Lightstone Value Plus REIT IV (LTSV) 10-Q 16 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares shares in Millions	3 Months Ended
	Mar. 31, 2016	May. 10, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Entity Registrant Name	Lightstone Real Estate Income Trust Inc.
Entity Central Index Key	1,619,312
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		1.4

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Assets
Investment in related party	$ 6,100,000	$ 4,000,000
Cash	4,219,688	1,213,014
Prepaid expenses	6,265	434
Total Assets	10,325,953	5,213,448
Liabilities and Stockholders' Equity
Accounts payable and other accrued expenses	330,898	171,105
Due to related parties	14,353	865,436
Distributions payable	64,278	46,170
Total liabilities	$ 409,529	$ 1,082,711
Commitments and Contingencies
Company's stockholders' equity:
Preferred stock, $0.01 par value; 50,000,000 shares authorized, none issued and outstanding	$ 0	$ 0
Common stock, $0.01 par value; 200,000,000 shares authorized, 1,084,525 and 723,975 shares issued and outstanding, respectively	10,845	7,240
Additional paid-in-capital	7,273,224	4,425,374
Subscription receivable	(100,000)	(1,000)
Accumulated deficit	(376,658)	(300,877)
Total Company's stockholders' equity	6,807,411	4,130,737
Subordinated residual interest	3,109,013	0
Total Stockholders' Equity	9,916,424	4,130,737
Total Liabilities and Stockholders' Equity	$ 10,325,953	$ 5,213,448

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
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	1,084,525	723,975
Common Stock, shares outstanding	1,084,525	723,975

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Investment income	$ 155,133	$ 0
Expenses:
General and administrative costs	61,652	5,413
Total expenses	61,652	5,413
Net income/(loss)	$ 93,481	$ (5,413)
Net income/(loss) per common share, basic and diluted	$ 0.11	$ (0.27)
Weighted average number of common shares outstanding, basic and diluted	868,381	20,000

STATEMENT OF STOCKHOLDERS' EQUI

STATEMENT OF STOCKHOLDERS' EQUITY - 3 months ended Mar. 31, 2016 - USD ($)	Total	Common Shares [Member]	Additional Paid-In Capital [Member]	Subscription Receivable [Member]	Accumulated Deficit [Member]	Subordinated Residual Interest [Member]
BALANCE at Dec. 31, 2015	$ 4,130,737	$ 7,240	$ 4,425,374	$ (1,000)	$ (300,877)	$ 0
BALANCE (in shares) at Dec. 31, 2015		723,975
Net income	93,481	$ 0	0	0	93,481	0
Distributions declared	(169,262)	0	0	0	(169,262)	0
Proceeds from offering	3,449,345	$ 3,574	3,544,771	(99,000)	0	0
Proceeds from offering (in shares)		357,498
Proceeds from subordinated residual interest	3,109,013					3,109,013
Shares issued from distribution reinvestment program	28,989	$ 31	28,958	0	0	0
Shares issued from distribution reinvestment program (in shares)		3,052
Selling commissions and dealer manager fees	(330,063)	$ 0	(330,063)	0	0	0
Other offering costs	(395,816)	0	(395,816)	0	0	0
BALANCE at Mar. 31, 2016	$ 9,916,424	$ 10,845	$ 7,273,224	$ (100,000)	$ (376,658)	$ 3,109,013
BALANCE (in shares) at Mar. 31, 2016		1,084,525

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income/(loss)	$ 93,481	$ (5,413)
Changes in assets and liabilities:
Increase in prepaid expenses	(5,831)	0
Increase in accounts payable and other accrued expenses	17,203	5,333
Increase in due to related parties	(38,905)	(33,260)
Net cash provided by/(used in) operating activities	65,948	(33,340)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in related party	(2,100,000)	0
Cash used in investing activities	(2,100,000)	0
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	3,449,345	0
Proceeds from subordinated residual interest draws	3,109,013	0
Payment of commissions and offering costs	(1,395,467)	0
Distributions paid to Company's common stockholders	(122,165)	0
Net cash provided by financing activities	5,040,726	0
Net change in cash	3,006,674	(33,340)
Cash, beginning of year	1,213,014	200,000
Cash, end of period	4,219,688	166,660
Supplemental disclosure of cash flow information:
Distributions declared, but not paid	64,278	0
Commissions and other offering costs accrued but not paid	297,940	0
Subscription receivable	99,000	0
Value of shares issued from distribution reinvestment program	$ 28,989	$ 0

Organization

Organization	3 Months Ended
	Mar. 31, 2016
Organization [Abstract]
Organization	1. Organization Lightstone Real Estate Income Trust Inc. (‘‘Lightstone Income Trust’’), incorporated on September 9, 2014 Lightstone Income Trust sold 20,000 10.00 Lightstone Income Trust, together with any of its subsidiaries that may exist from time to time, are 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’s registration statement on Form S-11 (the “Offering”), pursuant to which it is offering to sell up to 30,000,000 0.01 10.00 10,000,000 9.50 10.2 1.1 (including $ 2.0 9.00 The Company has and will continue to seek to originate, acquire and manage a diverse portfolio of real estate-related investments. The Company may invest in mezzanine loans, first lien mortgage loans, second lien mortgage loans, bridge loans and preferred equity interests, in each case with a focus on investments intended to finance development or redevelopment opportunities. The Company may also invest in debt and derivative securities related to real estate assets. The Company expects that a majority of its investments by value will be secured by or related to properties or entities advised by, or wholly or partially, directly or indirectly owned by, the Sponsor, by its affiliates or by real estate investment programs sponsored by it. The Company has no employees. The Company retains the Advisor to manage its affairs on a day-to-day basis. Orchard Securities, LLC (the ‘‘Dealer Manager’’), a third party not affiliated with the Company, the Sponsor or the Advisor, will serve as the dealer manager of the Offering. The Advisor is an affiliate of the Sponsor and will receive compensation and fees for services related to the investment and management of the Company’s assets.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies The accompanying unaudited interim 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 financial statements of the Lightstone Real Estate Income Trust Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (‘‘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 unaudited statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. New Accounting Pronouncements In January 2016, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update that eliminates the requirement for public business entities to disclose the method and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet and is effective for periods beginning after December 15, 2017 and early adoption is not permitted. This guidance will not have a material impact on the Company’s financial statements. In May 2014, the FASB issued an accounting standards update that completes the joint effort by the FASB and International Accounting Standards Board to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards. The update applies to all companies that enter into contracts with customers to transfer goods or services and is effective for us for interim and annual reporting periods beginning after December 15, 2016. Early application is not permitted and companies have the choice to apply the update either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying the update at the date of initial application (January 1, 2017) and not adjusting comparative information. In August 2015, the FASB decided to delay the effective date of the new revenue standard by one year. The Company does not expect the adoption of this standard to have a material impact on our financial position, results of operations or cash flows. The Company has reviewed and determined that other 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

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2016
Stockholder's Equity [Abstract]
Stockholder's Equity	3. 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 income/(loss) by the weighted-average number of shares of common stock outstanding during the applicable period. Subordinated Residual Interest On March 18, 2016, the Company and the Sponsor entered into an agreement (the “Subordinated Residual Interest Agreement”) pursuant to which the Sponsor committed to make a significant contribution, evidenced by a subordinated unsecured loan agreement to the Company of up 36.0 (the “Subordinated Residual Interest”), which is equivalent 12.0 300.0 offering amount of the Company’s Offering. Specifically the Subordinated Residual Interest Agreement provides for quarterly draws to be provided by the Sponsor in an amount equal to the product of (i) $10.00 minus the then-current estimated net asset value (“NAV”) per share, multiplied by (ii) the number of Common Shares The draws under the Subordinated Residual Interest Agreement will be used to increase the Company’s cash available for investment in real estate-related investments. The Subordinated Residual Interest bears interest at a rate 1.48 will retroactively accrue on the Subordinated Residual Interest back to the date of each quarterly draw under the Subordinated Residual Interest Agreement, but no interest or principal will be due and payable to the Sponsor until holders of the Company’s Common Shares have received liquidation distributions equal to their respective net investments plus a cumulative, pre-tax, non-compounded annual 8.0 The Subordinated Residual Interest Agreement with the Sponsor will continue until the earlier of: (i) the termination of the Offering; (ii) proceeds drawn under the Subordinated Residual Interest Agreement are equal to an aggregate and (iii) the Company receives gross Offering proceeds The draws under the Subordinated Residual Interest Agreement will have the effect of increasing the Company’s NAV per share until holders of the Company’s Common Shares have received distributions equal to their respective net investments plus a cumulative, pre-tax, non-compounded annual return of 8.0% on their respective net investments. The Company cannot guarantee that holders of its Common Shares will receive the foregoing cumulative, pre-tax, non-compounded annual Distributions in connection with the Company’s liquidation 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, the Company will be obligated to repay the outstanding principal amount and accrued interest to the Sponsor, as described in the Subordinated Residual Interest Agreement. In the unlikely event that additional liquidation distributions are available after the Company makes the principal and interest payments to its Sponsor under the Subordinated Residual Interest 85.0 15.0 Since the Subordinated Residual Interest and its related interest are subordinated to all of the Company’s obligations as well as its Common Shares 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, the amounts are classified as a component of equity since they do not represent any future cash obligation and is conditioned upon the occurrence of all of the events discussed above. During the three months ended March 31, 2016, 3.1 was funded under the Subordinated Residual Interest Agreement, which is classified as a component of Stockholders’ Equity on the balance Subscription Receivable The subscription receivable relates to shares issued to the Company’s shareholders for which the proceeds have not yet been received by the Company solely due to timing of transfers from the escrow agent holding the funds. Distributions Distribution Declaration On May 12, 2016, the Board of Directors authorized and the Company declared a distribution for each month during the three-month period ending June 30, 2016. The distributions will be calculated based on shareholders of record at a rate of $ 0.002191781 365 8.0 10.00 Distribution Payments On February 15, 2016, March 15, 2016 and April 15, 2016, the Company paid distributions for the months ended January 31, 2016, February 29, 2016 and March 31, 2016, respectively, totaling $ 169,262 3,900 9.50 66,266 39 65,948 39 37,048 22

Selling Commissions, Dealer Man

Selling Commissions, Dealer Manager Fees and Other Offering Costs	3 Months Ended
	Mar. 31, 2016
Selling Commissions, Dealer Manager Fees and Other Offering Costs [Abstract]
Selling Commissions, Dealer Manager Fees and Other Offering Costs [Text Block]	4. Selling Commissions, Dealer Manager Fees and Other Offering Costs Selling commissions and dealer manager fees are paid to the Dealer Manager, pursuant to various agreements, and other third-party offering costs such as registration fees, due diligence fees, marketing costs, and professional fees are accounted for as a reduction against additional paid-in capital as costs are incurred. Organizational costs are expensed as general and administrative costs. For the Three Months Ended March 31, 2016 2015 Selling commissions and dealer manager fees $ 330,063 $ - Other offering costs $ 395,816 $ - Since the Company’s inception through March 31, 2016, it has incurred approximately $ 0.6 2.5

Related Party Transaction and O

Related Party Transaction and Other Arrangements	3 Months Ended
	Mar. 31, 2016
Related Party Transaction and Other Arrangements [Abstract]
Related Party Transaction and Other Arrangements	5. Related Party Transaction and Other Arrangements In addition to certain agreements with the Sponsor (see Note 3) and Dealer Manager (see Note 4), the Company has agreements with the Advisor to pay certain fees, in exchange for services performed by the Advisor and/or its affiliated entities. Furthermore, the Advisor has and is expected to continue to advance certain organization and offering costs on behalf of the Company to the extent the Company does not have sufficient funds to pay such costs. As of December 31, 2015, the Company owed the Advisor and its affiliated entities an aggregate of $ 865,436 37,088 36,098 888,171 14,353 105-109 W. 28 th On November 25, 2015, the Company entered into an agreement with various related party entities that provides for the Company to make aggregate preferred equity contributions (the “105-109 W. 28 th 20.0 th th 12 th th The Company made an initial contribution of $ 4.0 2.1 th 6.1 4.0 13.9 Residual Interest 155,133 th

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	6. 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 Accoun13

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Summary of Significant Accounting Policies [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements In January 2016, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update that eliminates the requirement for public business entities to disclose the method and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet and is effective for periods beginning after December 15, 2017 and early adoption is not permitted. This guidance will not have a material impact on the Company’s financial statements. In May 2014, the FASB issued an accounting standards update that completes the joint effort by the FASB and International Accounting Standards Board to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards. The update applies to all companies that enter into contracts with customers to transfer goods or services and is effective for us for interim and annual reporting periods beginning after December 15, 2016. Early application is not permitted and companies have the choice to apply the update either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying the update at the date of initial application (January 1, 2017) and not adjusting comparative information. In August 2015, the FASB decided to delay the effective date of the new revenue standard by one year. The Company does not expect the adoption of this standard to have a material impact on our financial position, results of operations or cash flows. The Company has reviewed and determined that other 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

Selling Commissions, Dealer M14

Selling Commissions, Dealer Manager Fees and Other Offering Costs (Tables)	3 Months Ended
	Mar. 31, 2016
Selling Commissions, Dealer Manager Fees and Other Offering Costs [Abstract]
Summary Of Fees And Offering Costs	The following table represents the selling commissions and dealer manager and other offering costs for the periods indicated: For the Three Months Ended March 31, 2016 2015 Selling commissions and dealer manager fees $ 330,063 $ - Other offering costs $ 395,816 $ -

Organization (Details Textual)

Organization (Details Textual) - USD ($)	Sep. 12, 2014	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Date of incorporation		Sep. 9, 2014
Shares reserved for issuance, par value per share		$ 0.01		$ 0.01
Gross proceeds from sale of common stock		$ 3,449,345	$ 0
Issuance of common shares, value		3,449,345
Lightstone Real Estate Income LLC [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Issuance of common shares, shares	20,000
Shares issued, price per share	$ 10
Company owned by David Lichtenstein [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Issuance of common shares, value		$ 2,000,000
Shares issued, price per share		$ 9
Stock Offering [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Shares reserved for issuance		30,000,000
Shares reserved for issuance, par value per share		$ 0.01
Shares reserved for issuance, price per share		$ 10
Gross proceeds from sale of common stock		$ 10,200,000
Issuance of common shares, shares		1,100,000
Distribution Reinvestment Plan [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Shares reserved for issuance		10,000,000
Shares reserved for issuance, price per share		$ 9.50

Stockholders' Equity (Details T

Stockholders' Equity (Details Textual) - USD ($)	May. 12, 2016	Mar. 18, 2016	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividends, Common Stock, Total			$ 169,262
Stock Issued During Period, Value, New Issues			3,449,345
Subordinated Equity			$ 3,100,000
Dividend Paid [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage Of Distribution Paid From Offering Proceeds			39.00%
Dividends, Common Stock, Total			$ 169,262
Stock Issued During Period, Shares, Dividend Reinvestment Plan			3,900
Shares Issued, Price Per Share			$ 9.50
Dividends, Common Stock, Cash			$ 66,266
Dividends Common Stock Cash Percentage			39.00%
Stock Issued During Period, Value, New Issues			$ 65,948
Dividends, Common Stock, Stock			$ 37,048
Dividends Common Stock Percentage			22.00%
Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Distribution Rate Per Day	$ 0.002191781
Number Of Days Used To Calculate Dividend Per Day	365 days
Annualized Distribution Rate	8.00%
Share Price	$ 10
Subordinated Debt [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Subordinated Debt Percentage to Equity offering		12.00%
Maximum Amount Of Offering		$ 300,000,000
Cumulative Annual Return On Net Investments Percent		8.00%
Debt Instrument, Interest Rate, Stated Percentage		1.48%
Liquidation Distributions Percent Payable To Company		85.00%
Liquidation Distributions Percent Payable To Sponsor		15.00%
Subordinated Debt		$ 36,000,000
Debt Instrument, Description		the Subordinated Residual Interest Agreement provides for quarterly draws to be provided by the Sponsor in an amount equal to the product of (i) $10.00 minus the then-current estimated net asset value (NAV) per share, multiplied by (ii) the number of Common Shares outstanding
Subordinated Equity Agreement Terms		The Subordinated Residual Interest Agreement with the Sponsor will continue until the earlier of: (i) the termination of the Offering; (ii) proceeds drawn under the Subordinated Residual Interest Agreement are equal to an aggregate of $36.0 million; and (iii) the Company receives gross Offering proceeds of $300.0 million

Selling Commissions, Dealer M17

Selling Commissions, Dealer Manager Fees and Other Offering Costs (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Selling commissions and dealer manager fees	$ 330,063	$ 0
Other offering costs	$ 395,816	$ 0

Selling Commissions, Dealer M18

Selling Commissions, Dealer Manager Fees and Other Offering Costs (Details Textual) - USD ($)	3 Months Ended		19 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016
Fees and Commissions	$ 330,063	$ 0
Noninterest Expense Offering Cost	$ 395,816	$ 0
IPO [Member]
Fees and Commissions			$ 600,000
Noninterest Expense Offering Cost			$ 2,500,000

Related Party Transaction and19

Related Party Transaction and Other Arrangements (Organization and Offering Stage) (Details) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
	Nov. 25, 2015	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Marketing expenses related to offering, recorded in APIC		$ 36,098
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Total		6,100,000		$ 4,000,000
Investments in and Advances to Affiliates, Unfunded Contributions		13,900,000
Investment Income, Net, Total		155,133	$ 0
Preferred Contributions, Aggregate Investments	$ 20,000,000
Preferred Stock, Dividend Rate, Percentage	12.00%
Due to Affiliate		14,353		865,436
Investments in and Advances to Affiliates, at Fair Value, Gross Additions		2,100,000
Organizational And Offering Expenses Paid		37,088
Payments for Expenses on Related Party Transactions		888,171
Payments to Acquire Interest in Subsidiaries and Affiliates, Total		$ 2,100,000	$ 0	$ 4,000,000