Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 01, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Jernigan Capital, Inc. | ||
Entity Central Index Key | 1,622,353 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 295,838,598 | ||
Trading Symbol | jcap | ||
Entity Common Stock, Shares Outstanding | 14,431,277 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Cash and cash equivalents | $ 46,977 | $ 67,373 |
Development property investments at fair value, of which $12.5 million and $33.3 million of funded principal is pledged as collateral against certain of the Company’s senior loan participations as of December 31, 2017 and 2016, respectively | 228,233 | 95,102 |
Operating property loans at fair value, of which none and $2.8 million of funded principal is pledged as collateral against certain of the Company’s senior loan participations as of December 31, 2017 and 2016, respectively | 5,938 | 9,905 |
Self-storage real estate owned, net | 15,355 | |
Investment in and advances to real estate venture | 13,856 | 5,373 |
Other loans, at cost | 1,313 | 11,752 |
Deferred costs | 2,004 | 2,207 |
Prepaid expenses and other assets | 776 | 868 |
Fixed assets, net | 182 | 199 |
Total assets | 314,634 | 192,779 |
Liabilities: | ||
Senior loan participations | 718 | 18,582 |
Due to Manager | 1,484 | 1,008 |
Accounts payable, accrued expenses and other liabilities | 1,138 | 697 |
Dividends payable | 5,474 | 4,130 |
Total liabilities | 8,814 | 24,417 |
Equity: | ||
Cumulative preferred stock, $0.01 par value, 100,000,000 shares authorized, 40,000 and 10,000 shares issued and outstanding at December 31, 2017 and 2016, respectively, at liquidation preference of $40.0 million and $10.0 million, net of allocated costs, respectively | 37,764 | 9,448 |
Common stock, $0.01 par value, 500,000,000 shares authorized at December 31, 2017 and 2016; 14,429,055 and 8,956,354 issued and outstanding at December 31, 2017 and 2016, respectively | 144 | 90 |
Additional paid-in capital | 276,814 | 162,664 |
Accumulated deficit | (8,902) | (3,840) |
Total equity | 305,820 | 168,362 |
Total liabilities and equity | $ 314,634 | $ 192,779 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Securities held as collateral, at fair value | $ 12.5 | $ 33.3 |
Loans pledged as collateral | $ 0 | $ 2.8 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 14,429,055 | 8,956,354 |
Common stock, shares outstanding | 14,429,055 | 8,956,354 |
Cumulative Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 40,000 | 10,000 |
Preferred stock, shares outstanding | 40,000 | 10,000 |
Preferred stock, liquidation preference, Value | $ 40 | $ 10 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||
Interest income from investments | $ 11,457 | $ 6,532 | $ 1,743 |
Rental and other property-related income from real estate owned | 530 | ||
Other revenues | 204 | ||
Total revenues | 12,191 | 6,532 | 1,743 |
Costs and expenses: | |||
General and administrative expenses | 5,852 | 5,574 | 3,466 |
Management fees to Manager | 3,453 | 1,688 | 1,237 |
Property operating expenses of real estate owned | 271 | ||
Depreciation and amortization of real estate owned | 472 | ||
Transaction and other expenses | 2,129 | 262 | |
Restructuring costs | 54 | 276 | |
Deferred termination fee to Manager | 239 | 464 | |
Total costs and expenses | 10,048 | 9,684 | 5,705 |
Operating income (loss) | 2,143 | (3,152) | (3,962) |
Other income (expense): | |||
Equity in earnings from unconsolidated real estate venture | 2,263 | 1,278 | |
Change in fair value of investments | 10,804 | 18,370 | 872 |
Interest expense | (1,053) | (559) | |
Loss on modification of debt | (232) | ||
Other interest income | 634 | 80 | 147 |
Total other income | 12,416 | 19,169 | 1,019 |
Net income (loss) | 14,559 | 16,017 | (2,943) |
Net income attributable to preferred stockholders | (1,456) | (996) | |
Net income (loss) attributable to common stockholders | $ 13,103 | $ 15,021 | $ (2,943) |
Basic earnings (loss) per share attributable to common stockholders | $ 1.10 | $ 2.42 | $ (0.69) |
Diluted earnings (loss) per share attributable to common stockholders | 1.10 | 2.42 | (0.69) |
Dividends declared per share of common stock | $ 1.40 | $ 1.40 | $ 1.05 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total Stockholders' Equity [Member] | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Non-Controlling Interests [Member] | Total |
Balance at Dec. 31, 2014 | $ 1 | $ 1 | $ 1 | ||||
Balance (in shares) at Dec. 31, 2014 | 1,000 | ||||||
Retirement of stock | (1) | (1) | (1) | ||||
Retirement of stock (in shares) | (1,000) | ||||||
Public offering of common stock or issuance of common stock | 115,000 | $ 58 | 114,942 | 115,000 | |||
Public offering of common stock or issuance of common stock (in shares) | 5,750,000 | ||||||
Private placement of common stock | 5,000 | $ 2 | 4,998 | 5,000 | |||
Private placement of common stock (in shares) | 250,000 | ||||||
Equity offering costs related to issuance of common stock | (9,609) | (9,609) | (9,609) | ||||
Issuances of stock-based awards | $ 2 | (2) | |||||
Issuances of stock-based awards (in shares) | 162,500 | ||||||
Stock-based compensation | 305 | 305 | 305 | ||||
Deferred termination fee to Manager | $ 464 | 464 | |||||
Dividends declared on common stock | (6,453) | $ (6,453) | (6,453) | ||||
Net Income (loss) | (2,943) | (2,943) | (2,943) | ||||
Balance at Dec. 31, 2015 | 101,300 | $ 62 | 110,634 | (9,396) | 464 | 101,764 | |
Balance (in shares) at Dec. 31, 2015 | 6,162,500 | ||||||
Retirement of stock | (3,152) | $ (2) | (3,150) | (3,152) | |||
Retirement of stock (in shares) | (213,078) | ||||||
Public offering of common stock or issuance of common stock | 56,930 | $ 30 | 56,900 | 56,930 | |||
Public offering of common stock or issuance of common stock (in shares) | 2,996,311 | ||||||
Issuance of preferred stock | 10,000 | $ 10,000 | 10,000 | ||||
Issuance of preferred stock (in shares) | 10,000 | ||||||
Equity offering costs related to issuance of preferred stock | (552) | $ (552) | (552) | ||||
Equity offering costs related to issuance of common stock | (3,470) | (3,470) | (3,470) | ||||
Repurchase and retirement of 2,052 shares related to vested restricted stock | (33) | (33) | (33) | ||||
Repurchase and retirement of 2,052 shares related to vested restricted stock (in shares) | (2,052) | ||||||
Issuances of stock-based awards (in shares) | 14,340 | ||||||
Stock-based compensation | 1,080 | 1,080 | 1,080 | ||||
Forfeiture and retirement of 1,667 shares related to stock-based awards (in shares) | (1,667) | ||||||
Deferred termination fee to Manager | 239 | 239 | |||||
Effect of Management Agreement Amendment | 703 | 703 | $ (703) | ||||
Dividends declared on preferred stock | (996) | (996) | (996) | ||||
Dividends declared on common stock | (9,465) | (9,465) | (9,465) | ||||
Net Income (loss) | 16,017 | 16,017 | 16,017 | ||||
Balance at Dec. 31, 2016 | 168,362 | $ 9,448 | $ 90 | 162,664 | (3,840) | 168,362 | |
Balance (in shares) at Dec. 31, 2016 | 10,000 | 8,956,354 | |||||
Retirement of stock | $ (3,200) | ||||||
Retirement of stock (in shares) | (213,078) | ||||||
Public offering of common stock or issuance of common stock | 83,927 | $ 40 | 83,887 | $ 83,927 | |||
Public offering of common stock or issuance of common stock (in shares) | 4,025,000 | ||||||
Issuance of preferred stock | 30,000 | $ 30,000 | 30,000 | ||||
Issuance of preferred stock (in shares) | 30,000 | ||||||
Equity offering costs related to issuance of preferred stock | (1,684) | $ (1,684) | (1,684) | ||||
At-the-market issuance of common stock, net of offering costs | 27,843 | $ 12 | 27,831 | 27,843 | |||
At-the-market issuance of common stock, net of offering costs (in shares) | 1,279,706 | ||||||
Repurchase of 7,972 shares of common stock | (177) | (177) | (177) | ||||
Repurchase of 7,972 shares of common stock (in shares) | (7,972) | ||||||
Issuances of stock-based awards | (9) | $ 1 | (10) | (9) | |||
Issuances of stock-based awards (in shares) | 111,414 | ||||||
Stock-based compensation | 1,295 | 1,295 | 1,295 | ||||
Stock dividend paid on preferred stock | 1,325 | $ 1 | 1,324 | 1,325 | |||
Stock dividend paid on preferred stock (in shares) | 64,553 | ||||||
Dividends declared on preferred stock | (1,456) | (1,456) | (1,456) | ||||
Dividends declared on common stock | (18,165) | (18,165) | (18,165) | ||||
Net Income (loss) | 14,559 | 14,559 | 14,559 | ||||
Balance at Dec. 31, 2017 | $ 305,820 | $ 37,764 | $ 144 | $ 276,814 | $ (8,902) | $ 305,820 | |
Balance (in shares) at Dec. 31, 2017 | 40,000 | 14,429,055 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net Income (loss) | $ 14,559 | $ 16,017 | $ (2,943) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Interest capitalized on outstanding loans | (8,575) | (3,856) | (973) |
Change in fair market value of investments | (10,804) | (18,370) | (872) |
Stock-based compensation | 1,295 | 1,080 | 305 |
Equity in earnings from unconsolidated real estate venture | (2,253) | (1,224) | |
Return on investment from unconsolidated joint venture | 700 | 995 | |
Deferred termination fee to Manager | 239 | 464 | |
Depreciation and amortization | 534 | 112 | 21 |
Amortization of deferred financing costs | 373 | 16 | |
Loss on disposal of assets | 33 | ||
Loss on modification of debt | 232 | ||
Accretion of origination fees | (629) | (740) | (100) |
Other | (215) | ||
Changes in operating assets and liabilities: | |||
Prepaid expenses and other assets | 26 | (377) | (294) |
Due to Manager | 476 | 310 | 698 |
Accounts payable, accrued expenses, and other liabilities | 495 | (111) | 793 |
Net cash used in operating activities | (3,571) | (5,909) | (3,083) |
Cash flows from investing activities: | |||
Purchase of fixed assets | (46) | (50) | (315) |
Purchase of self-storage real estate owned | (2,856) | ||
Capital contributions to unconsolidated real estate venture | (6,013) | (2,137) | |
Return of capital from unconsolidated real estate venture | 7,291 | ||
Advances to unconsolidated real estate venture | (50,396) | (18,293) | |
Repayment of advances to unconsolidated real estate venture | 49,479 | 15,998 | |
Capitalized unconsolidated real estate venture costs | (226) | ||
Origination fees received in cash | 4,566 | 441 | 44 |
Development property investments | (152,681) | (45,094) | (40,707) |
Operating property loans | (429) | (23,004) | |
Funding of other loans | (10,504) | (15,978) | (1,191) |
Repayments of investment portfolio investments | 27,513 | 15,037 | 6,019 |
Repayments of other loans | 19,332 | 5,369 | |
Net cash used in investing activities | (121,606) | (38,071) | (59,154) |
Cash flows from financing activities: | |||
Senior loan participations | 1,755 | 21,845 | |
Repurchase of senior loan participations | (1,854) | (3,229) | |
Cash received upon closing of the credit facility | 403 | ||
Paydown of the credit facility | (20,000) | ||
Costs incurred upon the issuance of the credit facility | (118) | ||
Deferred costs | (2,357) | ||
Stock repurchases | (177) | (3,185) | |
Proceeds from issuance of preferred stock | 29,964 | 9,448 | |
Net proceeds from issuance of common stock | 111,761 | 53,460 | 110,391 |
Dividends paid on preferred stock | (704) | ||
Dividends paid on common stock | (16,249) | (8,488) | (4,296) |
Net cash provided by financing activities | 104,781 | 67,494 | 106,095 |
Net change in cash and cash equivalents | (20,396) | 23,514 | 43,858 |
Cash and cash equivalents at the beginning of the period | 67,373 | 43,859 | 1 |
Cash and cash equivalents at the end of the period | $ 46,977 | $ 67,373 | $ 43,859 |
ORGANIZATION AND FORMATION OF T
ORGANIZATION AND FORMATION OF THE COMPANY | 12 Months Ended |
Dec. 31, 2017 | |
ORGANIZATION AND FORMATION OF THE COMPANY [Abstract] | |
ORGANIZATION AND FORMATION OF THE COMPANY | 1. ORGANIZATION AND FORMATION OF THE COMPANY Jernigan Capital, Inc. (together with its consolidated subsidiaries, the “Company”) makes debt and equity investments in newly-constructed and existing self-storage facilities. The Company is a Maryland corporation that was organized on October 1, 2014 . The Company closed its initial public offering (the “IPO”) of its common stock, $0.01 par value per share (the “common stock”), on April 1, 2015 , and has used proceeds of the IPO and other capital sources primarily to fund real estate loans to private developers, owners and operators of self-storage facilities. The Company is structured as an Umbrella Partnership REIT (“UPREIT”) and conducts its investment activities through its operating company, Jernigan Capital Operating Company, LLC (the “Operating Company”). The Company is externally managed by JCAP Advisors, LLC (the “Manager”). The Company has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986 (the “Code”), as amended. As a REIT, the Company generally will not be subject to U.S. federal income taxes on REIT taxable income, determined without regard to the deduction for dividends paid and excluded capital gains, to the extent that it annually distributes all of its REIT taxable income to stockholders and complies with various other requirements for qualification as a REIT set forth in the Code. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Company’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Substantially all operations are conducted through the Operating Company, and all significant intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates. Variable Interest Entities The Company invests in entities that may qualify as variable interest entities (“VIEs”). A VIE is a legal entity that lacks one or more of the characteristics of a voting interest entity. A VIE is defined as an entity in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The determination of whether an entity is a VIE includes both a qualitative and quantitative analysis. Management bases the qualitative analysis on its review of the design of the entity, its organizational structure including allocation of decision-making authority and relevant financial agreements and the quantitative analysis on the forecasted cash flow of the entity. Management reassesses the initial evaluation of an entity as a VIE upon the occurrence of certain reconsideration events. A VIE must be consolidated only by its primary beneficiary, which is defined as the party that, along with its affiliates and agents, has both the: (i) power to direct the activities that most significantly impact the VIE’s economic performance and (ii) obligation to absorb the losses of the VIE or the right to receive the benefits from the VIE, which could be significant to the VIE. Management determines whether the Company is the primary beneficiary of a VIE by considering qualitative and quantitative factors, including, but not limited to: which activities most significantly impact the VIE’s economic performance and which party controls such activities; the amount and characteristics of its investment; the obligation or likelihood for the Company or other interests to provide financial support; consideration of the VIE’s purpose and design, including the risks the VIE was designed to create and pass through to its variable interest holders and the similarity with and significance to the Company’s business activities and the other interests. Management reassesses the determination of whether the Company is the primary beneficiary of a VIE each reporting period. Equity Investments Investments in real estate ventures and entities over which the Company exercises significant influence but not control are accounted for using the equity method. In accordance with Accounting Standards Codification (“ASC”) 825, Financial Instruments (“ASC 825-10”), issued by the Financial Accounting Standards Board (“FASB”), the Company has elected the fair value option of accounting for its development property investments, which would otherwise be required to be accounted for under the equity method. The Company also holds an investment in a real estate venture that is accounted for under the equity method of accounting. Loan Investments and Election of Fair Value Option of Accounting for Certain Loan Investments The Company has elected the fair value option of accounting for all of its investment portfolio loan investments, including those that are required under GAAP to be accounted for under the equity method, in order to provide stockholders and others who rely on the Company’s financial statements with a more complete and accurate understanding of the Company’s economic performance including its revenues and value inherent in the Company’s equity participation in development projects. Changes in the fair value of these investments are recorded in change in fair value of investments within other income. All direct loan costs are charged to expense as incurred. Each loan investment, including those recorded at cost and presented on the Consolidated Balance Sheets as other loans, is evaluated for impairment on a periodic basis. For loans carried at fair value, indicators of impairment are reflected in the measurement of the loan. For loans that are carried at cost, the Company estimates an allowance for loan loss at each reporting date. In evaluating loan impairment, the Company also periodically evaluates the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower on a loan by loan basis. The Company also evaluates the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the property. In addition, the Company considers the overall economic environment, real estate sector and geographic sub-market in which the borrower operates. A loan will be considered impaired when, based on current information and events, it is probable that the loan will not be collected according to the contractual terms of the loan agreement. Factors to be considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. At December 31, 2017 and 2016 , there were no loans that were deemed to be impaired loans. Additionally, for loans recorded at cost, the Company determined that no allowance for loan loss was necessary at December 31, 2017 and 2016 . For investments carried at fair value, fees and costs are expensed as incurred. Fair Value Measurement The Company carries certain financial instruments at fair value because it has elected to apply the fair value option on an instrument by instrument basis under ASC 825-10. The Company’s financial instruments consist of cash, development property investments (which are typically structured as first mortgages with a 49.9% interest in the positive cash flows from operations, sales and /or refinancings of self-storage facilities, which we refer to as “Profits Interest”) , operating property loans (loans secured by operating properties), the investment in real estate venture, other loans, receivables, the secured revolving Credit Facility (as defined below), senior loan participations, and payables. The following table presents the financial instruments measured at fair value on a recurring basis at December 31, 2017 : Fair Value Measurements Using Total Level 1 Level 2 Level 3 Development property investments $ 228,233 $ - $ - $ 228,233 Operating property loans 5,938 - - 5,938 Total investments $ 234,171 $ - $ - $ 234,171 The following table presents the financial instruments measured at fair value on a recurring basis at December 31, 2016 : Fair Value Measurements Using Total Level 1 Level 2 Level 3 Development property investments $ 95,102 $ - $ - $ 95,102 Operating property loans 9,905 - - 9,905 Total investments $ 105,007 $ - $ - $ 105,007 Estimating fair value requires the use of judgment. The types of judgments involved depend upon the availability of observable market information. Management’s judgments include determining the appropriate valuation model to use, estimating unobservable inputs and applying valuation adjustments. See Note 4, Fair Value of Financial Instruments , for additional disclosure on the valuation methodology and significant assumptions, as well as the election of the fair value option for certain financial instruments. Self-Storage Real Estate Owned Land is carried at historical cost. Building and improvements are carried at historical cost less accumulated depreciation and impairment losses. The cost primarily reflects the funded principal balance of the loan to the Company, net of unamortized origination fees, unrealized appreciation recognized as of the acquisition date, and the cash consideration paid to acquire the developer’s equity interest and portion of Profits Interest. Ordinary repairs and maintenance are expensed as incurred; major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives. The costs of building and improvements are generally depreciated using the straight-line method based on a useful life of 40 years. The Company expects that the majority of future self-storage facility acquisitions will be considered asset acquisitions; however, the Company will evaluate each acquisition using Accounting Standards Update (“ASU”) 2017-01 - Business Combinations (Topic 805): Clarifying the Definition of a Business to determine whether accounting for a business combination or asset acquisition applies. When facilities are acquired, the cost is allocated to the tangible and intangible assets acquired and liabilities assumed based on relative fair values. Allocations to the individual assets and liabilities are based upon their relative fair values as estimated by management. In allocating the purchase price for an acquisition, the Company determines whether the acquisition includes intangible assets or liabilities. The Company allocates a portion of the cost to an intangible asset attributable to the value of in-place leases. This intangible asset is amortized to expense over the expected remaining term of the respective leases, which is generally one year. Substantially all of the leases in place at acquired facilities are at market rates, as the majority of the leases are month-to-month contracts. Accordingly, to date, no portion of the basis for an acquired property has been allocated to above- or below-market lease intangibles. To date, no intangible asset has been recorded for the value of customer relationships, because the Company does not have any concentrations of significant customers and the average customer turnover is fairly frequent. The Company evaluates long-lived assets for impairment when events and circumstances, such as declines in occupancy and operating results, indicate that there may be an impairment. The carrying value of these long-lived assets is compared to the undiscounted future net operating cash flows, plus a terminal value, attributable to the assets to determine if the facility’s basis is recoverable. If an asset’s basis is not considered recoverable, an impairment loss is recorded to the extent the net carrying value of the asset exceeds the fair value. The impairment loss recognized equals the excess of net carrying value over the related fair value of the asset. There were no impairment losses recognized in accordance with these procedures during the year ended December 31, 2017 . Cash and Cash Equivalents Cash, investments in money market accounts and certificates of deposit with original maturities of three months or less are considered to be cash equivalents. The Company places its cash and cash equivalents primarily with three financial institutions, and the balance at each financial institution exceeds the Federal Deposit Insurance Corporation insurance limit of $250,000 per institution. Other Loans The Company’s other loans balance primarily includes principal balances for certain revolving loan agreements and short-term mortgage loans made by the Company in situations where it was determined that making such loans would benefit the Company’s primary business. These loans are accounted for under the cost method. Fixed Assets Fixed assets are recorded at cost and consist of furniture, office and computer equipment, and software. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets, which range from three to seven years. Fixed assets are generally purchased by the Manager and the cost reimbursed by the Company. Maintenance and repair costs are charged to expense as incurred. Upon sale or retirement, the asset cost and related accumulated depreciation are eliminated from the respective accounts and any resulting gain or loss is included in income. Revenue recognition Interest income is recognized as earned on a simple interest basis and is reported in interest income from investments in the Consolidated Statements of Operations. Accrual of interest will be discontinued on a loan when management believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that collection of interest is doubtful. The Company will recognize income on impaired loans when they are placed into non-accrual status on a cash basis when the loans are both current and the collateral on the loan is sufficient to cover the outstanding obligation to the Company. If these factors do not exist, the Company will not recognize income on such loans. Accrued interest generally is reversed when a loan is placed on non-accrual status. The Company’s loan origination fees are accreted into interest income over the term of the investment using the effective yield method. The operations of the self-storage real estate owned are managed by a third-party self-storage management company. All rental leases are operating leases, and rental income is recognized in accordance with the terms of the leases, which generally are month to month. Debt Issuance Costs Costs related to the issuance of a debt instrument are deferred and amortized as interest expense over the estimated life of the related debt instrument using the straight-line method, which approximates the effective interest method. If a debt instrument is repurchased prior to its original maturity date, the Company evaluates both the unamortized balance of debt issuance costs as well as any new debt issuance costs, including third party fees, to determine if the costs should be written off to interest expense or, if significant, included in “loss on modification or extinguishment of debt” in the accompanying Consolidated Statements of Operations. Debt issuance costs related to the sale of senior participations are presented in the accompanying Consolidated Balance Sheets as a deduction from the carrying amount of the principal balance. Debt issuance costs related to the revolving Credit Facility are presented in the accompanying Consolidated Balance Sheets as Deferred Costs. Transaction and other expenses Transaction and other expenses consist of non-capitalizable advisory fees and other unreimbursed expenses incurred in connection with various financing and investment transactions and are expensed as incurred. The Company incurred none, $2.1 million and $0.3 million of such costs during the years ended December 31, 2017, 2016 and 2015 , respectively. Offering and Registration Costs Offering and registration costs represent underwriting discounts and commissions, professional fees, fees paid to various regulatory agencies, and other costs incurred in connection with the registration and sale of the Company’s securities. Offering and registration costs incurred in connection with the Company’s common stock offerings are reflected as a reduction of additional paid-in capital. On July 27, 2016, the Company entered into a Purchase Agreement (as defined in Note 9, Stockholders’ Equity ) which requires the Company to issue and sell a minimum of $50.0 million of Series A Preferred Stock by July 27, 2018. The Company incurred $2.8 million of preferred stock offering costs in conjunction with the execution of the Purchase Agreement. Such costs are presented as deferred costs on the Consolidated Balance Sheets until such time as Series A Preferred Stock is issued. A pro rata portion of such deferred costs, based upon the ratio of the amount issued to the $50.0 million minimum issuance of Series A Preferred Stock, is reclassified to cumulative preferred stock upon each issuance of the Series A Preferred Stock. Of the $2.8 million of offering costs incurred, $0.6 million and $2.2 million is in deferred costs on the Consolidated Balance Sheets at December 31, 2017 and 2016 , respectively, and $2.2 million and $0.6 million has reduced the cumulative preferred stock balance on the accompanying Consolidated Balance Sheets at December 31, 2017 and 2016 , respectively. Income Taxes The Company has elected to be taxed as a REIT and to comply with the related provisions of the Code. Accordingly, the Company will generally not be subject to U.S. federal income tax to the extent of its distributions to stockholders and as long as certain asset, income and share ownership tests are met. To qualify as a REIT, the Company must annually distribute at least 90% of its REIT taxable income to its stockholders and meet certain other requirements. Earnings per Share (“EPS”) Basic EPS includes only the weighted average number of common shares outstanding during the period. Diluted EPS includes the weighted average number of common shares and the dilutive effect of restricted stock, accrued stock dividends, and redeemable Operating Company units when such instruments are dilutive. All outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are treated as participating in undistributed earnings with common shareholders. Awards of this nature are considered participating securities and the two-class method of computing basic and diluted EPS must be applied. Comprehensive Income For the years ended December 31, 2017, 2016 and 2015 , comprehensive income equaled net income; therefore, separate Consolidated Statements of Comprehensive Income are not included in the accompanying consolidated financial statements. Segment Reporting The Company does not evaluate performance on a relationship specific or transactional basis and does not distinguish its principal business or group its operations on a geographical or other basis for purposes of measuring performance. Accordingly, the Company believes it has a single operating segment for reporting purposes in accordance with GAAP. Recent Accounting Pronouncements In January 2017, the FASB issued ASU 2017-01 which provides guidance on whether transactions should be accounted for as acquisitions or disposals of assets or businesses. Specifically, when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or group of similar identifiable assets, the set of assets is not a business. Additionally, ASU 2017-01 also provides other guidance providing a more robust framework to use in determining whether a set of assets and activities is a business. Upon adoption of the new guidance, the Company expects that the majority of future self-storage facility acquisitions will now be considered asset acquisitions. This guidance is effective for annual periods beginning after December 15, 2017. Early adoption is permitted. The Company adopted ASU 2017-01 for new acquisitions beginning on July 1, 2017. The costs related to the acquisitions of self-storage facilities that qualify as asset acquisitions will be capitalized as part of the purchase. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU provides guidance on the classification of certain cash receipts and payments in the statement of cash flows (defined in the ASU as “cash flow issues”), including distributions received from equity method investees. This guidance is effective for public business entities for fiscal years and for interim periods within those fiscal years, beginning after December 15, 2017, with early adoption being allowed. The Company has elected to early adopt effective October 1, 2017 on a retrospective basis as required. The Company has concluded that the new accounting guidance does not impact its current classification of distributions received from equity method investees as an operating activity in its Consolidated Statements of Cash Flows. The Company further considered its components of cash flows under the cash flow issue “Separately Identifiable Cash Flow and Applicable of the Predominance Principle,” which addresses certain cash receipts and cash payments that may have aspects of more than one class of cash flows. In the absence of specific GAAP guidance, the Company evaluated its cash flows from origination fees received in cash, which have been historically presented as operating cash flows, on the basis of the nature of the underlying cash flows. The Company concluded that the origination fees are related to the origination of loans and the funding of our investment portfolio for which the associated cash flows are presented as investing activities. As a result, $0.4 million and $44,000 of origination fees received in cash for the years ended December 31, 2016 and 2015, respectively, have been retrospectively presented as an investment activity in the Consolidated Statements of Cash Flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. This guidance is effective for public business entities for fiscal years and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption being allowed as of the fiscal years beginning after December 15, 2018. The Company is currently assessing the impact this new accounting guidance will have on its consolidated financial statements; however, the Company does not expect the new accounting guidance to have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which is the final standard on accounting for leases. The most significant change for lessees is the requirement under the new guidance to recognize right-of-use assets and lease liabilities for all leases not considered short term leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales type leases, direct financing leases and operating leases. The Company does have rental income from month-to-month self-storage leases within the scope of ASU 2016-02. The Company does not have material amounts of rental or lease expense. The amendments in ASU 2016-02 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company is currently assessing the impact this new accounting guidance will have on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which is effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2017. This ASU outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. Several ASUs expanding and clarifying the initial guidance issued in ASU 2014-09 have been released since May 2014. The Company will adopt the ASU effective January 1, 2018. The Company has evaluated all applicable contracts and revenue streams and has concluded that the adoption does not have an effect on its consolidated financial statements, primarily due to the new guidance not applying to revenue associated with loans or derived from lease contracts. Consolidated Statements of Cash Flows – Supplemental Disclosures The following table provides supplemental disclosures related to the Consolidated Statements of Cash Flows: Year ended December 31, 2017 2016 2015 Supplemental disclosure of cash flow information: Interest paid $ 926 $ 484 $ - Supplemental disclosure of non-cash investing and financing activities: Stock dividend paid on preferred stock $ 1,325 $ - $ - Dividends declared, but not paid, on preferred stock 423 996 - Dividends declared, but not paid, on common stock 5,051 3,134 2,157 Contribution of assets to real estate venture - 7,693 - Reclassification of self-storage real estate owned 12,919 - - Other loans paid off with the issuance of development property investments 1,727 - 2,573 Reclassification of deferred costs to cumulative preferred stock 1,648 - - Conversion of investment (preferred equity to mezzanine loan) - - 924 Retirement of common stock - - 1 Upon the closing of the Credit Facility, the Company received cash of $0.4 million as presented within “Cash received upon closing of the Credit Facility” in the Consolidated Statement of Cash Flows for the year ended December 31, 2017. The amount received was comprised of a $20.0 million draw on the Credit Facility offset by $17.8 million from the repurchase of senior loan participations and $1.8 million of costs incurred upon closing of the Credit Facility. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENTS [Abstract] | |
INVESTMENTS | 3. INVESTMENTS The Company’s self-storage investments at December 31, 2017 consisted of the following: Investments reported at fair value Development Property Investments - The Company had 44 investments totaling an aggregate committed principal amount of approximately $500.1 million to finance the ground-up construction of, or conversion of existing buildings into, self-storage facilities. Each development property investment is funded as the developer constructs the project and is typically comprised of a first mortgage and a 49.9% Profits Interest. The loans are secured by first priority mortgages or deeds of trust on the projects and , in certain cases , first priority security interests in the membership interests of the owners of the projects. Loans comprising development property investments are non-recourse with customary carve-outs and subject to completion guaranties, are interest-only with a fixed interest rate of typically 6.9% per annum and typically have a term of 72 months. Included in development property investments as of December 31, 2017 was one construction loan with a committed principal amount of approximately $17.7 million and an initial term of 18 months that was extended during the first quarters of 2017 and 2018 . This construction loan is interest-only at a fixed interest rate of 6.9% per annum, has no equity participation and is secured by a first priority mortgage on the project. The self-storage facility under construction is subject to a purchase and sale agreement between the developer and a third-party purchaser pursuant to which the financed project is anticipated to be sold and the loan repaid on or about the time a certificate of occupancy is issued for the financed self-storage facility, which is expected in the second quarter of 2018. Operating property loans - The Company ha s two term loans totaling $6.0 million of aggregate committed principal amount, the proceeds of which were used by borrowers to finance the acquisition of, refinance existing indebtedness on, or recapitalize operating self-storage facilities. These loans are secured by first mortgages on the projects financed, are interest-only with fixed interest rates ranging from 5.85% to 6.9% per annum, and generally have a term of 72 months. As of December 31, 2017 , the aggregate committed principal amount of the Company’s development property investments and operating property loans was approximately $523.8 million and outstanding principal was $213.1 million, as described in more detail in the table below: Metropolitan Remaining Statistical Area Total Investment Funded Unfunded Closing Date ("MSA") Commitment Investment (1) Commitment Fair Value Development property investments: Loan investments with a profits interest: 6/10/2015 Atlanta 1 (2)(5) $ 8,132 $ 8,086 $ 46 $ 10,741 6/19/2015 Tampa 1 (2) 5,369 5,285 84 6,012 6/26/2015 Atlanta 2 (2)(5) 6,050 5,769 281 8,631 6/29/2015 Charlotte 1 (2) 7,624 7,251 373 10,363 7/2/2015 Milwaukee (2) 7,650 7,512 138 8,994 7/31/2015 New Haven (2) 6,930 6,524 406 8,231 8/10/2015 Pittsburgh (2)(5) 5,266 4,798 468 6,774 8/14/2015 Raleigh (3) 8,792 5,550 3,242 5,889 9/30/2015 Jacksonville 1 (2)(5) 6,445 5,988 457 8,913 10/27/2015 Austin (2) 8,658 7,297 1,361 8,782 9/20/2016 Charlotte 2 (3) 12,888 5,453 7,435 5,686 11/17/2016 Jacksonville 2 (3) 7,530 4,971 2,559 5,818 1/4/2017 New York City 1 (2) 16,117 14,914 1,203 18,892 1/18/2017 Atlanta 3 14,115 2,393 11,722 2,236 1/31/2017 Atlanta 4 (3) 13,678 7,040 6,638 7,147 2/24/2017 Orlando 3 (3) 8,056 3,144 4,912 3,335 2/24/2017 New Orleans 12,549 677 11,872 553 2/27/2017 Atlanta 5 17,492 4,971 12,521 4,739 3/1/2017 Fort Lauderdale 9,952 1,128 8,824 1,043 3/1/2017 Houston 13,630 3,633 9,997 3,547 4/14/2017 Louisville 1 (3) 8,523 2,932 5,591 3,083 4/20/2017 Denver 1 9,806 1,940 7,866 1,849 4/20/2017 Denver 2 (3) 11,164 5,442 5,722 5,849 5/2/2017 Atlanta 6 12,543 4,344 8,199 4,262 5/2/2017 Tampa 2 8,091 1,086 7,005 1,010 5/19/2017 Tampa 3 9,224 1,422 7,802 1,335 6/12/2017 Tampa 4 10,266 1,847 8,419 1,752 6/19/2017 Baltimore (4) 10,775 3,315 7,460 3,115 6/28/2017 Knoxville 9,115 1,351 7,764 1,265 6/29/2017 Boston 1 (3) 14,103 4,978 9,125 4,914 6/30/2017 New York City 2 (4) 26,482 18,042 8,440 17,576 7/27/2017 Jacksonville 3 8,096 1,134 6,962 1,053 8/30/2017 Orlando 4 9,037 2,059 6,978 1,960 9/14/2017 Los Angeles 28,750 7,533 21,217 7,398 9/14/2017 Miami 1 14,657 5,862 8,795 5,725 9/28/2017 Louisville 2 9,940 1,864 8,076 1,762 10/12/2017 Miami 2 (4) 9,459 1,014 8,445 820 10/30/2017 New York City 3 (4) 14,701 2,595 12,106 2,294 11/16/2017 Miami 3 (4) 20,168 3,508 16,660 3,099 11/21/2017 Minneapolis 12,674 1,150 11,524 1,023 12/1/2017 Boston 2 8,771 1,306 7,465 1,220 12/15/2017 New York City 4 10,591 927 9,664 823 12/27/2017 Boston 3 10,174 2,259 7,915 2,169 12/28/2017 New York City 5 16,073 4,303 11,770 4,178 $ 500,106 $ 194,597 $ 305,509 $ 215,860 Construction loans: 12/23/2015 Miami 17,733 12,492 5,241 12,373 $ 17,733 $ 12,492 $ 5,241 $ 12,373 Total development property investments $ 517,839 $ 207,089 $ 310,750 $ 228,233 Operating property loans: 7/7/2015 Newark 3,480 3,480 - 3,447 12/22/2015 Chicago 2,502 2,500 2 2,491 Total operating property loans 5,982 $ 5,980 $ 2 $ 5,938 Total investments $ 523,821 $ 213,069 $ 310,752 $ 234,171 (1) Represents principal balance of loan gross of origination fees. (2) Facility had received certificate of occupancy as of December 31, 2017. See Note 4, Fair Value of Financial Instruments , for information regarding recognition of entrepreneurial profit. (3) Facility had achieved at least 40% construction completion but had not received certificate of occupancy as of December 31, 2017. See Note 4, Fair Value of Financial Instruments , for information regarding recognition of entrepreneurial profit. (4) These investments contain a higher loan-to-cost ratio and a higher interest rate, some of which interest is payment-in-kind (“ PIK ”) interest. The PIK interest, computed at the contractual rate specified in each debt agreement, is periodically added to the principal balance of the debt and is recorded as interest income. Thus, the actual collection of this interest may be deferred until the time of debt principal repayment. (5) During the first quarter of 2018 , the Company purchased its partner’s 50.1% Profits Interest in these investments. See Note 16 , Subsequent Events , for information regarding these purchases. The following table provides a reconciliation of the funded principal to the fair market value of investments at December 31, 2017 : Funded principal $ 213,069 Adjustments: Unamortized origination fees (5,081) Change in fair value of investments 26,267 Other (84) Fair value of investments $ 234,171 As of December 31, 2016 , the aggregate committed principal amount of the Company’s development property investments and operating property loans was approximately $141.9 million and outstanding principal was $86.9 million, as described in more detail in the table below: Metropolitan Remaining Statistical Area Total Investment Funded Unfunded Closing Date ("MSA") Commitment Investment (1) Commitment Fair Value Development property investments: Loan investments with a profits interest: 4/21/2015 Orlando 1 (2) (5) $ 5,372 $ 5,308 $ 64 $ 7,302 6/10/2015 Atlanta 1 (2) 8,132 7,694 438 10,404 6/19/2015 Tampa (2) 5,369 5,285 84 6,279 6/26/2015 Atlanta 2 (2) 6,050 5,620 430 8,900 6/29/2015 Charlotte 1 (2) 7,624 6,842 782 9,853 7/2/2015 Milwaukee (2) 7,650 5,608 2,042 7,008 7/31/2015 New Haven (2) 6,930 5,257 1,673 6,730 8/10/2015 Pittsburgh (3) 5,266 3,497 1,769 4,551 8/14/2015 Raleigh 8,792 1,460 7,332 1,396 9/30/2015 Jacksonville 1 (2) 6,445 5,852 593 7,962 10/27/2015 Austin (3) 8,658 4,366 4,292 5,192 9/20/2016 Charlotte 2 12,888 1,446 11,442 1,298 11/17/2016 Orlando 2 (5) 5,134 1,342 3,792 1,237 11/17/2016 Jacksonville 2 7,530 624 6,906 551 $ 101,840 $ 60,201 $ 41,639 $ 78,663 Construction loans: 8/5/2015 West Palm Beach (4) 7,500 6,712 788 6,702 8/5/2015 Sarasota (4) 4,792 3,485 1,307 3,473 12/23/2015 Miami 17,733 6,517 11,216 6,264 $ 30,025 $ 16,714 $ 13,311 $ 16,439 Total development property investments 131,865 $ 76,915 $ 54,950 $ 95,102 Operating property loans: 6/19/2015 New Orleans (4) 2,800 2,800 - 2,768 7/7/2015 Newark 3,480 3,480 - 3,441 10/30/2015 Nashville (4) 1,210 1,210 - 1,204 12/22/2015 Chicago 2,502 2,500 2 2,492 Total operating property loans 9,992 $ 9,990 $ 2 $ 9,905 Total investments $ 141,857 $ 86,905 $ 54,952 $ 105,007 (1) Represents principal balance of loan gross of origination fees. (2) Facility had received certificate of occupancy as of December 31, 2016. See Note 4, Fair Value of Financial Instruments , for information regarding recognition of entrepreneurial profit. (3) Facility had achieved at least 40% construction completion but had not received certificate of occupancy as of December 31, 2016. See Note 4, Fair Value of Financial Instruments , for information regarding recognition of entrepreneurial profit. (4) These investments were fully repaid during the year ended December 31, 2017. (5) In the year ended December 31, 2017, the Company purchased the economic rights of the Class A membership units of the limited liability companies which own these development property investments. As such, these investments are presented as self-storage real estate owned in the December 31, 2017 Consolidated Balance Sheet. See below for additional discussion. The following table provides a reconciliation of the funded principal to the fair market value of investments at December 31, 2016 : Funded principal $ 86,905 Adjustments: Unamortized origination fees (1,056) Change in fair value of investments 19,242 Other (84) Fair value of investments $ 105,007 The Company has elected the fair value option of accounting for all of its investment portfolio investments in order to provide stockholders and others who rely on the Company’s financial statements with a more complete and accurate understanding of the Company’s economic performance, including its revenues and value inherent in its equity participation in development projects. See Note 4, Fair Value of Financial Instruments , for additional disclosure on the valuation methodology and significant assumptions. No loans were in non-accrual status as of December 31, 2017 and 2016 . A ll of the Company’s development property investments with a Profits Interest would have been accounted for under the equity method had the Company not elected the fair value option. For the year ended December 31, 2017 , the total income (interest income and change in fair value) from one development property investment with a Profits Interest exceeded 20% of the Company’s net income. The Company recorded total income for the year ended December 31, 2017 of $4.9 million from the New York City 1 MSA development property investment with a Profits Interest . The assets and liabilities of the New York City 1 MSA development property investment with a Profits Interest were $15.8 million and $14. 7 million, respectively, at December 31, 2017 . The revenues and net operating loss of the New York City 1 MSA development property investment with a Profits Interest were $16,000 and $0.2 million, respectively, for the year ending December 31, 2017 . The New York City 1 MSA development property investment with a Profits Interest had not been closed as of December 31, 2016 . The assets and liabilities of the equity method investees excluding the New York City 1 MSA development property investment with a Profits Interest approximated $218.9 million and $179.7 million, respectively, at December 31, 2017 . The revenues and net operating income of the equity method investees excluding the New York City 1 MSA development property investment with a Profits Interest were $3.0 million and $0.5 million, respectively, for the year ended December 31, 2017 . For the year ended December 31, 2016, the total income (interest income and change in fair value) from one development property investment with a Profits Interest exceeded 20% of the Company’s net income. The Company recorded total income for the year ended December 31, 2016 of $3.6 million from the Atlanta 2 MSA development property investment with a Profits Interest. The assets and liabilities of the Atlanta 2 MSA development property investment with a Profits Interest were $5.8 million and $5.6 million, respectively, at December 31, 2016, and were $3.4 million and $2.7 million, respectively, at December 31, 2015. The revenues and net operating loss of the Atlanta 2 MSA development property investment with a Profits Interest were $0.1 million and $0.2 million, respectively, for the year ending December 31, 2016. The Atlanta 2 MSA development property investment with a Profits Interest had no significant revenues or expenses for the year ended December 31, 2015 as the underlying development property was still under construction during this period. The assets and liabilities of the equity method investees excluding the Atlanta 2 MSA development property investment with a Profits Interest approximated $65.2 million and $54.6 million, respectively, at December 31, 2016, and approximated $41.0 million and $28.5 million, respectively, at December 31, 2015. The revenues and net operating losses of the equity method investees excluding the Atlanta 2 MSA development property investment with a Profits Interest were $0.8 million and $0.7 million, respectively, for the year ended December 31, 2016. These investees had no significant revenues or expenses for the year ended December 31, 2015 since the development properties were under construction during this period. For thirteen and one of the Company’s development property investments with a Profits Interest as of December 31, 2017 and 2016, respectively , an investor has an option to put its interest to the Company upon the event of default of the underlying property loans. The put, if exercised, requires the Company to purchase the member’s interest at the original purchase price plus a yield of 4.5% on such purchase price. The Company concluded that the likelihood of loss is remote and assigned no value to this put provision at December 31, 2017 and 2016 . Investments reported at cost On February 3, 2017, the Company purchased 50% of the economic rights of the Class A membership units of a limited liability company that own ed the Orlando 1 development property investment with a Profits Interest for $1.3 million and increased its Profits Interest on this development property investment from 49.9% to 74.9% . The Class A member retained all management and voting rights in the limited liability company. Previously, the Company accounted for this investment as an equity method investment. Because the Company was entitled to greater than 50% of the residual profits from the investment, the Company accounted for this investment as a real estate investment in its consolidated financial statements in accordance with ASC 310 , Receivables (“ASC 310”) . On August 9, 2017, the Company purchased the remaining 50% of the economic rights of the Class A membership units of a limited liability company that own ed the Orlando 1 development property investment with a Profits Interest and 100% of the economic rights of the Class A membership units of a limited liability company that owns the Orlando 2 development property investment with a Profits Interest for $1.6 million and increased its Profits Interest on these development property investment from 74.9% to 100% and 49.9% to 100% , respectively. The Orlando 2 investment is an additional phase to the Orlando 1 investment that is being operated as one self-storage facility. The Company now owns all management and voting rights in the limited liability companies. Previously, the Company accounted for the Orlando 1 investment as a real estate investment and the Orlando 2 investment as an equity method investment. Because the Company is now entitled to greater than 50% of the residual profits from the Orlando 2 investment, the Company account s for this investment as a real estate investment in its consolidated financial statements. The Company will continue to account for the Orlando 1 investment as a real estate investment. Accordingly, as of August 9, 2017, the Company wholly owns and fully consolidates these investments in the accompanying consolidated financial statements. The Company evaluated th is purchase under ASU 2017-01 and concluded that the transaction consisted of a single identifiable asset that represents substantially all of the fair value of the gross assets acquired. Therefore, this transaction does not constitute the purchase of a business and has been treated as an asset acquisition. In accordance with ASU 2017-01, as of August 9, 2017, the Company’s basis in the self-storage real estate owned is recorded at cost (equal to the cash consideration paid and the funded loan balance, net of unamortized origination fees), plus unrealized gains recorded at the date of acquisition, which was February 3, 2017 for the Orlando 1 development property investment and August 9, 2017 for the Orlando 2 development property investment. The allocation to the basis of the assets acquired is based on their relative fair values. The following table shows the Company’s basis in this facility as of August 9, 2017: Funded principal balance, net of unamortized origination fees $ 9,139 Unrealized appreciation on investments 3,780 Cash consideration paid, inclusive of transaction costs 2,856 Net property working capital acquired 52 Total cost basis $ 15,827 The following table shows the impact of this real estate investment on the Company’s accompanying Consolidated Balance Sheet as of December 31, 2017 : December 31, 2017 Cash and cash equivalents $ 121 Prepaid expenses and other assets 2 Land 1,505 Building and improvements 13,720 In-place leases 602 Accumulated depreciation and amortization (472) Self-storage real estate owned $ 15,355 Accounts payable, accrued expenses and other liabilities $ 67 The following table shows the impact of this real estate investment on the Company’s accompanying Consolidated Statement of Operations for the year ended December 31, 2017 : Year ended December 31, 2017 Rental revenues $ 530 Property operating expenses of real estate owned (271) Depreciation and amortization expense (472) Total expenses of real estate owned $ (743) |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 4. FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value option under ASC 825-10 allows companies to elect to report selected financial assets and liabilities at fair value. The Company has elected the fair value option of accounting for its development property investments and operating property loan investments in order to provide stockholders and others who rely on the Company’s financial statements with a more complete and accurate understanding of the Company’s economic performance, including its revenues and value inherent in its equity participation in self-storage development projects. The Company applies ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), which defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands disclosure of fair value measurements. ASC 820 defines fair value as the price that would be received for an investment in a current sale, which assumes an orderly transaction between market participants on the measurement date. ASC 820 requires the Company to assume that the investment is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact. In accordance with ASC 820, the Company considers its principal market as the market for the purchase and sale of self-storage properties, which the Company believes would be the most likely market for the Company’s loan investments given the nature of the collateral securing such loans and the types of borrowers. ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. In accordance with ASC 820, these inputs are summarized in the three broad levels listed below: Level 1- Quoted prices for identical assets or liabilities in an active market. Level 2- Financial assets and liabilities whose values are based on the following: (i) Quoted prices for similar assets or liabilities in active markets; (ii) Quoted prices for identical or similar assets or liabilities in non-active markets; (iii) Pricing models whose inputs are derived principally from or corroborated by observable market data for substantially the full term of the asset or liability. Level 3- Prices or valuation techniques based on inputs that are both unobservable and significant to the overall fair value measurement. The carrying values of cash, other loans, receivables, senior loan participations and payables approximate their fair values due to their short-term nature or due to a variable interest rate. Cash, receivables, and payables are categorized as Level 1 instruments in the measurement of fair value. Other loans and senior loan participations are categorized as Level 2 instruments in the measurement of fair value as the fair values of these investments are determined using a discounted cash flow model with inputs from third-party pricing sources and similar instruments. The below table summarizes the valuation techniques and inputs used to measure the fair value of items categorized in Level 3 of the fair value hierarchy. Instrument Valuation technique and assumptions Hierarchy classification Development property investments Valuations are determined using an Income Approach analysis, using the discounted cash flow method model, capturing the prepayment penalty / call price schedule as applicable. The valuation models are calibrated to the total investment net drawn amount as of the issuance date. Level 3 Development property investments with a profits interest (a) Valuations are determined using an Income Approach analysis, using the discounted cash flow method model, capturing the prepayment penalty / call price schedule as applicable. The valuation models are calibrated to the total investment net drawn amount as of the issuance date factoring in the value of the Profits Interests. Level 3 An option-pricing method (OPM) framework is utilized to calculate the value of the Profits Interests. At certain stages in the investments lifecyle (as described below), the OPM requires an enterprise value derived from fair value of the underlying real estate project. The fair value of the underlying real estate project is determined using either a discounted cash flows model or direct capitalization approach. The Company engaged a third-party independent valuation firm to perform certain limited procedures that the Company identified and requested the independent valuation firm to perform. The analysis performed by the independent valuation firm was based upon data and assumptions provided to it by the Company and received from third party sources. The independent valuation firm relied on certain data and assumptions provided to it by the Company as being accurate while independently verifying others through the use of third party sources. Upon completion of the limited procedures, the independent valuation firm concluded that the fair value of investments subjected to the limited procedures appears to be reasonable. The Company is ultimately and solely responsible for determining the fair value of the investments on a quarterly basis in good faith. Operating property loans Valuations are determined using an Income Approach analysis, using the discounted cash flow method model, capturing the prepayment penalty / call price schedule as applicable. Level 3 (a) Certain of the Company's development property investments include Profits Interest s. The Company’s development property investments and operating property loan investments are valued using two different valuation techniques. The first valuation technique is an income approach analysis of the debt instrument components of the Company’s investments. The second valuation technique is an option pricing model (“OPM”) that is used to determine the fair value of any Profits Interest s associated with an investment. The valuation models are calibrated to the total investment net drawn amount as of the issuance date factoring in the value of the Profits Interest s. At the issuance date of each development property investment, generally the value of the property underlying such investment approximates the sum of the net investment drawn amount plus the developer’s equity investment. For development property investments with a Profits Interest , at a certain stage of construction, the OPM incorporates an adjustment to measure entrepreneurial profit. Entrepreneurial profit is a monetary return above total construction costs that provides compensation for the risk of a development project. Under this method, the value of each property is estimated based on the cost incurred to date, plus an estimated earned entrepreneurial profit. Total entrepreneurial profit is estimated as the difference between the projected value of a property at stabilization and the total development costs, including land, building improvements, and lease-up costs. Utilizing information obtained from the market coupled with the Company’s own experience, the Company has estimated that in most cases, approximately one-third of the entrepreneurial profit is earned during the construction period beginning when construction is approximately 40% complete and ending when construction is 100% complete, and approximately two-thirds of the entrepreneurial profit is earned from construction completion through stabilization. For the eight properties between 40% and 100% complete at December 31, 2017 , the Company has estimated the entrepreneurial profit adjustment to the enterprise value input used in the OPM to be equal to one-third of the estimated entrepreneurial profit, allocated on a straight-line basis. Ten properties , not including the property reported as self-storage real estate owned, have reached construction completion at December 31, 2017 . For the Company’s development property investments at completion of construction, a discounted cash flow model, based on periodically updated estimates of rental rates, occupancy and operating expenses, is the primary method for projecting value of a project. The Company also will consider inputs such as appraisals which differ from the developer’s equity investment, bona fide third-party offers to purchase development projects, sales of development projects, or sales of comparable properties in its markets. Level 3 Fair Value Measurements The following tables summarize the significant unobservable inputs the Company used to value its investments categorized within Level 3 as of December 31, 2017 and 2016 . These tables are not intended to be all-inclusive, but instead to capture the significant unobservable inputs relevant to the Company’s determination of fair values. As of December 31, 2017 Unobservable Inputs Primary Valuation Weighted Asset Category Techniques Input Estimated Range Average Development property investments (a) Income approach analysis Market yields/discount rate 7.83 - 10.62% 9.00% Exit date (d) 0.08 - 6.71 years 2.96 Development property investments with a profits interest (b) Option pricing model Volatility 63.94 - 94.03% 74.08% Exit date (d) 0.42 - 6.71 years 3.12 years Capitalization rate (c) 5.50 - 6.15% 5.51% Discount rate (c) 8.50 - 9.15% 8.51% Operating property loans Income approach analysis Market yields/discount rate 6.08 - 7.01% 6.47% Exit date (d) 3.98 - 4.65 years 4.37 years (a) The valuation technique for the development property investments with a Profits Interest does not differ from the development property investments without a Profits Interest. Therefore, this line item focuses on all development property investments, including those with a Profits Interest. (b) The valuation technique for the development property investments with a Profits Interest does not differ from the development property investments without a Profits Interest. The development property investments with a Profits Interest only require incremental valuation techniques to determine the value of the Profits Interest. Therefore this line only focuses on the Profits Interest valuation. (c) Eighteen properties were 40% - 100% complete, thus requiring a capitalization rate and/or discount rate to derive entrepreneurial profit, which are used to derive the enterprise value input to the OPM. Capitalization rates are estimated based on current data derived from independent sources in the markets in which the Company holds investments. (d) The exit dates for the development property investments are generally the estimated date of stabilization of the underlying property. The exit dates for the operating property loans are the contractual maturity dates. As of December 31, 2016 Unobservable Inputs Primary Valuation Weighted Asset Category Techniques Input Estimated Range Average Development property investments (a) Income approach analysis Market yields/discount rate 7.23 - 9.28% 8.34% Exit date (d) 0.17 - 3.88 years 1.81 years Development property investments with a Profits Interest (b) Option pricing model Volatility 68.72 - 73.46% 73.17% Exit date (d) 1.42 - 3.88 years 2.12 years Capitalization rate (c) 5.25 - 5.50% 5.47% Discount rate 8.25 - 8.50% 8.47% Operating property loans Income approach analysis Market yields/discount rate 6.09 - 7.20% 6.73% Exit date (d) 4.50 - 5.66 years 5.07 years (a) The valuation technique for the development property investments with a Profits Interest does not differ from the development property investments without a Profits Interest. Therefore, this line item focuses on all development property investments, including those with a Profits Interest. (b) The valuation technique for the development property investments with a Profits Interest does not differ from the development property investments without a Profits Interest. The development property investments with a Profits Interest only require incremental valuation techniques to determine the value of the Profits Interest. Therefore this line only focuses on the Profits Interest valuation. (c) Ten properties were 40% - 100% complete, thus requiring a capitalization rate to derive entrepreneurial profit, which is used to derive the enterprise value input to the OPM. Capitalization rates are estimated based on current data derived from independent sources in the markets in which the Company holds investments. (d) The exit dates for the development property investments are generally the estimated date of stabilization of the underlying property. The exit dates for the operating property loans are the contractual maturity dates. The fair value measurements are sensitive to changes in unobservable inputs. A change in those inputs to a different amount might result in a significantly higher or lower fair value measurement. The following provides a discussion of the impact of changes in each of the unobservable inputs on the fair value measurement. Market yields - changes in market yields and discount rates, each in isolation, may change the fair value of certain of the Company’s investments. Generally, an increase in market yields or discount rates may result in a decrease in the fair value of certain of the Company’s investments. The following fluctuations in the market yields/discount rates would have had the following impact on the fair value of the Company’s investments: Increase (decrease) in fair value of investments Change in market yields/discount rates (in millions) December 31, 2017 December 31, 2016 Up 25 basis points $ (1.2) $ (0.3) Down 25 basis points, subject to a minimum yield/rate of 10 basis points 1.2 0.3 Capitalization rate - changes in capitalization rate, in isolation and all else equal, may change the fair value of certain of the Company’s development investments containing Profits Interests. Generally an increase in the capitalization rate assumption may result in a decrease in the fair value of the entrepreneurial profit associated with certain of the Company’s investments. The following fluctuations in the capitalization rates would have had the following impact on the fair value of the Company’s investments: Increase (decrease) in fair value of investments Change in capitalization rates (in millions) December 31, 2017 December 31, 2016 Up 25 basis points $ (2.8) $ (2.1) Down 25 basis points 3.1 2.3 Up 50 basis points (5.3) (3.8) Down 50 basis points 6.4 4.6 Exit date - changes in exit date, in isolation and all else equal, may change the fair value of certain of the Company’s investments. Generally, acceleration in the exit date assumption may result in an increase in the fair value of the Company’s investments. Volatility - changes in volatility, in isolation and all else equal, may change the fair value of certain of the Company’s investments that have Profits Interest s. Generally, an increase in volatility may result in an increase in the fair value of the Profits Interest s in certain of the Company’s investments. Operating cash flow projections - changes in the operating cash flow projections of the underlying self-storage facilities, in isolation and all else equal, may change the fair value of certain of the Company’s investments that have Profits Interest s. Generally, an increase in operating cash flow projections may result in an increase in the fair value of the Profits Interest s in certain of the Company’s investments. The Company also evaluates the impact of changes in instrument-specific credit risk in determining the fair value of investments. There were no gains or losses attributable to changes in instrument-specific credit risk in the years ended December 31, 2017, 2016 and 2015 . Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period. Additionally, the fair value of the Company’s investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that the Company may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If the Company was required to liquidate an investment in a forced or liquidation sale, it could realize significantly less than the value at which the Company has recorded it. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned. The following table presents changes in investments that use Level 3 inputs: Year ended December 31, 2017 2016 Balance at beginning of period $ 105,007 $ 59,822 Net realized gains - - Net unrealized gains 10,804 18,370 Fundings of principal and change in unamortized origination fees 150,217 45,689 Repayments of loans (27,513) (15,037) Payment-in-kind interest 8,575 3,856 Contribution of assets to SL1 Venture (see Note 5, Investment in Real Estate Venture ) - (7,693) Reclassification to self-storage real estate owned (12,919) - Net transfers in or out of Level 3 - - Balance at end of period $ 234,171 $ 105,007 As of December 31, 2017 and 2016 , the total net unrealized appreciation on the investments that use Level 3 inputs was $26.3 million and $19.2 million, respectively. For the years ended December 31, 2017 and 2016 , substantially all of the change in fair value of investments in the Company’s Consolidated Statements of Operations were attributable to unrealized gains relating to the Company’s Level 3 assets still held as of the respective balance sheet date. Transfers between levels, if any, are recognized at the beginning of the quarter in which the transfers occur. |
INVESTMENT IN REAL ESTATE VENTU
INVESTMENT IN REAL ESTATE VENTURE | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENT IN REAL ESTATE VENTURE [Abstract] | |
INVESTMENT IN REAL ESTATE VENTURE | 5. INVESTMENT IN REAL ESTATE VENTURE On March 7, 2016, the Company, through its Operating Company, entered into the Limited Liability Company Agreement (the “JV Agreement”) of Storage Lenders LLC, a Delaware limited liability company, to form a real estate venture (the “SL1 Venture”) with HVP III Storage Lenders Investor, LLC (“HVP III”), an investment vehicle managed by Heitman Capital Management LLC (“Heitman”). The SL1 Venture was formed for the purpose of providing capital to developers of self-storage facilities identified and underwritten by the Company. Upon formation, HVP III committed $110.0 million for a 90% interest in the SL1 Venture, and the Company committed $12.2 million for a 10% interest. On March 31, 2016, the Company contributed to the SL1 Venture three of its existing development property investments with a Profits Interest located in Miami and Fort Lauderdale, Florida that were not yet under construction. These investments had an aggregate committed principal amount of approximately $41.9 million and an aggregate drawn balance of $8.1 million. In exchange, the Company’s initial funding commitment of $12.2 million was reduced by $8.1 million, representing the Company’s initial “Net Invested Capital” balance as defined in the JV Agreement. The Company accounted for this contribution in accordance with ASC 845, Nonmonetary Transactions , and recorded an investment in the SL1 Venture based on the fair value of the contributed development property investments, which is the same as carryover basis. The fair value of the contributed development property investments as of March 31, 2016 was $7.7 million. Pursuant to the JV Agreement, Heitman, in fulfilling its initial $110.0 million commitment, provides capital to the SL1 Venture as cash is required, including funding draws on the three contributed development property investments. During the year ended December 31, 2016 , HVP III and the Company agreed to true up the balances in the respective members’ capital accounts to be in accordance with the 90% commitment and 10% commitment made by HVP III and the Company, respectively. Accordingly, during the year ended December 31, 2016 , HVP III contributed cash of $7.3 million to the SL1 Venture, and the Company received a $7.3 million cash distribution as a return of its capital. As of December 31, 2017 , the SL1 Venture had closed on eight new development property investments with a Profits Interest with an aggregate commitment amount of approximately $81.4 million, bringing the total aggregate commitment of SL1 Venture’s investments to $123.3 million as of December 31, 2017 . Accordingly, HVP III’s total commitment for a 90% interest in the SL1 Venture is $111.0 million, and the Company’s total commitment for a 10% interest in the SL1 Venture is $12.3 million. Under the JV Agreement, the Company r eceive s a priority distribution (after debt service and any reserve but before any other distributions) out of operating cash flow and residual distributions based upon 1% of the committed principal amount of loans made by the SL1 Venture, exclusive of the loans contributed to the SL1 Venture by the Company. Operating cash flow of the SL1 Venture (after debt service, reserves and the foregoing priority distributions) will be distributed in accordance with capital commitments. Residual cash flow from capital and other events (after debt service, reserves and priority distributions) will be distributed (i) pro rata in accordance with capital commitments (its “Percentage Interest”) until each member has received a return of all capital contributed; (ii) pro rata in accordance with each member’s Percentage Interest until Heitman has achieved a 14% internal rate of return; (iii) to Heitman in an amount equal to its Percentage Interest less 10% and to the Company in an amount equal to the Company’s Percentage Interest plus 10% until Heitman has achieved a 17% internal rate of return; (iv) to Heitman in an amount equal to its Percentage Interest less 20% and to the Company in an amount equal to the Company’s Percentage Interest plus 20% until Heitman has achieved a 20% internal rate of return; and (v) any excess to Heitman in an amount equal to its Percentage Interest less 30% and to the Company in an amount equal to the Company’s Percentage Interest plus 30% . However, the Company will not be entitled to any such promoted interest prior to the earlier to occur of the third anniversary of the JV Agreement and Heitman receiving distributions to the extent necessary to provide Heitman with a 1.48 multiple on its contributed capital. Since the allocation of cash distributions and liquidating distributions are determined as described in the preceding paragraph, the Company has applied the hypothetical-liquidation-at-book-value (“HLBV”) method to allocate the earnings of SL1 Venture. Under the HLBV approach, the Company’s share of the investee’s earnings or loss is calculated by: The Company’s capital account at the end of the period assuming that the investee was liquidated or sold at book value, plus Cash distributions received by the Company during the period, minus Cash contributions made by the Company during the period, minus The Company’s capital account at the beginning of the period assuming that the investee were liquidated or sold at book value. SL1 Venture has elected the fair value option of accounting for its development property investments with a Profits Interest , which are equity method investments of SL1 Venture. The assumptions used to value SL1 Venture’s investments are materially consistent with those used to value the Company’s investments. As of December 31, 2017 , SL1 Venture had eleven development property investments with a Profits Interest as described in more detail in the table below: Metropolitan Remaining Statistical Area Total Investment Funded Unfunded Closing Date ("MSA") Commitment Investment (1) Commitment Fair Value 5/14/2015 Miami 1 (2) (3) $ 13,867 $ 10,348 $ 3,519 $ 11,950 5/14/2015 Miami 2 (2) (3) 14,849 10,187 4,662 10,945 9/25/2015 Fort Lauderdale (2) (3) 13,230 8,955 4,275 10,216 4/15/2016 Washington DC (4) 17,269 15,698 1,571 17,600 4/29/2016 Atlanta 1 (3) 10,223 7,093 3,130 7,778 7/19/2016 Jacksonville (4) 8,127 7,131 996 10,895 7/21/2016 New Jersey 7,828 1,967 5,861 1,908 8/15/2016 Atlanta 2 (4) 8,772 7,367 1,405 8,435 8/25/2016 Denver (4) 11,032 8,690 2,342 10,280 9/28/2016 Columbia (4) 9,199 7,925 1,274 8,843 12/22/2016 Raleigh (3) 8,877 4,280 4,597 4,603 Total $ 123,273 $ 89,641 $ 33,632 $ 103,453 (1) Represents principal balance of loan gross of origination fees. (2) These development property investments (having approximately $8.1 million of outstanding principal at contribution) were contributed to the SL1 Venture on March 31, 2016 by the Company. (3) Facility had achieved at least 40% construction completion but had not received certificate of occupancy as of December 31, 2017. See Note 4, Fair Value of Financial Instruments , for information regarding recognition of entrepreneurial profit. (4) Facility had received certificate of occupancy as of December 31, 2017. See Note 4, Fair Value of Financial Instruments , for information regarding recognition of entrepreneurial profit. As of December 31, 2017 , the SL1 Venture had total assets of $103.7 million and total liabilities of $3.3 million. During the year ended December 31, 2017 , the SL1 Venture had net income of $18.7 million, of which $2.3 million was allocated to the Company and $16.4 million was allocated to HVP III under the HLBV method. At December 31, 2017 , $0.2 million of transaction expenses were included in the carrying amount of the Company’s investment in the SL1 Venture. Additionally, the Company may from time to time make advances to the SL1 Venture. At December 31, 2017 , the Company had $3.2 million in advances to the SL1 Venture, and the related interest on these advances are classified in equity in earnings from unconsolidated real estate venture in the Consolidated Statements of Operations. As of December 31, 2016, the SL1 Venture had total assets of $28.7 million and total liabilities of $2.4 million. During the year ended December 31, 2016, the SL1 Venture had net income of $1.1 million, of which income of $1.2 million was allocated to the Company and loss of $0.1 million was allocated to HVP III under the HLBV method. At December 31, 2016, $0.2 million of transaction expenses were included in the carrying amount of the Company’s investment in the SL1 Venture. Additionally, the Company may from time to time make advances to the SL1 Venture. At December 31, 2016, the Company had $2.3 million in advances to the SL1 Venture, and the related interest on these advances are classified in equity in earnings from unconsolidated real estate venture in the Consolidated Statements of Operations. In accordance with the JV Agreement, for each development property investment, the borrower must deliver to the SL1 Venture a completion guarantee whereby the borrower agrees to cover all costs in excess of the agreed-upon budget amount. Additionally, the Company is required to deliver to the SL1 Venture a backstop completion guarantee for each development property investment to guarantee completion in the event the borrower does not satisfy its obligations. The Company concluded that the likelihood of loss is remote and assigned no value to these guarantees as of December 31, 2017 and 2016 . Under the JV Agreement, Heitman and the Company will seek to obtain and, if obtained, will share joint rights of first refusal to acquire self-storage facilities that are the subject of development property investments made by the SL1 Venture. Additionally, so long as the Company, through its operating subsidiary, is a member of the SL1 Venture and the SL1 Venture holds any assets, the Company will not make any investment of debt or equity or otherwise, directly or indirectly, in one or more new joint ventures or similar programs for the purposes of funding or providing development loans or financing, directly or indirectly, for the development, construction or conversion of self-storage facilities, in each case without first offering such opportunity to Heitman to participate on substantially the same terms as those set forth in the JV Agreement, either through the SL1 Venture or a newly formed real estate venture. The JV Agreement permits Heitman to cause the Company to repurchase from Heitman its Developer Equity Interests (as defined in the JV Agreement) in certain limited circumstances. Under the JV Agreement, if a developer causes to be refinanced a self-storage facility with respect to which the SL1 Venture has made a development property investment and such refinancing does not coincide with a sale of the underlying self-storage facility, then at any time after the fourth anniversary of the commencement of the SL1 Venture, Heitman may either put to the Company its share of the Developer Equity Interests in respect of each such development property investment, or sell Heitman’s Developer Equity Interests to a third party. The Company concluded that the likelihood of loss is remote and assigned no value to these puts as of December 31, 2017 and 2016 . The Company is the managing member of the SL1 Venture and will manage and administer (i) the day-to-day business and affairs of the SL1 Venture and any of its acquired properties and (ii) loan servicing and other administration of the approved development property investments. The Company will be paid a monthly expense reimbursement amount by the SL1 Venture in connection with its role as managing member, as set forth in the JV Agreement. Heitman may remove the Company as the managing member of the SL1 Venture if it commits an event of default (as defined in the JV Agreement), if it undergoes a change of control (as defined in the JV Agreement), or if it becomes insolvent. Heitman approve s all “Major Decisions” of the SL1 Venture, as defined in the JV Agreement, including, but not limited to, each investment of capital, the incurrence of any indebtedness, the sale or other disposition of assets of the SL1 Venture, the replacement of the managing member, the acceptance of new members into the SL1 Venture and the liquidation of the SL1 Venture. For four of the SL1 Venture development property investments with a Profits Interest , an investor has an option to put its interest to the Company upon the event of default of the underlying property loans. The put, if exercised, requires the Company to purchase the member’s interest at the original purchase price plus a yield of 4.5% on such purchase price. The Company concluded that the likelihood of loss is remote and assigned no value to these put options at December 31, 2017 and 2016 . |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2017 | |
VARIABLE INTEREST ENTITIES [Abstract] | |
VARIABLE INTEREST ENTITIES | 6. VARIABLE INTEREST ENTITIES Development Property Investments The Company holds variable interests in its development property investments. The Company has determined that these investees qualify as VIEs because the entities do not have enough equity to finance their activities without additional subordinated financial support. In determining whether the Company is the primary beneficiary of the development property VIEs, the Company identified the activities that most significantly impact the development property VIEs’ economic performance. Such activities are (1) managing the construction and operations of the project, (2) selecting the property manager, (3) making financing decisions, (4) authorizing capital expenditures and (5) disposing of the property. Although the Company has certain participating and protective rights, it does not have the power to direct the activities that most significantly impact the development property VIEs’ economic performance and is not the primary beneficiary; therefore, the Company does not consolidate the development property VIEs. The Company has recorded assets of $2 28.2 million and $95.1 million at December 31, 2017 and 2016 , respectively, for its variable interest in the development property VIEs which is included in the development property investments at fair value line item in the Consolidated Balance Sheets. The Company’s maximum exposure to loss as a result of its involvement with the development property VIEs is as follows: December 31, 2017 2016 Assets recorded related to VIEs $ 228,233 $ 95,102 Unfunded loan commitments to VIEs 310,750 54,950 Maximum exposure to loss $ 538,983 $ 150,052 The Company has a construction completion guaranty from the managing members of the development property VIEs or individual affiliates/owners of such managing members. Investment in Real Estate Venture The Company determined that the SL1 Venture qualifies as a VIE because it does not have enough equity to finance its activities without additional subordinated financial support. In determining whether the Company is the primary beneficiary of the entity, the Company identified the activities that most significantly impact the entity’s economic performance. Such activities are (1) approving self-storage development investments and acquiring self-storage properties, (2) managing directly-owned properties, (3) obtaining debt financing, and (4) disposing of investments. Although the Company has certain rights, it does not have the power to direct the activities that most significantly impact the entity’s economic performance and thus is not the primary beneficiary. As such, the Company does not consolidate the entity and accounts for its unconsolidated interest in the SL1 Venture using the equity method of accounting. The Company’s investment in the SL1 Venture is included in the investment in and advances to real estate venture balance in the Consolidated Balance Sheets, and earnings from the SL1 Venture are included in equity in earnings from unconsolidated real estate venture in the Company’s Consolidated Statements of Operations. The Company’s maximum contribution to the SL1 Venture is $12.3 million , and as of December 31, 2017 and 2016 , the Company’s remaining unfunded commitment to the SL1 Venture is $3.4 million and $9.4 million, respectively . |
OTHER LOANS, AT COST
OTHER LOANS, AT COST | 12 Months Ended |
Dec. 31, 2017 | |
OTHER LOANS, AT COST [Abstract] | |
OTHER LOANS, AT COST | 7 . OTHER LOANS, AT COST As of December 31, 2017 , the Company had no outstanding bridge loans. During the year ended December 31, 2017 , the Company received repayments of $17.4 million related to seven bridge loans and entered into two new bridge loans with an aggregate commitment and funded amount of $7.3 million, which are included in the seven bridge loans repaid during the year. At December 31, 2016 , the Company had executed five bridge loans with a balance of $10.1 million extended to four limited liability companies that are under common control with borrowers in certain of the Company’s development property investments. These bridge loans were accounted for under the cost method, and fair value approximates cost at December 31, 2016 . None of these bridge loans were in non-accrual status as of December 31, 2016 . The Company determined that no allowance for loan loss was necessary at December 31, 2016 . The Company also had executed nine revolving loan agreements with an aggregate outstanding principal amount of $1.0 million at December 31, 2017 . Eight of the agreements are with individuals who are owners of limited liability companies, one is with a limited liability company, and all are personally guaranteed. Seven of the borrowers are either directly or indirectly owners of certain of the Company’s development property investments , and two a re prospective developers. Four of the agreements provide for borrowings of up to $0.5 million, one provides for borrowings of up to $0.1 million, one provides for borrowings of up to $0.25 million, one provides for borrowings of up to $0.35 million, one provides for borrowings of up to $0.7 million, and one agreement provides for borrowings of up to $1.0 million (total of $4.4 million) to fund expenses for pursuit costs to contract for and perform diligence on additional self-storage sites. The revolving loans are typically unsecured but cross-defaulted against development loans. One of the revolving loans is guaranteed by a part owner of one of the Company’s development loan investments, and this guaranty is secured by a pledge of the owner’s membership interest in one of the Company’s development loan investments. The loans bear interest at 6.9 -7.0% per annum and are due in full in three years. During the year ended December 31, 2017 , the Company received repayments on these revolving loan agreements of $3.7 million and draws of $3.0 million . At December 31, 2016 , the Company had executed six revolving loan agreements with an aggregate outstanding principal amount of $1.7 million. These loans are accounted for under the cost method, and fair value approximates cost at December 31, 2017 and 2016 . None of these loans are in non-accrual status as of December 31, 2017 and 2016 . The Company determined that no allowance for loan loss was necessary at December 31, 2017 and 2016 . |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2017 | |
DEBT [Abstract] | |
DEBT | 8 . DEBT Credit Facility On July 25, 2017, the Operating Company entered into a $100 million senior secured revolving credit facility with KeyBank National Association, as administrative agent, KeyBanc Capital Markets Inc., as lead arranger, and the other lenders party thereto (the “Credit Facility”). Pursuant to an accordion feature, the Operating Company may from time to time increase the commitments up to an aggregate amount of $200 million, subject to, among other things, an absence of default under the Credit Facility, as well as receiving commitments from lenders for the additional amounts. At closing, the Operating Company borrowed $20.0 million of the $33.3 million then available under the Credit Facility. The Company used the proceeds to repurchase senior participation interests outstanding on five of the Company’s development investments from the commercial banks who held such senior participation interests, each of whom agreed to participate as lenders in the Credit Facility, and to pay fees and expenses of procuring the Credit Facility. On July 26, 2017, the Operating Company used proceeds from the Company’s recently completed offering of its common stock to fully repay the $20.0 million borrowed at closing, leaving $33.3 million available under the Credit F acility for future draws. The Operating Company intends to use future borrowings under the Credit Facility to fund its investments, to make secured or unsecured loans to borrowers in connection with its investments and for general corporate purposes. On July 25, 2017, the Company and certain wholly-owned subsidiaries of the Operating Company entered into an Unconditional Guaranty of Payment and Performance whereby they have agreed to unconditionally guarantee the obligations of the Operating Company under the Credit Facility. The Credit Facility is secured by substantially all of the Company’s development investments, and other subsidiaries of the Operating Company may be added as guarantors from time to time during the term of the Credit Facility. The Credit Facility has a scheduled maturity date on July 24, 2020 . Borrowings under the Credit Facility are secured by two different pools of collateral: one consisting of the Company’s mortgage loans extended to developers and the other consisting of self-storage properties owned by the Company. The amount available to borrow under the Credit Facility is limited according to a borrowing base valuation of the assets available as collateral. For loans secured by Company mortgage loans, the borrowing base availability is the lesser of (i) 60% of the value of the Company mortgage loans, (ii) the maximum principal amount which would not cause the outstanding loans under the Credit Facility secured by the Company mortgage loans to be greater than 50% of the underlying real estate asset fair value securing the Company mortgage loans and (iii) for any Company mortgage loan that has been included in the borrowing base for greater than 18 months, the maximum principal amount which would not cause the ratio of (a) adjusted net operating income for the underlying real estate asset securing such Company mortgage loan divided by (b) an implied debt service amount to be less than 1.30 to 1.00. For loans secured by self-storage properties, the borrowing base availability is the lesser of (i) the maximum principal amount that would not cause the outstanding loans under the Credit Facility secured by self-storage properties to be greater than 65% of the value of such self-storage properties and (ii) the maximum principal amount that would not cause the ratio of (i) aggregate adjusted net operating income from all self-storage properties included in the borrowing base divided by (ii) an implied debt service coverage amount to be less than 1.30 to 1.00. The Credit Facility includes certain requirements that may limit the borrowing capacity available to the Company from time to time. Under the terms of the Credit Facility, the outstanding principal balance of the revolving credit loans, swing loans and letter of credit liabilities under the Credit Facility may not exceed the borrowing base availability. Each loan made under the Credit Facility will bear interest at either, at the Operating Company’s election, a base rate plus a margin of either 1.75% or 2.75% or LIBOR plus a margin of either 2.75% or 3.75% , in each case depending on the borrowing base available for such loan. In addition, the Operating Company is required to pay a fee of a per diem rate of 0.35% per annum, times the excess of the sum of the commitments of the lenders, as in effect from time to time, over the outstanding principal amount of revolving credit loans under the Credit Facility. The Credit Facility contains certain customary representations and warranties and financial and other affirmative and negative covenants. The Operating Company’s ability to borrow under the Credit Facility is subject to ongoing compliance by the Company and the Operating Company with various customary restrictive covenants, including but not limited to limitations on its incurrence of indebtedness, investments, dividends, asset sales, acquisitions, mergers and consolidations and liens and encumbrances. In addition, the Credit Facility contains certain financial covenants including the following: total consolidated indebtedness not exceeding 50% of gross asset value; a minimum fixed charge coverage ratio (defined as the ratio of consolidated adjusted earnings before interest, taxes, depreciation and amortization to consolidated fixed charges) of 0.75 to 1.00 during the period between July 25, 2017 and June 30, 2018, 0.90 to 1 during the period between July 1, 2018 and December 31, 2018 and 1.20 to 1 during the period between January 1, 2019 through the maturity of the Credit Facility; a minimum consolidated tangible net worth (defined as gross asset value less total consolidated indebtedness) of $183.3 million plus 75% of the sum of any additional net offering proceeds; when aggregate loan commitments under the Credit Facility exceed $50 million, unhedged variable rate debt cannot exceed 25% of consolidated total indebtedness; liquidity of no less than $50 million for the period between July 25, 2017 and December 31, 2018 or on and after December 31, 2018, liquidity of no less than the sum of (i) total unfunded loan commitments of the Company and its subsidiaries plus (ii) $25 million; and a debt service coverage ratio (defined as the ratio of consolidated adjusted earnings before interest, taxes, depreciation and amortization to the Company’s consolidated interest expense and debt principal payments for any given period) of 2 to 1. The Credit Facility provides for standard events of default, including nonpayment of principal and other amounts when due, non-performance of covenants, breach of representations and warranties, certain bankruptcy or insolvency events, and changes in control. If an event of default occurs and is continuing under the Credit Facility, the lenders may, among other things, terminate their commitments under the Credit Facility and require the immediate payment of all amounts owed thereunder. As of December 31, 2017 , no borrowings were outstanding under the Credit Facility and $34.2 million was available for borrowing under the Credit Facility. As of December 31, 2017 , the Company was in compliance with all of its financial covenants and it anticipates being in compliance with all of its financial covenants throughout the term of the Credit Facility. Senior Participations On April 29, 2016, the Company sold senior participations (the “Operating Property A Notes”) in two separate operating property loans in the Nashville, Tennessee and New Orleans, Louisiana MSAs, having an aggregate outstanding principal balance of $7.8 million, to a regional commercial bank in exchange for cash consideration of $5.0 million. The sale of Operating Property A Notes was effected pursuant to participation agreements between the bank and the Company (the “Participation Agreements”). On December 14, 2016, the Company received proceeds of $5.2 million for an early payoff on the operating property loan in the Nashville, Tennessee MSA, and the Company repurchased the senior participation on this loan that was included in Operating Property A Notes. The Company paid the regional commercial bank a total of $3.4 million in connection with the repurchase, which included a $0.1 million prepayment penalty that is recorded in interest expense in the Consolidated Statements of Operations. The Company paid to the bank interest on the outstanding balance of the Operating Property A Note at the rate of 30-day LIBOR plus 3.85% for the year ended December 31, 2017 . On July 20, 2017, the Company received proceeds of $2.8 million for an early payoff on the remaining Operating Property A Note in the New Orleans, Louisiana MSA, and the Company repurchased the senior participation on this loan. The Company paid the regional commercial bank a total of $1.8 million in conjunction with the repurchase, which included an $18,000 prepayment penalty. As such, there was no outstanding balance for the Operating Property A Note at December 31, 2017 . On May 27, 2016, the Company sold a third senior participation in a construction loan on a facility in the Miami, Florida MSA (“the Miami A Note”), having a commitment amount of $17.7 million, to the same commercial bank that purchased the Operating Property A Notes in exchange for a commitment by the bank to provide net proceeds of $10.0 million to fund construction draws under the construction loan (the “Miami A Note Sale”) once the total outstanding principal balance exceeds $7.7 million. The Miami A Note Sale was effected pursuant to a participation agreement between the bank and the Company (the “Miami Participation Agreement”). Under the Miami Participation Agreement, the Company will continue to service the underlying loan as long as it is not in default under the Miami Participation Agreement. The bank has the option to “put” the senior participation to the Company in the event the underlying borrower defaults on the underlying loan or if the Company defaults under the Miami Participation Agreement. As part of the Participation Agreement, the Company will maintain a minimum aggregate balance of $0.5 million in depository or money market accounts at the bank, and if such balance is not maintained, the interest rate will increase. The Company will pay to the bank interest on the outstanding balance of the Miami A Note at the rate of 30-day LIBOR plus 3.10% , or 4.66% at December 31, 2017 . The Company also paid a loan fee of 100 basis points, or $0.1 million upon closing of the loan. The Miami A Note initially had a maturity date of July 1, 2017. During the year ended December 31, 2017 , the maturity date was extended to January 31, 2018 , and subsequently extended to March 31, 2018 on January 30, 2018, at which time the Company is obligated to repurchase the Miami A Note at the then outstanding principal balance thereof. The outstanding balance for the Miami A Note as of December 31, 2017 was $0.7 million. On July 26, 2016, the Company sold to a national commercial bank operating in the Company’s markets senior participations in the construction loans of four separate development property investments with a Profits Interest (the “July 2016 A Notes”) (one in the Orlando, Florida MSA, two in the Atlanta, Georgia MSA, and one in the Tampa, Florida MSA) having an aggregate committed principal balance of approximately $21.8 million and earning interest at a rate of 6.9% per annum, in exchange for a commitment by the bank to provide net proceeds of $14.2 million (the “July 2016 A Note Sales”). Construction has been completed and certificates of occupancy have been issued for these properties. At closing, the bank paid to the Company approximately $12.5 million for senior participations in the construction loans and will fund up to a total of $14.2 million as future draws are made on the construction loans. The Company paid interest to the bank on its senior participations at the annual rate of 30-day LIBOR plus 3.50% , for the year ended December 31, 2017 . On July 25, 2017, the Company entered into the Credit Facility and subsequently repurchased the July 2016 A Notes. As such, there is no outstanding balance as of December 31, 2017 . On October 18, 2016, the Company sold to a local Memphis, Tennessee-based community bank a senior participation in the construction loan of one of the Company’s development property investments with a Profits Interest (the “October 2016 A Note”) in Charlotte, North Carolina having a committed principal balance of approximately $6.8 million and earning interest at a rate of 6.9% per annum, in exchange for a commitment by the bank to provide net proceeds of $4.4 million (the “October 2016 A Note Sale”). Construction has been completed and a certificate of occupancy has been issued for this property. At closing, the bank paid to the Company approximately $3.4 million for the senior participation in the construction loan and will fund up to a total of $4.4 million as future draws are made on the construction loans. The Company paid interest to the bank on the senior participation at the annual rate of 30-day LIBOR plus 3.50% , for the year ended December 31, 2017 . On July 25, 2017, the Company entered into the Credit Facility and subsequently repurchased the October 2016 A Note. As such, there is no outstanding balance as of December 31, 2017 . In connection with the repurchase of the July 2016 A Notes and the October 2016 A Notes and entering into the Credit Facility, the Company recorded a loss on modification of debt of $0.2 million for the year ended December 31, 2017 . The table below details the bank commitment and outstanding balance of the Company’s senior participation at December 31, 2017 : Commitment by Bank Amount Borrowed Remaining Funds Interest Rate Effective Interest Rate at December 31, 2017 Maturity Date (1) Miami A Note (2) $ 10,001 $ 732 $ 9,269 30-day LIBOR + 3.10% 4.66 % January 31, 2018 Unamortized fees (14) Net balance $ 718 (1) On January 30, 2018, the maturity date was extended to March 31, 2018 . (2) The funded principal in our Miami construction loan is pledged as collateral. The table below details the bank commitments and outstanding balances of the Company’s senior participations at December 31, 2016 : Commitment by Bank Amount Borrowed Remaining Funds Interest Rate Effective Interest Rate at December 31, 2016 Maturity Date Operating Property A Note (1) $ 1,820 $ 1,820 $ - 30-day LIBOR + 3.85% 4.47 % April 1, 2019 Miami A Note (2) 10,001 - 10,001 30-day LIBOR + 3.10% 3.72 % July 1, 2017 July 2016 A Notes (3) 14,185 13,420 765 30-day LIBOR + 3.50% 4.12 % August 1, 2019 October 2016 A Note (4) 4,405 3,375 1,030 30-day LIBOR + 3.50% 4.12 % September 1, 2021 Total $ 30,411 18,615 $ 11,796 Unamortized fees (33) Net balance $ 18,582 (1) The funded principal in our New Orleans operating property loan is pledged as collateral. (2) The funded principal in our Miami construction loan is pledged as collateral. (3) The funded principal in our Atlanta 1, Atlanta 2, Tampa 1 and Orlando 1 development property investments is pledged as collateral. (4) The funded principal in our Charlotte 1 development property investments is pledged as collateral. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2017 | |
STOCKHOLDERS' EQUITY [Abstract] | |
STOCKHOLDERS' EQUITY | 9 . STOCKHOLDERS’ EQUITY The Company had 14,429,055 and 8,956,354 shares of common stock issued and outstanding , which included 185,002 and 120,001 of nonvested restricted stock, as of December 31, 2017 and 2016 , respectively. The Company had 40,000 and 10,000 shares of Series A Preferred Stock issued and outstanding as of December 31, 2017 and 2016 , respectively. Common Stock Offerings On April 5, 2017, the Company entered into an at-the-market continuous equity offering program (“ATM Program”) with an aggregate offering price of up to $50.0 million. As of December 31, 2017 , the Company has issued and sold an aggregate of 1,279,706 shares of common stock at a weighted average price of $22.35 per share under the ATM Program, receiving net proceeds after commissions and other offering costs of $27.8 million. On June 27, 2017, the Company received $83.9 million in proceeds, net of underwriter’s discount and offering costs, related to the public offering of 4,025,000 shares of common stock. On December 13, 2016, the Company received $53.5 million in proceeds, net of underwriter’s discount and offering costs, related to the issuance of 2,996,311 shares of common stock. O n April 9, 2015, the Company completed the sale of shares of common stock to the underwriters of its IPO pursuant to the underwriters’ over-allotment option. The Company issued 750,000 shares of common stock and received $14.0 million, net of underwriter’s discount. On April 1, 2015, the Company closed its IPO and received $93.0 million in proceeds, net of underwriter’s discount. Simultaneously, the Company received $5.0 million in proceeds from the concurrent private placement with an affiliate of its founder. In connection with these transactions, the Company issued 5,000,000 and 250,000 shares of common stock, respectively and the initial 1,000 shares of common stock issued on October 2, 2014 were retired. Stock Repurchase Plan On May 20, 2016, the Company’s Board of Directors authorized a share repurchase program for the repurchase of up to $10.0 million of the outstanding shares of common stock of the Company. As of December 31, 2017 , the Company had repurchased and retired a total of 213,078 shares of its common stock at an aggregate cost of approximately $3.2 million. As of December 31, 2017 , the Company has $6.8 million remaining under the Board’s authorization to repurchase shares of its common stock. Equity Incentive Plan In connection with the IPO, the Company established the 2015 Equity Incentive Plan for the purpose of attracting and retaining directors, executive officers, investment professionals and other key personnel and service providers, including officers and employees of the Manager and other affiliates, and to stimulate their efforts toward the Company’s continued success, long-term growth and profitability. The 2015 Equity Incentive Plan provides for the grant of stock options, share awards (including restricted common stock and restricted stock units), stock appreciation rights, dividend equivalent rights, performance awards, annual incentive cash awards and other equity-based awards, including Long-Term Incentive Plan (“LTIP”) units, which are convertible on a one-for-one basis into Operating Company Units (“OC Units”). A total of 200,000 shares of common stock were reserved for issuance pursuant to the 2015 Equity Incentive Plan, subject to certain adjustments set forth in the plan. On April 1, 2015, each non-employee director of the Company received an award of 2,500 shares of restricted common stock (total of 10,000 shares) which vest ratably over a three -year period. On June 15, 2015, in connection with the appointment of the Company’s President and Chief Operating Officer (an employee of the Manager), 100,000 shares of restricted common stock were granted, which shares vest ratably over a five -year period. During the year ended December 31, 2015, the Company granted 52,500 shares of restricted common stock to an executive officer (an employee of the Manager) and key employees of the Manager, which shares vest ratably over a three -year period. The Manager provides services to the Company. On May 20, 2016, each non-employee director of the Company received an award of 3,585 shares of common stock (total of 14,340 shares) which immediately vested on the grant date. On May 3, 2017, the Company’s stockholders approved, and the Company adopted, the Amended and Restated 2015 Stock Incentive Plan increasing the number of shares of common stock reserved for issuance under the Plan by 170,000 shares from 200,000 shares to 370,000 shares and extending the term of the Plan until May 2, 2027. On May 3, 2017, three non-employee directors of the Company were each granted an award of 2,138 shares of common stock (total of 6,414 shares), which immediately vested on the grant date. In addition, certain of the Company’s officers and certain employees of the Manager were granted a cumulative total of 105,000 shares of restricted common stock, which vest ratably over a three -year period. Restricted Stock Awards The Amended and Restated 2015 Equity Incentive Plan permits the issuance of restricted shares of the Company’s common stock to employees of the Manager (as the Company has no employees) and the Company’s non-employee directors. As of December 31, 2017 and 2016 , 288,254 and 176,840 shares of restricted stock, respectively, had been granted, of which 55,172 vested in 2016 , 46,413 vested during the year ended December 31, 2017 , 75,003 will vest in 2018, 55,001 will vest in 2019 and 54,998 will vest in 2020. Additionally, 1,667 were forfeited during the year ended December 31, 2016. Non-vested shares are earned over the respective vesting period based on a service condition only. Expenses related to restricted stock awards are charged to compensation expense and are recognized over the respective vesting period (primarily three to five years) of the awards. For restricted stock issued to non-employee directors of the Company, compensation expense is based on the market value of the shares at the grant date. For restricted stock awards issued to employees of the Manager, compensation expense is re-measured at each reporting date until service is complete and the restricted shares become vested based on the then current value of the Company’s common stock. The Company recognized approximately $1.3 million , $1.1 million and $0.3 million of stock-based compensation expense for the years ended December 31, 2017 , 2016 and 201 5 , respectively. As of December 31, 2017 , 2016 and 201 5 , the total unrecognized compensation cost related to the Company’s restricted shares was approximately $2.7 million , $2.0 million and $2.2 million, respectively, based on the grant date market value for awards issued to non-employee directors of the Company and based on the measurement of awards using the Company’s stock price of $19.01 , $21.05 and $14.95 as of December 31, 2017 , 2016 and 201 5 , respectively, for awards issued to employees of the Manager. This cost is expected to be recognized over the remaining weighted average period of 2.3 years. The Company presents stock-based compensation expense in general and administrative expenses in the Consolidated Statements of Operations. A summary of changes in the Company’s restricted shares for the years ended December 31, 2017 and 2016 is as follows: Year ended December 31, 2017 2016 Weighted Weighted average grant average grant Shares date fair value Shares date fair value Nonvested at beginning of period, 120,001 $ 20.10 162,500 $ 20.08 Granted 111,414 22.59 14,340 13.95 Vested (46,413) 20.28 (55,172) 18.27 Forfeited - - (1,667) 20.00 Nonvested at end of period, 185,002 $ 21.58 120,001 $ 20.10 Nonvested restricted shares receive dividends which are nonforfeitable. Series A Preferred Stock Private Placement On July 27, 2016 (the “Effective Date”), the Company entered into a Stock Purchase Agreement (the “Purchase Agreement”) with accounts managed by NexPoint Advisors, L.P., an affiliate of Highland Capital Management, L.P. (collectively, the “Buyers”) relating to the issuance and sale, from time to time until the second anniversary of the Effective Date (such period, the “Commitment Period”), of up to $100 million in shares of the Company’s Series A Preferred Stock, par value $0.01 per share (the “Series A Preferred Stock”), at a price of $1,000 per share (the “Liquidation Value”) (subject to a minimum amount of $50 million of Series A Preferred Stock to be issued and sold by the Company on or prior to the expiration of the Commitment Period), which may be increased at the request of the Company up to $125 million. The sale of shares of Series A Preferred Stock pursuant to the Purchase Agreement may occur from time to time, in minimum monthly increments of $5 million, maximum monthly increments of $15 million and maximum increments of $35 million over any rolling three month period, all to be completed during the Commitment Period. The Series A Preferred Stock ranks senior to the shares of the Company’s common stock with respect to distribution rights and rights upon liquidation, winding up and dissolution of the Company, on parity with any class or series of capital stock of the Company expressly designated as ranking on parity with the Series A Preferred Stock with respect to distribution rights and rights upon liquidation, winding up and dissolution of the Company, junior to any class or series of capital stock of the Company expressly designated as ranking senior to the Series A Preferred Stock with respect to distribution rights and rights upon liquidation, winding up and dissolution of the Company and junior in right of payment to the Company’s existing and future indebtedness. Holders of Series A Preferred Stock are entitled to a cumulative cash distribution (“Cash Distribution”) equal to (A) 7.0% per annum on the Liquidation Value for the period beginning on the respective date of issuance until the sixth anniversary of the Effective Date, payable quarterly in arrears, (B) 8.5% per annum on the Liquidation Value for the period beginning the day after the sixth anniversary of the Effective Date and for each year thereafter as long as the Series A Preferred Stock remains issued and outstanding, payable quarterly in arrears, and (C) an amount in addition to the amounts in (A) and (B) equal to 5.0% per annum on the Liquidation Value upon the occurrence of certain triggering events (a “Cash Premium”). In addition, the holders of the Series A Preferred Stock will be entitled to a cumulative dividend payable in-kind in shares of the Company’s common s tock or additional shares of Series A Preferred Stock, at the election of the holders (the “Stock Dividend”) . For the fiscal year 2017, the Stock Dividend was equal in the aggregate to the lesser of (Y) 25% of the incremental increase in the Company’s book value (as adjusted for equity capital issuances, share repurchases and certain non-cash expenses) plus, to the extent the Company owns equity interests in income-producing real property, the incremental increase in net asset value (provided, however, that no interest in the same real estate asset will be double counted) and (Z) an amount that would, together with the Cash Distribution, result in a 14.0% internal rate of return for the holders of the Series A Preferred Stock from the date of issuance of the Series A Preferred Stock, as set forth in the Series A Articles Supplementary , as amended . Triggering events that will trigger the payment of a Cash Premium with respect to a Cash Distribution include: (i) the occurrence of certain change of control events affecting the Company after the third anniversary of the Effective Date, (ii) the Company’s ceasing to be subject to the reporting requirements of Section 13 or Section 15(d) of the Exchange Act, (iii) the Company’s failure to remain qualified as a real estate investment trust, (iv) an event of default under the Purchase Agreement, (v) the failure by the Company to register for resale shares of the Company’s c ommon s tock pursuant to the Registration Rights Agreement (a “Registration Default”), (vi) the Company’s failure to redeem the Series A Preferred Stock as required by the Purchase Agreement, or (vii) the filing of a complaint, a settlement with, or a judgment entered by the Securities and Exchange Commission (“SEC”) against the Company or any of its subsidiaries or a director or executive officer of the Company relating to the violation of the securities laws, rules or regulations with respect to the business of the Company. On January 25, 2018, the Company filed, with the State Department of Assessments and Taxation of the State of Maryland (“MSDAT”), Amendment No. 1 (the “Series A Articles Supplementary Amendment”) to the Articles Supplementary (the “Series A Articles Supplementary”) to the Articles of Amendment and Restatement of the Company (the “Charter”), designating the terms of the Series A Preferred Stock. The Series A Articles Supplementary Amendment provides for certain amendments to the calculation of the cumulative dividend in the Series A Articles Supplementary, including, among other things, with respect to the computation and payment of the Aggregate Stock Dividend (as defined in the Series A Articles Supplementary) for the fiscal quarters beginning with the fiscal quarter ending March 31, 2018 through and including the fiscal quarter ending June 30, 2021. For the first three fiscal quarters of the fiscal years 2018 , 2019 and 2020 and for the first fiscal quarter of 2021 , the Company will declare and pay an Aggregate Stock Dividend equal to $2,125,000 (the “Target Stock Dividend”). For the last fiscal quarter of each of 2018 , 2019 and 2020 and for the second fiscal quarter of 2021 , the Company will compute the cumulative Aggregate Stock Dividend for all periods after December 31, 2017 through the end of such fiscal quarter equal to 25% of the incremental increase in the Company’s book value (as adjusted for equity capital issuances, share repurchases and certain non-cash expenses) plus, to the extent that we own equity interests in income-producing real property, the incremental increase in net asset value (provided, however, that no interest in the same real estate asset will be double counted) (the “Computed Stock Dividend”), and will declare and pay for such quarter an Aggregate Stock Dividend equal to the greater of the Target Stock Dividend or the Computed Stock Dividend minus the sum of all Aggregate Stock Dividends declared and paid for all fiscal quarters after December 31, 2017 and before the fiscal quarter for which such payment is computed, in each case subject to an amount that would, together with the Cash Distribution (as defined in the Series A Articles Supplementary), result in a 14.0% internal rate of return for the holders of Series A Preferred Stock from the date of issuance of the Series A Preferred Stock. Accrued but unpaid Cash Distributions and Stock Dividends on the Series A Preferred Stock will accumulate and will earn additional Cash Distributions and Stock Dividends as calculated above, compounded quarterly. The holders of Series A Preferred Stock have the right to purchase their pro rata share of any qualified offering of the Company’s c ommon s tock, which consists of any offering by the Company of the Company’s c ommon s tock except any shares of the Company’s c ommon s tock issued (i) in connection with a merger, consolidation, acquisition or similar business combination, (ii) in connection with a joint venture, strategic alliance or similar corporate partnering arrangement, (iii) in connection with any acquisition of assets by the Company, (iv) at market prices pursuant to a registered at-the-market program and/or (v) as part of a compensatory or employment arrangement. As long as shares of Series A Preferred Stock remain outstanding, the Company is required to maintain a ratio of debt to total tangible assets determined under U.S. generally accepted accounting principles of no more than 0.4 :1, measured as of the last day of each fiscal quarter. The Company has complied with this covenant as of and for the year ended December 31, 2017 . The Series A Preferred Stock may be redeemed at the Company’s option (i) after five years from the Effective Date at a price equal to 105% of the Liquidation Value per share plus the value of all accumulated and unpaid Cash Distributions and Stock Dividends, and (ii) after six years from the Effective Date at a price equal to 100% of the Liquidation Value per share plus the value of all accumulated and unpaid Cash Distributions and Stock Dividends. In the event of certain change of control events affecting the Company prior to the third anniversary of the Effective Date, the Company must redeem all shares of Series A Preferred Stock for a price equal to (a) the Liquidation Value, plus (b) accumulated and unpaid Cash Distributions and Stock Dividends, plus (c) a make-whole premium designed to provide the holders of the Series A Preferred Stock with a return on the redeemed shares equal to a 14.0% internal rate of return through the third anniversary of the Effective Date. Holders of Series A Preferred Stock will be entitled to a separate class vote with respect to (i) any amendments to the Company’s Amended and Restated Articles of Incorporation (the “Charter”), as supplemented by the Articles Supplementary, or bylaws that would alter or change the rights, preferences, privileges or restrictions of the Series A Preferred Stock so as to materially and adversely affect such Series A Preferred Stock and (ii) reclassification or otherwise, any issuances by the Company of securities that are senior to, or equal in priority with, the Series A Preferred Stock. In the event of any liquidation, dissolution or winding up of the Company, the holders of the Series A Preferred Stock shall be entitled to receive an amount equal to the greater of (i) the Liquidation Value, plus all accumulated but unpaid Cash Distributions and Stock Dividends thereon to, but not including, the date of any liquidation, but excluding any Cash Premium and (ii) the amount that would be paid on such date in the event of a redemption following a change of control. Pursuant to the Purchase Agreement and the Articles Supplementary, the Company increased the size of its Board by one director and elected James Dondero, as representative of the Buyers, to the Board for a term expiring at the Company’s 2017 annual meeting of stockholders (Mr. Dondero has subsequently been reelected to the Board for a term expiring at the Company’s 2018 annual meeting of stockholders). Thereafter, so long as any shares of the Series A Preferred Stock are outstanding, the holders of the Series A Preferred Stock, voting as a single class, are entitled to nominate and elect one individual to serve on the Board. If the Company has not paid the full amount of the Cash Distribution or the Stock Dividend on the shares of the Series A Preferred Stock for six or more quarterly dividend periods (whether or not consecutive), the Company will increase the size of the Board by two directors and the holders of Series A Preferred Stock are entitled to elect two additional directors to serve on the Board until the Company pays in full all accumulated and unpaid Cash Distributions and Stock Dividends. Further, at any time that the Series A Preferred Stock remains outstanding, if Dean Jernigan, the Company’s current Chief Executive Officer and Chairman of the Board, voluntarily leaves the position of Chief Executive Officer, and is not serving as the Executive Chairman of the Board (a “Key Man Event”), the holders of the Series A Preferred Stock shall have the right to accept or reject the service of any person as Chief Executive Officer (or such person serving as the principal executive officer) of the Company. The Purchase Agreement requires that the Company and its subsidiaries conduct their business in the ordinary course of business consistent with past practice and use reasonable best efforts to (i) preserve substantially intact the business organization and (ii) avoid becoming subject to the requirements of the Investment Company Act of 1940, as amended (the “1940 Act”). Additionally, the Company and its subsidiaries may not change or alter materially its method of accounting or the manner in which it keeps its accounting books and records unless required by the SEC to reflect changes in U.S. generally accepted accounting principles or, in the business judgment of the Board, such change would be in the best interests of the Company or stockholders. Future issuances of shares of Series A Preferred Stock at any one or more closings after the Effective Date are contingent upon the satisfaction of certain conditions at the time of such proposed purchase, including that (i) the representations and warranties of the Purchase Agreement remain true and correct in all material respects and the Company has complied with all covenants and conditions under the Purchase Agreement, the Articles Supplementary, the Registration Rights Agreement and the documents related thereto, (ii) no material adverse effect (as such term is defined in the Purchase Agreement) has occurred, (iii) there is no suspension of trading of the Company’s c ommon s tock on the NYSE or such other market or exchange on which the c ommon s tock is then listed or traded (the “Principal Market”), (iv) a Key Man Event shall not have occurred, as described above, and (v) the Company has delivered certain customary closing deliverables. An event of default under the Purchase Agreement terminates the obligation of the Buyers to acquire shares of Series A Preferred Stock from the Company and also triggers the Cash Premium described above. Such events of default under the Purchase Agreement include (i) a Registration Default, (ii) the suspension of trading or delisting of the Company’s c ommon s tock on the Principal Market, (iii) the failure by the transfer agent of the Company to issue shares of the Series A Preferred Stock to the Buyers (subject to an applicable cure period), (iv) the Company’s breach of a representation or warranty, covenant or other term or condition under the Purchase Agreement, Articles Supplementary, the Registration Rights Agreement or the documents related thereto that has a material adverse effect (subject to an applicable cure period), (v) the failure of the Company to sell $50 million of shares of Series A Preferred Stock on or prior to the tenth business day after the expiration of the Commitment Period, (vi) an event of default under any secured indebtedness of the Company, or (vii) certain bankruptcy proceedings. The holders of the Series A Preferred Stock will have certain customary registration rights with respect to the c ommon s tock issued as Stock Dividends pursuant to the terms of a Registration Rights Agreement. The issuance and sale of the Series A Preferred Stock, and the issuance of shares of the Company’s common stock and/or additional shares of Series A Preferred Stock issuable as Stock Dividends, will be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”) pursuant to Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D thereunder. The Buyers represented to the Company that they are “accredited investors” as defined in Rule 501 of the Securities Act and that the Series A Preferred Stock is being acquired for investment purposes and not with a view to, or for sale in connection with, any distribution thereof, and appropriate legends will be affixed to any certificates evidencing the shares of Series A Preferred Stock or c ommon s tock issuable pursuant to the Purchase Agreement. As of December 31, 2017, the Company had issued 40,000 restricted shares of the Series A Preferred Stock to the Buyers and received $40.0 million in proceeds pursuant to the terms of the Purchase Agreement. On March 7, 2017 , the Company declared a (i) cash distribution of $17.50 per share of Series A Preferred Stock, payable on April 14, 2017 , to holders of Series A Preferred Stock of record on the close of business on April 1, 2017 , and (ii) distributions payable in kind in a number of shares of common stock as determined in accordance with the terms of the designation of the Series A Preferred Stock, payable on April 15, 2017 , to holders of Series A Preferred Stock of record on the close of business on April 1, 2017 . On May 3, 2017 , the Company declared a cash distribution of $17.69 per share of Series A Preferred Stock, payable on July 14, 2017 , to holders of Series A Preferred Stock of record on the close of business on July 1, 2017 . No distributions in kind were payable in connection with the July distribution. On August 1, 2017 , the Company declared a cash distribution of $17.89 per share of Series A Preferred Stock, payable on October 13, 2017 , to holders of Series A Preferred Stock of record on the close of business on October 1, 2017 , and (ii) distributions payable in kind in a number of shares of common stock as determined in accordance with the terms of the designation of the Series A Preferred Stock, payable on October 13, 2017 , to holders of Series A Preferred Stock of record on the close of business on October 1, 2017 . On November 1, 2017 , the Company declared a cash distribution of $9.48 per share of Series A Preferred Stock, payable on January 12, 2018 , to holders of Series A Preferred Stock of record on the close of business on January 1 , 2018 , and (ii) distributions payable in kind in a number of shares of common stock as determined in accordance with the terms of the designation of the Series A Preferred Stock, payable on January 12, 2018 , to holders of Series A Preferred Stock of record on the close of business on January 1 , 2018 . |
DIVIDENDS AND DISTRIBUTIONS
DIVIDENDS AND DISTRIBUTIONS | 12 Months Ended |
Dec. 31, 2017 | |
DIVIDENDS AND DISTRIBUTIONS [Abstract] | |
DIVIDENDS AND DISTRIBUTIONS | 1 0 . DIVIDENDS AND DISTRIBUTIONS The following table summarizes the Company’s dividends declared on its common stock during the year ended December 31, 2017 : Date declared Record date Payment date Per share amount Total amount March 7, 2017 April 3, 2017 April 14, 2017 $ 0.35 $ 3,149 May 3, 2017 July 3, 2017 July 14, 2017 $ 0.35 $ 4,983 August 1, 2017 October 2, 2017 October 13, 2017 $ 0.35 $ 4,983 November 1, 2017 January 2, 2018 January 12, 2018 $ 0.35 $ 5,051 The following table summarized the Company’s dividends declared on its Series A Preferred Stock during the year ended December 31, 2017 : Date declared Record date Payment date Per share amount Total amount Cash dividend: March 7, 2017 April 1, 2017 April 14, 2017 $ 17.50 $ 175 May 3, 2017 July 1, 2017 July 14, 2017 17.69 177 August 1, 2017 October 1, 2017 October 13, 2017 17.89 179 November 1, 2017 January 1, 2018 January 12, 2018 9.48 379 Stock dividend: March 7, 2017 April 1, 2017 April 15, 2017 (1) $ 37.10 $ 371 May 3, 2017 July 1, 2017 - - - August 1, 2017 October 1, 2017 October 13, 2017 (2) 13.15 131 November 1, 2017 January 1, 2018 January 12, 2018 (3) 1.11 44 (1) 16,497 shares of common stock were issued at the election of the Holders (2 ) 6,703 shares of common stock were issued at the election of the Holders (3 ) 2,222 shares of common stock were issued at the election of the Holders The following table summarizes the Company’s dividends declared on its common stock during the year ended December 31, 2016 : Date declared Record date Payment date Per share amount Total amount March 10, 2016 April 1, 2016 April 15, 2016 $ 0.35 $ 2,157 May 20, 2016 July 1, 2016 July 15, 2016 $ 0.35 $ 2,087 September 2, 2016 October 1, 2016 October 14, 2016 $ 0.35 $ 2,087 November 2, 2016 January 3, 2017 January 13, 2017 $ 0.35 $ 3,134 The following table summarized the Company’s dividends declared on its Series A Preferred Stock during the year ended December 31, 2016: Date declared Record date Payment date Per share amount Total amount Cash dividend: December 29, 2016 January 1, 2017 January 13, 2017 $ 17.31 $ 173 Stock dividend: December 29, 2016 January 1, 2017 February 15, 2017 (1) $ 82.25 $ 823 (1) 41,353 shares of common stock were issued at the election of the Holders |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | 1 1 . EARNINGS PER SHARE Basic earnings per share is computed by dividing net income by the weighted average number of shares outstanding during the period. All outstanding unvested restricted share awards contain rights to non-forfeitable dividends and participate in undistributed earnings with common shareholders and, accordingly, are considered participating securities that are included in the two-class method of computing basic earnings per share. Both the unvested restricted shares and the assumed share-settlement of the stock dividend to holders of the Series A Preferred Stock, and the related impacts to earnings, are considered when calculating earnings per share on a diluted basis with the Company’s diluted earnings per share being the more dilutive of the treasury stock or two-class methods. For the years ended December 31, 2017, 2016 and 2015 , the Company’s basic earnings per share is computed using the two-class method, and the Company’s diluted earnings per share is computed using the more dilutive of the treasury stock method or two-class method: Year ended December 31, Shares outstanding 2017 2016 2015 Weighted average common shares - basic 11,735,455 6,060,100 4,504,356 Effect of dilutive securities 173,057 152,548 - Weighted average common shares, all classes 11,908,512 6,212,648 4,504,356 Calculation of Earnings per Share - basic Net income (loss) $ 14,559 $ 16,017 $ (2,943) Less: Net income allocated to preferred stockholders 1,456 996 - Net income allocated to unvested restricted shares (1) 188 345 - Dividends declared on unvested restricted shares - - 152 Net income (loss) attributable to common shareholders – two-class method $ 12,915 $ 14,676 $ (3,095) Weighted average common shares - basic 11,735,455 6,060,100 4,504,356 Earnings per share - basic $ 1.10 $ 2.42 $ (0.69) Calculation of Earnings per Share - diluted Net income (loss) $ 14,559 $ 16,017 $ (2,943) Less: Net income (loss) allocated to preferred stockholders 1,456 996 - Dividends declared on unvested restricted shares - - 152 Net income (loss) attributable to common shareholders – two-class method $ 13,103 $ 15,021 $ (3,095) Weighted average common shares - diluted 11,908,512 6,212,648 4,504,356 Earnings per share - diluted $ 1.10 $ 2.42 $ (0.69) (1) Unvested restricted shares of common stock participate in dividends with unrestricted shares of common stock on a 1:1 basis and thus are considered participating securities under the two-class method for the years ended December 31, 2017, 2016 and 2015. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | 1 2 . RELATED PARTY TRANSACTIONS Equity Method Investments Certain of the Company’s development property investments are equity method investments for which the Company has elected the fair value option of accounting. The fair value of these equity method investments at December 31, 2017 and 201 6 were $215.9 million and $78.7 mill ion , respectively. The interest income realized and the change in fair value from these equity method investments was $18.0 million, $21.4 million and $2.0 million for the years ended December 31, 2017 , 2016 and 201 5 , respectively. The Company’s investment in the real estate venture, the SL1 Venture, has a carrying amount of $13.9 million and $5.4 million at December 31, 2017 and 2016 , respectively, and the earnings from this venture were $2.3 million and $1.3 million for the years ended December 31, 2017 and 2016 , respectively. There were no earnings for the year ended December 31, 2015 as the SL1 Venture did not commence until March 2016. Management Agreement On April 1, 2015, the Company entered into a Management Agreement with its Manager (the “Management Agreement”). Pursuant to the terms of the Management Agreement, the Manager will be responsible for (a) the Company’s day-to-day operations, (b) determining investment criteria and strategy in conjunction with the Company’s Board of Directors , (c) sourcing, analyzing, originating, underwriting, structuring, and acquiring the Company’s portfolio investments, and (d) performing portfolio management duties. The Manager has an Investment Committee that approves investments in accordance with the Company’s investment guidelines, investment strategy, and financing strategy. On May 23, 2016, the Company entered into an Amended and Restated Management Agreement (the “Amended and Restated Management Agreement”) by and among the Company, the Operating Company and the Manager that amends and restates the original Management Agreement dated April 1, 2015. The Amended and Restated Management Agreement was approved on behalf of the Company and the Operating Company by a unanimous vote of the Nominating and Corporate Governance Committee of the Company’s Board of Directors , which consists solely of independent directors. The Amended and Restated Management Agreement modified certain procedures with respect to the future internalization of the Manager (as described in the Amended and Restated Management Agreement, an “Internalization Transaction”). Prior to entry into the Amended and Restated Management Agreement, if no Internalization Transaction had occurred prior to the end of the last renewal term, the Manager would have been entitled to the Termination Fee (as defined in the Amended and Restated Management Agreement) and the Company would not have acquired the assets of the Manager. The Amended and Restated Management Agreement, however, requires an Internalization Transaction at the end of the last renewal term (if an Internalization Transaction or termination of the Amended and Restated Management Agreement has not occurred prior to that date). The Internalization Price in such event would equal the Termination Fee amount and the Company would receive the Manager’s assets. Accordingly, the amount the Manager would receive has not changed, but the Company now would receive the assets of the Manager, which it would not have received prior to the Amended and Restated Management Agreement. Under the Amended and Restated Management Agreement, if an Internalization Transaction has not occurred prior to March 31, 2023, the last day of the last renewal term, then the Manager and the Company shall consummate an Internalization Transaction to be effective as of that date and all assets of the Manager (or, alternatively, all of the equity interests in the Manager) shall be conveyed to and acquired by the Operating Company in exchange for the Internalization Price (as described herein). At such time, all employees of the Manager shall become employees of the Operating Company and the Manager shall discontinue all business activities. Unlike an Internalization Transaction that occurs prior to the end of the final renewal term of the Amended and Restated Management Agreement, an Internalization Transaction that occurs at the end of the final renewal term shall not require a fairness opinion, the approval of a special committee of the Company’s Board of Directors or the approval of the Company’s stockholders. The “Internalization Price” payable in the event of an Internalization Transaction at the end of the last renewal term shall be equal to the Termination Fee and the Board of Directors of the Company has no discretion to change such Internalization Price or the conditions applicable to its payment. The Internalization Price paid to the Manager in any Internalization Transaction will be payable by the Operating Company in the number of units of limited liability company interests (“OC Units”) of the Operating Company equal to the Internalization Price, divided by the volume-weighted average of the closing market price of the common stock of the Company for the ten consecutive trading days immediately preceding the date with respect to which value must be determined. However, if the common stock of the Company is not traded on a national securities exchange at the time of closing of any Internalization Transaction, then the number of OC Units shall be determined by agreement between the Board of Directors of the Company and the Manager or, in the absence of such agreement, the Internalization Price shall be paid in cash. Prior to entry into the Amended and Restated Management Agreement, any Termination Fee would have been payable by the Operating Company in OC Units equal to the Termination Fee divided by the average of the daily market price of the Company’s common s tock for the ten consecutive trading days immediately preceding the date of termination within 90 days after occurrence of the event requiring the payment of the Termination Fee. In accordance with ASC 505-50, Equity - Equity-based Payments to Non-Employees, since the number of OC Units to be issued was dependent upon different possible outcomes, the Company recognized the lowest aggregate amount within the range of outcomes. Accordingly, the Company estimated the deferred termination fee payable and accrued the expense over the term of the Management Agreement. Upon entry into the Amended and Restated Management Agreement, the Company ceased recognizing the deferred termination fee expense and reclassified the Non-Controlling Interests to Additional Paid-In-Capital since the Termination Fee is no longer certain of being paid other than in exchange for either the assets or equity of the Manager. Accordingly, the Company recorded no expense , $ 0.2 million and $0. 5 million of expense for the deferred termination fee for the years ended December 31, 2017 , 2016 and 201 5 , respectively. On April 1, 2017, the Company, the Operating Company and the Manager entered into a Second Amended and Restated Management Agreement to modify the manner in which certain expenses incurred by the Manager are accounted for and paid by the Company. Under the Amended and Restated Management Agreement, the Manager may engage independent contractors that provide investment banking, securities brokerage, mortgage brokerage and other financial, legal and account services as may be required for the Company’s investments, and the Company agrees to reimburse the Manager for costs and expenses incurred in connection with these services. The Second Amended and Restated Management Agreement now provides that expenses incurred by the Manager are reimbursable to the Manager by the Company only to the extent such expenses are not otherwise directly reimbursed by an unaffiliated third party. The amount of expenses to be reimbursed to the Manager by the Company will be reduced dollar-for-dollar by the amount of any such payment or reimbursement. On November 1, 2017, the Company, the Operating Company and the Manager entered into the Third Amended and Restated Management Agreement in order to clarify the original intent of the parties with respect to the definition of Core Earnings and to make other minor changes necessary to reflect the current and anticipated business model from and after this time. The Third Amended and Restated Management Agreement is otherwise substantially consistent with the Second Amended and Restated Management Agreement. Under the Third Amended and Restated Management Agreement, “Core Earnings” is defined as (1) net income (loss) determined under GAAP, plus (2) non-cash equity compensation expense, the incentive fee, depreciation and amortization, plus (3) any unrealized losses or other non-cash expense items reflected in GAAP net income (loss), less (4) any unrealized gains reflected in GAAP net income (including any unrealized appreciation with respect to self-storage facilities that we have not yet acquired). The Third Amended and Restated Management Agreement clarifies that in addition to certain previously agreed upon adjustments, with respect to any self-storage facility acquired by the Company with respect to which we had an outstanding loan as of the time of such acquisition, the amount of Core Earnings determined pursuant to the formula above in the period of such acquisition shall also be increased by the difference between (A) the appraised value, as determined by a nationally recognized, independent third-party appraiser mutually agreed to by the Company and the Manager who has significant expertise in valuing self-storage properties, and (B) (i) the outstanding principal amount of any Company loan secured by such acquired self-storage facility at the time of such acquisition plus (ii) any other consideration given to the former owner upon such acquisition. This addition is intended to include in Core Earnings the amount of the Company’s unrealized gain on account of the Company’s acquisition of a self-storage facility without such facility being sold to a third party buyer in the open market. The initial term of the Management Agreement will expire on March 31, 2020, with up to a maximum of three, one-year extensions that end on March 31, 2023. The Company’s independent directors review the Manager’s performance annually. Following the initial term, the Management Agreement may be terminated annually upon the affirmative vote of at least two-thirds of the Company’s independent directors based upon: (a) the Manager’s unsatisfactory performance that is materially detrimental to the Company; or (b) the Company’s determination that the management fees payable to the Manager are not fair, subject to the Manager’s right to prevent termination based on unfair fees by accepting a reduction of management fees agreed to by at least two-thirds of the independent directors. The Company is required to provide its Manager with 180 days’ prior notice of such a termination. Upon such a termination, the Company will pay the Manager a Termination Fee except as provided below. No later than 180 days prior to the end of the initial term of the Management Agreement, the Manager will offer to contribute to the Company’s Operating Company at the end of the initial term all of the assets or equity interests in the Manager at the internalization price and on such terms and conditions included in a written offer provided by the Manager. Upon receipt of the Manager’s initial internalization offer, a special committee consisting solely of the Company’s independent directors may accept the Manager’s proposal or submit a counter offer to the Manager. If the Manager and the special committee are unable to agree, the Manager and the special committee will repeat this process annually during the term of any extension of the Management Agreement. Acquisition of the Manager pursuant to this process requires a fairness opinion from a nationally recognized investment banking firm and stockholder approval, in addition to approval by the special committee. As described above, if an Internalization Transaction has not occurred prior to March 31, 2023, the last day of the last renewal term, then the Manager and the Company shall consummate an Internalization Transaction to be effective as of that date, and such Internalization Transaction shall not require a fairness opinion, the approval of a special committee of the Company’s Board of Directors or the approval of the Company’s stockholders. If the Management Agreement terminates other than for Cause (as defined below), voluntary non-renewal by the Manager or the Company being required to register as an investment company under the 1940 Act, then the Company shall pay to the Manager, on the date on which such termination is effective, a Termination Fee equal to the greater of (i) three times the sum of the average annual Base Management Fee and Incentive Fee earned by the Manager during the 24-month period prior to such termination, calculated as of the end of the most recently completed fiscal quarter prior to the date of termination, or (ii) the offer price, which will be based on the lesser of (a) the Manager’s earnings before interest, taxes, depreciation and amortization (adjusted for unusual, extraordinary and non-recurring charges and expenses), or “EBITDA” annualized based on the most recent quarter ended, multiplied by a specific multiple, or EBITDA Multiple, depending on the Company’s achieved total annual return, and (b) the Company’s equity market capitalization multiplied by a specific percentage, or Capitalization Percentage, depending on the Company’s achieved total return (the Internalization Price). Any Termination Fee will be payable by the Operating Company in cash. The Company also may terminate the Management Agreement at any time, including during the initial term, without the payment of any Termination Fee, with 30 days’ prior written notice from the Board of Directors , for cause. “Cause” is defined as: (i) the Manager’s continued breach of any material provision of the Management Agreement following a prescribed period; (ii) the occurrence of certain events with respect to the bankruptcy or insolvency of the Manager; (iii) a change of control of the Manager that a majority of the Company’s independent directors determines is materially detrimental to the Company; (iv) the Manager committing fraud against the Company, misappropriating or embezzling the Company’s funds, or acting grossly negligent in the performance of its duties under the Management Agreement; (v) the dissolution of the Manager; (vi) the Manager fails to provide adequate or appropriate personnel that are reasonably necessary for the Manager to identify investment opportunities for the Company and to manage and develop the Company’s investment portfolio if such default continues uncured for a period of 60 days after written notice thereof, which notice must contain a request that the same be remedied; (vii) the Manager is convicted (including a plea of nolo contendere) of a felony; or (viii) both the current Chief Executive Officer and the current President and Chief Operating Officer are no longer senior executive officers of the Manager or the Company during the term of the Management Agreement other than by reason of death or disability. The Manager may terminate the Management Agreement if the Company becomes required to register as an investment company under the 1940 Act, with such termination deemed to occur immediately before such event, in which case the Company would not be required to pay the Manager a Termination Fee. The Manager may also decline to renew the Management Agreement by providing the Company with 180 days’ written notice, in which case the Company would not be required to pay a Termination Fee. The Management Agreement provides for the Manager to earn a base management fee and an incentive fee, both of which are described further below. In addition, the Company will reimburse certain expenses of the Manager, excluding the salaries and cash bonuses of the Manager’s chief executive officer and chief financial officer, a portion of the salary of the president and chief operating officer, and certain other costs as determined by the Manager in accordance with the Management Agreement. Certain prepaid expenses and fixed assets are also purchased through the Manager and reimbursed by the Company. In the event that the Company terminates the Management Agreement pursuant to its terms, other than for Cause or the Company being required to register as an investment company under the 1940 Act, there will be a Termination Fee due to the Manager. Amounts reimbursable to the Manager for expenses are included in general and administrative expenses in the Consolidated Statements of Operations and totaled $3.0 million , $3.3 million and $2.1 million for the years ended December 31, 2017 , 2016 and 201 5 , respectively. Management Fees As of December 31, 2017 , the Company did not have any personnel. As a result, the Company is relying on the properties, resources and personnel of the Manager to conduct operations. The Company has agreed to pay the Manager a base management fee in an amount equal to 0.375% of the Company’s stockholders’ equity (a 1.5% annual rate) calculated and payable quarterly in arrears in cash. For purposes of calculating the base management fee, the Company’s stockholder’s equity means: (a) the sum of (i) the net proceeds from all issuances of the Company’s equity securities since inception (allocated on a pro rata daily basis for such issuances during the fiscal quarter of any such issuance), plus (ii) the Company’s retained earnings at the end of the most recently completed fiscal quarter (without taking into account any non-cash equity compensation expense incurred in current or prior periods); less (b) any amount that the Company pays to repurchase the Company’s common stock since inception, provided that if the Company’s retained earnings are in a net deficit position (following any required adjustments set forth below), then retained earnings shall not be included in stockholders’ equity. It also excludes (x) any unrealized gains and losses and other non-cash items that have impacted stockholders’ equity as reported in the Company’s financial statements prepared in accordance with accounting principles generally accepted in the United States, or GAAP, and (y) one-time events pursuant to changes in GAAP (such as a cumulative change to the Company’s operating results as a result of a codification change pursuant to GAAP), and certain non-cash items not otherwise described above (such as depreciation and amortization), in each case after discussions between the Company’s Manager and the Company’s independent directors and approval by a majority of the Company’s independent directors. As a result, the Company’s stockholders’ equity, for purposes of calculating the base management fee, could be greater or less than the amount of stockholders’ equity shown on the Company’s financial statements. The base management fee is payable independent of the performance of the Company’s portfolio. The Manager computes the base management fee within 30 days after the end of the fiscal quarter with respect to which such installment is payable and promptly delivers such calculation to the Company’s Board of Directors . The amount of the installment shown in the calculation is due and payable no later than the date which is five business days after the date of delivery of such computation to the Board of Directors . The base management fee was $3.5 million , $1.7 million and $1.2 million for the years ended December 31, 2017 , 2016 and 201 5 , respectively. At December 31, 2017 and 2016 , the Company had outstanding fees due to Manager of $1.5 million and $1.0 million, respectively, consisting of the management fees payable and certain general and administrative fees payable . Incentive Fee The Manager is entitled to an incentive fee with respect to each fiscal quarter (or part thereof that the Amended and Restated Management Agreement is in effect) in arrears in cash. The incentive fee will be an amount, not less than zero, determined pursuant to the following formula: IF = .20 times (A minus (B times .08)) minus C In the foregoing formula: A equals the Company’s Core Earnings (as defined below) for the previous 12-month period; B equals (i) the weighted average of the issue price per share of the Company’s common stock of all of its public offerings of common stock, multiplied by (ii) the weighted average number of all shares of common stock outstanding (including (i) any restricted stock units and any restricted shares of common stock in the previous 12-month period and (ii) shares of common stock issuable upon conversion of outstanding OC Units); and C equals the sum of any incentive fees earned by the Manager with respect to the first three fiscal quarters of such previous 12-month period. Notwithstanding application of the incentive fee formula, no incentive fee shall be paid with respect to any fiscal quarter unless cumulative annual stockholder total return for the four most recently completed fiscal quarters is greater than 8%. Any computed incentive fee earned but not paid because of the foregoing hurdle will accrue until such 8% cumulative annual stockholder total return is achieved. The total return is calculated by adding stock price appreciation (based on the volume-weighted average of the closing price of the Company’s common stock on the NYSE (or other applicable trading market) for the last ten consecutive trading days of the applicable computation period minus the volume-weighted average of the closing market price of the Company’s common stock for the last ten consecutive trading days of the period immediately preceding the applicable computation period) plus dividends per share paid during such computation period, divided by the volume-weighted average of the closing market price of the Company’s common stock for the last ten consecutive trading days of the period immediately preceding the applicable computation period. For purposes of computing the Incentive Fee, “Core Earnings” is defined as net income (loss) determined under GAAP, plus non-cash equity compensation expense, the incentive fee, depreciation and amortization (to the extent that the Company forecloses on any facilities underlying the Company’s target investments), any unrealized losses or other non-cash expense items reflected in GAAP net income (loss), less any unrealized gains reflected in GAAP net income. The amount will be adjusted to exclude one-time events pursuant to changes in GAAP and certain other non-cash charges after discussions between the Manager and the Company’s independent directors and after approval by a majority of the independent directors. Going forward, “Core Earnings” will be calculated based on the new formulation set forth in the Third Amended and Restated Management Agreement, which the Company, the Operating Company and the Manager entered into on November 1, 2017 . The Manager computes each quarterly installment of the incentive fee within 45 days after the end of the fiscal quarter with respect to which such installment is payable and promptly delivers such calculation to the Company’s Board of Directors . The amount of the installment shown in the calculation is due and payable no later than the date which is five business days after the date of delivery of such computation to the Board of Directors . The Manager has not earned an incentive fee for any quarter in the years ended December 31, 2017 , 2016 and 201 5 . |
RESTRUCTURING COSTS
RESTRUCTURING COSTS | 12 Months Ended |
Dec. 31, 2017 | |
RESTRUCTURING COSTS [Abstract] | |
RESTRUCTURING COSTS | 1 3 . RESTRUCTURING COSTS On August 11, 2015, the Company’s Board of Directors approved consolidating its offices and moving the corporate headquarters to Memphis, Tennessee. In connection with the consolidation and moving of the Company’s headquarters, the Company added legal, accounting, loan administration and business development personnel in Memphis and closed its offices in Miami, Florida and Cleveland, Ohio. The consolidation was completed by the end of the third quarter of 2015. Restructuring costs reflected in the accompanying Consolidated Statements of Operations relate primarily to one-time termination benefits and lease termination costs. The Company recognizes these severance and other charges when the requirements of ASC 420 , Exit or Disposal Cost Obligations , have been met regarding a plan of termination and when communication has been made to employees. During the years ended December 31, 2017, 2016 and 2015 , the Company incurred none, $54,000 and $0.3 million in restructuring costs in the Consolidated Statements of Operations, respectively. Year ended December 31, 2017 Total cumulative restructuring costs Restructuring Restructuring incurred or costs liability at Restructuring Cash Non-cash costs liability at expected to be Cost Type December 31, 2016 costs incurred payments activity December 31, 2017 incurred Severance $ - $ - $ - $ - $ - $ 97 Fixed asset disposal - - - - - 33 Lease termination 79 - (43) - 36 187 Other - - - - - 13 Total restructuring costs $ 79 $ - $ (43) $ - $ 36 $ 330 Year ended December 31, 2016 Total cumulative restructuring costs Restructuring Restructuring incurred or costs liability at Restructuring Cash Non-cash costs liability at expected to be Cost Type December 31, 2015 costs incurred payments activity December 31, 2016 incurred Severance $ - $ - $ - $ - $ - $ 97 Fixed asset disposal - - - - - 33 Lease termination 85 64 (70) - 79 187 Other 10 - - (10) - 13 Total restructuring costs $ 95 $ 64 $ (70) $ (10) $ 79 $ 330 Year ended December 31, 2015 Total cumulative restructuring costs Restructuring Restructuring incurred or costs liability at Restructuring Cash Non-cash costs liability at expected to be Cost Type December 31, 2014 costs incurred payments activity December 31, 2015 incurred Severance $ - $ 97 $ 97 $ - $ - $ 97 Fixed asset disposal - 33 - 33 - 33 Lease termination - 124 39 - 85 124 Other - 22 12 - 10 22 Total restructuring costs $ - $ 276 $ 148 $ 33 $ 95 $ 276 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 1 4 . COMMITMENTS AND CONTINGENCIES As described in Note 3, Investments , the Company has $310.8 million of unfunded loan commitments related to its investment portfolio. As described in Note 5, Investment in Real Estate Venture , the Company has $3.4 million of unfunded loan commitments to the SL1 Venture. As described in Note 7 , Other Loans , the Company has $3.4 million of unfunded loan commitments related to nine revolving loan agreements. In conjunction with the Management Agreement with its Manager, the Company also is obligated under several operating leases (primarily for office spaces). The Company recognized $0.2 million and $0.2 million of rent expense for the years ended December 31, 2017 and 2016 , respectively, all of which is included in general and administrative expenses in the Consolidated Statements of Operations. During the year ended December 31, 2015, the Company recognized $0.4 million of rent expense (gross of $0.2 million of sublease income). Of this amount, $0.1 million was included in general and administrative expenses, and the remaining amount was included in restructuring costs in the Consolidated Statements of Operations. The following table summarizes the maturities of the Company’s senior participation and future minimum payments (gross of any sublease income) under the operating leases as of December 31, 2017 : Contractual Obligations 2018 2019 2020 2021 2022 Thereafter Total Long-term debt obligations (1) (2) $ 732 $ - $ - $ - $ - $ - $ 732 Operating lease obligations 237 171 145 - - - 553 Total $ 969 $ 171 $ 145 $ - $ - $ - $ 1,285 (1) Represents principal payments gross of discounts and debt issuance costs. (2) Amount excludes interest, which is variable based on 30-day LIBOR plus a spread of 3.10% . The Company from time to time may be party to litigation relating to claims arising in the normal course of business. The Company is not aware of any legal claims that could materially impact its financial position, results of operations, or cash flows. |
QUARTERLY FINANCIAL DATA
QUARTERLY FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2017 | |
QUARTERLY FINANCIAL DATA [Abstract] | |
QUARTERLY FINANCIAL DATA | 1 5 . QUARTERLY FINANCIAL DATA (UNAUDITED) The following table summarizes the Company’s quarterly financial results for each quarter of the year ended December 31, 2017 : For the three month period ended, March 31 June 30 September 30 December 31 2017: Total revenues $ 2,301 $ 2,599 $ 3,361 $ 3,930 Net income $ 1,783 $ 5,194 $ 4,457 $ 3,125 Net income attributable to common stockholders $ 1,237 $ 5,017 $ 4,147 $ 2,702 Net income per common share - basic $ 0.14 $ 0.50 $ 0.29 $ 0.19 Net income per common share - diluted $ 0.14 $ 0.50 $ 0.29 $ 0.19 The following table summarizes the Company’s quarterly financial results for each quarter of the year ended December 31, 2016 : For the three month period ended, March 31 June 30 September 30 December 31 2016: Total revenue $ 1,143 $ 1,533 $ 1,698 $ 2,158 Net income $ 1,122 (1) $ 5,412 $ 4,994 $ 4,489 Net income attributable to common stockholders $ 1,122 $ 5,412 $ 4,994 $ 3,493 Net income per common share - basic $ 0.18 $ 0.89 $ 0.84 $ 0.53 Net income per common share - diluted $ 0.18 $ 0.89 $ 0.84 $ 0.53 (1) Includes $2.0 million in transaction and other expenses. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | 1 6 . SUBSEQUENT EVENTS The Company’s management has evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. Other than those disclosed below, there have been no subsequent events that occurred during such period that require disclosure or recognition in the accompanying consolidated financial statements as of and for the year ended December 31, 2017 . Investment Activity Subsequent to December 31, 2017 the Company closed on the following development property investment with a Profits Interest: Total Investment Closing Date MSA Commitment 2/8/2018 Minneapolis 2 $ 10,543 Total $ 10,543 On Januar y 10, 2018, the Company purchased 100% of the Class A membership units of the limited liability company that own ed the Jacksonville 1 development property investment with a Profits Interest for $2.7 million. On February 2, 2018, the Company purchased 100% of the Class A membership units of the limited liability companies that owned the Atlanta 1 and Atlanta 2 development property investments with a Profits Interest for $2.4 million and $3.0 million, respectively. On February 20, 2018, the Company purchased 100% of the Class A membership units of the limited liability company that owned the Pittsburgh development property investment with a Profits Interest for $0.9 million. These purchases increased the Company’s ownership interest on each development property investment from 49.9% to 100% . The Company now owns all management and voting rights in each of these limited liability companies. On March 2, 2018, the Company closed its first bridge loan investment consisting of five separate bridge loans with an aggregate commitment amount of $83. 3 million secured by first mortgages on five properties in the Miami, Florida MSA. We refer to this transaction as the “Miami portfolio investment”. Three bridge loans amounting to an aggregate principal amount of $47.1 million are secured by first priority mortgages on self-storage properties with an aggregate of over 203,000 net rentable square feet that were completed and began lease up in 2016, which loans bear interest at an annual rate of 6.9% , payable monthly in cash. The Company has a 49.9% Profits Interest in these three properties. Two bridge loans aggregating a principal amount of $36.2 million are secured by first priority mortgages on two newly-completed self-storage properties with an expected aggregate of over 160,000 net rentable square feet that are expected to begin lease up in March 2018, which loans will bear interest at an annual rate of 9.5% , with 6.5% payable monthly in cash and 3.0% accruing and payable upon maturity of the loan. The Company also has a 49.9% Profits Interest, after the other members of the borrower receive $1.0 million of preferential payments per loan. All five loans will mature five years from the date of closing, with the borrower having two extension options for one year each. Approximately $76. 9 million of the aggregate principal amount of the five loans was advanced upon closing, with the balance to be advanced as requested by the borrower to pay interest, operating and other expenses during the lease up period. Amendment to the Series A Preferred Stock Articles Supplementary On January 25, 2018, the Company filed, with MSDAT, Amendment No. 1 to the Series A Articles Supplementary. The Series A Articles Supplementary Amendment provides for certain amendments to the calculation of the cumulative dividend in the Series A Articles Supplementary, including, among other things, with respect to the computation and payment of the Aggregate Stock Dividend (as defined in the Series A Articles Supplementary) for the fiscal quarters beginning with the fiscal quarter ending March 31, 2018 through and including the fiscal quarter ending June 30, 2021. For the first three fiscal quarters of the fiscal years 2018, 2019 and 2020 and for the first fiscal quarter of 2021, the Company will declare and pay an Aggregate Stock Dividend equal to $2,125,000 (the “Target Stock Dividend”). For the last fiscal quarter of each of 2018, 2019 and 2020 and for the second fiscal quarter of 2021, the Company will compute the cumulative Aggregate Stock Dividend for all periods after December 31, 2017 through the end of such fiscal quarter equal to 25% of the incremental increase in the Company’s book value (as adjusted for equity capital issuances, share repurchases and certain non-cash expenses) plus, to the extent that we own equity interests in income-producing real property, the incremental increase in net asset value (provided, however, that no interest in the same real estate asset will be double counted) (the “Computed Stock Dividend”), and will declare and pay for such quarter an Aggregate Stock Dividend equal to the greater of the Target Stock Dividend or the Computed Stock Dividend minus the sum of all Aggregate Stock Dividends declared and paid for all fiscal quarters after December 31, 2017 and before the fiscal quarter for which such payment is computed, in each case subject to an amount that would, together with the Cash Distribution (as defined in the Series A Articles Supplementary), result in a 14.0% internal rate of return for the holders of the Series A Preferred Stock from the date of issuance of the Series A Preferred Stock. Public Offering of Series B Preferred Stock On January 25, 2018, the Company filed Articles Supplementary (the “Series B Articles Supplementary”) with the State Department of Assessments and Taxation of the State of Maryland designating 1,725,000 of its authorized preferred stock as 7.00% Series B cumulative redeemable perpetual preferred stock (the “Series B Preferred Stock”). The Series B Preferred Stock ranks senior to the Company’s common stock, with respect to distribution rights and rights upon liquidation, winding up and dissolution of the Company, and on parity with the Series A Preferred Stock and any other class or series of capital stock of the Company expressly designated as ranking on parity with the Series B Preferred Stock with respect to distribution rights and rights upon liquidation, winding up and dissolution of the Company, junior to any class or series of capital stock of the Company expressly designated as ranking senior to the Series B Preferred Stock with respect to distribution rights and rights upon liquidation, winding up and dissolution of the Company and junior in right of payment to the Company’s existing and future indebtedness. Holders of Series B Preferred Stock are entitled to receive, when, as and if authorized by the Board and declared by the Company, out of funds legally available for the payment of dividends under Maryland law, cumulative cash dividends from, and including, the original issue date quarterly in arrears on the fifteenth (15th) day of January, April, July and October of each year (or if not a business day, on the immediately preceding business day) (each, a “dividend payment date”). These cumulative cash dividends will accrue on the liquidation preference amount of $25.00 per share at a rate per annum equal to 7.00% with respect to each dividend period from and including the original issue date (equivalent to an annual rate of $1.7500 per share) from the date of issuance of such Series B Preferred Stock. Dividends will be payable to holders of record as of 5:00 p.m., New York City time, on the related record date. The record dates for the Series B Preferred Stock are the close of business on the first (1st) day of January, April, July or October immediately preceding the relevant dividend payment date (each, a “dividend record date”). If any dividend record date falls on any day other than a business day as defined in the Series B Articles Supplementary, the dividend record date shall be the immediately succeeding business day. On or after January 26, 2023, the Series B Preferred Stock may be redeemed, at the Company’s option, upon not less than 30 nor more than 60 days’ written notice, in whole or in part, at any time and from time to time, for cash at a redemption price equal to $25.00 per share, plus any accrued and unpaid dividends (whether or not authorized or declared) to, but excluding, the date fixed for redemption. Holders of Series B Preferred Stock will have no right to require the redemption or repurchase of the Series B Preferred Stock. Upon the occurrence of a Change of Control (as defined in the Series B Articles Supplementary), we may redeem for cash, in whole or in part, the Series B Preferred Stock within 120 days after the date on which such Change of Control occurred, by paying $25.00 per share, plus any accrued and unpaid dividends (whether or not authorized or declared) to, but excluding, the date fixed for redemption. Upon the occurrence of a Change of Control, each holder of Series B Preferred Stock will have the right (unless, prior to the Change of Control conversion date, the company has provided or provides notice of its election to redeem, in whole or in part, the Series B Preferred Stock) to convert some or all of the Series B Preferred Stock held by such holder (the “Change of Control Conversion Right”), on the Change of Control Conversion Date (as defined below) into a number of the Company’s common stock per Series B Preferred Stock to be converted equal to the lesser of: (1) the quotient obtained by dividing (i) the sum of (x) the liquidation preference amount of $25.00 per Series B Preferred Stock, plus (y) any accrued and unpaid dividends thereon (whether or not authorized or declared) to, but excluding, the Change of Control Conversion Date (unless the Change of Control Conversion Date is after a record date for a Series B Preferred Stock dividend payment for which dividends have been declared and prior to the corresponding Series B Preferred Stock dividend payment date, in which case no additional amount for such accrued and unpaid dividend will be included in this sum and such declared dividend will instead be paid, on such dividend payment date, to the holder of record of the Series B Preferred Stock to be converted as of 5:00 p.m. New York City time, on such record date) by (ii) the defined Stock Price; and (2) the 2.74876 share cap, subject to certain adjustments. Holders of the Series B Preferred Stock generally will have no voting rights. However, if the Company is in arrears on dividends, whether or not authorized or declared, on the Series B Preferred Stock for six or more quarterly periods, whether or not consecutive, holders of Series B Preferred Stock (voting together as a single class with the holders of all other classes or series of parity preferred stock (which excludes holders of Series A Preferred Stock, who are entitled to a separate class vote to elect separate Series A Preferred directors, as described above, upon which like voting rights have been conferred and are exercisable) will be entitled to elect two additional directors at a special meeting called upon the request of the holders of at least 10% of such outstanding shares of Series B Preferred Stock or the holders of at least 10% of outstanding shares of any such other class or series of the Company’s parity preferred stock or at the Company’s next annual meeting and each subsequent annual meeting of stockholders, until all accrued and unpaid dividends with respect to the Series B Preferred Stock have been paid. Such directors will be elected by a vote of holders of a majority of the outstanding Series B Preferred Stock and any other series of parity equity securities upon which like voting rights have been conferred and are exercisable, voting together as a single class (which excludes holders of Series A Preferred Stock, who are entitled to a separate class vote to elect separate Series A Preferred directors as described above). In the event of any liquidation, dissolution or winding up of the Company, the holders of the Series B Preferred Stock shall be entitled to receive a liquidating distribution in the amount of $25.00 per share, plus accrued and unpaid dividends (whether or not authorized or declared) to, but excluding, the date of final distribution to such holders. On January 26, 2018, the Company received $36.3 million in proceeds, net of underwriter’s discount but before offering costs, related to the issuance of 1,500,000 shares of Series B Preferred Stock. In connection with the issuance of the Series B Preferred Stock, the Company, acting in its capacity as the sole managing member of the Operating Company, entered into Amendment No. 2 to the Limited Liability Company Agreement in order to provide for the issuance, and the designation of the terms and conditions, of newly classified 7.00% Series B preferred units of limited liability company interest in the Operating Company, the economic terms of which are identical to those of the Series B Preferred Stock. For more information about the Series B Preferred Stock, see out Current Report on Form 8-K filed on January 25, 2018. Issuance of Series A Preferred Stock On February 16, 2018, the Company issued 20,000 restricted shares of the Series A Preferred Stock to the Buyers and received $20.0 million in proceeds pursuant to the terms of the Purchase Agreement. Credit Facility As of December 31, 2017, the Company had no borrowings under its C redit F acility. As of March 1 , 2018, the Company had $30. 0 million outstanding out of its $40.8 million in total availability under the Credit Facility . First Quarter Dividend Declarations On February 28, 2018 , the Company’s Board of Directors declared a cash dividend to the holders of the Series A Preferred Stock and a distribution payable in kind , if applicable, in a number of shares of common stock or Series A Preferred Stock as determined in accordance with the election of the holders of the Series A Preferred Stock for the quarter ending March 31, 2018. The dividends are payable on April 15, 2018 (or if not a business day, on the next business day) to holders of Series A Preferred Stock of record on April 1, 2018 . On February 28, 2018 , the Company’s Board of Directors declared a pro rata cash dividend on the Series B Preferred Stock for the period from, and including, the original issue date of January 26, 2018 , to, but excluding, April 13, 2018, in the amount of $0.37431 per share. The dividends are payable on April 13, 2018 to holders of Series B Preferred Stock of record on April 2, 2018 . On February 28, 2018 , the Company’s Board of Directors declared a cash dividend of $0.35 per share of common stock for the quarter ending March 31, 201 8 . The dividend is payable on April 13, 2018 to stockholders of record on April 2, 2018 . |
SCHEDULE III - REAL ESTATE AND
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Dec. 31, 2017 | |
SCHEDULE III - REAL ESTATE AND ACCUMULATED [Abstract] | |
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | JERNIGAN CAPITAL, INC. Schedule III Real Estate and Accumulated Depreciation December 31, 2017 (Dollars in thousands) Gross Carrying Amount at Initial Cost December 31, 2017 Square Buildings and Costs Subsequent Buildings and Accumulated Year Description Footage Encumbrances Land Improvements to Acquisition Land Improvements Total Depreciation (1) Acquired Ocoee, FL 93,965 1,505 14,322 - 1,505 14,322 15,827 472 2017 (1) The costs of building and improvements are generally depreciated using the straight-line method based on a useful life of 40 years. December 31, 2017 Self-storage real estate owned: Balance at beginning of period $ - Acquisitions & improvements 15,827 Construction in progress - Balance at end of period $ 15,827 Accumulated Depreciation: Balance at beginning of period $ - Depreciation expense 472 Dispositions and other - Balance at end of period $ 472 |
SCHEDULE IV - MORTGAGE LOANS ON
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | 12 Months Ended |
Dec. 31, 2017 | |
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE [Abstract] | |
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | JERNIGAN CAPITAL, INC. Schedule IV Mortgage Loans on Real Estate December 31, 2017 (Dollars in thousands) Column A Column B Column C Column D Column E Column F Column G Column H Principal Amount Periodic Face Carrying of Loans Subject Interest Final Maturity Payment Amount of Amount of to Delinquent Description Location (6) Rate Date Terms Prior Liens Loans Loans (1) Principal or Interest Development property investments: Development investments with a profits interest Self-storage development project Atlanta 6.90 % 1-Jul-21 (2)(8) - 8,086 10,741 - Self-storage development project Tampa 6.90 % 1-Jul-21 (2)(7) - 5,285 6,012 - Self-storage development project Atlanta 6.90 % 1-Jul-21 (2)(8) - 5,769 8,631 - Self-storage development project Charlotte 6.90 % 1-Aug-21 (2)(8) - 7,251 10,363 - Self-storage development project Milwaukee 6.90 % 1-Aug-21 (2)(8) - 7,512 8,994 - Self-storage development project New Haven 6.90 % 1-Sep-21 (2)(9) - 6,524 8,231 - Self-storage development project Pittsburgh 6.90 % 1-Sep-21 (2)(9) - 4,798 6,774 - Self-storage development project Raleigh 6.90 % 1-Sep-21 (2)(8) - 5,550 5,889 - Self-storage development project Jacksonville 6.90 % 1-Oct-21 (2)(10) - 5,988 8,913 - Self-storage development project Austin 6.90 % 27-Oct-21 (2)(8) - 7,297 8,782 - Self-storage development project Charlotte 6.90 % 20-Sep-22 (2)(8) - 5,453 5,686 - Self-storage development project Jacksonville 6.90 % 17-Nov-22 (3)(8) - 4,971 5,818 - Self-storage development project New York City 6.90 % 4-Jan-23 (4)(8) - 14,914 18,892 - Self-storage development project Atlanta 6.90 % 1-Feb-23 (3)(8) - 2,393 2,236 - Self-storage development project Atlanta 6.90 % 1-Feb-23 (3)(8) - 7,040 7,147 - Self-storage development project Orlando 6.90 % 24-Feb-23 (3)(8) - 3,144 3,335 - Self-storage development project New Orleans 6.90 % 24-Feb-23 (3)(8) - 677 553 - Self-storage development project Atlanta 6.90 % 27-Feb-23 (3)(8) - 4,971 4,739 - Self-storage development project Fort Lauderdale 6.90 % 28-Feb-23 (3)(8) - 1,128 1,043 - Self-storage development project Houston 6.90 % 28-Feb-23 (3)(8) - 3,633 3,547 - Self-storage development project Louisville 6.90 % 14-Apr-23 (3)(8) - 2,932 3,083 - Self-storage development project Denver 6.90 % 20-Apr-23 (3)(8) - 1,940 1,849 - Self-storage development project Denver 6.90 % 20-Apr-23 (3)(8) - 5,442 5,849 - Self-storage development project Atlanta 6.90 % 1-Jun-23 (3)(8) - 4,344 4,262 - Self-storage development project Tampa 6.90 % 1-Jun-23 (3)(8) - 1,086 1,010 - Self-storage development project Tampa 6.90 % 1-Jun-23 (3)(8) - 1,422 1,335 - Self-storage development project Tampa 6.90 % 1-Jul-23 (3)(8) - 1,847 1,752 - Self-storage development project Baltimore 9.50 % 1-Jul-23 (3)(5)(8) - 3,315 3,115 - Self-storage development project Knoxville 6.90 % 28-Jun-23 (3)(8) - 1,351 1,265 - Self-storage development project Boston 6.90 % 28-Jun-23 (3)(11) - 4,978 4,914 - Self-storage development project New York City 9.50 % 1-Jul-23 (4)(5)(8) - 18,042 17,576 - Self-storage development project Jacksonville 6.90 % 27-Jul-23 (3)(8) - 1,134 1,053 - Self-storage development project Orlando 6.90 % 1-Sep-23 (3)(8) - 2,059 1,960 - Self-storage development project Los Angeles 6.90 % 30-Sep-24 (16)(12) - 7,533 7,398 - Self-storage development project Miami 6.90 % 14-Sep-23 (3)(8) - 5,862 5,725 - Self-storage development project Louisville 6.90 % 30-Sep-23 (3)(8) - 1,864 1,762 - Self-storage development project Miami 9.50 % 1-Nov-23 (3)(5)(8) - 1,014 820 - Self-storage development project New York City 9.50 % 1-Nov-23 (3)(5)(8) - 2,595 2,294 - Self-storage development project Miami 9.50 % 1-Dec-23 (3)(5)(8) - 3,508 3,099 - Self-storage development project Minneapolis 6.90 % 21-Nov-23 (3)(8) - 1,150 1,023 - Self-storage development project Boston 6.90 % 1-Jan-24 (3)(8) - 1,306 1,220 - Self-storage development project New York City 6.90 % 15-Dec-23 (3)(8) - 927 823 - Self-storage development project Boston 6.90 % 27-Dec-23 (3)(11) - 2,259 2,169 - Self-storage development project New York City 6.90 % 1-Jan-24 (16)(8) - 4,303 4,178 - $ - $ 194,597 $ 215,860 $ - Construction loans - first mortgages Self-storage development project Miami 6.90 % 31-Jan-18 (13) - 12,492 12,373 - $ - $ 12,492 $ 12,373 $ - Operating property loans - first mortgages Self-storage property Newark 5.85 % 1-Aug-22 (14) (15) - 3,480 3,447 - Self-storage property Chicago 6.90 % 22-Dec-21 (15) - 2,500 2,491 - $ - $ 5,980 $ 5,938 $ - $ - $ 213,069 $ 234,171 $ - (1) The face amount of loans in Column F approximate the aggregate cost for federal income tax purposes. (2) Development property investments with a Profits Interest are comprised of a construction loan secured by a first mortgage on the development project and a mezzanine loan secured by a first priority security interest in the membership interests of the owners of the project. These loans are entered into simultaneously and are valued as a single instrument for accounting purposes. (3) Development property investments with a Profits Interest are comprised of a construction loan secured by a first mortgage on the development project. (4) Development property investments with a Profits Interest are comprised of a construction lending facility secured by a first mortgage on the development project. This project is located in New York state, and in order to comply with the New York lien law, our typical investment commitment amount was divided into three tranches with three individual promissory notes, each secured by the first mortgage on the development project. The first note is comprised of land costs only, the second is comprised of construction hard costs only, and the third is comprised of all the remaining costs in the project, with the total amount of all three notes equaling our total investment commitment amount. (5) For this investment, interest accrues at a rate of 9.5% per annum, with 6.5% payable monthly from interest reserves and the remaining 3.0% accruing but not payable until the loan matures or is paid off. (6 ) Represents the MSA of the development project. (7 ) Interest only monthly ( funded from interest reserve ); balloon payment due at maturity; prepayment penalty - On or before 25th month - no prepayment permitted ; on or after 25th month but prior to 37th month, 3%; on or after 37th month but prior to 49th month, 2%; on or after 49th month but prior to 61st month, 1%; on or after 61st month - no prepayment premium. (8 ) Interest only monthly (funded from interest reserve until the project is generating positive cash flows, in which case, all or a portion of the interest is paid in cash) ; balloon payment due at maturity; prepayment penalty - On or before 37th month - no prepayment permitted ; on or after 37th month but prior to 49th month, 3%; on or after 49th month but prior to 61st month, 2%; on or after 61st month but prior to 70th month, 1%; on or after 70th month - no prepayment premium. (9) Interest only monthly (funded from interest reserve until the project is generating positive cash flows, in which case, all or a portion of the interest is paid in cash ); balloon payment due at maturity; prepayment penalty – Prior to completion date – no prepayment permitted; prior to 19th month following completion - no prepayment premium; on or after 19th month but prior to 31st month following completion, 3%; on or after 31st month but prior to 43rd month following completion , 2%; on or after 43rd month but prior to 55th month following completion , 1%; on or after 55 th month following completion - no prepayment premium. (10 ) Interest only monthly; balloon payment due at maturity; prepayment penalty – On or before 13 th month – no prepayment permitted; on or after 13 th month but prior to 19 th month – no prepayment premium; on or after 19th month but prior to 49th month, 3%; on or after 49th month but prior to 61st month, 2%; on or after 61st month but prior to 70th month, 1%; on or after 70th month - no prepayment premium. (11 ) Interest only monthly ( funded from interest reserve ); balloon payment due at maturity; prepayment penalty - On or before 37th month, 4%; on or after 37th month but prior to 49th month, 3%; on or after 49th month but prior to 61st month, 2%; on or after 61st month but prior to 67th month, 1%; on or after 67th month - no prepayment premium. (12 ) Interest only monthly ( funded from interest reserve ); balloon payment due at maturity; prepayment penalty - On or before 37th month - no prepayment permitted; on or after 37th month but prior to 49th month, 2%; on or after 49th month but prior to 70th month, 1%; on or after 70th month - no prepayment premium. (13 ) Interest only monthly (funded from interest reserve ) ; balloon payment due at maturity subject to contribution agreements from equity REIT; no prepayment permitted for all or any portion of the loan prior to completion of construction and receipt of certificate of occupancy. (1 4 ) Original maturity date is August 1, 2022 with an option to extend 36 months to August 1, 2025. (1 5 ) Interest only monthly; balloon payment due at maturity; no prepayment during first 36 months, thereafter stepdown prepayment of 3%, 2%, 1%, no prepayment the last 90 days prior to maturity. (16) This development property investment with a Profits Interest is secured by a first priority security interest in the membership interest of the developer partner of the project. The following table sets forth the activity of mortgage loans for the year ended December 31, 2017 : Balance as of December 31, 2016 $ 115,039 Fundings of principal, net of unamortized origination fees 150,217 Reclassification of self-storage real estate owned (12,919) Payment-in-kind interest 8,575 Repayments of principal (37,545) Net unrealized gains 10,804 Balance as of December 31, 2017 $ 234,171 |
SIGNIFICANT ACCOUNTING POLICI25
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Substantially all operations are conducted through the Operating Company, and all significant intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates. |
Variable Interest Entities | Variable Interest Entities The Company invests in entities that may qualify as variable interest entities (“VIEs”). A VIE is a legal entity that lacks one or more of the characteristics of a voting interest entity. A VIE is defined as an entity in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The determination of whether an entity is a VIE includes both a qualitative and quantitative analysis. Management bases the qualitative analysis on its review of the design of the entity, its organizational structure including allocation of decision-making authority and relevant financial agreements and the quantitative analysis on the forecasted cash flow of the entity. Management reassesses the initial evaluation of an entity as a VIE upon the occurrence of certain reconsideration events. A VIE must be consolidated only by its primary beneficiary, which is defined as the party that, along with its affiliates and agents, has both the: (i) power to direct the activities that most significantly impact the VIE’s economic performance and (ii) obligation to absorb the losses of the VIE or the right to receive the benefits from the VIE, which could be significant to the VIE. Management determines whether the Company is the primary beneficiary of a VIE by considering qualitative and quantitative factors, including, but not limited to: which activities most significantly impact the VIE’s economic performance and which party controls such activities; the amount and characteristics of its investment; the obligation or likelihood for the Company or other interests to provide financial support; consideration of the VIE’s purpose and design, including the risks the VIE was designed to create and pass through to its variable interest holders and the similarity with and significance to the Company’s business activities and the other interests. Management reassesses the determination of whether the Company is the primary beneficiary of a VIE each reporting period. |
Equity Investments | Equity Investments Investments in real estate ventures and entities over which the Company exercises significant influence but not control are accounted for using the equity method. In accordance with Accounting Standards Codification (“ASC”) 825, Financial Instruments (“ASC 825-10”), issued by the Financial Accounting Standards Board (“FASB”), the Company has elected the fair value option of accounting for its development property investments, which would otherwise be required to be accounted for under the equity method. The Company also holds an investment in a real estate venture that is accounted for under the equity method of accounting. |
Loan Investments and Election of Fair Value Option of Accounting for Certain Loan Investments | Loan Investments and Election of Fair Value Option of Accounting for Certain Loan Investments The Company has elected the fair value option of accounting for all of its investment portfolio loan investments, including those that are required under GAAP to be accounted for under the equity method, in order to provide stockholders and others who rely on the Company’s financial statements with a more complete and accurate understanding of the Company’s economic performance including its revenues and value inherent in the Company’s equity participation in development projects. Changes in the fair value of these investments are recorded in change in fair value of investments within other income. All direct loan costs are charged to expense as incurred. Each loan investment, including those recorded at cost and presented on the Consolidated Balance Sheets as other loans, is evaluated for impairment on a periodic basis. For loans carried at fair value, indicators of impairment are reflected in the measurement of the loan. For loans that are carried at cost, the Company estimates an allowance for loan loss at each reporting date. In evaluating loan impairment, the Company also periodically evaluates the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower on a loan by loan basis. The Company also evaluates the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the property. In addition, the Company considers the overall economic environment, real estate sector and geographic sub-market in which the borrower operates. A loan will be considered impaired when, based on current information and events, it is probable that the loan will not be collected according to the contractual terms of the loan agreement. Factors to be considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. At December 31, 2017 and 2016 , there were no loans that were deemed to be impaired loans. Additionally, for loans recorded at cost, the Company determined that no allowance for loan loss was necessary at December 31, 2017 and 2016 . For investments carried at fair value, fees and costs are expensed as incurred. |
Fair Value Measurement | Fair Value Measurement The Company carries certain financial instruments at fair value because it has elected to apply the fair value option on an instrument by instrument basis under ASC 825-10. The Company’s financial instruments consist of cash, development property investments (which are typically structured as first mortgages with a 49.9% interest in the positive cash flows from operations, sales and /or refinancings of self-storage facilities, which we refer to as “Profits Interest”) , operating property loans (loans secured by operating properties), the investment in real estate venture, other loans, receivables, the secured revolving Credit Facility (as defined below), senior loan participations, and payables. The following table presents the financial instruments measured at fair value on a recurring basis at December 31, 2017 : Fair Value Measurements Using Total Level 1 Level 2 Level 3 Development property investments $ 228,233 $ - $ - $ 228,233 Operating property loans 5,938 - - 5,938 Total investments $ 234,171 $ - $ - $ 234,171 The following table presents the financial instruments measured at fair value on a recurring basis at December 31, 2016 : Fair Value Measurements Using Total Level 1 Level 2 Level 3 Development property investments $ 95,102 $ - $ - $ 95,102 Operating property loans 9,905 - - 9,905 Total investments $ 105,007 $ - $ - $ 105,007 Estimating fair value requires the use of judgment. The types of judgments involved depend upon the availability of observable market information. Management’s judgments include determining the appropriate valuation model to use, estimating unobservable inputs and applying valuation adjustments. See Note 4, Fair Value of Financial Instruments , for additional disclosure on the valuation methodology and significant assumptions, as well as the election of the fair value option for certain financial instruments. |
Self-Storage Real Estate Owned | Self-Storage Real Estate Owned Land is carried at historical cost. Building and improvements are carried at historical cost less accumulated depreciation and impairment losses. The cost primarily reflects the funded principal balance of the loan to the Company, net of unamortized origination fees, unrealized appreciation recognized as of the acquisition date, and the cash consideration paid to acquire the developer’s equity interest and portion of Profits Interest. Ordinary repairs and maintenance are expensed as incurred; major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives. The costs of building and improvements are generally depreciated using the straight-line method based on a useful life of 40 years. The Company expects that the majority of future self-storage facility acquisitions will be considered asset acquisitions; however, the Company will evaluate each acquisition using Accounting Standards Update (“ASU”) 2017-01 - Business Combinations (Topic 805): Clarifying the Definition of a Business to determine whether accounting for a business combination or asset acquisition applies. When facilities are acquired, the cost is allocated to the tangible and intangible assets acquired and liabilities assumed based on relative fair values. Allocations to the individual assets and liabilities are based upon their relative fair values as estimated by management. In allocating the purchase price for an acquisition, the Company determines whether the acquisition includes intangible assets or liabilities. The Company allocates a portion of the cost to an intangible asset attributable to the value of in-place leases. This intangible asset is amortized to expense over the expected remaining term of the respective leases, which is generally one year. Substantially all of the leases in place at acquired facilities are at market rates, as the majority of the leases are month-to-month contracts. Accordingly, to date, no portion of the basis for an acquired property has been allocated to above- or below-market lease intangibles. To date, no intangible asset has been recorded for the value of customer relationships, because the Company does not have any concentrations of significant customers and the average customer turnover is fairly frequent. The Company evaluates long-lived assets for impairment when events and circumstances, such as declines in occupancy and operating results, indicate that there may be an impairment. The carrying value of these long-lived assets is compared to the undiscounted future net operating cash flows, plus a terminal value, attributable to the assets to determine if the facility’s basis is recoverable. If an asset’s basis is not considered recoverable, an impairment loss is recorded to the extent the net carrying value of the asset exceeds the fair value. The impairment loss recognized equals the excess of net carrying value over the related fair value of the asset. There were no impairment losses recognized in accordance with these procedures during the year ended December 31, 2017 . |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash, investments in money market accounts and certificates of deposit with original maturities of three months or less are considered to be cash equivalents. The Company places its cash and cash equivalents primarily with three financial institutions, and the balance at each financial institution exceeds the Federal Deposit Insurance Corporation insurance limit of $250,000 per institution. |
Other Loans | Other Loans The Company’s other loans balance primarily includes principal balances for certain revolving loan agreements and short-term mortgage loans made by the Company in situations where it was determined that making such loans would benefit the Company’s primary business. These loans are accounted for under the cost method. |
Fixed Assets | Fixed Assets Fixed assets are recorded at cost and consist of furniture, office and computer equipment, and software. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets, which range from three to seven years. Fixed assets are generally purchased by the Manager and the cost reimbursed by the Company. Maintenance and repair costs are charged to expense as incurred. Upon sale or retirement, the asset cost and related accumulated depreciation are eliminated from the respective accounts and any resulting gain or loss is included in income. |
Revenue Recognition | Revenue recognition Interest income is recognized as earned on a simple interest basis and is reported in interest income from investments in the Consolidated Statements of Operations. Accrual of interest will be discontinued on a loan when management believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that collection of interest is doubtful. The Company will recognize income on impaired loans when they are placed into non-accrual status on a cash basis when the loans are both current and the collateral on the loan is sufficient to cover the outstanding obligation to the Company. If these factors do not exist, the Company will not recognize income on such loans. Accrued interest generally is reversed when a loan is placed on non-accrual status. The Company’s loan origination fees are accreted into interest income over the term of the investment using the effective yield method. The operations of the self-storage real estate owned are managed by a third-party self-storage management company. All rental leases are operating leases, and rental income is recognized in accordance with the terms of the leases, which generally are month to month. |
Debt Issuance Costs | Debt Issuance Costs Costs related to the issuance of a debt instrument are deferred and amortized as interest expense over the estimated life of the related debt instrument using the straight-line method, which approximates the effective interest method. If a debt instrument is repurchased prior to its original maturity date, the Company evaluates both the unamortized balance of debt issuance costs as well as any new debt issuance costs, including third party fees, to determine if the costs should be written off to interest expense or, if significant, included in “loss on modification or extinguishment of debt” in the accompanying Consolidated Statements of Operations. Debt issuance costs related to the sale of senior participations are presented in the accompanying Consolidated Balance Sheets as a deduction from the carrying amount of the principal balance. Debt issuance costs related to the revolving Credit Facility are presented in the accompanying Consolidated Balance Sheets as Deferred Costs. |
Transaction and Other Expenses | Transaction and other expenses Transaction and other expenses consist of non-capitalizable advisory fees and other unreimbursed expenses incurred in connection with various financing and investment transactions and are expensed as incurred. The Company incurred none, $2.1 million and $0.3 million of such costs during the years ended December 31, 2017, 2016 and 2015 , respectively. |
Offering and Registration Costs | Offering and Registration Costs Offering and registration costs represent underwriting discounts and commissions, professional fees, fees paid to various regulatory agencies, and other costs incurred in connection with the registration and sale of the Company’s securities. Offering and registration costs incurred in connection with the Company’s common stock offerings are reflected as a reduction of additional paid-in capital. On July 27, 2016, the Company entered into a Purchase Agreement (as defined in Note 9, Stockholders’ Equity ) which requires the Company to issue and sell a minimum of $50.0 million of Series A Preferred Stock by July 27, 2018. The Company incurred $2.8 million of preferred stock offering costs in conjunction with the execution of the Purchase Agreement. Such costs are presented as deferred costs on the Consolidated Balance Sheets until such time as Series A Preferred Stock is issued. A pro rata portion of such deferred costs, based upon the ratio of the amount issued to the $50.0 million minimum issuance of Series A Preferred Stock, is reclassified to cumulative preferred stock upon each issuance of the Series A Preferred Stock. Of the $2.8 million of offering costs incurred, $0.6 million and $2.2 million is in deferred costs on the Consolidated Balance Sheets at December 31, 2017 and 2016 , respectively, and $2.2 million and $0.6 million has reduced the cumulative preferred stock balance on the accompanying Consolidated Balance Sheets at December 31, 2017 and 2016 , respectively. |
Income Taxes | Income Taxes The Company has elected to be taxed as a REIT and to comply with the related provisions of the Code. Accordingly, the Company will generally not be subject to U.S. federal income tax to the extent of its distributions to stockholders and as long as certain asset, income and share ownership tests are met. To qualify as a REIT, the Company must annually distribute at least 90% of its REIT taxable income to its stockholders and meet certain other requirements. |
Earnings per Share (“EPS”) | Earnings per Share (“EPS”) Basic EPS includes only the weighted average number of common shares outstanding during the period. Diluted EPS includes the weighted average number of common shares and the dilutive effect of restricted stock, accrued stock dividends, and redeemable Operating Company units when such instruments are dilutive. All outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are treated as participating in undistributed earnings with common shareholders. Awards of this nature are considered participating securities and the two-class method of computing basic and diluted EPS must be applied. |
Comprehensive Income | Comprehensive Income For the years ended December 31, 2017, 2016 and 2015 , comprehensive income equaled net income; therefore, separate Consolidated Statements of Comprehensive Income are not included in the accompanying consolidated financial statements. |
Segment Reporting | Segment Reporting The Company does not evaluate performance on a relationship specific or transactional basis and does not distinguish its principal business or group its operations on a geographical or other basis for purposes of measuring performance. Accordingly, the Company believes it has a single operating segment for reporting purposes in accordance with GAAP. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2017, the FASB issued ASU 2017-01 which provides guidance on whether transactions should be accounted for as acquisitions or disposals of assets or businesses. Specifically, when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or group of similar identifiable assets, the set of assets is not a business. Additionally, ASU 2017-01 also provides other guidance providing a more robust framework to use in determining whether a set of assets and activities is a business. Upon adoption of the new guidance, the Company expects that the majority of future self-storage facility acquisitions will now be considered asset acquisitions. This guidance is effective for annual periods beginning after December 15, 2017. Early adoption is permitted. The Company adopted ASU 2017-01 for new acquisitions beginning on July 1, 2017. The costs related to the acquisitions of self-storage facilities that qualify as asset acquisitions will be capitalized as part of the purchase. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU provides guidance on the classification of certain cash receipts and payments in the statement of cash flows (defined in the ASU as “cash flow issues”), including distributions received from equity method investees. This guidance is effective for public business entities for fiscal years and for interim periods within those fiscal years, beginning after December 15, 2017, with early adoption being allowed. The Company has elected to early adopt effective October 1, 2017 on a retrospective basis as required. The Company has concluded that the new accounting guidance does not impact its current classification of distributions received from equity method investees as an operating activity in its Consolidated Statements of Cash Flows. The Company further considered its components of cash flows under the cash flow issue “Separately Identifiable Cash Flow and Applicable of the Predominance Principle,” which addresses certain cash receipts and cash payments that may have aspects of more than one class of cash flows. In the absence of specific GAAP guidance, the Company evaluated its cash flows from origination fees received in cash, which have been historically presented as operating cash flows, on the basis of the nature of the underlying cash flows. The Company concluded that the origination fees are related to the origination of loans and the funding of our investment portfolio for which the associated cash flows are presented as investing activities. As a result, $0.4 million and $44,000 of origination fees received in cash for the years ended December 31, 2016 and 2015, respectively, have been retrospectively presented as an investment activity in the Consolidated Statements of Cash Flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. This guidance is effective for public business entities for fiscal years and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption being allowed as of the fiscal years beginning after December 15, 2018. The Company is currently assessing the impact this new accounting guidance will have on its consolidated financial statements; however, the Company does not expect the new accounting guidance to have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which is the final standard on accounting for leases. The most significant change for lessees is the requirement under the new guidance to recognize right-of-use assets and lease liabilities for all leases not considered short term leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales type leases, direct financing leases and operating leases. The Company does have rental income from month-to-month self-storage leases within the scope of ASU 2016-02. The Company does not have material amounts of rental or lease expense. The amendments in ASU 2016-02 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company is currently assessing the impact this new accounting guidance will have on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which is effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2017. This ASU outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. Several ASUs expanding and clarifying the initial guidance issued in ASU 2014-09 have been released since May 2014. The Company will adopt the ASU effective January 1, 2018. The Company has evaluated all applicable contracts and revenue streams and has concluded that the adoption does not have an effect on its consolidated financial statements, primarily due to the new guidance not applying to revenue associated with loans or derived from lease contracts. |
SIGNIFICANT ACCOUNTING POLICI26
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Financial Instruments Measured at Fair Value on a Recurring Basis | The following table presents the financial instruments measured at fair value on a recurring basis at December 31, 2017 : Fair Value Measurements Using Total Level 1 Level 2 Level 3 Development property investments $ 228,233 $ - $ - $ 228,233 Operating property loans 5,938 - - 5,938 Total investments $ 234,171 $ - $ - $ 234,171 The following table presents the financial instruments measured at fair value on a recurring basis at December 31, 2016 : Fair Value Measurements Using Total Level 1 Level 2 Level 3 Development property investments $ 95,102 $ - $ - $ 95,102 Operating property loans 9,905 - - 9,905 Total investments $ 105,007 $ - $ - $ 105,007 |
Consolidated Statements of Cash Flows – Supplemental Disclosures | The following table provides supplemental disclosures related to the Consolidated Statements of Cash Flows: Year ended December 31, 2017 2016 2015 Supplemental disclosure of cash flow information: Interest paid $ 926 $ 484 $ - Supplemental disclosure of non-cash investing and financing activities: Stock dividend paid on preferred stock $ 1,325 $ - $ - Dividends declared, but not paid, on preferred stock 423 996 - Dividends declared, but not paid, on common stock 5,051 3,134 2,157 Contribution of assets to real estate venture - 7,693 - Reclassification of self-storage real estate owned 12,919 - - Other loans paid off with the issuance of development property investments 1,727 - 2,573 Reclassification of deferred costs to cumulative preferred stock 1,648 - - Conversion of investment (preferred equity to mezzanine loan) - - 924 Retirement of common stock - - 1 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENTS [Abstract] | |
Schedule of Investments | As of December 31, 2017, the aggregate committed principal amount of the Company’s development property investments and operating property loans was approximately $523.8 million and outstanding principal was $213.1 million, as described in more detail in the table below: Metropolitan Remaining Statistical Area Total Investment Funded Unfunded Closing Date ("MSA") Commitment Investment (1) Commitment Fair Value Development property investments: Loan investments with a profits interest: 6/10/2015 Atlanta 1 (2)(5) $ 8,132 $ 8,086 $ 46 $ 10,741 6/19/2015 Tampa 1 (2) 5,369 5,285 84 6,012 6/26/2015 Atlanta 2 (2)(5) 6,050 5,769 281 8,631 6/29/2015 Charlotte 1 (2) 7,624 7,251 373 10,363 7/2/2015 Milwaukee (2) 7,650 7,512 138 8,994 7/31/2015 New Haven (2) 6,930 6,524 406 8,231 8/10/2015 Pittsburgh (2)(5) 5,266 4,798 468 6,774 8/14/2015 Raleigh (3) 8,792 5,550 3,242 5,889 9/30/2015 Jacksonville 1 (2)(5) 6,445 5,988 457 8,913 10/27/2015 Austin (2) 8,658 7,297 1,361 8,782 9/20/2016 Charlotte 2 (3) 12,888 5,453 7,435 5,686 11/17/2016 Jacksonville 2 (3) 7,530 4,971 2,559 5,818 1/4/2017 New York City 1 (2) 16,117 14,914 1,203 18,892 1/18/2017 Atlanta 3 14,115 2,393 11,722 2,236 1/31/2017 Atlanta 4 (3) 13,678 7,040 6,638 7,147 2/24/2017 Orlando 3 (3) 8,056 3,144 4,912 3,335 2/24/2017 New Orleans 12,549 677 11,872 553 2/27/2017 Atlanta 5 17,492 4,971 12,521 4,739 3/1/2017 Fort Lauderdale 9,952 1,128 8,824 1,043 3/1/2017 Houston 13,630 3,633 9,997 3,547 4/14/2017 Louisville 1 (3) 8,523 2,932 5,591 3,083 4/20/2017 Denver 1 9,806 1,940 7,866 1,849 4/20/2017 Denver 2 (3) 11,164 5,442 5,722 5,849 5/2/2017 Atlanta 6 12,543 4,344 8,199 4,262 5/2/2017 Tampa 2 8,091 1,086 7,005 1,010 5/19/2017 Tampa 3 9,224 1,422 7,802 1,335 6/12/2017 Tampa 4 10,266 1,847 8,419 1,752 6/19/2017 Baltimore (4) 10,775 3,315 7,460 3,115 6/28/2017 Knoxville 9,115 1,351 7,764 1,265 6/29/2017 Boston 1 (3) 14,103 4,978 9,125 4,914 6/30/2017 New York City 2 (4) 26,482 18,042 8,440 17,576 7/27/2017 Jacksonville 3 8,096 1,134 6,962 1,053 8/30/2017 Orlando 4 9,037 2,059 6,978 1,960 9/14/2017 Los Angeles 28,750 7,533 21,217 7,398 9/14/2017 Miami 1 14,657 5,862 8,795 5,725 9/28/2017 Louisville 2 9,940 1,864 8,076 1,762 10/12/2017 Miami 2 (4) 9,459 1,014 8,445 820 10/30/2017 New York City 3 (4) 14,701 2,595 12,106 2,294 11/16/2017 Miami 3 (4) 20,168 3,508 16,660 3,099 11/21/2017 Minneapolis 12,674 1,150 11,524 1,023 12/1/2017 Boston 2 8,771 1,306 7,465 1,220 12/15/2017 New York City 4 10,591 927 9,664 823 12/27/2017 Boston 3 10,174 2,259 7,915 2,169 12/28/2017 New York City 5 16,073 4,303 11,770 4,178 $ 500,106 $ 194,597 $ 305,509 $ 215,860 Construction loans: 12/23/2015 Miami 17,733 12,492 5,241 12,373 $ 17,733 $ 12,492 $ 5,241 $ 12,373 Total development property investments $ 517,839 $ 207,089 $ 310,750 $ 228,233 Operating property loans: 7/7/2015 Newark 3,480 3,480 - 3,447 12/22/2015 Chicago 2,502 2,500 2 2,491 Total operating property loans 5,982 $ 5,980 $ 2 $ 5,938 Total investments $ 523,821 $ 213,069 $ 310,752 $ 234,171 (1) Represents principal balance of loan gross of origination fees. (2) Facility had received certificate of occupancy as of December 31, 2017. See Note 4, Fair Value of Financial Instruments , for information regarding recognition of entrepreneurial profit. (3) Facility had achieved at least 40% construction completion but had not received certificate of occupancy as of December 31, 2017. See Note 4, Fair Value of Financial Instruments , for information regarding recognition of entrepreneurial profit. (4) These investments contain a higher loan-to-cost ratio and a higher interest rate, some of which interest is PIK interest. The PIK interest, computed at the contractual rate specified in each debt agreement, is periodically added to the principal balance of the debt and is recorded as interest income. Thus, the actual collection of this interest may be deferred until the time of debt principal repayment. (5) During the first quarter of 2018, the Company purchased its partner’s 50.1% Profits Interest in these investments. See Note 16, Subsequent Events , for information regarding these purchases. As of December 31, 2016, the aggregate committed principal amount of the Company’s development property investments and operating property loans was approximately $141.9 million and outstanding principal was $86.9 million, as described in more detail in the table below: Metropolitan Remaining Statistical Area Total Investment Funded Unfunded Closing Date ("MSA") Commitment Investment (1) Commitment Fair Value Development property investments: Loan investments with a profits interest: 4/21/2015 Orlando 1 (2) (5) $ 5,372 $ 5,308 $ 64 $ 7,302 6/10/2015 Atlanta 1 (2) 8,132 7,694 438 10,404 6/19/2015 Tampa (2) 5,369 5,285 84 6,279 6/26/2015 Atlanta 2 (2) 6,050 5,620 430 8,900 6/29/2015 Charlotte 1 (2) 7,624 6,842 782 9,853 7/2/2015 Milwaukee (2) 7,650 5,608 2,042 7,008 7/31/2015 New Haven (2) 6,930 5,257 1,673 6,730 8/10/2015 Pittsburgh (3) 5,266 3,497 1,769 4,551 8/14/2015 Raleigh 8,792 1,460 7,332 1,396 9/30/2015 Jacksonville 1 (2) 6,445 5,852 593 7,962 10/27/2015 Austin (3) 8,658 4,366 4,292 5,192 9/20/2016 Charlotte 2 12,888 1,446 11,442 1,298 11/17/2016 Orlando 2 (5) 5,134 1,342 3,792 1,237 11/17/2016 Jacksonville 2 7,530 624 6,906 551 $ 101,840 $ 60,201 $ 41,639 $ 78,663 Construction loans: 8/5/2015 West Palm Beach (4) 7,500 6,712 788 6,702 8/5/2015 Sarasota (4) 4,792 3,485 1,307 3,473 12/23/2015 Miami 17,733 6,517 11,216 6,264 $ 30,025 $ 16,714 $ 13,311 $ 16,439 Total development property investments 131,865 $ 76,915 $ 54,950 $ 95,102 Operating property loans: 6/19/2015 New Orleans (4) 2,800 2,800 - 2,768 7/7/2015 Newark 3,480 3,480 - 3,441 10/30/2015 Nashville (4) 1,210 1,210 - 1,204 12/22/2015 Chicago 2,502 2,500 2 2,492 Total operating property loans 9,992 $ 9,990 $ 2 $ 9,905 Total investments $ 141,857 $ 86,905 $ 54,952 $ 105,007 (1) Represents principal balance of loan gross of origination fees. (2) Facility had received certificate of occupancy as of December 31, 2016. See Note 4, Fair Value of Financial Instruments , for information regarding recognition of entrepreneurial profit. (3) Facility had achieved at least 40% construction completion but had not received certificate of occupancy as of December 31, 2016. See Note 4, Fair Value of Financial Instruments , for information regarding recognition of entrepreneurial profit. (4) These investments were fully repaid during the year ended December 31, 2017. (5) In the year ended December 31, 2017, the Company purchased the economic rights of the Class A membership units of the limited liability companies which own these development property investments. As such, these investments are presented as self-storage real estate owned in the December 31, 2017 Consolidated Balance Sheet. See below for additional discussion. |
Schedule of Changes in Fair Value of Investments | The following table provides a reconciliation of the funded principal to the fair market value of investments at December 31, 2017: Funded principal $ 213,069 Adjustments: Unamortized origination fees (5,081) Change in fair value of investments 26,267 Other (84) Fair value of investments $ 234,171 The following table provides a reconciliation of the funded principal to the fair market value of investments at December 31, 2016: Funded principal $ 86,905 Adjustments: Unamortized origination fees (1,056) Change in fair value of investments 19,242 Other (84) Fair value of investments $ 105,007 |
Schedule of Cost Basis of Real Estate Investments | The following table shows the Company’s basis in this facility as of August 9, 2017: Funded principal balance, net of unamortized origination fees $ 9,139 Unrealized appreciation on investments 3,780 Cash consideration paid, inclusive of transaction costs 2,856 Net property working capital acquired 52 Total cost basis $ 15,827 |
Real Estate Investment, Impact in Consolidated Balance Sheet , Disclosure | The following table shows the impact of this real estate investment on the Company’s accompanying Consolidated Balance Sheet as of December 31, 2017 : December 31, 2017 Cash and cash equivalents $ 121 Prepaid expenses and other assets 2 Land 1,505 Building and improvements 13,720 In-place leases 602 Accumulated depreciation and amortization (472) Self-storage real estate owned $ 15,355 Accounts payable, accrued expenses and other liabilities $ 67 |
Real Estate Investment, Impact in Consolidated Statement of Operations, Disclosure | The following table shows the impact of this real estate investment on the Company’s accompanying Consolidated Statement of Operations for the year ended December 31, 2017 : Year ended December 31, 2017 Rental revenues $ 530 Property operating expenses of real estate owned (271) Depreciation and amortization expense (472) Total expenses of real estate owned $ (743) |
FAIR VALUE OF FINANCIAL INSTR28
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
Summary of Significant Unobservable Inputs used to Value Investments | The following tables summarize the significant unobservable inputs the Company used to value its investments categorized within Level 3 as of December 31, 2017 and 2016 . These tables are not intended to be all-inclusive, but instead to capture the significant unobservable inputs relevant to the Company’s determination of fair values. As of December 31, 2017 Unobservable Inputs Primary Valuation Weighted Asset Category Techniques Input Estimated Range Average Development property investments (a) Income approach analysis Market yields/discount rate 7.83 - 10.62% 9.00% Exit date (d) 0.08 - 6.71 years 2.96 Development property investments with a profits interest (b) Option pricing model Volatility 63.94 - 94.03% 74.08% Exit date (d) 0.42 - 6.71 years 3.12 years Capitalization rate (c) 5.50 - 6.15% 5.51% Discount rate (c) 8.50 - 9.15% 8.51% Operating property loans Income approach analysis Market yields/discount rate 6.08 - 7.01% 6.47% Exit date (d) 3.98 - 4.65 years 4.37 years (a) The valuation technique for the development property investments with a Profits Interest does not differ from the development property investments without a Profits Interest. Therefore, this line item focuses on all development property investments, including those with a Profits Interest. (b) The valuation technique for the development property investments with a Profits Interest does not differ from the development property investments without a Profits Interest. The development property investments with a Profits Interest only require incremental valuation techniques to determine the value of the Profits Interest. Therefore this line only focuses on the Profits Interest valuation. (c) Eighteen properties were 40% - 100% complete, thus requiring a capitalization rate and/or discount rate to derive entrepreneurial profit, which are used to derive the enterprise value input to the OPM. Capitalization rates are estimated based on current data derived from independent sources in the markets in which the Company holds investments. (d) The exit dates for the development property investments are generally the estimated date of stabilization of the underlying property. The exit dates for the operating property loans are the contractual maturity dates. As of December 31, 2016 Unobservable Inputs Primary Valuation Weighted Asset Category Techniques Input Estimated Range Average Development property investments (a) Income approach analysis Market yields/discount rate 7.23 - 9.28% 8.34% Exit date (d) 0.17 - 3.88 years 1.81 years Development property investments with a Profits Interest (b) Option pricing model Volatility 68.72 - 73.46% 73.17% Exit date (d) 1.42 - 3.88 years 2.12 years Capitalization rate (c) 5.25 - 5.50% 5.47% Discount rate 8.25 - 8.50% 8.47% Operating property loans Income approach analysis Market yields/discount rate 6.09 - 7.20% 6.73% Exit date (d) 4.50 - 5.66 years 5.07 years (a) The valuation technique for the development property investments with a Profits Interest does not differ from the development property investments without a Profits Interest. Therefore, this line item focuses on all development property investments, including those with a Profits Interest. (b) The valuation technique for the development property investments with a Profits Interest does not differ from the development property investments without a Profits Interest. The development property investments with a Profits Interest only require incremental valuation techniques to determine the value of the Profits Interest. Therefore this line only focuses on the Profits Interest valuation. (c) Ten properties were 40% - 100% complete, thus requiring a capitalization rate to derive entrepreneurial profit, which is used to derive the enterprise value input to the OPM. Capitalization rates are estimated based on current data derived from independent sources in the markets in which the Company holds investments. (d) The exit dates for the development property investments are generally the estimated date of stabilization of the underlying property. The exit dates for the operating property loans are the contractual maturity dates. |
Schedule of Change in Fair Value of Investments Due to Change in Market Yield Discount Rates | The following fluctuations in the market yields/discount rates would have had the following impact on the fair value of the Company’s investments: Increase (decrease) in fair value of investments Change in market yields/discount rates (in millions) December 31, 2017 December 31, 2016 Up 25 basis points $ (1.2) $ (0.3) Down 25 basis points, subject to a minimum yield/rate of 10 basis points 1.2 0.3 |
Schedule of Change in Fair Value of Investments Due to Change in Capitalization Rates | The following fluctuations in the capitalization rates would have had the following impact on the fair value of the Company’s investments: Increase (decrease) in fair value of investments Change in capitalization rates (in millions) December 31, 2017 December 31, 2016 Up 25 basis points $ (2.8) $ (2.1) Down 25 basis points 3.1 2.3 Up 50 basis points (5.3) (3.8) Down 50 basis points 6.4 4.6 |
Changes in Investments that Use Level 3 Inputs | The following table presents changes in investments that use Level 3 inputs: Year ended December 31, 2017 2016 Balance at beginning of period $ 105,007 $ 59,822 Net realized gains - - Net unrealized gains 10,804 18,370 Fundings of principal and change in unamortized origination fees 150,217 45,689 Repayments of loans (27,513) (15,037) Payment-in-kind interest 8,575 3,856 Contribution of assets to SL1 Venture (see Note 5, Investment in Real Estate Venture ) - (7,693) Reclassification to self-storage real estate owned (12,919) - Net transfers in or out of Level 3 - - Balance at end of period $ 234,171 $ 105,007 |
INVESTMENT IN REAL ESTATE VEN29
INVESTMENT IN REAL ESTATE VENTURE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENT IN REAL ESTATE VENTURE [Abstract] | |
Equity Method Investments | As of December 31, 2017 , SL1 Venture had eleven development property investments with a Profits Interest as described in more detail in the table below: Metropolitan Remaining Statistical Area Total Investment Funded Unfunded Closing Date ("MSA") Commitment Investment (1) Commitment Fair Value 5/14/2015 Miami 1 (2) (3) $ 13,867 $ 10,348 $ 3,519 $ 11,950 5/14/2015 Miami 2 (2) (3) 14,849 10,187 4,662 10,945 9/25/2015 Fort Lauderdale (2) (3) 13,230 8,955 4,275 10,216 4/15/2016 Washington DC (4) 17,269 15,698 1,571 17,600 4/29/2016 Atlanta 1 (3) 10,223 7,093 3,130 7,778 7/19/2016 Jacksonville (4) 8,127 7,131 996 10,895 7/21/2016 New Jersey 7,828 1,967 5,861 1,908 8/15/2016 Atlanta 2 (4) 8,772 7,367 1,405 8,435 8/25/2016 Denver (4) 11,032 8,690 2,342 10,280 9/28/2016 Columbia (4) 9,199 7,925 1,274 8,843 12/22/2016 Raleigh (3) 8,877 4,280 4,597 4,603 Total $ 123,273 $ 89,641 $ 33,632 $ 103,453 (1) Represents principal balance of loan gross of origination fees. (2) These development property investments (having approximately $8.1 million of outstanding principal at contribution) were contributed to the SL1 Venture on March 31, 2016 by the Company. (3) Facility had achieved at least 40% construction completion but had not received certificate of occupancy as of December 31, 2017. See Note 4, Fair Value of Financial Instruments , for information regarding recognition of entrepreneurial profit. (4) Facility had received certificate of occupancy as of December 31, 2017. See Note 4, Fair Value of Financial Instruments , for information regarding recognition of entrepreneurial profit. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
VARIABLE INTEREST ENTITIES [Abstract] | |
Schedule of Variable Interest Entities | The Company’s maximum exposure to loss as a result of its involvement with the development property VIEs is as follows: December 31, 2017 2016 Assets recorded related to VIEs $ 228,233 $ 95,102 Unfunded loan commitments to VIEs 310,750 54,950 Maximum exposure to loss $ 538,983 $ 150,052 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
DEBT [Abstract] | |
Commitments and Outstanding Balances of Senior Participations | The table below details the bank commitment and outstanding balance of the Company’s senior participation at December 31, 2017 : Commitment by Bank Amount Borrowed Remaining Funds Interest Rate Effective Interest Rate at December 31, 2017 Maturity Date (1) Miami A Note (2) $ 10,001 $ 732 $ 9,269 30-day LIBOR + 3.10% 4.66 % January 31, 2018 Unamortized fees (14) Net balance $ 718 (1) On January 30, 2018, the maturity date was extended to March 31, 2018 . (2) The funded principal in our Miami construction loan is pledged as collateral. The table below details the bank commitments and outstanding balances of the Company’s senior participations at December 31, 2016 : Commitment by Bank Amount Borrowed Remaining Funds Interest Rate Effective Interest Rate at December 31, 2016 Maturity Date Operating Property A Note (1) $ 1,820 $ 1,820 $ - 30-day LIBOR + 3.85% 4.47 % April 1, 2019 Miami A Note (2) 10,001 - 10,001 30-day LIBOR + 3.10% 3.72 % July 1, 2017 July 2016 A Notes (3) 14,185 13,420 765 30-day LIBOR + 3.50% 4.12 % August 1, 2019 October 2016 A Note (4) 4,405 3,375 1,030 30-day LIBOR + 3.50% 4.12 % September 1, 2021 Total $ 30,411 18,615 $ 11,796 Unamortized fees (33) Net balance $ 18,582 (1) The funded principal in our New Orleans operating property loan is pledged as collateral. (2) The funded principal in our Miami construction loan is pledged as collateral. (3) The funded principal in our Atlanta 1, Atlanta 2, Tampa 1 and Orlando 1 development property investments is pledged as collateral. (4) The funded principal in our Charlotte 1 development property investments is pledged as collateral. |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
STOCKHOLDERS' EQUITY [Abstract] | |
Summary of Changes in Restricted Shares | A summary of changes in the Company’s restricted shares for the years ended December 31, 2017 and 2016 is as follows: Year ended December 31, 2017 2016 Weighted Weighted average grant average grant Shares date fair value Shares date fair value Nonvested at beginning of period, 120,001 $ 20.10 162,500 $ 20.08 Granted 111,414 22.59 14,340 13.95 Vested (46,413) 20.28 (55,172) 18.27 Forfeited - - (1,667) 20.00 Nonvested at end of period, 185,002 $ 21.58 120,001 $ 20.10 |
DIVIDENDS AND DISTRIBUTIONS (Ta
DIVIDENDS AND DISTRIBUTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Common Stock Class [Member] | |
Summary of Dividends Declared | The following table summarizes the Company’s dividends declared on its common stock during the year ended December 31, 2017: Date declared Record date Payment date Per share amount Total amount March 7, 2017 April 3, 2017 April 14, 2017 $ 0.35 $ 3,149 May 3, 2017 July 3, 2017 July 14, 2017 $ 0.35 $ 4,983 August 1, 2017 October 2, 2017 October 13, 2017 $ 0.35 $ 4,983 November 1, 2017 January 2, 2018 January 12, 2018 $ 0.35 $ 5,051 The following table summarizes the Company’s dividends declared on its common stock during the year ended December 31, 2016: Date declared Record date Payment date Per share amount Total amount March 10, 2016 April 1, 2016 April 15, 2016 $ 0.35 $ 2,157 May 20, 2016 July 1, 2016 July 15, 2016 $ 0.35 $ 2,087 September 2, 2016 October 1, 2016 October 14, 2016 $ 0.35 $ 2,087 November 2, 2016 January 3, 2017 January 13, 2017 $ 0.35 $ 3,134 |
Series A Preferred Stock [Member] | |
Summary of Dividends Declared | The following table summarized the Company’s dividends declared on its Series A Preferred Stock during the year ended December 31, 2017: Date declared Record date Payment date Per share amount Total amount Cash dividend: March 7, 2017 April 1, 2017 April 14, 2017 $ 17.50 $ 175 May 3, 2017 July 1, 2017 July 14, 2017 17.69 177 August 1, 2017 October 1, 2017 October 13, 2017 17.89 179 November 1, 2017 January 1, 2018 January 12, 2018 9.48 379 Stock dividend: March 7, 2017 April 1, 2017 April 15, 2017 (1) $ 37.10 $ 371 May 3, 2017 July 1, 2017 - - - August 1, 2017 October 1, 2017 October 13, 2017 (2) 13.15 131 November 1, 2017 January 1, 2018 January 12, 2018 (3) 1.11 44 (1) 16,497 shares of common stock were issued at the election of the Holders (2) 6,703 shares of common stock were issued at the election of the Holders (3) 2,222 shares of common stock were issued at the election of the Holders The following table summarized the Company’s dividends declared on its Series A Preferred Stock during the year ended December 31, 2016: Date declared Record date Payment date Per share amount Total amount Cash dividend: December 29, 2016 January 1, 2017 January 13, 2017 $ 17.31 $ 173 Stock dividend: December 29, 2016 January 1, 2017 February 15, 2017 (1) $ 82.25 $ 823 (1) 41,353 shares of common stock were issued at the election of the Holders |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
EARNINGS PER SHARE [Abstract] | |
Schedule of Earnings per Share, Basic and Diluted | For the years ended December 31, 2017, 2016 and 2015 , the Company’s basic earnings per share is computed using the two-class method, and the Company’s diluted earnings per share is computed using the more dilutive of the treasury stock method or two-class method: Year ended December 31, Shares outstanding 2017 2016 2015 Weighted average common shares - basic 11,735,455 6,060,100 4,504,356 Effect of dilutive securities 173,057 152,548 - Weighted average common shares, all classes 11,908,512 6,212,648 4,504,356 Calculation of Earnings per Share - basic Net income (loss) $ 14,559 $ 16,017 $ (2,943) Less: Net income allocated to preferred stockholders 1,456 996 - Net income allocated to unvested restricted shares (1) 188 345 - Dividends declared on unvested restricted shares - - 152 Net income (loss) attributable to common shareholders – two-class method $ 12,915 $ 14,676 $ (3,095) Weighted average common shares - basic 11,735,455 6,060,100 4,504,356 Earnings per share - basic $ 1.10 $ 2.42 $ (0.69) Calculation of Earnings per Share - diluted Net income (loss) $ 14,559 $ 16,017 $ (2,943) Less: Net income (loss) allocated to preferred stockholders 1,456 996 - Dividends declared on unvested restricted shares - - 152 Net income (loss) attributable to common shareholders – two-class method $ 13,103 $ 15,021 $ (3,095) Weighted average common shares - diluted 11,908,512 6,212,648 4,504,356 Earnings per share - diluted $ 1.10 $ 2.42 $ (0.69) (1) Unvested restricted shares of common stock participate in dividends with unrestricted shares of common stock on a 1:1 basis and thus are considered participating securities under the two-class method for the years ended December 31, 2017, 2016 and 2015. |
RESTRUCTURING COSTS (Tables)
RESTRUCTURING COSTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
RESTRUCTURING COSTS [Abstract] | |
Restructuring and Related Costs | During the years ended December 31, 2017, 2016 and 2015 , the Company incurred none, $54,000 and $0.3 million in restructuring costs in the Consolidated Statements of Operations, respectively. Year ended December 31, 2017 Total cumulative restructuring costs Restructuring Restructuring incurred or costs liability at Restructuring Cash Non-cash costs liability at expected to be Cost Type December 31, 2016 costs incurred payments activity December 31, 2017 incurred Severance $ - $ - $ - $ - $ - $ 97 Fixed asset disposal - - - - - 33 Lease termination 79 - (43) - 36 187 Other - - - - - 13 Total restructuring costs $ 79 $ - $ (43) $ - $ 36 $ 330 Year ended December 31, 2016 Total cumulative restructuring costs Restructuring Restructuring incurred or costs liability at Restructuring Cash Non-cash costs liability at expected to be Cost Type December 31, 2015 costs incurred payments activity December 31, 2016 incurred Severance $ - $ - $ - $ - $ - $ 97 Fixed asset disposal - - - - - 33 Lease termination 85 64 (70) - 79 187 Other 10 - - (10) - 13 Total restructuring costs $ 95 $ 64 $ (70) $ (10) $ 79 $ 330 Year ended December 31, 2015 Total cumulative restructuring costs Restructuring Restructuring incurred or costs liability at Restructuring Cash Non-cash costs liability at expected to be Cost Type December 31, 2014 costs incurred payments activity December 31, 2015 incurred Severance $ - $ 97 $ 97 $ - $ - $ 97 Fixed asset disposal - 33 - 33 - 33 Lease termination - 124 39 - 85 124 Other - 22 12 - 10 22 Total restructuring costs $ - $ 276 $ 148 $ 33 $ 95 $ 276 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Summary of the Maturities of Senior Participation and Future Minimum Payments | The following table summarizes the maturities of the Company’s senior participation and future minimum payments (gross of any sublease income) under the operating leases as of December 31, 2017 : Contractual Obligations 2018 2019 2020 2021 2022 Thereafter Total Long-term debt obligations (1) (2) $ 732 $ - $ - $ - $ - $ - $ 732 Operating lease obligations 237 171 145 - - - 553 Total $ 969 $ 171 $ 145 $ - $ - $ - $ 1,285 (1) Represents principal payments gross of discounts and debt issuance costs. (2) Amount excludes interest, which is variable based on 30-day LIBOR plus a spread of 3.10% . |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
QUARTERLY FINANCIAL DATA [Abstract] | |
Summary of Quarterly Financial Results | The following table summarizes the Company’s quarterly financial results for each quarter of the year ended December 31, 2017 : For the three month period ended, March 31 June 30 September 30 December 31 2017: Total revenues $ 2,301 $ 2,599 $ 3,361 $ 3,930 Net income $ 1,783 $ 5,194 $ 4,457 $ 3,125 Net income attributable to common stockholders $ 1,237 $ 5,017 $ 4,147 $ 2,702 Net income per common share - basic $ 0.14 $ 0.50 $ 0.29 $ 0.19 Net income per common share - diluted $ 0.14 $ 0.50 $ 0.29 $ 0.19 The following table summarizes the Company’s quarterly financial results for each quarter of the year ended December 31, 2016 : For the three month period ended, March 31 June 30 September 30 December 31 2016: Total revenue $ 1,143 $ 1,533 $ 1,698 $ 2,158 Net income $ 1,122 (1) $ 5,412 $ 4,994 $ 4,489 Net income attributable to common stockholders $ 1,122 $ 5,412 $ 4,994 $ 3,493 Net income per common share - basic $ 0.18 $ 0.89 $ 0.84 $ 0.53 Net income per common share - diluted $ 0.18 $ 0.89 $ 0.84 $ 0.53 (1) Includes $2.0 million in transaction and other expenses. |
SUBSEQUENT EVENTS (Tables)
SUBSEQUENT EVENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SUBSEQUENT EVENTS [Abstract] | |
Schedule of Subsequent Investments | Subsequent to December 31, 2017 the Company closed on the following development property investment with a Profits Interest: Total Investment Closing Date MSA Commitment 2/8/2018 Minneapolis 2 $ 10,543 Total $ 10,543 |
ORGANIZATION AND FORMATION OF39
ORGANIZATION AND FORMATION OF THE COMPANY (Narrative) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
ORGANIZATION AND FORMATION OF THE COMPANY [Abstract] | ||
Operations commenced date | Oct. 1, 2014 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Initial public offering | The Company closed its initial public offering (the "IPO") of its common stock, $0.01 par value per share (the "common stock"), on April 1, 2015 |
SIGNIFICANT ACCOUNTING POLICI40
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands | Jul. 27, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Significant Accounting Policies [Line Items] | ||||
Allowance for loan loss | $ 0 | $ 0 | ||
Origination fees received in cash | 4,566 | 441 | $ 44 | |
Transaction and other expenses | 2,100 | $ 300 | ||
Prepaid expenses and other assets | 2 | |||
Cash received upon closing of the credit facility | 403 | |||
Repurchase of senior loan participations | 20,000 | |||
Proceeds from draw on the Credit facility | 1,755 | 21,845 | ||
costs incurred upon closing of the Credit Facility | $ 118 | |||
Leases, Acquired-in-Place [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Finite-lived intangible asset, useful life | 1 year | |||
Assets Leased to Others [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 40 years | |||
Property, plant and equipment, depreciation methods | straight-line method | |||
Furniture, Office, Computer Equipment and Software [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, depreciation methods | straight-line basis | |||
Series A Preferred Stock [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Preferred stock offering costs | $ 2,800 | |||
Deferred offering cost | 600 | 2,200 | ||
Value of shares to be issued prior to expiration of commitment period | $ 50,000 | 50,000 | ||
Cumulative Preferred Stock [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Amount of reduction in cumulative preferred stock | $ 2,200 | $ 600 | ||
Development Property Investment [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Equity method investment, ownership percentage | 49.90% | |||
Maximum [Member] | Furniture, Office, Computer Equipment and Software [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 7 years | |||
Minimum [Member] | Furniture, Office, Computer Equipment and Software [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 3 years |
SIGNIFICANT ACCOUNTING POLICI41
SIGNIFICANT ACCOUNTING POLICIES (Financial Instruments Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Development property investments | $ 228,233 | $ 95,102 |
Operating property loans | 5,938 | 9,905 |
Fair value of investments | 234,171 | 105,007 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Development property investments | 228,233 | 95,102 |
Operating property loans | 5,938 | 9,905 |
Fair value of investments | $ 234,171 | $ 105,007 |
SIGNIFICANT ACCOUNTING POLICI42
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Consolidated Statements of Cash Flows - Supplemental Disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental disclosure of cash flow information: | |||
Interest paid | $ 926 | $ 484 | |
Supplemental disclosure of non-cash investing and financing activities: | |||
Stock dividend paid on preferred stock | 1,325 | ||
Dividends declared, but not paid, on preferred stock | 423 | 996 | |
Dividends declared, but not yet paid, on common stock | 5,051 | 3,134 | $ 2,157 |
Contribution of assets to real estate venture | 7,693 | ||
Reclassification of self-storage real estate owned | 12,919 | ||
Other loans paid off with issuance of development property investments | 1,727 | 2,573 | |
Reclassification of deferred costs to cumulative preferred stock | 1,648 | ||
Conversion of investment (preferred equity to mezzanine loan) | 924 | ||
Retirement of common stock | $ 3,200 | $ 3,152 | $ 1 |
INVESTMENTS (Narrative) (Detail
INVESTMENTS (Narrative) (Details) | Aug. 09, 2017USD ($) | Feb. 03, 2017USD ($) | Dec. 31, 2017USD ($)loanproperty | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Feb. 08, 2018USD ($) | Aug. 08, 2017 | Feb. 02, 2017 |
Schedule of Investments [Line Items] | ||||||||
Payments to acquire development property | $ 152,681,000 | $ 45,094,000 | $ 40,707,000 | |||||
Investment commitment | $ 523,821,000 | 141,857,000 | ||||||
Number of investments | property | 2 | |||||||
Funded principal | $ 213,069,000 | $ 86,905,000 | ||||||
New York City 1 [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Development property investment, total income | 4,900,000 | |||||||
Development property investment, assets | 15,800,000 | |||||||
Development property investment, liabilities | 14,700,000 | |||||||
Development property investment, revenue | 16,000 | |||||||
Development property investment, operating income (loss) | $ 200,000 | |||||||
New York City 1 [Member] | Concentration Related to Net Income [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Concentration risk percentage | 20.00% | 20.00% | ||||||
Other Development Property Investments, Excluding New York City 1 [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Development property investment, assets | $ 218,900,000 | |||||||
Development property investment, liabilities | 179,700,000 | |||||||
Development property investment, revenue | 3,000,000 | |||||||
Development property investment, operating income (loss) | (500,000) | |||||||
Atlanta 2 [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Development property investment, total income | $ 3,600,000 | |||||||
Development property investment, assets | 5,800,000 | 3,400,000 | ||||||
Development property investment, liabilities | 5,600,000 | 2,700,000 | ||||||
Development property investment, revenue | 100,000 | |||||||
Development property investment, operating income (loss) | (200,000) | |||||||
Other Development Property Investments Excluding Atlanta 2 [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Development property investment, assets | 65,200,000 | 41,000,000 | ||||||
Development property investment, liabilities | 54,600,000 | $ 28,500,000 | ||||||
Development property investment, revenue | 800,000 | |||||||
Development property investment, operating income (loss) | (700,000) | |||||||
Orlando 1 [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Payments to acquire development property | $ 1,300,000 | |||||||
Development Property Investments [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Investment commitment | $ 517,839,000 | 131,865,000 | ||||||
Number of investments | property | 44 | |||||||
Development Property Investments [Member] | Put Option [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Number of investments | property | 13 | |||||||
Put option purchase price terms | The put, if exercised, requires the Company to purchase the member's interest at the original purchase price plus a yield of 4.5% on such purchase price. | |||||||
Development Property Investments [Member] | Orlando 1 [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | ||||||
Development Property Investments [Member] | Orlando 2 [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Minority interest ownership percentage | 100.00% | |||||||
Development Property Investments [Member] | Class A Ship Units [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Equity method investment, ownership percentage | 49.90% | |||||||
Minority interest ownership percentage | 74.90% | |||||||
Payments to acquire development property | $ 1,600,000 | |||||||
Development Property Investments [Member] | Class A Ship Units [Member] | Orlando 1 [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Minority interest ownership percentage | 74.90% | 100.00% | ||||||
Development Property Investments [Member] | Class A Ship Units [Member] | Orlando 2 [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Equity method investment, ownership percentage | 49.90% | |||||||
Minority interest ownership percentage | 100.00% | |||||||
Development Property Investments [Member] | Loan Investments [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Equity method investment, ownership percentage | 49.90% | |||||||
Mortgage loans on real estate, interest rate | 6.90% | |||||||
Investment commitment | $ 500,106,000 | 101,840,000 | ||||||
Mortgage loans on real estate, periodic payment terms | typically have a term of 72 months. | |||||||
Development Property Investments [Member] | Loan Investments [Member] | Subsequent Event [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Investment commitment | $ 10,543,000 | |||||||
Development Property Investments [Member] | Loan Investments [Member] | New York City 1 [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Investment commitment | $ 16,117,000 | |||||||
Development Property Investments [Member] | Loan Investments [Member] | Atlanta 2 [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Investment commitment | $ 6,050,000 | 6,050,000 | ||||||
Development Property Investments [Member] | Loan Investments [Member] | Orlando 1 [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Investment commitment | 5,372,000 | |||||||
Development Property Investments [Member] | Loan Investments [Member] | Orlando 2 [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Investment commitment | 5,134,000 | |||||||
Development Property Investments [Member] | Construction Loans [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Mortgage loans on real estate, interest rate | 6.90% | |||||||
Investment commitment | $ 17,733,000 | 30,025,000 | ||||||
Mortgage loans on real estate, periodic payment terms | and an initial term of 18 months that was extended during the first quarters of 2017 and 2018 | |||||||
Number of investments | loan | 1 | |||||||
Operating Property Loans [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Investment commitment | $ 5,982,000 | $ 9,992,000 | ||||||
Mortgage loans on real estate, periodic payment terms | generally have a term of 72 months. | |||||||
Operating Property Loans [Member] | Minimum [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Mortgage loans on real estate, interest rate | 5.85% | |||||||
Operating Property Loans [Member] | Maximum [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Mortgage loans on real estate, interest rate | 6.90% |
INVESTMENTS (Schedule of Invest
INVESTMENTS (Schedule of Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 08, 2018 | |
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 523,821 | $ 141,857 | ||
Funded Investment | 213,069 | 86,905 | ||
Development property investments, Fair Value | 228,233 | 95,102 | ||
Operating property loans, Fair Value | 5,938 | 9,905 | ||
Fair value of investments | $ 234,171 | $ 105,007 | ||
Percentage of completion of construction | 100.00% | |||
Minimum [Member] | ||||
Schedule of Investments [Line Items] | ||||
Percentage of completion of construction | 40.00% | 40.00% | ||
Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | $ 213,069 | $ 86,905 | ||
Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | 310,752 | 54,952 | ||
Atlanta 1 [Member] | Subsequent Event [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity method investment percentage of additional equity acquired | 51.10% | |||
Atlanta 2 [Member] | Subsequent Event [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity method investment percentage of additional equity acquired | 50.10% | |||
Jacksonville 1 [Member] | Subsequent Event [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity method investment percentage of additional equity acquired | 51.10% | |||
Development Property Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | 517,839 | 131,865 | ||
Development property investments, Fair Value | 228,233 | 95,102 | ||
Development Property Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 207,089 | 76,915 | ||
Development Property Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | 310,750 | 54,950 | ||
Development Property Investments [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | 500,106 | 101,840 | ||
Development property investments, Fair Value | 215,860 | 78,663 | ||
Development Property Investments [Member] | Loan Investments [Member] | Subsequent Event [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 10,543 | |||
Development Property Investments [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 194,597 | 60,201 | ||
Development Property Investments [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | 305,509 | 41,639 | ||
Development Property Investments [Member] | Construction Loans [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | 17,733 | 30,025 | ||
Development property investments, Fair Value | 12,373 | 16,439 | ||
Development Property Investments [Member] | Construction Loans [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 12,492 | 16,714 | ||
Development Property Investments [Member] | Construction Loans [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 5,241 | $ 13,311 | ||
Development Property Investments [Member] | Orlando 1 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 4/21/2015 | |||
Investment commitment | $ 5,372 | |||
Development property investments, Fair Value | 7,302 | |||
Development Property Investments [Member] | Orlando 1 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 5,308 | |||
Development Property Investments [Member] | Orlando 1 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 64 | |||
Development Property Investments [Member] | Atlanta 1 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 6/10/2015 | 6/10/2015 | ||
Investment commitment | $ 8,132 | $ 8,132 | ||
Development property investments, Fair Value | 10,741 | 10,404 | ||
Development Property Investments [Member] | Atlanta 1 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 8,086 | 7,694 | ||
Development Property Investments [Member] | Atlanta 1 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 46 | $ 438 | ||
Development Property Investments [Member] | Tampa [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 6/19/2015 | |||
Investment commitment | $ 5,369 | |||
Development property investments, Fair Value | 6,279 | |||
Development Property Investments [Member] | Tampa [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 5,285 | |||
Development Property Investments [Member] | Tampa [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 84 | |||
Development Property Investments [Member] | Tampa 1 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 6/19/2015 | |||
Investment commitment | $ 5,369 | |||
Development property investments, Fair Value | 6,012 | |||
Development Property Investments [Member] | Tampa 1 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 5,285 | |||
Development Property Investments [Member] | Tampa 1 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 84 | |||
Development Property Investments [Member] | Atlanta 2 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 6/26/2015 | 6/26/2015 | ||
Investment commitment | $ 6,050 | $ 6,050 | ||
Development property investments, Fair Value | 8,631 | 8,900 | ||
Development Property Investments [Member] | Atlanta 2 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 5,769 | 5,620 | ||
Development Property Investments [Member] | Atlanta 2 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 281 | $ 430 | ||
Development Property Investments [Member] | Charlotte 1 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 6/29/2015 | 6/29/2015 | ||
Investment commitment | $ 7,624 | $ 7,624 | ||
Development property investments, Fair Value | 10,363 | 9,853 | ||
Development Property Investments [Member] | Charlotte 1 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 7,251 | 6,842 | ||
Development Property Investments [Member] | Charlotte 1 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 373 | $ 782 | ||
Development Property Investments [Member] | Milwaukee [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 7/2/2015 | 7/2/2015 | ||
Investment commitment | $ 7,650 | $ 7,650 | ||
Development property investments, Fair Value | 8,994 | 7,008 | ||
Development Property Investments [Member] | Milwaukee [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 7,512 | 5,608 | ||
Development Property Investments [Member] | Milwaukee [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 138 | $ 2,042 | ||
Development Property Investments [Member] | New Haven [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 7/31/2015 | 7/31/2015 | ||
Investment commitment | $ 6,930 | $ 6,930 | ||
Development property investments, Fair Value | 8,231 | 6,730 | ||
Development Property Investments [Member] | New Haven [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 6,524 | 5,257 | ||
Development Property Investments [Member] | New Haven [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 406 | $ 1,673 | ||
Development Property Investments [Member] | Pittsburgh [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 8/10/2015 | 8/10/2015 | ||
Investment commitment | $ 5,266 | $ 5,266 | ||
Development property investments, Fair Value | 6,774 | 4,551 | ||
Development Property Investments [Member] | Pittsburgh [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 4,798 | 3,497 | ||
Development Property Investments [Member] | Pittsburgh [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 468 | $ 1,769 | ||
Development Property Investments [Member] | Raleigh [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 8/14/2015 | 8/14/2015 | ||
Investment commitment | $ 8,792 | $ 8,792 | ||
Development property investments, Fair Value | 5,889 | 1,396 | ||
Development Property Investments [Member] | Raleigh [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 5,550 | 1,460 | ||
Development Property Investments [Member] | Raleigh [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 3,242 | $ 7,332 | ||
Development Property Investments [Member] | Jacksonville 1 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 9/30/2015 | 9/30/2015 | ||
Investment commitment | $ 6,445 | $ 6,445 | ||
Development property investments, Fair Value | 8,913 | 7,962 | ||
Development Property Investments [Member] | Jacksonville 1 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 5,988 | 5,852 | ||
Development Property Investments [Member] | Jacksonville 1 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 457 | $ 593 | ||
Development Property Investments [Member] | Austin [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 10/27/2015 | 10/27/2015 | ||
Investment commitment | $ 8,658 | $ 8,658 | ||
Development property investments, Fair Value | 8,782 | 5,192 | ||
Development Property Investments [Member] | Austin [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 7,297 | 4,366 | ||
Development Property Investments [Member] | Austin [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 1,361 | $ 4,292 | ||
Development Property Investments [Member] | Charlotte 2 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 9/20/2016 | 9/20/2016 | ||
Investment commitment | $ 12,888 | $ 12,888 | ||
Development property investments, Fair Value | 5,686 | 1,298 | ||
Development Property Investments [Member] | Charlotte 2 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 5,453 | 1,446 | ||
Development Property Investments [Member] | Charlotte 2 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 7,435 | $ 11,442 | ||
Development Property Investments [Member] | Orlando 2 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 11/17/2016 | |||
Investment commitment | $ 5,134 | |||
Development property investments, Fair Value | 1,237 | |||
Development Property Investments [Member] | Orlando 2 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 1,342 | |||
Development Property Investments [Member] | Orlando 2 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 3,792 | |||
Development Property Investments [Member] | Jacksonville 2 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 11/17/2016 | 11/17/2016 | ||
Investment commitment | $ 7,530 | $ 7,530 | ||
Development property investments, Fair Value | 5,818 | 551 | ||
Development Property Investments [Member] | Jacksonville 2 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 4,971 | 624 | ||
Development Property Investments [Member] | Jacksonville 2 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 2,559 | $ 6,906 | ||
Development Property Investments [Member] | New York City 1 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 1/4/2017 | |||
Investment commitment | $ 16,117 | |||
Development property investments, Fair Value | 18,892 | |||
Development Property Investments [Member] | New York City 1 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 14,914 | |||
Development Property Investments [Member] | New York City 1 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 1,203 | |||
Development Property Investments [Member] | Atlanta 3 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 1/18/2017 | |||
Investment commitment | $ 14,115 | |||
Development property investments, Fair Value | 2,236 | |||
Development Property Investments [Member] | Atlanta 3 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 2,393 | |||
Development Property Investments [Member] | Atlanta 3 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 11,722 | |||
Development Property Investments [Member] | Atlanta 4 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 1/31/2017 | |||
Investment commitment | $ 13,678 | |||
Development property investments, Fair Value | 7,147 | |||
Development Property Investments [Member] | Atlanta 4 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 7,040 | |||
Development Property Investments [Member] | Atlanta 4 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 6,638 | |||
Development Property Investments [Member] | Orlando 3 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 2/24/2017 | |||
Investment commitment | $ 8,056 | |||
Development property investments, Fair Value | 3,335 | |||
Development Property Investments [Member] | Orlando 3 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 3,144 | |||
Development Property Investments [Member] | Orlando 3 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 4,912 | |||
Development Property Investments [Member] | New Orleans [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 2/24/2017 | |||
Investment commitment | $ 12,549 | |||
Development property investments, Fair Value | 553 | |||
Development Property Investments [Member] | New Orleans [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 677 | |||
Development Property Investments [Member] | New Orleans [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 11,872 | |||
Development Property Investments [Member] | Atlanta 5 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 2/27/2017 | |||
Investment commitment | $ 17,492 | |||
Development property investments, Fair Value | 4,739 | |||
Development Property Investments [Member] | Atlanta 5 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 4,971 | |||
Development Property Investments [Member] | Atlanta 5 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 12,521 | |||
Development Property Investments [Member] | Fort Lauderdale [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 3/1/2017 | |||
Investment commitment | $ 9,952 | |||
Development property investments, Fair Value | 1,043 | |||
Development Property Investments [Member] | Fort Lauderdale [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 1,128 | |||
Development Property Investments [Member] | Fort Lauderdale [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 8,824 | |||
Development Property Investments [Member] | Houston [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 3/1/2017 | |||
Investment commitment | $ 13,630 | |||
Development property investments, Fair Value | 3,547 | |||
Development Property Investments [Member] | Houston [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 3,633 | |||
Development Property Investments [Member] | Houston [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 9,997 | |||
Development Property Investments [Member] | Louisville 1 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 4/14/2017 | |||
Investment commitment | $ 8,523 | |||
Development property investments, Fair Value | 3,083 | |||
Development Property Investments [Member] | Louisville 1 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 2,932 | |||
Development Property Investments [Member] | Louisville 1 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 5,591 | |||
Development Property Investments [Member] | Denver 1 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 4/20/2017 | |||
Investment commitment | $ 9,806 | |||
Development property investments, Fair Value | 1,849 | |||
Development Property Investments [Member] | Denver 1 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 1,940 | |||
Development Property Investments [Member] | Denver 1 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 7,866 | |||
Development Property Investments [Member] | Denver 2 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 4/20/2017 | |||
Investment commitment | $ 11,164 | |||
Development property investments, Fair Value | 5,849 | |||
Development Property Investments [Member] | Denver 2 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 5,442 | |||
Development Property Investments [Member] | Denver 2 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 5,722 | |||
Development Property Investments [Member] | Atlanta 6 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 5/2/2017 | |||
Investment commitment | $ 12,543 | |||
Development property investments, Fair Value | 4,262 | |||
Development Property Investments [Member] | Atlanta 6 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 4,344 | |||
Development Property Investments [Member] | Atlanta 6 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 8,199 | |||
Development Property Investments [Member] | Tampa 2 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 5/2/2017 | |||
Investment commitment | $ 8,091 | |||
Development property investments, Fair Value | 1,010 | |||
Development Property Investments [Member] | Tampa 2 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 1,086 | |||
Development Property Investments [Member] | Tampa 2 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 7,005 | |||
Development Property Investments [Member] | Tampa 3 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 5/19/2017 | |||
Investment commitment | $ 9,224 | |||
Development property investments, Fair Value | 1,335 | |||
Development Property Investments [Member] | Tampa 3 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 1,422 | |||
Development Property Investments [Member] | Tampa 3 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 7,802 | |||
Development Property Investments [Member] | Tampa 4 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 6/12/2017 | |||
Investment commitment | $ 10,266 | |||
Development property investments, Fair Value | 1,752 | |||
Development Property Investments [Member] | Tampa 4 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 1,847 | |||
Development Property Investments [Member] | Tampa 4 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 8,419 | |||
Development Property Investments [Member] | West Palm Beach [Member] | Construction Loans [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 8/5/2015 | |||
Investment commitment | $ 7,500 | |||
Development property investments, Fair Value | 6,702 | |||
Development Property Investments [Member] | West Palm Beach [Member] | Construction Loans [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 6,712 | |||
Development Property Investments [Member] | West Palm Beach [Member] | Construction Loans [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 788 | |||
Development Property Investments [Member] | Sarasota [Member] | Construction Loans [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 8/5/2015 | |||
Investment commitment | $ 4,792 | |||
Development property investments, Fair Value | 3,473 | |||
Development Property Investments [Member] | Sarasota [Member] | Construction Loans [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 3,485 | |||
Development Property Investments [Member] | Sarasota [Member] | Construction Loans [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 1,307 | |||
Development Property Investments [Member] | Baltimore [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 6/19/2017 | |||
Investment commitment | $ 10,775 | |||
Development property investments, Fair Value | 3,115 | |||
Development Property Investments [Member] | Baltimore [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 3,315 | |||
Development Property Investments [Member] | Baltimore [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 7,460 | |||
Development Property Investments [Member] | Knoxville [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 6/28/2017 | |||
Investment commitment | $ 9,115 | |||
Development property investments, Fair Value | 1,265 | |||
Development Property Investments [Member] | Knoxville [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 1,351 | |||
Development Property Investments [Member] | Knoxville [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 7,764 | |||
Development Property Investments [Member] | Boston 1 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 6/29/2017 | |||
Investment commitment | $ 14,103 | |||
Development property investments, Fair Value | 4,914 | |||
Development Property Investments [Member] | Boston 1 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 4,978 | |||
Development Property Investments [Member] | Boston 1 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 9,125 | |||
Development Property Investments [Member] | New York City 2 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 6/30/2017 | |||
Investment commitment | $ 26,482 | |||
Development property investments, Fair Value | 17,576 | |||
Development Property Investments [Member] | New York City 2 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 18,042 | |||
Development Property Investments [Member] | New York City 2 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 8,440 | |||
Development Property Investments [Member] | Jacksonville 3 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 7/27/2017 | |||
Investment commitment | $ 8,096 | |||
Development property investments, Fair Value | 1,053 | |||
Development Property Investments [Member] | Jacksonville 3 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 1,134 | |||
Development Property Investments [Member] | Jacksonville 3 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 6,962 | |||
Development Property Investments [Member] | Orlando 4 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 8/30/2017 | |||
Investment commitment | $ 9,037 | |||
Development property investments, Fair Value | 1,960 | |||
Development Property Investments [Member] | Orlando 4 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 2,059 | |||
Development Property Investments [Member] | Orlando 4 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 6,978 | |||
Development Property Investments [Member] | Los Angeles [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 9/14/2017 | |||
Investment commitment | $ 28,750 | |||
Development property investments, Fair Value | 7,398 | |||
Development Property Investments [Member] | Los Angeles [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 7,533 | |||
Development Property Investments [Member] | Los Angeles [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 21,217 | |||
Development Property Investments [Member] | Miami 1 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 9/14/2017 | |||
Investment commitment | $ 14,657 | |||
Development property investments, Fair Value | 5,725 | |||
Development Property Investments [Member] | Miami 1 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 5,862 | |||
Development Property Investments [Member] | Miami 1 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 8,795 | |||
Development Property Investments [Member] | Louisville 2 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 9/28/2017 | |||
Investment commitment | $ 9,940 | |||
Development property investments, Fair Value | 1,762 | |||
Development Property Investments [Member] | Louisville 2 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 1,864 | |||
Development Property Investments [Member] | Louisville 2 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 8,076 | |||
Development Property Investments [Member] | Miami 2 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 10/12/2017 | |||
Investment commitment | $ 9,459 | |||
Development property investments, Fair Value | 820 | |||
Development Property Investments [Member] | Miami 2 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 1,014 | |||
Development Property Investments [Member] | Miami 2 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 8,445 | |||
Development Property Investments [Member] | New York City 3 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 10/30/2017 | |||
Investment commitment | $ 14,701 | |||
Development property investments, Fair Value | 2,294 | |||
Development Property Investments [Member] | New York City 3 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 2,595 | |||
Development Property Investments [Member] | New York City 3 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 12,106 | |||
Development Property Investments [Member] | Miami 3 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 11/16/2017 | |||
Investment commitment | $ 20,168 | |||
Development property investments, Fair Value | 3,099 | |||
Development Property Investments [Member] | Miami 3 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 3,508 | |||
Development Property Investments [Member] | Miami 3 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 16,660 | |||
Development Property Investments [Member] | Minneapolis [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 11/21/2017 | |||
Investment commitment | $ 12,674 | |||
Development property investments, Fair Value | 1,023 | |||
Development Property Investments [Member] | Minneapolis [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 1,150 | |||
Development Property Investments [Member] | Minneapolis [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 11,524 | |||
Development Property Investments [Member] | Boston 2 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 12/1/2017 | |||
Investment commitment | $ 8,771 | |||
Development property investments, Fair Value | 1,220 | |||
Development Property Investments [Member] | Boston 2 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 1,306 | |||
Development Property Investments [Member] | Boston 2 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 7,465 | |||
Development Property Investments [Member] | Miami [Member] | Construction Loans [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 12/23/2015 | 12/23/2015 | ||
Investment commitment | $ 17,733 | $ 17,733 | ||
Development property investments, Fair Value | 12,373 | 6,264 | ||
Development Property Investments [Member] | Miami [Member] | Construction Loans [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 12,492 | 6,517 | ||
Development Property Investments [Member] | Miami [Member] | Construction Loans [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 5,241 | 11,216 | ||
Development Property Investments [Member] | New York City 4 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 12/15/2017 | |||
Investment commitment | $ 10,591 | |||
Development property investments, Fair Value | 823 | |||
Development Property Investments [Member] | New York City 4 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 927 | |||
Development Property Investments [Member] | New York City 4 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 9,664 | |||
Development Property Investments [Member] | Boston 3 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 12/27/2017 | |||
Investment commitment | $ 10,174 | |||
Development property investments, Fair Value | 2,169 | |||
Development Property Investments [Member] | Boston 3 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 2,259 | |||
Development Property Investments [Member] | Boston 3 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 7,915 | |||
Development Property Investments [Member] | New York City 5 [Member] | Loan Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 12/28/2017 | |||
Investment commitment | $ 16,073 | |||
Development property investments, Fair Value | 4,178 | |||
Development Property Investments [Member] | New York City 5 [Member] | Loan Investments [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 4,303 | |||
Development Property Investments [Member] | New York City 5 [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | 11,770 | |||
Operating Property Loans [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | 5,982 | 9,992 | ||
Operating property loans, Fair Value | 5,938 | 9,905 | ||
Operating Property Loans [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 5,980 | 9,990 | ||
Operating Property Loans [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 2 | $ 2 | ||
Operating Property Loans [Member] | New Orleans [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 6/19/2015 | |||
Investment commitment | $ 2,800 | |||
Operating property loans, Fair Value | 2,768 | |||
Operating Property Loans [Member] | New Orleans [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | $ 2,800 | |||
Operating Property Loans [Member] | Newark [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 7/7/2015 | 7/7/2015 | ||
Investment commitment | $ 3,480 | $ 3,480 | ||
Operating property loans, Fair Value | 3,447 | 3,441 | ||
Operating Property Loans [Member] | Newark [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | $ 3,480 | $ 3,480 | ||
Operating Property Loans [Member] | Nashville [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 10/30/2015 | |||
Investment commitment | $ 1,210 | |||
Operating property loans, Fair Value | 1,204 | |||
Operating Property Loans [Member] | Nashville [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | $ 1,210 | |||
Operating Property Loans [Member] | Chicago [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment closing date | 12/22/2015 | 12/22/2015 | ||
Investment commitment | $ 2,502 | $ 2,502 | ||
Operating property loans, Fair Value | 2,491 | 2,492 | ||
Operating Property Loans [Member] | Chicago [Member] | Funded Investment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Funded Investment | 2,500 | 2,500 | ||
Operating Property Loans [Member] | Chicago [Member] | Unfunded Commitment [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment commitment | $ 2 | $ 2 |
INVESTMENTS (Schedule of Change
INVESTMENTS (Schedule of Changes in Fair Value of Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
INVESTMENTS [Abstract] | ||
Funded principal | $ 213,069 | $ 86,905 |
Adjustments: | ||
Unamortized origination fees | (5,081) | (1,056) |
Change in fair value of investments | 26,267 | 19,242 |
Other | (84) | (84) |
Fair value of investments | $ 234,171 | $ 105,007 |
INVESTMENTS (Schedule of Cost B
INVESTMENTS (Schedule of Cost Basis of Real Estate Investment) (Details) $ in Thousands | Aug. 09, 2017USD ($) |
INVESTMENTS [Abstract] | |
Funded principal balance, net of unamortized origination fees | $ 9,139 |
Unrealized appreciation on investments | 3,780 |
Cash consideration paid | 2,856 |
Net property working capital acquired | 52 |
Total cost basis | $ 15,827 |
INVESTMENTS (Real Estate Invest
INVESTMENTS (Real Estate Investment, Impact in Consolidated Balance Sheet , Disclosure) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
INVESTMENTS [Abstract] | |
Cash and cash equivalents | $ 121 |
Prepaid Expense and Other Assets | 2 |
Land | 1,505 |
Building and improvements | 13,720 |
In-place leases | 602 |
Accumulated depreciation and amortization | (472) |
Self-storage real estate owned | 15,355 |
Accounts payable, accrued expenses and other liabilities | $ 67 |
INVESTMENTS (Real Estate Inve48
INVESTMENTS (Real Estate Investment, Impact in Consolidated Statement of Operations, Disclosure) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Schedule of Investments [Line Items] | |
Rental revenues | $ 530 |
Real Estate Investment [Member] | |
Schedule of Investments [Line Items] | |
Rental revenues | 530 |
Property operating expenses of real estate owned | (271) |
Depreciation expense | (472) |
Total expenses of real estate owned | $ (743) |
FAIR VALUE OF FINANCIAL INSTR49
FAIR VALUE OF FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Percentage of completion of construction | 100.00% | |
Percentage of construciton completion threshold percentage when most entrepreneurial profit is earned | 40.00% | |
Investment owned, unrecognized unrealized appreciation (depreciation), net | $ 26.3 | $ 19.2 |
Minimum [Member] | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Percentage of completion of construction | 40.00% | 40.00% |
Maximum [Member] | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Percentage of completion of construction | 100.00% |
FAIR VALUE OF FINANCIAL INSTR50
FAIR VALUE OF FINANCIAL INSTRUMENTS (Summary of Significant Unobservable Inputs Used) (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Percentage of completion of construction | 100.00% | |
Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Percentage of completion of construction | 40.00% | 40.00% |
Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Percentage of completion of construction | 100.00% | |
Weighted Average [Member] | Option pricing model [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Exit date | 3 years 1 month 13 days | |
Capitalization rate | 5.51% | |
Market yields/ discount rate | 8.51% | |
Loan Investments With Profits Interest [Member] | Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Percentage of completion of construction | 40.00% | |
Loan Investments With Profits Interest [Member] | Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Percentage of completion of construction | 100.00% | |
Development Property Investments [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Primary valuation techniques | Income approach analysis | Income approach analysis |
Development Property Investments [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Exit date | 29 days | 2 months 1 day |
Market yields/ discount rate | 7.83% | 7.23% |
Development Property Investments [Member] | Minimum [Member] | Option pricing model [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Capitalization rate | 5.25% | |
Development Property Investments [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Exit date | 6 years 8 months 16 days | 3 years 10 months 17 days |
Market yields/ discount rate | 10.62% | 9.28% |
Development Property Investments [Member] | Maximum [Member] | Option pricing model [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Capitalization rate | 5.50% | |
Development Property Investments [Member] | Weighted Average [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Exit date | 2 years 11 months 16 days | 1 year 9 months 22 days |
Market yields/ discount rate | 9.00% | 8.34% |
Development Property Investments [Member] | Loan Investments With Profits Interest [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Primary valuation techniques | Option pricing model | |
Development Property Investments [Member] | Loan Investments With Profits Interest [Member] | Option pricing model [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Primary valuation techniques | Option pricing model | |
Development Property Investments [Member] | Loan Investments With Profits Interest [Member] | Minimum [Member] | Option pricing model [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Volatility | 63.94% | 68.72% |
Exit date | 5 months 1 day | 1 year 5 months 1 day |
Capitalization rate | 5.50% | |
Market yields/ discount rate | 8.50% | 8.25% |
Development Property Investments [Member] | Loan Investments With Profits Interest [Member] | Maximum [Member] | Option pricing model [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Volatility | 94.03% | 73.46% |
Exit date | 6 years 8 months 16 days | 3 years 10 months 17 days |
Capitalization rate | 6.15% | |
Market yields/ discount rate | 9.15% | 8.50% |
Development Property Investments [Member] | Loan Investments With Profits Interest [Member] | Weighted Average [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Volatility | 74.08% | |
Development Property Investments [Member] | Loan Investments With Profits Interest [Member] | Weighted Average [Member] | Option pricing model [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Volatility | 73.17% | |
Exit date | 2 years 1 month 13 days | |
Capitalization rate | 5.47% | |
Market yields/ discount rate | 8.47% | |
Operating Property Loans [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Primary valuation techniques | Income approach analysis | Income approach analysis |
Operating Property Loans [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Exit date | 3 years 11 months 23 days | 4 years 6 months |
Market yields/ discount rate | 6.08% | 6.09% |
Operating Property Loans [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Exit date | 4 years 7 months 24 days | 5 years 7 months 28 days |
Market yields/ discount rate | 7.01% | 7.20% |
Operating Property Loans [Member] | Weighted Average [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Exit date | 4 years 4 months 13 days | 5 years 26 days |
Market yields/ discount rate | 6.47% | 6.73% |
FAIR VALUE OF FINANCIAL INSTR51
FAIR VALUE OF FINANCIAL INSTRUMENTS (Schedule of Change in Fair Value of Investments Due to Change in Market Yield Discount Rates) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Up 25 Basis Points [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Increase (decrease) in fair value of investments | $ (1.2) | $ (0.3) |
Down 25 Basis Points [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Increase (decrease) in fair value of investments | $ 1.2 | $ 0.3 |
FAIR VALUE OF FINANCIAL INSTR52
FAIR VALUE OF FINANCIAL INSTRUMENTS (Schedule of Change in Fair Value of Investments Due to Change in Capitalization Rates) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Up 25 Basis Points [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Increase (decrease) in fair value of investments | $ (2.8) | $ (2.1) |
Down 25 Basis Points [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Increase (decrease) in fair value of investments | 3.1 | 2.3 |
Up 50 basis points [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Increase (decrease) in fair value of investments | (5.3) | (3.8) |
Down 50 Basis Points [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Increase (decrease) in fair value of investments | $ 6.4 | $ 4.6 |
FAIR VALUE OF FINANCIAL INSTR53
FAIR VALUE OF FINANCIAL INSTRUMENTS (Changes in Investments that Use Level 3 Inputs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net unrealized gains | $ 10,804 | $ 18,370 | $ 872 |
Fundings of principal and change in unamortized origination fees | 150,217 | ||
Repayments of loans | (37,545) | ||
Payment-in-kind interest | 8,575 | ||
Reclassification of self-storage real estate owned | (12,919) | ||
Fair Value, Inputs, Level 3 [Member] | |||
Balance as of beginning of period | 105,007 | 59,822 | |
Net unrealized gains | 10,804 | 18,370 | |
Fundings of principal and change in unamortized origination fees | 150,217 | 45,689 | |
Repayments of loans | (27,513) | (15,037) | |
Payment-in-kind interest | 8,575 | 3,856 | |
Contribution of assets to SL1 Venture (see Note 5, Investment in Real Estate Venture) | (7,693) | ||
Reclassification of self-storage real estate owned | (12,919) | ||
Balance at end of period | $ 234,171 | $ 105,007 | $ 59,822 |
INVESTMENT IN REAL ESTATE VEN54
INVESTMENT IN REAL ESTATE VENTURE (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | Mar. 07, 2016 | |
Investment In Real Estate Venture [Line Items] | |||||
Investment in and advances to real estate venture | $ 13,856 | $ 5,373 | |||
Transaction and other expenses | 2,100 | $ 300 | |||
Funded principal | 213,069 | 86,905 | |||
Return of capital from unconsolidated real estate venture | 7,291 | ||||
SL1 Venture [Member] | |||||
Investment In Real Estate Venture [Line Items] | |||||
Investment in and advances to real estate venture | 81,400 | $ 12,200 | |||
Equity method investment, ownership percentage | 10.00% | ||||
Investment owned, aggregate commited principal amount | 123,300 | ||||
Development property investment, assets | 103,700 | 28,700 | |||
Development property investment, liabilities | 3,300 | 2,400 | |||
Development property investment, operating income (loss) | 18,700 | 1,100 | |||
Transaction and other expenses | $ 200 | 200 | |||
Investment yield percentage on purchase price | 4.50% | ||||
Investments in joint venture, distribution terms | 1% of the committed principal amount of loans made by the SL1 Venture, exclusive of the loans contributed to the SL1 Venture by the Company. Operating cash flow of the SL1 Venture (after debt service, reserves and the foregoing priority distributions) will be distributed in accordance with capital commitments. Residual cash flow from capital and other events (after debt service, reserves and priority distributions) will be distributed (i) pro rata in accordance with capital commitments (its "Percentage Interest") until each member has received a return of all capital contributed; (ii) pro rata in accordance with each member's Percentage Interest until Heitman has achieved a 14% internal rate of return; (iii) to Heitman in an amount equal to its Percentage Interest less 10% and to the Company in an amount equal to the Company's Percentage Interest plus 10% until Heitman has achieved a 17% internal rate of return; (iv) to Heitman in an amount equal to its Percentage Interest less 20% and to the Company in an amount equal to the Company's Percentage Interest plus 20% until Heitman has achieved a 20% internal rate of return; and (v) any excess to Heitman in an amount equal to its Percentage Interest less 30% and to the Company in an amount equal to the Company's Percentage Interest plus 30%. However, the Company will not be entitled to any such promoted interest prior to the earlier to occur of the third anniversary of the JV Agreement and Heitman receiving distributions to the extent necessary to provide Heitman with a 1.48 multiple on its contributed capital. | ||||
Joint venture agreement percentage of priority distribution percentage of commited principal amount | 1.00% | ||||
Return of capital from unconsolidated real estate venture | 7,300 | ||||
Agreement metric, return multiple | 1.48 | ||||
SL1 Venture [Member] | Parent Company [Member] | |||||
Investment In Real Estate Venture [Line Items] | |||||
Investment in and advances to real estate venture | $ 12,300 | ||||
Equity method investment, ownership percentage | 10.00% | ||||
Investment owned, aggregate commited principal amount | $ 41,900 | ||||
Development property investment, operating income (loss) | $ 2,300 | 1,200 | |||
Development property investments, fair value | 7,700 | ||||
Funded principal | $ 8,100 | ||||
IRR Threshold One [Member] | |||||
Investment In Real Estate Venture [Line Items] | |||||
Agreement metric, internal rate of return | 14.00% | ||||
Agreement metric, capital distribution percentage to third party | 10.00% | ||||
Agreement metric, capital distribution percentage | 10.00% | ||||
IRR Threshold Two [Member] | |||||
Investment In Real Estate Venture [Line Items] | |||||
Agreement metric, internal rate of return | 17.00% | ||||
Agreement metric, capital distribution percentage to third party | 20.00% | ||||
Agreement metric, capital distribution percentage | 20.00% | ||||
IRR Threshold Three [Member] | |||||
Investment In Real Estate Venture [Line Items] | |||||
Agreement metric, internal rate of return | 20.00% | ||||
Agreement metric, capital distribution percentage to third party | 30.00% | ||||
Agreement metric, capital distribution percentage | 30.00% | ||||
Heitman And Large Institutional Co-Investor [Member] | SL1 Venture [Member] | |||||
Investment In Real Estate Venture [Line Items] | |||||
Investment in and advances to real estate venture | $ 111,000 | $ 110,000 | |||
Equity method investment, ownership percentage | 90.00% | 90.00% | |||
Transaction and other expenses | $ 3,200 | 2,300 | |||
HVP III Storage Lenders Investor, LLC [Member] | SL1 Venture [Member] | |||||
Investment In Real Estate Venture [Line Items] | |||||
Development property investment, operating income (loss) | $ (16,400) | 100 | |||
Payment to acquire interest in joint venture | $ 7,300 |
INVESTMENT IN REAL ESTATE VEN55
INVESTMENT IN REAL ESTATE VENTURE (Equity Method Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Real Estate Properties [Line Items] | ||
Investment commitment | $ 523,821 | $ 141,857 |
Funded Investment | 213,069 | 86,905 |
Development property investments, Fair Value | $ 228,233 | $ 95,102 |
Percentage of completion of construction | 100.00% | |
Minimum [Member] | ||
Real Estate Properties [Line Items] | ||
Percentage of completion of construction | 40.00% | 40.00% |
Funded Investment [Member] | ||
Real Estate Properties [Line Items] | ||
Funded Investment | $ 213,069 | $ 86,905 |
Unfunded Commitment [Member] | ||
Real Estate Properties [Line Items] | ||
Investment commitment | 310,752 | $ 54,952 |
SL1 Venture [Member] | ||
Real Estate Properties [Line Items] | ||
Investment commitment | 12,300 | |
SL1 Venture [Member] | Loan Investments [Member] | ||
Real Estate Properties [Line Items] | ||
Investment commitment | 123,273 | |
Development property investments, Fair Value | $ 103,453 | |
SL1 Venture [Member] | Loan Investments [Member] | Miami 1 [Member] | ||
Real Estate Properties [Line Items] | ||
Investment Closing Date | 5/14/2015 | |
Investment commitment | $ 13,867 | |
Development property investments, Fair Value | $ 11,950 | |
SL1 Venture [Member] | Loan Investments [Member] | Miami 2 [Member] | ||
Real Estate Properties [Line Items] | ||
Investment Closing Date | 5/14/2015 | |
Investment commitment | $ 14,849 | |
Development property investments, Fair Value | $ 10,945 | |
SL1 Venture [Member] | Loan Investments [Member] | Fort Lauderdale [Member] | ||
Real Estate Properties [Line Items] | ||
Investment Closing Date | 9/25/2015 | |
Investment commitment | $ 13,230 | |
Development property investments, Fair Value | $ 10,216 | |
SL1 Venture [Member] | Loan Investments [Member] | Washington DC [Member] | ||
Real Estate Properties [Line Items] | ||
Investment Closing Date | 4/15/2016 | |
Investment commitment | $ 17,269 | |
Development property investments, Fair Value | $ 17,600 | |
SL1 Venture [Member] | Loan Investments [Member] | Atlanta 1 [Member] | ||
Real Estate Properties [Line Items] | ||
Investment Closing Date | 4/29/2016 | |
Investment commitment | $ 10,223 | |
Development property investments, Fair Value | $ 7,778 | |
SL1 Venture [Member] | Loan Investments [Member] | Jacksonville [Member] | ||
Real Estate Properties [Line Items] | ||
Investment Closing Date | 7/19/2016 | |
Investment commitment | $ 8,127 | |
Development property investments, Fair Value | $ 10,895 | |
SL1 Venture [Member] | Loan Investments [Member] | New Jersey [Member] | ||
Real Estate Properties [Line Items] | ||
Investment Closing Date | 7/21/2016 | |
Investment commitment | $ 7,828 | |
Development property investments, Fair Value | $ 1,908 | |
SL1 Venture [Member] | Loan Investments [Member] | Atlanta 2 [Member] | ||
Real Estate Properties [Line Items] | ||
Investment Closing Date | 8/15/2016 | |
Investment commitment | $ 8,772 | |
Development property investments, Fair Value | $ 8,435 | |
SL1 Venture [Member] | Loan Investments [Member] | Denver [Member] | ||
Real Estate Properties [Line Items] | ||
Investment Closing Date | 8/25/2016 | |
Investment commitment | $ 11,032 | |
Development property investments, Fair Value | $ 10,280 | |
SL1 Venture [Member] | Loan Investments [Member] | Columbia [Member] | ||
Real Estate Properties [Line Items] | ||
Investment Closing Date | 9/28/2016 | |
Investment commitment | $ 9,199 | |
Development property investments, Fair Value | $ 8,843 | |
SL1 Venture [Member] | Loan Investments [Member] | Raleigh [Member] | ||
Real Estate Properties [Line Items] | ||
Investment Closing Date | 12/22/2016 | |
Investment commitment | $ 8,877 | |
Development property investments, Fair Value | 4,603 | |
SL1 Venture [Member] | Loan Investments [Member] | Funded Investment [Member] | ||
Real Estate Properties [Line Items] | ||
Funded Investment | 89,641 | |
SL1 Venture [Member] | Loan Investments [Member] | Funded Investment [Member] | Miami 1 [Member] | ||
Real Estate Properties [Line Items] | ||
Funded Investment | 10,348 | |
SL1 Venture [Member] | Loan Investments [Member] | Funded Investment [Member] | Miami 2 [Member] | ||
Real Estate Properties [Line Items] | ||
Funded Investment | 10,187 | |
SL1 Venture [Member] | Loan Investments [Member] | Funded Investment [Member] | Fort Lauderdale [Member] | ||
Real Estate Properties [Line Items] | ||
Funded Investment | 8,955 | |
SL1 Venture [Member] | Loan Investments [Member] | Funded Investment [Member] | Washington DC [Member] | ||
Real Estate Properties [Line Items] | ||
Funded Investment | 15,698 | |
SL1 Venture [Member] | Loan Investments [Member] | Funded Investment [Member] | Atlanta 1 [Member] | ||
Real Estate Properties [Line Items] | ||
Funded Investment | 7,093 | |
SL1 Venture [Member] | Loan Investments [Member] | Funded Investment [Member] | Jacksonville [Member] | ||
Real Estate Properties [Line Items] | ||
Funded Investment | 7,131 | |
SL1 Venture [Member] | Loan Investments [Member] | Funded Investment [Member] | New Jersey [Member] | ||
Real Estate Properties [Line Items] | ||
Funded Investment | 1,967 | |
SL1 Venture [Member] | Loan Investments [Member] | Funded Investment [Member] | Atlanta 2 [Member] | ||
Real Estate Properties [Line Items] | ||
Funded Investment | 7,367 | |
SL1 Venture [Member] | Loan Investments [Member] | Funded Investment [Member] | Denver [Member] | ||
Real Estate Properties [Line Items] | ||
Funded Investment | 8,690 | |
SL1 Venture [Member] | Loan Investments [Member] | Funded Investment [Member] | Columbia [Member] | ||
Real Estate Properties [Line Items] | ||
Funded Investment | 7,925 | |
SL1 Venture [Member] | Loan Investments [Member] | Funded Investment [Member] | Raleigh [Member] | ||
Real Estate Properties [Line Items] | ||
Funded Investment | 4,280 | |
SL1 Venture [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | ||
Real Estate Properties [Line Items] | ||
Investment commitment | 33,632 | |
SL1 Venture [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | Miami 1 [Member] | ||
Real Estate Properties [Line Items] | ||
Investment commitment | 3,519 | |
SL1 Venture [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | Miami 2 [Member] | ||
Real Estate Properties [Line Items] | ||
Investment commitment | 4,662 | |
SL1 Venture [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | Fort Lauderdale [Member] | ||
Real Estate Properties [Line Items] | ||
Investment commitment | 4,275 | |
SL1 Venture [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | Washington DC [Member] | ||
Real Estate Properties [Line Items] | ||
Investment commitment | 1,571 | |
SL1 Venture [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | Atlanta 1 [Member] | ||
Real Estate Properties [Line Items] | ||
Investment commitment | 3,130 | |
SL1 Venture [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | Jacksonville [Member] | ||
Real Estate Properties [Line Items] | ||
Investment commitment | 996 | |
SL1 Venture [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | New Jersey [Member] | ||
Real Estate Properties [Line Items] | ||
Investment commitment | 5,861 | |
SL1 Venture [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | Atlanta 2 [Member] | ||
Real Estate Properties [Line Items] | ||
Investment commitment | 1,405 | |
SL1 Venture [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | Denver [Member] | ||
Real Estate Properties [Line Items] | ||
Investment commitment | 2,342 | |
SL1 Venture [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | Columbia [Member] | ||
Real Estate Properties [Line Items] | ||
Investment commitment | 1,274 | |
SL1 Venture [Member] | Loan Investments [Member] | Unfunded Commitment [Member] | Raleigh [Member] | ||
Real Estate Properties [Line Items] | ||
Investment commitment | $ 4,597 |
VARIABLE INTEREST ENTITIES (Nar
VARIABLE INTEREST ENTITIES (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | ||
Development property investments | $ 228,233 | $ 95,102 |
Investment commitment | 523,821 | 141,857 |
Investment in Real Estate Venture [Member] | ||
Variable Interest Entity [Line Items] | ||
Investment commitment | 3,400 | $ 9,400 |
SL1 Venture [Member] | ||
Variable Interest Entity [Line Items] | ||
Investment commitment | $ 12,300 |
VARIABLE INTEREST ENTITIES (Sch
VARIABLE INTEREST ENTITIES (Schedule of Variable Interest Entities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
VARIABLE INTEREST ENTITIES [Abstract] | ||
Assets recorded related to VIEs | $ 228,233 | $ 95,102 |
Unfunded loan commitments to VIEs | 310,750 | 54,950 |
Maximum exposure to loss | $ 538,983 | $ 150,052 |
OTHER LOANS, AT COST (Narrative
OTHER LOANS, AT COST (Narrative) (Details) - USD ($) $ in Thousands | Jul. 26, 2017 | Jul. 25, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Repayments of lines of credit | $ 20,000 | |||
Proceeds from lines of credit | $ 20,000 | |||
Six Revolving Loan Agreements [Member] | ||||
Loans outstanding | $ 1,700 | |||
Nine Revolving Loan Agreements [Member] | ||||
Proceeds from loans | $ 3,700 | |||
Payments for loans | $ 3,000 | |||
Minimum [Member] | Loans Receivable [Member] | ||||
Interest rate on committed loans | 6.90% | |||
Maximum [Member] | Loans Receivable [Member] | ||||
Interest rate on committed loans | 7.00% | |||
Line of Credit [Member] | Seven Bridge Loans [Member] | ||||
Proceeds from loans | $ 17,400 | |||
Line of Credit [Member] | Two Bridge Loans [Member] | ||||
Loans outstanding | 7,300 | |||
Credit Facility [Member] | ||||
Committed funds for loans maximum borrowing capacity | 4,400 | |||
Credit facility, borrowing capacity | 40,800 | |||
Credit Facility [Member] | Nine Revolving Loan Agreements [Member] | ||||
Loans outstanding | 1,000 | |||
Credit Facility [Member] | Agreement One [Member] | ||||
Committed funds for loans maximum borrowing capacity | 500 | |||
Credit Facility [Member] | Agreement Two [Member] | ||||
Committed funds for loans maximum borrowing capacity | 500 | |||
Credit Facility [Member] | Agreement Three [Member] | ||||
Committed funds for loans maximum borrowing capacity | 500 | |||
Credit Facility [Member] | Agreement Four [Member] | ||||
Committed funds for loans maximum borrowing capacity | 500 | |||
Credit Facility [Member] | Agreement Five [Member] | ||||
Committed funds for loans maximum borrowing capacity | 100 | |||
Credit Facility [Member] | Agreement Six [Member] | ||||
Committed funds for loans maximum borrowing capacity | 250 | |||
Credit Facility [Member] | Agreement Seven [Member] | ||||
Committed funds for loans maximum borrowing capacity | 350 | |||
Credit Facility [Member] | Agreement Eight [Member] | ||||
Committed funds for loans maximum borrowing capacity | 700 | |||
Credit Facility [Member] | Agreement Nine [Member] | ||||
Committed funds for loans maximum borrowing capacity | $ 1,000 | |||
Secured Debt [Member] | Five Bridge Loans [Member] | ||||
Loans outstanding | $ 10,100 |
DEBT (Credit Facility) (Narrati
DEBT (Credit Facility) (Narrative) (Details) $ in Millions | Jul. 26, 2017USD ($) | Jul. 25, 2017USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018 | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Jul. 24, 2020 |
Line of Credit Facility [Line Items] | |||||||
Proceeds from lines of credit | $ 20 | ||||||
Line of credit, current borrowing capacity | $ 33.3 | 33.3 | |||||
Repayments of lines of credit | $ 20 | ||||||
KeyBank National Association [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit, current borrowing capacity | 100 | ||||||
Commitment by bank | $ 200 | ||||||
Debt maturity date | Jul. 24, 2020 | ||||||
Company loans secured by mortgage loans borrowing base availability maximum percentage | 60.00% | ||||||
Company loans secured by mortgage loans underlying real estate fair value minimum percentage to maximum principal amount borrowed | 50.00% | ||||||
Mortgage loans minimal months inclusion in borrowing base period | 18 months | ||||||
Debt instrument convenant related to debt service amount, ratio | 1.30 | ||||||
Company loans secured by self-storage properties underlying real estate fair value minimum percentage to maximum principal amount borrowed | 65.00% | ||||||
Debt instrument convenant related to debt service coverage amount ratio | 1.30 | ||||||
Debt instrument per diem fee rate percentage | 0.35% | ||||||
Debt instrument covenant total consoildated indebtness maximum percentage of gross asset value | 50 | ||||||
Debt instrument covenants consolidated tanible net worth, minimum | $ 183.3 | ||||||
Debt instrument covenants any additional net offering proceeds percentage included in consolidated tangible net worth | 75.00% | ||||||
Debt instrument covenants threshold amount that limits unhedged variable rate | $ 50 | ||||||
Debt instrument covenants unhedged variable rate maximum percentage | 25.00% | ||||||
Debt instrument covenant debt service coverage ratio | 2 | ||||||
Long-term line of credit, remaining borrowing capacity | $ 34.2 | ||||||
Line of credit facility, covenant compliance | As of December 31, 2017, the Company was in compliance with all of its financial covenants and it anticipates being in compliance with all of its financial covenants throughout the term of the Credit Facility. | ||||||
KeyBank National Association [Member] | Scenario, Plan [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument covenants minimum fixed coverage ratio | 0.90 | 0.75 | 1.20 | ||||
Debt instrument covenants liquidity minimal amount | $ 50 | $ 50 | |||||
Debt instrument covenant additional amount included onto total unfunded loan commitments | $ 25 | ||||||
Maximum [Member] | KeyBank National Association [Member] | Base Rate [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 2.75% | ||||||
Maximum [Member] | KeyBank National Association [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 3.75% | ||||||
Minimum [Member] | KeyBank National Association [Member] | Base Rate [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.75% | ||||||
Minimum [Member] | KeyBank National Association [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 2.75% |
DEBT (Senior Participations) (N
DEBT (Senior Participations) (Narrative) (Details) - USD ($) | Jan. 30, 2018 | Jul. 20, 2017 | Dec. 14, 2016 | Oct. 18, 2016 | Jul. 26, 2016 | May 27, 2016 | Apr. 29, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||||||||
Senior loan participations | $ 718,000 | $ 18,582,000 | |||||||
Senior loan participations | 1,755,000 | 21,845,000 | |||||||
Investment commitment | 523,821,000 | 141,857,000 | |||||||
Gain (loss) on debt modification | (232,000) | ||||||||
Development Property Investments [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Investment commitment | 517,839,000 | 131,865,000 | |||||||
Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount commited by the bank | 30,411,000 | ||||||||
Senior loan participations | 18,582,000 | ||||||||
Operating Property A Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior loan participations | 0 | ||||||||
Operating Property A Notes [Member] | Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior participants, face amount | $ 7,800,000 | ||||||||
Proceeds from issuance of senior long-term debt | $ 5,000,000 | ||||||||
Amount commited by the bank | $ 1,820,000 | ||||||||
Repurchase of senior participation | $ 3,400,000 | ||||||||
Prepayment penalty included in the repurchase amount | 100,000 | ||||||||
Debt instrument, effective interest rate | 4.47% | ||||||||
Debt maturity date | Apr. 1, 2019 | ||||||||
Minimum amount of cash required in dipository or money market accounts | $ 500,000 | ||||||||
Operating Property A Notes [Member] | Senior Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 3.85% | 3.85% | |||||||
Nashville, Tennessee MSA [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repurchase of senior participation | $ 1,800,000 | ||||||||
Prepayment penalty included in the repurchase amount | 18,000 | ||||||||
Nashville, Tennessee MSA [Member] | Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior loan participations | $ 5,200,000 | ||||||||
Miami MSA Note [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior loan participations | $ 700,000 | ||||||||
Miami MSA Note [Member] | Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount commited by the bank | 10,001,000 | $ 10,001,000 | |||||||
Senior loan participations | $ 718,000 | ||||||||
Cash consideration from senior participations | $ 10,000,000 | ||||||||
Debt instrument threshold amount outstanding related to senior notes. | 7,700,000 | ||||||||
Debt instrument, stated interest rate | 4.66% | ||||||||
Debt instrument, effective interest rate | 4.66% | 3.72% | |||||||
Debt maturity date | Jan. 31, 2018 | Jul. 1, 2017 | |||||||
Debt instrument fee, description | The Company also paid a loan fee of 100 basis points, or $0.1 million upon closing of the loan. | ||||||||
Miami MSA Note [Member] | Senior Notes [Member] | Subsequent Event [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt maturity date | Mar. 31, 2018 | ||||||||
Miami MSA Note [Member] | Senior Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 3.10% | 3.10% | |||||||
July 2016 A Notes [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Cash consideration from senior participations | $ 14,200,000 | ||||||||
July 2016 A Notes [Member] | Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount commited by the bank | $ 14,185,000 | ||||||||
Senior loan participations | 12,500,000 | ||||||||
Investment commitment | $ 21,800,000 | ||||||||
Mortgage loans on real estate, interest rate | 6.90% | ||||||||
Cash consideration from senior participations | $ 14,200,000 | ||||||||
Debt instrument, effective interest rate | 4.12% | ||||||||
Debt maturity date | Aug. 1, 2019 | ||||||||
July 2016 A Notes [Member] | Senior Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 3.50% | 3.50% | |||||||
New Orleans MSA [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior loan participations | $ 2,800,000 | ||||||||
October 2016 A Note [Member] | Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount commited by the bank | $ 4,405,000 | ||||||||
Senior loan participations | $ 3,400,000 | ||||||||
Investment commitment | $ 6,800,000 | ||||||||
Mortgage loans on real estate, interest rate | 6.90% | ||||||||
Cash consideration from senior participations | $ 4,400,000 | ||||||||
Debt instrument, basis spread on variable rate | 3.50% | ||||||||
Debt instrument, effective interest rate | 4.12% | ||||||||
Debt maturity date | Sep. 1, 2021 | ||||||||
October 2016 A Note [Member] | Senior Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 3.50% | ||||||||
Construction Loans [Member] | Development Property Investments [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Investment commitment | $ 17,733,000 | $ 30,025,000 | |||||||
Mortgage loans on real estate, interest rate | 6.90% | ||||||||
Construction Loans [Member] | Miami MSA Note [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Investment commitment | $ 17,700,000 |
DEBT (Commitments and Outstandi
DEBT (Commitments and Outstanding Balances of Senior Participations) (Details) - USD ($) $ in Thousands | Jan. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 18, 2016 | Jul. 26, 2016 |
Debt Instrument [Line Items] | |||||
Amount Borrowed | $ 732 | ||||
Net balance | 718 | $ 18,582 | |||
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Commitment by Bank | 30,411 | ||||
Amount Borrowed | 18,615 | ||||
Remaining Funds | 11,796 | ||||
Unamortized Fees | (33) | ||||
Net balance | 18,582 | ||||
Operating Property A Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Net balance | $ 0 | ||||
Operating Property A Notes [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Commitment by Bank | 1,820 | ||||
Amount Borrowed | $ 1,820 | ||||
Effective Interest Rate | 4.47% | ||||
Maturity Date | Apr. 1, 2019 | ||||
Operating Property A Notes [Member] | Senior Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate in addition to 30-day LIBOR | 3.85% | 3.85% | |||
Miami MSA Note [Member] | |||||
Debt Instrument [Line Items] | |||||
Net balance | $ 700 | ||||
Miami MSA Note [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Commitment by Bank | 10,001 | $ 10,001 | |||
Amount Borrowed | 732 | ||||
Remaining Funds | $ 9,269 | $ 10,001 | |||
Effective Interest Rate | 4.66% | 3.72% | |||
Maturity Date | Jan. 31, 2018 | Jul. 1, 2017 | |||
Unamortized Fees | $ (14) | ||||
Net balance | $ 718 | ||||
Miami MSA Note [Member] | Senior Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate in addition to 30-day LIBOR | 3.10% | 3.10% | |||
July 2016 A Notes [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Commitment by Bank | $ 14,185 | ||||
Amount Borrowed | 13,420 | ||||
Remaining Funds | $ 765 | ||||
Effective Interest Rate | 4.12% | ||||
Maturity Date | Aug. 1, 2019 | ||||
Net balance | $ 12,500 | ||||
July 2016 A Notes [Member] | Senior Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate in addition to 30-day LIBOR | 3.50% | 3.50% | |||
October 2016 A Note [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Commitment by Bank | $ 4,405 | ||||
Amount Borrowed | 3,375 | ||||
Remaining Funds | $ 1,030 | ||||
Interest Rate in addition to 30-day LIBOR | 3.50% | ||||
Effective Interest Rate | 4.12% | ||||
Maturity Date | Sep. 1, 2021 | ||||
Net balance | $ 3,400 | ||||
October 2016 A Note [Member] | Senior Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate in addition to 30-day LIBOR | 3.50% | ||||
Subsequent Event [Member] | Miami MSA Note [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity Date | Mar. 31, 2018 |
STOCKHOLDERS' EQUITY (Narrative
STOCKHOLDERS' EQUITY (Narrative) (Details) | Nov. 01, 2017$ / shares | Aug. 01, 2017$ / shares | Jun. 27, 2017USD ($)shares | May 03, 2017$ / sharesshares | Mar. 07, 2017$ / shares | Dec. 29, 2016$ / shares | Dec. 13, 2016USD ($)shares | Nov. 02, 2016$ / shares | Sep. 02, 2016$ / shares | Jul. 27, 2016USD ($)$ / shares | May 20, 2016USD ($)$ / sharesshares | Mar. 10, 2016$ / shares | Jun. 15, 2015shares | Apr. 09, 2015USD ($)shares | Apr. 01, 2015USD ($)shares | Apr. 01, 2015shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2020shares | Dec. 31, 2019shares | Dec. 31, 2018shares | Apr. 30, 2015shares |
Class of Stock [Line Items] | |||||||||||||||||||||||
Common stock, shares issued | 14,429,055 | 8,956,354 | |||||||||||||||||||||
Common stock, shares outstanding | 14,429,055 | 8,956,354 | |||||||||||||||||||||
Nonvested restricted stock | 185,002 | 120,001 | |||||||||||||||||||||
Net proceeds from issuance of common stock | $ | $ 83,900,000 | $ 53,500,000 | $ 111,761,000 | $ 53,460,000 | $ 110,391,000 | ||||||||||||||||||
Issuance of shares, net of offering costs (in shares) | 4,025,000 | 2,996,311 | |||||||||||||||||||||
Stock price per share | $ / shares | $ 19.01 | $ 21.05 | $ 14.95 | ||||||||||||||||||||
Number of shares repurchased and retired | 1,000 | 213,078 | |||||||||||||||||||||
Retirement of common stock | $ | $ 3,200,000 | $ 3,152,000 | $ 1,000 | ||||||||||||||||||||
Stock repurchase program, remaining authorized amount | $ | $ 6,800,000 | ||||||||||||||||||||||
Share based compensation expense, period for recognition | 2 years 3 months 18 days | ||||||||||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||||||||||||||||||
Proceeds from issuance of preferred stock | $ | $ 29,964,000 | $ 9,448,000 | |||||||||||||||||||||
IPO [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Common stock, shares issued | 750,000 | 5,000,000 | 5,000,000 | ||||||||||||||||||||
Net proceeds from issuance of common stock | $ | $ 14,000,000 | $ 93,000,000 | |||||||||||||||||||||
Private Placement [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Common stock, shares issued | 250,000 | 250,000 | |||||||||||||||||||||
Net proceeds from issuance of common stock | $ | $ 5,000,000 | ||||||||||||||||||||||
Common Stock Class [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Dividends declared date | Nov. 1, 2017 | Aug. 1, 2017 | May 3, 2017 | Mar. 7, 2017 | Nov. 2, 2016 | Sep. 2, 2016 | May 20, 2016 | Mar. 10, 2016 | |||||||||||||||
Dividend payable, amount per share | $ / shares | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.35 | |||||||||||||||
Dividends payable date | Jan. 12, 2018 | Oct. 13, 2017 | Jul. 14, 2017 | Apr. 14, 2017 | Jan. 13, 2017 | Oct. 14, 2016 | Jul. 15, 2016 | Apr. 15, 2016 | |||||||||||||||
Dividends payable, date of record | Jan. 2, 2018 | Oct. 2, 2017 | Jul. 3, 2017 | Apr. 3, 2017 | Jan. 3, 2017 | Oct. 1, 2016 | Jul. 1, 2016 | Apr. 1, 2016 | |||||||||||||||
Series A Preferred Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Preferred stock, shares issued | 40,000 | 10,000 | |||||||||||||||||||||
Preferred stock, shares outstanding | 40,000 | 10,000 | |||||||||||||||||||||
Value of shares to be issued prior to expiration of commitment period | $ | $ 50,000,000 | $ 50,000,000 | |||||||||||||||||||||
Percentage of increase in book value | 25.00% | ||||||||||||||||||||||
Internal rate of return to the preferred shareholders | 14.00% | ||||||||||||||||||||||
Amount of preferred shares issuable in future | $ | $ 100,000,000 | ||||||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||||||||||||||||||
Preferred stock, liquidation preferance per share | $ / shares | $ 1,000 | ||||||||||||||||||||||
Preferred stock, redemption tems | The Series A Preferred Stock may be redeemed at the Company's option (i) after five years from the Effective Date at a price equal to 105% of the Liquidation Value per share plus the value of all accumulated and unpaid Cash Distributions and Stock Dividends, and (ii) after six years from the Effective Date at a price equal to 100% of the Liquidation Value per share plus the value of all accumulated and unpaid Cash Distributions and Stock Dividends. In the event of certain change of control events affecting the Company prior to the third anniversary of the Effective Date, the Company must redeem all shares of Series A Preferred Stock for a price equal to (a) the Liquidation Value, plus (b) accumulated and unpaid Cash Distributions and Stock Dividends, plus (c) a make-whole premium designed to provide the holders of the Series A Preferred Stock with a return on the redeemed shares equal to a 14.0% internal rate of return through the third anniversary of the Effective Date. | ||||||||||||||||||||||
Debt instrument covenant debt to total intangible asset ratio | 0.4 | ||||||||||||||||||||||
Dividends declared date | Nov. 1, 2017 | Aug. 1, 2017 | May 3, 2017 | Mar. 7, 2017 | Dec. 29, 2016 | ||||||||||||||||||
Dividend payable, amount per share | $ / shares | $ 9.48 | $ 17.89 | $ 17.69 | $ 17.50 | $ 17.31 | ||||||||||||||||||
Dividends payable date | Jan. 12, 2018 | Oct. 13, 2017 | Jul. 14, 2017 | Apr. 14, 2017 | Jan. 13, 2017 | ||||||||||||||||||
Dividends payable, date of record | Jan. 1, 2018 | Oct. 1, 2017 | Jul. 1, 2017 | Apr. 1, 2017 | Jan. 1, 2017 | ||||||||||||||||||
Series A Preferred Stock [Member] | Stock Dividend [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Dividends declared date | Nov. 1, 2017 | Aug. 1, 2017 | May 3, 2017 | Mar. 7, 2017 | Dec. 29, 2016 | ||||||||||||||||||
Dividend payable, amount per share | $ / shares | $ 1.11 | $ 13.15 | $ 37.10 | $ 82.25 | |||||||||||||||||||
Dividends payable date | Jan. 12, 2018 | Oct. 13, 2017 | Apr. 15, 2017 | Feb. 15, 2017 | |||||||||||||||||||
Dividends payable, date of record | Jan. 1, 2018 | Oct. 1, 2017 | Jul. 1, 2017 | Apr. 1, 2017 | Jan. 1, 2017 | ||||||||||||||||||
Series A Preferred Stock [Member] | Monthly Increments [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Amount of preferred shares issuable in future | $ | $ 5,000,000 | ||||||||||||||||||||||
Series A Preferred Stock [Member] | Scenario, Plan [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Preferred stock forcasted dividend payable | $ | $ 2,125,000 | ||||||||||||||||||||||
Percentage of increase in book value | 25.00% | ||||||||||||||||||||||
Internal rate of return to the preferred shareholders | 14.00% | ||||||||||||||||||||||
Amount of preferred shares issuable in future | $ | 125,000,000 | ||||||||||||||||||||||
Series A Preferred Stock [Member] | Until Sixth Anniversary [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Preferred stock, dividend rate | 7.00% | ||||||||||||||||||||||
Series A Preferred Stock [Member] | After Sixth Anniversary [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Preferred stock, dividend rate | 8.50% | ||||||||||||||||||||||
Series A Preferred Stock [Member] | Occurrence of certain triggering events [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Preferred stock, dividend rate | 5.00% | ||||||||||||||||||||||
Maximum [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Stock repurchase program, authorized amount | $ | $ 10,000,000 | ||||||||||||||||||||||
Maximum [Member] | Series A Preferred Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Amount of preferred shares issuable in future | $ | 35,000,000 | ||||||||||||||||||||||
Minimum [Member] | Series A Preferred Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Amount of preferred shares issuable in future | $ | $ 15,000,000 | ||||||||||||||||||||||
Restricted Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Nonvested restricted stock | 185,002 | 120,001 | 162,500 | ||||||||||||||||||||
Number of shares granted | 111,414 | 14,340 | |||||||||||||||||||||
Number of shares, vested | 46,413 | 55,172 | |||||||||||||||||||||
Restricted stock expense, recognized | $ | $ 1,300,000 | $ 1,100,000 | $ 300,000 | ||||||||||||||||||||
Number of shares forfeited | 1,667 | ||||||||||||||||||||||
Unrecognized share based compensation expense | $ | $ 2,700,000 | $ 2,000,000 | $ 2,200,000 | ||||||||||||||||||||
Restricted Stock [Member] | Series A Preferred Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Issuances of stock-based awards (in shares) | 40,000 | ||||||||||||||||||||||
Proceeds from issuance of preferred stock | $ | $ 40,000,000 | ||||||||||||||||||||||
Equity Incentive Plan 2015 [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Shares reserved for future issuance | 200,000 | ||||||||||||||||||||||
Equity Incentive Plan 2015 [Member] | Restricted Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Number of shares granted | 14,340 | 10,000 | |||||||||||||||||||||
Equity Incentive Plan 2015 [Member] | Non Employee Director [Member] | Restricted Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Number of shares granted | 3,585 | 2,500 | |||||||||||||||||||||
Equity award vesting period | 3 years | ||||||||||||||||||||||
Equity Incentive Plan 2015 [Member] | Manager [Member] | Restricted Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Number of shares granted | 100,000 | 52,500 | |||||||||||||||||||||
Equity award vesting period | 5 years | 3 years | |||||||||||||||||||||
Amended and Restated 2015 Equity Incentive Plan [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Shares reserved for future issuance | 370,000 | ||||||||||||||||||||||
Number of shares increased (decreased) related to share base payment plan | 170,000 | ||||||||||||||||||||||
Number of shares granted | 6,414 | ||||||||||||||||||||||
Amended and Restated 2015 Equity Incentive Plan [Member] | Restricted Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Number of vested or expected to vest shares | 55,172 | ||||||||||||||||||||||
Number of shares granted | 288,254 | 176,840 | |||||||||||||||||||||
Number of shares forfeited | 1,667 | ||||||||||||||||||||||
Amended and Restated 2015 Equity Incentive Plan [Member] | Restricted Stock [Member] | Maximum [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Share based compensation expense, period for recognition | 5 years | ||||||||||||||||||||||
Amended and Restated 2015 Equity Incentive Plan [Member] | Restricted Stock [Member] | Minimum [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Share based compensation expense, period for recognition | 3 years | ||||||||||||||||||||||
Amended and Restated 2015 Equity Incentive Plan [Member] | Restricted Stock [Member] | Share-based Compensation Award, Tranche One [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Number of vested or expected to vest shares | 46,413 | ||||||||||||||||||||||
Amended and Restated 2015 Equity Incentive Plan [Member] | Restricted Stock [Member] | Share-based Compensation Award, Tranche Two [Member] | Scenario, Forecast [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Number of vested or expected to vest shares | 75,003 | ||||||||||||||||||||||
Amended and Restated 2015 Equity Incentive Plan [Member] | Restricted Stock [Member] | Share-based Compensation Award, Tranche Three [Member] | Scenario, Forecast [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Number of vested or expected to vest shares | 55,001 | ||||||||||||||||||||||
Amended and Restated 2015 Equity Incentive Plan [Member] | Restricted Stock [Member] | Share Based Compensation Award Tranche Four [Member] | Scenario, Forecast [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Number of vested or expected to vest shares | 54,998 | ||||||||||||||||||||||
Amended and Restated 2015 Equity Incentive Plan [Member] | Non Employee Director [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Number of shares granted | 2,138 | ||||||||||||||||||||||
Amended and Restated 2015 Equity Incentive Plan [Member] | Manager [Member] | Restricted Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Number of shares granted | 105,000 | ||||||||||||||||||||||
Equity award vesting period | 3 years | ||||||||||||||||||||||
ATM Program [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Net proceeds from issuance of common stock | $ | $ 27,800,000 | ||||||||||||||||||||||
Issuance of shares, net of offering costs (in shares) | 1,279,706 | ||||||||||||||||||||||
Stock repurchase program, authorized amount | $ | $ 50,000,000 | ||||||||||||||||||||||
Shares issued, price per share | $ / shares | $ 22.35 |
STOCKHOLDERS' EQUITY (Summary o
STOCKHOLDERS' EQUITY (Summary of Changes in Restricted Shares) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | ||
Shares, Nonvested shares at beginning of period | 120,001 | |
Shares, Nonvested shares at end of period | 185,002 | 120,001 |
Restricted Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares, Nonvested shares at beginning of period | 120,001 | 162,500 |
Shares, Granted | 111,414 | 14,340 |
Shares, Vested | (46,413) | (55,172) |
Shares, Forfeited | (1,667) | |
Shares, Nonvested shares at end of period | 185,002 | 120,001 |
Weighted average grant date fair value, Nonvested at beginning of period | $ 20.10 | $ 20.08 |
Weighted average grant date fair value, Granted | 22.59 | 13.95 |
Weighted average grant date fair value, Vested | 20.28 | 18.27 |
Weighted average grant date fair value, Forfeited | 20 | |
Weighted average grant date fair value, Nonvested at end of period | $ 21.58 | $ 20.10 |
DIVIDENDS AND DISTRIBUTIONS (Su
DIVIDENDS AND DISTRIBUTIONS (Summary of Dividends Declared) (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 01, 2017 | Aug. 01, 2017 | May 03, 2017 | Mar. 07, 2017 | Dec. 29, 2016 | Nov. 02, 2016 | Sep. 02, 2016 | May 20, 2016 | Mar. 10, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Dividends Payable [Line Items] | |||||||||||
Dividends Payable | $ 5,474 | $ 4,130 | |||||||||
Common Stock Class [Member] | |||||||||||
Dividends Payable [Line Items] | |||||||||||
Dividends payable, date declared | Nov. 1, 2017 | Aug. 1, 2017 | May 3, 2017 | Mar. 7, 2017 | Nov. 2, 2016 | Sep. 2, 2016 | May 20, 2016 | Mar. 10, 2016 | |||
Dividends payable, date of record | Jan. 2, 2018 | Oct. 2, 2017 | Jul. 3, 2017 | Apr. 3, 2017 | Jan. 3, 2017 | Oct. 1, 2016 | Jul. 1, 2016 | Apr. 1, 2016 | |||
Dividends payable, payment date | Jan. 12, 2018 | Oct. 13, 2017 | Jul. 14, 2017 | Apr. 14, 2017 | Jan. 13, 2017 | Oct. 14, 2016 | Jul. 15, 2016 | Apr. 15, 2016 | |||
Dividend payable, amount per share | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.35 | |||
Dividends Payable | $ 5,051 | $ 4,983 | $ 4,983 | $ 3,149 | $ 3,134 | $ 2,087 | $ 2,087 | $ 2,157 | |||
Series A Preferred Stock [Member] | |||||||||||
Dividends Payable [Line Items] | |||||||||||
Dividends payable, date declared | Nov. 1, 2017 | Aug. 1, 2017 | May 3, 2017 | Mar. 7, 2017 | Dec. 29, 2016 | ||||||
Dividends payable, date of record | Jan. 1, 2018 | Oct. 1, 2017 | Jul. 1, 2017 | Apr. 1, 2017 | Jan. 1, 2017 | ||||||
Dividends payable, payment date | Jan. 12, 2018 | Oct. 13, 2017 | Jul. 14, 2017 | Apr. 14, 2017 | Jan. 13, 2017 | ||||||
Dividend payable, amount per share | $ 9.48 | $ 17.89 | $ 17.69 | $ 17.50 | $ 17.31 | ||||||
Cash dividend, total amount | $ 379 | $ 179 | $ 177 | $ 175 | $ 173 | ||||||
Series A Preferred Stock [Member] | Stock Dividend [Member] | |||||||||||
Dividends Payable [Line Items] | |||||||||||
Dividends payable, date declared | Nov. 1, 2017 | Aug. 1, 2017 | May 3, 2017 | Mar. 7, 2017 | Dec. 29, 2016 | ||||||
Dividends payable, date of record | Jan. 1, 2018 | Oct. 1, 2017 | Jul. 1, 2017 | Apr. 1, 2017 | Jan. 1, 2017 | ||||||
Dividends payable, payment date | Jan. 12, 2018 | Oct. 13, 2017 | Apr. 15, 2017 | Feb. 15, 2017 | |||||||
Dividend payable, amount per share | $ 1.11 | $ 13.15 | $ 37.10 | $ 82.25 | |||||||
Stock dividend, total amount | $ 44 | $ 131 | $ 371 | $ 823 | |||||||
Common stock dividends, shares | 2,222 | 6,703 | 16,497 | 41,353 |
EARNINGS PER SHARE (Schedule of
EARNINGS PER SHARE (Schedule of Earnings per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares Outstanding | |||||||||||
Weighted average common shares - basic | 11,735,455 | 6,060,100 | 4,504,356 | ||||||||
Effect of dilutive securities | 173,057 | 152,548 | |||||||||
Weighted average common shares, all classes | 11,908,512 | 6,212,648 | 4,504,356 | ||||||||
Calculation of Earnings per Share - basic | |||||||||||
Net income (loss) | $ 3,125 | $ 4,457 | $ 5,194 | $ 1,783 | $ 4,489 | $ 4,994 | $ 5,412 | $ 1,122 | $ 14,559 | $ 16,017 | $ (2,943) |
Net income (loss) allocated to preferred stockholders | 1,456 | 996 | |||||||||
Net income (loss) allocated to unvested restricted shares | 188 | 345 | |||||||||
Dividends declared on unvested restricted shares | 152 | ||||||||||
Net income (loss) attributable to common shareholders - two-class method | $ 12,915 | $ 14,676 | $ (3,095) | ||||||||
Weighted average common shares - basic | 11,735,455 | 6,060,100 | 4,504,356 | ||||||||
Earnings (loss) per share - basic | $ 0.19 | $ 0.29 | $ 0.50 | $ 0.14 | $ 0.53 | $ 0.84 | $ 0.89 | $ 0.18 | $ 1.10 | $ 2.42 | $ (0.69) |
Calculation of Earnings per Share - diluted | |||||||||||
Net income (loss) | $ 3,125 | $ 4,457 | $ 5,194 | $ 1,783 | $ 4,489 | $ 4,994 | $ 5,412 | $ 1,122 | $ 14,559 | $ 16,017 | $ (2,943) |
Net income (loss) allocated to preferred stockholders | 1,456 | 996 | |||||||||
Dividends declared on unvested restricted shares | 152 | ||||||||||
Net income (loss) attributable to common shareholders - two-class method | $ 13,103 | $ 15,021 | $ (3,095) | ||||||||
Weighted average common shares - diluted | 11,908,512 | 6,212,648 | 4,504,356 | ||||||||
Earnings (loss) per share - diluted | $ 0.19 | $ 0.29 | $ 0.50 | $ 0.14 | $ 0.53 | $ 0.84 | $ 0.89 | $ 0.18 | $ 1.10 | $ 2.42 | $ (0.69) |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Development property investments | $ 228,233 | $ 95,102 | |
Base management fee, annual rate | 1.50% | ||
Percentage of base management fee | 0.375% | ||
Base management fees | $ 3,500 | 1,700 | $ 1,200 |
Deferred termination fee to Manager | 239 | 464 | |
Management agreement description | The initial term of the Management Agreement will expire on March 31, 2020, with up to a maximum of three, one-year extensions that end on March 31, 2023. The Company's independent directors review the Manager's performance annually. Following the initial term, the Management Agreement may be terminated annually upon the affirmative vote of at least two-thirds of the Company's independent directors based upon: (a) the Manager's unsatisfactory performance that is materially detrimental to the Company; or (b) the Company's determination that the management fees payable to the Manager are not fair, subject to the Manager's right to prevent termination based on unfair fees by accepting a reduction of management fees agreed to by at least two-thirds of the independent directors. The Company is required to provide its Manager with 180 days' prior notice of such a termination. | ||
Expenses reimbursable to Manager | $ 3,000 | 3,300 | 2,100 |
Outstanding fees due to manager | 1,500 | 1,000 | |
Investment in and advances to real estate venture | 13,856 | 5,373 | |
Interest income from investments | 11,457 | 6,532 | 1,743 |
Income (loss) from equity method investments | 2,263 | 1,278 | |
SL1 Venture [Member] | |||
Related Party Transaction [Line Items] | |||
Investment in and advances to real estate venture | 13,900 | 5,400 | |
Income (loss) from equity method investments | 2,300 | 1,300 | 0 |
Equity Method Investments [Member] | |||
Related Party Transaction [Line Items] | |||
Development property investments | 215,900 | 78,700 | |
Interest income from investments | $ 18,000 | $ 21,400 | $ 2,000 |
RESTRUCTURING COSTS (Narrative)
RESTRUCTURING COSTS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
RESTRUCTURING COSTS [Abstract] | ||
Restructuring costs | $ 54 | $ 276 |
RESTRUCTURING COSTS (Restructur
RESTRUCTURING COSTS (Restructuring and Related Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs liability, Beginning Balance | $ 79 | $ 95 | |
Restructuring costs incurred | 64 | $ 276 | |
Cash payments | (43) | (70) | (148) |
Non-cash activity | (10) | (33) | |
Restructuring costs liability, Ending Balance | 36 | 79 | 95 |
Total cumulative restructuring costs incurred or expected to be incurred | 330 | 330 | 276 |
Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs incurred | 97 | ||
Cash payments | (97) | ||
Total cumulative restructuring costs incurred or expected to be incurred | 97 | 97 | 97 |
Fixed Assets Disposal [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs incurred | 33 | ||
Non-cash activity | (33) | ||
Total cumulative restructuring costs incurred or expected to be incurred | 33 | 33 | 33 |
Lease Termination [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs liability, Beginning Balance | 79 | 85 | |
Restructuring costs incurred | 64 | 124 | |
Cash payments | (43) | (70) | (39) |
Restructuring costs liability, Ending Balance | 36 | 79 | 85 |
Total cumulative restructuring costs incurred or expected to be incurred | 187 | 187 | 124 |
Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs liability, Beginning Balance | 10 | ||
Restructuring costs incurred | 22 | ||
Cash payments | (12) | ||
Non-cash activity | (10) | ||
Restructuring costs liability, Ending Balance | 10 | ||
Total cumulative restructuring costs incurred or expected to be incurred | $ 13 | $ 13 | $ 22 |
COMMITMENTS AND CONTINGENCIES69
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Commitments [Line Items] | |||
Rent expense | $ 0.2 | $ 0.2 | $ 0.4 |
Sublease income | 0.2 | ||
General and Administrative Expense [Member] | |||
Other Commitments [Line Items] | |||
Rent expense | $ 0.1 | ||
Other Investments [Member] | |||
Other Commitments [Line Items] | |||
Unfunded loan commitment related to investment portfolio | 310.8 | ||
Other Loan [Member] | Nine Revolving Loan Agreements [Member] | |||
Other Commitments [Line Items] | |||
Unfunded loan commitment related to investment portfolio | 3.4 | ||
SL1 Venture [Member] | Investment in Real Estate Venture [Member] | |||
Other Commitments [Line Items] | |||
Unfunded loan commitment related to investment portfolio | $ 3.4 | ||
London Interbank Offered Rate (LIBOR) [Member] | Long Term Debt Obligation [Member] | |||
Other Commitments [Line Items] | |||
Debt instrument, basis spread on variable rate | 3.10% |
COMMITMENTS AND CONTINGENCIES70
COMMITMENTS AND CONTINGENCIES (Summary of the Maturities of Senior Participation and Future Minimum Payments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Long-term debt obligations, 2018 | $ 732 |
Operating lease obligations, 2018 | 237 |
Total, 2018 | 969 |
Operating lease obligations, 2019 | 171 |
Total, 2019 | 171 |
Operating lease obligations, 2020 | 145 |
Total, 2020 | 145 |
Long-term debt obligations | 732 |
Operating lease obligations | 553 |
Total | $ 1,285 |
QUARTERLY FINANCIAL DATA (UNA71
QUARTERLY FINANCIAL DATA (UNAUDITED) (Summary of Quarterly (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
QUARTERLY FINANCIAL DATA [Abstract] | |||||||||||
Total revenue | $ 3,930 | $ 3,361 | $ 2,599 | $ 2,301 | $ 2,158 | $ 1,698 | $ 1,533 | $ 1,143 | $ 12,191 | $ 6,532 | $ 1,743 |
Net income (loss) | 3,125 | 4,457 | 5,194 | 1,783 | 4,489 | 4,994 | 5,412 | 1,122 | 14,559 | 16,017 | (2,943) |
Net income attributable to common stockholders | $ 2,702 | $ 4,147 | $ 5,017 | $ 1,237 | $ 3,493 | $ 4,994 | $ 5,412 | $ 1,122 | $ 13,103 | $ 15,021 | $ (2,943) |
Net income (loss) per common share-basic | $ 0.19 | $ 0.29 | $ 0.50 | $ 0.14 | $ 0.53 | $ 0.84 | $ 0.89 | $ 0.18 | $ 1.10 | $ 2.42 | $ (0.69) |
Net income (loss) per common share-diluted | $ 0.19 | $ 0.29 | $ 0.50 | $ 0.14 | $ 0.53 | $ 0.84 | $ 0.89 | $ 0.18 | $ 1.10 | $ 2.42 | $ (0.69) |
Transaction and other expenses | $ 2,000 | $ 2,129 | $ 262 |
SUBSEQUENT EVENTS (Investment A
SUBSEQUENT EVENTS (Investment Activity) (Narrative) (Details) $ in Thousands | Mar. 02, 2018USD ($)ft² | Feb. 20, 2018USD ($) | Feb. 02, 2018USD ($) | Jan. 10, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 01, 2018 | Feb. 19, 2018 |
Subsequent Event [Line Items] | |||||||||
Payments to acquire development property | $ 152,681 | $ 45,094 | $ 40,707 | ||||||
Funded principal | 213,069 | 86,905 | |||||||
Investment commitment | $ 523,821 | $ 141,857 | |||||||
Subsequent Event [Member] | Five Bridge Loans [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Payments to acquire development property | $ 76,900 | ||||||||
Investment commitment | $ 83,300 | ||||||||
Investment maturity period | 5 years | ||||||||
Subsequent Event [Member] | Three Bridge Loans Member [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Equity method investment, ownership percentage | 49.90% | ||||||||
Funded principal | $ 47,100 | ||||||||
Net rentable area | ft² | 203,000 | ||||||||
Mortgage loans on real estate, interest rate | 6.90% | ||||||||
Subsequent Event [Member] | Two Bridge Loans [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Funded principal | $ 36,200 | ||||||||
Net rentable area | ft² | 160,000 | ||||||||
Mortgage loans on real estate, interest rate | 9.50% | ||||||||
Amount of preferential payments for loan | $ 1,000 | ||||||||
Development Property Investment [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Equity method investment, ownership percentage | 49.90% | ||||||||
Jacksonville 1 [Member] | Development Property Investment [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Minority interest ownership percentage | 100.00% | ||||||||
Payments to acquire development property | $ 2,700 | ||||||||
Atlanta 1 [Member] | Development Property Investment [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Minority interest ownership percentage | 100.00% | ||||||||
Payments to acquire development property | $ 2,400 | ||||||||
Atlanta 2 [Member] | Development Property Investment [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Payments to acquire development property | $ 3,000 | ||||||||
Pittsburgh [Member] | Development Property Investment [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Equity method investment, ownership percentage | 49.90% | ||||||||
Minority interest ownership percentage | 100.00% | ||||||||
Payments to acquire development property | $ 900 | ||||||||
Payable Upon Maturity of Loan [Member] | Subsequent Event [Member] | Two Bridge Loans [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Equity method investment, ownership percentage | 49.90% | ||||||||
Mortgage loans on real estate, interest rate | 3.00% | ||||||||
Payable Monthly in Cash [Member] | Subsequent Event [Member] | Two Bridge Loans [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Mortgage loans on real estate, interest rate | 6.50% |
SUBSEQUENT EVENTS (Series A and
SUBSEQUENT EVENTS (Series A and Series B Preferred Stock) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 28, 2018 | Feb. 16, 2018 | Jan. 26, 2018 | Jan. 25, 2018 | Nov. 01, 2017 | Aug. 01, 2017 | May 03, 2017 | Mar. 07, 2017 | Dec. 29, 2016 | Nov. 02, 2016 | Sep. 02, 2016 | May 20, 2016 | Mar. 10, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 01, 2018 | Jul. 27, 2016 |
Subsequent Event [Line Items] | ||||||||||||||||||
Proceeds from issuance of preferred stock | $ 29,964 | $ 9,448 | ||||||||||||||||
Dividends declared per share of common stock | $ 1.40 | $ 1.40 | $ 1.05 | |||||||||||||||
Credit Facility [Member] | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Credit facility, borrowing capacity | $ 40,800 | |||||||||||||||||
Common Stock Class [Member] | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Dividends payable, date declared | Nov. 1, 2017 | Aug. 1, 2017 | May 3, 2017 | Mar. 7, 2017 | Nov. 2, 2016 | Sep. 2, 2016 | May 20, 2016 | Mar. 10, 2016 | ||||||||||
Dividends payable, payment date | Jan. 12, 2018 | Oct. 13, 2017 | Jul. 14, 2017 | Apr. 14, 2017 | Jan. 13, 2017 | Oct. 14, 2016 | Jul. 15, 2016 | Apr. 15, 2016 | ||||||||||
Dividends payable, date of record | Jan. 2, 2018 | Oct. 2, 2017 | Jul. 3, 2017 | Apr. 3, 2017 | Jan. 3, 2017 | Oct. 1, 2016 | Jul. 1, 2016 | Apr. 1, 2016 | ||||||||||
Series A Preferred Stock [Member] | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Percentage of increase in book value | 25.00% | |||||||||||||||||
Internal rate of return to the preferred shareholders | 14.00% | |||||||||||||||||
Preferred stock, redemption tems | The Series A Preferred Stock may be redeemed at the Company's option (i) after five years from the Effective Date at a price equal to 105% of the Liquidation Value per share plus the value of all accumulated and unpaid Cash Distributions and Stock Dividends, and (ii) after six years from the Effective Date at a price equal to 100% of the Liquidation Value per share plus the value of all accumulated and unpaid Cash Distributions and Stock Dividends. In the event of certain change of control events affecting the Company prior to the third anniversary of the Effective Date, the Company must redeem all shares of Series A Preferred Stock for a price equal to (a) the Liquidation Value, plus (b) accumulated and unpaid Cash Distributions and Stock Dividends, plus (c) a make-whole premium designed to provide the holders of the Series A Preferred Stock with a return on the redeemed shares equal to a 14.0% internal rate of return through the third anniversary of the Effective Date. | |||||||||||||||||
Preferred stock, liquidation preferance per share | $ 1,000 | |||||||||||||||||
Preferred stock, shares issued | 40,000 | 10,000 | ||||||||||||||||
Dividends payable, date declared | Nov. 1, 2017 | Aug. 1, 2017 | May 3, 2017 | Mar. 7, 2017 | Dec. 29, 2016 | |||||||||||||
Dividends payable, payment date | Jan. 12, 2018 | Oct. 13, 2017 | Jul. 14, 2017 | Apr. 14, 2017 | Jan. 13, 2017 | |||||||||||||
Dividends payable, date of record | Jan. 1, 2018 | Oct. 1, 2017 | Jul. 1, 2017 | Apr. 1, 2017 | Jan. 1, 2017 | |||||||||||||
Series B Preferred Stock [Member] | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Preferred stock, redemption tems | On or after January 26, 2023, the Series B Preferred Stock may be redeemed, at the Company's option, upon not less than 30 nor more than 60 days' written notice, in whole or in part, at any time and from time to time, for cash at a redemption price equal to $25.00 per share, plus any accrued and unpaid dividends (whether or not authorized or declared) to, but excluding, the date fixed for redemption. Holders of Series B Preferred Stock will have no right to require the redemption or repurchase of the Series B Preferred Stock. Upon the occurrence of a Change of Control (as defined in the Series B Articles Supplementary), we may redeem for cash, in whole or in part, the Series B Preferred Stock within 120 days after the date on which such Change of Control occurred, by paying $25.00 per share, plus any accrued and unpaid dividends (whether or not authorized or declared) to, but excluding, the date fixed for redemption. | |||||||||||||||||
Subsequent Event [Member] | Credit Facility [Member] | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Credit facility, amount outstanding | $ 30,000 | |||||||||||||||||
Subsequent Event [Member] | Common Stock Class [Member] | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Dividends declared per share of common stock | $ 0.35 | |||||||||||||||||
Dividends payable, date declared | Feb. 28, 2018 | |||||||||||||||||
Dividends payable, payment date | Apr. 13, 2018 | |||||||||||||||||
Dividends payable, date of record | Apr. 3, 2018 | |||||||||||||||||
Subsequent Event [Member] | Series A Preferred Stock [Member] | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Proceeds from issuance of preferred stock | $ 20,000 | |||||||||||||||||
Preferred stock, shares issued | 20,000 | |||||||||||||||||
Dividends payable, date declared | Feb. 28, 2018 | |||||||||||||||||
Dividends payable, payment date | Apr. 15, 2018 | |||||||||||||||||
Dividends payable, date of record | Apr. 1, 2018 | |||||||||||||||||
Subsequent Event [Member] | Series B Preferred Stock [Member] | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Preferred stock, shares authorized | 1,725,000 | |||||||||||||||||
Preferred stock, dividend rate | 7.00% | |||||||||||||||||
Preferred stock, liquidation preferance per share | $ 25 | |||||||||||||||||
Cumulative annual stockholder's return per share | $ 1.7500 | |||||||||||||||||
Preferred stock, change of control conversion rate | 2.74876% | |||||||||||||||||
Proceeds from issuance of preferred stock | $ 36,300 | |||||||||||||||||
Preferred stock, shares issued | 1,500,000 | |||||||||||||||||
Dividends payable, date declared | Feb. 28, 2018 | |||||||||||||||||
Preferred stock, dividend declared per share | $ 0.37431 | |||||||||||||||||
Dividends payable, payment date | Apr. 13, 2018 | |||||||||||||||||
Dividends payable, date of record | Apr. 2, 2018 |
SUBSEQUENT EVENTS (Schedule of
SUBSEQUENT EVENTS (Schedule of Investments) (Details) - USD ($) $ in Thousands | Feb. 08, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | |||
Investment commitment | $ 523,821 | $ 141,857 | |
Development Property Investments [Member] | |||
Subsequent Event [Line Items] | |||
Investment commitment | 517,839 | 131,865 | |
Loan Investments [Member] | Development Property Investments [Member] | |||
Subsequent Event [Line Items] | |||
Investment commitment | $ 500,106 | $ 101,840 | |
Loan Investments [Member] | Development Property Investments [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Investment commitment | $ 10,543 | ||
Loan Investments [Member] | Development Property Investments [Member] | Minneapolis 2 [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Investment Closing Date | 2/8/2018 | ||
Investment commitment | $ 10,543 |
SCHEDULE III - REAL ESTATE AN75
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Real Estate and Accumulated Depreciation - Ocoee FL) (Details) - Ocoee Florida [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)ft² | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Net rentable area | ft² | 93,965 |
Encumbrances | |
Initial Cost [Abstract] | |
Land | 1,505 |
Buildings and improvements | 14,322 |
Costs Subsequent ro Acquisition [Abstract] | |
Cost subsequent to acquisition | |
Gross Carrying Amount [Abstract] | |
Land | 1,505 |
Buildings and improvements | 14,322 |
Real estate, gross, total | 15,827 |
Accumulated depreciation | $ 472 |
Year acquired | Aug. 31, 2017 |
Life on which depreciation in latest income statement is computed | 40 years |
SCHEDULE III - REAL ESTATE AN76
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Real Estate and Accumulated Depreciation - Self-Storage) (Details) - Self-Storage Real Estate [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Self-storage real estate owned: | |
Balance at beginning of period | |
Acquisitions & improvements | 15,827 |
Construction in progress | |
Balance at end of period | 15,827 |
Accumulated Depreciation: | |
Balance at beginning of period | |
Depreciation expense | 472 |
Dispositions and other | |
Balance at end of period | $ 472 |
SCHEDULE IV -MORTGAGE LOANS ON
SCHEDULE IV -MORTGAGE LOANS ON REAL ESTATE (Schedule of Real Estate Properties) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Mortgage Loans on Real Estate [Line Items] | |
Prior liens | |
Face amount of loans | 213,069 |
Carrying amount of loans | 234,171 |
Principal amount of loans subject to delinquent principal or interest | |
Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Prior liens | |
Face amount of loans | 194,597 |
Carrying amount of loans | 215,860 |
Principal amount of loans subject to delinquent principal or interest | |
Operating Property Loans [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Prior liens | |
Face amount of loans | 5,980 |
Carrying amount of loans | 5,938 |
Principal amount of loans subject to delinquent principal or interest | |
Atlanta 1 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Atlanta |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Jul. 1, 2021 |
Prior liens | |
Face amount of loans | 8,086 |
Carrying amount of loans | 10,741 |
Principal amount of loans subject to delinquent principal or interest | |
Tampa [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Tampa |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Jul. 1, 2021 |
Prior liens | |
Face amount of loans | 5,285 |
Carrying amount of loans | 6,012 |
Principal amount of loans subject to delinquent principal or interest | |
Atlanta 2 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Atlanta |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Jul. 1, 2021 |
Prior liens | |
Face amount of loans | 5,769 |
Carrying amount of loans | 8,631 |
Principal amount of loans subject to delinquent principal or interest | |
Charlotte 1 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Charlotte |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Aug. 1, 2021 |
Prior liens | |
Face amount of loans | 7,251 |
Carrying amount of loans | 10,363 |
Principal amount of loans subject to delinquent principal or interest | |
Milwaukee [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Milwaukee |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Aug. 1, 2021 |
Prior liens | |
Face amount of loans | 7,512 |
Carrying amount of loans | 8,994 |
Principal amount of loans subject to delinquent principal or interest | |
New Haven [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | New Haven |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Sep. 1, 2021 |
Prior liens | |
Face amount of loans | 6,524 |
Carrying amount of loans | 8,231 |
Principal amount of loans subject to delinquent principal or interest | |
Pittsburgh [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Pittsburgh |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Sep. 1, 2021 |
Prior liens | |
Face amount of loans | 4,798 |
Carrying amount of loans | 6,774 |
Principal amount of loans subject to delinquent principal or interest | |
Raleigh [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Raleigh |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Sep. 1, 2021 |
Prior liens | |
Face amount of loans | 5,550 |
Carrying amount of loans | 5,889 |
Principal amount of loans subject to delinquent principal or interest | |
Jacksonville 1 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Jacksonville |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Oct. 1, 2021 |
Prior liens | |
Face amount of loans | 5,988 |
Carrying amount of loans | 8,913 |
Principal amount of loans subject to delinquent principal or interest | |
Austin [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Austin |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Oct. 27, 2021 |
Prior liens | |
Face amount of loans | 7,297 |
Carrying amount of loans | 8,782 |
Principal amount of loans subject to delinquent principal or interest | |
Charlotte 2 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Charlotte |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Sep. 20, 2022 |
Prior liens | |
Face amount of loans | 5,453 |
Carrying amount of loans | 5,686 |
Principal amount of loans subject to delinquent principal or interest | |
Jacksonville 2 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Jacksonville |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Nov. 17, 2022 |
Prior liens | |
Face amount of loans | 4,971 |
Carrying amount of loans | 5,818 |
Principal amount of loans subject to delinquent principal or interest | |
New York City 1 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | New York City |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Jan. 4, 2023 |
Prior liens | |
Face amount of loans | 14,914 |
Carrying amount of loans | 18,892 |
Principal amount of loans subject to delinquent principal or interest | |
Atlanta 3 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Atlanta |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Feb. 1, 2023 |
Prior liens | |
Face amount of loans | 2,393 |
Carrying amount of loans | 2,236 |
Principal amount of loans subject to delinquent principal or interest | |
Atlanta 4 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Atlanta |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Feb. 1, 2023 |
Prior liens | |
Face amount of loans | 7,040 |
Carrying amount of loans | 7,147 |
Principal amount of loans subject to delinquent principal or interest | |
Orlando 1 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Orlando |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Feb. 24, 2023 |
Prior liens | |
Face amount of loans | 3,144 |
Carrying amount of loans | 3,335 |
Principal amount of loans subject to delinquent principal or interest | |
New Orleans [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | New Orleans |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Feb. 24, 2023 |
Prior liens | |
Face amount of loans | 677 |
Carrying amount of loans | 553 |
Principal amount of loans subject to delinquent principal or interest | |
Atlanta 5 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Atlanta |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Feb. 27, 2023 |
Prior liens | |
Face amount of loans | 4,971 |
Carrying amount of loans | 4,739 |
Principal amount of loans subject to delinquent principal or interest | |
Fort Lauderdale [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Fort Lauderdale |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Feb. 28, 2023 |
Prior liens | |
Face amount of loans | 1,128 |
Carrying amount of loans | 1,043 |
Principal amount of loans subject to delinquent principal or interest | |
Houston [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Houston |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Feb. 28, 2023 |
Prior liens | |
Face amount of loans | 3,633 |
Carrying amount of loans | 3,547 |
Principal amount of loans subject to delinquent principal or interest | |
Louisville 1 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Louisville |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Apr. 14, 2023 |
Prior liens | |
Face amount of loans | 2,932 |
Carrying amount of loans | 3,083 |
Principal amount of loans subject to delinquent principal or interest | |
Denver 1 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Denver |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Apr. 20, 2023 |
Prior liens | |
Face amount of loans | 1,940 |
Carrying amount of loans | 1,849 |
Principal amount of loans subject to delinquent principal or interest | |
Denver 2 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Denver |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Apr. 20, 2023 |
Prior liens | |
Face amount of loans | 5,442 |
Carrying amount of loans | 5,849 |
Principal amount of loans subject to delinquent principal or interest | |
Atlanta 6 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Atlanta |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Jun. 1, 2023 |
Prior liens | |
Face amount of loans | 4,344 |
Carrying amount of loans | 4,262 |
Principal amount of loans subject to delinquent principal or interest | |
Tampa 2 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Tampa |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Jun. 1, 2023 |
Prior liens | |
Face amount of loans | 1,086 |
Carrying amount of loans | 1,010 |
Principal amount of loans subject to delinquent principal or interest | |
Tampa 3 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Tampa |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Jun. 1, 2023 |
Prior liens | |
Face amount of loans | 1,422 |
Carrying amount of loans | 1,335 |
Principal amount of loans subject to delinquent principal or interest | |
Tampa 4 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Tampa |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Jul. 1, 2023 |
Prior liens | |
Face amount of loans | 1,847 |
Carrying amount of loans | 1,752 |
Principal amount of loans subject to delinquent principal or interest | |
Baltimore [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Baltimore |
Mortgage loans on real estate, interest rate | 9.50% |
Final maturity date | Jul. 1, 2023 |
Prior liens | |
Face amount of loans | 3,315 |
Carrying amount of loans | 3,115 |
Principal amount of loans subject to delinquent principal or interest | |
Knoxville [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Knoxville |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Jun. 28, 2023 |
Prior liens | |
Face amount of loans | 1,351 |
Carrying amount of loans | 1,265 |
Principal amount of loans subject to delinquent principal or interest | |
Boston 1 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Boston |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Jun. 28, 2023 |
Prior liens | |
Face amount of loans | 4,978 |
Carrying amount of loans | 4,914 |
Principal amount of loans subject to delinquent principal or interest | |
New York City 2 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | New York City |
Mortgage loans on real estate, interest rate | 9.50% |
Final maturity date | Jul. 1, 2023 |
Prior liens | |
Face amount of loans | 18,042 |
Carrying amount of loans | 17,576 |
Principal amount of loans subject to delinquent principal or interest | |
Jacksonville 3 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Jacksonville |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Jul. 27, 2023 |
Prior liens | |
Face amount of loans | 1,134 |
Carrying amount of loans | 1,053 |
Principal amount of loans subject to delinquent principal or interest | |
Orlando 2 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Orlando |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Sep. 1, 2023 |
Prior liens | |
Face amount of loans | 2,059 |
Carrying amount of loans | 1,960 |
Principal amount of loans subject to delinquent principal or interest | |
Los Angeles [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Los Angeles |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Sep. 30, 2024 |
Prior liens | |
Face amount of loans | 7,533 |
Carrying amount of loans | 7,398 |
Principal amount of loans subject to delinquent principal or interest | |
Miami 1 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Miami |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Sep. 14, 2023 |
Prior liens | |
Face amount of loans | 5,862 |
Carrying amount of loans | 5,725 |
Principal amount of loans subject to delinquent principal or interest | |
Louisville [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Louisville |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Sep. 30, 2023 |
Prior liens | |
Face amount of loans | 1,864 |
Carrying amount of loans | 1,762 |
Principal amount of loans subject to delinquent principal or interest | |
Miami 2 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Miami |
Mortgage loans on real estate, interest rate | 9.50% |
Final maturity date | Nov. 1, 2023 |
Prior liens | |
Face amount of loans | 1,014 |
Carrying amount of loans | 820 |
Principal amount of loans subject to delinquent principal or interest | |
New York City 3 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | New York City |
Mortgage loans on real estate, interest rate | 9.50% |
Final maturity date | Nov. 1, 2023 |
Prior liens | |
Face amount of loans | 2,595 |
Carrying amount of loans | 2,294 |
Principal amount of loans subject to delinquent principal or interest | |
Miami 3 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Miami |
Mortgage loans on real estate, interest rate | 9.50% |
Final maturity date | Dec. 1, 2023 |
Prior liens | |
Face amount of loans | 3,508 |
Carrying amount of loans | 3,099 |
Principal amount of loans subject to delinquent principal or interest | |
Minneapolis [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Minneapolis |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Nov. 21, 2023 |
Prior liens | |
Face amount of loans | 1,150 |
Carrying amount of loans | 1,023 |
Principal amount of loans subject to delinquent principal or interest | |
Boston 2 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Boston |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Jan. 1, 2024 |
Prior liens | |
Face amount of loans | 1,306 |
Carrying amount of loans | 1,220 |
Principal amount of loans subject to delinquent principal or interest | |
New York City 4 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | New York City |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Dec. 15, 2023 |
Prior liens | |
Face amount of loans | 927 |
Carrying amount of loans | 823 |
Principal amount of loans subject to delinquent principal or interest | |
Newark [Member] | Self-Storage Real Estate [Member] | Operating Property Loans [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Newark |
Mortgage loans on real estate, interest rate | 5.85% |
Final maturity date | Aug. 1, 2022 |
Prior liens | |
Face amount of loans | 3,480 |
Carrying amount of loans | 3,447 |
Principal amount of loans subject to delinquent principal or interest | |
Chicago [Member] | Self-Storage Real Estate [Member] | Operating Property Loans [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Chicago |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Dec. 22, 2021 |
Prior liens | |
Face amount of loans | 2,500 |
Carrying amount of loans | 2,491 |
Principal amount of loans subject to delinquent principal or interest | |
Boston 3 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Boston |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Dec. 27, 2023 |
Prior liens | |
Face amount of loans | 2,259 |
Carrying amount of loans | 2,169 |
Principal amount of loans subject to delinquent principal or interest | |
New York City 5 [Member] | Self-Storage Real Estate [Member] | Development Property Investments [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | New York City |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Jan. 1, 2024 |
Prior liens | |
Face amount of loans | 4,303 |
Carrying amount of loans | 4,178 |
Principal amount of loans subject to delinquent principal or interest | |
Construction Loans [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Prior liens | |
Face amount of loans | 12,492 |
Carrying amount of loans | 12,373 |
Principal amount of loans subject to delinquent principal or interest | |
Construction Loans [Member] | Miami [Member] | Self-Storage Real Estate [Member] | |
Mortgage Loans on Real Estate [Line Items] | |
Location | Miami |
Mortgage loans on real estate, interest rate | 6.90% |
Final maturity date | Jan. 31, 2018 |
Prior liens | |
Face amount of loans | 12,492 |
Carrying amount of loans | 12,373 |
Principal amount of loans subject to delinquent principal or interest |
SCHEDULE IV - MORTGAGE LOANS 78
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE (Activity of Mortgage Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE [Abstract] | |||
Balance as of December 31, 2016 | $ 115,039 | ||
Fundings of principal, net of unamortized origination fees | 150,217 | ||
Reclassification of self-storage real estate owned | (12,919) | ||
Payment-in-kind interest | 8,575 | ||
Repayments of principal | (37,545) | ||
Net unrealized gains | 10,804 | $ 18,370 | $ 872 |
Balance as of December 31, 2017 | $ 234,171 | $ 115,039 |