Highlands REIT (HHDS) 10-Q 10 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2016shares
Document and Entity Information [Abstract]
Entity Registrant Name	Highlands REIT, Inc.
Entity Central Index Key	1,661,458
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	864,890,967
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

Condensed Combined Consolidated

Condensed Combined Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Investment properties
Land	$ 121,832	$ 153,646
Building and other improvements	417,100	711,262
Construction in progress	126	0
Total	539,058	864,908
Less accumulated depreciation	(80,738)	(185,100)
Net investment properties	458,320	679,808
Cash and cash equivalents	34,181	26,972
Restricted cash and escrows	3,152	3,647
Accounts and rents receivable (net of allowance of $363 and $104)	10,769	12,554
Intangible assets, net	7,343	12,547
Deferred costs and other assets	4,247	3,626
Total assets	518,012	739,154
Liabilities
Debt, net	389,955	437,032
Accounts payable and accrued expenses	31,138	28,298
Intangible liabilities, net	3,931	5,074
Other liabilities	2,269	1,897
Total liabilities	427,293	472,301
Commitments and contingencies
Preferred Stock, Value, Issued	0	0
Stockholder’s Equity
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 864,890,967 shares issued and outstanding as of September 30, 2016	8,649	0
Additional paid in capital	1,405,504	1,534,018
Accumulated distributions in excess of net income (loss)	(1,323,434)	(1,267,165)
Total stockholders’ equity	90,719	266,853
Total liabilities and equity	$ 518,012	$ 739,154

Condensed Combined Consolidate3

Condensed Combined Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for accounts and rent receivables	$ 363	$ 104
Common stock, par value (in dollars per share)	$ 0.01	$ 0
Common Stock, Shares Authorized	1,000,000,000	0
Common Stock, Shares Issued	864,890,967	0
Common Stock, Shares Outstanding	864,890,967	0
Preferred Stock, par value (in dollars per share)	$ 0.01
Preferred Stock, Shares Authorized	50,000,000
Preferred Stock, Shares Issued	0
Preferred Stock, Shares Outstanding	0

Condensed Combined Consolidate4

Condensed Combined Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues
Rental income	$ 17,272	$ 23,918	$ 62,987	$ 72,126
Tenant recovery income	2,917	3,094	8,352	10,939
Other property income	168	381	449	747
Total revenues	20,357	27,393	71,788	83,812
Expenses
Property operating expenses	3,023	2,000	7,124	7,728
Real estate taxes	2,886	2,525	7,149	8,156
Depreciation and amortization	6,168	9,034	21,413	27,261
General and administrative expenses	3,508	3,075	10,590	9,212
Provision for asset impairment	18,967	0	61,582	0
Total expenses	34,552	16,634	107,858	52,357
Operating (loss) income	(14,195)	10,759	(36,070)	31,455
Loss on sale of investment properties, net	0	(197)	0	(197)
Other loss	0	(1)	(113)	(10)
Interest expense	(7,143)	(7,238)	(19,847)	(21,062)
(Loss) income before income taxes	(21,338)	3,323	(56,030)	10,186
Income tax expense	(2)	(9)	(239)	(24)
Net (loss) income	(21,340)	3,314	(56,269)	10,162
Less: Net income attributable to non-controlling interests	0	(8)	0	(16)
Net (loss) income attributable to Company	$ (21,340)	$ 3,306	$ (56,269)	$ 10,146
Net (loss) income per share (in dollars per share)	$ (0.02)	$ 0	$ (0.07)	$ 0.01
Weighted average shares outstanding - Basic and Diluted (in shares)	864,890,967	862,014,421	864,515,587	862,014,421

Condensed Combined Consolidate5

Condensed Combined Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Common stock	Additional Paid in Capital	Accumulated Distributions in Excess of Net (Loss) Income	Non-Controlling Interests
Beginning balance at Dec. 31, 2014	$ 317,108		$ 1,593,858	$ (1,276,875)	$ 125
Net income (loss)	10,162			10,146	16
Dividends paid	(4,620)			(4,620)
Distributions to non-controlling interests	(16)				(16)
Distributions to InvenTrust	(132,459)		(132,459)
Contributions from InvenTrust	93,459		93,459
Ending balance at Sep. 30, 2015	283,634		1,554,858	(1,271,349)	125
Beginning balance at Dec. 31, 2015	$ 266,853	$ 0	1,534,018	(1,267,165)	0
Beginning balance (in shares) at Dec. 31, 2015	0	0
Net income (loss)	$ (56,269)			(56,269)	0
Issuance of common shares and reduction in carryover basis in connection with separation from InvenTrust	(76,583)	$ 8,622	(85,205)
Issuance of common shares and reduction in carryover basis in connection with separation from InvenTrust		862,205,672
Repurchase of common shares, net	(69)	$ (2)	(67)
Repurchase of common shares, net (in shares)		(191,251)
Share-based compensation	1,282	$ 29	1,253
Share-based compensation (in shares)		2,876,546
Distributions to InvenTrust	(129,853)		(129,853)
Contributions from InvenTrust	85,358		85,358
Ending balance at Sep. 30, 2016	$ 90,719	$ 8,649	$ 1,405,504	$ (1,323,434)	$ 0
Ending balance (in shares) at Sep. 30, 2016	864,890,967	864,890,967

Condensed Combined Consolidate6

Condensed Combined Consolidated Statements of Cash Flow - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net (loss) income	$ (56,269)	$ 10,162
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	21,354	27,280
Amortization of above and below market leases, net	(728)	(312)
Amortization of debt discounts and financing costs	160	166
Straight-line rental income	2,361	1,927
Loss on sale of investment properties, net	0	(197)
Provision for asset impairment	61,582	0
Non-cash stock-based compensation expense	2,319	0
Changes in assets and liabilities:
Accounts and rents receivable	(933)	(153)
Deferred costs and other assets	(2,676)	593
Accounts payable and accrued expenses	4,464	556
Other liabilities	775	(214)
Net cash flows provided by operating activities	32,409	40,202
Cash flows from investing activities:
Capital expenditures and tenant improvements	(548)	(1,985)
Proceeds from sale of investment properties, net	0	7,860
Payment of leasing fees	(624)	(2,021)
Restricted escrows and other assets	1,941	(552)
Net cash flows provided by investing activities	769	3,302
Cash flows from financing activities:
Distributions to InvenTrust	(63,206)	(77,893)
Contributions from InvenTrust	67,444	67,773
Payoff of note payable	15,062	0
Principal payments of mortgage debt	(14,192)	(15,464)
Payment of loan fees and deposits	70	0
Dividends paid	0	4,620
Distributions paid to non-controlling interests	0	(16)
Repurchase of common shares	(69)	0
Payment for tax withholding for share-based compensation	(814)	0
Net cash flows used in financing activities	(25,969)	(30,220)
Net increase in cash and cash equivalents	7,209	13,284
Cash and cash equivalents, at beginning of period	26,972	10,291
Cash and cash equivalents, at end of period	$ 34,181	$ 23,575

Condensed Combined Consolidate7

Condensed Combined Consolidated Statements of Cash Flow - Supplemental - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Supplemental disclosure of cash flow information:
Cash paid for interest	$ 15,078	$ 23,220
Supplemental schedule of non-cash investing and financing activities:
Change in allocation of InvenTrust unsecured credit facility	(17,914)	(25,686)
Distribution of assets and liabilities of four and three assets, respectively, to InvenTrust, net	66,647	54,566
Reduction in Basis of Real Estate Investment Properties	$ 76,583	$ 0

Condensed Combined Consolidate8

Condensed Combined Consolidated Statements of Cash Flow - Parenthetical - property	Feb. 19, 2016	Jan. 28, 2015
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff
Number of retail assets distributed (in property)	4	3

Organization

Organization	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Highlands REIT, Inc. ("Highlands") is a Maryland corporation with a portfolio of single- and multi-tenant office assets, industrial assets, retail assets, correctional facilities, unimproved land and a bank branch. Prior to April 28, 2016, Highlands was a wholly owned subsidiary of InvenTrust Properties Corp. ("InvenTrust" and formerly known as Inland American Real Estate Trust, Inc.), its former parent. On April 28, 2016, Highlands was spun-off from InvenTrust through a pro rata distribution by InvenTrust of 100% of the outstanding shares of common stock, $0.01 par value per share (the "Common Stock"), of Highlands to holders of record of InvenTrust's common stock as of the close of business on April 25, 2016 (the "Record Date"). Each holder of record of InvenTrust's common stock received one share of Common Stock for every one share of InvenTrust's common stock held at the close of business on the Record Date (the "Distribution"). As a result, Highlands became an independent, self-advised, non-traded public company. Highlands intends to be taxed as, and operate in a manner that will allow it to qualify as, a real estate investment trust ("REIT") under the Internal Revenue Code of 1986, as amended (the "Code") for U.S. federal income tax purposes commencing with Highlands' short taxable year ending December 31, 2016. In connection with the Distribution, Highlands entered into a Separation and Distribution Agreement, Transition Services Agreement and Employee Matters Agreement with InvenTrust. Refer to Notes 4 and 11 for more details. Prior to the Distribution, Highlands had not conducted any business as a separate company and had no material assets or liabilities. The operations transferred to Highlands by InvenTrust are presented as if the transferred business was Highlands’ business for all historical periods presented in the accompanying condensed combined consolidated financial statements and at the carrying value of such assets and liabilities reflected in InvenTrust’s books and records. Upon the Distribution, Highlands recorded the assets acquired and liabilities assumed based on InvenTrust's basis as of the date of the Distribution. Accordingly, Highlands recorded a reduction in the basis of investment properties of $76,583 . The reduction in basis was related to an impairment loss that InvenTrust recorded upon the disposal of Highlands as part of the Distribution. The accompanying condensed combined consolidated financial statements include the accounts of Highlands and its predecessors, as well as all of Highlands' wholly owned subsidiaries (collectively, the “Company”). Wholly owned subsidiaries generally consist of limited liability companies (LLCs) and limited partnerships (LPs). The effects of all significant intercompany transactions have been eliminated. Each asset is owned by a separate legal entity, which maintains its own books and financial records, and each entity’s assets are not available to satisfy the liabilities of other affiliated entities, except as otherwise disclosed in Note 5. As of September 30, 2016 , the Company owned 18 assets and four parcels of unimproved land, for which the operating activity is reflected on the condensed combined consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015 . As of December 31, 2015 , the Company owned 22 assets and four parcels of land.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies The accompanying condensed combined consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed combined consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Refer to the Company’s audited combined consolidated financial statements for the year ended December 31, 2015 included in the Company's Registration Statement on Form 10-12G, as amended, filed with the U.S. Securities and Exchange Commission on April 13, 2016 (the "Registration Statement"), as certain note disclosures contained in such audited financial statements have been omitted from these interim condensed combined consolidated financial statements. Basis of Presentation As described in Note 1, on April 28, 2016, Highlands was spun off from InvenTrust. Prior to the Distribution, the accompanying historical condensed combined consolidated financial statements did not represent the financial position and results of a single legal entity, but rather a combination of entities under common control that had been “carved out” of InvenTrust’s consolidated financial statements and reflected significant assumptions and allocations. The condensed combined consolidated financial statements reflect the operations of certain assets and liabilities that had been historically held by InvenTrust, but which were specifically identifiable or attributable to the Company. Prior to the Distribution, the accompanying condensed combined consolidated financial statements included allocations of costs from certain corporate and shared functions provided to the Company by InvenTrust. InvenTrust allocated to the Company a portion of corporate overhead costs incurred by InvenTrust based upon the Company’s percentage share of the average invested assets of InvenTrust, which is reflected in general and administrative expense. As InvenTrust managed various asset portfolios, the extent of services and benefits a portfolio received was based on the size of its assets. Therefore, using average invested assets to allocate costs was a reasonable reflection of the services and other benefits received by the Company and complied with applicable accounting guidance. InvenTrust also allocated to the Company a portion of InvenTrust’s unsecured credit facility and the related interest expense. The unsecured credit facility was subject to a borrowing base consisting of a pool of unencumbered assets. To the extent the Company’s assets were included within the pool of unencumbered assets, the Company was allocated a portion of the unsecured credit facility. However, actual costs may have differed from allocated costs if the Company had operated as a standalone entity during such period and those differences may have been material. Prior to the Distribution, the condensed combined consolidated financial statements included transactions in which ordinary course cash transactions were processed by InvenTrust due to InvenTrust’s centralized cash management process on behalf of the Company, such as the repayment of debt, rental receipts and payables in the ordinary course of business, resulting in intercompany transactions between the Company and InvenTrust. These ordinary course intercompany transactions are considered to be effectively settled at the time of the Company’s separation from InvenTrust. Accordingly, these transactions are reflected as distributions to and contributions from InvenTrust in the condensed combined consolidated statements of cash flow as a financing activity. For the period subsequent to the spin-off from InvenTrust, the condensed consolidated financial statements reflect the Company's financial position, results of operations and cash flows in conformity with GAAP. Share Based Compensation In accordance with FASB ASC Topic 718, Accounting for Share Based Compensation, companies are required to recognize in the income statement the grant-date fair value of stock options and other equity based compensation issued to employees. Under Topic 718, the way an award is classified will affect the measurement of compensation cost. Equity classified awards are measured at grant date fair value, and amortized on a straight-line basis over the vesting period of the stock and are not subsequently re-measured. The cost of the share based payments that are fully vested at the grant date are measured and recognized at that date. Liability classified awards are measured at the grant date and are subsequently re-measured at the end of each period. The fair value of the stock awards for the purposes of recognizing stock-based compensation expense is based on the estimated fair value per share of Highlands’ Common Stock as determined by the Highlands' board of directors on the grant date. Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is calculated by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding during the period plus any additional common shares that would have been outstanding if the dilutive potential common shares had been issued. Any anti-dilutive securities are excluded from the diluted earnings per-share calculation. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective, although it will not affect the accounting for rental related revenues. In April 2015, the FASB approved an amendment to the ASU, deferring the effective date one year to annual reporting periods beginning after December 15, 2017 for public entities. The standard permits the use of either the retrospective or cumulative effect transition method. Early adoption is prohibited. The Company is evaluating the effect that ASU No. 2014-09 will have on its condensed combined consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In February 2016, the FASB issued ASU 2016-02, Leases , amending the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 will be effective for annual reporting periods beginning after December 15, 2018, and early adoption is permitted as of the standard’s issuance date. The new standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company does not expect that its adoption will have a material effect on its condensed combined consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing diversity in practice. The cash flow issues include debt prepayment or debt extinguishment costs and proceeds from the settlement of insurance claims. The ASU is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We are currently evaluating the impact the new standard may have on our condensed combined consolidated financial statements. Recently Adopted Accounting Pronouncements In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected. The Company adopted ASU 2015-03 effective as of January 1, 2016 with retrospective application to the Company's December 31, 2015 combined consolidated balance sheet. The effect of the adoption of ASU 2015-03 was to reclassify debt issuance costs of approximately $1,938 as of December 31, 2015 from deferred costs and other assets in the condensed combined consolidated balance sheets to a contra account as a deduction from debt in the condensed combined consolidated balance sheets. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Accounting, which requires that all excess tax benefits and tax deficiencies related to stock based compensation arrangements must be recognized in the income statement as they occur as opposed to the current guidance where excess tax benefits are recorded in equity. ASU 2016-09 also allows entities to make an accounting policy election to either continue to estimate forfeitures on stock based compensation arrangements or to account for forfeitures as they occur. ASU 2016-09 also allows an employer with statutory income tax withholding obligations to withhold shares with a fair value up to the amount of tax owed using the maximum statutory tax rate in the employee’s applicable jurisdiction. The Company adopted ASU 2016-09 effective as of April 1, 2016.

Disposed Assets

Disposed Assets	9 Months Ended
	Sep. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]
Disposed Assets	Disposed Assets During the three and nine months ended September 30, 2016 , the Company did not sell any assets. On February 19, 2016, the Company distributed the assets and liabilities associated with four retail assets to InvenTrust. The distribution was recorded at carrying value due to common control, and the Company did not realize any gain or loss on disposal. The distribution is reflected as a non-cash distribution in the condensed combined consolidated statements of cash flow for the nine months ended September 30, 2016 . The Company sold one net lease asset during the nine months ended September 30, 2015 for an aggregate gross disposition price of $8,200 . The table below reflects sales activity for the nine months ended September 30, 2015 for the one asset included in continuing operations on the condensed combined consolidated statements of operations. Property Date Gross Disposition Price Square Feet (unaudited) Citizens Manchester 7/9/2015 $ 8,200 148,000 Square Feet On January 28, 2015, the Company distributed the assets and liabilities associated with three retail assets to InvenTrust. The distribution was recorded at carrying value due to common control, and the Company did not realize any gain or loss on disposal. The distribution is reflected as a non-cash distribution in the condensed combined consolidated statements of cash flow for the nine months ended September 30, 2015 . There were no assets that qualified as discontinued operations during the nine months ended September 30, 2015 and 2016. All asset dispositions and asset distributions to Inventrust are included as a component of income from continuing operations.

Transactions with Related Parti

Transactions with Related Parties	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Transactions with Related Parties	Transactions with Related Parties The following table summarizes the Company’s related party transactions for the three and nine months ended September 30, 2016 and 2015 . Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 General and administrative expense allocation (a) $ — $ 2,913 $ 3,324 $ 8,689 Transition services fees (b) $ 33 $ — $ 84 $ — (a) Prior to the Distribution, general and administrative expense includes allocations of costs from certain corporate and shared functions provided to the Company by InvenTrust. InvenTrust allocated to the Company a portion of corporate overhead costs incurred by InvenTrust, which was based upon the Company’s percentage share of the average invested assets of InvenTrust. As InvenTrust managed various asset portfolios, the extent of services and benefits a portfolio received was based on the size of its assets. The Company believes that using average invested assets to allocate costs is a reasonable reflection of the services and other benefits received by the Company and complies with applicable accounting guidance. However, actual costs may have differed from allocated costs if the Company had operated as a standalone entity during such period and those differences may have been material. Subsequent to the Distribution, the Company was not allocated any costs. (b) In connection with the Distribution, the Company entered into the Transition Services Agreement with InvenTrust, under which InvenTrust has agreed to provide certain transition services to the Company, including services related to information technology systems, financial reporting and accounting and legal services. There is a flat monthly fee per service and the total amount paid to InvenTrust will not be greater than approximately $100 . The expiration date varies by service provided and the agreement will terminate on the earlier of December 31, 2016 or the termination of the last service provided under it. As of December 31, 2015 , the Company was allocated a portion of InvenTrust's unsecured credit facility of $17,914 . Subsequent to the Distribution, the Company is no longer allocated any portion of Inventrust's debt. In addition, as of September 30, 2016 and December 31, 2015 , the Company had a note payable with InvenTrust of $0 and $15,062 , respectively. Refer to Note 5 for additional detail.

Debt

Debt	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Debt	Debt Mortgages Payable Mortgage loans outstanding as of September 30, 2016 and December 31, 2015 were $391,802 and $405,994 , respectively, and had a weighted average interest rate of 6.05% and 6.09% per annum, respectively. Deferred financing costs, net, as of September 30, 2016 and December 31, 2015 were $1,847 and $1,938 , respectively. As of September 30, 2016 , scheduled maturities for the Company’s outstanding mortgage indebtedness had various due dates through May 2037, as follows: For the year ended December 31, As of September 30, 2016 Weighted average interest rate 2016 $ 202,790 6.51 % 2017 30,275 5.57 % 2018 — — % 2019 — — % 2020 — — % Thereafter 158,737 5.57 % Total $ 391,802 6.05 % The amount maturing in 2016 represents four mortgage loans, two of which relate to retail assets and mature in December 2016, the third relates to our Dulles Executive Plaza asset, and the fourth relates to the AT&T-Hoffman Estates asset. The Company's ability to pay off mortgages when they become due is dependent upon the Company's ability either to refinance the related mortgage debt or to sell the related asset. With respect to each loan, if the applicable wholly owned property-owning subsidiary is unable to refinance or sell the related asset, or in the event that the estimated asset value is less than the mortgage balance, the applicable wholly owned property-owning subsidiary may, if appropriate, satisfy a mortgage obligation by transferring title of the asset to the lender or permitting a lender to foreclose. As of September 30, 2016 and December 31, 2015 , no debt is recourse to the Company, although Highlands or its subsidiaries may act as guarantor under customary, non-recourse carveout clauses in our wholly owned property-owning subsidiaries' mortgage loans. Some of the mortgage loans require compliance with certain covenants, such as debt service ratios, investment restrictions and distribution limitations. As of September 30, 2016 and December 31, 2015 , other than otherwise disclosed in this Note 5, the company is in compliance with such covenants in all material respects. As of September 30, 2016 , the mortgage loan on the AT&T-Cleveland asset is in “hyper-amortization,” and, as a result, all net operating income from this asset, less management operating expenses, is used to pay down the principal amount of the loan. Net cash generated is not available for general use of the Company and is classified as restricted. The loan on the Company's Dulles Executive Plaza asset matured on September 1, 2016. On August 23, 2016, we received notice from the special servicer that loan went into maturity default. The Company is having further discussions with the special servicer regarding the future of the asset. In addition, all rental payments, less certain expenses, for Dulles Executive Plaza are currently being “swept” and held by the lender pursuant to the loan agreement; as a result, net cash generated is not available for general use of the Company and is classified as restricted. For Sherman Plaza, all rental payments are being “swept” and held by the lender; however, the lender remits excess cash to the Company for its general use after the debt service payment has been paid. On October 1, 2016, the Company's AT&T-St. Louis property went into "cash trap." All income from the asset is being "swept" by the lender, used to pay debt service and other charges, and to the extent income exceeds such charges the Company receives a lender-approved reimbursement for operating expenses associated with the property. Additional funds, if any, are held by the lender as additional collateral for the loan. On June 29, 2016, the Company received notice that the loan in respect of the AT&T-Hoffman Estates asset had been transferred to the special servicer, C-III Asset Management, LLC. On August 9, 2016, the Company received written notice from the lender that an event of default has occurred under the loan agreement relating to the AT&T-Hoffman Estates asset for failure to pay required installments of principal and interest, and that, as a result, the entire loan amount is now due and payable. On August 19, 2016, C-III Asset Management LLC filed a foreclosure complaint in respect of AT&T-Hoffman Estates in the Circuit Court of Cook County, Illinois. On September 12, 2016, the Circuit Court entered an order appointing a receiver to manage the property during the pendency of the foreclosure proceedings. As of September 30, 2016 , AT&T-Hoffman Estates is unoccupied. The Company intends to satisfy its mortgage obligations for AT&T-Hoffman Estates of $113,810 by permitting the lender to foreclose on the property, which would result in a gain on the extinguishment of debt. In January 2015, the assets and liabilities associated with three retail assets were distributed to InvenTrust. Two of these assets were encumbered by a mortgage. As part of the distribution of these assets to InvenTrust, the mortgage payables of $19,893 were also distributed at carrying value due to common control. Unsecured credit facility On November 5, 2015, InvenTrust entered into a term loan credit agreement for a $300,000 unsecured credit facility. The term loan credit facility consists of two tranches: a five -year tranche maturing on January 15, 2021, and a seven -year tranche maturing on November 5, 2022. Based upon InvenTrust's total leverage ratio at December 31, 2015, the five-year tranche bears an interest rate of LIBOR plus 1.30% and the seven-year tranche bears an interest rate of LIBOR plus 1.60% . The term loan credit facility is subject to a borrowing base consisting of a pool of unencumbered assets. To the extent the Company’s assets were included within the pool of unencumbered assets, the Company was allocated a portion of the unsecured credit facility. As of the Distribution, the Company no longer has an allocated portion of the unsecured credit facility; therefore, as of September 30, 2016 , the Company’s allocated portion of the term loan was $0 . As of December 31, 2015 , the Company’s allocated portion of the term loan was $17,914 and the interest rate was 1.59% . On February 3, 2015, InvenTrust entered into an amended and restated credit agreement for a $300,000 unsecured revolving line of credit, which matures on February 2, 2019. The unsecured revolving line of credit bears interest at a rate equal to LIBOR plus 1.40% and requires the maintenance of certain financial covenants. The unsecured credit facility is subject to a borrowing base consisting of a pool of unencumbered assets. To the extent the Company’s assets were included within the pool of unencumbered assets, the Company was allocated its proportionate share of the revolving line of credit. As of December 31, 2015 , the Company’s allocated portion of the revolving line of credit was $0 . As of the Distribution, the Company no longer has an allocated portion of the unsecured credit facility. Note Payable On May 1, 2014, the Company entered into a note payable in the amount of $32,908 with InvenTrust, which matured on demand. The note payable was non-amortizing with an interest rate of 8.50% . Such interest was payable on demand or, until such time as demand was made, monthly in arrears, beginning on June 1, 2014 and continuing on the first day of each month thereafter until the note had been paid in full. On March 25, 2016, the outstanding principal balance of $15,062 and accrued interest of $89 was repaid in full. As of December 31, 2015 , the balance of this note payable was $15,062 .

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements In accordance with ASC 820, Fair Value Measurement and Disclosures, the Company defines fair value based on the price that would be received upon sale of an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below: • Level 1 - Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. • Level 2 - Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company has estimated fair value using available market information and valuation methodologies the Company believes to be appropriate for these purposes. Considerable judgment and a high degree of subjectivity are involved in developing these estimates and, accordingly, they are not necessarily indicative of amounts that would be realized upon disposition. Non-Recurring Measurements During the three and nine months ended September 30, 2016 , the Company identified certain assets which may have a reduction in the expected holding period, or a major tenant moving out or not renewing an expiring lease, which represented an impairment trigger, and recorded an impairment of investment properties of $18,967 on one net lease asset and $61,582 on three net lease assets, respectively. The following table presents these assets measured at fair value on a nonrecurring basis for the nine months ended September 30, 2016 aggregated by the level within the fair value hierarchy in which those measurements fall. Methods and assumptions used to estimate the fair value of these assets are described after the table. Fair Value Level 1 Level 2 Level 3 Total Provision for impairment September 30, 2016 Investment Properties — — $ 69,654 (a) $ 69,654 $ 61,582 (a) Represents the fair values of three net lease assets. The estimated fair value relating to the investment properties’ impairment analysis was based on 10 -year discounted cash flow models, which includes contractual inflows and outflows over a specific holding period. The cash flows consist of observable inputs such as contractual revenues and unobservable inputs such as forecasted revenues and expenses. These unobservable inputs are based on market conditions and the Company’s expected growth rates. Capitalization rates were 7.50% and discount rates ranging from 7.50% to 9.50% were utilized in the model and are based upon observable rates that the Company believes to be within a reasonable range of current market rates. The Company did not have any assets measured at fair value on a nonrecurring basis as of December 31, 2015 . During the three and nine months ended September 30, 2015 , the Company recognized no provision for asset impairment. Financial Instruments Not Measured at Fair Value The table below represents the fair value of financial instruments presented at carrying values in the condensed combined consolidated financial statements as of September 30, 2016 and as of December 31, 2015 . September 30, 2016 December 31, 2015 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Mortgages payable $ 391,802 $ 396,905 $ 405,994 $ 410,888 Unsecured credit facility — — 17,914 17,914 Note payable — — 15,062 15,062 The Company estimates the fair value of its debt instruments using a weighted average market effective interest rate of 4.68% and 4.52% per annum as of September 30, 2016 and December 31, 2015 . The Company estimates the fair value of its mortgages payable by discounting the anticipated future cash flows of each instrument at rates currently offered to the Company by its lenders for similar debt instruments of comparable maturities. The rates used are based on credit spreads observed in the marketplace during the quarter for similar debt instruments, and a floor rate that the Company has derived using its subjective judgment for each asset segment. Based on this, the Company determines the appropriate rate for each of its individual mortgages payable based upon the specific terms of the agreement, including the term to maturity, the quality and nature of the underlying property and its leverage ratio. The weighted average market effective interest rates used range from 4.10% to 5.58% and 3.99% to 4.99% as of September 30, 2016 and December 31, 2015 , respectively. The fair value estimate of the unsecured credit facility approximated the carrying value due to limited market volatility in pricing. The assumptions reflect the terms currently available on similar borrowing terms to borrowers with credit profiles similar to the Company’s. The Company has determined that its debt instrument valuations are classified in Level 2 of the fair value hierarchy.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company intends to be taxed as, and operate in a manner that will allow the Company to qualify as a REIT for U.S. federal income tax purposes beginning with the Company’s short taxable year commencing immediately prior to the Company’s separation from InvenTrust and ending on December 31, 2016. So long as it qualifies as a REIT, the Company generally will not be subject to federal income tax on taxable income that is distributed currently to stockholders. A REIT is subject to a number of organizational and operational requirements including a requirement that it currently distribute at least 90% of its REIT taxable income (excluding capital gains) to its stockholders each year. If the Company fails to qualify as a REIT in any taxable year, without the benefit of certain relief provisions, the Company will be subject to federal and state income tax on its taxable income at regular corporate tax rates and would not be able to re-elect REIT status during the four years following the year of the failure. Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income, property or net worth and federal income and excise taxes on its undistributed income. Prior to the Distribution, the Company was a qualified REIT subsidiary (“QRS”) of InvenTrust, which had elected to be taxed as a REIT and had operated in a manner intended to qualify as a REIT under the Code. As a QRS, the Company was disregarded as a separate entity from InvenTrust for U.S. federal income tax purposes. All assets, liabilities and items of income, deduction and credit of the Company were treated for federal income tax purposes as those of InvenTrust. The Company’s subsidiary, MB REIT (Florida), Inc. (“MB REIT”), previously elected and operated so as to qualify to be taxed as a REIT under the Code. On December 15, 2015, MB REIT redeemed all of the outstanding shares of its Series B Preferred Stock and became a wholly owned subsidiary of InvenTrust. At that time, MB REIT became a QRS of InvenTrust and ceased to be treated as a separate REIT for U.S. federal income tax purposes. As a result of certain pre-Distribution reorganization transactions, following the Distribution, MB REIT is currently disregarded as a separate entity from the Company for federal income tax purposes and is a QRS of the Company. All assets, liabilities and items of income, deduction and credit of MB REIT are treated for federal income tax purposes as those of the Company. During the three months ended September 30, 2016 and 2015 , an income tax expense of $2 and $9 , respectively, was included on the condensed combined consolidated statements of operations. During the nine months ended September 30, 2016 and 2015 , an income tax expense of $239 and $24 , respectively, was included on the condensed combined consolidated statements of operations.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting The Company currently has three business segments, consisting of (i) Net Lease, (ii) Retail and (iii) Multi-Tenant Office. The net lease segment consists of single-tenant office and industrial assets, as well as the Company’s correctional facilities. The Company’s unimproved land is presented in Other. For the nine months ended September 30, 2016 , approximately 45% of the Company’s revenue from continuing operations was generated by three net lease assets leased to AT&T, Inc. As a result of the concentration of revenue generated from these assets, if AT&T, Inc. were to cease paying rent or fulfilling its other monetary obligations, the Company would have significantly reduced revenues and/or higher expenses until the defaults were cured or the assets were leased to a new tenant or tenants, if at all. Approximately 21% of the Company’s revenue from continuing operations for the nine months ended September 30, 2016 was generated by the Company’s AT&T-Hoffman Estates asset. The term of the lease on the AT&T-Hoffman Estates asset expired on August 15, 2016 and the asset is no longer generating revenue for the Company. As of September 30, 2016, the asset is unoccupied. Approximately 17% of the Company’s revenue from continuing operations for the nine months ended September 30, 2016 was generated by the Company’s AT&T-St. Louis asset. The term of the lease on the AT&T-St. Louis asset is scheduled to expire on September 30, 2017 and the Company did not receive notice that the tenant intends to renew the lease during the contractual renewal period, which expired September 1, 2016. The following table summarizes net property operations income by segment for the three months ended September 30, 2016 . Total Net Lease Retail Multi-Tenant Office Other Rental income $ 17,272 $ 12,299 $ 4,211 $ 762 $ — Tenant recovery income 2,917 904 1,936 77 — Other property income 168 143 18 1 6 Total income 20,357 13,346 6,165 840 6 Operating expenses 5,909 1,831 2,597 1,078 403 Net operating income (loss) $ 14,448 $ 11,515 $ 3,568 $ (238 ) $ (397 ) Non-allocated expenses (a) (9,676 ) Other income and expenses (b) (7,145 ) Provision for asset impairment (c) (18,967 ) Net loss attributable to the Company $ (21,340 ) (a) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of other loss, interest expense, and income tax expense. (c) Provision for asset impairment includes $18,967 related to one net lease asset. The following table summarizes net property operations income by segment for the three months ended September 30, 2015 . Total Net Lease Retail Multi-Tenant Office Other Rental income $ 23,918 $ 15,294 $ 5,928 $ 2,696 $ — Tenant recovery income 3,094 865 2,030 199 — Other property income 381 123 199 57 2 Total income 27,393 16,282 8,157 2,952 2 Operating expenses 4,525 954 2,740 711 120 Net operating income (loss) $ 22,868 $ 15,328 $ 5,417 $ 2,241 $ (118 ) Non-allocated expenses (a) (12,109 ) Other income and expenses (b) (7,445 ) Net income $ 3,314 Less: net income attributable to non-controlling interests (8 ) Net income attributable to Company $ 3,306 (a) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of loss on sale of investment properties, other loss, interest expense, and income tax expense. The following table summarizes net property operations income by segment for the nine months ended September 30, 2016 . Total Net Lease Retail Multi-Tenant Office Other Rental income $ 62,987 $ 42,791 $ 13,630 $ 6,566 $ — Tenant recovery income 8,352 2,452 5,466 434 — Other property income 449 421 79 (75 ) 24 Total income 71,788 45,664 19,175 6,925 24 Operating expenses 14,273 3,770 7,022 2,732 749 Net operating income (loss) $ 57,515 $ 41,894 $ 12,153 $ 4,193 $ (725 ) Non-allocated expenses (a) (32,003 ) Other income and expenses (b) (20,199 ) Provision for asset impairment (c) (61,582 ) Net loss attributable to the Company $ (56,269 ) Balance Sheet Data Real estate assets, net (d) $ 465,663 $ 185,483 $ 155,063 $ 93,490 $ 31,627 Non-segmented assets (e) 52,349 Total assets 518,012 Capital expenditures $ 548 $ — $ 422 $ 126 $ — (a) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of other loss, interest expense, and income tax expense. (c) Provision for asset impairment includes $61,582 related to three net lease assets. (d) Real estate assets include intangible assets, net of amortization. (e) Non-segmented assets include cash and cash equivalents, restricted cash and escrows, accounts and rents receivable and deferred costs and other assets. The following table summarizes net property operations income by segment for the nine months ended September 30, 2015 . Total Net Lease Retail Multi-Tenant Office Other Rental income $ 72,126 $ 46,051 $ 18,247 $ 7,828 $ — Tenant recovery income 10,939 2,754 7,599 586 — Other property income 747 415 229 89 14 Total income 83,812 49,220 26,075 8,503 14 Operating expenses 15,884 3,688 9,523 2,326 347 Net operating income (loss) $ 67,928 $ 45,532 $ 16,552 $ 6,177 $ (333 ) Non-allocated expenses (a) (36,473 ) Other income and expenses (b) (21,293 ) Net income $ 10,162 Less: net income attributable to non-controlling interests (16 ) Net income attributable to Company $ 10,146 (a) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of loss on sale of investment properties, other income, interest expense and income tax expense.

Net (Loss) Income per Share

Net (Loss) Income per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per common share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the period, plus any additional common shares that would have been outstanding if the dilutive potential common shares had been issued. For periods prior to the Distribution, basic and diluted earnings per share was calculated by dividing net income attributable to the Company by the 862.0 million shares of Common Stock outstanding upon the completion of the Distribution. The following table reconciles net (loss) income attributable to the Company to basic and diluted EPS (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator: Net (loss) income $ (21,340 ) $ 3,314 $ (56,269 ) $ 10,162 Less: Net income attributable to non-controlling interests — (8 ) — (16 ) Net (loss) income attributable to Company $ (21,340 ) $ 3,306 $ (56,269 ) $ 10,146 Denominator: Weighted average shares outstanding - basic and diluted 864,890,967 862,014,421 864,515,587 862,014,421 Basic and diluted (loss) income per share: Net (loss) income per common share $ (0.02 ) $ 0.00 $ (0.07 ) $ 0.01

Share Based Compensation

Share Based Compensation	9 Months Ended
	Sep. 30, 2016
Share-based Compensation [Abstract]
Share Based Compensation	Share Based Compensation Incentive Award Plan On April 28, 2016, the board of directors adopted, ratified and approved the Highlands REIT, Inc. 2016 Incentive Award Plan (the "Incentive Award Plan"), under which the Company may grant cash and equity-based incentive awards to eligible employees, directors, and consultants. Prior to the Company’s spin-off from InvenTrust, the board of directors of the Company (then a wholly owned subsidiary of InvenTrust) adopted, and InvenTrust, as the sole stockholder of Highlands, approved, the Incentive Awards Plan. To date, the Company has granted 5,138,889 shares of fully vested stock awards. Additionally, pursuant to employment agreements with certain of its executive officers, the Company has granted shares with an aggregate value of $1.1 million that will fully vest on March 15, 2017 , subject to applicable executives continued employment with the Company through the vest date. Under the Incentive Award Plan, the Company is authorized to grant up to 43,000,000 shares of the Company's common stock pursuant to awards under the plan. At September 30, 2016 , 34,944,444 shares were available for future issuance under the Incentive Award Plan. A summary of the Company's stock awards activity as of September 30, 2016 is as follows: Non-Vested stock awards Stock Awards (#) Weighted Average Grant Date Fair Value Balance at January 1, 2016 — — Granted 8,055,556 $ 0.36 Vested (5,138,889 ) 0.36 Forfeited — — Balance at September 30, 2016 2,916,667 $ — For the three and nine months ended September 30, 2016 , the Company recognized stock-based compensation expense of $469 and $2,319 related to the Incentive Award Plan, respectively. At September 30, 2016 , there was approximately $581 of total unrecognized compensation expense related to these awards; that cost is expected to be recognized through March 15, 2017. No stock-based compensation expense was recognized for the three and nine months ended September 30, 2015 . For the three and nine months ended September 30, 2016 , the Company paid $814 related to tax withholding for share-based compensation.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company is subject, from time to time, to various legal proceedings and claims that arise in the ordinary course of business. While the resolution of these matters cannot be predicted with certainty, management believes, based on currently available information, that the final outcome of such matters will not have a material adverse effect on the financial statements of the Company. In addition, in connection with the Company’s separation from InvenTrust, on April 14, 2016, the Company entered into a Separation and Distribution Agreement, and on April 28, 2016, the Company entered into a Transition Services Agreement and Employee Matters Agreement, each with InvenTrust. Pursuant to the Separation and Distribution Agreement, Highlands has agreed to indemnify, defend and hold harmless InvenTrust and its affiliates and each of their respective current or former stockholders, directors, officers, agents and employees and their respective heirs, executors, administrators, successors and assigns from and against all liabilities relating to, arising out of or resulting from (i) the liabilities assumed by Highlands in the Separation and Distribution Agreement, Transition Services Agreement and Employee Matters Agreement, (ii) any breach by Highlands or any of its subsidiaries of the Separation and Distribution Agreement, Transition Services Agreement and Employee Matters Agreement (iii) losses arising from third party claims relating to the separation and distribution and (iv) any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, with respect to all information contained in the Registration Statement, other than specified information relating to and provided by InvenTrust (the “Specified InvenTrust Information”). Similarly, InvenTrust has agreed to indemnify, defend and hold harmless Highlands and its affiliates and each of their respective current or former stockholders, directors, officers, agents and employees and their respective heirs, executors, administrators, successors and assigns from and against all liabilities relating to, arising out of or resulting from (i) the liabilities assumed by InvenTrust in the Separation and Distribution Agreement, Transition Services Agreement and Employee Matters Agreement, (ii) any breach by InvenTrust or any of its subsidiaries of the Separation and Distribution Agreement, Transition Services Agreement and Employee Matters Agreement and (iii) the Specified InvenTrust Information. InvenTrust and Highlands will not be deemed to be affiliates of the other for purposes of determining the above described indemnification obligations. Highlands has also agreed to indemnify InvenTrust against all taxes related to the Company, its subsidiaries and its assets, including taxes attributable to periods prior to the separation and distribution. InvenTrust has agreed to indemnify the Company for any taxes attributable to InvenTrust’s or MB REIT’s failure to qualify as a REIT for any taxable year ending on or before December 31, 2016.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On November 4, 2016 , the Company completed a $10,500 refinancing of a retail asset. The loan matures in November 2026, has a fixed rate of 4.35% , is interest only for the first year and amortizes based on a 30 -year schedule beginning on November 4, 2017. The property was previously encumbered by a $9,071 mortgage with an interest rate of 5.99% maturing in December, 2016, which the company paid off in November of 2016. .

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	The accompanying condensed combined consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed combined consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Refer to the Company’s audited combined consolidated financial statements for the year ended December 31, 2015 included in the Company's Registration Statement on Form 10-12G, as amended, filed with the U.S. Securities and Exchange Commission on April 13, 2016 (the "Registration Statement"), as certain note disclosures contained in such audited financial statements have been omitted from these interim condensed combined consolidated financial statements. Basis of Presentation As described in Note 1, on April 28, 2016, Highlands was spun off from InvenTrust. Prior to the Distribution, the accompanying historical condensed combined consolidated financial statements did not represent the financial position and results of a single legal entity, but rather a combination of entities under common control that had been “carved out” of InvenTrust’s consolidated financial statements and reflected significant assumptions and allocations. The condensed combined consolidated financial statements reflect the operations of certain assets and liabilities that had been historically held by InvenTrust, but which were specifically identifiable or attributable to the Company. Prior to the Distribution, the accompanying condensed combined consolidated financial statements included allocations of costs from certain corporate and shared functions provided to the Company by InvenTrust. InvenTrust allocated to the Company a portion of corporate overhead costs incurred by InvenTrust based upon the Company’s percentage share of the average invested assets of InvenTrust, which is reflected in general and administrative expense. As InvenTrust managed various asset portfolios, the extent of services and benefits a portfolio received was based on the size of its assets. Therefore, using average invested assets to allocate costs was a reasonable reflection of the services and other benefits received by the Company and complied with applicable accounting guidance. InvenTrust also allocated to the Company a portion of InvenTrust’s unsecured credit facility and the related interest expense. The unsecured credit facility was subject to a borrowing base consisting of a pool of unencumbered assets. To the extent the Company’s assets were included within the pool of unencumbered assets, the Company was allocated a portion of the unsecured credit facility. However, actual costs may have differed from allocated costs if the Company had operated as a standalone entity during such period and those differences may have been material. Prior to the Distribution, the condensed combined consolidated financial statements included transactions in which ordinary course cash transactions were processed by InvenTrust due to InvenTrust’s centralized cash management process on behalf of the Company, such as the repayment of debt, rental receipts and payables in the ordinary course of business, resulting in intercompany transactions between the Company and InvenTrust. These ordinary course intercompany transactions are considered to be effectively settled at the time of the Company’s separation from InvenTrust. Accordingly, these transactions are reflected as distributions to and contributions from InvenTrust in the condensed combined consolidated statements of cash flow as a financing activity. For the period subsequent to the spin-off from InvenTrust, the condensed consolidated financial statements reflect the Company's financial position, results of operations and cash flows in conformity with GAAP.
Share Based Compensation	Share Based Compensation In accordance with FASB ASC Topic 718, Accounting for Share Based Compensation, companies are required to recognize in the income statement the grant-date fair value of stock options and other equity based compensation issued to employees. Under Topic 718, the way an award is classified will affect the measurement of compensation cost. Equity classified awards are measured at grant date fair value, and amortized on a straight-line basis over the vesting period of the stock and are not subsequently re-measured. The cost of the share based payments that are fully vested at the grant date are measured and recognized at that date. Liability classified awards are measured at the grant date and are subsequently re-measured at the end of each period. The fair value of the stock awards for the purposes of recognizing stock-based compensation expense is based on the estimated fair value per share of Highlands’ Common Stock as determined by the Highlands' board of directors on the grant date.
Earnings Per Share	Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is calculated by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding during the period plus any additional common shares that would have been outstanding if the dilutive potential common shares had been issued. Any anti-dilutive securities are excluded from the diluted earnings per-share calculation.
Recently Issued Accounting Pronouncements and Recently Adopted Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective, although it will not affect the accounting for rental related revenues. In April 2015, the FASB approved an amendment to the ASU, deferring the effective date one year to annual reporting periods beginning after December 15, 2017 for public entities. The standard permits the use of either the retrospective or cumulative effect transition method. Early adoption is prohibited. The Company is evaluating the effect that ASU No. 2014-09 will have on its condensed combined consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In February 2016, the FASB issued ASU 2016-02, Leases , amending the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 will be effective for annual reporting periods beginning after December 15, 2018, and early adoption is permitted as of the standard’s issuance date. The new standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company does not expect that its adoption will have a material effect on its condensed combined consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing diversity in practice. The cash flow issues include debt prepayment or debt extinguishment costs and proceeds from the settlement of insurance claims. The ASU is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We are currently evaluating the impact the new standard may have on our condensed combined consolidated financial statements. Recently Adopted Accounting Pronouncements In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected. The Company adopted ASU 2015-03 effective as of January 1, 2016 with retrospective application to the Company's December 31, 2015 combined consolidated balance sheet. The effect of the adoption of ASU 2015-03 was to reclassify debt issuance costs of approximately $1,938 as of December 31, 2015 from deferred costs and other assets in the condensed combined consolidated balance sheets to a contra account as a deduction from debt in the condensed combined consolidated balance sheets. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Accounting, which requires that all excess tax benefits and tax deficiencies related to stock based compensation arrangements must be recognized in the income statement as they occur as opposed to the current guidance where excess tax benefits are recorded in equity. ASU 2016-09 also allows entities to make an accounting policy election to either continue to estimate forfeitures on stock based compensation arrangements or to account for forfeitures as they occur. ASU 2016-09 also allows an employer with statutory income tax withholding obligations to withhold shares with a fair value up to the amount of tax owed using the maximum statutory tax rate in the employee’s applicable jurisdiction. The Company adopted ASU 2016-09 effective as of April 1, 2016.

Transactions with Related Par22

Transactions with Related Parties (Tables)	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Summary of Related Party Transactions	The following table summarizes the Company’s related party transactions for the three and nine months ended September 30, 2016 and 2015 . Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 General and administrative expense allocation (a) $ — $ 2,913 $ 3,324 $ 8,689 Transition services fees (b) $ 33 $ — $ 84 $ — (a) Prior to the Distribution, general and administrative expense includes allocations of costs from certain corporate and shared functions provided to the Company by InvenTrust. InvenTrust allocated to the Company a portion of corporate overhead costs incurred by InvenTrust, which was based upon the Company’s percentage share of the average invested assets of InvenTrust. As InvenTrust managed various asset portfolios, the extent of services and benefits a portfolio received was based on the size of its assets. The Company believes that using average invested assets to allocate costs is a reasonable reflection of the services and other benefits received by the Company and complies with applicable accounting guidance. However, actual costs may have differed from allocated costs if the Company had operated as a standalone entity during such period and those differences may have been material. Subsequent to the Distribution, the Company was not allocated any costs. (b) In connection with the Distribution, the Company entered into the Transition Services Agreement with InvenTrust, under which InvenTrust has agreed to provide certain transition services to the Company, including services related to information technology systems, financial reporting and accounting and legal services. There is a flat monthly fee per service and the total amount paid to InvenTrust will not be greater than approximately $100 . The expiration date varies by service provided and the agreement will terminate on the earlier of December 31, 2016 or the termination of the last service provided under it.

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Scheduled Maturities of Mortgage Indebtedness	As of September 30, 2016 , scheduled maturities for the Company’s outstanding mortgage indebtedness had various due dates through May 2037, as follows: For the year ended December 31, As of September 30, 2016 Weighted average interest rate 2016 $ 202,790 6.51 % 2017 30,275 5.57 % 2018 — — % 2019 — — % 2020 — — % Thereafter 158,737 5.57 % Total $ 391,802 6.05 %

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of Assets Measured on a Non-Recurring Basis	The following table presents these assets measured at fair value on a nonrecurring basis for the nine months ended September 30, 2016 aggregated by the level within the fair value hierarchy in which those measurements fall. Methods and assumptions used to estimate the fair value of these assets are described after the table. Fair Value Level 1 Level 2 Level 3 Total Provision for impairment September 30, 2016 Investment Properties — — $ 69,654 (a) $ 69,654 $ 61,582 (a) Represents the fair values of three net lease assets. The estimated fair value relating to the investment properties’ impairment analysis was based on 10 -year discounted cash flow models, which includes contractual inflows and outflows over a specific holding period. The cash flows consist of observable inputs such as contractual revenues and unobservable inputs such as forecasted revenues and expenses. These unobservable inputs are based on market conditions and the Company’s expected growth rates. Capitalization rates were 7.50% and discount rates ranging from 7.50% to 9.50% were utilized in the model and are based upon observable rates that the Company believes to be within a reasonable range of current market rates.
Schedule of the Fair Value of Financial Instruments	The table below represents the fair value of financial instruments presented at carrying values in the condensed combined consolidated financial statements as of September 30, 2016 and as of December 31, 2015 . September 30, 2016 December 31, 2015 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Mortgages payable $ 391,802 $ 396,905 $ 405,994 $ 410,888 Unsecured credit facility — — 17,914 17,914 Note payable — — 15,062 15,062

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Summary of Net Property Operations	The following table summarizes net property operations income by segment for the three months ended September 30, 2016 . Total Net Lease Retail Multi-Tenant Office Other Rental income $ 17,272 $ 12,299 $ 4,211 $ 762 $ — Tenant recovery income 2,917 904 1,936 77 — Other property income 168 143 18 1 6 Total income 20,357 13,346 6,165 840 6 Operating expenses 5,909 1,831 2,597 1,078 403 Net operating income (loss) $ 14,448 $ 11,515 $ 3,568 $ (238 ) $ (397 ) Non-allocated expenses (a) (9,676 ) Other income and expenses (b) (7,145 ) Provision for asset impairment (c) (18,967 ) Net loss attributable to the Company $ (21,340 ) (a) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of other loss, interest expense, and income tax expense. (c) Provision for asset impairment includes $18,967 related to one net lease asset. The following table summarizes net property operations income by segment for the three months ended September 30, 2015 . Total Net Lease Retail Multi-Tenant Office Other Rental income $ 23,918 $ 15,294 $ 5,928 $ 2,696 $ — Tenant recovery income 3,094 865 2,030 199 — Other property income 381 123 199 57 2 Total income 27,393 16,282 8,157 2,952 2 Operating expenses 4,525 954 2,740 711 120 Net operating income (loss) $ 22,868 $ 15,328 $ 5,417 $ 2,241 $ (118 ) Non-allocated expenses (a) (12,109 ) Other income and expenses (b) (7,445 ) Net income $ 3,314 Less: net income attributable to non-controlling interests (8 ) Net income attributable to Company $ 3,306 (a) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of loss on sale of investment properties, other loss, interest expense, and income tax expense. The following table summarizes net property operations income by segment for the nine months ended September 30, 2016 . Total Net Lease Retail Multi-Tenant Office Other Rental income $ 62,987 $ 42,791 $ 13,630 $ 6,566 $ — Tenant recovery income 8,352 2,452 5,466 434 — Other property income 449 421 79 (75 ) 24 Total income 71,788 45,664 19,175 6,925 24 Operating expenses 14,273 3,770 7,022 2,732 749 Net operating income (loss) $ 57,515 $ 41,894 $ 12,153 $ 4,193 $ (725 ) Non-allocated expenses (a) (32,003 ) Other income and expenses (b) (20,199 ) Provision for asset impairment (c) (61,582 ) Net loss attributable to the Company $ (56,269 ) Balance Sheet Data Real estate assets, net (d) $ 465,663 $ 185,483 $ 155,063 $ 93,490 $ 31,627 Non-segmented assets (e) 52,349 Total assets 518,012 Capital expenditures $ 548 $ — $ 422 $ 126 $ — (a) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of other loss, interest expense, and income tax expense. (c) Provision for asset impairment includes $61,582 related to three net lease assets. (d) Real estate assets include intangible assets, net of amortization. (e) Non-segmented assets include cash and cash equivalents, restricted cash and escrows, accounts and rents receivable and deferred costs and other assets. The following table summarizes net property operations income by segment for the nine months ended September 30, 2015 . Total Net Lease Retail Multi-Tenant Office Other Rental income $ 72,126 $ 46,051 $ 18,247 $ 7,828 $ — Tenant recovery income 10,939 2,754 7,599 586 — Other property income 747 415 229 89 14 Total income 83,812 49,220 26,075 8,503 14 Operating expenses 15,884 3,688 9,523 2,326 347 Net operating income (loss) $ 67,928 $ 45,532 $ 16,552 $ 6,177 $ (333 ) Non-allocated expenses (a) (36,473 ) Other income and expenses (b) (21,293 ) Net income $ 10,162 Less: net income attributable to non-controlling interests (16 ) Net income attributable to Company $ 10,146 (a) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of loss on sale of investment properties, other income, interest expense and income tax expense.

Net (Loss) Income per Share (Ta

Net (Loss) Income per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Reconciliation of Net (Loss) Income to Basic and Diluted EPS	The following table reconciles net (loss) income attributable to the Company to basic and diluted EPS (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator: Net (loss) income $ (21,340 ) $ 3,314 $ (56,269 ) $ 10,162 Less: Net income attributable to non-controlling interests — (8 ) — (16 ) Net (loss) income attributable to Company $ (21,340 ) $ 3,306 $ (56,269 ) $ 10,146 Denominator: Weighted average shares outstanding - basic and diluted 864,890,967 862,014,421 864,515,587 862,014,421 Basic and diluted (loss) income per share: Net (loss) income per common share $ (0.02 ) $ 0.00 $ (0.07 ) $ 0.01

Share Based Compensation (Table

Share Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2016
Share-based Compensation [Abstract]
Summary of Stock Award Activity	A summary of the Company's stock awards activity as of September 30, 2016 is as follows: Non-Vested stock awards Stock Awards (#) Weighted Average Grant Date Fair Value Balance at January 1, 2016 — — Granted 8,055,556 $ 0.36 Vested (5,138,889 ) 0.36 Forfeited — — Balance at September 30, 2016 2,916,667 $ —

Organization (Details)

Organization (Details) $ / shares in Units, $ in Thousands	Apr. 28, 2016$ / sharesshares	Sep. 30, 2016USD ($)parcelproperty$ / shares	Sep. 30, 2015USD ($)	Dec. 31, 2015parcelproperty$ / shares
Conversion of Stock [Line Items]
Common stock, par value (in dollars per share) | $ / shares	$ 0.01	$ 0.01		$ 0
Reduction in Basis of Real Estate Investment Properties | $		$ 76,583	$ 0
Number of assets (in property) | property		18		22
Parcels of land | parcel		4		4
Common stock
Conversion of Stock [Line Items]
Shares issued for each share held at date of spin-off (in shares) | shares	1

Summary of Significant Accoun29

Summary of Significant Accounting Policies (Details) - Adjustments for Adoption of ASU $ in Thousands	Dec. 31, 2015USD ($)
Long-term debt
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs	$ 1,938
Other assets
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs	$ (1,938)

Disposed Assets (Details)

Disposed Assets (Details) $ in Thousands	Feb. 19, 2016property	Jul. 09, 2015USD ($)ft²property	Jan. 28, 2015property
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of retail assets distributed (in property)	4		3
Citizens Manchester [Member] | Net Lease
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of retail assets distributed (in property)		1
Disposal Group, Including Discontinued Operation, Consideration | $		$ 8,200
Area of Real Estate Property | ft²		148,000

Transactions with Related Par31

Transactions with Related Parties (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Unsecured credit facility					$ 17,914,000
InvenTrust
Related Party Transaction [Line Items]
General and administrative expense allocation	$ 0	$ 2,913,000	$ 3,324,000	$ 8,689,000
Notes payable	0		0		$ 15,062,000
Related Party Transaction, Expenses from Transactions with Related Party	$ 33,000	$ 0	84,000
Maximum | InvenTrust
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party			$ 100,000

Debt - Scheduled Maturities (De

Debt - Scheduled Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Total	$ 389,955	$ 437,032
Mortgages
Debt Instrument [Line Items]
2,016	202,790
2,017	30,275
2,018	0
2,019	0
2,020	0
Thereafter	158,737
Total	$ 391,802	$ 405,994
Weighted average interest rate
2,016	6.51%
2,017	5.57%
2,018	0.00%
2,019	0.00%
2,020	0.00%
Thereafter	5.57%
Total	6.05%	6.09%

Debt - Narrative (Details)

Debt - Narrative (Details)	Nov. 05, 2015USD ($)tranche	Feb. 03, 2015USD ($)	May 01, 2014USD ($)	Sep. 30, 2016USD ($)loan	Mar. 25, 2016USD ($)	Feb. 19, 2016property	Dec. 31, 2015USD ($)	Jan. 28, 2015USD ($)property
Debt Instrument [Line Items]
Debt, net				$ 389,955,000			$ 437,032,000
Unsecured credit facility							17,914,000
InvenTrust
Debt Instrument [Line Items]
Notes payable				0			15,062,000
Revolving line of credit
Debt Instrument [Line Items]
Unsecured credit facility				$ 0
InvenTrust
Debt Instrument [Line Items]
Credit facility	$ 300,000,000
Credit facility, number of tranches (in tranche) | tranche	2
InvenTrust | Revolving line of credit
Debt Instrument [Line Items]
Credit facility		$ 300,000,000
InvenTrust | LIBOR | Revolving line of credit
Debt Instrument [Line Items]
Variable rate		1.40%
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff
Debt Instrument [Line Items]
Number of retail assets distributed (in property) | property						4		3
Number of retail assets encumbered by a mortgage (in property) | property								2
Mortgage payables distributed at carrying value								$ 19,893,000
MaturityDateofCurrentYear
Debt Instrument [Line Items]
Number of mortgages maturing (in loans) | loan				4
Maturity date of December 2016
Debt Instrument [Line Items]
Number of mortgages maturing (in loans) | loan				2
Maturity dates of January 15, 2021, and November 5, 2022
Debt Instrument [Line Items]
Unsecured credit facility				$ 0			$ 17,914,000
Interest rate at period end							1.59%
Maturity date of January 15, 2021 | InvenTrust
Debt Instrument [Line Items]
Debt Instrument, Term	5 years
Maturity date of January 15, 2021 | InvenTrust | LIBOR
Debt Instrument [Line Items]
Variable rate	1.30%
Maturity date of November 5, 2022 | InvenTrust
Debt Instrument [Line Items]
Debt Instrument, Term	7 years
Maturity date of November 5, 2022 | InvenTrust | LIBOR
Debt Instrument [Line Items]
Variable rate	1.60%
Mortgages
Debt Instrument [Line Items]
Debt, net				$ 391,802,000			$ 405,994,000
Weighted average interest rate				6.05%			6.09%
Deferred financing costs, net				$ 1,847,000			$ 1,938,000
Notes payable | InvenTrust
Debt Instrument [Line Items]
Debt, net					$ 15,062,000
Debt Instrument, Face Amount			$ 32,908,000
Interest rate			8.50%
Accrued interest					$ 89,000

Fair Value Measurements - Non-R

Fair Value Measurements - Non-Recurring Measurements (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2016USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Provision for impairment		$ 61,582
Term of discounted cash flow model		10 years
Net Lease
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Provision for impairment	$ 61,319
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Capitalization rate		7.50%
Discount rate		7.50%
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate		9.50%
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment properties	69,654	$ 69,654
Fair Value, Measurements, Nonrecurring | Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment properties	$ 69,654	$ 69,654

Fair Value Measurements - Not M

Fair Value Measurements - Not Measured at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgages payable	$ 391,802	$ 405,994
Unsecured credit facility	0	17,914
Carrying Value | InvenTrust
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Note payable	0	15,062
Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgages payable	396,905	410,888
Unsecured credit facility	0	17,914
Estimated Fair Value | InvenTrust
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Note payable	$ 0	$ 15,062

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016USD ($)leased_asset	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)leased_asset	Sep. 30, 2015USD ($)	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Provision for asset impairment | $	$ 18,967	$ 0	$ 61,582	$ 0
Long-term debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Discount rate			4.68%		4.52%
Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Discount rate			7.50%
Minimum | Long-term debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Discount rate			4.10%		3.99%
Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Discount rate			9.50%
Maximum | Long-term debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Discount rate			5.58%		4.99%
Fair Value, Measurements, Nonrecurring | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Net Lease
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Number of leased assets | leased_asset	1		3

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income tax expense	$ 2	$ 9	$ 239	$ 24

Segment Reporting - Narrative (

Segment Reporting - Narrative (Details)	9 Months Ended
	Sep. 30, 2016segmentleased_asset
Concentration Risk [Line Items]
Number of business segments (in segments) | segment	3
Revenue | Customer concentration risk | AT&T, Inc.
Concentration Risk [Line Items]
Concentration risk of revenues	45.00%
Number of Leased Assets, as Lessor | leased_asset	3
Revenue | Customer concentration risk | AT&T- Hoffman Estates [Member]
Concentration Risk [Line Items]
Concentration risk of revenues	21.00%
Revenue | Customer concentration risk | AT&T- St. Louis [Member]
Concentration Risk [Line Items]
Concentration risk of revenues	17.00%

Segment Reporting - Net Propert

Segment Reporting - Net Property Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Segment Reporting Information [Line Items]
Rental income	$ 17,272	$ 23,918	$ 62,987	$ 72,126
Tenant recovery income	2,917	3,094	8,352	10,939
Other property income	168	381	449	747
Total revenues	20,357	27,393	71,788	83,812
Operating expenses	5,909	4,525	14,273	15,884
Net operating income (loss)	14,448	22,868	57,515	67,928
Asset Impairment Charges	(18,967)	0	(61,582)	0
Net (loss) income	(21,340)	3,314	(56,269)	10,162
Less: Net income attributable to non-controlling interests	0	(8)	0	(16)
Balance Sheet Data
Total assets	518,012		518,012		$ 739,154
Capital expenditures			548	1,985
Net (loss) income attributable to Company	(21,340)	3,306	(56,269)	10,146
Operating segments | Net Lease
Segment Reporting Information [Line Items]
Rental income	12,299	15,294	42,791	46,051
Tenant recovery income	904	865	2,452	2,754
Other property income	143	123	421	415
Total revenues	13,346	16,282	45,664	49,220
Operating expenses	1,831	954	3,770	3,688
Net operating income (loss)	11,515	15,328	41,894	45,532
Balance Sheet Data
Total assets	185,483		185,483
Capital expenditures			0
Operating segments | Retail
Segment Reporting Information [Line Items]
Rental income	4,211	5,928	13,630	18,247
Tenant recovery income	1,936	2,030	5,466	7,599
Other property income	18	199	79	229
Total revenues	6,165	8,157	19,175	26,075
Operating expenses	2,597	2,740	7,022	9,523
Net operating income (loss)	3,568	5,417	12,153	16,552
Balance Sheet Data
Total assets	155,063		155,063
Capital expenditures			422
Operating segments | Multi-Tenant Office
Segment Reporting Information [Line Items]
Rental income	762	2,696	6,566	7,828
Tenant recovery income	77	199	434	586
Other property income	1	57	(75)	89
Total revenues	840	2,952	6,925	8,503
Operating expenses	1,078	711	2,732	2,326
Net operating income (loss)	(238)	2,241	4,193	6,177
Balance Sheet Data
Total assets	93,490		93,490
Capital expenditures			126
Other
Segment Reporting Information [Line Items]
Rental income	0	0	0	0
Tenant recovery income	0	0	0	0
Other property income	6	2	24	14
Total revenues	6	2	24	14
Operating expenses	403	120	749	347
Net operating income (loss)	(397)	(118)	(725)	(333)
Balance Sheet Data
Total assets	31,627		31,627
Reconciling items
Segment Reporting Information [Line Items]
Non-allocated expenses	(9,676)	(12,109)	(32,003)	(36,473)
Other income and expenses	(7,145)	$ (7,445)	(20,199)	$ (21,293)
Balance Sheet Data
Total assets	52,349		52,349
Operating segments and corporate, non-segment
Balance Sheet Data
Total assets	$ 465,663		$ 465,663

Net (Loss) Income per Share (De

Net (Loss) Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Numerator:
Net (loss) income	$ (21,340)	$ 3,314	$ (56,269)	$ 10,162
Less: Net income attributable to non-controlling interests	0	8	0	16
Net (loss) income attributable to Company	$ (21,340)	$ 3,306	$ (56,269)	$ 10,146
Denominator:
Weighted average shares outstanding - Basic and Diluted (in shares)	864,890,967	862,014,421	864,515,587	862,014,421
Basic and diluted (loss) income per share:
Net (loss) income per share (in dollars per share)	$ (0.02)	$ 0	$ (0.07)	$ 0.01

Share Based Compensation (Detai

Share Based Compensation (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Apr. 28, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 469,000	$ 0	$ 2,319,000	$ 0
Compensation expense related to nonvested awards not yet recognized	581,000		581,000
Payments Related to Tax Withholding for Share-based Compensation			814,000	$ 0
Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested	$ 1,100,000		$ 1,100,000
Incentive awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (in shares)					43,000,000
Shares available for future issuance (in shares)	34,944,444		34,944,444
Stock Awards
Beginning balance (in shares)			0
Granted (in shares)			8,055,556
Vested (in shares)			(5,138,889)
Forfeited (in shares)			0
Ending balance (in shares)	2,916,667		2,916,667
Weighted Average Grant Date Fair Value
Beginning Balance (in dollars per share)			$ 0
Granted (in dollars per share)			0.36
Vested (in dollars per share)			0.36
Forfeited (in dollars per share)			0
Ending Balance (in dollars per share)	$ 0		$ 0

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ in Thousands	Nov. 04, 2016	Nov. 03, 2016	Sep. 30, 2016
Subsequent Event [Line Items]
Notes and Loans Payable			$ 113,810
Mortgages | Subsequent Event [Member]
Subsequent Event [Line Items]
Debt Instrument, Face Amount	$ 10,500
Debt Instrument, Term	30 years
Debt Instrument, Interest Rate, Stated Percentage	4.345%	5.99%
Notes and Loans Payable		$ 9,071