Document and Entity Information
Document and Entity Information - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2020 | May 10, 2020 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Entity Registrant Name | Lightstone Real Estate Income Trust Inc. | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8.3 | |
Entity Central Index Key | 0001619312 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Construction in progress | $ 36,588,043 | $ 34,217,619 |
Investments in unconsolidated affiliated real estate entities | 12,316,780 | 26,397,804 |
Cash and cash equivalents | 36,222,804 | 13,730,832 |
Marketable securities, available for sale | 0 | 4,161,781 |
Restricted cash and other assets | 459,689 | 612,275 |
Total Assets | 85,587,316 | 79,120,311 |
Liabilities and Stockholders' Equity | ||
Mortgage payable, net | 15,785,151 | 15,656,241 |
Accounts payable and other accrued expenses | 706,904 | 536,668 |
Due to related parties | 75,956 | 0 |
Distributions payable | 283,914 | 285,841 |
Subordinated advances - related party | 13,311,221 | 13,264,738 |
Total liabilities | 30,163,146 | 29,743,488 |
Commitments and Contingencies | ||
Stockholders' Equity: | ||
Preferred stock, $0.01 par value; 50.0 million shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 200.0 million shares authorized, 8.5 million and 8.6 million shares issued and outstanding, respectively | 85,374 | 85,952 |
Additional paid-in-capital | 71,665,213 | 72,215,685 |
Accumulated other comprehensive income | 0 | 400,089 |
Accumulated deficit | (16,326,417) | (23,324,903) |
Total Stockholders' Equity | 55,424,170 | 49,376,823 |
Total Liabilities and Stockholders' Equity | $ 85,587,316 | $ 79,120,311 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred Stock, par value per share | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value per share | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 200,000,000 | 200,000,000 |
Common Stock, shares issued | 8,500,000 | 8,600,000 |
Common Stock, shares outstanding | 8,500,000 | 8,600,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income: | ||
Investment income | $ 118,164 | $ 1,076,761 |
Gain from disposition of investment in unconsolidated affiliated real estate entity | 8,180,509 | 0 |
Gain on sale of marketable securities | 264,589 | 0 |
Loss from investments in unconsolidated affiliated real estate entities | (392,287) | (1,003,709) |
Total income | 8,170,975 | 73,052 |
Expenses: | ||
General and administrative costs | 226,616 | 301,022 |
Interest expense | 46,483 | 46,098 |
Foreign currency transaction loss | 47,648 | 26,848 |
Total expenses | 320,747 | 373,968 |
Net (loss)/income | $ 7,850,228 | $ (300,916) |
Net (loss)/income per common share, basic and diluted | $ 0.92 | $ (0.03) |
Weighted average number of common shares outstanding, basic and diluted | 8,556,479 | 8,640,912 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||
Net income/(loss) | $ 7,850,228 | $ (300,916) |
Other comprehensive (loss)/income: | ||
Holding (loss)/gain on marketable securities, available for sale | (135,500) | 26,926 |
Reclassification adjustment for gain included in net income/(loss) | (264,589) | 0 |
Other comprehensive (loss)/income | (400,089) | 26,926 |
Comprehensive income/(loss) | $ 7,450,139 | $ (273,990) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Shares | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total | |
BALANCE at Dec. 31, 2018 | $ 86,653 | $ 72,898,310 | $ 0 | $ (14,653,270) | $ 58,331,693 | |
BALANCE (in shares) at Dec. 31, 2018 | 8,665,262 | |||||
Net loss | $ 0 | 0 | 0 | (300,916) | (300,916) | |
Distributions declared (a) | [1] | 0 | 0 | 0 | (1,699,447) | (1,699,447) |
Other comprehensive income | 0 | 0 | 26,926 | 0 | 26,926 | |
Redemption and cancellation of shares | $ (300) | (286,695) | 0 | 0 | (286,995) | |
Redemption and cancellation of shares (in shares) | (30,020) | |||||
BALANCE at Mar. 31, 2019 | $ 86,353 | 72,611,615 | 26,926 | (16,653,633) | 56,071,261 | |
BALANCE (in shares) at Mar. 31, 2019 | 8,635,242 | |||||
BALANCE at Dec. 31, 2018 | $ 86,653 | 72,898,310 | 0 | (14,653,270) | 58,331,693 | |
BALANCE (in shares) at Dec. 31, 2018 | 8,665,262 | |||||
Distributions declared (a) | (900,000) | |||||
BALANCE at Dec. 31, 2019 | $ 85,952 | 72,215,685 | 400,089 | (23,324,903) | 49,376,823 | |
BALANCE (in shares) at Dec. 31, 2019 | 8,595,224 | |||||
Net loss | $ 0 | 0 | 0 | 7,850,228 | 7,850,228 | |
Distributions declared (a) | [2] | 0 | 0 | 0 | (851,742) | (851,742) |
Other comprehensive income | 0 | 0 | (400,089) | 0 | (400,089) | |
Redemption and cancellation of shares | $ (578) | (550,472) | 0 | 0 | (551,050) | |
Redemption and cancellation of shares (in shares) | (57,800) | |||||
BALANCE at Mar. 31, 2020 | $ 85,374 | $ 71,665,213 | $ 0 | $ (16,326,417) | $ 55,424,170 | |
BALANCE (in shares) at Mar. 31, 2020 | 8,537,424 | |||||
[1] | Dividends per share were $0.20. | |||||
[2] | Dividends per share were $0.10. |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ||
Dividends Per Share | $ 0.10 | $ 0.20 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income/(loss) | $ 7,850,228 | $ (300,916) |
Adjustments to reconcile net income/(loss) to cash (used in)/provided by operating activities: | ||
Loss from investments in unconsolidated affiliated real estate entities | 392,287 | 1,003,709 |
Gain from disposition of investment in unconsolidated affiliated real estate entity | (8,180,509) | 0 |
Gain on sale of marketable securities | (264,589) | 0 |
Amortization of discount on debt securities | (30,196) | (2,408) |
Foreign currency transaction loss | 47,648 | 26,848 |
Other non-cash adjustments | 0 | (1,481) |
Changes in assets and liabilities: | ||
Increase in other assets | (115,333) | (59,758) |
Increase/(decrease) in accounts payable and other accrued expenses | 154,452 | (36,643) |
Increase in accrued interest on subordinated advances - related party | 46,483 | 46,098 |
Increase/(decrease) in due to related parties | 75,956 | (82) |
Cash (used in)/provided by operating activities | (23,573) | 675,367 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investment property | (2,225,730) | (1,009,869) |
Proceeds from sale of marketable securities | 4,141,195 | 0 |
Proceeds from disposition of investment in unconsolidated affiliated real estate entity | 21,869,246 | 0 |
Proceeds from preferred investment in related party | 0 | 26,500,000 |
Investments in unconsolidated affiliated real estate entities | 0 | (436,121) |
Cash provided by investing activities | 23,784,711 | 25,054,010 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Redemption and cancellation of common stock | (551,050) | (286,995) |
Distributions paid to Company's common stockholders | (853,668) | (1,701,487) |
Cash used in financing activities | (1,404,718) | (1,988,482) |
Effect of exchange rate changes on cash and cash equivalents | (47,648) | (26,848) |
Net change in cash, cash equivalents and restricted cash | 22,308,772 | 23,714,047 |
Cash, cash equivalents and restricted cash, beginning of year | 14,263,182 | 4,350,896 |
Cash, cash equivalents and restricted cash, end of period | 36,571,954 | 28,064,943 |
Supplemental disclosure of cash flow information: | ||
Distributions declared, but not paid | 283,914 | 585,366 |
Holding loss/gain on marketable securities, available for sale | 400,089 | 26,926 |
Non-cash purchase of investment property | 395,000 | 0 |
Amortization of deferred financing costs included in construction in progress | $ 128,910 | $ 0 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS - Cash, Cash Equivalents and Restricted Cash - USD ($) | Mar. 31, 2020 | Mar. 31, 2019 |
The following is a summary of the Company's cash, cash equivalents, and restricted cash total as presented in our statements of cash flows for the periods presented: | ||
Cash and cash equivalents | $ 36,222,804 | $ 28,064,943 |
Restricted cash | 349,150 | 0 |
Total cash, cash equivalents and restricted cash | $ 36,571,954 | $ 28,064,943 |
Business and Organization
Business and Organization | 3 Months Ended |
Mar. 31, 2020 | |
Business and Organization | |
Business and Organization | 1. Business and Organization Lightstone Real Estate Income Trust Inc. (‘‘Lightstone Income Trust’’), is a Maryland corporation, formed on September 9, 2014, which elected to qualify as a real estate investment trust ("REIT") for U.S. federal income tax purposes beginning with the taxable year ended December 31, 2016. Lightstone Income Trust, together with its subsidiaries is collectively referred to as the ‘‘Company’’ and the use of ‘‘we,’’ ‘‘our,’’ ‘‘us’’ or similar pronouns refers to Lightstone Income Trust or the Company as required by the context in which any such pronoun is used. The Company has and will continue to seek to originate, acquire and manage a diverse portfolio of real estate and real estate-related investments; including investments in mezzanine loans, first lien mortgage loans, second lien mortgage loans, bridge loans and preferred equity interests, with a focus on development investments and investments intended to finance development or redevelopment opportunities. The Company may also invest in debt and derivative securities related to real estate assets. A substantial portion of the Company’s investments by value may be secured by or related to properties or entities advised by, or wholly or partially, directly or indirectly owned by, The Lightstone Group, LLC (the "Sponsor"), its affiliates or by other real estate investment programs it sponsors. Although the Company expects that most of its investments will be of these types, it may make other investments. In fact, it may invest in whatever types of real estate-related investments that it believes are in its best interests. The Company currently has one operating segment. As of March 31, 2020, it wholly owned and consolidated the operating results of one development project, the Williamsburg Moxy Hotel and held an unconsolidated approximate 33.3% membership interest in 40 East End Ave. Pref Member LLC (the “40 East End Ave. Joint Venture”). The Company accounts for its unconsolidated membership interest in the 40 East End Ave. Joint Venture in accordance with the equity method of accounting. The Company’s advisor is Lightstone Real Estate Income LLC (the “Advisor”), which is majority owned by David Lichtenstein. On September 12, 2014, the Advisor contributed $200,000 for 20,000 shares of common stock (“Common Shares”), or $10.00 per share of the Lightstone Income Trust. Mr. Lichtenstein also is a majority owner of the equity interests of The Lightstone Group, LLC. The Lightstone Group, LLC served as the Company’s Sponsor during its initial public offering (the “Offering”) which terminated on March 31, 2017. Mr. Lichtenstein owns 222,222 Common Shares which were issued on June 15, 2015 for $2.0 million, or $9.00 per share. Subject to the oversight of the Company’s board of directors (the “Board of Directors”), the Advisor has primary responsibility for making investment decisions on behalf of the Company and managing its day-to-day operations. Mr. Lichtenstein also acts as the Company’s Chairman and Chief Executive Officer. As a result, he exerts influence over but does not control Lightstone Income Trust. The Company does not have any employees. The Advisor receives compensation and fees for services related to the investment and management of the Company’s assets. The Advisor has certain affiliates which may manage the properties the Company acquires. However, the Company may also contract with other unaffiliated third-party property managers. The Company’s Common Shares are not currently listed on a national securities exchange. The Company may seek to list its Common Shares for trading on a national securities exchange only if a majority of its independent directors believe listing would be in the best interest of its stockholders. The Company does not intend to list its Common Shares at this time. The Company does not anticipate that there would be any market for its Common Shares until they are listed for trading. In the event the Company does not begin the process of achieving a liquidity event prior to March 31, 2022, which is the fifth anniversary of the termination of its Offering, its charter requires either (a) an amendment to our charter to extend the deadline to begin the process of achieving a liquidity event, or (b) the holding of a stockholders meeting to vote on a proposal for an orderly liquidation of its portfolio. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The accompanying unaudited interim consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair presentation of the results for the periods presented. The accompanying unaudited consolidated financial statements of the Lightstone Income Trust and Subsidiaries have been prepared in accordance with generally accepted accounting principles in the United States of America (‘‘GAAP’’) for interim financial information and with the instructions to Form 10‑Q and Rule 8‑03 of Regulation S-X. The consolidated financial statements have been prepared in accordance with GAAP. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during a reporting period. The most significant assumptions and estimates relate to the valuation of real estate debt investments and securities, the valuation of the investment in related party and revenue recognition. Application of these assumptions requires the exercise of judgment as to future uncertainties and, as a result, actual results could differ from these estimates. The consolidated balance sheet as of December 31, 2019 included herein has been derived from the consolidated balance sheet included in the Company's Annual Report on Form 10-K. The unaudited statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Lightstone Income Trust and Subsidiaries (over which the Company exercises financial and operating control). All inter-company accounts and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary. Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash and other assets, mortgage payable, accounts payable and other accrued expenses and due to related parties approximate their fair values because of the short maturity of these instruments. COVID-19 Pandemic The global impact of the COVID-19 pandemic has been rapidly evolving and, as cases of the illness caused by the virus have continued to be identified in additional countries, many countries, including the United States, have reacted by instituting quarantines and restrictions on travel. In addition, all the states where we operate properties and have development projects have reacted to the COVID-19 pandemic by instituting quarantines, restrictions on travel, “shelter in place” rules, restrictions on types of business that may continue to operate and/or restrictions on types of construction projects that may continue. Many states have recently announced guidelines to reduce certain of these restrictions. Because the Company’s Williamsburg Moxy Hotel development project is in its pre-development stage, the COVID-19 pandemic has not currently affected its associated pre-development activities. The Company’s other investment is its approximately 33.3% membership interest in the 40 East End Ave. Joint Venture, which is developing a substantially completed luxury residential condominium project (the “40 East End Avenue Project”) located at the corner of 81st Street and East End Avenue in the Upper East Side neighborhood of New York City. The 40 East End Avenue Project received its final temporary certificates of occupancy, or TCO, in March 2020. The extent to which the Company’s business may be affected by the current COVID-19 pandemic will largely depend on both current and future developments, including its duration, spread and treatment, and related travel advisories and restrictions, all of which are highly uncertain and cannot be reasonably predicted. If the Company’s Williamsburg Moxy Hotel development project and/or investment in the 40 East End Ave. Joint Venture is negatively impacted for an extended period because development activities and/or sales of condominium units are delayed, the Company’s business and financial results could be materially and adversely impacted. New Accounting Pronouncements The Company has reviewed and determined that recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations. |
Williamsburg Moxy Hotel
Williamsburg Moxy Hotel | 3 Months Ended |
Mar. 31, 2020 | |
Williamsburg Moxy Hotel | |
Williamsburg Moxy Hotel | 3. Williamsburg Moxy Hotel On July 17, 2019, the Company acquired four adjacent parcels of land located at 353-361 Bedford Avenue in Brooklyn, New York (collectively, the “Williamsburg Land”), from unaffiliated third parties, for an aggregate purchase price of approximately $30.4 million, excluding closing and other acquisition related costs, on which it intends to develop and construct a 210-room branded hotel (the “Williamsburg Moxy Hotel”). As of March 31, 2020, the Williamsburg Moxy Hotel was in pre-development and not under construction. In connection with the acquisition of the Williamsburg Land, the Advisor earned an acquisition fee equal to 1.00% of the gross aggregate contractual purchase price, which was approximately $0.3 million. As of March 31, 2020, the Company incurred and capitalized to construction in progress an aggregate of $36.6 million consisting of acquisition and other development costs attributable to the Williamsburg Moxy Hotel. During the three months ended March 31, 2020, the Company capitalized interest of approximately $0.3 million in connection with the development of the Williamsburg Moxy Hotel. Williamsburg Mortgage In connection with the closing of the acquisition of the Williamsburg Land, the Company simultaneously entered into a mortgage loan collateralized by the Williamsburg Land (the “Williamsburg Mortgage”) for $16.0 million. The Williamsburg Mortgage has a term of one year, with two, six-month extension options, bears interest at 4.50% and requires monthly interest-only payments of $60,000 through its maturity with the entire unpaid balance due upon maturity. As of March 31, 2020, the outstanding principal balance of the Williamsburg Mortgage was $16.0 million, which is presented, net of deferred financing fees of $0.2 million, on the consolidated balance sheet and is classified as Mortgage Payable, net. Assuming the Company exercises the first of the two extension options; its interest payments will aggregate approximately $0.5 million for the remainder of 2020. The Williamsburg Mortgage initially matures in July 2020 but has two, six-month extension options, which the Company can exercise by providing the lender with notice of its intent to extend. The Company currently plans to exercise the extension options unless it obtains construction financing on or before any of the applicable maturity dates. The Company has no other maturities of mortgage debt over the next 12 months. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliated Real Estate Entities | 3 Months Ended |
Mar. 31, 2020 | |
Investments in Unconsolidated Affiliated Real Estate Entities | |
Investments in Unconsolidated Affiliated Real Estate Entities | 4. Investments in Unconsolidated Affiliated Real Estate Entities The entities listed below are or were partially owned by the Company. The Company accounts for these investments under the equity method of accounting as the Company exercises significant influence, but does not exercise financial and operating control over these entities. A summary of the Company’s investments in the unconsolidated affiliated real estate entities is as follows: As of Entity Date of Ownership Ownership % March 31, 2020 December 31, 2019 RP Maximus Cove, L.L.C. (the "Cove Joint Venture") January 31, 2017 $ — $ 13,846,410 40 East End Ave. Pref Member LLC ( “40 East End Ave. Joint Venture”) March 31, 2017 12,316,780 12,551,394 Total investments in unconsolidated affiliated real estate entities $ 12,316,780 $ 26,397,804 The Cove Joint Venture On January 31, 2017, the Company, through its wholly owned subsidiary, REIT IV COVE LLC along with LSG Cove LLC, an affiliate of the Sponsor and a related party, REIT III COVE LLC, a subsidiary of the operating partnership of Lightstone Value Plus Real Estate Investment Trust III, Inc., a real estate investment trust also sponsored by the Company’s Sponsor and a related party and Maximus Cove Investor LLC (“Maximus”), an unrelated third party, completed the acquisition of all of RP Cove, L.L.C’s membership interest in RP Maximus Cove, L.L.C. (the “Cove Joint Venture”) for aggregate consideration of approximately $255.0 million (the “Cove Transaction”). The Cove Joint Venture owns and operates The Cove at Tiburon (the “Cove”), a 281‑unit, luxury waterfront multifamily residential property located in Tiburon, California. Prior to entering into the Cove Transaction, Maximus previously owned a separate noncontrolling interest in the Cove Joint Venture. The Company paid approximately $20.0 million for a 22.5% membership interest in the Cove Joint Venture. The Company’s ownership interest in the Cove Joint Venture was a non-managing interest. The Company determined that the Cove Joint Venture was a variable interest entity but the Company was not the primary beneficiary. The Company accounted for its ownership interest in the Cove Joint Venture in accordance with the equity method of accounting because it exerted significant influence over but did not control the Cove Joint Venture. All capital contributions and distributions of earnings from the Cove Joint Venture were made on a pro rata basis in proportion to each member’s equity interest percentage. Any distributions in excess of earnings from the Cove Joint Venture are made to the members pursuant to the terms of the Cove Joint Venture’s operating agreement. An affiliate of Maximus is the asset manager of the Cove and receives certain fees as defined in the Property Management Agreement for the management of the Cove. The Company commenced recording its allocated portion of profit/loss and cash distributions beginning as of January 31, 2017 with respect to its 22.5% membership interest in the Cove Joint Venture. Subsequent to the Company’s acquisition of its 22.5% membership interest in the Cove Joint Venture, it made an aggregate of $2.6 million of additional capital contributions and received aggregate distributions of $0.9 million. All of these additional capital contributions were made and distributions received in periods prior to 2020. On December 17, 2019, REIT IV Cove LLC, REIT III Cove LLC, LSG Cove LLC (collectively, the “Redeemers”), Maximus and the Cove Joint Venture entered into a redemption agreement (the “Redemption Agreement”), pursuant to which the Cove Joint Venture would redeem the membership interests of the Redeemers for an aggregate redemption price of approximately $87.6 million. On February 12, 2020, the Cove Joint Venture completed the redemption of the Redeemers’ membership interests in the Cove Joint Venture pursuant to the terms of the Redemption Agreement for an aggregate redemption price of approximately $87.6 million. In connection, with the redemption of its 22.5% membership interest in the Cove Joint Venture, the Company received proceeds of approximately $21.9 million which resulted in a gain on the disposition of investment in unconsolidated affiliated real estate entity of approximately $8.2 million, which is included on the consolidated statements of operations for the three months ended March 31, 2020. As a result of the redemption of its 22.5% membership interest in the Cove Joint Venture, the Company no longer has an ownership interest in the Cove Joint Venture. The Cove Joint Venture Financial Information The Company’s carrying value of its interest in the Cove Joint Venture differed from its share of member’s equity reported in the condensed balance sheet of the Cove Joint Venture because the Company’s basis of its investment was in excess of the historical net book value of the Cove Joint Venture. The Company’s additional basis was allocated to depreciable assets was recognized on a straight-line basis over the lives of the appropriate assets. The following table represents the condensed income statements for the Cove Joint Venture: For the For the Period January 1 Three Months through Ended (amounts in thousands) February 12, 2020 March 31, 2019 Revenue $ 1,375 $ 3,693 Property operating expenses 430 1,240 General and administrative costs 13 42 Depreciation and amortization 960 2,837 Operating loss (28) (426) Interest expense and other, net (652) (2,934) Net loss $ (680) $ (3,360) Company's share of net loss (22.50%) $ (153) $ (756) Additional depreciation and amortization expense (1) (5) (10) Company's loss from investment $ (158) $ (766) The following table represents the condensed balance sheet for the Cove Joint Venture: As of (amounts in thousands) December 31, 2019 Real estate, at cost (net) $ 138,045 Cash and restricted cash 1,491 Other assets 1,141 Total assets $ 140,677 Mortgage payable, net $ 178,353 Other liabilities 1,339 Members' deficit (1) (39,015) Total liabilities and members' deficit $ 140,677 (1) The adjustment to depreciation and amortization expense relates to the difference between the Company’s basis in the Cove Joint Venture and the amount of the underlying equity in net assets of the Cove Joint Venture. 40 East End Ave. Joint Venture On March 31, 2017, the Company entered into a joint venture agreement (the “40 East End Ave. Transaction”) with SAYT Master Holdco LLC, an entity majority-owned and controlled by David Lichtenstein, who also majority owns and controls the Company’s Sponsor, and a related party, (the “40 East End Seller”), providing for the Company to acquire approximately 33.3% of the 40 East End Seller’s approximate 100% membership interest in the 40 East End Ave. Joint Venture for aggregate consideration of approximately $10.3 million. The Company’s ownership interest in the 40 East End Ave. Joint Venture is a non-managing interest. Because the Company exerts significant influence over but does not control the 40 East End Ave. Joint Venture, it accounts for its ownership interest in the 40 East End Ave. Joint Venture in accordance with the equity method of accounting. All contributions to and distributions of earnings from the 40 East End Ave. Joint Venture are made on a pro rata basis in proportion to each member’s equity interest percentage. Any distributions in excess of earnings from the 40 East End Ave. Joint Venture are made to the members pursuant to the terms of its operating agreement. The Company commenced recording its allocated portion of earnings and cash distributions, if any, from the 40 East End Ave. Joint Venture beginning as of March 31, 2017 with respect to its membership interest of approximately 33.3% in the 40 East End Ave. Joint Venture. Additionally, Lightstone Value Plus Real Estate Investment Trust, Inc. (“Lightstone I”), a real estate investment trust also sponsored by our Sponsor, made $30.0 million of preferred equity contributions (the "Preferred Contributions") to a subsidiary of the 40 East End Ave. Joint Venture, pursuant to an instrument that entitles Lightstone I to monthly preferred distributions at a rate of 12% per annum. No distributions may be paid to the members until the Preferred Contributions are redeemed in full. The 40 East End Ave. Joint Venture, through affiliates, is developing the 40 East End Avenue Project, a substantially completed luxury residential 29-unit condominium project located at the corner of 81st Street and East End Avenue in the Upper East Side neighborhood of New York City. The 40 East End Avenue Project received its final TCO in March 2020. On March 21, 2017, the 40 East End Ave. Joint Venture obtained financing from a financial institution of up to $85.3 million (the “40 East End Ave. Mortgage”) for the land acquisition and construction of the 40 East End Ave. Project. On December 19, 2019, the 40 East End Ave. Joint Venture entered into a loan (the “Condo Loan”) with a financial institution of up to $95.2 million, of which approximately $90.2 million was funded at closing and the remaining availability of $5.0 million will be advanced upon satisfaction of certain conditions, including obtaining final TCO for the 40 East End Ave. Project, which was obtained in March 2020. The Condo Loan matures in two years and bears interest at Libor plus 2.45%, which is payable monthly, and principal payments are required to be made from condominium sales proceeds. If principal paydowns from condominium sales proceeds do not reduce the outstanding principal balance of the Condo Loan to at least $81.0 million and $73.0 million as of December 19, 2020 and June 19, 2021, respectively, then the 40 East End Ave. Joint Venture will be required to make balloon payments in the amounts necessary to reach these thresholds. At closing, the 40 East End Ave. Joint Venture used a portion of the proceeds from the Condo Loan to (i) fully repay the then outstanding principal balance of $80.3 million plus accrued and unpaid interest of $0.2 million for the 40 East End Ave. Mortgage and (ii) redeem $9.5 million of Lightstone I’s Preferred Contributions. In connection with the refinancing, the 40 East End Ave. Joint Venture recognized a loss on the early extinguishment of debt of approximately $0.8 million during the fourth quarter of 2019, of which the Company’s proportionate share was approximately $0.3 million. The Company’s Sponsor and its affiliates (collectively, the “40 East End Guarantors”) have provided certain guarantees with respect to the Condo Loan and the members have agreed to reimburse the 40 East End Guarantors for any balance that may become due under the guarantees (the “40 East End Guarantee”), of which the Company’s share is approximately 33.3%. The Company has determined that the fair value of its share of the 40 East End Guarantee is immaterial. On December 26, 2019, the 40 East End Ave. Joint Venture redeemed an additional $3.5 million of Lightstone I’s Preferred Contributions. As a result, Lightstone I’s remaining outstanding Preferred Contributions were $17.0 million as of December 31, 2019. Subsequently, an additional $11.0 million of Lightstone I’s Preferred Contributions were redeemed on February 13, 2020 reducing Lightstone I’s Preferred Contributions to $6.0 million as of March 31, 2020. Subsequent to the Company’s acquisition through March 31, 2020, it has made an aggregate of $4.6 million of additional capital contributions to the 40 East End Ave. Joint Venture. The 40 East End Ave. Joint Venture Financial Information The following table represents the condensed income statements for the 40 East End Ave. Joint Venture: For the For the Three Months Ended Three Months Ended (amounts in thousands) March 31, 2020 March 31, 2019 Revenues $ 12,902 $ — Cost of goods sold 11,581 — Other expenses 703 393 Depreciation and amortization — 320 Operating income/(loss) 618 (713) Interest expense and other, net (1,322) — Net loss $ (704) $ (713) Company's share of net loss (33.3%) $ (234) $ (238) The following table represents the condensed balance sheets for the 40 East End Ave. Joint Venture: As of As of (amounts in thousands) March 31, 2020 December 31, 2019 Real estate inventory $ 129,230 $ 139,170 Cash and restricted cash 5,966 7,739 Other assets 192 637 Total assets $ 135,388 $ 147,546 Mortgage payable, net 89,235 89,102 Other liabilities 1,817 2,404 Members' capital 44,336 56,040 Total liabilities and members' capital $ 135,388 $ 147,546 |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Marketable Securities and Fair Value Measurements | |
Marketable Securities and Fair Value Measurements | 5. Marketable Securities and Fair Value Measurements Marketable Securities The following is a summary of the Company’s available for sale securities as of the dates indicated: As of December 31, 2019 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Israeli Bonds $ 3,761,692 $ 400,089 $ — $ 4,161,781 During 2019, the Company acquired unsecured corporate bonds that are publicly traded on the Tel Aviv Stock Exchange (the “Israeli Bonds”) and are denominated in ILS. The fair value of the Israeli Bonds was translated using period-end exchange rates. Gains and losses resulting from the changes in exchange rates and market prices from period to period were reported as a component of accumulated other comprehensive income. As of December 31, 2019, the Company did not recognize any impairment charges. During the three months ended March 31, 2020, the Company sold all of the Israeli Bonds and recognized a gain on the sale of marketable securities of $0.3 million. The fair value of the Company’s investments in debt securities were measured using quoted prices in markets that were not active. As of December 31, 2019, all of the Company’s debt securities were classified as Level 2 assets and there were no transfers between the level classifications during the year ended December 31, 2019. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity | |
Stockholders' Equity | 6. Stockholders’ Equity Earnings per Share The Company had no potentially dilutive securities outstanding during the periods presented. Accordingly, earnings per share is calculated by dividing net loss by the weighted-average number of shares of common stock outstanding during the applicable period. Share Repurchase Program The Company’s share repurchase program may provide its stockholders with limited, interim liquidity by enabling them to sell their shares of common stock back to us, subject to restrictions. From the Company’s date of inception through December 31, 2019, it repurchased 395,941 shares of common stock pursuant to its share repurchase program at an average price of $9.48 per share. For the three months ended March 31, 2020, the Company repurchased 57,800 shares of common stock pursuant to its share repurchase program at an average price of $9.53 per share. On March 25, 2020, the Board of Directors amended the share repurchase program to remove stockholder notice requirements and also approved the suspension of all redemptions effective immediately. Distributions On January 15, 2020, February 15, 2020 and March 15, 2020, the Company paid distributions to its stockholders for the months ended December 31, 2019, January 31, 2020 and February 29, 2020, respectively, totaling $0.9 million. On April 29, 2020, the Company paid a distribution to its stockholders for the month ended March 31, 2020 totaling $0.3 million. These distributions were all paid in cash. On March 25, 2020, the Board of Directors determined to suspend regular monthly distributions for months ending after March 2020. Future distributions, if any, declared will be at the discretion of the Company’s Board of Directors based on their analysis of the Company’s performance over the previous periods and expectations of performance for future periods. The Board of Directors will consider various factors in its determination, including but not limited to, the sources and availability of capital, operating and interest expenses and the Company’s ability to refinance near-term debt. In addition, the Company currently intends to continue to comply with the REIT distribution requirement that it annually distribute no less than 90% of its taxable income. The Company cannot assure that any future distributions will be made or that it will maintain any particular level of distributions that it has previously established or may establish. |
Related Party Transaction and O
Related Party Transaction and Other Arrangements | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transaction and Other Arrangements | |
Related Party Transaction and Other Arrangements | 7. Related Party Transaction and Other Arrangements The Company has agreements with the Advisor to pay certain fees, in exchange for services performed by the Advisor and/or its affiliated entities. The following table represents the fees incurred associated with the payments to the Company’s Advisor for the periods indicated: For the Three Months Ended March 31, 2020 2019 Asset management fees (general and administrative costs) $ 77,313 $ 163,349 Subordinated Advances – Related Party On March 18, 2016, the Company and its Sponsor entered into the Subordinated Agreement, a subordinated unsecured loan agreement, pursuant to which the Sponsor made aggregate principal advances of $12.6 million through March 31, 2017 (the termination date of the Offering). The outstanding principal advances bear interest at a rate of 1.48%, but no interest or principal is due or payable to the Sponsor until holders of the Company’s Common Shares have received liquidation distributions equal to their respective net investments (defined as $10.00 per Common Share) plus a cumulative, pre-tax, non-compounded annual return of 8.0% on their respective net investments. Distributions in connection with a liquidation of the Company initially will be made to holders of its Common Shares until holders of its Common Shares have received liquidation distributions equal to their respective net investments plus a cumulative, pre-tax, non-compounded annual return of 8.0% on their respective net investments. Thereafter, only if additional liquidating distributions are available, the Company will be obligated to repay the outstanding principal advances and related accrued interest to the Sponsor, as described in the Subordinated Agreement. In the event that additional liquidation distributions are available after the Company repays its holders of common stock their respective net investments plus their 8% return on investment and then the outstanding principal advances under the Subordinated Agreement and accrued interest to its Sponsor, such additional distributions will be paid to holders of its Common Shares and its Sponsor: 85.0% of the aggregate amount will be payable to holders of the Company’s Common Shares and the remaining 15.0% will be payable to the Sponsor. The principal advances and the related interest are subordinate to all of the Company’s obligations as well as to the holders of its Common Shares in an amount equal to the shareholder’s net investment plus a cumulative, pre-tax, non-compounded annual return of 8.0% and only potentially payable in the event of a liquidation of the Company. In connection with the termination of the Offering, on March 31, 2017, the Company and the Sponsor simultaneously terminated the Subordinated Agreement. As a result of the termination, the Sponsor is no longer obligated to make any additional principal advances to the Company. Interest will continue to accrue on the outstanding principal advances and repayment, if any, of the principal advances and related accrued interest will be made according to the terms of the Subordinated Agreement disclosed above. As of both March 31, 2020 and December 31, 2019, an aggregate of approximately $12.6 million of principal advances have been funded, which along with the related accrued interest of $679,208 and $632,725, respectively, are classified as Subordinated Advances – Related Party, a liability on the consolidated balance sheets. During the three months ended March 31, 2020 and 2019, the Company accrued $46,483 and $46,098, respectively of interest on the principal advances. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 8 . Commitments and Contingencies Legal Proceedings From time to time in the ordinary course of business, the Company may become subject to legal proceedings, claims or disputes. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Lightstone Income Trust and Subsidiaries (over which the Company exercises financial and operating control). All inter-company accounts and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary. |
Financial Instruments | Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash and other assets, mortgage payable, accounts payable and other accrued expenses and due to related parties approximate their fair values because of the short maturity of these instruments. COVID-19 Pandemic The global impact of the COVID-19 pandemic has been rapidly evolving and, as cases of the illness caused by the virus have continued to be identified in additional countries, many countries, including the United States, have reacted by instituting quarantines and restrictions on travel. In addition, all the states where we operate properties and have development projects have reacted to the COVID-19 pandemic by instituting quarantines, restrictions on travel, “shelter in place” rules, restrictions on types of business that may continue to operate and/or restrictions on types of construction projects that may continue. Many states have recently announced guidelines to reduce certain of these restrictions. Because the Company’s Williamsburg Moxy Hotel development project is in its pre-development stage, the COVID-19 pandemic has not currently affected its associated pre-development activities. The Company’s other investment is its approximately 33.3% membership interest in the 40 East End Ave. Joint Venture, which is developing a substantially completed luxury residential condominium project (the “40 East End Avenue Project”) located at the corner of 81st Street and East End Avenue in the Upper East Side neighborhood of New York City. The 40 East End Avenue Project received its final temporary certificates of occupancy, or TCO, in March 2020. The extent to which the Company’s business may be affected by the current COVID-19 pandemic will largely depend on both current and future developments, including its duration, spread and treatment, and related travel advisories and restrictions, all of which are highly uncertain and cannot be reasonably predicted. If the Company’s Williamsburg Moxy Hotel development project and/or investment in the 40 East End Ave. Joint Venture is negatively impacted for an extended period because development activities and/or sales of condominium units are delayed, the Company’s business and financial results could be materially and adversely impacted. |
New Accounting Pronouncements | New Accounting Pronouncements The Company has reviewed and determined that recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations. |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliated Real Estate Entities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Schedule of equity method investments | A summary of the Company’s investments in the unconsolidated affiliated real estate entities is as follows: As of Entity Date of Ownership Ownership % March 31, 2020 December 31, 2019 RP Maximus Cove, L.L.C. (the "Cove Joint Venture") January 31, 2017 $ — $ 13,846,410 40 East End Ave. Pref Member LLC ( “40 East End Ave. Joint Venture”) March 31, 2017 12,316,780 12,551,394 Total investments in unconsolidated affiliated real estate entities $ 12,316,780 $ 26,397,804 |
Cove Joint Venture | |
Schedule of equity method investments condensed income statements | The following table represents the condensed income statements for the Cove Joint Venture: For the For the Period January 1 Three Months through Ended (amounts in thousands) February 12, 2020 March 31, 2019 Revenue $ 1,375 $ 3,693 Property operating expenses 430 1,240 General and administrative costs 13 42 Depreciation and amortization 960 2,837 Operating loss (28) (426) Interest expense and other, net (652) (2,934) Net loss $ (680) $ (3,360) Company's share of net loss (22.50%) $ (153) $ (756) Additional depreciation and amortization expense (1) (5) (10) Company's loss from investment $ (158) $ (766) |
Schedule of equity method investments condensed balance sheet | The following table represents the condensed balance sheet for the Cove Joint Venture: As of (amounts in thousands) December 31, 2019 Real estate, at cost (net) $ 138,045 Cash and restricted cash 1,491 Other assets 1,141 Total assets $ 140,677 Mortgage payable, net $ 178,353 Other liabilities 1,339 Members' deficit (1) (39,015) Total liabilities and members' deficit $ 140,677 (1) The adjustment to depreciation and amortization expense relates to the difference between the Company’s basis in the Cove Joint Venture and the amount of the underlying equity in net assets of the Cove Joint Venture. |
40 East End Ave. Joint Venture [Member] | |
Schedule of equity method investments condensed income statements | The following table represents the condensed income statements for the 40 East End Ave. Joint Venture: For the For the Three Months Ended Three Months Ended (amounts in thousands) March 31, 2020 March 31, 2019 Revenues $ 12,902 $ — Cost of goods sold 11,581 — Other expenses 703 393 Depreciation and amortization — 320 Operating income/(loss) 618 (713) Interest expense and other, net (1,322) — Net loss $ (704) $ (713) Company's share of net loss (33.3%) $ (234) $ (238) |
Schedule of equity method investments condensed balance sheet | The following table represents the condensed balance sheets for the 40 East End Ave. Joint Venture: As of As of (amounts in thousands) March 31, 2020 December 31, 2019 Real estate inventory $ 129,230 $ 139,170 Cash and restricted cash 5,966 7,739 Other assets 192 637 Total assets $ 135,388 $ 147,546 Mortgage payable, net 89,235 89,102 Other liabilities 1,817 2,404 Members' capital 44,336 56,040 Total liabilities and members' capital $ 135,388 $ 147,546 |
Marketable Securities and Fai_2
Marketable Securities and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Marketable Securities and Fair Value Measurements | |
Schedule of Available-for-sale Securities Reconciliation | The following is a summary of the Company’s available for sale securities as of the dates indicated: As of December 31, 2019 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Israeli Bonds $ 3,761,692 $ 400,089 $ — $ 4,161,781 |
Related Party Transaction and_2
Related Party Transaction and Other Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transaction and Other Arrangements | |
Schedule of Fees and offering costs | The following table represents the fees incurred associated with the payments to the Company’s Advisor for the periods indicated: For the Three Months Ended March 31, 2020 2019 Asset management fees (general and administrative costs) $ 77,313 $ 163,349 |
Business and Organization (Deta
Business and Organization (Details) | Jun. 15, 2015USD ($)$ / sharesshares | Sep. 12, 2014USD ($)$ / sharesshares | Mar. 31, 2020segment | Mar. 31, 2017 |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Date of incorporation | Sep. 9, 2014 | |||
Number of operating segment | segment | 1 | |||
Mr. David Lichtenstein | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Membership interest (as a percentage) | 100.00% | |||
40 East End Ave. Joint Venture [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Membership interest (as a percentage) | 33.30% | |||
Lightstone Real Estate Income LLC [Member] | Mr. David Lichtenstein | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Stock Issued During Period, Value, New Issues | $ | $ 200,000 | |||
Stock Issued During Period, Shares, New Issues | shares | 20,000 | |||
Shares issued, price per share | $ / shares | $ 10 | |||
Mr. David Lichtenstein | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | shares | 222,222 | |||
Shares issued, price per share | $ / shares | $ 9 | |||
Proceeds from issuance of common stock | $ | $ 2,000,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional information (Details) | Mar. 31, 2020 |
40 East End Ave. Joint Venture [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Membership interest (as a percentage) | 33.30% |
Williamsburg Moxy Hotel (Detail
Williamsburg Moxy Hotel (Details) | Jul. 17, 2019USD ($)roomitem | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Property, Plant and Equipment [Line Items] | |||
Construction in Progress, Gross | $ 36,588,043 | $ 34,217,619 | |
Williamsburg Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Additions | $ 30,400,000 | ||
Number of Rooms Expects to Develop and Construct | room | room | 210 | ||
Percentage of Brokerage Fee | 1.00% | ||
Payments for Brokerage Fees | $ 300,000 | ||
Construction in Progress, Gross | 36,600,000 | ||
Capitalized interest | 300,000 | ||
Secured Debt [Member] | Williamsburg Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Interest payment | 60,000 | ||
Mortgage payable, gross | $ 16,000,000 | ||
Debt Instrument, Term | 1 year | ||
Renewal term period | 6 months | ||
Number of Extensions For Term Of Loan | item | item | 2 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||
Mortgage payable, net | 16,000,000 | ||
Deferred financing fees | 200,000 | ||
Debt Instrument, Periodic Payment, Interest | $ 500,000 |
Investments in Unconsolidated_3
Investments in Unconsolidated Affiliated Real Estate Entities (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||
Total investments in unconsolidated affiliated real estate entities | $ 12,316,780 | $ 26,397,804 |
Cove Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Date of Ownership | Jan. 31, 2017 | |
Equity Method Investment, Ownership Percentage | 22.50% | |
Total investments in unconsolidated affiliated real estate entities | 13,846,410 | |
40 East End Ave. Joint Venture [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Date of Ownership | Mar. 31, 2017 | |
Equity Method Investment, Ownership Percentage | 33.30% | |
Total investments in unconsolidated affiliated real estate entities | $ 12,316,780 | $ 12,551,394 |
Investments in Unconsolidated_4
Investments in Unconsolidated Affiliated Real Estate Entities - Income Statement Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Feb. 12, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Company's loss from investment | $ (392,287) | $ (1,003,709) | |
Cove Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenue | $ 1,375,000 | 3,693,000 | |
Property operating expenses | 430,000 | 1,240,000 | |
General and administrative costs | 13,000 | 42,000 | |
Depreciation and amortization | 960,000 | 2,837,000 | |
Operating income/(loss) | (28,000) | (426,000) | |
Interest expense and other, net | (652,000) | (2,934,000) | |
Net loss | (680,000) | (3,360,000) | |
Cove Joint Venture | Parent Company [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Company's share of net loss | (153,000) | (756,000) | |
Additional depreciation and amortization expense | (5,000) | (10,000) | |
Company's loss from investment | $ (158,000) | (766,000) | |
40 East End Ave. Joint Venture [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenue | 12,902,000 | ||
Cost of goods sold | 11,581,000 | ||
Other expenses | 703,000 | 393,000 | |
Depreciation and amortization | 320,000 | ||
Operating income/(loss) | 618,000 | (713,000) | |
Interest expense and other, net | (1,322,000) | ||
Net loss | (704,000) | (713,000) | |
40 East End Ave. Joint Venture [Member] | Parent Company [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Company's share of net loss | $ (234,000) | $ (238,000) |
Investments in Unconsolidated_5
Investments in Unconsolidated Affiliated Real Estate Entities - Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Cove Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Total assets | $ 140,677 | |
Members' deficit (1) | (39,015) | |
Total liabilities and members' deficit | 140,677 | |
Cove Joint Venture | Real estate, at cost (net) | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Total assets | 138,045 | |
Cove Joint Venture | Cash and restricted cash | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Total assets | 1,491 | |
Cove Joint Venture | Other assets | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Total assets | 1,141 | |
Cove Joint Venture | Mortgage payable, net [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Liabilities | 178,353 | |
Cove Joint Venture | Other liabilities [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Liabilities | 1,339 | |
40 East End Ave. Joint Venture [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Total assets | $ 135,388 | 147,546 |
Members' deficit (1) | 44,336 | 56,040 |
Total liabilities and members' deficit | 135,388 | 147,546 |
40 East End Ave. Joint Venture [Member] | Real estate inventory | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Total assets | 129,230 | 139,170 |
40 East End Ave. Joint Venture [Member] | Cash and restricted cash | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Total assets | 5,966 | 7,739 |
40 East End Ave. Joint Venture [Member] | Other assets | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Total assets | 192 | 637 |
40 East End Ave. Joint Venture [Member] | Mortgage payable, net [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Liabilities | 89,235 | 89,102 |
40 East End Ave. Joint Venture [Member] | Other liabilities [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Liabilities | $ 1,817 | $ 2,404 |
Investments in Unconsolidated_6
Investments in Unconsolidated Affiliated Real Estate Entities - Additional Information (Details) - USD ($) | Feb. 12, 2020 | Dec. 19, 2019 | Dec. 17, 2019 | Mar. 31, 2017 | Jan. 31, 2017 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 19, 2021 | Feb. 13, 2020 | Dec. 26, 2019 | Mar. 21, 2017 |
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 22.50% | |||||||||||
Outstanding balance | $ 15,785,151 | $ 15,656,241 | ||||||||||
Additional paid-in-capital | 71,665,213 | 72,215,685 | ||||||||||
Loss on debt extinguishment | 300,000 | |||||||||||
Gain from disposition of investment in unconsolidated affiliated real estate entity | 8,180,509 | $ 0 | ||||||||||
Cove Joint Venture | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Business Combination, Consideration Transferred | $ 255,000,000 | |||||||||||
Payments to Acquire Interest in Joint Venture | $ 20,000,000 | |||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 22.50% | |||||||||||
Guarantor Obligations, Current Carrying Value | $ 87,600,000 | |||||||||||
Distributions from unconsolidated affiliated real estate entities | 900,000 | |||||||||||
Additional paid-in-capital | 2,600,000 | |||||||||||
Ownership interests redeemed (as a percent) | 22.50% | |||||||||||
Proceeds from redemption of ownership interests | $ 21,900,000 | |||||||||||
Gain from disposition of investment in unconsolidated affiliated real estate entity | 8,200,000 | |||||||||||
Lightstone Value Plus Real Estate Investment Trust, Inc. [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 12.00% | |||||||||||
Proceeds from Contributions from Affiliates | $ 30,000,000 | |||||||||||
Refurbishment Guarantee [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Aggregate redemption price | $ 87,600,000 | |||||||||||
40 East End Ave. Joint Venture [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Business Combination, Consideration Transferred | $ 10,300,000 | |||||||||||
Payments to Acquire Interest in Joint Venture | $ 4,600,000 | |||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 33.30% | |||||||||||
Equity Method Investment, Ownership Percentage | 33.30% | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 85,300,000 | |||||||||||
Equity Method Investment, Ownership Percentage | 33.30% | |||||||||||
Loss on debt extinguishment | 800,000 | |||||||||||
Repayments of outstanding principal balance | $ 80,300,000 | |||||||||||
Accrued and unpaid interest repaid | 200,000 | |||||||||||
40 East End Ave. Joint Venture [Member] | Condo Loan [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Debt Instrument, Description of Variable Rate Basis | Libor plus 2.45% | |||||||||||
Debt Instrument, Term | 2 years | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 95,200,000 | |||||||||||
Threshold reduced outstanding principal balance | 81,000,000 | $ 73,000,000 | ||||||||||
Remaining borrowing capacity | 5,000,000 | |||||||||||
Outstanding balance | $ 90,200,000 | |||||||||||
40 East End Ave. Joint Venture [Member] | Lightstone Value Plus Real Estate Investment Trust, Inc. [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Redemption of Preferred Contributions | 9,500,000 | $ 11,000,000 | $ 3,500,000 | |||||||||
Remaining outstanding Preferred Contributions | $ 6,000,000 | $ 17,000,000 | ||||||||||
Mr. David Lichtenstein | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity Method Investment, Ownership Percentage | 100.00% | |||||||||||
Equity Method Investment, Ownership Percentage | 100.00% |
Marketable Securities and Fai_3
Marketable Securities and Fair Value Measurements - Available for Sale Securities (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Debt securities: | |||
Gain on sale of marketable securities | $ 264,589 | $ 0 | |
Israeli Bonds [Member] | |||
Debt securities: | |||
Adjusted Cost | $ 3,761,692 | ||
Gross Unrealized Gains | 400,089 | ||
Fair Value | $ 4,161,781 | ||
Gain on sale of marketable securities | $ 300,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | Apr. 29, 2020 | Sep. 30, 2014 | Feb. 29, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | [2] | Dec. 31, 2014 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | |
Stockholders' Equity | |||||||||||
Number of shares repurchased (in shares) | 395,941 | 57,800 | 395,941 | 395,941 | |||||||
Average share repurchase price per share (in dollars per share) | $ 9.53 | $ 9.48 | |||||||||
Dividends, Common Stock | $ 300,000 | $ 900,000 | $ 851,742 | [1] | $ 1,699,447 | $ 900,000 | |||||
Annualized rate of dividend | 90.00% | ||||||||||
[1] | Dividends per share were $0.10. | ||||||||||
[2] | Dividends per share were $0.20. |
Related Party Transaction and_3
Related Party Transaction and Other Arrangements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investment Advisory, Management and Administrative Service [Member] | ||
Related Party Transaction [Line Items] | ||
Asset management fees (general and administrative costs) | $ 77,313 | $ 163,349 |
Related Party Transaction and_4
Related Party Transaction and Other Arrangements - Additional Information (Details) - USD ($) | Mar. 18, 2016 | Mar. 18, 2016 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 |
Related Party Transaction [Line Items] | ||||||
Interest Payable | $ 679,208 | $ 632,725 | ||||
Principal subordinated advances | 13,311,221 | 13,264,738 | ||||
Interest on principal advances | 46,483 | $ 46,098 | ||||
Cove Transaction [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Principal subordinated advances | $ 12,600,000 | $ 12,600,000 | ||||
Subordinated Debt [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Aggregated principal advances amount | $ 12,600,000 | $ 12,600,000 | ||||
Principal advance interest rate | 1.48% | 1.48% | ||||
Shares issued, price per share | $ 10 | $ 10 | ||||
Percentage rate of return on investment | 8.00% | 8.00% | 8.00% | 8.00% | ||
Return on investment percentage | 8.00% | 8.00% | ||||
Liquidation distributions percent payable to company | 85.00% | |||||
Liquidation distributions percent payable to sponsor | 15.00% |