Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 07, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-41703 | |
Entity Registrant Name | CALIBERCOS INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-2426901 | |
Entity Address, Address Line One | 8901 E. Mountain View Rd. | |
Entity Address, Address Line Two | Ste. 150 | |
Entity Address, City or Town | Scottsdale | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85258 | |
City Area Code | 480 | |
Local Phone Number | 295-7600 | |
Title of 12(b) Security | Class A common stock, $0.001 par value per share | |
Trading Symbol | CWD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001627282 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 14,410,688 | |
Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 7,416,414 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Assets | $ 201,462 | $ 299,432 |
Liabilities and Stockholders’ Equity | ||
Total liabilities | 114,972 | 233,414 |
Commitments and Contingencies | ||
Paid-in capital | 39,869 | 39,432 |
Accumulated deficit | (40,635) | (36,830) |
Stockholders’ equity (deficit) attributable to CaliberCos Inc. | (745) | 2,623 |
Stockholders’ equity attributable to noncontrolling interests | 87,235 | 63,395 |
Total stockholders’ equity | 86,490 | 66,018 |
Total liabilities and stockholders’ equity | 201,462 | 299,432 |
Class A | ||
Liabilities and Stockholders’ Equity | ||
Common stock | 14 | 14 |
Class B | ||
Liabilities and Stockholders’ Equity | ||
Common stock | 7 | 7 |
Excluding consolidated VIE | ||
Assets | ||
Cash | 679 | 940 |
Restricted cash | 2,599 | 2,569 |
Real estate investments, net | 21,652 | 21,492 |
Due from related parties | 9,397 | 9,709 |
Investments in unconsolidated entities | 9,726 | 3,338 |
Accounts receivable, net | 572 | 205 |
Operating lease - right of use assets | 182 | 193 |
Prepaid and other assets | 2,888 | 2,781 |
Liabilities and Stockholders’ Equity | ||
Accounts payable and accrued expenses | 9,766 | 8,886 |
Other liabilities | 614 | 420 |
Operating lease liabilities | 112 | 119 |
Excluding consolidated VIE | Nonrelated party | ||
Liabilities and Stockholders’ Equity | ||
Notes payable | 52,952 | 53,799 |
Other liabilities | 614 | 420 |
Excluding consolidated VIE | Related party | ||
Assets | ||
Notes receivable - related parties | 6,749 | 50 |
Liabilities and Stockholders’ Equity | ||
Other liabilities | 157 | 257 |
VIE, primary beneficiary | ||
Assets | ||
Cash | 1,416 | 2,865 |
Restricted cash | 640 | 11,266 |
Real estate investments, net | 101,037 | 185,636 |
Notes receivable - related parties | 40,347 | 34,620 |
Accounts receivable, net | 371 | 1,978 |
Operating lease - right of use assets | 0 | 10,318 |
Prepaid and other assets | 3,779 | 11,677 |
Liabilities and Stockholders’ Equity | ||
Accounts payable and accrued expenses | 2,723 | 11,736 |
Other liabilities | 736 | 2,400 |
Operating lease liabilities | 0 | 13,957 |
VIE, primary beneficiary | Nonrelated party | ||
Liabilities and Stockholders’ Equity | ||
Notes payable | 47,654 | 129,684 |
Other liabilities | 736 | 2,400 |
VIE, primary beneficiary | Related party | ||
Assets | ||
Notes receivable - related parties | 40,347 | 34,620 |
Liabilities and Stockholders’ Equity | ||
Notes payable | 0 | 12,055 |
Other liabilities | $ 258 | $ 101 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Class A | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 14,311,355 | 13,872,671 |
Common stock, outstanding (in shares) | 14,311,355 | 13,872,671 |
Class B | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, issued (in shares) | 7,416,414 | 7,416,414 |
Common stock, outstanding (in shares) | 7,416,414 | 7,416,414 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues [Abstract] | ||
Total revenues | $ 22,951 | $ 29,522 |
Expenses | ||
Total expenses | 27,308 | 29,013 |
Other income, net | 272 | 519 |
Interest income | 117 | 98 |
Interest expense | (1,294) | (831) |
Net (loss) income before income taxes | (5,262) | 295 |
Benefit from income taxes | 0 | 0 |
Net (loss) income | (5,262) | 295 |
Net (loss) income attributable to noncontrolling interests | (1,457) | 1,502 |
Net loss attributable to CaliberCos Inc. | $ (3,805) | $ (1,207) |
Basic net loss per share attributable to common stockholders (in dollars per share) | $ (0.18) | $ (0.07) |
Diluted loss income per share attributable to common stockholders (in dollars per share) | $ (0.18) | $ (0.07) |
Weighted average common shares outstanding: | ||
Basic (in shares) | 21,542 | 18,182 |
Diluted (in shares) | 21,542 | 18,182 |
Excluding consolidated VIE | ||
Expenses | ||
Operating costs | $ 5,262 | $ 4,504 |
General and administrative | 1,940 | 1,816 |
Marketing and advertising | 106 | 353 |
Depreciation and amortization | 146 | 132 |
VIE, primary beneficiary | ||
Expenses | ||
Consolidated funds – other expenses | 3,072 | 1,925 |
Interest income | 1,000 | |
Asset management revenues | Excluding consolidated VIE | ||
Revenues [Abstract] | ||
Revenue | 3,170 | 2,036 |
Performance allocations | Excluding consolidated VIE | ||
Revenues [Abstract] | ||
Revenue | 166 | 2,426 |
Hospitality revenue | VIE, primary beneficiary | ||
Revenues [Abstract] | ||
Other revenue | 18,145 | 23,209 |
Expenses | ||
Consolidated funds – hospitality expenses | 16,782 | 20,283 |
Other revenues | VIE, primary beneficiary | ||
Revenues [Abstract] | ||
Other revenue | $ 1,470 | $ 1,851 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Class A | Class B | Preferred Stock | Common Stock Class A | Common Stock Class B | Paid in Capital | Treasury Stock | Accumulated Deficit | Noncontrolling Interests |
Balance, beginning of period (in shares) at Dec. 31, 2022 | 1,651,000 | |||||||||
Balance, beginning of period (in shares) at Dec. 31, 2022 | 10,791,000 | 7,416,000 | ||||||||
Balance, beginning of period at Dec. 31, 2022 | $ 77,189 | $ 11 | $ 7 | $ 33,108 | $ (13,626) | $ (22,709) | $ 80,398 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Equity based compensation | 702 | 702 | ||||||||
Contributions from noncontrolling interest holders | 7,629 | 7,629 | ||||||||
Redemptions of noncontrolling interest holders | (295) | (295) | ||||||||
Distributions to noncontrolling interest holders | (1,752) | (1,752) | ||||||||
Consolidation of VIEs, increase | (20,805) | (20,805) | ||||||||
Deconsolidation of VIEs, increase | 9,539 | 9,539 | ||||||||
Retirement of treasury stock | 1,418 | (1,418) | ||||||||
Net income (loss) | 295 | (1,207) | 1,502 | |||||||
Balance, end of period (in shares) at Mar. 31, 2023 | 1,651,000 | |||||||||
Balance, end of period (in shares) at Mar. 31, 2023 | 10,749,000 | 7,416,000 | ||||||||
Balance, end of period at Mar. 31, 2023 | 72,502 | $ 11 | $ 7 | 33,810 | (12,208) | (25,334) | 76,216 | |||
Balance, beginning of period (in shares) at Dec. 31, 2023 | 0 | |||||||||
Balance, beginning of period (in shares) at Dec. 31, 2023 | 13,872,671 | 7,416,414 | 13,873,000 | 7,416,000 | ||||||
Balance, beginning of period at Dec. 31, 2023 | 66,018 | $ 14 | $ 7 | 39,432 | 0 | (36,830) | 63,395 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of common stock (in shares) | 25,000 | |||||||||
Issuance of common stock | 37 | $ 0 | 37 | |||||||
Equity based compensation (in shares) | 413,000 | |||||||||
Repurchases of common stock (in shares) | (42,000) | |||||||||
Equity based compensation | 400 | 400 | ||||||||
Contributions from noncontrolling interest holders | 6,388 | 6,388 | ||||||||
Redemptions of noncontrolling interest holders | (670) | (670) | ||||||||
Distributions to noncontrolling interest holders | (1,604) | (1,604) | ||||||||
Deconsolidation of VIEs, increase | 21,183 | 21,183 | ||||||||
Net income (loss) | (5,262) | (3,805) | (1,457) | |||||||
Balance, end of period (in shares) at Mar. 31, 2024 | 0 | |||||||||
Balance, end of period (in shares) at Mar. 31, 2024 | 14,311,355 | 7,416,414 | 14,311,000 | 7,416,000 | ||||||
Balance, end of period at Mar. 31, 2024 | $ 86,490 | $ 14 | $ 7 | $ 39,869 | $ 0 | $ (40,635) | $ 87,235 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash Flows From Operating Activities | ||
Net income (loss) | $ (5,262) | $ 295 |
Changes in operating assets and liabilities: | ||
Net cash (used in) provided by the Company's operating activities | (1,527) | 1,050 |
Cash Flows From Investing Activities | ||
Net cash used in the Company's investing activities | (16,052) | (35,981) |
Cash Flows From Financing Activities | ||
Net cash provided by the Company's financing activities | 5,273 | 42,722 |
Net Change in Cash and Restricted Cash | (12,306) | 7,791 |
Cash and Restricted Cash at Beginning of Period | 17,640 | 15,934 |
Cash and Restricted Cash at End of Period | 5,334 | 23,725 |
Reconciliation of Cash and Restricted Cash | ||
Cash at beginning of period | 3,805 | 7,657 |
Restricted cash at beginning of period | 13,835 | 8,277 |
Cash and Restricted Cash at Beginning of Period | 17,640 | 15,934 |
Cash at end of period | 2,095 | 10,673 |
Restricted cash at end of period | 3,239 | 13,052 |
Cash and Restricted Cash at End of Period | 5,334 | 23,725 |
Excluding consolidated VIE | ||
Adjustments to reconcile net (loss) income to net cash from operating activities: | ||
Depreciation and amortization | 140 | 127 |
Non-cash lease expense and gain on lease extinguishment | 3 | (297) |
Non-cash performance allocations | 0 | (2,382) |
Equity-based compensation | 400 | 702 |
Amortization of above-market/below market leases and straight-line rent, net | 77 | 0 |
Amortization of deferred financing costs | 10 | (6) |
Changes in operating assets and liabilities: | ||
Due from related parties | 312 | 21 |
Prepaid expenses, right-of-use assets and other assets | (93) | 2,256 |
Accounts payable and accrued expenses | 810 | 597 |
Due to related parties | (100) | 99 |
Lease liabilities and other liabilities | 104 | 684 |
Cash Flows From Investing Activities | ||
Investments in real estate assets | (193) | (23) |
Acquisition of real estate assets | 0 | (19,472) |
Investments in unconsolidated entities | (150) | (10) |
Funding of notes receivable - related parties | 0 | (250) |
Payment received on notes receivable - related parties | 50 | 0 |
Cash Flows From Financing Activities | ||
Payment of deferred financing costs | (9) | (253) |
Payments of treasury stock - buyback obligation | 0 | (183) |
Excluding consolidated VIE | Related party | ||
Cash Flows From Financing Activities | ||
Proceeds from notes payable | 0 | 4,000 |
Repayments of notes payable | 0 | (4,000) |
Excluding consolidated VIE | Nonrelated party | ||
Cash Flows From Financing Activities | ||
Proceeds from notes payable | 296 | 36,873 |
Repayments of notes payable | (1,144) | (311) |
VIE, primary beneficiary | ||
Adjustments to reconcile net (loss) income to net cash from operating activities: | ||
Depreciation and amortization | 2,094 | 2,374 |
Non-cash lease expense and gain on lease extinguishment | (12) | (26) |
Loss on the disposition of real estate | (9) | 0 |
Loss on extinguishment of debt | 0 | 2 |
Amortization of above-market/below market leases and straight-line rent, net | (51) | 4 |
Amortization of deferred financing costs | 300 | 300 |
(Gain) loss on derivative instruments | (159) | 279 |
Amortization of advanced key money | (19) | (19) |
Amortization of deferred financing costs | 285 | 335 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (1,201) | (1,860) |
Due from related parties | 1 | 13 |
Prepaid expenses, right-of-use assets and other assets | (624) | (3,732) |
Accounts payable and accrued expenses | 1,648 | 1,059 |
Due to related parties | 252 | 85 |
Lease liabilities and other liabilities | (133) | 440 |
Cash Flows From Investing Activities | ||
Investments in real estate assets | (1,062) | (7,125) |
Acquisition of real estate assets | 0 | (6,643) |
Proceeds from the sale of real estate assets | 293 | 0 |
Funding of notes receivable - related parties | (2,470) | (3,902) |
Payment received on notes receivable - related parties | 7,084 | 935 |
Consolidation of VIEs | 0 | 12,927 |
Deconsolidation of VIEs | (19,604) | (12,418) |
Cash Flows From Financing Activities | ||
Payment of deferred financing costs | (66) | (2,439) |
Proceeds from notes payable | 3,117 | 60,157 |
Repayments of notes payable | (3,342) | (56,899) |
Contributions from noncontrolling interest holders | 6,388 | 7,629 |
Redemptions of noncontrolling interests | (670) | (295) |
Distributions to noncontrolling interest holders | (1,604) | (1,752) |
VIE, primary beneficiary | Related party | ||
Cash Flows From Financing Activities | ||
Proceeds from notes payable | 2,307 | 2,997 |
Repayments of notes payable | $ 0 | $ (2,802) |
Organization and Liquidity
Organization and Liquidity | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Liquidity | Organization and Liquidity Organization CaliberCos Inc., a Delaware corporation, and its wholly-owned subsidiaries (the “Company”), is an alternative asset manager of private syndication and direct investment real estate funds and provider of a full suite of traditional real estate services. The Company was formed in November 2014, and originally began as Caliber Companies, LLC, an Arizona limited liability company, which commenced operations in January 2009. The Company provides various support services to the investments we manage including asset management services, fund set-up services, lending support, construction and development management, and real estate brokerage. As of March 31, 2024, we had operations in Alaska, Arizona, Colorado, and Texas . In general, our private equity real estate funds are organized as operating partnerships, in which multiple unrelated passive investors own partnership interests. In addition, we are designated as the manager and/or general partner of the partnership. Depending on the legal structure and arrangements between us and the funds, we may or may not consolidate the partnerships for financial reporting purposes. For funds in which we are determined to be the controlling party or primary beneficiary for financial reporting purposes, the fund is consolidated, and the passive investors’ ownership is presented as noncontrolling interest in the accompanying consolidated financial statements (“Consolidated Funds”, and collectively with the Company, the “Consolidated Company”, “Caliber”, “we”, “our”, and “us”). For funds in which we are not determined to be the controlling party for financial reporting purposes, the fund is not consolidated, and any fees earned from the fund are included in fund management revenue in the accompanying consolidated financial statements. See Note 2 – Summary of Significant Accounting Policies for more detail. Liquidity and Going Concern The accompanying consolidated financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. At March 31, 2024, the Company had individual corporate notes aggregating $36.7 million for which the maturity dates of these notes are within the 12-month period subsequent to when these financial statements were issued. Additionally, the Company has incurred operating losses and negative operating cash flows for the three months ended March 31, 2024, and anticipates additional future operating losses and negative operating cash flows. The Company does not have sufficient cash on hand to satisfy such obligations. As such these conditions and events raise substantial doubt about the Company’s ability to continue as a going concern. In response to these conditions, management plans to i) continue to negotiate extensions of such loans or refinance such debt, ii) obtain new financing, iii) reduce operating costs, iv) collect receivables and return investments from the Consolidated Funds, and/or v) increase capital raise through continued expansion of fundraising channels. The Company has commenced discussions with the various lenders in pursuit of extending or refinancing its loans. Subsequent to March 31, 2024, the Company extended the maturity dates of certain corporate and convertible notes. As of May 9, 2024, an aggregate of $36.4 million of corporate and convertible notes mature within the 12-month period subsequent to when these financial statements were issued (see Note 6 – Notes Payable). Management’s plans include timely collection on the Company’s outstanding accounts and notes receivable from affiliated entities for which management has influence and control and implementing strategies to reduce costs. The Company executed a reduction in force of approximately 10% of its employees in May 2024, with an expected annual saving of compensation and benefits expenses of $4.0 million. The Company has also executed on cost reduction plans with estimated annual savings of $2.5 million. In addition, Caliber Hospitality Trust, Inc. (the “Caliber Hospitality Trust”) received a $10.0 million investment commitment into its Series D preferrd equity in May 2024, of which a portion will be used to repay amounts due to the Company. The Company concluded that management’s plans are probable of being achieved to alleviate substantial doubt about the Company’s ability to continue as a going concern. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Accounting Policies of the Company Basis of Presentation and Consolidation The accompanying consolidated financial statements are prepared on the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The accompanying consolidated financial statements include our accounts, our consolidated subsidiaries, and legal entities in which the Company is deemed to have a direct or indirect controlling financial interest based on either a variable interest model or voting interest model. The equity and net income or loss attributable to noncontrolling interests in subsidiaries is shown separately in the accompanying consolidated balance sheets, statements of operations, and statements of changes in stockholders’ equity. All intercompany balances and transactions have been eliminated in consolidation. Variable Interest Entities We determine if an entity is a variable interest entity (“VIE”) based on several factors, including whether the equity holders, as a group, lack the characteristics of a controlling financial interest. We analyze any investments in VIEs to determine if we are the primary beneficiary. A reporting entity is determined to be the primary beneficiary if it holds a controlling financial interest in a VIE. Determining which reporting entity, if any, has a controlling financial interest in a VIE is primarily a qualitative analysis focused on identifying which reporting entity has both (i) the power to direct the activities of the entity that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses or the right to receive benefits from such entity that could potentially be significant to such entity. Performance of that analysis requires the exercise of judgment. We consolidate any VIEs for which we are the primary beneficiary, and we disclose our maximum exposure to loss related to the consolidated VIEs. See Note 3 – VIEs for more detail. Voting Interest Entities Entities that do not qualify as VIEs are generally assessed for consolidation as voting interest entities (“VOEs”). For VOEs, we consolidate an entity if we have a controlling financial interest. We have a controlling financial interest in a VOE if (i) for legal entities other than partnerships, we own a majority voting interest in the entity or, for limited partnerships and similar entities, we own a majority of the entity’s kick-out rights through voting limited partnership interests and (ii) non-controlling shareholders or partners do not hold substantive participating rights, and no other conditions exist that would indicate that we do not control the entity. Interim Unaudited Financial Data Our consolidated financial statements reflect all adjustments, which are, in our opinion, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods. Interim results of operations are not necessarily indicative of the results to be expected for the full year. These consolidated financial statements, including notes, are unaudited, exclude some of the disclosures required for annual consolidated financial statements, and should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2023. Reclassification The asset management fees and transaction and advisory fees, previously presented in their own line items for prior periods presented, have been combined into one line item, asset management revenues in the accompanying consolidated statements of operations, to be consistent with the current year presentation. The reclassification does not affect prior period’s total revenues or net income (loss). Use of Accounting Estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. These estimates are made and evaluated on an ongoing basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ significantly from those estimates. Cash Cash includes cash in bank accounts. The Company deposits cash with several high-quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company (“FDIC”) up to an insurance limit of $250,000. At times, the Company’s cash balances may exceed FDIC limits. Although the Company bears risk on amounts in excess of those insured by the FDIC, it has not experienced and does not anticipate any losses due to the high quality of the institutions where the deposits are held. Restricted Cash Restricted cash consists of held in escrow accounts by contractual agreement with lenders as part of financial loan covenant requirements. Investments in Unconsolidated Entities If an entity is not a VIE, our determination of the appropriate accounting method with respect to our investments in limited liability companies and other investments is based on voting control. For our managing member interests in limited liability companies, we are presumed to control (and therefore consolidate) the entity, unless the other limited partners have substantive rights that overcome this presumption of control. These substantive rights allow the limited partners to remove the general partner with or without cause or to participate in significant decisions made in the ordinary course of the entity’s business. We account for our non-controlling investments in these entities under the equity method. Our investments in unconsolidated subsidiaries in which we have the ability to exercise significant influence over operating and financial policies, but do not control, or entities which are VIE in which we are not the primary beneficiary are accounted for under the equity method. The equity method of accounting requires the investment to be initially recorded at cost and subsequently adjusted for the Company’s share of equity in the equity method investment’s earnings and distributions. Our share of the earnings or loss from equity method investments is included in other income (expenses), net on the accompanying consolidated statements of operations. Our determination of the appropriate accounting treatment for an investment in a subsidiary requires judgment of several factors including the size and nature of our ownership interest and the other owners’ substantive rights to make decisions for the entity. If we were to make different judgments or conclusions as to the level of our control or influence, it could result in a different accounting treatment. Consolidating an investment generally would have no impact on our net income or stockholders’ deficit attributable to CaliberCos Inc. in any accounting period, but a different treatment would impact individual income statement and balance sheet line items, as consolidation would effectively “gross up” our statement of operations and balance sheet. As of March 31, 2024 and December 31, 2023, the carrying amount of our investments in unconsolidated entities was $9.7 million and $3.3 million, respectively. During the three months ended March 31, 2024, the Company deconsolidated the Caliber Hospitality Trust and Caliber Hospitality, LP, which included activity from six hospitality funds. At which time, the Company’s investment in the Caliber Hospitality Trust and Caliber Hospitality, LP were no longer eliminated and are included in investments in unconsolidated entities in the accompanying consolidated balance sheet as of March 31, 2024. See Note 3 – VIEs. In certain situations, the Company has invested only a nominal amount of cash, or no cash at all, into a venture. As the manager of the venture, we are entitled to 15.0% – 35.0% of the residual cash flow produced by the venture after the payment of any priority returns. Under the equity method, impairment losses are recognized upon evidence of other-than-temporary losses of value. For the three months ended March 31, 2024 and 2023, the Company had no impairment losses related to its investments in unconsolidated entities. Depreciation and Amortization Expense Depreciation expense includes costs and costs associated with building and building improvements, which are depreciated over the estimated useful life of the respective asset, generally 15 to 40 years. Depreciation expense also includes costs associated with the purchase of furniture and equipment and office leasehold improvements which are recorded at cost. Furniture and equipment costs are depreciated using the straight-line method over the estimated useful life of the asset, generally 3 to 7 years beginning in the first full month the asset is placed in service. Intangible lease assets are amortized using the straight-line method over the shorter of the respective estimated useful life or the lease term. For each of the three months ended March 31, 2024 and 2023, depreciation expense for the Company was $0.1 million. Impairment of Long-Lived Assets Real estate and other long-lived assets to be held and used are stated at cost, less accumulated depreciation and amortization, unless the carrying amount of the asset is determined not to be recoverable. If events or circumstances indicate that the carrying amount of a long-lived asset may not be recoverable, we make an assessment of its recoverability by comparing the carrying amount to our estimate of the undiscounted net future cash flows resulting from the use of the asset, excluding interest charges. If the carrying amount exceeds the aggregate undiscounted future cash flows, we recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the asset. For the three months ended March 31, 2024 and 2023, the Company had no impairment losses related to its real estate and other long-lived assets. Concentration of Credit Risk Substantially all of the Company’s revenues are generated from the management, ownership and/or operations of real estate assets located in Alaska, Arizona, Colorado, and Texas . Th e Company mitigates the associated risk by: • diversifying our investments in real estate assets across multiple asset types, including hospitality, commercial, single-family, multi-family, and self-storage properties; • diversifying our investments in real estate assets across multiple geographic locations including different markets and sub-markets in which our real estate assets are located; • diversifying our investments in real estate assets across assets at differing points of stabilization, and in varying states of cash flow optimization; and • maintaining financing relationships with a diversified mix of lenders (differing size and type), including large national banks, local community banks, private equity lenders, and insurance companies. Noncontrolling Interests in Consolidated Real Estate Partnerships We report the unaffiliated partners’ interests in the net assets of our consolidated real estate partnerships as noncontrolling interests within the accompanying consolidated statements of changes in stockholders’ equity. Noncontrolling interests consist of equity interests held by limited partners in consolidated real estate partnerships. We attribute to noncontrolling interests their share of income or loss of the consolidated partnerships based on their proportionate interest in the results of operations of the partnerships, including their share of losses even if such attribution results in a deficit noncontrolling interest balance within our equity and partners’ capital accounts. The terms of the partnership agreements generally require the partnerships to be liquidated following the sale of the underlying real estate assets. As the general partner in these partnerships, we ordinarily control the execution of real estate sales and other events that could lead to the liquidation, redemption or other settlement of noncontrolling interests. The terms of certain partnership agreements outline differing classes of equity ownership, some of which are redeemable by the partnership at the partnership manager’s discretion. Revenue Recognition In accordance with the Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”), management applies the five-step framework in determining the timing and amount of revenue to recognize. This framework requires an entity to: (i) identify the contract(s) with customers, (ii) identify the performance obligations within the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations within the contract, and (v) recognize revenue when or as the entity satisfies a performance obligation. Revenues from contracts with customers includes fixed fee arrangements with related party affiliates to provide certain associated activities which are ancillary to and generally add value to the assets we manage, such as set-up and fund formation services associated with marketing, soliciting, and selling member interests in the affiliated limited partnerships, brokerage services, construction and development management services, loan placement and guarantees. The recognition and measurement of revenue is based on the assessment of individual contract terms. For performance obligations satisfied at a point in time, there are no significant judgments made in evaluating when the customer obtains control of the promised service. For performance obligations satisfied over time, significant judgment is required to determine how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on appropriate measurement of the Company’s progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. Transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Variable consideration is included in the estimated transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur or when the uncertainty associated with the variable consideration is resolved. The Company’s estimates of variable consideration and determination of whether to include estimated amounts in transaction price are based largely on an assessment of its anticipated performance and all information that is reasonably available to the Company. Revenues are recognized when control of the promised services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The following describes the Company’s revenue recognition policy related to the fees the Company earns from providing services under its asset management platform: Fund set-up fees are a one-time fee for the initial formation, administration, and set-up of the private equity real estate fund. These fees are recognized at the point in time when the performance under the contract is complete and are included in asset management revenues in the accompanying consolidated statements of operations. Fund set-up fees replaced fund formation fees that are earned at a point in time at a fixed rate based on the amount of capital raised into certain managed funds. Fund management fees are generally based on 1.0% to 1.5% of the unreturned capital contributions in a particular fund and include reimbursement for costs incurred on behalf of the fund, including an allocation of certain overhead costs. These customer contracts require the Company to provide management services, representing a performance obligation that the Company satisfies over time. With respect to the Caliber Hospitality Trust, the Company earns a fund management fee of 0.7% of the Caliber Hospitality Trust’s enterprise value and is reimbursed for certain costs incurred on behalf of the Caliber Hospitality Trust. These revenues are included in asset management revenues in the accompanying consolidated statements of operations. Financing fees are earned for services the Company performs in securing third-party financing on behalf of our private equity real estate funds. These fees are recognized at the point in time when the performance under the contract is complete, which is essentially upon closing of a loan. In addition, the Company earns fees for guaranteeing certain loans, representing a performance obligation that the Company satisfies over time. These revenues are included in asset management revenues in the accompanying consolidated statements of operations. Development and construction revenues from contracts with customers include fixed fee arrangements with related party affiliates to provide real estate development services as their principal developer, which include managing and supervising third-party developers and general contractors with respect to the development of the properties owned by the funds. Revenues are generally based on 4.0% of the total expected costs of the development or 4.0% of the total expected costs of the construction project. Prior to the commencement of construction, development fee revenue is recognized at a point in time as the related performance obligations are satisfied and the customer obtains control of the promised service, including negotiation, due diligence, entitlements, planning, and design activities. During the construction period, development fee revenue is recognized over time as the performance obligations are satisfied. These revenues are included in asset management revenues in the accompanying consolidated statements of operations. Brokerage fees are earned at a point in time at fixed rates for services performed related to acquisitions, dispositions, leasing, and financing transaction, and are included in asset management revenues in the accompanying consolidated statements of operations. Performance allocations are an arrangement in which we are entitled to an allocation of investment returns, generated within the investment funds which we manage, based on a contractual formula. We typically receive 15.0% to 35.0% of all cash distributions from (i) the operating cash flow of each fund, after payment to the related fund investors of any accumulated and unpaid priority preferred returns and repayment of preferred capital contributions; and (ii) the cash flow resulting from the sale or refinance of any real estate assets held by each fund, after payment to the related fund investors of any accumulated and unpaid priority preferred returns and repayment of initial preferred capital contributions. Our funds’ preferred returns range from 6.0% to 12.0%, typically 6.0% for common equity or 10.0% to 12.0% for preferred equity, which does not participate in profits. Performance allocations are related to services which have been provided and are recognized when it is determined that they are no longer probable of significant reversal, which is generally satisfied when an underlying fund investment is realized or sold. These revenues are included in performance allocations in the accompanying consolidated statements of operations. Leases Lessor At the inception of a new lease arrangement, including new leases that arise from amendments, the Company assesses the terms and conditions to determine the proper lease classification. When the terms of a lease effectively transfer control of the underlying asset, the lease is classified as a sales-type lease. When a lease does not effectively transfer control of the underlying asset to the lessee, but the Company obtains a guarantee for the value of the asset from a third party, the Company classifies the lease as a direct financing lease. All other leases are classified as operating leases. The Company did not have any sales-type or direct financing leases as of March 31, 2024 and December 31, 2023. For operating leases with minimum scheduled rent increases, the consolidated funds recognize rental revenue on a straight-line basis, including the effect of any free rent periods, over the lease term when collectability of lease payments is probable. Variable lease payments are recognized as rental revenue in the period when the changes in facts and circumstances on which the variable lease payments are based occur. The Company identified two separate lease components as follows: i) land lease component, and ii) single property lease component comprised of building, land improvements and tenant improvements. The Company’s leases also contain provisions for tenants to reimburse the consolidated funds for maintenance and other property operating expenses, which are considered to be non-lease components. The Company elected the practical expedient to combine lease and non-lease components and the non-lease components will be included with the single property lease component as the predominant component. Lessee To account for leases for which the Company is the lessee, contracts must be analyzed upon inception to determine if the arrangement is, or contains, a lease. A lease conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification tests and measurement procedures are performed at the lease commencement date. The lease liability is initially measured as the present value of the lease payments over the lease term, discounted using the interest rate implicit in the lease, if that rate is readily determinable; otherwise, the lessee’s incremental borrowing rate is used. The incremental borrowing rate is determined based on the estimated rate of interest that the lessee would pay to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The lease term is the noncancelable period of the lease and includes any renewal and termination options the Company is reasonably certain to exercise. The lease liability balance is amortized using the effective interest method. The lease liability is remeasured when the contract is modified, upon the resolution of a contingency such that variable payments become fixed or if the assessment of exercising an extension, termination or purchase option changes. The right-of-use (“ROU”) asset balance is initially measured as the lease liability amount, adjusted for any lease payments made prior to the commencement date, initial direct costs, estimated costs to dismantle, remove, or restore the underlying asset and incentives received. The Company’s impairment assessment for ROU assets is consistent with the impairment analysis for the Company's other long-lived assets and is reviewed quarterly. Segments Historically, the Company’s operations were organized into three reportable segments, fund management, development, and brokerage. During the three months ended March 31, 2024, the Company reevaluated its reportable segments, considering (i) the evolution of the Company after closing its initial public offering and how the Company’s chief operating decision maker (“CODM”), the Company’s Chief Executive Officer, assesses performance and allocates resources, (ii) changes to the budgeting process and in key personnel driven by the Company’s growth initiatives, and (iii) how management reports ongoing company performance to the Board of Directors. With the evolution and growth of the Company, the Company’s CODM assesses performance and resource allocation on an aggregate basis under the Company’s asset management platform, and no longer reviews operating results for development or brokerage activity separately. As such, management concluded that the Company operates through one operating segment. The Company’s CODM assesses revenue, operating expenses and key operating statistics to evaluate performance and allocate resources on a basis that eliminates the impact of the consolidated investment funds (intercompany eliminations required by U.S. GAAP) and noncontrolling interests. Management concluded that the consolidated investment funds do not meet the requirements in ASC 280, Segment Reporting, of operating segments, as The Company’s CODM does not review the operating results of these investment funds for the purposes of allocating resources, assessing performance or determining whether additional investments or advances will be made to these funds. The investment funds are consolidated based on the requirement in ASC 810, Consolidation, as the Company was determined to be the primary beneficiary of each of these variable interest entities since it has the power to direct the activities of the entities and the right to absorb losses, generally in the form of guarantees of indebtedness that are significant to the individual investment funds. Accounting Policies of Consolidated Funds Accounting for Real Estate Investments Upon the acquisition of real estate properties, a determination is made as to whether the acquisition meets the criteria to be accounted for as an asset acquisition or a business combination. The determination is primarily based on whether the assets acquired, and liabilities assumed meet the definition of a business. The determination of whether the assets acquired, and liabilities assumed meet the definition of a business includes a single or similar asset threshold. In applying the single or similar asset threshold, if substantially all the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the assets acquired, and liabilities assumed are not considered a business. Most of our consolidated fund acquisitions meet the single or similar asset threshold, due to the fact that substantially all the fair value of the gross assets acquired is attributable to the real estate assets acquired. Acquired real estate properties accounted for as asset acquisitions are recorded at cost, including acquisition and closing costs. Our consolidated funds allocate the cost of real estate properties to the tangible and intangible assets and liabilities acquired based on their estimated relative fair values. Our consolidated funds determine the fair value of tangible assets, such as land, building, furniture, fixtures and equipment, using a combination of internal valuation techniques that consider comparable market transactions, replacement costs and other available information and fair value estimates provided by third-party valuation specialists, depending upon the circumstances of the acquisition. Our consolidated funds determine the fair value of identified intangible assets or liabilities, which typically relate to in-place leases, using a combination of internal valuation techniques that consider the terms of the in-place leases, current market data for comparable leases, and fair value estimates provided by third-party valuation specialists, depending upon the circumstances of the acquisition. If a transaction is determined to be a business combination, the assets acquired, liabilities assumed, and any identified intangibles are recorded at their estimated fair values on the transaction date, and transaction costs are expensed in the period incurred. Cost Capitalization and Depreciation Our consolidated funds capitalize costs, including certain indirect costs, incurred in connection with their development and construction activities. Included in these capitalized costs are payroll costs associated with time spent by site employees in connection with capital addition activities at the asset level. Interest, property taxes and insurance are also capitalized during periods in which redevelopment, development and construction projects are in progress. Capitalization of costs, including certain indirect costs, incurred in connection with our capital addition activities, commence at the point in time when activities necessary to get the assets ready for their intended use are in progress. This includes when assets are undergoing physical construction, as well as when apartment homes are held vacant in advance of planned construction, provided that other activities such as permitting, planning and design are in progress. Our consolidated funds cease the capitalization of costs when the assets are substantially complete and ready for their intended use, which is typically when construction has been completed and apartment homes or other properties are available for occupancy. Cost of ordinary repairs, maintenance and resident turnover are charged to operating expense, as incurred. Depreciation for all tangible real estate assets is calculated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of our real estate assets are as follows: Building and building improvements 15 – 40 years Furniture, fixtures, and equipment 3 – 7 years For the three months ended March 31, 2024 and 2023, depreciation expense was $2.1 million and $2.4 million, respectively. Impairment of Long-Lived Assets Real estate and other long-lived assets to be held and used are stated at cost, less accumulated depreciation and amortization, unless the carrying amount of the asset is determined to not be recoverable. If events or circumstances indicate that the carrying amount of a long-lived asset may not be recoverable, we make an assessment of its recoverability by comparing the carrying amount to our estimate of the undiscounted net future cash flows resulting from the use of the asset, excluding interest charges. If the carrying amount exceeds the aggregate undiscounted future cash flows, our consolidated funds recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the asset. For the three months ended March 31, 2024 and 2023, our consolidated funds did not record an impairment loss related to its real estate and other long-lived assets. Cash Cash includes cash in bank accounts. The consolidated funds deposit cash with several high-quality financial institutions. These deposits are guaranteed by the FDIC up to an insurance limit of $250,000. At times, cash balances may exceed FDIC limits. Although the consolidated funds bear risk on amounts in excess of those insured by the FDIC, they have not experienced and do not anticipate any losses due to the high quality of the institutions where the deposits are held. Restricted Cash Restricted cash consists of tenant security deposits and cash reserves required by certain loan agreements for capital improvements and repairs. As improvements and repairs are completed, related costs incurred by the consolidated funds are funded from the reserve accounts. Restricted cash also includes cash held in escrow accounts by mortgage companies on behalf of the consolidated funds for payment of property taxes, insurance, and interest. Consolidated Fund Revenues In accordance with ASC 606, our consolidated funds apply the five-step framework in determining the timing and amount of revenue to recognize. This framework requires an entity to: (i) identify the contract(s) with customers, (ii) identify the performance obligations within the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations within the contract, and (v) recognize revenue when or as the entity satisfies a performance obligation. Our consolidated funds’ revenues primarily consist of hospitality revenues, rental income and interest income. Consolidated funds – hospitality revenue Hospitality revenues are comprised of charges for room rentals, food and beverage sales, and other hotel operating activities. Revenues are recognized as earned, which is defined as the date upon which a guest occupies a room or utilizes the hotel’s services. Revenues are recorded net of sales tax. Our consolidated funds have performance obligations to provide accommodations and other ancillary services to hotel guests. As compensation for such goods and services, the consolidated funds are typically entitled to a fixed nightly fee for an agreed upon period and additional fixed fees for any ancillary services purchased. These fees are generally payable at the time the hotel guest checks out of the hotel. The consolidated funds generally satisfy the performance obligations over time and recognize the revenue from room sales and from other ancillary guest |
VIEs
VIEs | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VIEs | VIEs During the three months ended March 31, 2023, the Company (i) deconsolidated five hospitality funds that were contributed to Caliber Hospitality, LP, whose sole general partner is the Caliber Hospitality Trust and (ii) consolidated Caliber Hospitality, LP and the Caliber Hospitality Trust, which included activity from the five previously consolidated hospitality funds and one previously unconsolidated fund because the Company was determined to be the primary beneficiary as it had the power to direct the activities and the obligation to absorb their losses through its guarantee of the indebtedness secured by the hospitality assets, which was significant to the Caliber Hospitality Trust and Caliber Hospitality, LP. In addition, the Company consolidated West Frontier Holdco, LLC (“West Frontier”) during the three months ended March 31, 2023, as the Company was determined to be the primary beneficiary as the Company has the power to direct the activities of West Frontier and the obligation to absorb their losses through its guarantee of their indebtedness, which is significant to the fund. No additional VIEs were consolidated during the three months ended March 31, 2024. The consolidation of the Caliber Hospitality Trust, Caliber Hospitality, LP, and West Frontier consisted of the following, excluding intercompany eliminations at the time of consolidation (in thousands): Assets Real estate investments, net $ 87,897 Cash 3,667 Restricted cash 9,260 Accounts receivable, net 4,348 Notes receivable - related parties 10,411 Due from related parties 40 Investments in unconsolidated entities 84,076 Operating lease - right of use assets 8,775 Prepaid and other assets 5,953 Total assets $ 214,427 Liabilities Notes payable, net $ 80,278 Notes payable - related parties 34,786 Accounts payable and accrued expenses 7,858 Due to related parties 10,302 Operating lease liabilities 12,441 Other liabilities 2,158 Total liabilities 147,823 Stockholders’ equity 66,604 Total liabilities and stockholders’ equity $ 214,427 On March 7, 2024, L.T.D. Hospitality Group LLC (“L.T.D.”) contributed the first of nine committed hotels from L.T.D.’s portfolio to Caliber Hospitality, LP in exchange for $5.7 million in cash, $9.6 million in operating partnership units, and a new $14.1 million loan facility. Upon this reconsideration event, the Company reconsidered its consolidation conclusion, given the change in economics, and concluded that it was no longer the primary beneficiary, as its potential obligation to absorb the losses, through its guarantee of the indebtedness secured by the hospitality assets, were no longer significant to Caliber Hospitality, LP or the Caliber Hospitality Trust. As such, during the three months ended March 31, 2024, the Company deconsolidated Caliber Hospitality, LP, the Caliber Hospitality Trust, and their consolidated subsidiaries. The Company aggregates and reports the results of operations of these VIEs in consolidated fund revenues and consolidated fund expenses within the accompanying consolidated statements of operations through the date of deconsolidation. Management has determined that the equity holders in our consolidated entities, as a group, lack the power to direct the activities that most significantly impact the entity’s economic performance and/or have disproportionate voting rights relative to their equity. The Company was determined to be the primary beneficiary of each of these entities since it has the power to direct the activities of the entities and the right to absorb losses, generally in the form of guarantees of indebtedness that are significant to the individual entities. Generally, the assets of the individual consolidated VIEs can be used only to settle liabilities of each respective individual consolidated VIEs and the liabilities of the individual consolidated VIEs are liabilities for which creditors or beneficial interest holders do not have recourse to the general credit of the Company. When the VIE is consolidated, we reflect the assets, liabilities, revenues, expenses and cash flows of the consolidated funds on a gross basis, and the interests in the VIEs are included in non-controlling interest in the consolidated financial statements. The Company has provided financial support to certain consolidated VIEs in the form of short-term financing and guarantees of the debts of certain VIEs. In general, our maximum exposure to loss due to involvement with the consolidated VIEs is limited to the amount of capital investment in the VIE, if any, or the potential obligation to perform on the guarantee of debts. |
Real Estate Investments
Real Estate Investments | 3 Months Ended |
Mar. 31, 2024 | |
Real Estate [Abstract] | |
Real Estate Investments | Real Estate Investments Real Estate Investments of the Company Asset Acquisitions There were no asset acquisitions by the Company during the three months ended March 31, 2024. During the three months ended March 31, 2023, the Company acquired its headquarters office building for an aggregate purchase price of $19.5 million with the acquisition being accounted for as an asset acquisition under U.S. GAAP. The allocation of the purchase price among the assets acquired at their relative fair value as of the acquisition date, consisted of the following for the three months ended March 31, 2023 (in thousands): Three Months Ended March 31, 2023 Real estate investments, at cost Land and land improvements $ 9,131 Building and building improvements 9,332 Furniture, fixtures and equipment 959 Intangible lease assets 398 Intangible lease liabilities (348) Total purchase price of assets acquired $ 19,472 Real Estate Investments of the Consolidated Funds Asset Acquisitions by Consolidated Funds There were no asset acquisitions by the consolidated funds during the three months ended March 31, 2024. During the three months ended March 31, 2023, the consolidated funds acquired one multi-family residential property for an aggregate purchase price of $6.6 million with the acquisition being accounted for as an asset acquisition under U.S. GAAP. The allocation of the purchase price among the assets acquired at their relative fair value as of the acquisition date, consisted of the following for the three months ended March 31, 2023 (in thousands): Three Months Ended March 31, 2023 Real estate investments, at cost Land and land improvements $ 599 Building and building improvements 6,044 Total purchase price of assets acquired $ 6,643 |
Prepaid and Other Assets
Prepaid and Other Assets | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid and Other Assets | Prepaid and Other Assets Prepaid and Other Assets of the Company Prepaid and other assets consisted of the following as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 December 31, 2023 Pursuit costs (1) $ 639 $ 1,081 Prepaid expenses 1,127 981 Accounts receivable, net 572 205 Deposits 63 63 Other assets 487 451 Total prepaid and other assets $ 2,888 $ 2,781 (1) Pursuit costs represent expenses incurred related to new fund formation, primarily for professional, legal, consulting, accounting and tax services. As the funds raise equity investments and operating cash flow, as applicable, these costs are reimbursed by the respective funds to the Company. The Company assesses collectability and expenses any amounts in which collectability is not reasonably assured. Prepaid and Other Assets of the Consolidated Funds Prepaid and other assets of the consolidated funds consisted of the following as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 December 31, 2023 Derivative assets $ 1,401 $ 1,216 Prepaid expenses 739 1,735 Deposits 98 669 Pursuit costs (1) 1,174 1,102 Deferred franchise fees, net 64 278 Intangibles, net — 184 Inventory 44 142 Other assets (2) 259 6,351 Total prepaid and other assets $ 3,779 $ 11,677 __________________________________ (1) Pursuit costs represent expenses incurred related to new fund formation, primarily for professional, legal, consulting, accounting and tax services. As the funds raise equity investments and operating cash flow, as applicable, these costs are reimbursed by the respective funds to the Company. The Company assesses collectability and expenses any amounts in which collectability is not reasonably assured. |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Notes Payable | Notes Payable Notes Payable of the Company Notes payable consisted of the following as of March 31, 2024 and December 31, 2023 (in thousands): Notes Payable March 31, 2024 December 31, 2023 Weighted Average Interest Rate (1) Maturity Date (1) Corporate notes $ 35,392 $ 36,442 11.40 % January 2024 - March 2025 Convertible corporate notes 1,324 1,324 8.25 % April 2024 Real estate and other loans 16,454 16,252 5.61 % August 2024 - November 2029 Total notes payable 53,170 54,018 Deferred financing costs, net (218) (219) Total notes payable, net $ 52,952 $ 53,799 __________________________________ (1) As of March 31, 2024. Real Estate Loans The terms of the loan agreements described below include, among other things, certain financial covenants, as defined in the respective loan agreements, including key financial ratios and liquidity requirements. Gateway II HoldCo, LLC On January 31, 2023, Caliber assumed a loan which is secured by the Company’s headquarters office building (see Note 4 – Real Estate Investments). The terms of the note require monthly principal and interest payments, with a balloon payment due at maturity. The loan has a fixed interest rate of 4.30% in effect through the maturity date in November 2029. The terms of the loan do not allow the prepayment of the outstanding balance in part or in whole at any time prior to the maturity date. The terms of the loan agreement include covenant clauses, which require certain key financial ratios and liquidity be met. As of March 31, 2024 and December 31, 2023, the outstanding principal balance of the loan was $16.1 million and $16.2 million, respectively. As of March 31, 2024, the debt service coverage ratio required by the loan agreement was not satisfied, which per the terms of the agreement required the Company to transfer funds to a cash management account. Corporate Notes and Convertible Corporate Notes The Company has entered into multiple general corporate financing arrangements with third parties. The arrangements are generally evidenced in the form of a promissory note and require monthly or quarterly interest-only payments until maturity. Certain corporate notes are secured by the otherwise unencumbered assets of the Company. The loans generally have a 12-month term and may be extended upon the mutual agreement of the lender and the borrower. Management believes it can come to a mutual agreement with each lender to extend the maturities of the notes for an additional 12-month term. As of March 31, 2024, there were 220 individual corporate notes outstanding, with an average outstanding principal balance of $0.2 million, interest rates ranging from 8.25% to 12.00%, with weighted average interest rate of 11.40%, and maturity dates ranging from January 2024 to March 2025. During the three months ended March 31, 2024, there were no conversions of debt into common stock. In April 2024, the Company entered into a loan extension agreement with certain corporate note holders to extend the respective maturity dates of multiple individual corporate notes, aggregating $12.3 million, for an additional 13 months, resulting in maturity dates of these corporate notes ranging from May 2025 to April 2026. As of May 9, 2024, an aggregate of $36.4 million of corporate and convertible notes mature within the 12-month period subsequent to when these financial statements were issued. As of December 31, 2023, there were 222 individual corporate notes outstanding, with an average outstanding principal balance of $0.2 million, interest rates ranging from 8.25% to 12.00%, with a weighted average interest rate of 11.42%, and maturity dates ranging from January 2024 to March 2025. The Company has issued corporate notes with a conversion feature. The conversion price is $7.57 per share of common stock. The holders of the convertible corporate notes can elect to convert all or any portion of the balance at any time. As of March 31, 2024 and December 31, 2023, the value of the conversion feature was zero. Future Minimum Payments The following table summarizes the scheduled principal repayments of our indebtedness as of March 31, 2024 (in thousands): Year Amount April 1, 2024 - December 31, 2024 $ 23,106 2025 14,421 2026 304 2027 317 2028 330 Thereafter 14,692 Total $ 53,170 Deferred Financing Costs Amortization of deferred financing costs for the Company was an immaterial amount and there were no deferred financing cost write-offs during each of the three months ended March 31, 2024 and 2023. Notes Payable of the Consolidated Funds Notes payable of the consolidated funds consisted of the following as of March 31, 2024 and December 31, 2023, respectively (in thousands): Notes Payable March 31, 2024 December 31, 2023 Interest Rate (1) Maturity date (1) Real Estate Loans Hampton Inn & Suites Hotel $ — (3) $ 5,939 N/A N/A Four Points by Sheraton Hotel (2) 10,700 11,000 18.00% September 2023 Holiday Inn Ocotillo Hotel — (3) 9,250 N/A N/A Airport Hotel Portfolio — (3) 55,631 N/A N/A DoubleTree by Hilton Tucson Convention Center 18,306 18,418 4.22% August 2027 Hilton Tucson East — (3) 11,901 N/A N/A DT Mesa Holdco II, LLC 3,000 3,000 7.28% May 2024 Southpointe Fundco, LLC 1,050 1,050 11.99% September 2024 West Frontier Holdco, LLC 4,636 4,636 6.35% February 2038 Total Real Estate Loans 37,692 120,825 Revolving line of credit 4,500 4,500 8.75% October 2024 Member notes 5,600 5,600 10.00% June 2025 Economic injury disaster and other loans 150 475 3.75% June 2050 Total notes payable 47,942 131,400 Deferred financing costs, net (288) (1,716) Total notes payable, net $ 47,654 $ 129,684 __________________________________ (1) As of March 31, 2024. (2) During the year ended December 31, 2023, the hotel ceased operations as the consolidated fund is converting the property into a multi-family residential asset. (3) During the three months ended March 31, 2024, the Company deconsolidated Caliber Hospitality, LP and the Caliber Hospitality Trust, which included activity from six hospitality funds. Real Estate Loans The terms of the loan agreements described below include, among other things, certain financial covenants, as defined in the respective loan agreements, including key financial ratios and liquidity requirements. Unless otherwise noted below, the consolidated funds were in compliance with the required financial covenants as of March 31, 2024. Hampton Inn & Suites Hotel In July 2015, the previously consolidated fund entered into a loan agreement which is secured by a deed of trust and assignment of leases and rents of a hotel property in Scottsdale, Arizona. The terms of the note require monthly principal and interest payments, with a balloon payment due at maturity. The loan has a fixed interest rate of 6.12% in effect through the maturity date in July 2025. The loan is guaranteed by an individual who is an affiliate of the Company. During the three months ended March 31, 2024, the Company deconsolidated Hampton Inn & Suites Hotel (as discussed in Note 3 – VIEs). Four Points by Sheraton Hotel In June 2018, the consolidated fund entered into a loan agreement which is secured by a deed of trust and assignment of leases and rents of a hotel property in Phoenix, Arizona. The loan requires monthly interest-only payments until maturity. The loan is guaranteed by the Company and matured in September 2023. Per the terms of this agreement, the interest rate on the loan is equal to US Prime Rate plus 2.25%, with a floor rate of 9.65%, until August 31, 2023, at which time, the interest rate increased to 18% until the loan is paid in full or replaced with construction financing from the lender. In April 2024, the consolidated fund paid the loan amount outstanding in full. In April 2024, the consolidated fund entered into a $19.1 million construction loan agreement, which is secured by a deed of trust of the Four Points by Sheraton Hotel. Per the terms of the agreement, the loan has interest at a variable rate equal to SOFR plus 6.140%, with a floor rate of 12.65% until maturity in October 2025. The loan requires monthly interest-only payments until maturity and the loan may be prepaid in whole or in part without premium or penalty. The loan is guaranteed by an individual who is an affiliate of the Company. Holiday Inn Ocotillo Hotel In July 2018, the previously consolidated fund entered into a loan agreement which is secured by a deed of trust and assignment of leases and rents of a hotel property in Chandler, Arizona. The loan requires monthly interest-only payments. The interest rate on the loan is equal to 1-month LIBOR plus 6.00%, with a floor rate of 11.00% until maturity in May 2023. In May 2023, the loan agreement was amended and restated with the lender, extending the maturity date to November 2023 and amending the interest rate to SOFR plus 600 basis points, with a floor rate of 11.00%. In November 2023, the loan agreement was amended with the lender, extending the maturity date to February 2024. In February 2024, the loan agreement was amended with the lender, extending the maturity date to May 2024. The loan is guaranteed by the Company. During the three months ended March 31, 2024, the Company deconsolidated Holiday Inn Ocotillo Hotel (as discussed in Note 3 – VIEs). Airport Hotel Portfolio In September 2018, the previously consolidated fund entered into a portfolio loan agreement which was secured by a deed of trust and assignment of leases and rents of the Airport Hotel Portfolio. The loan had a variable interest rate equal to one-month LIBOR plus 3.75% and the loan required interest-only payments until maturity. The loan was guaranteed by the Company and individuals who are affiliates of the Company. In January 2023, the consolidated fund paid the loan amount outstanding in full. In January 2023, the previously consolidated fund entered into a loan agreement which is secured by a deed of trust and assignment of leases and rents of the Airport Hotel Portfolio. Per the terms of the loan agreement, the loan has a variable interest rate equal to SOFR plus 8.75% and matures in January 2025. In connection with the loan, the consolidated fund entered into an interest rate cap agreement, which sets the maximum SOFR rate for the loan at 5.00% through January 2024. The loan requires interest-only payments until maturity. The terms of the loan do not allow the prepayment of the outstanding balance in part prior to the maturity date but can be prepaid in whole subject to certain conditions, terms and fees outlined in the loan agreement. The terms of the loan agreement require an exit fee equal to 1.25% of the original principal amount of the loan and a minimum return equal to 30.0% of the original principal amount of the loan less any interest payments made at the time the loan is repaid in full. The exit fee was accrued upon entering into the loan and recorded as a deferred financing cost to be amortized over the life of the loan. The loan is guaranteed by the Company and individuals who are affiliates of the Company. During the three months ended March 31, 2024, the Company deconsolidated the Airport Hotel Portfolio (as discussed in Note 3 – VIEs). DoubleTree by Hilton Tucson Convention Center In August 2019, the consolidated fund entered into a loan agreement which is secured by a deed of trust and assignment of rents of the DoubleTree by Hilton Tucson Convention Center located in Tucson, Arizona. The loan has a variable interest rate per annum equal to LIBOR plus 2.50%. In connection with the loan, the consolidated fund entered into an interest rate swap agreement, which sets the interest at a fixed rate of 4.22% from September 2022 through August 2027. The loan required interest-only payments until September 2022 and principal and interest payments thereafter until maturity. The terms of the loan allow for the prepayment of the outstanding balance in whole or in part at any time prior to the maturity date. The loan matures in August 2027 and is guaranteed by the Company. In May 2024, the consolidated fund terminated the interest rate swap agreement and received $1.6 million. Hilton Tucson East In November 2021, the previously consolidated fund entered into a loan agreement which is secured by the deed of trust and assignment of rents of the Hilton Tucson East hotel located in Tucson, AZ. The loan has a fixed interest rate of 6.25% and matures in November 2025. The loan required interest-only payments until June 1, 2023 and principal and interest payments thereafter until maturity. The loan amount may be prepaid prior to maturity subject to certain conditions and terms and a prepayment fee as outlined in the agreement. During the three months ended March 31, 2024, the Company deconsolidated the Hilton Tucson East (as discussed in Note 3 – VIEs). DT Mesa Holdco II, LLC In November 2019, the consolidated fund entered into a loan agreement which is secured by the deed of trust of a commercial building in Mesa, Arizona. The loan requires interest-only payments until maturity and the terms of the loan allow the prepayment of the outstanding balance in part or in whole at any time prior to the maturity date with no prepayment penalty. In December 2022, the terms of the loan agreement were renegotiated, extending the maturity date of the loan to November 2023 and amending the interest rate to the greater of (i) the federal home loan bank rate plus 2.75%% or (ii) 6.50%. In November 2023, the loan agreement was amended with the lender, extending the maturity date to February 2024. In February 2024, the loan agreement was amended with the lender, extending the maturity date to May 7, 2024 and waiving the minimum liquidity covenant default. The Company is within the 30-day grace period and expects to extend the maturity date of the loan by 90 days. Southpointe Fundco, LLC In June 2022, the consolidated fund entered into a loan agreement which is secured by a deed of trust and assignment of rents of a residential development property in Phoenix, Arizona. The loan has a fixed rate per annum equal to 9.99%. In May 2023, an extension agreement was executed with the lender, extending the maturity date to December 2023. In November 2023, an extension agreement was executed with the lender, extending the maturity date to March 2024 and amending the interest to a fixed rate of 11.99%. In February 2024, an extension agreement was executed with the lender, extending the maturity date to September 2024. The terms of the loan allow the prepayment of the outstanding balance in part or in whole at any time prior to the maturity date with no prepayment penalty. The loan is guaranteed by an individual who is an affiliate of the Company. West Frontier Holdco, LLC In March 2023, the consolidated fund entered into a construction loan agreement which is secured by a deed of trust and assignment of rents of a multi-family residential property in Payson, Arizona. Upon completion of the construction project, subject to conditions in the agreement, the loan converts to a term loan. The loan requires interest-only payments until March 2025 and principal and interest payments until March 2028, at a fixed interest rate of 6.35%. In April 2028, the loan requires principal and interest payments until maturity in February 2038, at a rate of the five year Treasury Constant Federal Reserve Index plus 2.50%. The terms of the loan allow the prepayment of the outstanding balance in part or in whole at any time prior to the maturity date with no prepayment penalty. The loan is guaranteed by individuals who are affiliates of the Company. Revolving Line of Credit In August 2019, a consolidated fund entered into a revolving line of credit (“LOC”) with a maximum borrowing amount of $4.5 million. The LOC is secured by the consolidated fund’s assets and is guaranteed by the Company. The LOC has a variable interest rate equal to the greater of (i) Wall Street Journal Prime Rate plus 0.25% per annum or (ii) 4.75%, resulting in a rate of 8.75% as of March 31, 2024. The Company is required to pay a fee of 0.20% of the unused revolving balance. In August 2023, the agreement was amended extending the maturity date of the LOC to October 2024 and removing certain restrictive covenants. The terms of the LOC include certain financial covenants and as of March 31, 2024, the consolidated fund was in compliance with all such covenants. Member Notes During 2022 and the year ended December 31, 2023, the consolidated fund, Southpointe Fundco, LLC, entered into 10.0% unsecured promissory notes with individual investors. The notes mature in June 2025 and may be extended up to two additional 12-month periods by the fund manager. The notes require quarterly interest-only payments. The terms of the notes allow the prepayment of the outstanding balance in part or in whole at any time prior to the maturity date with no prepayment penalty. Economic Injury Disaster Loans In June 2020, the consolidated funds were granted Economic Injury Disaster Loans, which are secured by the assets of the respective funds and have a fixed interest rate of 3.75 % and mature in June 2050. At March 31, 2024 and December 31, 2023, the outstanding principal balance was $0.2 million and $0.5 million, respectively. Fixed monthly installment payments began in December 2022 with payments applied first to accrued interest and then the balance, if any, will be applied to principal outstanding. The loans allow for prepayment of principal plus accrued interest prior to maturity. The loan agreements contain certain usual and customary restrictions and covenants relating to, among other things, insurance, and other indebtedness. In addition, the terms of the loans include a cross-default provision whereby the Small Business Administration may, in its discretion, without notice or demand require immediate payment of all amounts outstanding under the loans. Future Debt Maturities As of March 31, 2024, the future aggregate principal repayments due on the Company’s notes payable are as follows (in thousands): Year Amount April 1, 2024 - December 31, 2024 $ 19,594 2025 6,119 2026 555 2027 17,046 2028 66 Thereafter 4,562 Total $ 47,942 Deferred Financing Costs Amortization of deferred financing costs was $0.3 million and there were no deferred financing cost write-offs during each of the three months ended March 31, 2024 and 2023. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Related Party Transactions of the Company Revenues The table below shows the consolidated revenues earned for providing services under the Company’s asset management platform as described in the Revenue Recognition section of Note 2 – Summary of Significant Accounting Policies for the three months ended March 31, 2024 and 2023. Three Months Ended March 31, 2024 2023 Fund management fees $ 1,378 $ 1,289 Financing fees 2 78 Development and construction fees 1,531 528 Brokerage fees 259 141 Total asset management 3,170 2,036 Performance allocations 166 2,426 Total related party revenue $ 3,336 $ 4,462 As of March 31, 2024 and December 31, 2023, amounts due to the Company from related parties for services performed under the Company’s asset management platform was $7.5 million and $7.8 million, respectively, which is included in due from related parties on the accompanying consolidated balance sheets. Notes Receivable The Company entered into unsecured promissory notes with related parties. No payments are required prior to the maturity of the notes. The notes may be prepaid in whole, or in part, without penalty. The following table summarizes the notes receivable – related parties as of March 31, 2024 and December 31, 2023 (in thousands): Notes Receivable - Related Parties March 31, 2024 December 31, 2023 Interest Rate (1) Maturity Date (1) Caliber Hospitality LP (2) $ 6,749 $ — 12.00% September 2025 Olathe Behavioral Health — 25 12.00% May 2025 DFW Behavioral Health LLC — 25 14.00% May 2025 Total Notes Receivable - Related Parties $ 6,749 $ 50 __________________________________ (1) As of March 31, 2024. (2) During the three months ended March 31, 2024, the Company deconsolidated Caliber Hospitality, LP and the Caliber Hospitality Trust, which included activity from six hospitality funds. During the three months ended March 31, 2024 and 2023, the Company earned an immaterial amount of interest in connection with the notes, which is included in interest income on the accompanying consolidated statements of operations. Interest that accrues on certain related party notes receivable can be added to the principal outstanding balance, due at the respective loan maturity date and incurs interest at the respective interest rate. There was an immaterial amount of interest due to the Company as of March 31, 2024 and December 31, 2023 . Other In the normal course of business, the Company has various amounts due from and/or due to related parties, including affiliate entities and individuals, for various expenses paid for by the Company on their behalf and other charges. These amounts are generally unsecured, interest-free, and due on demand. As of March 31, 2024 and December 31, 2023, other amounts due from related parties was $1.9 million, which is included in due from related parties on the accompanying consolidated balance sheets. As of March 31, 2024 and December 31, 2023, other amounts due to related parties from the Company were $0.2 million and $0.3 million, respectively, which are included in due to related parties on the accompanying consolidated balance sheets. Related Party Transactions of the Consolidated Funds Notes Receivable The consolidated fund entered into unsecured promissory notes with related parties. The notes may be repaid in whole, or in part, without penalty. The notes receivable – related parties consisted of the following as of March 31, 2024 and December 31, 2023 (in thousands): Notes Receivable - Related Parties March 31, 2024 December 31, 2023 Interest Rate (1) Maturity Date (1) SF Alaska, LP $ 15,592 $ 14,976 12.00% May 2025 The Ketch, LLC 7,713 7,198 12.00% May 2024 Circle Lofts, LLC 1,851 1,797 12.00% May 2024 J-25 Development Group, LLC 32 4,804 12.00% May 2024 Caliber Diversified Opportunity Fund II, LP 12 109 12.00% September 2025 Ridge II, LLC 1,186 846 12.00% December 2024 Ironwood, LLC 3,564 2,703 13.00% September 2025 47th Street Phoenix Fund, LLC 87 — 12.00% May 2025 Southridge, LLC — 2,187 13.00% July 2025 Caliber Hospitality, LP (2) 10,254 — 12.00% June 2025 Blue Spruce, LLC 56 — 13.00% January 2026 Total Notes Receivable - Related Parties $ 40,347 $ 34,620 __________________________________ (1) As of March 31, 2024. (2) During the three months ended March 31, 2024, the Company deconsolidated Caliber Hospitality, LP and the Caliber Hospitality Trust, which included activity from six hospitality funds. During the three months ended March 31, 2024 and 2023, the consolidated fund earned $1.0 million and $0.9 million, respectively, of interest in connection with the notes, which is included in consolidated funds – other revenues on the accompanying consolidated statements of operations. Interest that accrues on certain related party notes receivable, in which the consolidated fund and respective borrower mutually agreed, is added to the principal outstanding balance, due at the respective loan maturity date and incurs interest at the respective interest rate. No interest was due to the Company as of March 31, 2024 and December 31, 2023. Notes Payable At December 31, 2023, Caliber Hospitality, LP had aggregate notes payable outstanding of $12.1 million to Caliber Tax Advantage Opportunity Zone Fund, LP and Caliber Tax Advantaged Opportunity Zone Fund II, LLC. During the three months ended March 31, 2024, the Company deconsolidated Caliber Hospitality, LP and the Caliber Hospitality Trust. During the three months ended March 31, 2024 and 2023, the consolidated funds incurred $0.3 million and $0.2 million, respectively, of interest expense in connection with the notes payable – related parties, which is included in consolidated funds – hospitality expenses and consolidated funds – other expenses on the accompanying consolidated statements of operations. As of December 31, 2023, there was $0.1 million of interest expense payable which is included in due to related parties on the accompanying consolidated balance sheets. Other |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases Lessor - Company Rental revenue of the Company includes the revenues generated by the rental operations of one commercial office property, which was acquired in January 2023. As of March 31, 2024, the leases have non-cancelable remaining lease terms from 0.9 years to 10.3 years. Certain leases contain options to extend the term of the lease and impose financial penalties, including paying all future payments required under the remaining term of the lease, if the tenant terminates the lease. The leases do not contain any lessee purchase options. As of March 31, 2024, the Company does not have any material related party leases as a lessor. During the three months ended March 31, 2024, there was $0.4 million and $0.1 million of fixed and variable rental revenue, respectively, which is included in other income (loss), net on the accompanying consolidated statements of operations. During the three months ended March 31, 2023, there was $0.2 million of fixed rental revenue and an immaterial amount of variable rental revenue, which is included in other income (loss), net on the accompanying consolidated statements of operations. Variable rental revenue are primarily costs reimbursed related to common area maintenance. Future minimum lease payments due to the Company under non-cancellable operating leases over the next five years and thereafter as of March 31, 2024 are as follows (in thousands): Year Amount April 1, 2024 - December 31, 2024 $ 1,092 2025 1,281 2026 1,137 2027 501 2028 224 Thereafter 1,344 Total $ 5,579 Lessor - Consolidated Funds Rental revenue of the consolidated funds includes the revenues generated primarily by the rental operations of two multi-family residential properties, including Circle Lofts, which was deconsolidated during the year ended December 2023, and two commercial properties, including Northsight Crossing, which was sold in October 2023. As of March 31, 2024, the leases have non-cancelable remaining lease terms from 0.1 years to 9.7 years. Certain leases contain options to extend the term of the lease and impose financial penalties, including paying all future payments required under the remaining term of the lease, if the tenant terminates the lease. The leases do not contain any lessee purchase options. As of March 31, 2024, the consolidated funds do not have any material related party leases as a lessor. The components of rental revenue for the three months ended March 31, 2024 and 2023 (in thousands) are presented in the table below. Variable rental revenue are primarily costs reimbursed related to common area maintenance. Three Months Ended March 31, 2024 2023 Fixed $ 294 $ 795 Variable 128 172 Total $ 422 $ 967 Future minimum lease payments due to the consolidated funds under non-cancellable operating leases over the next five years and thereafter as of March 31, 2024 are as follows (in thousands): Year Amount April 1, 2024 - December 31, 2024 $ 947 2025 887 2026 882 2027 767 2028 787 Thereafter 3,729 Total $ 7,999 |
Other Liabilities
Other Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other Liabilities of the Company Other liabilities consisted of the following as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 December 31, 2023 Below market leases, net $ 134 $ 171 Tenant improvement allowance 179 99 Deposits (1) 129 113 Other 172 37 Total other liabilities $ 614 $ 420 _________________________________ (1) Includes tenant security deposits. Other Liabilities of the Consolidated Funds Other liabilities of the consolidated funds consisted of the following as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 December 31, 2023 Advance key money, net $ — $ 825 Deposits (1) 236 531 Sales tax payable 161 674 Other 339 370 Total other liabilities $ 736 $ 2,400 ______________________________ (1) Includes hotel advance deposits and tenant security and pet deposits. |
Supplemental Cash Flow Disclosu
Supplemental Cash Flow Disclosures | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Disclosures | Supplemental Cash Flow Disclosures Supplemental cash flow information consisted of the following for the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 2023 Supplemental Disclosure of Cash Flow Information Cash paid for interest, none of which was capitalized for the three months ended March 31, 2024 and 2023, respectively $ 1,254 $ 694 Supplemental Disclosure of Cash Flow Information of Consolidated Funds Cash paid for interest, net of capitalized interest of $2 and $9 for the three months ended March 31, 2024 and 2023, respectively 3,488 2,362 Supplemental Disclosures of Non-Cash Investing and Financing Activities Increase in note receivable - related party due to deconsolidation of VIEs 6,749 — Accounts receivable - related party eliminated in consolidation of VIEs — 1,853 Increase in investments in unconsolidated entities due to deconsolidation of VIEs 6,238 — Extinguishment of operating lease right-of-use assets — 1,059 Extinguishment of operating lease liabilities — 1,340 Cost of real estate investments included in accounts payable 107 18 Issuance of common stock in lieu of cash payment for accounts payable 36 — Supplemental Disclosures of Non-Cash Investing and Financing Activities of Consolidated Funds Note receivable eliminated in consolidation — 2,946 Increase in note receivable - related party due to deconsolidation of VIEs 10,341 — Cost of real estate investments included in accounts payable 45 36 Cost of real estate investments included in due to related parties 7 46 Consolidation of VIEs Real estate investments, net — 86,402 Accounts receivable, net — 4,348 Due from related parties — 2 Operating lease - right of use assets — 8,775 Prepaid and other assets — 2,042 Notes payable, net — 80,449 Notes payable - related parties — 6,589 Accounts payable and accrued expenses — 8,148 Due to related parties — 28 Operating lease liabilities — 12,441 Other liabilities — 2,158 Noncontrolling interests — 33,732 Deconsolidation of VIEs Real estate investments, net 83,282 74,061 Accounts receivable, net 2,808 3,609 Operating lease - right of use assets 10,327 8,775 Prepaid and other assets 8,453 1,634 Due from related parties 3 2 Due to related parties 101 28 Notes payable, net 82,024 68,500 Notes payable - related parties 14,362 1,777 Accounts payable and accrued expenses 10,655 7,038 Operating lease liabilities 13,957 12,441 Other liabilities 1,236 1,928 Noncontrolling interests 40,787 21,957 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments and Contingencies of the Company Environmental Matters In connection with the ownership and operation of real estate assets, the Company may potentially be liable for costs and damages related to environmental matters. The Company believes it is in material compliance with current laws and regulations and do not know of any existing environmental condition and has not been notified by any governmental authority of any non-compliance, liability or other claim, in each case, that could result in a material effect on our financial condition or results of operations. Caliber Tax Advantaged Opportunity Fund LP Caliber O-Zone Fund Manager, LLC (the “CTAF Fund Manager”) is a wholly-owned subsidiary of the Company and general partner and manager of Caliber Tax Advantaged Opportunity Fund LP (“CTAF”). In the event of a dissolution, winding-up, or termination, if the aggregate amount received by the CTAF limited partners does not equal or exceed an amount equal to a 6% IRR for the limited partners, the CTAF Fund Manager shall immediately contribute to CTAF funds in order to meet this minimum requirement for payment to the CTAF limited partners. As of March 31, 2024 and December 31, 2023, the Company estimated fair value of CTAF was less than the 6% IRR for the limited partners. Caliber Tax Advantaged Opportunity Fund II LLC Caliber O-Zone Fund II Manager, LLC (the “CTAF II Fund Manager”) is a wholly-owned subsidiary of the Company and general partner and manager of Caliber Tax Advantaged Opportunity Zone Fund II LLC (“CTAF II”). In the event of a dissolution, winding-up, or termination, if the aggregate amount received by the CTAF II investor members does not equal or exceed an amount equal to a 6% IRR for the investor members, the CTAF II Fund Manager shall immediately contribute to CTAF II funds in order to meet this minimum requirement for payment to the CTAF II investor members. As of March 31, 2024 and December 31, 2023, the Company estimated fair value of CTAF was less than the 6% IRR for the investor members. Commitments and Contingencies of the Consolidated Funds Franchise Agreements The hospitality fund consolidated at March 31, 2024 is party to a franchise agreement where the fund is required to pay monthly fees, consisting of royalty, program and food and beverage fees. This franchise agreements expires in November 2026. The consolidated funds recognized total franchise fees of $2.4 million and $1.5 million for the three months ended March 31, 2024 and 2023, respectively. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic earnings per common share is calculated by dividing net income (loss) attributable to common shareholders by the weighted average common shares outstanding during the period. Diluted earnings per share is calculated by dividing net income attributable to common shareholders by the weighted-average number of shares outstanding plus the dilutive impact of all potential dilutive common shares, consisting of stock options and warrants using the treasury stock method, and convertible debt and preferred stock using the if-converted method. The Company considered the two-class method in calculating the basic and diluted earnings per share, however, it was determined that there was no impact to the calculation of basic and diluted net income (loss) per share attributable to common stockholders as Class A and Class B common stock share in the same earnings and profits, thus, having no impact on the calculation. The Company has calculated the basic and diluted earnings per share during the three months ended March 31, 2024 and 2023 as follows (in thousands, except per share data): Three Months Ended March 31, 2024 2023 Numerator: Net loss attributable to CaliberCos Inc. $ (3,805) $ (1,207) Convertible debt interest 22 22 Net loss attributable to common shareholders of CaliberCos Inc. $ (3,783) $ (1,185) Denominator: Weighted average shares outstanding - basic 21,542 18,182 Weighted average shares outstanding - diluted 21,542 18,182 Basic net loss per share attributable to common shareholders $ (0.18) $ (0.07) Diluted net loss per share attributable to common shareholders $ (0.18) $ (0.07) The number of antidilutive shares consisted of the potential exercise of stock options and potential conversion of convertible debt. The following table summarizes these potential exercises and conversions during the three months ended March 31, 2024 and 2023 , which h ave been excluded from the computation of diluted earnings per share attributable to common shareholders (in thousands): Three Months Ended March 31, 2024 2023 Additional common shares, if stock options were exercised 2,263 1,625 Additional common shares, if convertible debt were converted 175 182 2,438 1,807 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair Value of Financial Instruments of the Company Fair values of financial instruments held by the Company are estimated using available market information and established valuation methodologies. Accordingly, the estimates presented are not necessarily indicative of the amounts the Company could realize on disposition of the financial instruments. The use of different market assumptions and/or valuation methodologies may have a material effect on the estimated fair value amounts. Financial instruments that approximate fair value due to the short-term nature of the instruments consist of cash, restricted cash, accounts receivable, and accounts payable. The fair values of debt have been estimated based on current rates available for similar instruments with similar terms, maturities, and collateral. The fair value of the Company’s fixed rate debt were measured with Level 2 inputs. The estimated fair value of the Company’s real estate loan was determined by management based on a discounted future cash-flow model. As of March 31, 2024 the Company’s real estate loan had a carrying value of $16.1 million and a fair value of $9.5 million. As of December 31, 2023 the Company’s real estate loan had a carrying value of $16.2 million and a fair value of $9.5 million. Fair Value of Financial Instruments of the Consolidated Funds Fair values of financial instruments held by consolidated funds are estimated using available market information and established valuation methodologies. Accordingly, the estimates presented are not necessarily indicative of the amounts the consolidated funds could realize on disposition of the financial instruments. The use of different market assumptions and/or valuation methodologies may have a material effect on the estimated fair value amounts. Financial instruments that approximate fair value due to the short-term nature of the instruments consist of cash, restricted cash, accounts receivable, and accounts payable. The fair values of debt, advance key money, and interest rate caps have been estimated based on current rates available for similar instruments with similar terms, maturities, and collateral. The carrying values of the consolidated funds’ variable rate debt and advance key money as of March 31, 2024 and December 31, 2023 approximated fair value. The fair value of the consolidated funds’ fixed rate debt were measured with Level 2 inputs. The estimated fair values for the instruments below were determined by management based on a discounted future cash-flow model (in thousands). March 31, 2024 December 31, 2023 Note Payable Carrying Fair Value Carrying Fair Value Hampton Inn & Suites Hotel (1) $ — $ — $ 5,939 $ 4,762 Southpointe Fundco, LLC 1,050 1,050 1,050 1,050 Tucson East, LLC (1) — — 11,901 11,067 West Frontier, LLC 4,636 3,803 4,636 3,795 (1) During the three months ended March 31, 2024, the Company deconsolidated Caliber Hospitality, LP and the Caliber Hospitality Trust, which included activity from six hospitality funds. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Risk Management Objective of Using Derivatives The consolidated funds utilize derivative instruments, including interest rate caps and swaps, to reduce interest rate risk associated with its borrowings. Our consolidated funds do not intend to utilize derivatives for purposes other than interest rate risk management. Derivatives Designated as Hedging Instruments As of March 31, 2024 and December 31, 2023, the Company did not have any derivatives designated as hedging instruments. Derivatives Not Designated as Hedging Instruments The consolidated funds have entered into interest rate caps and swaps. The following table summarizes the consolidated funds non-designated derivatives as of March 31, 2024 and December 31, 2023 (dollar amounts in thousands): March 31, 2024 December 31, 2023 Type of Derivative Number of Instruments Notional Amount Number of Instruments Notional Amount Interest rate swap 1 $ 18,306 1 $ 18,418 Interest rate cap (1) — — 1 55,000 Total $ 18,306 $ 73,418 The following table presents the fair value of the consolidated funds’ non-designated derivatives, as well as their classification on the consolidated balance sheets, as of March 31, 2024 and December 31, 2023 (in thousands): Type of Derivative Balance Sheet Location March 31, 2024 December 31, 2023 Interest rate swap Consolidated funds - Prepaid and other assets $ 1,401 $ 1,206 Interest rate cap (1) Consolidated funds - Prepaid and other assets — 10 Total $ 1,401 $ 1,216 The following table presents the gain or loss recognized in consolidated funds - hospitality expenses in the consolidated statements of operations for three months ended March 31, 2024 and 2023 (in thousands): Type of Derivative Statement of Operations Location Three Months Ended March 31, 2024 2023 Interest rate swap Consolidated funds - hospitality expenses $ 195 $ (322) Interest rate cap (1) Consolidated funds - hospitality expenses (35) 43 Total $ 160 $ (279) __________________________________ |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Management has evaluated events and transactions that occurred after March 31, 2024 through May 9, 2024, the date these consolidated financial statement were available to be issued. In addition to those matters discussed in Note 6 – Notes Payable, the following is a summary of the significant events and transactions that took place during this period: • The Company executed a reduction in force of approximately 10% of its employees in May 2024, with an expected annual saving of compensation and benefits expenses of $4.0 million. • |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation, Interim Unaudited Financial Data | Basis of Presentation and Consolidation The accompanying consolidated financial statements are prepared on the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The accompanying consolidated financial statements include our accounts, our consolidated subsidiaries, and legal entities in which the Company is deemed to have a direct or indirect controlling financial interest based on either a variable interest model or voting interest model. The equity and net income or loss attributable to noncontrolling interests in subsidiaries is shown separately in the accompanying consolidated balance sheets, statements of operations, and statements of changes in stockholders’ equity. All intercompany balances and transactions have been eliminated in consolidation. Interim Unaudited Financial Data Our consolidated financial statements reflect all adjustments, which are, in our opinion, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods. Interim results of operations are not necessarily indicative of the results to be expected for the full year. These consolidated financial statements, including notes, are unaudited, exclude some of the disclosures required for annual consolidated financial statements, and should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2023. |
Variable Interest Entities | Variable Interest Entities We determine if an entity is a variable interest entity (“VIE”) based on several factors, including whether the equity holders, as a group, lack the characteristics of a controlling financial interest. We analyze any investments in VIEs to determine if we are the primary beneficiary. A reporting entity is determined to be the primary beneficiary if it holds a controlling financial interest in a VIE. |
Voting Interest Entities | Voting Interest Entities Entities that do not qualify as VIEs are generally assessed for consolidation as voting interest entities (“VOEs”). For VOEs, we consolidate an entity if we have a controlling financial interest. We have a controlling financial interest in a VOE if (i) for legal entities other than partnerships, we own a majority voting interest in the entity or, for limited partnerships and similar entities, we own a majority of the entity’s kick-out rights through voting limited partnership interests and (ii) non-controlling shareholders or partners do not hold substantive participating rights, and no other conditions exist that would indicate that we do not control the entity. |
Reclassification | Reclassification The asset management fees and transaction and advisory fees, previously presented in their own line items for prior periods presented, have been combined into one line item, asset management revenues in the accompanying consolidated statements of operations, to be consistent with the current year presentation. The reclassification does not affect prior period’s total revenues or net income (loss). |
Use of Accounting Estimates | Use of Accounting Estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. These estimates are made and evaluated on an ongoing basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ significantly from those estimates. |
Cash | Cash Cash includes cash in bank accounts. The Company deposits cash with several high-quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company (“FDIC”) up to an insurance limit of $250,000. At times, the Company’s cash balances may exceed FDIC limits. Although the Company bears risk on amounts in excess of those insured by the FDIC, it has not experienced and does not anticipate any losses due to the high quality of the institutions where the deposits are held. Cash Cash includes cash in bank accounts. The consolidated funds deposit cash with several high-quality financial institutions. These deposits are guaranteed by the FDIC up to an insurance limit of $250,000. At times, cash balances may exceed FDIC limits. Although the consolidated funds bear risk on amounts in excess of those insured by the FDIC, they have not experienced and do not anticipate any losses due to the high quality of the institutions where the deposits are held. |
Restricted Cash | Restricted Cash Restricted cash consists of held in escrow accounts by contractual agreement with lenders as part of financial loan covenant requirements. Restricted Cash Restricted cash consists of tenant security deposits and cash reserves required by certain loan agreements for capital improvements and repairs. As improvements and repairs are completed, related costs incurred by the consolidated funds are funded from the reserve accounts. Restricted cash also includes cash held in escrow accounts by mortgage companies on behalf of the consolidated funds for payment of property taxes, insurance, and interest. |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities If an entity is not a VIE, our determination of the appropriate accounting method with respect to our investments in limited liability companies and other investments is based on voting control. For our managing member interests in limited liability companies, we are presumed to control (and therefore consolidate) the entity, unless the other limited partners have substantive rights that overcome this presumption of control. These substantive rights allow the limited partners to remove the general partner with or without cause or to participate in significant decisions made in the ordinary course of the entity’s business. We account for our non-controlling investments in these entities under the equity method. Our investments in unconsolidated subsidiaries in which we have the ability to exercise significant influence over operating and financial policies, but do not control, or entities which are VIE in which we are not the primary beneficiary are accounted for under the equity method. The equity method of accounting requires the investment to be initially recorded at cost and subsequently adjusted for the Company’s share of equity in the equity method investment’s earnings and distributions. Our share of the earnings or loss from equity method investments is included in other income (expenses), net on the accompanying consolidated statements of operations. |
Depreciation and Amortization Expense | Depreciation and Amortization Expense Depreciation expense includes costs and costs associated with building and building improvements, which are depreciated over the estimated useful life of the respective asset, generally 15 to 40 years. Depreciation expense also includes costs associated with the purchase of furniture and equipment and office leasehold improvements which are recorded at cost. Furniture and equipment costs are depreciated using the straight-line method over the estimated useful life of the asset, generally 3 to 7 years beginning in the first full month the asset is placed in service. Intangible lease assets are amortized using the straight-line method over the shorter of the respective estimated useful life or the lease term. For each of the three months ended March 31, 2024 and 2023, depreciation expense for the Company was $0.1 million. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Real estate and other long-lived assets to be held and used are stated at cost, less accumulated depreciation and amortization, unless the carrying amount of the asset is determined not to be recoverable. If events or circumstances indicate that the carrying amount of a long-lived asset may not be recoverable, we make an assessment of its recoverability by comparing the carrying amount to our estimate of the undiscounted net future cash flows resulting from the use of the asset, excluding interest charges. If the carrying amount exceeds the aggregate undiscounted future cash flows, we recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the asset. Impairment of Long-Lived Assets Real estate and other long-lived assets to be held and used are stated at cost, less accumulated depreciation and amortization, unless the carrying amount of the asset is determined to not be recoverable. If events or circumstances indicate that the carrying amount of a long-lived asset may not be recoverable, we make an assessment of its recoverability by comparing the carrying amount to our estimate of the undiscounted net future cash flows resulting from the use of the asset, excluding interest charges. If the carrying amount exceeds the aggregate undiscounted future cash flows, our consolidated funds recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the asset. |
Concentration of Credit Risk | Concentration of Credit Risk Substantially all of the Company’s revenues are generated from the management, ownership and/or operations of real estate assets located in Alaska, Arizona, Colorado, and Texas . Th e Company mitigates the associated risk by: • diversifying our investments in real estate assets across multiple asset types, including hospitality, commercial, single-family, multi-family, and self-storage properties; • diversifying our investments in real estate assets across multiple geographic locations including different markets and sub-markets in which our real estate assets are located; • diversifying our investments in real estate assets across assets at differing points of stabilization, and in varying states of cash flow optimization; and • |
Noncontrolling Interests in Consolidated Real Estate Partnerships | Noncontrolling Interests in Consolidated Real Estate Partnerships We report the unaffiliated partners’ interests in the net assets of our consolidated real estate partnerships as noncontrolling interests within the accompanying consolidated statements of changes in stockholders’ equity. Noncontrolling interests consist of equity interests held by limited partners in consolidated real estate partnerships. We attribute to noncontrolling interests their share of income or loss of the consolidated partnerships based on their proportionate interest in the results of operations of the partnerships, including their share of losses even if such attribution results in a deficit noncontrolling interest balance within our equity and partners’ capital accounts. The terms of the partnership agreements generally require the partnerships to be liquidated following the sale of the underlying real estate assets. As the general partner in these partnerships, we ordinarily control the execution of real estate sales and other events that could lead to the liquidation, redemption or other settlement of noncontrolling interests. The terms of certain partnership agreements outline differing classes of equity ownership, some of which are redeemable by the partnership at the partnership manager’s discretion. |
Revenue Recognition | Revenue Recognition In accordance with the Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”), management applies the five-step framework in determining the timing and amount of revenue to recognize. This framework requires an entity to: (i) identify the contract(s) with customers, (ii) identify the performance obligations within the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations within the contract, and (v) recognize revenue when or as the entity satisfies a performance obligation. Revenues from contracts with customers includes fixed fee arrangements with related party affiliates to provide certain associated activities which are ancillary to and generally add value to the assets we manage, such as set-up and fund formation services associated with marketing, soliciting, and selling member interests in the affiliated limited partnerships, brokerage services, construction and development management services, loan placement and guarantees. The recognition and measurement of revenue is based on the assessment of individual contract terms. For performance obligations satisfied at a point in time, there are no significant judgments made in evaluating when the customer obtains control of the promised service. For performance obligations satisfied over time, significant judgment is required to determine how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on appropriate measurement of the Company’s progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. Transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Variable consideration is included in the estimated transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur or when the uncertainty associated with the variable consideration is resolved. The Company’s estimates of variable consideration and determination of whether to include estimated amounts in transaction price are based largely on an assessment of its anticipated performance and all information that is reasonably available to the Company. Revenues are recognized when control of the promised services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The following describes the Company’s revenue recognition policy related to the fees the Company earns from providing services under its asset management platform: Fund set-up fees are a one-time fee for the initial formation, administration, and set-up of the private equity real estate fund. These fees are recognized at the point in time when the performance under the contract is complete and are included in asset management revenues in the accompanying consolidated statements of operations. Fund set-up fees replaced fund formation fees that are earned at a point in time at a fixed rate based on the amount of capital raised into certain managed funds. Fund management fees are generally based on 1.0% to 1.5% of the unreturned capital contributions in a particular fund and include reimbursement for costs incurred on behalf of the fund, including an allocation of certain overhead costs. These customer contracts require the Company to provide management services, representing a performance obligation that the Company satisfies over time. With respect to the Caliber Hospitality Trust, the Company earns a fund management fee of 0.7% of the Caliber Hospitality Trust’s enterprise value and is reimbursed for certain costs incurred on behalf of the Caliber Hospitality Trust. These revenues are included in asset management revenues in the accompanying consolidated statements of operations. Financing fees are earned for services the Company performs in securing third-party financing on behalf of our private equity real estate funds. These fees are recognized at the point in time when the performance under the contract is complete, which is essentially upon closing of a loan. In addition, the Company earns fees for guaranteeing certain loans, representing a performance obligation that the Company satisfies over time. These revenues are included in asset management revenues in the accompanying consolidated statements of operations. Development and construction revenues from contracts with customers include fixed fee arrangements with related party affiliates to provide real estate development services as their principal developer, which include managing and supervising third-party developers and general contractors with respect to the development of the properties owned by the funds. Revenues are generally based on 4.0% of the total expected costs of the development or 4.0% of the total expected costs of the construction project. Prior to the commencement of construction, development fee revenue is recognized at a point in time as the related performance obligations are satisfied and the customer obtains control of the promised service, including negotiation, due diligence, entitlements, planning, and design activities. During the construction period, development fee revenue is recognized over time as the performance obligations are satisfied. These revenues are included in asset management revenues in the accompanying consolidated statements of operations. Brokerage fees are earned at a point in time at fixed rates for services performed related to acquisitions, dispositions, leasing, and financing transaction, and are included in asset management revenues in the accompanying consolidated statements of operations. Performance allocations are an arrangement in which we are entitled to an allocation of investment returns, generated within the investment funds which we manage, based on a contractual formula. We typically receive 15.0% to 35.0% of all cash distributions from (i) the operating cash flow of each fund, after payment to the related fund investors of any accumulated and unpaid priority preferred returns and repayment of preferred capital contributions; and (ii) the cash flow resulting from the sale or refinance of any real estate assets held by each fund, after payment to the related fund investors of any accumulated and unpaid priority preferred returns and repayment of initial preferred capital contributions. Our funds’ preferred returns range from 6.0% to 12.0%, typically 6.0% for common equity or 10.0% to 12.0% for preferred equity, which does not participate in profits. Performance allocations are related to services which have been provided and are recognized when it is determined that they are no longer probable of significant reversal, which is generally satisfied when an underlying fund investment is realized or sold. These revenues are included in performance allocations in the accompanying consolidated statements of operations. |
Leases, Lessor | Leases Lessor At the inception of a new lease arrangement, including new leases that arise from amendments, the Company assesses the terms and conditions to determine the proper lease classification. When the terms of a lease effectively transfer control of the underlying asset, the lease is classified as a sales-type lease. When a lease does not effectively transfer control of the underlying asset to the lessee, but the Company obtains a guarantee for the value of the asset from a third party, the Company classifies the lease as a direct financing lease. All other leases are classified as operating leases. The Company did not have any sales-type or direct financing leases as of March 31, 2024 and December 31, 2023. For operating leases with minimum scheduled rent increases, the consolidated funds recognize rental revenue on a straight-line basis, including the effect of any free rent periods, over the lease term when collectability of lease payments is probable. Variable lease payments are recognized as rental revenue in the period when the changes in facts and circumstances on which the variable lease payments are based occur. The Company identified two separate lease components as follows: i) land lease component, and ii) single property lease component comprised of building, land improvements and tenant improvements. The Company’s leases also contain provisions for tenants to reimburse the consolidated funds for maintenance and other property operating expenses, which are considered to be non-lease components. The Company elected the practical expedient to combine lease and non-lease components and the non-lease components will be included with the single property lease component as the predominant component. |
Leases, Lessee | Lessee To account for leases for which the Company is the lessee, contracts must be analyzed upon inception to determine if the arrangement is, or contains, a lease. A lease conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification tests and measurement procedures are performed at the lease commencement date. The lease liability is initially measured as the present value of the lease payments over the lease term, discounted using the interest rate implicit in the lease, if that rate is readily determinable; otherwise, the lessee’s incremental borrowing rate is used. The incremental borrowing rate is determined based on the estimated rate of interest that the lessee would pay to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The lease term is the noncancelable period of the lease and includes any renewal and termination options the Company is reasonably certain to exercise. The lease liability balance is amortized using the effective interest method. The lease liability is remeasured when the contract is modified, upon the resolution of a contingency such that variable payments become fixed or if the assessment of exercising an extension, termination or purchase option changes. The right-of-use (“ROU”) asset balance is initially measured as the lease liability amount, adjusted for any lease payments made prior to the commencement date, initial direct costs, estimated costs to dismantle, remove, or restore the underlying asset and incentives received. The Company’s impairment assessment for ROU assets is consistent with the impairment analysis for the Company's other long-lived assets and is reviewed quarterly. Segments Historically, the Company’s operations were organized into three reportable segments, fund management, development, and brokerage. During the three months ended March 31, 2024, the Company reevaluated its reportable segments, considering (i) the evolution of the Company after closing its initial public offering and how the Company’s chief operating decision maker (“CODM”), the Company’s Chief Executive Officer, assesses performance and allocates resources, (ii) changes to the budgeting process and in key personnel driven by the Company’s growth initiatives, and (iii) how management reports ongoing company performance to the Board of Directors. With the evolution and growth of the Company, the Company’s CODM assesses performance and resource allocation on an aggregate basis under the Company’s asset management platform, and no longer reviews operating results for development or brokerage activity separately. As such, management concluded that the Company operates through one operating segment. The Company’s CODM assesses revenue, operating expenses and key operating statistics to evaluate performance and allocate resources on a basis that eliminates the impact of the consolidated investment funds (intercompany eliminations required by U.S. GAAP) and noncontrolling interests. Management concluded that the consolidated investment funds do not meet the requirements in ASC 280, Segment Reporting, of operating segments, as The Company’s CODM does not review the operating results of these investment funds for the purposes of allocating resources, assessing performance or determining whether additional investments or advances will be made to these funds. The investment funds are consolidated based on the requirement in ASC 810, Consolidation, as the Company was determined to be the primary beneficiary of each of these variable interest entities since it has the power to direct the activities of the entities and the right to absorb losses, generally in the form of guarantees of indebtedness that are significant to the individual investment funds. |
Accounts Receivable | Accounts Receivable Accounts receivable primarily consists of amounts due from guests or groups for hotel rooms and services provided by the hotel properties. Accounts receivable also include due, but unpaid, rental payments. Our consolidated funds continually review receivables and determine collectability by taking into consideration the history of past write-offs, collections, current credit conditions, tenant payment history, the financial condition of the tenants, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. If the collectability of a receivable is uncertain, our consolidated funds will record an increase in the allowance for doubtful accounts. Amounts that are determined to be uncollectible with a high degree of certainty are written-off through bad debt expense, which is included in consolidated funds – hospitality expenses and consolidated funds – other expenses on the accompanying consolidated statements of operations. Our consolidated funds had no allowance for doubtful accounts as of March 31, 2024 and December 31, 2023. |
Accounting for Real Estate Investments | Accounting for Real Estate Investments Upon the acquisition of real estate properties, a determination is made as to whether the acquisition meets the criteria to be accounted for as an asset acquisition or a business combination. The determination is primarily based on whether the assets acquired, and liabilities assumed meet the definition of a business. The determination of whether the assets acquired, and liabilities assumed meet the definition of a business includes a single or similar asset threshold. In applying the single or similar asset threshold, if substantially all the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the assets acquired, and liabilities assumed are not considered a business. Most of our consolidated fund acquisitions meet the single or similar asset threshold, due to the fact that substantially all the fair value of the gross assets acquired is attributable to the real estate assets acquired. Acquired real estate properties accounted for as asset acquisitions are recorded at cost, including acquisition and closing costs. Our consolidated funds allocate the cost of real estate properties to the tangible and intangible assets and liabilities acquired based on their estimated relative fair values. Our consolidated funds determine the fair value of tangible assets, such as land, building, furniture, fixtures and equipment, using a combination of internal valuation techniques that consider comparable market transactions, replacement costs and other available information and fair value estimates provided by third-party valuation specialists, depending upon the circumstances of the acquisition. Our consolidated funds determine the fair value of identified intangible assets or liabilities, which typically relate to in-place leases, using a combination of internal valuation techniques that consider the terms of the in-place leases, current market data for comparable leases, and fair value estimates provided by third-party valuation specialists, depending upon the circumstances of the acquisition. If a transaction is determined to be a business combination, the assets acquired, liabilities assumed, and any identified intangibles are recorded at their estimated fair values on the transaction date, and transaction costs are expensed in the period incurred. |
Cost Capitalization and Depreciation | Cost Capitalization and Depreciation Our consolidated funds capitalize costs, including certain indirect costs, incurred in connection with their development and construction activities. Included in these capitalized costs are payroll costs associated with time spent by site employees in connection with capital addition activities at the asset level. Interest, property taxes and insurance are also capitalized during periods in which redevelopment, development and construction projects are in progress. Capitalization of costs, including certain indirect costs, incurred in connection with our capital addition activities, commence at the point in time when activities necessary to get the assets ready for their intended use are in progress. This includes when assets are undergoing physical construction, as well as when apartment homes are held vacant in advance of planned construction, provided that other activities such as permitting, planning and design are in progress. Our consolidated funds cease the capitalization of costs when the assets are substantially complete and ready for their intended use, which is typically when construction has been completed and apartment homes or other properties are available for occupancy. Cost of ordinary repairs, maintenance and resident turnover are charged to operating expense, as incurred. |
Consolidated Fund Revenues | Consolidated Fund Revenues In accordance with ASC 606, our consolidated funds apply the five-step framework in determining the timing and amount of revenue to recognize. This framework requires an entity to: (i) identify the contract(s) with customers, (ii) identify the performance obligations within the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations within the contract, and (v) recognize revenue when or as the entity satisfies a performance obligation. Our consolidated funds’ revenues primarily consist of hospitality revenues, rental income and interest income. Consolidated funds – hospitality revenue Hospitality revenues are comprised of charges for room rentals, food and beverage sales, and other hotel operating activities. Revenues are recognized as earned, which is defined as the date upon which a guest occupies a room or utilizes the hotel’s services. Revenues are recorded net of sales tax. Our consolidated funds have performance obligations to provide accommodations and other ancillary services to hotel guests. As compensation for such goods and services, the consolidated funds are typically entitled to a fixed nightly fee for an agreed upon period and additional fixed fees for any ancillary services purchased. These fees are generally payable at the time the hotel guest checks out of the hotel. The consolidated funds generally satisfy the performance obligations over time and recognize the revenue from room sales and from other ancillary guest services on a daily basis, as the rooms are occupied, and the services have been rendered. For food and beverage, revenue is recognized upon transfer of promised products or services to customers in an amount that reflects the consideration the consolidated funds received in exchange for those services, which is generally when payment is tendered at the time of sale. The consolidated funds receive deposits for events and rooms. Such deposits are deferred and included in other liabilities on the accompanying consolidated balance sheets. The deposits are credited to consolidated funds – hospitality revenue when the specific event takes place. Consolidated funds – other revenue Consolidated funds – other revenue includes rental revenue of $0.4 million and $1.0 million, for the three months ended March 31, 2024 and 2023, respectively. Rental revenue includes the revenues generated primarily by the rental operations of the residential (multi-family and single-family) and commercial properties of our consolidated funds. Upon adoption of ASC 842, Leases (“ASC 842”), effective January 1, 2022, at the inception of a new lease arrangement, including new leases that arise from amendments, the Company assesses the terms and conditions to determine the proper lease classification. When the terms of a lease effectively transfer control of the underlying asset, the lease is classified as a sales-type lease. When a lease does not effectively transfer control of the underlying asset to the lessee, but the Company obtains a guarantee for the value of the asset from a third party, the Company classifies the lease as a direct financing lease. All other leases are classified as operating leases. The consolidated funds did not have any sales-type or direct financing leases as of March 31, 2024. For operating leases with minimum scheduled rent increases, the consolidated funds recognize rental revenue on a straight-line basis, including the effect of any free rent periods, over the lease term when collectability of lease payments is probable. Variable lease payments are recognized as rental revenue in the period when the changes in facts and circumstances on which the variable lease payments are based occur. The Company identified two separate lease components as follows: i) land lease component, and ii) single property lease component comprised of building, land improvements and tenant improvements. The Company’s leases also contain provisions for tenants to reimburse the consolidated funds for maintenance and other property operating expenses, which are considered to be non-lease components. The Company elected the practical expedient to combine lease and non-lease components and the non-lease components will be included with the single property lease component as the predominant component. In addition, consolidated funds - other revenue includes interest income of $1.0 million and $0.9 million for the three months ended March 31, 2024 and 2023, respectively, which is generated by a consolidated fund’s lending activity. Interest income is recognized on the accrual basis of accounting in accordance with the lending agreements over the term of the respective loan agreement. |
Derivative Instruments | Derivative Instruments |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of financial instruments is disclosed in accordance with ASC 825, Financial Instruments . The fair value of our financial instruments is estimated using available market information and established valuation methodologies. The estimates of fair value are not necessarily indicative of the amounts the consolidated funds could realize on disposition of the financial instruments. The use of different market assumptions and/or valuation methodologies may have a material effect on the estimated fair value amounts. |
Fair Value Measurements | Fair Value Measurements Fair value measurements and disclosures consist of a three-level valuation hierarchy. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the ability to observe the inputs employed in the measurement using market participant assumptions at the measurement date. An asset’s or liability’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows: • Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities that can be accessed at the measurement date. • Level 2 – Inputs include quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. • Level 3 – Unobservable inputs for the asset or liability. These unobservable inputs reflect assumptions about what market participants would use to price the asset or liability and are developed based on the best information available in the circumstances (which might include the reporting company’s own data) |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company adopted ASU 2016-13, Financial Instruments – Credit Losses and subsequent amendments (collectively, “Topic 326”), effective January 1, 2023. Topic 326 was intended to improve financial reporting by requiring more timely recognition of credit losses on loans and other financial instruments that are not accounted for at fair value through net income and required that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that was deducted from the amortized cost basis. The amendments in Topic 326 required the Company to measure all expected credit losses based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets and eliminated the “incurred loss” methodology under current U.S. GAAP. Loans and receivables between entities under common control are not within the scope of this guidance. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. The Company adopted the Financial Accounting Standards Board (“FASB”) issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) , effective January 1, 2024, which simplifies the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock, removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and also simplifies the diluted earnings per share calculation in certain areas. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In November 2023, FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which serves to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses on both an annual and interim basis. The guidance does not change the definition of a segment, the method for determining segments, or the criteria for aggregating operating segments into reportable segments and is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2023-07 on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740, Income Taxes) . ASU 2023-09, which serves to enhance income tax disclosures by requiring a tabular rate reconciliation and additional information on income taxes paid. The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2023-09 on our consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Real Estate Assets | The estimated useful lives of our real estate assets are as follows: Building and building improvements 15 – 40 years Furniture, fixtures, and equipment 3 – 7 years |
VIEs (Tables)
VIEs (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | During the three months ended March 31, 2023, the Company (i) deconsolidated five hospitality funds that were contributed to Caliber Hospitality, LP, whose sole general partner is the Caliber Hospitality Trust and (ii) consolidated Caliber Hospitality, LP and the Caliber Hospitality Trust, which included activity from the five previously consolidated hospitality funds and one previously unconsolidated fund because the Company was determined to be the primary beneficiary as it had the power to direct the activities and the obligation to absorb their losses through its guarantee of the indebtedness secured by the hospitality assets, which was significant to the Caliber Hospitality Trust and Caliber Hospitality, LP. In addition, the Company consolidated West Frontier Holdco, LLC (“West Frontier”) during the three months ended March 31, 2023, as the Company was determined to be the primary beneficiary as the Company has the power to direct the activities of West Frontier and the obligation to absorb their losses through its guarantee of their indebtedness, which is significant to the fund. No additional VIEs were consolidated during the three months ended March 31, 2024. The consolidation of the Caliber Hospitality Trust, Caliber Hospitality, LP, and West Frontier consisted of the following, excluding intercompany eliminations at the time of consolidation (in thousands): Assets Real estate investments, net $ 87,897 Cash 3,667 Restricted cash 9,260 Accounts receivable, net 4,348 Notes receivable - related parties 10,411 Due from related parties 40 Investments in unconsolidated entities 84,076 Operating lease - right of use assets 8,775 Prepaid and other assets 5,953 Total assets $ 214,427 Liabilities Notes payable, net $ 80,278 Notes payable - related parties 34,786 Accounts payable and accrued expenses 7,858 Due to related parties 10,302 Operating lease liabilities 12,441 Other liabilities 2,158 Total liabilities 147,823 Stockholders’ equity 66,604 Total liabilities and stockholders’ equity $ 214,427 |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Real Estate [Abstract] | |
Schedule of Asset Acquisition | The allocation of the purchase price among the assets acquired at their relative fair value as of the acquisition date, consisted of the following for the three months ended March 31, 2023 (in thousands): Three Months Ended March 31, 2023 Real estate investments, at cost Land and land improvements $ 9,131 Building and building improvements 9,332 Furniture, fixtures and equipment 959 Intangible lease assets 398 Intangible lease liabilities (348) Total purchase price of assets acquired $ 19,472 The allocation of the purchase price among the assets acquired at their relative fair value as of the acquisition date, consisted of the following for the three months ended March 31, 2023 (in thousands): Three Months Ended March 31, 2023 Real estate investments, at cost Land and land improvements $ 599 Building and building improvements 6,044 Total purchase price of assets acquired $ 6,643 |
Prepaid and Other Assets (Table
Prepaid and Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Assets | Prepaid and other assets consisted of the following as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 December 31, 2023 Pursuit costs (1) $ 639 $ 1,081 Prepaid expenses 1,127 981 Accounts receivable, net 572 205 Deposits 63 63 Other assets 487 451 Total prepaid and other assets $ 2,888 $ 2,781 (1) Pursuit costs represent expenses incurred related to new fund formation, primarily for professional, legal, consulting, accounting and tax services. As the funds raise equity investments and operating cash flow, as applicable, these costs are reimbursed by the respective funds to the Company. The Company assesses collectability and expenses any amounts in which collectability is not reasonably assured. Prepaid and Other Assets of the Consolidated Funds Prepaid and other assets of the consolidated funds consisted of the following as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 December 31, 2023 Derivative assets $ 1,401 $ 1,216 Prepaid expenses 739 1,735 Deposits 98 669 Pursuit costs (1) 1,174 1,102 Deferred franchise fees, net 64 278 Intangibles, net — 184 Inventory 44 142 Other assets (2) 259 6,351 Total prepaid and other assets $ 3,779 $ 11,677 __________________________________ (1) Pursuit costs represent expenses incurred related to new fund formation, primarily for professional, legal, consulting, accounting and tax services. As the funds raise equity investments and operating cash flow, as applicable, these costs are reimbursed by the respective funds to the Company. The Company assesses collectability and expenses any amounts in which collectability is not reasonably assured. |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | Notes payable consisted of the following as of March 31, 2024 and December 31, 2023 (in thousands): Notes Payable March 31, 2024 December 31, 2023 Weighted Average Interest Rate (1) Maturity Date (1) Corporate notes $ 35,392 $ 36,442 11.40 % January 2024 - March 2025 Convertible corporate notes 1,324 1,324 8.25 % April 2024 Real estate and other loans 16,454 16,252 5.61 % August 2024 - November 2029 Total notes payable 53,170 54,018 Deferred financing costs, net (218) (219) Total notes payable, net $ 52,952 $ 53,799 __________________________________ (1) As of March 31, 2024. Notes payable of the consolidated funds consisted of the following as of March 31, 2024 and December 31, 2023, respectively (in thousands): Notes Payable March 31, 2024 December 31, 2023 Interest Rate (1) Maturity date (1) Real Estate Loans Hampton Inn & Suites Hotel $ — (3) $ 5,939 N/A N/A Four Points by Sheraton Hotel (2) 10,700 11,000 18.00% September 2023 Holiday Inn Ocotillo Hotel — (3) 9,250 N/A N/A Airport Hotel Portfolio — (3) 55,631 N/A N/A DoubleTree by Hilton Tucson Convention Center 18,306 18,418 4.22% August 2027 Hilton Tucson East — (3) 11,901 N/A N/A DT Mesa Holdco II, LLC 3,000 3,000 7.28% May 2024 Southpointe Fundco, LLC 1,050 1,050 11.99% September 2024 West Frontier Holdco, LLC 4,636 4,636 6.35% February 2038 Total Real Estate Loans 37,692 120,825 Revolving line of credit 4,500 4,500 8.75% October 2024 Member notes 5,600 5,600 10.00% June 2025 Economic injury disaster and other loans 150 475 3.75% June 2050 Total notes payable 47,942 131,400 Deferred financing costs, net (288) (1,716) Total notes payable, net $ 47,654 $ 129,684 __________________________________ (1) As of March 31, 2024. (2) During the year ended December 31, 2023, the hotel ceased operations as the consolidated fund is converting the property into a multi-family residential asset. (3) During the three months ended March 31, 2024, the Company deconsolidated Caliber Hospitality, LP and the Caliber Hospitality Trust, which included activity from six hospitality funds. |
Schedule of Maturities of Long-Term Debt | The following table summarizes the scheduled principal repayments of our indebtedness as of March 31, 2024 (in thousands): Year Amount April 1, 2024 - December 31, 2024 $ 23,106 2025 14,421 2026 304 2027 317 2028 330 Thereafter 14,692 Total $ 53,170 As of March 31, 2024, the future aggregate principal repayments due on the Company’s notes payable are as follows (in thousands): Year Amount April 1, 2024 - December 31, 2024 $ 19,594 2025 6,119 2026 555 2027 17,046 2028 66 Thereafter 4,562 Total $ 47,942 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The table below shows the consolidated revenues earned for providing services under the Company’s asset management platform as described in the Revenue Recognition section of Note 2 – Summary of Significant Accounting Policies for the three months ended March 31, 2024 and 2023. Three Months Ended March 31, 2024 2023 Fund management fees $ 1,378 $ 1,289 Financing fees 2 78 Development and construction fees 1,531 528 Brokerage fees 259 141 Total asset management 3,170 2,036 Performance allocations 166 2,426 Total related party revenue $ 3,336 $ 4,462 |
Schedule of Notes Receivable | The following table summarizes the notes receivable – related parties as of March 31, 2024 and December 31, 2023 (in thousands): Notes Receivable - Related Parties March 31, 2024 December 31, 2023 Interest Rate (1) Maturity Date (1) Caliber Hospitality LP (2) $ 6,749 $ — 12.00% September 2025 Olathe Behavioral Health — 25 12.00% May 2025 DFW Behavioral Health LLC — 25 14.00% May 2025 Total Notes Receivable - Related Parties $ 6,749 $ 50 __________________________________ (1) As of March 31, 2024. (2) During the three months ended March 31, 2024, the Company deconsolidated Caliber Hospitality, LP and the Caliber Hospitality Trust, which included activity from six hospitality funds. Notes Receivable The consolidated fund entered into unsecured promissory notes with related parties. The notes may be repaid in whole, or in part, without penalty. The notes receivable – related parties consisted of the following as of March 31, 2024 and December 31, 2023 (in thousands): Notes Receivable - Related Parties March 31, 2024 December 31, 2023 Interest Rate (1) Maturity Date (1) SF Alaska, LP $ 15,592 $ 14,976 12.00% May 2025 The Ketch, LLC 7,713 7,198 12.00% May 2024 Circle Lofts, LLC 1,851 1,797 12.00% May 2024 J-25 Development Group, LLC 32 4,804 12.00% May 2024 Caliber Diversified Opportunity Fund II, LP 12 109 12.00% September 2025 Ridge II, LLC 1,186 846 12.00% December 2024 Ironwood, LLC 3,564 2,703 13.00% September 2025 47th Street Phoenix Fund, LLC 87 — 12.00% May 2025 Southridge, LLC — 2,187 13.00% July 2025 Caliber Hospitality, LP (2) 10,254 — 12.00% June 2025 Blue Spruce, LLC 56 — 13.00% January 2026 Total Notes Receivable - Related Parties $ 40,347 $ 34,620 __________________________________ (1) As of March 31, 2024. (2) During the three months ended March 31, 2024, the Company deconsolidated Caliber Hospitality, LP and the Caliber Hospitality Trust, which included activity from six hospitality funds. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Lessor, Operating Lease, Payment to be Received, Maturity | Future minimum lease payments due to the Company under non-cancellable operating leases over the next five years and thereafter as of March 31, 2024 are as follows (in thousands): Year Amount April 1, 2024 - December 31, 2024 $ 1,092 2025 1,281 2026 1,137 2027 501 2028 224 Thereafter 1,344 Total $ 5,579 Future minimum lease payments due to the consolidated funds under non-cancellable operating leases over the next five years and thereafter as of March 31, 2024 are as follows (in thousands): Year Amount April 1, 2024 - December 31, 2024 $ 947 2025 887 2026 882 2027 767 2028 787 Thereafter 3,729 Total $ 7,999 |
Operating Lease, Lease Income | The components of rental revenue for the three months ended March 31, 2024 and 2023 (in thousands) are presented in the table below. Variable rental revenue are primarily costs reimbursed related to common area maintenance. Three Months Ended March 31, 2024 2023 Fixed $ 294 $ 795 Variable 128 172 Total $ 422 $ 967 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other liabilities consisted of the following as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 December 31, 2023 Below market leases, net $ 134 $ 171 Tenant improvement allowance 179 99 Deposits (1) 129 113 Other 172 37 Total other liabilities $ 614 $ 420 _________________________________ (1) Includes tenant security deposits. Other Liabilities of the Consolidated Funds Other liabilities of the consolidated funds consisted of the following as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 December 31, 2023 Advance key money, net $ — $ 825 Deposits (1) 236 531 Sales tax payable 161 674 Other 339 370 Total other liabilities $ 736 $ 2,400 ______________________________ (1) Includes hotel advance deposits and tenant security and pet deposits. |
Supplemental Cash Flow Disclo_2
Supplemental Cash Flow Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental cash flow information consisted of the following for the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 2023 Supplemental Disclosure of Cash Flow Information Cash paid for interest, none of which was capitalized for the three months ended March 31, 2024 and 2023, respectively $ 1,254 $ 694 Supplemental Disclosure of Cash Flow Information of Consolidated Funds Cash paid for interest, net of capitalized interest of $2 and $9 for the three months ended March 31, 2024 and 2023, respectively 3,488 2,362 Supplemental Disclosures of Non-Cash Investing and Financing Activities Increase in note receivable - related party due to deconsolidation of VIEs 6,749 — Accounts receivable - related party eliminated in consolidation of VIEs — 1,853 Increase in investments in unconsolidated entities due to deconsolidation of VIEs 6,238 — Extinguishment of operating lease right-of-use assets — 1,059 Extinguishment of operating lease liabilities — 1,340 Cost of real estate investments included in accounts payable 107 18 Issuance of common stock in lieu of cash payment for accounts payable 36 — Supplemental Disclosures of Non-Cash Investing and Financing Activities of Consolidated Funds Note receivable eliminated in consolidation — 2,946 Increase in note receivable - related party due to deconsolidation of VIEs 10,341 — Cost of real estate investments included in accounts payable 45 36 Cost of real estate investments included in due to related parties 7 46 Consolidation of VIEs Real estate investments, net — 86,402 Accounts receivable, net — 4,348 Due from related parties — 2 Operating lease - right of use assets — 8,775 Prepaid and other assets — 2,042 Notes payable, net — 80,449 Notes payable - related parties — 6,589 Accounts payable and accrued expenses — 8,148 Due to related parties — 28 Operating lease liabilities — 12,441 Other liabilities — 2,158 Noncontrolling interests — 33,732 Deconsolidation of VIEs Real estate investments, net 83,282 74,061 Accounts receivable, net 2,808 3,609 Operating lease - right of use assets 10,327 8,775 Prepaid and other assets 8,453 1,634 Due from related parties 3 2 Due to related parties 101 28 Notes payable, net 82,024 68,500 Notes payable - related parties 14,362 1,777 Accounts payable and accrued expenses 10,655 7,038 Operating lease liabilities 13,957 12,441 Other liabilities 1,236 1,928 Noncontrolling interests 40,787 21,957 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The Company has calculated the basic and diluted earnings per share during the three months ended March 31, 2024 and 2023 as follows (in thousands, except per share data): Three Months Ended March 31, 2024 2023 Numerator: Net loss attributable to CaliberCos Inc. $ (3,805) $ (1,207) Convertible debt interest 22 22 Net loss attributable to common shareholders of CaliberCos Inc. $ (3,783) $ (1,185) Denominator: Weighted average shares outstanding - basic 21,542 18,182 Weighted average shares outstanding - diluted 21,542 18,182 Basic net loss per share attributable to common shareholders $ (0.18) $ (0.07) Diluted net loss per share attributable to common shareholders $ (0.18) $ (0.07) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes these potential exercises and conversions during the three months ended March 31, 2024 and 2023 , which h ave been excluded from the computation of diluted earnings per share attributable to common shareholders (in thousands): Three Months Ended March 31, 2024 2023 Additional common shares, if stock options were exercised 2,263 1,625 Additional common shares, if convertible debt were converted 175 182 2,438 1,807 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The estimated fair values for the instruments below were determined by management based on a discounted future cash-flow model (in thousands). March 31, 2024 December 31, 2023 Note Payable Carrying Fair Value Carrying Fair Value Hampton Inn & Suites Hotel (1) $ — $ — $ 5,939 $ 4,762 Southpointe Fundco, LLC 1,050 1,050 1,050 1,050 Tucson East, LLC (1) — — 11,901 11,067 West Frontier, LLC 4,636 3,803 4,636 3,795 (1) During the three months ended March 31, 2024, the Company deconsolidated Caliber Hospitality, LP and the Caliber Hospitality Trust, which included activity from six hospitality funds. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Derivatives | The consolidated funds have entered into interest rate caps and swaps. The following table summarizes the consolidated funds non-designated derivatives as of March 31, 2024 and December 31, 2023 (dollar amounts in thousands): March 31, 2024 December 31, 2023 Type of Derivative Number of Instruments Notional Amount Number of Instruments Notional Amount Interest rate swap 1 $ 18,306 1 $ 18,418 Interest rate cap (1) — — 1 55,000 Total $ 18,306 $ 73,418 |
Derivative Assets by Balance Sheet Location | The following table presents the fair value of the consolidated funds’ non-designated derivatives, as well as their classification on the consolidated balance sheets, as of March 31, 2024 and December 31, 2023 (in thousands): Type of Derivative Balance Sheet Location March 31, 2024 December 31, 2023 Interest rate swap Consolidated funds - Prepaid and other assets $ 1,401 $ 1,206 Interest rate cap (1) Consolidated funds - Prepaid and other assets — 10 Total $ 1,401 $ 1,216 |
Derivative Instruments, Gain (Loss) | The following table presents the gain or loss recognized in consolidated funds - hospitality expenses in the consolidated statements of operations for three months ended March 31, 2024 and 2023 (in thousands): Type of Derivative Statement of Operations Location Three Months Ended March 31, 2024 2023 Interest rate swap Consolidated funds - hospitality expenses $ 195 $ (322) Interest rate cap (1) Consolidated funds - hospitality expenses (35) 43 Total $ 160 $ (279) __________________________________ |
Organization and Liquidity (Det
Organization and Liquidity (Details) - USD ($) $ in Millions | May 09, 2024 | Mar. 31, 2024 |
Subsequent Event | Reduction In Force | ||
Organization And Liquidity [Line Items] | ||
Restructuring, positions eliminated, percent | 10% | |
Restructuring, expected annual cost savings | $ 4 | |
Subsequent Event | Other Cost Reduction Plans | ||
Organization And Liquidity [Line Items] | ||
Restructuring, expected annual cost savings | 2.5 | |
Excluding consolidated VIE | Corporate notes | ||
Organization And Liquidity [Line Items] | ||
Current portion of notes payable | $ 36.7 | |
Excluding consolidated VIE | Corporate notes | Subsequent Event | ||
Organization And Liquidity [Line Items] | ||
Current portion of notes payable | 36.4 | |
VIE, primary beneficiary | Subsequent Event | ||
Organization And Liquidity [Line Items] | ||
Preferred stock issued | $ 10 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||||||
Mar. 31, 2024 USD ($) | Mar. 31, 2024 USD ($) fund | Mar. 31, 2024 USD ($) | Mar. 31, 2024 USD ($) component | Mar. 31, 2024 USD ($) segment | Mar. 31, 2024 USD ($) entity | Mar. 31, 2023 USD ($) fund | Sep. 30, 2023 segment | Dec. 31, 2023 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Number of entities deconsolidated, sold | 6 | 6 | 5 | ||||||
Lessor, operating lease, number of lease components | component | 2 | ||||||||
Number of reportable segments | segment | 1 | 3 | |||||||
Interest income | $ 117,000 | $ 98,000 | |||||||
Development | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Revenue, percent of expected costs | 4% | ||||||||
Excluding consolidated VIE | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Investments in unconsolidated entities | 9,726,000 | $ 9,726,000 | $ 9,726,000 | $ 9,726,000 | $ 9,726,000 | $ 9,726,000 | $ 3,338,000 | ||
Impairment loss, investments | 0 | 0 | |||||||
Depreciation | 100,000 | 100,000 | |||||||
Impairment loss, long-lived assets | 0 | 0 | |||||||
VIE, primary beneficiary | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Depreciation | 2,100,000 | 2,400,000 | |||||||
Impairment loss, long-lived assets | 0 | 0 | |||||||
Total | 422,000 | 967,000 | |||||||
Interest income | 1,000,000 | ||||||||
Allowance for doubtful accounts | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||
VIE, primary beneficiary | Related party | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Interest income | $ 900,000 | ||||||||
VIE, primary beneficiary | Minimum | Building and building improvements | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful life | 15 years | 15 years | 15 years | 15 years | 15 years | 15 years | |||
VIE, primary beneficiary | Minimum | Furniture, fixtures and equipment | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful life | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years | |||
VIE, primary beneficiary | Maximum | Building and building improvements | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful life | 40 years | 40 years | 40 years | 40 years | 40 years | 40 years | |||
VIE, primary beneficiary | Maximum | Furniture, fixtures and equipment | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful life | 7 years | 7 years | 7 years | 7 years | 7 years | 7 years | |||
Asset management revenues | Excluding consolidated VIE | Related party | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Fund management fees, percentage | 0.70% | ||||||||
Asset management revenues | Excluding consolidated VIE | Minimum | Related party | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Fund management fees, percentage | 1% | ||||||||
Asset management revenues | Excluding consolidated VIE | Maximum | Related party | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Fund management fees, percentage | 1.50% | ||||||||
Performance allocations | Excluding consolidated VIE | Related party | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Preferred return, common equity | 6% | ||||||||
Performance allocations | Excluding consolidated VIE | Minimum | Related party | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of residual cash flow | 15% | ||||||||
Preferred return, preferred equity | 10% | ||||||||
Performance allocations | Excluding consolidated VIE | Maximum | Related party | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of residual cash flow | 35% | ||||||||
Preferred return, preferred equity | 12% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Real Estate Assets (Details) - VIE, primary beneficiary | Mar. 31, 2024 |
Minimum | Building and building improvements | |
Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 15 years |
Minimum | Furniture, fixtures and equipment | |
Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 3 years |
Maximum | Building and building improvements | |
Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 40 years |
Maximum | Furniture, fixtures and equipment | |
Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 7 years |
VIEs - Narrative (Details)
VIEs - Narrative (Details) $ in Millions | 3 Months Ended | |||
Mar. 07, 2024 USD ($) entity | Mar. 31, 2024 fund | Mar. 31, 2024 entity | Mar. 31, 2023 fund | |
Variable Interest Entity [Line Items] | ||||
Number of entities deconsolidated, sold | 6 | 6 | 5 | |
Excluding consolidated VIE | Caliber Hospitality Trust | L. T. D. Hospitality Group LLC Notes Payable | ||||
Variable Interest Entity [Line Items] | ||||
Debt instrument, face amount | $ 14.1 | |||
Excluding consolidated VIE | L. T. D. Hospitality Group LLC | Caliber Hospitality Trust | ||||
Variable Interest Entity [Line Items] | ||||
Number of real estate properties acquired | entity | 9 | |||
Payments to Acquire Businesses, Gross | $ 5.7 | |||
Business combination, consideration transferred, equity interests issued | $ 9.6 | |||
Caliber Hospitality, LP | ||||
Variable Interest Entity [Line Items] | ||||
Variable interest entities, number of consolidated funds | fund | 5 | |||
Caliber Hospitality Trust | ||||
Variable Interest Entity [Line Items] | ||||
Variable interest entities, number of consolidated funds | fund | 1 |
VIEs - Schedule of Variable Int
VIEs - Schedule of Variable Interest Entities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||||
Cash | $ 2,095 | $ 3,805 | $ 10,673 | $ 7,657 |
Restricted cash | 3,239 | 13,835 | 13,052 | 8,277 |
Assets | 201,462 | 299,432 | ||
Liabilities [Abstract] | ||||
Total liabilities | 114,972 | 233,414 | ||
Stockholders’ equity | 86,490 | 66,018 | 72,502 | $ 77,189 |
Total liabilities and stockholders’ equity | 201,462 | 299,432 | ||
VIE, primary beneficiary | ||||
Assets | ||||
Real estate investments, net | 101,037 | 185,636 | ||
Accounts receivable, net | 371 | 1,978 | ||
Notes receivable - related parties | 40,347 | 34,620 | ||
Operating lease - right of use assets | 0 | 10,318 | ||
Prepaid and other assets | 3,779 | 11,677 | ||
Liabilities [Abstract] | ||||
Accounts payable and accrued expenses | 2,723 | 11,736 | ||
Other liabilities | 736 | 2,400 | ||
Operating lease liabilities | 0 | 13,957 | ||
VIE, primary beneficiary | Caliber Hospitality Trust And West Frontier | ||||
Assets | ||||
Real estate investments, net | 87,897 | |||
Cash | 3,667 | |||
Restricted cash | 9,260 | |||
Accounts receivable, net | 4,348 | |||
Notes receivable - related parties | 10,411 | |||
Due from related parties | 40 | |||
Investments in unconsolidated entities | 84,076 | |||
Operating lease - right of use assets | 8,775 | |||
Prepaid and other assets | 5,953 | |||
Assets | 214,427 | |||
Liabilities [Abstract] | ||||
Accounts payable and accrued expenses | 7,858 | |||
Operating lease liabilities | 12,441 | |||
Total liabilities | 147,823 | |||
Stockholders’ equity | 66,604 | |||
Total liabilities and stockholders’ equity | 214,427 | |||
VIE, primary beneficiary | Nonrelated party | ||||
Liabilities [Abstract] | ||||
Notes payable | 47,654 | 129,684 | ||
Other liabilities | 736 | 2,400 | ||
VIE, primary beneficiary | Nonrelated party | Caliber Hospitality Trust And West Frontier | ||||
Liabilities [Abstract] | ||||
Notes payable | 80,278 | |||
Other liabilities | 2,158 | |||
VIE, primary beneficiary | Related party | ||||
Assets | ||||
Notes receivable - related parties | 40,347 | 34,620 | ||
Liabilities [Abstract] | ||||
Notes payable | 0 | 12,055 | ||
Other liabilities | $ 258 | $ 101 | ||
VIE, primary beneficiary | Related party | Caliber Hospitality Trust And West Frontier | ||||
Liabilities [Abstract] | ||||
Notes payable | 34,786 | |||
Other liabilities | $ 10,302 |
Real Estate Investments - Narra
Real Estate Investments - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 acquisition property | Mar. 31, 2023 USD ($) property | |
Excluding consolidated VIE | ||
Asset Acquisition [Line Items] | ||
Number of assets acquisitions | acquisition | 0 | |
Headquarters office building acquisition | Excluding consolidated VIE | ||
Asset Acquisition [Line Items] | ||
Asset acquisition, purchase price | $ 19.5 | |
Multi-family residential property acquisition | VIE, primary beneficiary | ||
Asset Acquisition [Line Items] | ||
Number of real estate properties acquired | property | 0 | 1 |
Commercial Building And Property With Vacant Land Acquisition | VIE, primary beneficiary | ||
Asset Acquisition [Line Items] | ||
Asset acquisition, purchase price | $ 6.6 |
Real Estate Investments - Sched
Real Estate Investments - Schedule of Asset Acquisition (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Excluding consolidated VIE | Headquarters office building acquisition | |
Asset Acquisition [Line Items] | |
Intangible lease assets | $ 398 |
Intangible lease liabilities | (348) |
Total purchase price of assets acquired | 19,472 |
VIE, primary beneficiary | Multi-family residential property acquisition | |
Asset Acquisition [Line Items] | |
Total purchase price of assets acquired | 6,643 |
Land and land improvements | Excluding consolidated VIE | Headquarters office building acquisition | |
Asset Acquisition [Line Items] | |
Real estate investments, at cost | 9,131 |
Land and land improvements | VIE, primary beneficiary | Multi-family residential property acquisition | |
Asset Acquisition [Line Items] | |
Real estate investments, at cost | 599 |
Building and building improvements | Excluding consolidated VIE | Headquarters office building acquisition | |
Asset Acquisition [Line Items] | |
Real estate investments, at cost | 9,332 |
Building and building improvements | VIE, primary beneficiary | Multi-family residential property acquisition | |
Asset Acquisition [Line Items] | |
Real estate investments, at cost | 6,044 |
Furniture, fixtures and equipment | Excluding consolidated VIE | Headquarters office building acquisition | |
Asset Acquisition [Line Items] | |
Real estate investments, at cost | $ 959 |
Prepaid and Other Assets - Summ
Prepaid and Other Assets - Summary of Prepaid and Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Excluding consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Pursuit costs | $ 639 | $ 1,081 |
Prepaid expenses | 1,127 | 981 |
Accounts receivable, net | 572 | 205 |
Deposits | 63 | 63 |
Other assets | 487 | 451 |
Total prepaid and other assets | 2,888 | 2,781 |
VIE, primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Pursuit costs | 1,174 | 1,102 |
Prepaid expenses | 739 | 1,735 |
Derivative assets | 1,401 | 1,216 |
Accounts receivable, net | 371 | 1,978 |
Deposits | 98 | 669 |
Other assets | 259 | 6,351 |
Deferred franchise fees, net | 64 | 278 |
Intangibles, net | 0 | 184 |
Inventory | 44 | 142 |
Total prepaid and other assets | $ 3,779 | $ 11,677 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Revenues (Details) - Related party - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Related Party Transaction [Line Items] | ||
Revenue | $ 3,336 | $ 4,462 |
Asset management revenues | ||
Related Party Transaction [Line Items] | ||
Revenue | 3,170 | 2,036 |
Asset management revenues | Fund management fees | ||
Related Party Transaction [Line Items] | ||
Revenue | 1,378 | 1,289 |
Asset management revenues | Financing fees | ||
Related Party Transaction [Line Items] | ||
Revenue | 2 | 78 |
Asset management revenues | Development and construction fees | ||
Related Party Transaction [Line Items] | ||
Revenue | 1,531 | 528 |
Asset management revenues | Brokerage fees | ||
Related Party Transaction [Line Items] | ||
Revenue | 259 | 141 |
Performance allocations | ||
Related Party Transaction [Line Items] | ||
Revenue | $ 166 | $ 2,426 |
Related Party Transactions - _2
Related Party Transactions - Schedule of Notes Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
VIE, primary beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable - related parties | $ 40,347 | $ 34,620 |
Related party | Excluding consolidated VIE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable - related parties | 6,749 | 50 |
Related party | VIE, primary beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable - related parties | $ 40,347 | $ 34,620 |
Notes Payable - Summary of Note
Notes Payable - Summary of Notes Payable (Details) $ in Thousands | 3 Months Ended | |||||||||
Mar. 31, 2024 USD ($) fund | Mar. 31, 2024 USD ($) entity | Mar. 31, 2023 fund | Dec. 31, 2023 USD ($) | Nov. 30, 2023 | Aug. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Nov. 30, 2021 | Jul. 31, 2015 | |
Debt Instrument [Line Items] | ||||||||||
Number of entities deconsolidated, sold | 6 | 6 | 5 | |||||||
Excluding consolidated VIE | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes payable | $ 53,170 | $ 53,170 | $ 54,018 | |||||||
Deferred financing costs, net | (218) | (218) | (219) | |||||||
Total | 52,952 | 52,952 | 53,799 | |||||||
VIE, primary beneficiary | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes payable | 47,942 | 47,942 | 131,400 | |||||||
Deferred financing costs, net | (288) | (288) | (1,716) | |||||||
Total | 47,654 | 47,654 | 129,684 | |||||||
Corporate notes | Excluding consolidated VIE | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes payable | $ 35,392 | $ 35,392 | 36,442 | |||||||
Corporate notes | Excluding consolidated VIE | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 11.40% | 11.40% | ||||||||
Convertible corporate notes | Excluding consolidated VIE | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes payable | $ 1,324 | $ 1,324 | 1,324 | |||||||
Interest rate | 8.25% | 8.25% | ||||||||
Real estate notes | Excluding consolidated VIE | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes payable | $ 16,454 | $ 16,454 | 16,252 | |||||||
Total | $ 16,100 | $ 16,100 | 16,200 | |||||||
Interest rate | 5.61% | 5.61% | ||||||||
Real estate notes | VIE, primary beneficiary | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes payable | $ 37,692 | $ 37,692 | 120,825 | |||||||
Real estate notes | VIE, primary beneficiary | Hampton Inn & Suites Hotel | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes payable | 0 | 0 | 5,939 | |||||||
Interest rate | 6.12% | |||||||||
Real estate notes | VIE, primary beneficiary | Four Points by Sheraton Hotel, Notes Payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes payable | $ 10,700 | $ 10,700 | 11,000 | |||||||
Interest rate | 18% | 18% | 18% | |||||||
Real estate notes | VIE, primary beneficiary | Holiday Inn Ocotillo Hotel, Notes Payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes payable | $ 0 | $ 0 | 9,250 | |||||||
Real estate notes | VIE, primary beneficiary | Airport Hotel Portfolio, Notes Payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes payable | 0 | 0 | 55,631 | |||||||
Real estate notes | VIE, primary beneficiary | DoubleTree by Hilton Tucson Convention Center, Notes Payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes payable | $ 18,306 | $ 18,306 | 18,418 | |||||||
Interest rate | 4.22% | 4.22% | ||||||||
Real estate notes | VIE, primary beneficiary | Hilton Tucson East, Notes Payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes payable | $ 0 | $ 0 | 11,901 | |||||||
Interest rate | 6.25% | |||||||||
Real estate notes | VIE, primary beneficiary | DT Mesa Holdco II, LLC, Notes Payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes payable | $ 3,000 | $ 3,000 | 3,000 | |||||||
Interest rate | 7.28% | 7.28% | 6.50% | |||||||
Real estate notes | VIE, primary beneficiary | Southpointe Fundco, LLC | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes payable | $ 1,050 | $ 1,050 | 1,050 | |||||||
Interest rate | 11.99% | 11.99% | 11.99% | 9.99% | ||||||
Real estate notes | VIE, primary beneficiary | West Frontier Holdco, LLC | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes payable | $ 4,636 | $ 4,636 | 4,636 | |||||||
Interest rate | 6.35% | 6.35% | 6.35% | |||||||
Revolving line of credit | VIE, primary beneficiary | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes payable | $ 4,500 | $ 4,500 | 4,500 | |||||||
Interest rate | 8.75% | 8.75% | ||||||||
Member notes | VIE, primary beneficiary | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes payable | $ 5,600 | $ 5,600 | $ 5,600 | |||||||
Interest rate | 10% | 10% | 10% | 10% | ||||||
Economic injury disaster and other loans | VIE, primary beneficiary | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes payable | $ 150 | $ 150 | $ 475 | |||||||
Economic injury disaster and other loans | VIE, primary beneficiary | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 3.75% | 3.75% |
Notes Payable - Narrative (Deta
Notes Payable - Narrative (Details) | 1 Months Ended | 3 Months Ended | ||||||||||||||||||
May 09, 2024 USD ($) | Apr. 30, 2024 USD ($) | May 31, 2023 | Mar. 31, 2023 | Jan. 31, 2023 | Dec. 31, 2022 | Aug. 31, 2019 USD ($) | Sep. 30, 2018 | Jul. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2024 USD ($) extension note $ / shares | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) note | Nov. 30, 2023 | Aug. 31, 2023 | Jun. 30, 2022 | Nov. 30, 2021 | Jun. 30, 2020 | Jul. 31, 2018 | Jul. 31, 2015 | |
Excluding consolidated VIE | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term debt | $ 52,952,000 | $ 53,799,000 | ||||||||||||||||||
Notes payable | 53,170,000 | 54,018,000 | ||||||||||||||||||
Deferred financing costs, net | 218,000 | 219,000 | ||||||||||||||||||
Deferred financing cost write-offs | 0 | $ 0 | ||||||||||||||||||
Amortization of deferred financing costs | 10,000 | (6,000) | ||||||||||||||||||
Excluding consolidated VIE | Corporate notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes payable | $ 35,392,000 | $ 36,442,000 | ||||||||||||||||||
Excluding consolidated VIE | Corporate notes | Corporate Notes And Convertible Corporate Notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, term (in months) | 12 months | |||||||||||||||||||
Debt instrument, extended term | 12 months | |||||||||||||||||||
Number of corporate notes | note | 220 | 222 | ||||||||||||||||||
Average outstanding principal balance per loan | $ 200,000 | $ 200,000 | ||||||||||||||||||
Weighted average interest rate | 11.40% | 11.42% | ||||||||||||||||||
Excluding consolidated VIE | Corporate notes | Corporate Notes And Convertible Corporate Notes, Due April 2026 | Subsequent Event | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term debt | $ 12,300,000 | |||||||||||||||||||
Debt instrument, extended term | 13 months | |||||||||||||||||||
Excluding consolidated VIE | Convertible corporate notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate | 8.25% | |||||||||||||||||||
Notes payable | $ 1,324,000 | $ 1,324,000 | ||||||||||||||||||
Convertible conversion price (in dollars per share) | $ / shares | $ 7.57 | |||||||||||||||||||
Excluding consolidated VIE | Real estate notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate | 5.61% | |||||||||||||||||||
Long-term debt | $ 16,100,000 | 16,200,000 | ||||||||||||||||||
Notes payable | 16,454,000 | 16,252,000 | ||||||||||||||||||
Excluding consolidated VIE | Real estate notes | Notes Payable, Gateway II Holdco, LLC | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate | 4.30% | |||||||||||||||||||
Long-term debt | $ 16,100,000 | $ 16,200,000 | ||||||||||||||||||
Excluding consolidated VIE | Minimum | Corporate notes | Corporate Notes And Convertible Corporate Notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate | 8.25% | 8.25% | ||||||||||||||||||
Excluding consolidated VIE | Maximum | Corporate notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate | 11.40% | |||||||||||||||||||
Excluding consolidated VIE | Maximum | Corporate notes | Corporate Notes And Convertible Corporate Notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate | 12% | 12% | ||||||||||||||||||
VIE, primary beneficiary | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term debt | $ 47,654,000 | $ 129,684,000 | ||||||||||||||||||
Notes payable | 47,942,000 | 131,400,000 | ||||||||||||||||||
Deferred financing costs, net | 288,000 | 1,716,000 | ||||||||||||||||||
Deferred financing cost write-offs | 0 | 0 | ||||||||||||||||||
Amortization of deferred financing costs | $ 300,000 | $ 300,000 | ||||||||||||||||||
Number of extensions | extension | 2 | |||||||||||||||||||
Term of extension (in months) | 12 months | |||||||||||||||||||
VIE, primary beneficiary | Economic Injury Disaster Loans | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate | 3.75% | |||||||||||||||||||
Long-term debt | $ 200,000 | 500,000 | ||||||||||||||||||
VIE, primary beneficiary | Real estate notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes payable | 37,692,000 | 120,825,000 | ||||||||||||||||||
VIE, primary beneficiary | Real estate notes | Hampton Inn & Suites Hotel | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate | 6.12% | |||||||||||||||||||
Notes payable | $ 0 | 5,939,000 | ||||||||||||||||||
VIE, primary beneficiary | Real estate notes | Four Points by Sheraton Hotel, Notes Payable | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate | 18% | 18% | ||||||||||||||||||
Notes payable | $ 10,700,000 | 11,000,000 | ||||||||||||||||||
VIE, primary beneficiary | Real estate notes | Four Points by Sheraton Hotel, Notes Payable | Subsequent Event | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate floor | 12.65% | |||||||||||||||||||
Debt instrument, face amount | $ 19,100,000 | |||||||||||||||||||
VIE, primary beneficiary | Real estate notes | Holiday Inn Ocotillo Hotel, Notes Payable | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes payable | 0 | 9,250,000 | ||||||||||||||||||
Interest rate floor | 11% | 11% | ||||||||||||||||||
VIE, primary beneficiary | Real estate notes | Airport Hotel Portfolio, Notes Payable | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes payable | $ 0 | 55,631,000 | ||||||||||||||||||
Exit fee percentage | 1.25% | |||||||||||||||||||
Minimum return percentage | 30% | |||||||||||||||||||
VIE, primary beneficiary | Real estate notes | DoubleTree by Hilton Tucson Convention Center, Notes Payable | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate | 4.22% | |||||||||||||||||||
Notes payable | $ 18,306,000 | 18,418,000 | ||||||||||||||||||
VIE, primary beneficiary | Real estate notes | DoubleTree by Hilton Tucson Convention Center, Notes Payable | Interest rate swap | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Derivative, fixed interest rate | 4.22% | |||||||||||||||||||
VIE, primary beneficiary | Real estate notes | DoubleTree by Hilton Tucson Convention Center, Notes Payable | Interest rate swap | Subsequent Event | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Proceeds from termination of derivative | $ 1,600,000 | |||||||||||||||||||
VIE, primary beneficiary | Real estate notes | Hilton Tucson East, Notes Payable | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate | 6.25% | |||||||||||||||||||
Notes payable | $ 0 | 11,901,000 | ||||||||||||||||||
VIE, primary beneficiary | Real estate notes | DT Mesa Holdco II, LLC, Notes Payable | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate | 6.50% | 7.28% | ||||||||||||||||||
Notes payable | $ 3,000,000 | 3,000,000 | ||||||||||||||||||
VIE, primary beneficiary | Real estate notes | DT Mesa Holdco II, LLC, Notes Payable | Subsequent Event | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, extended term | 90 days | |||||||||||||||||||
VIE, primary beneficiary | Real estate notes | Southpointe Fundco, LLC | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate | 11.99% | 11.99% | 9.99% | |||||||||||||||||
Notes payable | $ 1,050,000 | 1,050,000 | ||||||||||||||||||
VIE, primary beneficiary | Real estate notes | West Frontier Holdco, LLC | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate | 6.35% | 6.35% | 6.35% | |||||||||||||||||
Notes payable | $ 4,636,000 | 4,636,000 | ||||||||||||||||||
VIE, primary beneficiary | Revolving line of credit | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate | 8.75% | |||||||||||||||||||
Notes payable | $ 4,500,000 | $ 4,500,000 | ||||||||||||||||||
VIE, primary beneficiary | Revolving line of credit | Revolving Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate | 4.75% | |||||||||||||||||||
Line of credit maximum borrowing capacity | $ 4,500,000 | |||||||||||||||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.20% | |||||||||||||||||||
VIE, primary beneficiary | Member notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate | 10% | 10% | 10% | |||||||||||||||||
Notes payable | $ 5,600,000 | $ 5,600,000 | ||||||||||||||||||
VIE, primary beneficiary | One-Month LIBOR | Real estate notes | Holiday Inn Ocotillo Hotel, Notes Payable | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Basis spread on variable rate | 6% | |||||||||||||||||||
VIE, primary beneficiary | One-Month LIBOR | Real estate notes | Airport Hotel Portfolio, Notes Payable | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Basis spread on variable rate | 3.75% | |||||||||||||||||||
VIE, primary beneficiary | One-Month LIBOR | Real estate notes | DoubleTree by Hilton Tucson Convention Center, Notes Payable | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Basis spread on variable rate | 2.50% | |||||||||||||||||||
VIE, primary beneficiary | Secured Overnight Financing Rate (SOFR) | Real estate notes | Four Points by Sheraton Hotel, Notes Payable | Subsequent Event | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Basis spread on variable rate | 6.14% | |||||||||||||||||||
VIE, primary beneficiary | Secured Overnight Financing Rate (SOFR) | Real estate notes | Holiday Inn Ocotillo Hotel, Notes Payable | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Basis spread on variable rate | 6% | |||||||||||||||||||
VIE, primary beneficiary | Secured Overnight Financing Rate (SOFR) | Real estate notes | Airport Hotel Portfolio, Notes Payable | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Basis spread on variable rate | 8.75% | |||||||||||||||||||
VIE, primary beneficiary | Federal Home Loan Bank Rate | Real estate notes | DT Mesa Holdco II, LLC, Notes Payable | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Basis spread on variable rate | 2.75% | |||||||||||||||||||
VIE, primary beneficiary | Five Year Treasury Constant Federal Reserve Index | Real estate notes | West Frontier Holdco, LLC | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Basis spread on variable rate | 2.50% | |||||||||||||||||||
VIE, primary beneficiary | Wall Street Journal Prime Rate | Revolving line of credit | Revolving Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Basis spread on variable rate | 0.25% | |||||||||||||||||||
VIE, primary beneficiary | Prime Rate | Real estate notes | Four Points by Sheraton Hotel, Notes Payable | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Basis spread on variable rate | 2.25% | |||||||||||||||||||
Interest rate floor | 9.65% | |||||||||||||||||||
VIE, primary beneficiary | Maximum | Secured Overnight Financing Rate (SOFR) | Real estate notes | Airport Hotel Portfolio, Notes Payable | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, variable rate | 5% |
Notes Payable - Summary of Prin
Notes Payable - Summary of Principal Repayments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Excluding consolidated VIE | ||
Debt Instrument [Line Items] | ||
April 1, 2024 - December 31, 2024 | $ 23,106 | |
2025 | 14,421 | |
2026 | 304 | |
2027 | 317 | |
2028 | 330 | |
Thereafter | 14,692 | |
Total | 53,170 | $ 54,018 |
VIE, primary beneficiary | ||
Debt Instrument [Line Items] | ||
April 1, 2024 - December 31, 2024 | 19,594 | |
2025 | 6,119 | |
2026 | 555 | |
2027 | 17,046 | |
2028 | 66 | |
Thereafter | 4,562 | |
Total | $ 47,942 | $ 131,400 |
Related Party Transactions - _3
Related Party Transactions - Schedule of Related Party Revenues (Details) - Related party - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Related Party Transaction [Line Items] | ||
Revenue | $ 3,336 | $ 4,462 |
Asset management revenues | ||
Related Party Transaction [Line Items] | ||
Revenue | 3,170 | 2,036 |
Asset management revenues | Fund management fees | ||
Related Party Transaction [Line Items] | ||
Revenue | 1,378 | 1,289 |
Asset management revenues | Financing fees | ||
Related Party Transaction [Line Items] | ||
Revenue | 2 | 78 |
Asset management revenues | Development and construction fees | ||
Related Party Transaction [Line Items] | ||
Revenue | 1,531 | 528 |
Asset management revenues | Brokerage fees | ||
Related Party Transaction [Line Items] | ||
Revenue | 259 | 141 |
Performance allocations | ||
Related Party Transaction [Line Items] | ||
Revenue | $ 166 | $ 2,426 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Excluding consolidated VIE | |||
Related Party Transaction [Line Items] | |||
Due from related parties | $ 9,397,000 | $ 9,709,000 | |
Other liabilities | 614,000 | 420,000 | |
VIE, primary beneficiary | |||
Related Party Transaction [Line Items] | |||
Other liabilities | 736,000 | 2,400,000 | |
Related party | Excluding consolidated VIE | |||
Related Party Transaction [Line Items] | |||
Notes receivable, interest income | 0 | $ 0 | |
Interest receivable | 0 | 0 | |
Other liabilities | 157,000 | 257,000 | |
Related party | VIE, primary beneficiary | |||
Related Party Transaction [Line Items] | |||
Notes receivable, interest income | 1,000,000 | 900,000 | |
Interest receivable | 0 | 0 | |
Other liabilities | 258,000 | 101,000 | |
Notes payable | 0 | 12,055,000 | |
Interest expense, debt | 300,000 | $ 200,000 | |
Interest payable | 100,000 | ||
Related party | VIE, primary beneficiary | Caliber Hospitality, LP | |||
Related Party Transaction [Line Items] | |||
Notes payable | 12,100,000 | ||
Related party | Other | Excluding consolidated VIE | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 1,900,000 | 1,900,000 | |
Related party | Other | VIE, primary beneficiary | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 0 | 0 | |
Other liabilities | 300,000 | 0 | |
Asset management revenues | Related party | Excluding consolidated VIE | |||
Related Party Transaction [Line Items] | |||
Due from related parties | $ 7,500,000 | $ 7,800,000 |
Related Party Transactions - _4
Related Party Transactions - Schedule of Notes Receivable (Details) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2024 USD ($) fund | Mar. 31, 2024 USD ($) | Mar. 31, 2024 USD ($) entity | Mar. 31, 2023 fund | Dec. 31, 2023 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of entities deconsolidated, sold | 6 | 6 | 5 | ||
VIE, primary beneficiary | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable - related parties | $ 40,347 | $ 40,347 | $ 40,347 | $ 34,620 | |
Related party | Excluding consolidated VIE | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable - related parties | 6,749 | 6,749 | 6,749 | 50 | |
Related party | Excluding consolidated VIE | Caliber Hospitality, LP | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable - related parties | 6,749 | $ 6,749 | 6,749 | 0 | |
Related party transaction, rate | 12% | ||||
Related party | Excluding consolidated VIE | Olathe Behavioral Health | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable - related parties | 0 | $ 0 | 0 | 25 | |
Related party transaction, rate | 12% | ||||
Related party | Excluding consolidated VIE | DFW Behavioral Health LLC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable - related parties | 0 | $ 0 | 0 | 25 | |
Related party transaction, rate | 14% | ||||
Related party | VIE, primary beneficiary | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable - related parties | 40,347 | $ 40,347 | 40,347 | 34,620 | |
Related party | VIE, primary beneficiary | Caliber Hospitality, LP | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable - related parties | 10,254 | $ 10,254 | 10,254 | 0 | |
Related party transaction, rate | 12% | ||||
Related party | VIE, primary beneficiary | SF Alaska | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable - related parties | 15,592 | $ 15,592 | 15,592 | 14,976 | |
Related party transaction, rate | 12% | ||||
Related party | VIE, primary beneficiary | Edgewater/The Ketch | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable - related parties | 7,713 | $ 7,713 | 7,713 | 7,198 | |
Related party transaction, rate | 12% | ||||
Related party | VIE, primary beneficiary | Circle Lofts, LLC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable - related parties | 1,851 | $ 1,851 | 1,851 | 1,797 | |
Related party transaction, rate | 12% | ||||
Related party | VIE, primary beneficiary | J-25 Development Group | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable - related parties | 32 | $ 32 | 32 | 4,804 | |
Related party transaction, rate | 12% | ||||
Related party | VIE, primary beneficiary | CDOF | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable - related parties | 12 | $ 12 | 12 | 109 | |
Related party transaction, rate | 12% | ||||
Related party | VIE, primary beneficiary | Ridge II, LLC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable - related parties | 1,186 | $ 1,186 | 1,186 | 846 | |
Related party transaction, rate | 12% | ||||
Related party | VIE, primary beneficiary | Ironwood, LLC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable - related parties | 3,564 | $ 3,564 | 3,564 | 2,703 | |
Related party transaction, rate | 13% | ||||
Related party | VIE, primary beneficiary | 47th Street Phoenix Fund, LLC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable - related parties | 87 | $ 87 | 87 | 0 | |
Related party transaction, rate | 12% | ||||
Related party | VIE, primary beneficiary | Southridge, LLC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable - related parties | 0 | $ 0 | 0 | 2,187 | |
Related party transaction, rate | 13% | ||||
Related party | VIE, primary beneficiary | Blue Spruce, LLC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable - related parties | $ 56 | $ 56 | $ 56 | $ 0 | |
Related party transaction, rate | 13% |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) property | Mar. 31, 2023 USD ($) | |
Lessor, Lease, Description [Line Items] | ||
Fixed | $ 200 | |
Variable | 0 | |
Excluding consolidated VIE | ||
Lessor, Lease, Description [Line Items] | ||
Rental revenue, number of revenue-generating properties | property | 1 | |
Fixed | $ 400 | |
Variable | $ 100 | |
Excluding consolidated VIE | Minimum | ||
Lessor, Lease, Description [Line Items] | ||
Lessor, operating lease, remaining lease term | 10 months 24 days | |
Excluding consolidated VIE | Maximum | ||
Lessor, Lease, Description [Line Items] | ||
Lessor, operating lease, remaining lease term | 10 years 3 months 18 days | |
VIE, primary beneficiary | ||
Lessor, Lease, Description [Line Items] | ||
Fixed | $ 294 | 795 |
Variable | $ 128 | $ 172 |
VIE, primary beneficiary | Multi-Family Residential Properties | ||
Lessor, Lease, Description [Line Items] | ||
Rental revenue, number of revenue-generating properties | property | 2 | |
VIE, primary beneficiary | Commercial Properties | ||
Lessor, Lease, Description [Line Items] | ||
Rental revenue, number of revenue-generating properties | property | 2 | |
VIE, primary beneficiary | Minimum | ||
Lessor, Lease, Description [Line Items] | ||
Lessor, operating lease, remaining lease term | 1 month 6 days | |
VIE, primary beneficiary | Maximum | ||
Lessor, Lease, Description [Line Items] | ||
Lessor, operating lease, remaining lease term | 9 years 8 months 12 days |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Lessor, Lease, Description [Line Items] | |
Future minimum lease payments due, term (in years) | 5 years |
Excluding consolidated VIE | |
Lessor, Lease, Description [Line Items] | |
April 1, 2024 - December 31, 2024 | $ 1,092 |
2025 | 1,281 |
2026 | 1,137 |
2027 | 501 |
2028 | 224 |
Thereafter | 1,344 |
Total | 5,579 |
VIE, primary beneficiary | |
Lessor, Lease, Description [Line Items] | |
April 1, 2024 - December 31, 2024 | 947 |
2025 | 887 |
2026 | 882 |
2027 | 767 |
2028 | 787 |
Thereafter | 3,729 |
Total | $ 7,999 |
Leases - Rental Revenue (Detail
Leases - Rental Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Lessor, Lease, Description [Line Items] | ||
Fixed | $ 200 | |
Variable | 0 | |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Total | |
VIE, primary beneficiary | ||
Lessor, Lease, Description [Line Items] | ||
Fixed | $ 294 | 795 |
Variable | 128 | 172 |
Total | $ 422 | $ 967 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Excluding consolidated VIE | ||
Schedule Of Other Liabilities [Line Items] | ||
Below market leases, net | $ 134 | $ 171 |
Tenant improvement allowance | 179 | 99 |
Deposits | 129 | 113 |
Other | 172 | 37 |
Other liabilities | 614 | 420 |
VIE, primary beneficiary | ||
Schedule Of Other Liabilities [Line Items] | ||
Deposits | 236 | 531 |
Other | 339 | 370 |
Advance key money, net | 0 | 825 |
Sales tax payable | 161 | 674 |
Other liabilities | $ 736 | $ 2,400 |
Supplemental Cash Flow Disclo_3
Supplemental Cash Flow Disclosures (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other Significant Noncash Transactions [Line Items] | ||
Capitalized interest | $ 0 | $ 0 |
Excluding consolidated VIE | ||
Other Significant Noncash Transactions [Line Items] | ||
Cash paid for interest, net of capitalized interest | 1,254,000 | 694,000 |
Increase in note receivable - related party due to deconsolidation of VIEs | 6,749,000 | 0 |
Accounts receivable - related party eliminated in consolidation of VIEs | 0 | 1,853,000 |
Increase in investments in unconsolidated entities due to deconsolidation of VIEs | 6,238,000 | 0 |
Extinguishment of operating lease right-of-use assets | 0 | 1,059,000 |
Extinguishment of operating lease liabilities | 0 | 1,340,000 |
Cost of real estate investments included in accounts payable | 107,000 | 18,000 |
Issuance of common stock in lieu of cash payment for accounts payable | 36,000 | 0 |
VIE, primary beneficiary | ||
Other Significant Noncash Transactions [Line Items] | ||
Cash paid for interest, net of capitalized interest | 3,488,000 | 2,362,000 |
Capitalized interest | 2,000 | 9,000 |
Increase in note receivable - related party due to deconsolidation of VIEs | 10,341,000 | 0 |
Cost of real estate investments included in accounts payable | 45,000 | 36,000 |
Note receivable eliminated in consolidation | 0 | 2,946,000 |
Cost of real estate investments included in due to related parties | 7,000 | 46,000 |
Consolidation of VIEs | ||
Real estate investments, net | 0 | 86,402,000 |
Accounts receivable, net | 0 | 4,348,000 |
Due from related parties | 0 | 2,000 |
Operating lease - right of use assets | 0 | 8,775,000 |
Prepaid and other assets | 0 | 2,042,000 |
Notes payable, net | 0 | 80,449,000 |
Notes payable - related parties | 0 | 6,589,000 |
Accounts payable and accrued expenses | 0 | 8,148,000 |
Due to related parties | 0 | 28,000 |
Operating lease liabilities | 0 | 12,441,000 |
Other liabilities | 0 | 2,158,000 |
Noncontrolling interests | 0 | 33,732,000 |
Deconsolidation of VIEs | ||
Real estate investments, net | 83,282,000 | 74,061,000 |
Accounts receivable, net | 2,808,000 | 3,609,000 |
Operating lease - right of use assets | 10,327,000 | 8,775,000 |
Prepaid and other assets | 8,453,000 | 1,634,000 |
Due from related parties | 3,000 | 2,000 |
Due to related parties | 101,000 | 28,000 |
Notes payable, net | 82,024,000 | 68,500,000 |
Notes payable - related parties | 14,362,000 | 1,777,000 |
Accounts payable and accrued expenses | 10,655,000 | 7,038,000 |
Operating lease liabilities | 13,957,000 | 12,441,000 |
Other liabilities | 1,236,000 | 1,928,000 |
Noncontrolling interests | $ 40,787,000 | $ 21,957,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 | |
Caliber Tax Advantage Opportunity Fund LP | |||
Other Commitments [Line Items] | |||
Internal rate of return, threshold | 0.06 | 0.06 | |
Caliber Tax Advantaged Opportunity Fund II LLC | |||
Other Commitments [Line Items] | |||
Internal rate of return, threshold | 0.06 | 0.06 | |
VIE, primary beneficiary | |||
Other Commitments [Line Items] | |||
Total franchise fees | $ 2.4 | $ 1.5 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net loss attributable to CaliberCos Inc. | $ (3,805) | $ (1,207) |
Convertible debt interest | 22 | 22 |
Net loss attributable to common shareholders of CaliberCos Inc. | $ (3,783) | $ (1,185) |
Denominator: | ||
Weighted average shares outstanding – basic (in shares) | 21,542 | 18,182 |
Weighted average shares outstanding - diluted (in shares) | 21,542 | 18,182 |
Basic net loss per share attributable to common stockholders (in dollars per share) | $ (0.18) | $ (0.07) |
Diluted loss income per share attributable to common stockholders (in dollars per share) | $ (0.18) | $ (0.07) |
Net Income (Loss) Per Share -_2
Net Income (Loss) Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation (in shares) | 2,438 | 1,807 |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation (in shares) | 2,263 | 1,625 |
Additional common shares, if convertible debt were converted | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation (in shares) | 175 | 182 |
Fair Value of Financial Instr_3
Fair Value of Financial Instrument - Narrative (Details) - Excluding consolidated VIE - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 52,952 | $ 53,799 |
Real estate notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 16,100 | 16,200 |
Long-term debt, fair value | $ 9,500 | $ 9,500 |
Fair Value of Financial Instr_4
Fair Value of Financial Instrument (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 USD ($) fund | Mar. 31, 2024 USD ($) entity | Mar. 31, 2023 fund | Dec. 31, 2023 USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Number of entities deconsolidated, sold | 6 | 6 | 5 | |
Carrying Value | Hampton Inn & Suites Hotel | VIE, primary beneficiary | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Note Payable | $ 0 | $ 0 | $ 5,939 | |
Carrying Value | Southpointe Fundco, LLC | VIE, primary beneficiary | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Note Payable | 1,050 | 1,050 | 1,050 | |
Carrying Value | Tucson East, LLC | VIE, primary beneficiary | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Note Payable | 0 | 0 | 11,901 | |
Carrying Value | West Frontier, LLC | VIE, primary beneficiary | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Note Payable | 4,636 | 4,636 | 4,636 | |
Fair Value | Hampton Inn & Suites Hotel | VIE, primary beneficiary | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Note Payable | 0 | 0 | 4,762 | |
Fair Value | Southpointe Fundco, LLC | VIE, primary beneficiary | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Note Payable | 1,050 | 1,050 | 1,050 | |
Fair Value | Tucson East, LLC | VIE, primary beneficiary | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Note Payable | 0 | 0 | 11,067 | |
Fair Value | West Frontier, LLC | VIE, primary beneficiary | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Note Payable | $ 3,803 | $ 3,803 | $ 3,795 |
Derivative Instruments - Notion
Derivative Instruments - Notional Amounts (Details) - VIE, primary beneficiary - Not Designated as Hedging Instrument $ in Thousands | Mar. 31, 2024 USD ($) derivative | Dec. 31, 2023 USD ($) derivative |
Derivative [Line Items] | ||
Notional Amount | $ 18,306 | $ 73,418 |
Interest rate swap | ||
Derivative [Line Items] | ||
Number of Instruments | derivative | 1 | 1 |
Notional Amount | $ 18,306 | $ 18,418 |
Interest rate cap | ||
Derivative [Line Items] | ||
Number of Instruments | derivative | 0 | 1 |
Notional Amount | $ 0 | $ 55,000 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values by Balance Sheet Location (Details) - VIE, primary beneficiary - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Derivative assets | $ 1,401 | $ 1,216 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative assets | 1,401 | 1,216 |
Interest rate swap | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative assets | 1,401 | 1,206 |
Interest rate cap | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative assets | $ 0 | $ 10 |
Derivative Instruments - Gain (
Derivative Instruments - Gain (Loss) (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 fund | Mar. 31, 2024 entity | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) fund | |
Derivative [Line Items] | ||||
Number of entities deconsolidated, sold | 6 | 6 | 5 | |
VIE, primary beneficiary | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivatives | $ 160 | $ (279) | ||
VIE, primary beneficiary | Interest rate swap | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivatives | 195 | (322) | ||
VIE, primary beneficiary | Interest rate cap | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivatives | $ (35) | $ 43 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ in Millions | May 09, 2024 USD ($) |
VIE, primary beneficiary | |
Subsequent Event [Line Items] | |
Preferred stock issued | $ 10 |
Reduction In Force | |
Subsequent Event [Line Items] | |
Restructuring, positions eliminated, percent | 10% |
Restructuring, expected annual cost savings | $ 4 |