Highlands REIT (HHDS) 10-Q 11 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 01, 2017
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	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		868,423,581
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

Condensed Combined Consolidated

Condensed Combined Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Investment properties
Land	$ 99,170	$ 121,027
Building and other improvements	313,380	394,022
Construction in progress	1,682	530
Total	414,232	515,579
Less accumulated depreciation	(88,435)	(84,651)
Net investment properties	325,797	430,928
Cash and cash equivalents	29,862	57,129
Restricted cash and escrows	5,235	7,034
Accounts and rents receivable (net of allowance of $613 and $478)	5,971	9,997
Intangible assets, net	563	3,253
Deferred costs and other assets	3,935	4,213
Total assets	371,363	512,554
Liabilities
Debt, net	163,492	380,240
Accounts payable and accrued expenses	10,213	42,899
Intangible liabilities, net	3,622	3,831
Other liabilities	1,372	2,303
Total liabilities	178,699	429,274
Commitments and contingencies (Note 11)
Stockholder’s Equity
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 868,423,581 shares issued and outstanding as of June 30, 2017 and 864,890,967 shares issued and outstanding as of December 31, 2016	8,684	8,649
Additional paid in capital	1,406,460	1,405,677
Accumulated distributions in excess of net income	(1,222,480)	(1,331,046)
Total stockholder’s equity	192,664	83,280
Total liabilities and stockholder’s equity	$ 371,363	$ 512,554

Condensed Combined Consolidate3

Condensed Combined Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for accounts and rent receivables	$ 613	$ 478
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, Shares Authorized	1,000,000,000	1,000,000,000
Common Stock, Shares Issued	868,423,581	864,890,967
Common Stock, Shares Outstanding	868,423,581	864,890,967

Condensed Combined Consolidate4

Condensed Combined Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues
Rental income	$ 12,596	$ 22,290	$ 27,359	$ 45,716
Tenant recovery income	2,084	2,485	3,667	5,436
Other property income	204	60	693	281
Total revenues	14,884	24,835	31,719	51,433
Expenses
Property operating expenses	2,801	1,897	5,987	4,101
Real estate taxes	1,094	1,837	4,555	4,262
Depreciation and amortization	4,876	7,012	10,500	15,246
General and administrative expenses	2,596	4,205	6,674	7,082
Provision for asset impairment	712	42,615	712	42,615
Total expenses	12,079	57,566	28,428	73,306
Operating income (loss)	2,805	(32,731)	3,291	(21,873)
Interest income	16	0	56	0
Loss on disposition of investment properties	0	0	(3)	0
Gain on extinguishment of debt	116,900	0	116,900	0
Other income (loss)	3	(111)	3	(113)
Interest expense	(4,324)	(6,159)	(11,688)	(12,704)
Income (loss) before income taxes	115,400	(39,001)	108,559	(34,690)
Income tax benefit (expense)	9	(234)	7	(238)
Net income (loss)	$ 115,409	$ (39,235)	$ 108,566	$ (34,928)
Net income (loss) per common share, basic and diluted (in dollars per share)	$ 0.13	$ (0.05)	$ 0.13	$ (0.04)
Weighted average number of common shares outstanding, basic and diluted (in shares)	868,272,875	863,975,978	866,939,369	863,975,978

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
Beginning balance at Dec. 31, 2015	$ 266,853	$ 0	$ 1,534,018	$ (1,267,165)
Beginning balance (in shares) at Dec. 31, 2015		0
Net income (loss)	(34,928)			(34,928)
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 (in shares)		862,205,672
Repurchase of common shares, net	(69)	$ (2)	(67)
Repurchase of common shares, net (in shares)		(191,251)
Share-based compensation	1,036	$ 29	1,007
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 Jun. 30, 2016	111,814	$ 8,649	1,405,258	(1,302,093)
Ending balance (in shares) at Jun. 30, 2016		864,890,967
Beginning balance at Dec. 31, 2016	$ 83,280	$ 8,649	1,405,677	(1,331,046)
Beginning balance (in shares) at Dec. 31, 2016	864,890,967	864,890,967
Net income (loss)	$ 108,566			108,566
Share-based compensation	818	$ 35	783
Share-based compensation (in shares)		3,532,614
Ending balance at Jun. 30, 2017	$ 192,664	$ 8,684	$ 1,406,460	$ (1,222,480)
Ending balance (in shares) at Jun. 30, 2017	868,423,581	868,423,581

Condensed Combined Consolidate6

Condensed Combined Consolidated Statements of Cash Flow - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income (loss)	$ 108,566	$ (34,928)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	10,516	15,261
Amortization of above and below market leases, net	(209)	(625)
Amortization of debt discounts and financing costs	67	108
Straight-line rental income	88	1,437
Gain on extinguishment of debt	(116,900)	0
Loss on sale of investment properties, net	(3)	0
Provision for asset impairment	712	42,615
Write off of bad debts	220	0
Non-cash stock-based compensation expense	1,438	1,850
Changes in assets and liabilities:
Restricted escrows	(4,406)	(240)
Accounts and rents receivable	41	(1,531)
Deferred costs and other assets	(2,038)	(3,233)
Accounts payable and accrued expenses	9,070	933
Other liabilities	(932)	(488)
Net cash flows provided by operating activities	6,236	21,159
Cash flows from investing activities:
Capital expenditures and tenant improvements	(480)	(422)
Investment in development	(796)	0
Payment of leasing fees	(187)	(437)
Restricted escrows and other assets	(130)	0
Net cash flows used in investing activities	(1,593)	(859)
Cash flows from financing activities:
Restricted escrows	4,290	0
Distributions to InvenTrust	0	(63,206)
Contributions from InvenTrust	0	67,444
Payoff of mortgage and note payable	(30,273)	(15,062)
Principal payments of mortgage debt	(4,933)	(11,063)
Repurchase of common shares	0	(69)
Payment for tax withholding for share-based compensation	(994)	(814)
Net cash flows used in financing activities	(31,910)	(22,770)
Net decrease in cash and cash equivalents	(27,267)	(2,470)
Cash and cash equivalents, at beginning of period	57,129	26,972
Cash and cash equivalents, at end of period	29,862	24,502
Supplemental disclosure of cash flow information:
Cash paid for interest	4,715	10,596
Supplemental schedule of non-cash investing and financing activities:
Mortgage loans payable and related obligations settled	215,098	0
Real estate transferred	(98,229)	0
Change in allocation of InvenTrust unsecured credit facility	0	(17,914)
Distribution of assets and liabilities of zero and four assets, respectively, to InvenTrust, net	0	66,647
Reduction in carryover basis in connection with separation from InvenTrust	$ 0	$ 76,583

Condensed Combined Consolidate7

Condensed Combined Consolidated Statements of Cash Flow - Parenthetical - property	Jun. 30, 2017	Jun. 30, 2016	Feb. 19, 2016
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff
Number of retail assets distributed (in property)	0	4	4

Organization

Organization	6 Months Ended
	Jun. 30, 2017
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.). 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. 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 at the time of the Distribution. 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 June 30, 2017 , the Company owned 15 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 six months ended June 30, 2017 . As of December 31, 2016 , the Company owned 17 assets and four parcels of land, for which the operating activity is reflected in the condensed combined consolidated statements of operations for the three and six months ended June 30, 2016 .

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
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 GAAP and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities with 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, 2016 included in the Company’s Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission on March 27, 2017 (the “Annual Report”), 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 combined 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. 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. Recently Issued Accounting Pronouncements In May 2014 , the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers . The core objective of ASU No. 2014-09 is for an entity to recognize revenue based on the consideration it expects to receive in exchange for goods or services. Additionally, this ASU requires entities to use a single model in accounting for revenues derived from contracts with customers. ASU No. 2014-09 replaces prior guidance regarding the recognition of revenue from sales of real estate, except for revenue from sales that are part of a sale-leaseback transaction. The provisions of ASU No. 2014-09, as amended in subsequently issued amendments, are effective for us on January 1, 2018, and are required to be applied either on a retrospective or a modified retrospective approach. The Company has formed a project team to evaluate and work to implement the standard. In identifying all of our revenue streams, the majority of our revenues result from leasing transactions which are not within the scope of the new standard and will be governed by the recently issued leasing guidance (see ASU No. 2016-02 below). The Company does not believe the new revenue guidance will have a material impact on its recognition and disclosure of revenue. The Company currently expects to adopt the standard in the first quarter of 2018 using the modified retrospective approach. 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 Company intends to adopt the new standard on its effective date. The Company is currently evaluating the effect of ASU 2016-02 on its combined consolidated financial statements and believes substantially all of our leases will continue to be classified as operating leases under the new standard. Subsequent to our adoption of the new standard, common area maintenance provided in our real estate contracts will be accounted for as a non-lease component within the scope of the new revenue standard. As a result, we will be required to recognize revenues associated with our real estate leases separately from revenues associated with common area maintenance. We are continuing to evaluate whether the variable payment provisions of the new lease standard or the allocation and recognition provisions of the new revenue standard will affect the timing of recognition of for our lease and non-lease revenue. In addition, due to the new standard’s narrowed definition of initial direct costs , we expect to expense as incurred significant lease origination costs currently capitalized as initial direct costs and amortized to expense over the lease term. 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 do not expect that the adoption of this ASU will have a material impact on our combined consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Classification and Presentation of Restricted Cash in the Statement of Cash Flows . ASU 2016-18 requires an explanation in the cash flow statement of a change in the total of (1) total cash, (2) cash equivalents, and (3) restricted cash or restricted cash equivalents. The ASU is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We do not expect that the adoption of this ASU will have a material impact on our combined consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718), Scope of Modification Accounting . ASU 2017-09 clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The guidance is effective prospectively for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. We do not expect the adoption of ASU 2017-09 will have a material impact on our financial statements. Recently Adopted Accounting Pronouncements 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 on April 1, 2016.

Disposed Assets

Disposed Assets	6 Months Ended
	Jun. 30, 2017
Discontinued Operations and Disposal Groups [Abstract]
Disposed Assets	Disposed 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 six months ended June 30, 2016 . On April 10, 2017, the Company conveyed its Dulles Executive Plaza asset to its lenders via a deed of assumption and the non-recourse Commercial Mortgage-Backed Security (“CMBS”) debt was fully extinguished. Upon conveyance of the property, the Company was fully released from its nonrecourse indebtedness, had no further continuing obligations to the lender, and conveyed the usual risks and rewards of ownership. The Company recognized a gain upon debt extinguishment in the amount of $4.3 million for the three and six months ended June 30, 2017 . On April 20, 2017, the AT&T-Hoffman Estates asset was sold via sheriff's sale as part of the foreclosure process, which was approved by the court on May 18, 2017. The court appointed receiver was discharged on July 6, 2017. As a result of the foreclosure sale, the Company satisfied its nonrecourse indebtedness, had no further continuing obligations to the lender, and conveyed the usual risks and rewards of ownership. The Company recognized a gain on the extinguishment of debt in the amount of $112.6 million for the three and six months ended June 30, 2017 . There were no assets that qualified as discontinued operations during the six months ended June 30, 2017 and 2016 .

Transactions with Related Parti

Transactions with Related Parties	6 Months Ended
	Jun. 30, 2017
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 six months ended June 30, 2017 and 2016 . Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 General and administrative expense allocation (a) $ — $ 576 $ — $ 3,324 Transition services fees (b) $ — $ 51 $ — $ 51 (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 by InvenTrust. (b) In connection with the Distribution, the Company entered into the Transition Services Agreement with InvenTrust, under which InvenTrust agreed to provide certain transition services to the Company, including services related to information technology systems, financial reporting and accounting and legal services. There was a flat monthly fee per service and all services provided in the agreement terminated by December 31, 2016.

Debt

Debt	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Debt	Debt Mortgages Payable Mortgage loans outstanding as of June 30, 2017 and December 31, 2016 were $164,310 and $381,981 , respectively, and had a weighted average interest rate of 5.20% and 8.27% per annum, respectively. Deferred financing costs, net, as of June 30, 2017 and December 31, 2016 were $818 and $1,741 , respectively. As of June 30, 2017 , scheduled maturities for the Company’s outstanding mortgage indebtedness had various due dates through December 2026, as follows: For the year ended December 31, As of June 30, 2017 Weighted average interest rate 2017 $ 108,083 5.34 % 2018 — — % 2019 — — % 2020 — — % 2021 20,084 5.25 % Thereafter 36,143 5.20 % Total $ 164,310 5.20 % 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 June 30, 2017 and December 31, 2016 , 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 June 30, 2017 and December 31, 2016 , other than otherwise disclosed in this Note 5, the Company is in compliance with such covenants in all material respects. With respect to the Company’s former Dulles Executive Plaza asset, on August 23, 2016, we received notice from the special servicer that the loan went into default. On April 10, 2017 , the Company conveyed this asset to its lenders via a deed of assumption and the $68,750 nonrecourse debt was fully extinguished. The Company recognized a gain upon debt extinguishment of $4,300 in connection with this transaction. The property is no longer owned by Highlands. Prior to the conveyance, the lender had triggered full cash management whereby neither the property owner nor the property manager collected any rents or other revenues, but only administered payment of operating expenses. On August 19, 2016, C-III Asset Management LLC filed a foreclosure complaint in respect of the AT&T-Hoffman Estates asset 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. On April 20, 2017, the AT&T-Hoffman Estates asset was sold via sheriff's sale as part of the foreclosure process, which sale was approved by the court on May 18, 2017. The court appointed receiver was discharged on July 6, 2017. As a result of the foreclosure sale, the Company satisfied its mortgage obligations for AT&T-Hoffman Estates and recognized a gain on the extinguishment of debt of $112,600 in connection with this transaction. The mortgage debt on Sherman Plaza was paid off on February 1, 2017 . Prior to the payoff, all rental payments were being “swept” and held by the lender; however, the lender remitted excess cash to the Company for its general use after the debt service payment had been paid. The amount maturing in 2017 represents the mortgage loan related to our AT&T-St. Louis asset which entered into default during 2016. On October 1, 2016 , the 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 March 15, 2017 , the Company received notice that the loan in respect of the AT&T-St. Louis asset had been transferred to special servicing. The Company intends to satisfy its mortgage obligations by permitting the lender to foreclose on the property. On June 23, 2017, the Company entered into an agreement with its lender, which allows the lender to accelerate the maturity of the mortgage, appoint a receiver to assume control of the property and proceed with the foreclosure of the property. On August 1, 2017, we received notice that our lenders set a schedule to complete the disposition and sale of the asset by August 22, 2017, however the Company cannot guarantee the specific date upon which the entire foreclosure process will be completed. Note Payable On May 1, 2014, a subsidiary of 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.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2017
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 six months ended June 30, 2017 , the Company identified certain assets which may have a reduction in the expected holding period, which represented an impairment trigger, and recorded an impairment of investment properties of $712 on one of the land parcels and one of the multi-tenant office assets. The following table presents these assets measured at fair value on a nonrecurring basis as of June 30, 2017 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 Investment properties $ — $ — $ 8,750 (a) $ 8,750 $ 712 (a) The estimate of fair value of the land parcel and retail asset was based on recent negotiations for the sale of these assets to third parties. During the three and six months ended June 30, 2016 , the Company recognized a $42,615 provision for asset impairment on two net lease assets. Fair Value Level 1 Level 2 Level 3 Total Provision for impairment Investment properties $ — $ — $ 37,703 (a) $ 37,703 $ 42,615 (a) Represents the fair values of two net lease assets. The estimated fair value relating to the investment properties’ impairment analysis was based on ten-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. 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 June 30, 2017 . June 30, 2017 Carrying Value Estimated Fair Value Mortgages payable $ 164,310 $ 89,555 The Company typically estimates the fair value of its debt instruments using a weighted average market effective interest rate of 4.43% per annum as of June 30, 2017 . 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 5.24% as of June 30, 2017 . For certain debt, the Company estimates the fair value of debt instruments based on the fair value of the underlying collateral. 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	6 Months Ended
	Jun. 30, 2017
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 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. During the three months ended June 30, 2017 and 2016 , an income tax benefit of $9 and expense of $234 , respectively, was included in the condensed combined consolidated statements of operations. During the six months ended June 30, 2017 and 2016 , an income tax benefit of $7 and expense of $238 , respectively, was included in the condensed combined consolidated statements of operations.

Segment Reporting

Segment Reporting	6 Months Ended
	Jun. 30, 2017
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 below in Other. Approximately 25.6% of the Company’s revenue from continuing operations for the six months ended June 30, 2017 was generated by the Company’s AT&T-St. Louis net lease asset. The term of the lease on the AT&T-St. Louis asset is scheduled to expire on September 30, 2017 and the Company does not expect the tenant to renew the lease. The following table summarizes net property operations income by segment for the three months ended June 30, 2017 . Total Net Lease Retail Multi-Tenant Office Other Rental income $ 12,596 $ 7,181 $ 4,052 $ 1,363 $ — Tenant recovery income 2,084 105 1,970 9 — Other property income 204 51 12 127 14 Total income 14,884 7,337 6,034 1,499 14 Operating expenses 3,895 524 2,160 938 273 Net operating income (loss) $ 10,989 $ 6,813 $ 3,874 $ 561 $ (259 ) Non-allocated expenses (a) (7,472 ) Other income and expenses (b) (4,296 ) Provision for asset impairment (c) (712 ) Loss on sale of investment properties — Gain on extinguishment of debt (d) 116,900 Net income $ 115,409 (a) Non-allocated expenses consist of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consist of other income, interest income, interest expense, loss on sale of investment properties, and income tax expense. (c) Provision for asset impairment is for one other related asset and one multi-tenant office asset. (d) Gain on extinguishment of debt is related to one net lease and one multi-tenant office asset. Refer to Notes 3 and 5 for additional information. The following table summarizes net property operations income by segment for the three months ended June 30, 2016 . Total Net Lease Retail Multi-Tenant Office Other Rental income $ 22,290 $ 14,586 $ 4,220 $ 3,484 $ — Tenant recovery income 2,485 688 1,688 109 — Other property income 60 143 (8 ) (87 ) 12 Total income 24,835 15,417 5,900 3,506 12 Operating expenses 3,734 894 1,812 821 207 Net operating income (loss) $ 21,101 $ 14,523 $ 4,088 $ 2,685 $ (195 ) Non-allocated expenses (a) (11,217 ) Other income and expenses (b) (6,504 ) Provision for asset impairment (c) (42,615 ) Net loss $ (39,235 ) (a) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of other income, interest income, interest expense, loss on sale of investment properties, and income tax expense. (c) Provision for asset impairment is related to two net lease assets. The following table summarizes net property operations income by segment for the six months ended June 30, 2017 . Total Net Lease Retail Multi-Tenant Office Other Rental income $ 27,359 $ 14,744 $ 8,172 $ 4,443 $ — Tenant recovery income 3,667 193 3,486 (56 ) 44 Other property income 693 60 407 208 18 Total income 31,719 14,997 12,065 4,595 62 Operating expenses 10,542 3,089 4,382 2,338 733 Net operating income (loss) $ 21,177 $ 11,908 $ 7,683 $ 2,257 $ (671 ) Non-allocated expenses (a) (17,174 ) Other income and expenses (b) (11,622 ) Provision for asset impairment (c) (712 ) Loss on sale of investment properties (3 ) Gain on extinguishment of debt (d) 116,900 Net income $ 108,566 Balance Sheet Data Real estate assets, net (e) $ 326,880 $ 94,643 $ 150,315 $ 50,436 $ 31,486 Non-segmented assets (f) 44,483 Total assets 371,363 Capital expenditures $ 1,225 $ — $ 150 $ 1,028 $ 47 (a) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of other income, interest income, interest expense, loss on sale of investment properties, and income tax expense. (c) Provision for asset impairment is for one other related asset and one multi-tenant office asset. (d) Gain on extinguishment of debt is related to one net lease and one multi-tenant office related assets. Refer to Notes 3 and 5 for additional information. (e) Real estate assets include intangible assets, net of amortization. (f) 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 six months ended June 30, 2016 . Total Net Lease Retail Multi-Tenant Office Other Rental income $ 45,716 $ 29,208 $ 9,419 $ 7,089 $ — Tenant recovery income 5,436 1,537 3,530 369 — Other property income 281 277 61 (76 ) 19 Total income 51,433 31,022 13,010 7,382 19 Operating expenses 8,363 1,865 4,424 1,728 346 Net operating income (loss) $ 43,070 $ 29,157 $ 8,586 $ 5,654 $ (327 ) Non-allocated expenses (a) (22,328 ) Other income and expenses (b) (13,055 ) Provision for asset impairment (c) (42,615 ) Net loss from continuing operations $ (34,928 ) Balance Sheet Data Real estate assets, net (d) $ 490,357 $ 215,763 $ 156,966 $ 86,002 $ 31,626 Non-segmented assets (e) 46,982 Total assets 537,339 Capital expenditures $ 422 $ — $ 422 $ — $ — (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. (c) Provision for asset impairment is related to two 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.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2017
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. The following table reconciles net income (loss) to basic and diluted EPS (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Numerator: Net income (loss) $ 115,409 $ (39,235 ) $ 108,566 $ (34,928 ) Denominator: Weighted average shares outstanding - basic and diluted 868,272,875 863,975,978 866,939,369 863,975,978 Basic and diluted (loss) income per share: Net income (loss) per common share $ 0.13 $ (0.05 ) $ 0.13 $ (0.04 )

Share Based Compensation

Share Based Compensation	6 Months Ended
	Jun. 30, 2017
Share-based Compensation [Abstract]
Share Based Compensation	Share Based Compensation Incentive Award Plan During the six months ended June 30, 2017 , the Company granted 3,454,761 fully vested shares of common stock with an aggregate value of $1,209 based on a estimated fair value per share of $0.35 . Under the guidance of ASC 718, 1,940,476 shares of common stock awards granted were treated as a modification of the terms of the original awards for two of the Company’s executive officers, resulting in an increase in compensation expense of $650 at the modification date. Under the Highlands REIT, Inc. 2016 Incentive Award Plan (“the Incentive Award Plan”), the Company is authorized to grant up to 43,000,000 shares of common stock pursuant to awards under the plan. At June 30, 2017 , 31,489,683 shares were available for future issuance under the Incentive Award Plan. A summary of the Company’s stock awards activity for the six months ended June 30, 2017 , is as follows: Non-Vested stock awards Stock Awards (#) Weighted Average Grant Date Fair Value Balance at January 1, 2017 2,916,667 0.36 Granted 3,454,761 0.35 Vested (6,371,428 ) 0.35 Forfeited — — Balance at June 30, 2017 — $ — For the three and six months ended June 30, 2017 , the Company recognized stock-based compensation expense of $100 and $1,438 , respectively, related to the Incentive Award Plan. For the three and six months ended June 30, 2017 , the Company paid $994 related to tax withholding for share-based compensation. For the three and six months ended and June 30, 2016 , the Company recognized stock-based compensation expense of $1,850 , related to the Incentive Award Plan. For the three and six months ended June 30, 2016 , the Company paid $814 related to tax withholding for share-based compensation.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
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 failure by InvenTrust or MB REIT (Florida), Inc., a subsidiary of Highlands, to qualify as a REIT for any taxable year ending on or before December 31, 2016.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	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 combined 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.
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.
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 . The core objective of ASU No. 2014-09 is for an entity to recognize revenue based on the consideration it expects to receive in exchange for goods or services. Additionally, this ASU requires entities to use a single model in accounting for revenues derived from contracts with customers. ASU No. 2014-09 replaces prior guidance regarding the recognition of revenue from sales of real estate, except for revenue from sales that are part of a sale-leaseback transaction. The provisions of ASU No. 2014-09, as amended in subsequently issued amendments, are effective for us on January 1, 2018, and are required to be applied either on a retrospective or a modified retrospective approach. The Company has formed a project team to evaluate and work to implement the standard. In identifying all of our revenue streams, the majority of our revenues result from leasing transactions which are not within the scope of the new standard and will be governed by the recently issued leasing guidance (see ASU No. 2016-02 below). The Company does not believe the new revenue guidance will have a material impact on its recognition and disclosure of revenue. The Company currently expects to adopt the standard in the first quarter of 2018 using the modified retrospective approach. 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 Company intends to adopt the new standard on its effective date. The Company is currently evaluating the effect of ASU 2016-02 on its combined consolidated financial statements and believes substantially all of our leases will continue to be classified as operating leases under the new standard. Subsequent to our adoption of the new standard, common area maintenance provided in our real estate contracts will be accounted for as a non-lease component within the scope of the new revenue standard. As a result, we will be required to recognize revenues associated with our real estate leases separately from revenues associated with common area maintenance. We are continuing to evaluate whether the variable payment provisions of the new lease standard or the allocation and recognition provisions of the new revenue standard will affect the timing of recognition of for our lease and non-lease revenue. In addition, due to the new standard’s narrowed definition of initial direct costs , we expect to expense as incurred significant lease origination costs currently capitalized as initial direct costs and amortized to expense over the lease term. 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 do not expect that the adoption of this ASU will have a material impact on our combined consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Classification and Presentation of Restricted Cash in the Statement of Cash Flows . ASU 2016-18 requires an explanation in the cash flow statement of a change in the total of (1) total cash, (2) cash equivalents, and (3) restricted cash or restricted cash equivalents. The ASU is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We do not expect that the adoption of this ASU will have a material impact on our combined consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718), Scope of Modification Accounting . ASU 2017-09 clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The guidance is effective prospectively for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. We do not expect the adoption of ASU 2017-09 will have a material impact on our financial statements. Recently Adopted Accounting Pronouncements 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 on April 1, 2016.

Transactions with Related Par20

Transactions with Related Parties (Tables)	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Summary of Related Party Transactions	The following table summarizes the Company’s related party transactions for the three and six months ended June 30, 2017 and 2016 . Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 General and administrative expense allocation (a) $ — $ 576 $ — $ 3,324 Transition services fees (b) $ — $ 51 $ — $ 51 (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 by InvenTrust. (b) In connection with the Distribution, the Company entered into the Transition Services Agreement with InvenTrust, under which InvenTrust agreed to provide certain transition services to the Company, including services related to information technology systems, financial reporting and accounting and legal services. There was a flat monthly fee per service and all services provided in the agreement terminated by December 31, 2016.

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Scheduled Maturities of Mortgage Indebtedness	As of June 30, 2017 , scheduled maturities for the Company’s outstanding mortgage indebtedness had various due dates through December 2026, as follows: For the year ended December 31, As of June 30, 2017 Weighted average interest rate 2017 $ 108,083 5.34 % 2018 — — % 2019 — — % 2020 — — % 2021 20,084 5.25 % Thereafter 36,143 5.20 % Total $ 164,310 5.20 %

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2017
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 as of June 30, 2017 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 Investment properties $ — $ — $ 8,750 (a) $ 8,750 $ 712 (a) The estimate of fair value of the land parcel and retail asset was based on recent negotiations for the sale of these assets to third parties. During the three and six months ended June 30, 2016 , the Company recognized a $42,615 provision for asset impairment on two net lease assets. Fair Value Level 1 Level 2 Level 3 Total Provision for impairment Investment properties $ — $ — $ 37,703 (a) $ 37,703 $ 42,615 (a) Represents the fair values of two net lease assets. The estimated fair value relating to the investment properties’ impairment analysis was based on ten-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 June 30, 2017 . June 30, 2017 Carrying Value Estimated Fair Value Mortgages payable $ 164,310 $ 89,555

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Summary of Net Property Operations	The following table summarizes net property operations income by segment for the three months ended June 30, 2017 . Total Net Lease Retail Multi-Tenant Office Other Rental income $ 12,596 $ 7,181 $ 4,052 $ 1,363 $ — Tenant recovery income 2,084 105 1,970 9 — Other property income 204 51 12 127 14 Total income 14,884 7,337 6,034 1,499 14 Operating expenses 3,895 524 2,160 938 273 Net operating income (loss) $ 10,989 $ 6,813 $ 3,874 $ 561 $ (259 ) Non-allocated expenses (a) (7,472 ) Other income and expenses (b) (4,296 ) Provision for asset impairment (c) (712 ) Loss on sale of investment properties — Gain on extinguishment of debt (d) 116,900 Net income $ 115,409 (a) Non-allocated expenses consist of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consist of other income, interest income, interest expense, loss on sale of investment properties, and income tax expense. (c) Provision for asset impairment is for one other related asset and one multi-tenant office asset. (d) Gain on extinguishment of debt is related to one net lease and one multi-tenant office asset. Refer to Notes 3 and 5 for additional information. The following table summarizes net property operations income by segment for the three months ended June 30, 2016 . Total Net Lease Retail Multi-Tenant Office Other Rental income $ 22,290 $ 14,586 $ 4,220 $ 3,484 $ — Tenant recovery income 2,485 688 1,688 109 — Other property income 60 143 (8 ) (87 ) 12 Total income 24,835 15,417 5,900 3,506 12 Operating expenses 3,734 894 1,812 821 207 Net operating income (loss) $ 21,101 $ 14,523 $ 4,088 $ 2,685 $ (195 ) Non-allocated expenses (a) (11,217 ) Other income and expenses (b) (6,504 ) Provision for asset impairment (c) (42,615 ) Net loss $ (39,235 ) (a) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of other income, interest income, interest expense, loss on sale of investment properties, and income tax expense. (c) Provision for asset impairment is related to two net lease assets. The following table summarizes net property operations income by segment for the six months ended June 30, 2017 . Total Net Lease Retail Multi-Tenant Office Other Rental income $ 27,359 $ 14,744 $ 8,172 $ 4,443 $ — Tenant recovery income 3,667 193 3,486 (56 ) 44 Other property income 693 60 407 208 18 Total income 31,719 14,997 12,065 4,595 62 Operating expenses 10,542 3,089 4,382 2,338 733 Net operating income (loss) $ 21,177 $ 11,908 $ 7,683 $ 2,257 $ (671 ) Non-allocated expenses (a) (17,174 ) Other income and expenses (b) (11,622 ) Provision for asset impairment (c) (712 ) Loss on sale of investment properties (3 ) Gain on extinguishment of debt (d) 116,900 Net income $ 108,566 Balance Sheet Data Real estate assets, net (e) $ 326,880 $ 94,643 $ 150,315 $ 50,436 $ 31,486 Non-segmented assets (f) 44,483 Total assets 371,363 Capital expenditures $ 1,225 $ — $ 150 $ 1,028 $ 47 (a) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of other income, interest income, interest expense, loss on sale of investment properties, and income tax expense. (c) Provision for asset impairment is for one other related asset and one multi-tenant office asset. (d) Gain on extinguishment of debt is related to one net lease and one multi-tenant office related assets. Refer to Notes 3 and 5 for additional information. (e) Real estate assets include intangible assets, net of amortization. (f) 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 six months ended June 30, 2016 . Total Net Lease Retail Multi-Tenant Office Other Rental income $ 45,716 $ 29,208 $ 9,419 $ 7,089 $ — Tenant recovery income 5,436 1,537 3,530 369 — Other property income 281 277 61 (76 ) 19 Total income 51,433 31,022 13,010 7,382 19 Operating expenses 8,363 1,865 4,424 1,728 346 Net operating income (loss) $ 43,070 $ 29,157 $ 8,586 $ 5,654 $ (327 ) Non-allocated expenses (a) (22,328 ) Other income and expenses (b) (13,055 ) Provision for asset impairment (c) (42,615 ) Net loss from continuing operations $ (34,928 ) Balance Sheet Data Real estate assets, net (d) $ 490,357 $ 215,763 $ 156,966 $ 86,002 $ 31,626 Non-segmented assets (e) 46,982 Total assets 537,339 Capital expenditures $ 422 $ — $ 422 $ — $ — (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. (c) Provision for asset impairment is related to two 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.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Reconciliation of Net (Loss) Income to Basic and Diluted EPS	The following table reconciles net income (loss) to basic and diluted EPS (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Numerator: Net income (loss) $ 115,409 $ (39,235 ) $ 108,566 $ (34,928 ) Denominator: Weighted average shares outstanding - basic and diluted 868,272,875 863,975,978 866,939,369 863,975,978 Basic and diluted (loss) income per share: Net income (loss) per common share $ 0.13 $ (0.05 ) $ 0.13 $ (0.04 )

Share Based Compensation (Table

Share Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2017
Share-based Compensation [Abstract]
Summary of Stock Award Activity	A summary of the Company’s stock awards activity for the six months ended June 30, 2017 , is as follows: Non-Vested stock awards Stock Awards (#) Weighted Average Grant Date Fair Value Balance at January 1, 2017 2,916,667 0.36 Granted 3,454,761 0.35 Vested (6,371,428 ) 0.35 Forfeited — — Balance at June 30, 2017 — $ —

Organization (Details)

Organization (Details) $ / shares in Units, $ in Thousands	Apr. 28, 2016USD ($)$ / sharesshares	Jun. 30, 2017USD ($)parcelproperty$ / shares	Jun. 30, 2016USD ($)	Dec. 31, 2016$ / shares
Conversion of Stock [Line Items]
Common stock, par value (in dollars per share) | $ / shares	$ 0.01	$ 0.01		$ 0.01
Reduction in carryover basis in connection with separation from InvenTrust | $	$ 76,583	$ 0	$ 76,583
Number of assets (in property) | property		15
Parcels of land | parcel		4
Common Stock
Conversion of Stock [Line Items]
Shares issued for each share held at date of spin-off (in shares) | shares	1

Disposed Assets (Details)

Disposed Assets (Details) $ in Thousands	Apr. 10, 2017USD ($)	Jun. 30, 2017USD ($)property	Jun. 30, 2016USD ($)property	Jun. 30, 2017USD ($)property	Jun. 30, 2016USD ($)property	Feb. 19, 2016property
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on extinguishment of debt		$ 116,900	$ 0	$ 116,900	$ 0
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of retail assets distributed (in property) | property		0	4	0	4	4
Dulles Executive Plaza Asset | Mortgages | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on extinguishment of debt	$ 4,300	$ 4,300		$ 4,300
AT&T-Hoffman Estates Asset | Mortgages | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on extinguishment of debt		$ 112,600		$ 112,600

Transactions with Related Par28

Transactions with Related Parties (Details) - InvenTrust - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Related Party Transaction [Line Items]
General and administrative expense allocation	$ 0	$ 576	$ 0	$ 3,324
Transition services fees	$ 0	$ 51	$ 0

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($) $ in Thousands	Apr. 10, 2017	May 01, 2014	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Mar. 25, 2016
Debt Instrument [Line Items]
Debt, net			$ 163,492		$ 163,492		$ 380,240
Gain on extinguishment of debt			116,900	$ 0	116,900	$ 0
Mortgages
Debt Instrument [Line Items]
Debt, net			$ 164,310		$ 164,310		$ 381,981
Weighted average interest rate			5.20%		5.20%		8.27%
Deferred financing costs, net			$ 818		$ 818		$ 1,741
Notes payable | InvenTrust
Debt Instrument [Line Items]
Debt, net								$ 15,062
Face amount		$ 32,908
Interest rate		8.50%
Accrued interest								$ 89
Dulles Executive Plaza | Mortgages
Debt Instrument [Line Items]
Debt, net	$ 68,750
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations | Dulles Executive Plaza Asset | Mortgages
Debt Instrument [Line Items]
Gain on extinguishment of debt	$ 4,300		4,300		4,300
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | AT&T-Hoffman Estates Asset | Mortgages
Debt Instrument [Line Items]
Gain on extinguishment of debt			$ 112,600		$ 112,600

Debt - Scheduled Maturities (De

Debt - Scheduled Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Total	$ 163,492	$ 380,240
Mortgages
Debt Instrument [Line Items]
2,017	108,083
2,018	0
2,019	0
2,020	0
2,021	20,084
Thereafter	36,143
Total	$ 164,310	$ 381,981
Weighted average interest rate
2,017	5.34%
2,018	0.00%
2,019	0.00%
2,020	0.00%
2,021	5.25%
Thereafter	5.20%
Total	5.20%	8.27%

Fair Value Measurements - Asset

Fair Value Measurements - Assets Measured On Nonrecurring Basis (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)leased_asset
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Provision for asset impairment	$ 712	$ 42,615	$ 712	$ 42,615
Number of leased assets, impaired | leased_asset				2
Capitalization rate				7.50%
Investment Properties | Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	8,750	37,703	8,750	$ 37,703
Investment Properties | Nonrecurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 8,750	$ 37,703	$ 8,750	$ 37,703
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
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 - Not M

Fair Value Measurements - Not Measured at Fair Value (Details) $ in Thousands	Jun. 30, 2017USD ($)
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgages payable	$ 164,310
Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgages payable	$ 89,555

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Long-term debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Discount rate	4.43%
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%
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	5.24%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income tax benefit (expense)	$ 9	$ (234)	$ 7	$ (238)

Segment Reporting - Narrative (

Segment Reporting - Narrative (Details)	6 Months Ended
	Jun. 30, 2017segment
Concentration Risk [Line Items]
Number of business segments (in segments)	3
Revenue | Customer concentration risk | AT&T- St. Louis
Concentration Risk [Line Items]
Concentration risk of revenues	25.60%

Segment Reporting - Net Propert

Segment Reporting - Net Property Operations (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)leased_asset	Jun. 30, 2016USD ($)leased_asset	Jun. 30, 2017USD ($)leased_asset	Jun. 30, 2016USD ($)leased_asset	Dec. 31, 2016USD ($)
Segment Reporting Information [Line Items]
Rental income	$ 12,596	$ 22,290	$ 27,359	$ 45,716
Tenant recovery income	2,084	2,485	3,667	5,436
Other property income	204	60	693	281
Total revenues	14,884	24,835	31,719	51,433
Operating expenses	3,895	3,734	10,542	8,363
Net operating income (loss)	10,989	21,101	21,177	43,070
Provision for asset impairment	(712)	(42,615)	(712)	(42,615)
Loss on disposition of investment properties	0	0	(3)	0
Gain on extinguishment of debt	116,900	0	116,900	0
Net income (loss)	115,409	(39,235)	108,566	(34,928)
Balance Sheet Data
Total assets	$ 371,363	$ 537,339	371,363	537,339	$ 512,554
Capital expenditures			$ 1,225	$ 422
Number of leased assets, impaired | leased_asset				2
Net Lease
Balance Sheet Data
Number of leased assets | leased_asset	1		1
Number of leased assets, impaired | leased_asset		2		2
Multi-Tenant Office
Balance Sheet Data
Number of leased assets | leased_asset	1		1
Number of leased assets, impaired | leased_asset	1		1
Operating segments | Net Lease
Segment Reporting Information [Line Items]
Rental income	$ 7,181	$ 14,586	$ 14,744	$ 29,208
Tenant recovery income	105	688	193	1,537
Other property income	51	143	60	277
Total revenues	7,337	15,417	14,997	31,022
Operating expenses	524	894	3,089	1,865
Net operating income (loss)	6,813	14,523	11,908	29,157
Balance Sheet Data
Total assets	94,643	215,763	94,643	215,763
Capital expenditures			0	0
Operating segments | Retail
Segment Reporting Information [Line Items]
Rental income	4,052	4,220	8,172	9,419
Tenant recovery income	1,970	1,688	3,486	3,530
Other property income	12	(8)	407	61
Total revenues	6,034	5,900	12,065	13,010
Operating expenses	2,160	1,812	4,382	4,424
Net operating income (loss)	3,874	4,088	7,683	8,586
Balance Sheet Data
Total assets	150,315	156,966	150,315	156,966
Capital expenditures			150	422
Operating segments | Multi-Tenant Office
Segment Reporting Information [Line Items]
Rental income	1,363	3,484	4,443	7,089
Tenant recovery income	9	109	(56)	369
Other property income	127	(87)	208	(76)
Total revenues	1,499	3,506	4,595	7,382
Operating expenses	938	821	2,338	1,728
Net operating income (loss)	561	2,685	2,257	5,654
Balance Sheet Data
Total assets	50,436	86,002	50,436	86,002
Capital expenditures			1,028	0
Other
Segment Reporting Information [Line Items]
Rental income	0	0	0	0
Tenant recovery income	0	0	44	0
Other property income	14	12	18	19
Total revenues	14	12	62	19
Operating expenses	273	207	733	346
Net operating income (loss)	(259)	(195)	(671)	(327)
Balance Sheet Data
Total assets	$ 31,486	31,626	31,486	31,626
Capital expenditures			$ 47	0
Number of leased assets, impaired | leased_asset	1		1
Reconciling items
Segment Reporting Information [Line Items]
Non-allocated expenses	$ (7,472)	(11,217)	$ (17,174)	(22,328)
Other income and expenses	(4,296)	(6,504)	(11,622)	(13,055)
Provision for asset impairment		(42,615)	(712)	(42,615)
Loss on disposition of investment properties			(3)
Gain on extinguishment of debt			116,900
Balance Sheet Data
Total assets	44,483	46,982	44,483	46,982
Operating segments and corporate, non-segment
Balance Sheet Data
Total assets	$ 326,880	$ 490,357	$ 326,880	$ 490,357

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Numerator:
Net income (loss)	$ 115,409	$ (39,235)	$ 108,566	$ (34,928)
Denominator:
Weighted average shares outstanding - basic and diluted (in shares)	868,272,875	863,975,978	866,939,369	863,975,978
Basic and diluted (loss) income per share:
Net income (loss) per common share (in dollars per share)	$ 0.13	$ (0.05)	$ 0.13	$ (0.04)

Share Based Compensation (Detai

Share Based Compensation (Details) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017USD ($)$ / sharesshares	Jun. 30, 2017USD ($)employee$ / sharesshares	Jun. 30, 2016USD ($)shares	Apr. 28, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense | $	$ 100	$ 1,438	$ 1,850
Tax withholding for share-based compensation paid | $		$ 994	$ 814
Incentive awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (in shares)		3,454,761
Estimated fair value per share (in dollars per share) | $ / shares		$ 0.35
Number of shares authorized (in shares)				43,000,000
Shares available for future issuance (in shares)	31,489,683	31,489,683
Stock Awards
Beginning balance (in shares)		2,916,667
Granted (in shares)		3,454,761
Vested (in shares)		(6,371,428)
Forfeited (in shares)		0
Ending balance (in shares)	0	0
Weighted Average Grant Date Fair Value
Beginning Balance (in dollars per share) | $ / shares		$ 0.36
Granted (in dollars per share) | $ / shares		0.35
Vested (in dollars per share) | $ / shares		0.35
Forfeited (in dollars per share) | $ / shares		0
Ending Balance (in dollars per share) | $ / shares	$ 0	$ 0
Executive officers
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (in shares)			3,454,761
Aggregate value | $	$ 1,209	$ 1,209
Estimated fair value per share (in dollars per share) | $ / shares		$ 0.35
Stock Awards
Granted (in shares)			3,454,761
Weighted Average Grant Date Fair Value
Granted (in dollars per share) | $ / shares		$ 0.35
Two executive officers
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (in shares)		1,940,476
Number of executive officers (in employees) | employee		2
Compensation expense | $		$ 650
Stock Awards
Granted (in shares)		1,940,476