government tenants currently have the exercisable right to terminate their leases if the applicable state legislature 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 10.1% of the Company’s total future minimum lease payments as of September 30, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies 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 September 30, 2018 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 | 9 Months Ended |
Sep. 30, 2018 | |
Federal Home Loan Banks [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity Common Stock and Common Unit Distributions On September 14, 2018, 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 September 30, 2018. The dividend was paid subsequent to quarter end on October 25, 2018 to common stockholders and common unitholders of record as of October 11, 2018 for an aggregate of $9.3 million. During the nine month period ended September 30, 2018, the Company also issued 3,410,802 shares under the ATM Program. We raised $43.6 million in gross proceeds, resulting in net proceeds to us of approximately $42.9 million after deducting sales commissions and offering expenses. Preferred Stock Distributions On September 14, 2018 the Company’s Board of Directors approved and the Company declared a cash dividend of $0.4140625 per share for an aggregate amount of $1.9 million. The dividend was paid subsequent to quarter end on October 25, 2018. Restricted Stock Units The Company has an equity incentive plan (“Equity Incentive Plan”) for executive officers, directors and certain non-executive 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 nine months ended September 30, 2018, 156,375 restricted stock units (“RSUs”) were granted to executive officers, directors and certain 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 vests. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11. Subsequent Events On October 29, 2018, the Company entered into the First Amendment (the “Amendment”) to the Administrative Services Agreement with real estate investment funds affiliated with Second City Capital II Corporate and Second City Real Estate II Corporation (“SCRE II”). The terms of the Amendment shall be effective on February 1, 2019 (the “Effective Date”). After February 1, 2019, the annual fees payable to the Company will be $500,000 for the first twelve months following the Effective Date and thereafter an amount equal to 40% of the management fee paid to SCRE II by the fund managed by SCRE II. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
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 condensed 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 Effective January 1, 2018, the Company adopted FASB ASU 2014-09, 2016-02, 2017-05, Effective January 1, 2018, the Company adopted FASB ASU 2016-01, 2016-01 Effective January 1, 2018, the Company adopted FASB ASU 2016-15, Effective January 1, 2018, the Company adopted FASB ASU 2016-18, To be Adopted in Future Years In February 2016, the FASB issued ASU 2016-02, 2016-02 2018-11 non-lease non-lease non-lease non-lease |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Real Estate [Abstract] | |
Schedule of Acquired Properties | During the nine months ended September 30, 2018 and 2017 the Company acquired the following properties: Property Date Acquired Percentage Owned The Quad July 2018 100 % Circle Point July 2018 100 % Pima Center April 2018 100 % Mission City and Sorrento Mesa September 2017 100 % 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 nine months ended September 30, 2018 (in thousands): The Quad Circle Point Pima Center Total Sept. 30, 2018 Land $ 8,079 $ 8,744 $ — $ 16,823 Buildings and improvements 38,060 33,708 42,235 114,003 Tenant improvements 1,798 5,393 2,898 10,089 Acquired intangible assets 4,209 10,299 10,691 25,199 Prepaid expenses and other assets 15 25 95 135 Accounts payable and other liabilities (527 ) (1,157 ) (337 ) (2,021 ) Lease intangible liabilities (1,247 ) (390 ) (129 ) (1,766 ) Total consideration $ 50,387 $ 56,622 $ 55,453 $ 162,462 The following table summarizes the Company’s allocations of the purchase price of assets acquired and liabilities assumed during the nine months ended September 30, 2017 (in thousands): Mission City 2525 Total Sept. 30, Land $ 66,097 $ 10,629 $ 76,726 Buildings and improvements 78,072 33,357 111,429 Tenant improvements 8,393 1,158 9,551 Acquired intangible assets 22,846 3,267 26,113 Prepaid expenses and other assets 140 — 140 Accounts payable and other liabilities (1,507 ) (190 ) (1,697 ) Lease intangible liabilities (3,766 ) (2,186 ) (5,952 ) Total consideration $ 170,275 $ 46,035 $ 216,310 |
Lease Intangibles (Tables)
Lease Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 and December 31, 2017 were comprised as follows (in thousands): Lease Intangible Assets Lease Intangible Liabilities September 30, 2018 Above Market Leases Below Market (1) In Place Leasing Total Below Below Market (1) Total Cost $ 10,477 $ 1,855 $ 82,138 $ 30,421 $ 124,891 $ (12,616 ) $ (138 ) $ (12,754 ) Accumulated amortization (4,599 ) (13 ) (34,698 ) (11,804 ) (51,114 ) 4,026 35 4,061 $ 5,878 $ 1,842 $ 47,440 $ 18,617 $ 73,777 $ (8,590 ) $ (103 ) $ (8,693 ) Lease Intangible Assets Lease Intangible Liabilities December 31, 2017 Above Market Leases Below Market Lease In Place Leasing Total Below Below Market (1) Total Cost $ 9,082 $ — $ 71,426 $ 27,706 $ 108,214 $ (11,608 ) $ (138 ) $ (11,746 ) Accumulated amortization (3,215 ) — (30,613 ) (9,298 ) (43,126 ) 3,065 32 3,097 $ 5,867 $ — $ 40,813 $ 18,408 $ 65,088 $ (8,543 ) $ (106 ) $ (8,649 ) (1) For the below market ground lease asset the Company is the lessee, whereas, for the below market ground lease liability the Company is the lessor. |
Estimated Aggregate Amortization Expense for Lease Intangibles | The estimated aggregate amortization expense for lease intangibles for the next five years and in the aggregate are as follows (in thousands): 2018 $ 4,722 2019 18,534 2020 16,298 2021 13,186 2022 5,667 Thereafter 6,677 $ 65,084 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Indebtedness | The following table summarizes the indebtedness as of September 30, 2018 and December 31, 2017 (in thousands): Property September 30, 2018 December 31, Interest Rate as Maturity Unsecured Credit Facility (1) $ 53,000 $ — LIBOR +1.50 % (2) March 2022 Midland Life Insurance (3) 87,382 88,582 4.34 May 2021 Mission City 47,000 47,000 3.78 November 2027 190 Office Center (4) 41,250 41,250 4.79 October 2025 Circle Point (4) 39,650 — 4.49 September 2028 SanTan (4) 34,823 35,100 4.56 March 2027 Intellicenter (4) 33,562 33,563 4.65 October 2025 The Quad 30,600 — 4.20 September 2028 FRP Collection (4) 29,737 30,174 3.85 September 2023 2525 McKinnon 27,000 27,000 4.24 April 2027 5090 N 40th St 22,000 22,000 3.92 January 2027 AmberGlen (4) 20,000 20,000 3.69 May 2027 Lake Vista Pointe (5) 18,124 18,358 4.28 August 2024 Central Fairwinds (4) 17,966 15,107 4.00 June 2024 FRP Ingenuity Drive (5)(6) 17,000 17,000 4.44 December 2024 Plaza 25 (4)(5) 16,662 16,882 4.10 July 2025 Carillon Point (4) 16,416 16,671 3.50 October 2023 Washington Group Plaza — 32,290 — — Secured Credit Facility (1) — 33,500 — — Total Principal 552,172 494,477 Deferred financing costs, net (6,156 ) (4,968 ) Total $ 546,016 $ 489,509 All interest rates are fixed interest rates with the exception of the unsecured credit facility (“Unsecured Credit Facility”) as explained in footnote 1 below. (1) As of September 30, 2018, the Unsecured Credit Facility had $250 million authorized and $53.0 million was drawn. On March 15, 2018, the Company entered into a $250 million Unsecured Credit Facility which includes an accordion feature that will permit the Company to borrow up to $500 million, subject to customary terms and conditions. The Company’s previous secured credit facility was replaced and repaid in full. The Unsecured Credit Facility matures in March 2022, which may be extended to March 2023 at the Company’s option upon meeting certain conditions. Borrowings under the Unsecured Credit Facility will bear an interest at a rate equal to the LIBOR rate plus a margin of between 140 to 225 basis points depending upon the Company’s consolidated leverage ratio. The Unsecured Credit Facility requires the Company to maintain a fixed charge coverage ratio of no less than 1.50x. (2) As of September 30, 2018, the one month LIBOR rate was 2.26%. (3) 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. (4) The Company is subject to various debt covenants including debt service coverage ratios (“DSCR”) that under certain conditions must be maintained no less than 1.15x, 1.20x, 1.20x, 1.40x, 1.15x, 1.45x, 1.35x, 1.35x and 1.20x respectively for each of 190 Office Center, SanTan, Intellicenter, FRP Collection, AmberGlen, Plaza 25, Carillon Point, Central Fairwinds and Circle Point. The DSCR covenant contained in the loan agreements for Plaza 25, allows for the posting of additional collateral reserves in the event the test is not met. As at September 30, 2018, the covenant was not met and thus the Company has posted all required collateral reserves and is not subject to the test while those reserves are held. (5) Interest on mortgage loan is payable monthly plus principal based on 360 months of amortization. (6) The Company is required to maintain a minimum net worth of $17 million, minimum liquidity of $1.7 million and a DSCR of no less than 1.15x. |
Schedule of Principal Repayments of Debt Payable | The scheduled principal repayments of debt as of September 30, 2018 are as follows (in thousands): 2018 $ 1,106 2019 5,108 2020 6,152 2021 88,174 2022 57,996 Thereafter 393,636 $ 552,172 |
Future Minimum Rent Schedule (T
Future Minimum Rent Schedule (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments under Non-cancellable Operating Leases | Future minimum lease payments to be received as of September 30, 2018 under non-cancellable 2018 26,564 2019 103,464 2020 91,874 2021 80,189 2022 63,121 Thereafter 130,463 $ 495,675 |
Organization and Description _2
Organization and Description of Business - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company formation date | Nov. 26, 2013 |
Operation commencement date | Apr. 21, 2014 |
Real Estate Investments - Sched
Real Estate Investments - Schedule of Acquired Properties through Operating Partnership (Detail) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
The Quad [Member] | ||
Acquisitions [Line Items] | ||
Real estate property, date acquired, asset acquisitions | 2018-07 | |
Real estate property, percentage owned, asset acquisitions | 100.00% | |
Circle Point [Member] | ||
Acquisitions [Line Items] | ||
Real estate property, date acquired, asset acquisitions | 2018-07 | |
Real estate property, percentage owned, asset acquisitions | 100.00% | |
Pima Center [Member] | ||
Acquisitions [Line Items] | ||
Real estate property, date acquired, asset acquisitions | 2018-04 | |
Real estate property, percentage owned, asset acquisitions | 100.00% | |
Mission City and Sorrento Mesa [Member] | ||
Acquisitions [Line Items] | ||
Real estate property, date acquired, asset acquisitions | 2017-09 | |
Real estate property, percentage owned, asset acquisitions | 100.00% | |
2525 McKinnon [Member] | ||
Acquisitions [Line Items] | ||
Real estate property, date acquired, asset acquisitions | 2017-01 | |
Real estate property, percentage owned, asset acquisitions | 100.00% |
Real Estate Investments - Sch_2
Real Estate Investments - Schedule of Allocation of Purchase Price of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Acquisitions [Line Items] | ||
Land, asset acquisitions | $ 16,823 | $ 76,726 |
Buildings and improvements, asset acquisitions | 114,003 | 111,429 |
Tenant improvements, asset acquisitions | 10,089 | 9,551 |
Acquired intangible assets, asset acquisitions | 25,199 | 26,113 |
Prepaid expenses and other assets, asset acquisitions | 135 | 140 |
Accounts payable and other liabilities, asset acquisitions | (2,021) | (1,697) |
Lease intangible liabilities, asset acquisitions | (1,766) | (5,952) |
Total Consideration, asset acquisitions | 162,462 | 216,310 |
The Quad [Member] | ||
Acquisitions [Line Items] | ||
Land, asset acquisitions | 8,079 | |
Buildings and improvements, asset acquisitions | 38,060 | |
Tenant improvements, asset acquisitions | 1,798 | |
Acquired intangible assets, asset acquisitions | 4,209 | |
Prepaid expenses and other assets, asset acquisitions | 15 | |
Accounts payable and other liabilities, asset acquisitions | (527) | |
Lease intangible liabilities, asset acquisitions | (1,247) | |
Total Consideration, asset acquisitions | 50,387 | |
Circle Point [Member] | ||
Acquisitions [Line Items] | ||
Land, asset acquisitions | 8,744 | |
Buildings and improvements, asset acquisitions | 33,708 | |
Tenant improvements, asset acquisitions | 5,393 | |
Acquired intangible assets, asset acquisitions | 10,299 | |
Prepaid expenses and other assets, asset acquisitions | 25 | |
Accounts payable and other liabilities, asset acquisitions | (1,157) | |
Lease intangible liabilities, asset acquisitions | (390) | |
Total Consideration, asset acquisitions | 56,622 | |
Pima Center [Member] | ||
Acquisitions [Line Items] | ||
Buildings and improvements, asset acquisitions | 42,235 | |
Tenant improvements, asset acquisitions | 2,898 | |
Acquired intangible assets, asset acquisitions | 10,691 | |
Prepaid expenses and other assets, asset acquisitions | 95 | |
Accounts payable and other liabilities, asset acquisitions | (337) | |
Lease intangible liabilities, asset acquisitions | (129) | |
Total Consideration, asset acquisitions | $ 55,453 | |
Mission City and Sorrento Mesa [Member] | ||
Acquisitions [Line Items] | ||
Land, asset acquisitions | 66,097 | |
Buildings and improvements, asset acquisitions | 78,072 | |
Tenant improvements, asset acquisitions | 8,393 | |
Acquired intangible assets, asset acquisitions | 22,846 | |
Prepaid expenses and other assets, asset acquisitions | 140 | |
Accounts payable and other liabilities, asset acquisitions | (1,507) | |
Lease intangible liabilities, asset acquisitions | (3,766) | |
Total Consideration, asset acquisitions | 170,275 | |
2525 McKinnon [Member] | ||
Acquisitions [Line Items] | ||
Land, asset acquisitions | 10,629 | |
Buildings and improvements, asset acquisitions | 33,357 | |
Tenant improvements, asset acquisitions | 1,158 | |
Acquired intangible assets, asset acquisitions | 3,267 | |
Accounts payable and other liabilities, asset acquisitions | (190) | |
Lease intangible liabilities, asset acquisitions | (2,186) | |
Total Consideration, asset acquisitions | $ 46,035 |
Real Estate Investments - Addit
Real Estate Investments - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 08, 2018 | May 02, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Real Estate [Line Items] | ||||
Net gain on sale of real estate property | $ 46,980 | $ 12,116 | ||
AmberGlen Property [Member] | ||||
Real Estate [Line Items] | ||||
Proceeds of sale of property | $ 18,900 | |||
Net gain on sale of real estate property | 12,100 | |||
Cost incurred on property sold | $ 2,000 | |||
Washington Group Plaza [Member] | ||||
Real Estate [Line Items] | ||||
Proceeds of sale of property | $ 86,500 | |||
Net gain on sale of real estate property | 47,000 | |||
Cost incurred on property sold | $ 1,700 |
Lease Intangibles - Schedule of
Lease Intangibles - Schedule of Lease Intangibles and Value of Assumed Lease Obligations (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Assets | $ 124,891 | $ 108,214 |
Accumulated amortization, Lease Intangible Assets | (51,114) | (43,126) |
Total, Lease Intangible Assets | 73,777 | 65,088 |
Cost, Lease Intangible Liabilities | (12,754) | (11,746) |
Accumulated amortization, Lease Intangible Liabilities | 4,061 | 3,097 |
Total, Lease Intangible Liabilities | (8,693) | (8,649) |
Above Market Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Assets | 10,477 | 9,082 |
Accumulated amortization, Lease Intangible Assets | (4,599) | (3,215) |
Total, Lease Intangible Assets | 5,878 | 5,867 |
Below Market Ground Lease [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Assets | 1,855 | |
Accumulated amortization, Lease Intangible Assets | (13) | |
Total, Lease Intangible Assets | 1,842 | |
In Place Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Assets | 82,138 | 71,426 |
Accumulated amortization, Lease Intangible Assets | (34,698) | (30,613) |
Total, Lease Intangible Assets | 47,440 | 40,813 |
Leasing Commissions [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Assets | 30,421 | 27,706 |
Accumulated amortization, Lease Intangible Assets | (11,804) | (9,298) |
Total, Lease Intangible Assets | 18,617 | 18,408 |
Below Market Tenant Lease [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Liabilities | (12,616) | (11,608) |
Accumulated amortization, Lease Intangible Liabilities | 4,026 | 3,065 |
Total, Lease Intangible Liabilities | (8,590) | (8,543) |
Below Market Ground Lease [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Liabilities | (138) | (138) |
Accumulated amortization, Lease Intangible Liabilities | 35 | 32 |
Total, Lease Intangible Liabilities | $ (103) | $ (106) |
Lease Intangibles - Estimated A
Lease Intangibles - Estimated Aggregate Amortization Expense for Lease Intangibles (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 4,722 |
2,019 | 18,534 |
2,020 | 16,298 |
2,021 | 13,186 |
2,022 | 5,667 |
Thereafter | 6,677 |
Total | $ 65,084 |
Debt - Summary of Indebtedness
Debt - Summary of Indebtedness (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Indebtedness | $ 552,172 | $ 494,477 |
Deferred financing costs, net | (6,156) | (4,968) |
Total | 546,016 | 489,509 |
Credit Facility [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | 33,500 | |
Credit Facility [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 53,000 | |
Maturity | 2022-03 | |
London Interbank Offered Rate (LIBOR) [Member] | Credit Facility [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate, spread | 1.50% | |
Midland Life Insurance [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 87,382 | 88,582 |
Interest Rate | 4.34% | |
Maturity | 2021-05 | |
Mission City [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 47,000 | 47,000 |
Interest Rate | 3.78% | |
Maturity | 2027-11 | |
190 Office Center [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 41,250 | 41,250 |
Interest Rate | 4.79% | |
Maturity | 2025-10 | |
Circle Point [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 39,650 | |
Interest Rate | 4.49% | |
Maturity | 2028-09 | |
SanTan [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 34,823 | 35,100 |
Interest Rate | 4.56% | |
Maturity | 2027-03 | |
Intellicenter [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 33,562 | 33,563 |
Interest Rate | 4.65% | |
Maturity | 2025-10 | |
The Quad [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 30,600 | |
Interest Rate | 4.20% | |
Maturity | 2028-09 | |
FRP Ingenuity Drive [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 17,000 | 17,000 |
Interest Rate | 4.44% | |
Maturity | 2024-12 | |
2525 McKinnon [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 27,000 | 27,000 |
Interest Rate | 4.24% | |
Maturity | 2027-04 | |
5090 N 40th St [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 22,000 | 22,000 |
Interest Rate | 3.92% | |
Maturity | 2027-01 | |
AmberGlen Property [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 20,000 | 20,000 |
Interest Rate | 3.69% | |
Maturity | 2027-05 | |
Lake Vista Pointe [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 18,124 | 18,358 |
Interest Rate | 4.28% | |
Maturity | 2024-08 | |
Central Fairwinds [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 17,966 | 15,107 |
Interest Rate | 4.00% | |
Maturity | 2024-06 | |
FRP Collection [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 29,737 | 30,174 |
Interest Rate | 3.85% | |
Maturity | 2023-09 | |
Plaza 25 [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 16,662 | 16,882 |
Interest Rate | 4.10% | |
Maturity | 2025-07 | |
Carillon Point [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 16,416 | 16,671 |
Interest Rate | 3.50% | |
Maturity | 2023-10 | |
Washington Group Plaza [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 32,290 |
Debt - Summary of Indebtednes_2
Debt - Summary of Indebtedness (Parenthetical) (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Mar. 15, 2018 | |
Midland Life Insurance [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Loan maturity date | May 6, 2021 | |
Amortization period | 360 months | |
Effective interest rate of loan | 4.34% | |
190 Office Center [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate of loan | 4.79% | |
190 Office Center [Member] | Secured Debt [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
DSCR | 115.00% | |
Circle Point [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate of loan | 4.49% | |
Circle Point [Member] | Secured Debt [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
DSCR | 120.00% | |
SanTan [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate of loan | 4.56% | |
SanTan [Member] | Secured Debt [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
DSCR | 120.00% | |
Intellicenter [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate of loan | 4.65% | |
Intellicenter [Member] | Secured Debt [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
DSCR | 120.00% | |
FRP Ingenuity Drive [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Amortization period | 360 months | |
Effective interest rate of loan | 4.44% | |
Minimum net worth required | $ 17,000,000 | |
Minimum liquidity requirements | $ 1,700,000 | |
FRP Ingenuity Drive [Member] | Secured Debt [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
DSCR | 115.00% | |
AmberGlen Property [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate of loan | 3.69% | |
AmberGlen Property [Member] | Secured Debt [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
DSCR | 115.00% | |
Lake Vista Pointe [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Amortization period | 360 months | |
Effective interest rate of loan | 4.28% | |
Central Fairwinds [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate of loan | 4.00% | |
Central Fairwinds [Member] | Secured Debt [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
DSCR | 135.00% | |
FRP Collection [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate of loan | 3.85% | |
FRP Collection [Member] | Secured Debt [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
DSCR | 140.00% | |
Plaza 25 [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Amortization period | 360 months | |
Effective interest rate of loan | 4.10% | |
Plaza 25 [Member] | Secured Debt [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
DSCR | 145.00% | |
Carillon Point [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate of loan | 3.50% | |
Carillon Point [Member] | Secured Debt [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
DSCR | 135.00% | |
Washington Group Plaza [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Amortization period | 360 months | |
Credit Facility [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Revolving Credit Facility, authorized amount | $ 250,000,000 | $ 250,000,000 |
Revolving Credit Facility, outstanding amount | $ 53,000,000 | |
Loan maturity date | Mar. 31, 2022 | |
Loan expected extended maturity date | Mar. 31, 2023 | |
Revolving Credit Facility, maximum borrowing capacity | $ 500,000,000 | |
Credit Facility [Member] | Unsecured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate, Description | 1.50% | |
One month LIBOR rate | 2.26% | |
Credit Facility [Member] | Unsecured Debt [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Fixed charge coverage ratio | 150.00% | |
Credit Facility [Member] | Unsecured Debt [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate, Description | 1.40% | |
Credit Facility [Member] | Unsecured Debt [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate, Description | 2.25% |
Debt - Schedule of Principal Re
Debt - Schedule of Principal Repayments of Debt Payable (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2,018 | $ 1,106 | |
2,019 | 5,108 | |
2,020 | 6,152 | |
2,021 | 88,174 | |
2,022 | 57,996 | |
Thereafter | 393,636 | |
Total | $ 552,172 | $ 494,477 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Hedges or derivatives | $ 0 | $ 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans payable, fair value | $ 486,800,000 | $ 462,300,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | Aug. 01, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Central Fairwinds Limited Partnership [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage minority interest owned, acquired | 7.00% | ||
Percentage minority interest owned | 97.00% | ||
Second City Funds [Member] | Administrative Services Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue for services | $ 0.5 | $ 0.9 | |
Second City Funds [Member] | Termination and Mutual Release Agreement - Earn-Out [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction | $ 2.4 | ||
Second City Funds [Member] | Central Fairwinds Limited Partnership Minority Interest Purchase Agreements [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction | $ 1.1 |
Future Minimum Rent Schedule -
Future Minimum Rent Schedule - Schedule of Future Minimum Lease Payments under Non-cancellable Operating Leases (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Leases [Abstract] | |
2,018 | $ 26,564 |
2,019 | 103,464 |
2,020 | 91,874 |
2,021 | 80,189 |
2,022 | 63,121 |
Thereafter | 130,463 |
Total future minimum lease payments to be received | $ 495,675 |
Future Minimum Rent Schedule _2
Future Minimum Rent Schedule - Additional Information (Detail) | Sep. 30, 2018 |
Sales Revenue, Services, Net [Member] | Government Contracts Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Percentage of total future minimum lease payments | 10.10% |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Detail) $ / shares in Units, $ in Thousands | Oct. 25, 2018USD ($) | Sep. 30, 2018$ / shares | Sep. 30, 2018USD ($)Installment$ / sharesshares | Sep. 30, 2017USD ($) | Dec. 31, 2017shares |
Class of Stock [Line Items] | |||||
Net proceeds from sale of common stock | $ 42,902 | $ 67,991 | |||
Maximum number of shares issued under Equity Incentive Plan | shares | 1,263,580 | ||||
Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Declared cash dividend distribution per share | $ / shares | $ 0.235 | $ 0.235 | |||
Dividends paid, declared date | Sep. 14, 2018 | ||||
Dividends paid date | Oct. 25, 2018 | ||||
Dividends paid, date of record | Oct. 11, 2018 | ||||
Common stock, shares issued | shares | 3,411,000 | 11,500,000 | |||
Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Declared cash dividend distribution per share | $ / shares | $ 0.4140625 | $ 0.4140625 | |||
Dividends paid, declared date | Sep. 14, 2018 | ||||
Dividends paid date | Oct. 25, 2018 | ||||
Sales Agreement [Member] | |||||
Class of Stock [Line Items] | |||||
Net proceeds from sale of common stock | $ 42,900 | ||||
Sales Agreement [Member] | Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Common stock, shares issued | shares | 3,410,802 | ||||
Gross proceeds from sale of common stock | $ 43,600 | ||||
Subsequent Event [Member] | Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Dividend paid | $ 9,300 | ||||
Subsequent Event [Member] | Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Dividend paid | $ 1,900 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Class of Stock [Line Items] | |||||
Net compensation expense | $ 1,100 | ||||
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 | 156,375 | ||||
Restricted stock units grant date fair value | $ 1,900 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Administrative Services Agreement [Member] - SCRE II [Member] - USD ($) | Feb. 01, 2019 | Oct. 29, 2018 |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Agreement entered date | Oct. 29, 2018 | |
Agreement effective date | Feb. 1, 2019 | |
Scenario, Forecast [Member] | First Twelve Months [Member] | ||
Subsequent Event [Line Items] | ||
Annual payment receivable for services | $ 500,000 | |
Scenario, Forecast [Member] | Thereafter [Member] | ||
Subsequent Event [Line Items] | ||
Management fee as percentage | 40.00% |