Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 12, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Highlands REIT, Inc. | ||
Entity Central Index Key | 1,661,458 | ||
Entity Filer Category | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Entity Current Reporting Status | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Common Stock, Shares Outstanding | 871,385,672 | ||
Entity Public Float | $ 303.9 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investment properties | ||
Land | $ 79,163 | $ 121,027 |
Building and other improvements | 296,204 | 394,022 |
Construction in progress | 483 | 530 |
Total | 375,850 | 515,579 |
Less accumulated depreciation | (109,928) | (84,651) |
Net investment properties | 265,922 | 430,928 |
Cash and cash equivalents | 53,852 | 57,129 |
Restricted cash and escrows | 2,155 | 7,034 |
Accounts and rents receivable (net of allowance of $850 and $478) | 4,897 | 9,997 |
Intangible assets, net | 561 | 3,253 |
Deferred costs and other assets | 2,230 | 4,213 |
Total assets | 329,617 | 512,554 |
Liabilities | ||
Debt, net | 55,273 | 380,240 |
Accounts payable and accrued expenses | 11,048 | 42,899 |
Intangible liabilities, net | 3,413 | 3,831 |
Other liabilities | 1,786 | 2,304 |
Total liabilities | 71,520 | 429,274 |
Commitments and contingencies (Note 15) | ||
Stockholders’ Equity | ||
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 868,423,581 shares issued and outstanding as of December 31, 2017 | 8,684 | 8,649 |
Additional paid-in capital | 1,406,460 | 1,405,677 |
Accumulated distributions in excess of net income | (1,157,047) | (1,331,046) |
Total stockholders’ equity | 258,097 | 83,280 |
Total liabilities and stockholders' equity | $ 329,617 | $ 512,554 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts and rent receivables | $ 850 | $ 478 |
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized | 1,000,000,000 | |
Common stock, shares issued | 868,423,581 | |
Common stock, shares outstanding | 868,423,581 |
Combined Consolidated Statement
Combined Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||
Rental income | $ 47,115 | $ 79,942 | $ 96,960 |
Tenant recovery income | 7,342 | 10,856 | 14,447 |
Other property income | 1,005 | 666 | 430 |
Total revenues | 55,462 | 91,464 | 111,837 |
Expenses | |||
Property operating expenses | 10,871 | 10,628 | 10,721 |
Real estate taxes | 7,420 | 10,739 | 10,303 |
Depreciation and amortization | 17,225 | 27,303 | 36,212 |
General and administrative expenses | 10,924 | 14,156 | 12,241 |
Provision for asset impairment | 25,849 | 61,582 | 0 |
Total expenses | 72,289 | 124,408 | 69,477 |
Operating (loss) income | (16,827) | (32,944) | 42,360 |
Interest income | 156 | 7 | 1 |
Gain (loss) on sale of investment properties | 8,674 | 3,191 | (197) |
Gain (loss) on extinguishment of debt | 194,581 | (635) | 0 |
Other income (loss) | 1,451 | (113) | (11) |
Interest expense | (13,888) | (33,146) | (27,757) |
Income (loss) income before income taxes | 174,147 | (63,640) | 14,396 |
Income tax expense | (148) | (241) | (51) |
Net income (loss) | 173,999 | (63,881) | 14,345 |
Less: net income attributable to non-controlling interests | 0 | 0 | (15) |
Net income (loss) attributable to Company | $ 173,999 | $ (63,881) | $ 14,330 |
Net income (loss) per common share, basic and diluted (in dollars per share) | $ 0.20 | $ (0.07) | $ 0.02 |
Weighted average number of common shares outstanding, basic and diluted (in shares) | 867,687,575 | 864,654,841 | 862,014,421 |
Combined Consolidated Statemen5
Combined Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Distributions in Excess of Net Income | Non- Controlling Interests |
Beginning balance at Dec. 31, 2014 | $ 317,108 | $ 0 | $ 1,593,858 | $ (1,276,875) | $ 125 |
Beginning balance (in shares) at Dec. 31, 2014 | 0 | ||||
Net income (loss) | 14,345 | 14,330 | 15 | ||
Dividends paid | (4,620) | (4,620) | |||
Distributions to non-controlling interests | (15) | (15) | |||
Preferred Stock Redemption | (125) | (125) | |||
Distributions to InvenTrust | (155,332) | (155,332) | |||
Contributions from InvenTrust | 95,492 | 95,492 | |||
Ending balance (in shares) at Dec. 31, 2015 | 0 | ||||
Ending balance at Dec. 31, 2015 | 266,853 | $ 0 | 1,534,018 | (1,267,165) | 0 |
Net income (loss) | (63,881) | (63,881) | |||
Distributions to InvenTrust | (129,853) | (129,853) | |||
Contributions from InvenTrust | 85,358 | 85,358 | |||
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) | 862,205,672.118 | ||||
Repurchase of common shares, net | (69) | $ (2) | (67) | ||
Repurchase of common shares, net (in shares) | (191,250.861) | ||||
Share-based compensation | 1,455 | $ 29 | 1,426 | ||
Share-based compensation (in shares) | 2,876,546 | ||||
Ending balance (in shares) at Dec. 31, 2016 | 864,890,967 | ||||
Ending balance at Dec. 31, 2016 | 83,280 | $ 8,649 | 1,405,677 | (1,331,046) | 0 |
Net income (loss) | 173,999 | 173,999 | |||
Share-based compensation | 818 | $ 35 | 783 | ||
Share-based compensation (in shares) | 3,532,614 | ||||
Ending balance (in shares) at Dec. 31, 2017 | 868,423,581 | ||||
Ending balance at Dec. 31, 2017 | $ 258,097 | $ 8,684 | $ 1,406,460 | $ (1,157,047) | $ 0 |
Combined Consolidated Statemen6
Combined Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 173,999 | $ (63,881) | $ 14,345 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 17,256 | 27,252 | 36,238 |
Amortization of above and below market leases, net | (416) | (825) | (435) |
Amortization of debt discounts and financing costs | 112 | 214 | 220 |
Straight-line rental income | 271 | 558 | 2,265 |
(Gain) loss on extinguishment of debt | (194,581) | 635 | 0 |
(Gain) loss on sale of investment properties, net | (8,674) | (3,191) | 197 |
Provision for asset impairment | 25,849 | 61,582 | 0 |
Non-cash stock-based compensation expense | 1,438 | 2,642 | 0 |
Changes in assets and liabilities: | |||
Restricted escrows and other assets | (6,426) | (3,678) | 0 |
Accounts and rents receivable | 458 | (310) | (91) |
Settlement of balance due from InvenTrust | 228 | 0 | 0 |
Deferred costs and other assets | (517) | (762) | 681 |
Accounts payable and accrued expenses | 11,305 | 17,199 | 1,549 |
Other liabilities | (323) | 810 | (1,315) |
Net cash flows provided by operating activities | 19,979 | 38,245 | 53,654 |
Cash flows from investing activities: | |||
Capital expenditures and tenant improvements | (8,833) | (1,530) | (4,083) |
Proceeds from sale of investment properties, net | 38,193 | 30,577 | 7,860 |
Acquisition of investment properties | (19,702) | 0 | 0 |
Proceeds from insurance settlement | 545 | 0 | 0 |
Payment of leasing fees | (388) | (763) | (2,256) |
Restricted escrows and other assets | (273) | 0 | 450 |
Net cash flows provided by investing activities | 9,542 | 28,284 | 1,971 |
Cash flows from financing activities: | |||
Distributions to InvenTrust | 0 | (63,206) | (100,766) |
Contributions from InvenTrust | 0 | 67,444 | 87,765 |
Proceeds from mortgage debt and note payable | 0 | 26,500 | 0 |
Payoff of mortgage debt and note payable | (30,273) | (50,681) | 0 |
Principal payments of mortgage debt | (6,209) | (14,893) | (21,183) |
Restricted escrows | 4,678 | 0 | 0 |
Payment of loan fees and deposits | 0 | (653) | 0 |
Dividends paid | 0 | 0 | (4,620) |
Distributions paid to non-controlling interests | 0 | 0 | (15) |
Preferred stock redemption | 0 | (125) | |
Repurchase of common shares | 0 | (69) | 0 |
Payment for tax withholding for share-based compensation | (994) | (814) | 0 |
Net cash flows used in financing activities | (32,798) | (36,372) | (38,944) |
Net (decrease) increase in cash and cash equivalents | (3,277) | 30,157 | 16,681 |
Cash and cash equivalents, at beginning of year | 57,129 | 26,972 | 10,291 |
Cash and cash equivalents, at end of year | $ 53,852 | $ 57,129 | $ 26,972 |
Combined Consolidated Statemen7
Combined Consolidated Statements of Cash Flow - Supplemental - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | $ 5,933 | $ 18,541 | $ 24,394 |
Supplemental schedule of non-cash investing and financing activities: | |||
Non-cash accruals for capital expense and investment in development | 920 | 241 | 118 |
Mortgage loans payable and related obligations settled | 318,185 | 0 | 0 |
Real estate transferred to mortgage lender | (123,604) | 0 | 0 |
Change in allocation of InvenTrust unsecured credit facility | 0 | (17,914) | (7,779) |
Distribution of assets and liabilities of zero and four assets, respectively, to InvenTrust, net | 0 | 66,647 | 54,566 |
Reduction in carryover basis in connection with separation from InvenTrust | $ 0 | $ 76,583 | $ 0 |
Combined Consolidated Statemen8
Combined Consolidated Statements of Cash Flow - Parenthetical - property | Dec. 31, 2017 | Dec. 31, 2016 | 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) | 0 | 4 | 4 | 3 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Highlands REIT, Inc. (“Highlands”), which was formed in December 2015, is a Maryland corporation with a portfolio of single and multi-tenant office assets, industrial assets, retail assets, correctional facilities, two multi-family assets, 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 has elected to be taxed, and currently qualifies, 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 6 and 15 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 assumed by Highlands from InvenTrust are presented as if the business was Highlands’ business for all historical periods presented in the accompanying 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 with a corresponding adjustment to equity. The reduction in basis was related to an impairment loss that InvenTrust recorded upon the disposal of Highlands as part of the Distribution. 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 9. As of December 31, 2017 , the Company owned 15 assets and two parcels of unimproved land. As of December 31, 2016 , the Company owned 17 assets and four parcels of unimproved land. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The accompanying 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 combined consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Basis of Presentation The accompanying 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. As described in Note 1, on April 28, 2016, Highlands was spun off from InvenTrust pursuant to the Distribution. Prior to the Distribution, the accompanying historical 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 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 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 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 combined consolidated statements of cash flow as a financing activity. For the period subsequent to the spin-off from InvenTrust, the consolidated financial statements reflect the Company's financial position, results of operations and cash flows in conformity with GAAP. Revenue Recognition The Company commences revenue recognition on our leases based on a number of factors. In most cases, revenue recognition under a lease begins when the lessee takes possession of or controls the physical use of the leased asset. Generally, this occurs on the lease commencement date. The determination of who is the owner, for accounting purposes, of the tenant improvements determines the nature of the leased asset and when revenue recognition under a lease begins. If we are the owner, for accounting purposes, of the tenant improvements, then the leased asset is the finished space and revenue recognition begins when the lessee takes possession of the finished space, typically when the improvements are substantially complete. If we conclude we are not the owner, for accounting purposes, of the tenant improvements (the lessee is the owner), then the leased asset is the unimproved space and any tenant improvement allowances funded under the lease are treated as lease incentives which reduces revenue recognized over the term of the lease. In these circumstances, we begin revenue recognition when the lessee takes possession of the unimproved space for the lessee to construct their own improvements. We consider a number of different factors to evaluate whether it or the lessee is the owner of the tenant improvements for accounting purposes. These factors include: • whether the lease stipulates how and on what a tenant improvement allowance may be spent; • whether the tenant or landlord retains legal title to the improvements; • the uniqueness of the improvements; • the expected economic life of the tenant improvements relative to the length of the lease; and • who constructs or directs the construction of the improvements. The determination of who owns the tenant improvements, for accounting purposes, is subject to significant judgment. In making that determination, we consider all of the above factors. No one factor, however, necessarily establishes its determination. Rental income is recognized on a straight-line basis over the term of each lease. The difference between rental income earned on a straight-line basis and the cash rent due under the provisions of the lease agreements is recorded as deferred rent receivable and is included as a component of accounts and rents receivable in the accompanying combined consolidated balance sheets. The Company records lease termination income if there is a signed termination agreement, all of the conditions of the agreement have been met and amounts due are considered collectible. Real Estate We allocate the purchase price of real estate to land, building, other building improvements, tenant improvements, and intangible assets and liabilities (such as the value of above- and below-market leases, in-place leases and origination costs associated with in-place leases). The values of above- and below-market leases are recorded as intangible assets, net, and intangible liabilities, net, respectively, in the consolidated balance sheets, and are amortized as either a decrease (in the case of above-market leases) or an increase (in the case of below-market leases) to rental income over the remaining term of the associated tenant lease. The values associated with in-place leases are recorded in intangible assets, net in the consolidated balance sheets and are amortized to depreciation and amortization expense in the combined consolidated statements of operations over the remaining lease term. The difference between the contractual rental rates and our estimate of market rental rates is measured over a period equal to the remaining non-cancelable term of the leases, including below-market renewal options for which exercise of the renewal option appears to be reasonably assured. The remaining term of leases with renewal options at terms below market reflect the assumed exercise of such below-market renewal options and assume the amortization period would coincide with the extended lease term. We perform, with the assistance of a third-party certified valuation specialist, the following procedures for properties we acquire: • Estimate the value of the property “as if vacant” as of the acquisition date; • Allocate the value of the property among land, building, and other building improvements and determine the associated useful life for each; • Calculate the value and associated life of above- and below-market leases on a tenant-by-tenant basis. The difference between the contractual rental rates and our estimate of market rental rates is measured over a period equal to the remaining term of the leases (using a discount rate which reflects the risks associated with the leases acquired, including geographical location, size of leased area, tenant profile and credit risk); • Estimate the fair value of the tenant improvements, legal expenses and leasing commissions incurred to obtain the leases and calculate the associated useful life for each; • Estimate the fair value of assumed debt, if any, and value the favorable or unfavorable debt position acquired; and • Estimate the intangible value of the in-place leases based on lease execution costs of similar leases as well as lost rent payments during an assumed lease-up period and their associated useful lives on a tenant-by-tenant basis. We recognize gains and losses from sales of investment properties and land in accordance with FASB ASC 360-20, “Real Estate Sales”. The Company recognizes gains and losses from sales of investment properties at the time of sale using the full accrual method when the following criteria are met: sales are consummated; usual risks and rewards of ownership have been transferred to buyers; we have no substantial continuing involvement with the property; and any sales related receivables are not subject to future subordination. If these criteria are not all met, we defer the gains and recognize them when the criteria are met. If the full accrual method is not followed, the possible alternative is to use either the installment, deposit or cost recovery methods, as appropriate in the circumstances. Capitalization and Depreciation Real estate is reflected at cost less accumulated depreciation. Ordinary repairs and maintenance are expensed as incurred. Depreciation expense is computed using the straight line method. Building and other improvements are depreciated based upon estimated useful lives of 30 years for building and improvements and 5 - 15 years for furniture, fixtures and equipment and site improvements. Tenant improvements are amortized on a straight line basis over the lesser of the life of the tenant improvement or the lease term as a component of depreciation and amortization expense. Leasing fees are amortized on a straight-line basis over the life of the related lease as a component of depreciation and amortization expense. Loan fees are amortized on a straight-line basis, which approximates the effective interest method, over the life of the related loan as a component of interest expense. Direct and indirect costs that are clearly related to the construction and improvements of investment properties are capitalized. Costs incurred for property taxes and insurance are capitalized during periods in which activities necessary to get the asset ready for its intended use are in progress. Interest costs are also capitalized during such periods. Assets Held for Sale Beginning with the year ended December 31, 2014, all asset disposals have been included as a component of income from continuing operations unless they qualify as a significant shift in our business strategy. In determining whether to classify an investment property as held for sale, the Company considers whether: (i) management has committed to a plan to sell the investment property; (ii) the investment property is available for immediate sale, in its present condition; (iii) the Company has initiated a program to locate a buyer; (iv) the Company believes that the sale of the investment property is probable; (v) the Company has received a significant non-refundable deposit for the purchase of the property; (vi) the Company is actively marketing the investment property for sale at a price that is reasonable in relation to its fair value; and (vii) actions required for the Company to complete the plan indicate that it is unlikely that any significant changes will be made to the plan. If all of the above criteria are met, the Company classifies the investment property as held for sale. On the day that these criteria are met, the Company suspends depreciation on the investment properties held for sale, including depreciation for tenant improvements and additions, as well as on the amortization of acquired in-place leases. The investment properties and liabilities associated with those investment properties that are held for sale are classified separately on the consolidated balance sheets for the most recent reporting period and recorded at the lesser of the carrying value or fair value less costs to sell. There were no assets held for sale on the consolidated balance sheet as of December 31, 2017 and December 31, 2016. Impairment The Company assesses the carrying values of the respective long-lived assets, whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable, such as a reduction in the expected holding period of the asset. If it is determined that the carrying value is not recoverable because the undiscounted cash flows do not exceed carrying value, the Company records an impairment loss to the extent that the carrying value exceeds fair value. The valuation and possible subsequent impairment of investment properties is a significant estimate that can and does change based on the Company’s continuous process of analyzing each asset and reviewing assumptions about uncertain inherent factors, as well as the economic condition of the asset at a particular point in time. The use of projected future cash flows and related holding period is based on assumptions that are consistent with the estimates of future expectations and the strategic plan the Company uses to manage its underlying business. However, assumptions and estimates about future cash flows and capitalization rates are complex and subjective. Changes in economic and operating conditions and the Company’s ultimate investment intent that occur subsequent to the impairment analyses could impact these assumptions and result in future impairment charges of the real estate assets. During the year ended December 31, 2017, the Company identified certain assets which may have a reduction in the expected holding period, a reduction in occupancy or a reduction in fair market value which represented an impairment trigger, and recorded an impairment of investment properties of $25,849 on one net lease asset, one land parcel and one multi-tenant office asset. The Company recorded $25,849 and $61,582 of impairments during the years ended December 31, 2017 and 2016, respectively. See Note 10 to the combined consolidated financial statements for additional information. 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. Income Taxes The Company is taxed as, and operates in a manner that allows us 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 U.S. 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 (subject to certain adjustments) to its stockholders (the "90% Distribution Requirement"). 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 U.S. 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 U.S. 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 U.S. 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 U.S. 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 U.S. federal income tax purposes as those of the Company. 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 (as codified in ASC 606) 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 subsequently amended in conjunction with ASU No. 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross Versus Net), comprise ASU Topic 606, Revenue Recognition, are effective for us on January 1, 2018, and are required to be applied either on a retrospective or a modified retrospective approach. We have evaluated all of our revenue streams to identify whether each revenue stream would be subject to the provisions of ASC 606 and any differences in the timing, measurement or presentation of revenue recognition. In evaluating all of our revenue streams, the majority of our revenues result from leasing transactions that 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). As a result, the Company has concluded that the new revenue guidance will not have a material impact on its recognition and disclosure of revenue. The Company will adopt the standard effective January 1, 2018 and plans to use the modified retrospective approach. In February 2017, the FASB issued ASU No. 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets. As it relates to gains on sale of real estate, we will apply the provisions of ASC 610-20, Gain or Loss From Derecognition of Non-financial Assets (“ASC 610-20”), and we expect to recognize any gains when we transfer control of a property and when it is probable that we will collect substantially all of the related consideration. The adoption of ASC 610-20 on January 1, 2018 will not have a significant impact on our combined consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”), which introduces a lessee model that brings most leases on the balance sheet and, among other changes, eliminates the requirement in current GAAP for an entity to use bright-line tests in determining lease classification. The FASB also issued an Exposure Draft on January 5, 2018 proposing to amend ASU 2016-02, which would provide lessors with a practical expedient, by class of underlying assets, to not separate non-lease components from the related lease components and, instead, to account for those components as a single lease component, if certain criteria are met. ASU 2016-02 and the related Exposure Draft are not effective for us until January 1, 2019, with early adoption permitted. We are continuing to evaluate this guidance and the impact to us, as both lessor and lessee, on our combined consolidated financial statements. We expect to utilize the practical expedients proposed in the Exposure Draft as part of our adoption of ASU 2016-02. 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. 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. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business (“ASU 2017-01”). ASU 2017-1 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting, including acquisitions (including treatment of acquisition costs), disposals, goodwill, and consolidation. The guidance is effective for annual periods beginning after December 15, 2018, including interim periods within those periods. Early adoption of this standard is permitted. The Company has early adopted ASU 2017-01 effective as of July 1, 2017, the effects of which were not material to the 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. The adoption of ASU 2017-09 did not have a material impact on the combined consolidated financial statements. |
Acquired Assets
Acquired Assets | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Acquired Assets | Acquired Assets The Company records identifiable assets and liabilities acquired at fair value. During the year ended December 31, 2017, the Company acquired two buildings for a gross acquisition price of $19,702 . Although acquired in a single transaction on August 21, 2017, the special purpose entity that now owns these assets contains the operations of the two distinct multi-family assets, Buerger Brothers Lofts and Chamber Lofts which are managed independently, and have been determined by management to be accounted for as two distinct assets. Under the newly adopted ASU No. 2017-01, the Company determined this transaction should be accounted for as an asset acquisition. Accordingly, the Company capitalized transaction costs of approximately $100 during the year ended December 31, 2017 . |
Disposed Assets
Disposed Assets | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposed Assets | Disposed Assets 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 asset, the Company was fully released from its nonrecourse indebtedness and had no further continuing obligations to the lender. The Company recognized a gain on extinguishment of debt in the amount of $4,514 for the year ended December 31, 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 and had no further continuing obligations to the lender. The Company recognized a gain on extinguishment of debt in the amount of $112,600 for the year ended December 31, 2017 . On August 22, 2017, the AT&T-St. Louis asset was sold via sheriff's sale as part of the foreclosure process. As a result of the foreclosure sale, the Company satisfied its nonrecourse indebtedness and had no further continuing obligations to the lender. The Company recognized a gain on extinguishment of debt in the amount of $77,466 for the year ended December 31, 2017 . For the year ended December 31, 2017 , the Company recorded a gain on extinguishment of debt of $194,581 . For the year ended December 31, 2016 the Company recorded a loss on extinguishment of debt of $635 . The Company sold one multi-tenant office asset and two land parcels during the year ended December 31, 2017 for an aggregate gross disposition price of $39,415 . The table below reflects sales activity for the year ended December 31, 2017 for the three assets included in the combined consolidated statements of operations. Property Date Gross Disposition Price Denver Highlands 10/16/2017 $ 8,000 Sand Lake land 10/26/2017 27,500 North Pointe land 11/30/2017 3,915 $ 39,415 The Company sold AT&T-Cleveland during the year ended December 31, 2016 for a gross disposition price of $32,000 . 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 combined consolidated statements of cash flow for the year ended December 31, 2016 . The Company sold Citizens Manchester during the year ended December 31, 2015 for a gross disposition price of $8,200 . 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 combined consolidated statements of cash flow for the year ended December 31, 2015 . For the years ended December 31, 2017 and 2016 , the Company recorded a gain on the sale of investment properties of $8,674 and $3,191 , respectively. For the year ended December 31, 2015 the Company recorded a loss on the sale of investment properties of $197 . |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following: Year Ended December 31, 2017 2016 Accrued real estate taxes $ 6,488 $ 5,734 Accrued compensation 1,919 2,156 Accrued interest payable 206 32,654 Other accrued expenses 2,435 2,356 Total accounts payable and accrued expenses $ 11,048 $ 42,899 |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 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 year ended December 31, 2017 , 2016 , and 2015 . Year Ended December 31, 2017 2016 2015 General and administrative expense allocation (a) $ — $ 3,324 $ 11,739 Transition services fees (b) $ — $ 96 $ — Other reimbursements (c) $ 56 $ — $ — (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 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. (c) The Separation and Distribution Agreement with InvenTrust called for reimbursement of insurance premiums for a six year term starting April 28, 2016, which the Company began accruing during the third quarter of the year ended December 31, 2017 when the Company received information to reasonably estimate the expense attributable to the Company. 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. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Leases | Leases Operating Leases Minimum lease payments to be received under operating leases, assuming no expiring leases are renewed, are as follows: For the Year Ended December 31, Minimum Lease Payment 2018 $ 33,043 2019 31,023 2020 19,068 2021 13,545 2022 8,741 Thereafter 32,678 Total $ 138,098 The remaining lease terms range from one year to fifteen years. The majority of the revenue from the Company’s assets consists of rents received under long-term operating leases. Some leases provide for the payment of fixed base rent paid monthly in advance, and for the reimbursement by tenants to the Company for the tenant’s pro rata share of certain operating expenses including real estate taxes, special assessments, insurance, utilities, common area maintenance, management fees, and certain building repairs paid by the landlord and recoverable under the terms of the lease. Under these leases, the landlord pays all expenses and is reimbursed by the tenant for the tenant’s pro rata share of recoverable expenses paid. Certain other tenants are subject to net leases which provide that the tenant is responsible for fixed base rent as well as all costs and expenses associated with occupancy. Under net leases where all expenses are paid directly by the tenant rather than the landlord, such expenses are not included in the combined consolidated statements of operations. Under leases where all expenses are paid by the landlord, subject to reimbursement by the tenant, the expenses are included within property operating expenses and reimbursements are included in tenant recovery income on the combined consolidated statements of operations. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The following table summarizes the Company's identified intangible assets and intangible liabilities as of December 31, 2017 and 2016 . Balance as of December 31, 2017 2016 Intangible Assets: Acquired in-place lease $ 18,903 $ 45,626 Acquired above market lease 127 127 Accumulated amortization (18,469 ) (42,500 ) Intangible assets, net $ 561 $ 3,253 Intangible liabilities: Acquired below market lease 8,106 8,106 Accumulated amortization (4,693 ) (4,275 ) Intangible Liabilities, net $ 3,413 $ 3,831 The portion of the purchase price allocated to acquired above market lease costs and acquired below market lease costs are amortized on a straight line basis over the life of the related lease, including the respective renewal period for below market lease costs with fixed rate renewals, as an adjustment to other property income. Amortization pertaining to the above market lease costs was applied as a reduction to other property income. Amortization pertaining to the below market lease costs was applied as an increase to other property income. The portion of the purchase price allocated to acquired in-place lease intangibles is amortized on a straight line basis over the life of the related lease and is recorded as amortization expense. The following table summarizes the amortization related to acquired above and below market lease costs and acquired in-place lease intangibles for the years ended December 31, 2017 , 2016 , and 2015 . For the years ended December 31, 2017 2016 2015 Amortization of: Acquired above market lease $ (2 ) $ (18 ) $ (127 ) Acquired below market lease 418 843 562 Net rental income increase $ 416 $ 825 $ 435 Acquired in-place lease intangibles $ 2,997 $ 6,526 $ 7,492 The following table presents the amortization during the next five years and thereafter related to intangible assets and liabilities as of December 31, 2017 . 2018 2019 2020 2021 2022 Thereafter Total Amortization of: Acquired above market lease $ (2 ) $ (2 ) $ (2 ) $ (2 ) $ (2 ) $ (4 ) $ (14 ) Acquired below market lease 409 380 313 297 297 1,717 3,413 Net rental income increase $ 407 $ 378 $ 311 $ 295 $ 295 $ 1,713 $ 3,399 Acquired in-place lease intangibles $ 501 $ 46 $ — $ — $ — $ — $ 547 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt During the years ended December 31, 2017 and 2016 , the following principal debt transactions occurred: Balance at December 31, 2015 $ 438,970 New financings 26,500 Paydown of InvenTrust line of credit allocation (17,914 ) Paydown of debt (65,575 ) Balance at December 31, 2016 $ 381,981 Transfer of mortgages payable to lenders (289,611 ) Paydown of debt (36,484 ) Balance at December 31, 2017 $ 55,886 Mortgages Payable Mortgage loans outstanding as of December 31, 2017 and December 31, 2016 , net of unamortized deferred financing costs, were $55,273 and $380,240 , respectively, and had a weighted average interest rate of 4.92% and 8.27% per annum, respectively. Deferred financing costs, net, as of December 31, 2017 and December 31, 2016 were $613 and $1,741 , respectively. As of December 31, 2017 , 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 December 31, 2017 Weighted average interest rate 2018 $ — — % 2019 — — % 2020 — — % 2021 19,847 5.25 % 2022 9,553 5.24 % Thereafter 26,486 4.56 % Total $ 55,886 4.92 % 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 December 31, 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 carve-out 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 December 31, 2017 and December 31, 2016 , the Company is in compliance with such covenants in all material respects. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 year ended December 31, 2017 , the Company identified certain assets which may have a reduction in the expected holding period, a reduction in occupancy or a reduction in fair market value which represented an impairment trigger, and recorded an impairment of investment properties of $25,849 on one net lease asset, one land parcel and one multi-tenant office asset. The following table presents these assets measured at fair value on a nonrecurring basis as of December 31, 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 December 31, 2017 Investment Properties — — $ 33,257 (a) $ 33,257 $ 25,849 (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. The estimate of fair value relating to the correctional facility's impairment analysis was based on a 10 -year discounted cash flow model. 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 ranging from 5.50% to 10.50% and discount rates ranging from 7.00% to 13.50% were utilized in the models and are based upon observable rates that the Company believes to be within a reasonable range of current market rates. During the year ended December 31, 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 $61,582 on three net lease assets. The following table presents these assets measured at fair value on a nonrecurring basis for the year ended December 31, 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 December 31, 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. 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 models 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 . For the year ended December 31, 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 consolidated financial statements as of December 31, 2017 and as of December 31, 2016 . December 31, 2017 December 31, 2016 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Mortgages payable $ 55,886 $ 56,862 $ 381,981 $ 382,906 The Company estimates the fair value of its debt instruments using a weighted average market effective interest rate of 4.35% and 4.35% per annum as of December 31, 2017 and December 31, 2016 . 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 4.92% and 4.09% to 4.93% as of December 31, 2017 and December 31, 2016 , 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 | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is taxed and operates in a manner that will allow the Company continue 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 maintains its qualification as a REIT, the Company generally will not be subject to U.S. 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 (subject to certain adjustments) to its stockholders each year. If the Company fails to continue to qualify as a REIT in any taxable year, without the benefit of certain relief provisions, the Company will be subject to U.S. 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 U.S. 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 U.S. federal income tax purposes as those of InvenTrust. As discussed above a REIT has a requirement to distribute at least 90% of its taxable income (subject to certain adjustments) to its stockholders each year. For the year ended December 31, 2016, the Company had a taxable loss and did not have a distribution requirement. It is the Company’s intention to adhere to the REIT distribution requirements for the year ended December 31, 2017, including applying the throwback provisions under IRC §858 (a), to maintain its REIT status and obtain a full dividends paid deduction. 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 U.S. 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 U.S. federal income tax purposes as those of the Company. During the years ended December 31, 2017 , 2016 and 2015, respectively, an income tax expense of $148 , $241 , and $51 was included on the combined consolidated statements of operations. The Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. For the twelve months ended December 31, 2017 , 2016 and 2015 , there was $155 , $0 and $0 U.S. federal excise tax accrual recorded. On December 22, 2017, the Act was passed into law, which resulted in significant U.S. federal income tax reform. The Company conducted a review of the Acts impact to Highlands and determined there was no impact to the Company's accounting for the income tax as of December 31, 2017. Uncertain Tax Positions The Company had no unrecognized tax benefits as of or during the three year period ended December 31, 2017 . The Company expects no significant increases or decreases in unrecognized tax benefits due to changes in tax positions within one year of December 31, 2017 . The Company has no material interest or penalties relating to income taxes recognized in the combined consolidated statements of operations for the years ended December 31, 2017 , 2016 and 2015 or in the consolidated balance sheets as of December 31, 2017 and 2016 . As of December 31, 2017 , the Company's, including its predecessors', 2016, 2015 and 2014 tax years remain subject to examination by U.S. and various state tax jurisdictions. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 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 multi-family and unimproved land assets are presented below in Other. The following table summarizes net property operations income by segment for the year ended December 31, 2017 . Total Net Lease Retail Multi-Tenant Office Other Rental income $ 47,115 $ 23,207 $ 16,536 $ 6,962 $ 410 Tenant recovery income 7,342 289 7,098 (117 ) 72 Other property income 1,005 60 423 383 139 Total income 55,462 23,556 24,057 7,228 621 Operating expenses and real estate taxes 18,291 3,702 9,134 3,782 1,673 Net operating income (loss) $ 37,171 $ 19,854 $ 14,923 $ 3,446 $ (1,052 ) Non-allocated expenses (a) (28,149 ) Other income and expenses (b) (12,429 ) Provision for asset impairment (c) (25,849 ) Gain on sale of investment properties (d) 8,674 Gain on extinguishment of debt (e) 194,581 Net income $ 173,999 Balance Sheet Data Real estate assets, net (f) $ 266,483 $ 42,671 $ 147,971 $ 46,791 $ 29,050 Non-segmented assets (g) 63,134 Total assets 329,617 Capital expenditures $ 8,833 $ — $ 1,279 $ 7,381 $ 173 (a) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of interest income, other income, interest expense, and income tax expense. (c) Provision for asset impairment includes $25,849 related to one multi-tenant office, one net lease asset and one land parcel. (d) Gain on the sale of investment properties is related to two land parcels and one multi-tenant office asset. (e) Gain on extinguishment of debt is related to two net lease and one multi-tenant office assets. (f) Real estate assets include intangible assets, net of amortization. (g) 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 year ended December 31, 2016 . Total Net Lease Retail Multi-Tenant Office Other Rental income $ 79,942 $ 49,298 $ 17,794 $ 12,850 $ — Tenant recovery income 10,856 2,974 7,330 552 — Other property income 666 532 97 3 34 Total income 91,464 52,804 25,221 13,405 34 Operating expenses and real estate taxes 21,367 6,402 9,349 4,479 1,137 Net operating income (loss) $ 70,097 $ 46,402 $ 15,872 $ 8,926 $ (1,103 ) Non-allocated expenses (a) (41,459 ) Other income and expenses (b) (33,493 ) Provision for asset impairment (c) (61,582 ) Gain on sale of investment properties (d) 3,191 Loss on extinguishment of debt (d) (635 ) Net income $ (63,881 ) Balance Sheet Data Real estate assets, net (e) $ 434,180 155,288 153,650 93,611 31,631 Non-segmented assets (f) $ 78,374 Total assets $ 512,554 Capital expenditures $ 1,530 — 751 775 4 (a) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of interest income, interest expense, other loss, and income tax expense. (c) Provision for asset impairment includes $61,582 related to three net lease assets. (d) Gain on sale of investment properties and loss on extinguishment is related to the disposition of one net lease asset. (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 year ended December 31, 2015 . Total Net Lease Retail Multi-Tenant Office Other Rental income 96,960 63,323 24,275 9,362 — Tenant recovery income 14,447 3,740 10,061 646 — Other property income 430 37 261 98 34 Total income 111,837 67,100 34,597 10,106 34 Operating expenses and real estate taxes 21,024 3,877 12,726 3,205 1,216 Net operating income (loss) 90,813 63,223 21,871 6,901 (1,182 ) Non-allocated expenses (a) (48,453 ) Other income and expenses (b) (28,015 ) Less: net income attributable to non-controlling interests (15 ) Net income attributable to Company 14,330 Balance Sheet Data Real estate assets, net (c) 692,355 327,205 229,122 104,123 31,905 Non-segmented assets (d) 46,799 Total assets 739,154 Capital expenditures 4,083 (364 ) 2,858 1,589 — (a) Non-allocated expenses consists of general and administrative expenses, business management fee, and depreciation and amortization. (b) Other income and expenses consists of interest income, loss on sale of investment properties, gain on extinguishment of debt, interest expense, other income and income tax expense. (c) Real estate assets include intangible assets, net of amortization. (d) 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 | 12 Months Ended |
Dec. 31, 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. 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 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): Year Ended December 31, 2017 2016 2015 Numerator: Net income (loss) $ 173,999 $ (63,881 ) $ 14,345 Less: Net income attributable to non-controlling interests — — (15 ) Net income (loss) attributable to Company $ 173,999 $ (63,881 ) $ 14,330 Denominator: Weighted average shares outstanding - basic and diluted 867,687,575 864,654,841 862,014,421 Basic and diluted income (loss) per share: Net income (loss) per common share $ 0.20 $ (0.07 ) $ 0.02 |
Share Based Compensation
Share Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
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. During the twelve months ended December 31, 2017 , the Company granted 3,454,761 fully vested shares of common stock with an aggregate value of $1,209 based on an 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 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 December 31, 2017 , 31,489,683 shares were available for future issuance under the Incentive Award Plan. A summary of the Company's stock awards activity as of December 31, 2017 is as follows: Non-Vested stock awards Stock Awards Weighted Average Grant Date Fair Value Balance at January 1, 2016 2,916,667 0.36 Granted 3,454,761 $ 0.35 Vested (6,371,428 ) 0.35 Forfeited — — Balance at December 31, 2017 — $ — The Company recognized stock-based compensation expense for the years ended December 31, 2017 and 2016 of $1,438 and $2,642 , respectively, related to the Incentive Award Plan. At December 31, 2017 , there was approximately $0 of estimated unrecognized compensation expense related to these awards. For the years ended December 31, 2017 and 2016, the Company paid $994 and $814 , respectively, related to tax withholding for share-based compensation. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 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 InvenTrust’s or MB REIT’s failure to maintain its qualification as a REIT for any taxable year ending on or before December 31, 2016. |
Quarterly Supplemental Financia
Quarterly Supplemental Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Supplemental Financial Information (unaudited) | Quarterly Supplemental Financial Information (unaudited) The following represents the results of operations, for each quarterly period, during 2017 and 2016 . For the Quarter Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Total income $ 16,835 $ 14,884 $ 13,003 $ 10,740 Total expenses 23,675 (100,525 ) (67,793 ) 26,106 Net income (loss) (6,840 ) 115,409 80,796 (15,366 ) Net income (loss) per common share, basic and diluted $ (0.01 ) $ 0.13 $ 0.09 $ (0.02 ) Weighted average number of common shares outstanding, basic and diluted (a) 865,591,047 868,272,875 868,423,581 868,423,581 For the Quarter Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Total income $ 26,597 $ 24,836 $ 20,356 $ 19,675 Total expenses 22,289 64,072 41,696 29,849 Net income (loss) 4,308 (39,236 ) (21,340 ) (7,613 ) Net income (loss) per common share, basic and diluted $ 0.00 $ (0.05 ) $ (0.02 ) $ (0.01 ) Weighted average number of common shares outstanding, basic and diluted (a) 862,014,421 863,975,978 864,890,967 864,890,967 (a) Quarterly income per common share amounts may not total the annual amounts due to rounding and the changes in number of weighted common shares outstanding. |
Schedule III Real Estate and Ac
Schedule III Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2017 | |
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule III Real Estate and Accumulated Depreciation | Initial Cost (A) Gross amount at which carried at end of period Encumbrance Land Buildings and Improvements Adjustments to Land Basis (B) Adjustments to Building Basis (B) Land and Improvements Buildings and Improvements Total (C) Accumulated Depreciation (D,E) Date of Completion of Construction or Acquisition Retail BUCKHORN PLAZA 10,486 1,651 11,770 — 2,122 1,651 13,892 15,543 5,547 2006 Bloomsburg, PA LINCOLN MALL — 11,000 50,395 — 6,855 11,000 57,250 68,250 22,687 2006 Lincoln, RI SHERMAN PLAZA — 9,655 30,982 — 9,594 9,655 40,576 50,231 15,102 2006 Evanston, IL STATE STREET MARKET 9,553 3,950 14,184 — 1,775 3,950 15,959 19,909 6,761 2006 Rockford, IL THE MARKET AT HILLIARD 16,000 4,432 13,308 — 3,279 4,432 16,587 21,019 6,647 2005 Hilliard, OH TRIANGLE CENTER 19,847 12,770 24,556 — 3,578 12,770 28,134 40,904 11,982 2005 Longview, WA Net Lease CITIZENS (CFG) RHODE ISLAND 1,278 3,817 (702 ) (2,947 ) 576 870 1,446 160 1970 Providence, RI ATLAS - ST PAUL — 3,890 10,093 — — 3,890 10,093 13,983 3,621 2007 St. Paul, MN ATLAS-NEW ULM — 900 9,359 — — 900 9,359 10,259 3,363 2007 New Ulm, MN HASKELL-ROLLING PLAINS FACILITY — 45 19,733 (45 ) (19,733 ) — — — — 2008 Haskell, TX HUDSON CORRECTIONAL FACILITY — 1,382 — (813 ) 43,824 569 43,824 44,393 20,266 2009 Hudson, CO Initial Cost (A) Gross amount at which carried at end of period Encumbrance Land Buildings and Improvements Adjustments to Land Basis (B) Adjustments to Building Basis (B) Land and Improvements Buildings and Improvements Total (C) Accumulated Depreciation (D,E) Date of Completion of Construction or Acquisition Multi-tenant office TRIMBLE I — 12,732 10,045 — 5,686 12,732 15,731 28,463 1,098 2013 San Jose, CA BRIDGESIDE POINT OFFICE BLDG — 1,525 28,609 — 1,799 1,525 30,408 31,933 12,509 2006 Pittsburgh, PA Other BUERGER BROTHERS LOFTS — 3,117 7,114 — — 3,117 7,114 10,231 96 2017 Denver, CO CHAMBER LOFTS — 2,797 6,388 — — 2,797 6,388 9,185 86 2017 Denver, CO PALAZZO DEL LAGO — 8,938 — — 19 8,938 19 8,957 3 2010 Orlando, FL RDU Land — 1,220 — (559 ) — 661 — 661 — 2015 Raleigh, NC Totals $ 55,886 $ 81,282 $ 240,353 $ (2,119 ) $ 55,851 $ 79,163 $ 296,204 $ 375,367 $ 109,928 Notes to Schedule III: The Company had $483 of assets included in construction in progress at December 31, 2017 , which have been omitted from the prior table. The aggregate cost of real estate owned at December 31, 2017 for U.S. federal income tax purposes was approximately $426,746 (unaudited). (A) The initial cost to the Company represents the original purchase price of the asset, including amounts incurred subsequent to acquisition which were contemplated at the time the asset was acquired. (B) Adjustments to basis include provisions for asset impairments and costs capitalized subsequent to acquisitions. (C) Reconciliation of real estate owned: 2017 2016 2015 Balance at January 1 $ 515,049 $ 864,908 $ 961,921 Acquisitions and capital improvements 27,740 1,136 5,154 Dispositions and write-offs (157,872 ) (28,372 ) (8,321 ) Reduction in carryover basis in connection with separation from InvenTrust — (76,583 ) — Asset impairments (9,550 ) (157,748 ) — Assets transferred to InvenTrust — (88,292 ) (93,846 ) Balance at December 31, $ 375,367 $ 515,049 $ 864,908 (D) Reconciliation of accumulated depreciation: 2017 2016 2015 Balance at January 1 $ 84,651 $ 185,100 $ 180,027 Depreciation expense 13,430 20,010 27,785 Assets transferred to InvenTrust — (20,538 ) (22,336 ) Dispositions and write-offs (4,452 ) (3,756 ) (376 ) Asset impairments 16,299 (96,165 ) — Balance at December 31, $ 109,928 $ 84,651 $ 185,100 (E) Depreciation is computed based upon the following estimated lives: Buildings and improvements 30 years Tenant improvements Life of the lease Furniture, fixtures, & equipment 5-15 years |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying 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. As described in Note 1, on April 28, 2016, Highlands was spun off from InvenTrust pursuant to the Distribution. Prior to the Distribution, the accompanying historical 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 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 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 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 combined consolidated statements of cash flow as a financing activity. For the period subsequent to the spin-off from InvenTrust, the consolidated financial statements reflect the Company's financial position, results of operations and cash flows in conformity with GAAP. |
Revenue Recognition | Revenue Recognition The Company commences revenue recognition on our leases based on a number of factors. In most cases, revenue recognition under a lease begins when the lessee takes possession of or controls the physical use of the leased asset. Generally, this occurs on the lease commencement date. The determination of who is the owner, for accounting purposes, of the tenant improvements determines the nature of the leased asset and when revenue recognition under a lease begins. If we are the owner, for accounting purposes, of the tenant improvements, then the leased asset is the finished space and revenue recognition begins when the lessee takes possession of the finished space, typically when the improvements are substantially complete. If we conclude we are not the owner, for accounting purposes, of the tenant improvements (the lessee is the owner), then the leased asset is the unimproved space and any tenant improvement allowances funded under the lease are treated as lease incentives which reduces revenue recognized over the term of the lease. In these circumstances, we begin revenue recognition when the lessee takes possession of the unimproved space for the lessee to construct their own improvements. We consider a number of different factors to evaluate whether it or the lessee is the owner of the tenant improvements for accounting purposes. These factors include: • whether the lease stipulates how and on what a tenant improvement allowance may be spent; • whether the tenant or landlord retains legal title to the improvements; • the uniqueness of the improvements; • the expected economic life of the tenant improvements relative to the length of the lease; and • who constructs or directs the construction of the improvements. The determination of who owns the tenant improvements, for accounting purposes, is subject to significant judgment. In making that determination, we consider all of the above factors. No one factor, however, necessarily establishes its determination. Rental income is recognized on a straight-line basis over the term of each lease. The difference between rental income earned on a straight-line basis and the cash rent due under the provisions of the lease agreements is recorded as deferred rent receivable and is included as a component of accounts and rents receivable in the accompanying combined consolidated balance sheets. The Company records lease termination income if there is a signed termination agreement, all of the conditions of the agreement have been met and amounts due are considered collectible. Real Estate We allocate the purchase price of real estate to land, building, other building improvements, tenant improvements, and intangible assets and liabilities (such as the value of above- and below-market leases, in-place leases and origination costs associated with in-place leases). The values of above- and below-market leases are recorded as intangible assets, net, and intangible liabilities, net, respectively, in the consolidated balance sheets, and are amortized as either a decrease (in the case of above-market leases) or an increase (in the case of below-market leases) to rental income over the remaining term of the associated tenant lease. The values associated with in-place leases are recorded in intangible assets, net in the consolidated balance sheets and are amortized to depreciation and amortization expense in the combined consolidated statements of operations over the remaining lease term. The difference between the contractual rental rates and our estimate of market rental rates is measured over a period equal to the remaining non-cancelable term of the leases, including below-market renewal options for which exercise of the renewal option appears to be reasonably assured. The remaining term of leases with renewal options at terms below market reflect the assumed exercise of such below-market renewal options and assume the amortization period would coincide with the extended lease term. We perform, with the assistance of a third-party certified valuation specialist, the following procedures for properties we acquire: • Estimate the value of the property “as if vacant” as of the acquisition date; • Allocate the value of the property among land, building, and other building improvements and determine the associated useful life for each; • Calculate the value and associated life of above- and below-market leases on a tenant-by-tenant basis. The difference between the contractual rental rates and our estimate of market rental rates is measured over a period equal to the remaining term of the leases (using a discount rate which reflects the risks associated with the leases acquired, including geographical location, size of leased area, tenant profile and credit risk); • Estimate the fair value of the tenant improvements, legal expenses and leasing commissions incurred to obtain the leases and calculate the associated useful life for each; • Estimate the fair value of assumed debt, if any, and value the favorable or unfavorable debt position acquired; and • Estimate the intangible value of the in-place leases based on lease execution costs of similar leases as well as lost rent payments during an assumed lease-up period and their associated useful lives on a tenant-by-tenant basis. We recognize gains and losses from sales of investment properties and land in accordance with FASB ASC 360-20, “Real Estate Sales”. The Company recognizes gains and losses from sales of investment properties at the time of sale using the full accrual method when the following criteria are met: sales are consummated; usual risks and rewards of ownership have been transferred to buyers; we have no substantial continuing involvement with the property; and any sales related receivables are not subject to future subordination. If these criteria are not all met, we defer the gains and recognize them when the criteria are met. If the full accrual method is not followed, the possible alternative is to use either the installment, deposit or cost recovery methods, as appropriate in the circumstances. |
Capitalization and Depreciation | Capitalization and Depreciation Real estate is reflected at cost less accumulated depreciation. Ordinary repairs and maintenance are expensed as incurred. Depreciation expense is computed using the straight line method. Building and other improvements are depreciated based upon estimated useful lives of 30 years for building and improvements and 5 - 15 years for furniture, fixtures and equipment and site improvements. Tenant improvements are amortized on a straight line basis over the lesser of the life of the tenant improvement or the lease term as a component of depreciation and amortization expense. Leasing fees are amortized on a straight-line basis over the life of the related lease as a component of depreciation and amortization expense. Loan fees are amortized on a straight-line basis, which approximates the effective interest method, over the life of the related loan as a component of interest expense. Direct and indirect costs that are clearly related to the construction and improvements of investment properties are capitalized. Costs incurred for property taxes and insurance are capitalized during periods in which activities necessary to get the asset ready for its intended use are in progress. Interest costs are also capitalized during such periods. |
Assets Held for Sale | Assets Held for Sale Beginning with the year ended December 31, 2014, all asset disposals have been included as a component of income from continuing operations unless they qualify as a significant shift in our business strategy. In determining whether to classify an investment property as held for sale, the Company considers whether: (i) management has committed to a plan to sell the investment property; (ii) the investment property is available for immediate sale, in its present condition; (iii) the Company has initiated a program to locate a buyer; (iv) the Company believes that the sale of the investment property is probable; (v) the Company has received a significant non-refundable deposit for the purchase of the property; (vi) the Company is actively marketing the investment property for sale at a price that is reasonable in relation to its fair value; and (vii) actions required for the Company to complete the plan indicate that it is unlikely that any significant changes will be made to the plan. If all of the above criteria are met, the Company classifies the investment property as held for sale. On the day that these criteria are met, the Company suspends depreciation on the investment properties held for sale, including depreciation for tenant improvements and additions, as well as on the amortization of acquired in-place leases. The investment properties and liabilities associated with those investment properties that are held for sale are classified separately on the consolidated balance sheets for the most recent reporting period and recorded at the lesser of the carrying value or fair value less costs to sell. |
Impairment | Impairment The Company assesses the carrying values of the respective long-lived assets, whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable, such as a reduction in the expected holding period of the asset. If it is determined that the carrying value is not recoverable because the undiscounted cash flows do not exceed carrying value, the Company records an impairment loss to the extent that the carrying value exceeds fair value. The valuation and possible subsequent impairment of investment properties is a significant estimate that can and does change based on the Company’s continuous process of analyzing each asset and reviewing assumptions about uncertain inherent factors, as well as the economic condition of the asset at a particular point in time. The use of projected future cash flows and related holding period is based on assumptions that are consistent with the estimates of future expectations and the strategic plan the Company uses to manage its underlying business. However, assumptions and estimates about future cash flows and capitalization rates are complex and subjective. Changes in economic and operating conditions and the Company’s ultimate investment intent that occur subsequent to the impairment analyses could impact these assumptions and result in future impairment charges of the real estate assets. During the year ended December 31, 2017, the Company identified certain assets which may have a reduction in the expected holding period, a reduction in occupancy or a reduction in fair market value which represented an impairment trigger, and recorded an impairment of investment properties of $25,849 on one net lease asset, one land parcel and one multi-tenant office asset. The Company recorded $25,849 and $61,582 of impairments during the years ended December 31, 2017 and 2016, respectively. See Note 10 to the combined consolidated financial statements for additional information. |
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. |
Income Taxes | Income Taxes The Company is taxed as, and operates in a manner that allows us 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 U.S. 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 (subject to certain adjustments) to its stockholders (the "90% Distribution Requirement"). 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 U.S. 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 U.S. 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 U.S. 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 U.S. 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 U.S. federal income tax purposes as those of the Company. |
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 (as codified in ASC 606) 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 subsequently amended in conjunction with ASU No. 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross Versus Net), comprise ASU Topic 606, Revenue Recognition, are effective for us on January 1, 2018, and are required to be applied either on a retrospective or a modified retrospective approach. We have evaluated all of our revenue streams to identify whether each revenue stream would be subject to the provisions of ASC 606 and any differences in the timing, measurement or presentation of revenue recognition. In evaluating all of our revenue streams, the majority of our revenues result from leasing transactions that 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). As a result, the Company has concluded that the new revenue guidance will not have a material impact on its recognition and disclosure of revenue. The Company will adopt the standard effective January 1, 2018 and plans to use the modified retrospective approach. In February 2017, the FASB issued ASU No. 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets. As it relates to gains on sale of real estate, we will apply the provisions of ASC 610-20, Gain or Loss From Derecognition of Non-financial Assets (“ASC 610-20”), and we expect to recognize any gains when we transfer control of a property and when it is probable that we will collect substantially all of the related consideration. The adoption of ASC 610-20 on January 1, 2018 will not have a significant impact on our combined consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”), which introduces a lessee model that brings most leases on the balance sheet and, among other changes, eliminates the requirement in current GAAP for an entity to use bright-line tests in determining lease classification. The FASB also issued an Exposure Draft on January 5, 2018 proposing to amend ASU 2016-02, which would provide lessors with a practical expedient, by class of underlying assets, to not separate non-lease components from the related lease components and, instead, to account for those components as a single lease component, if certain criteria are met. ASU 2016-02 and the related Exposure Draft are not effective for us until January 1, 2019, with early adoption permitted. We are continuing to evaluate this guidance and the impact to us, as both lessor and lessee, on our combined consolidated financial statements. We expect to utilize the practical expedients proposed in the Exposure Draft as part of our adoption of ASU 2016-02. 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. 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. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business (“ASU 2017-01”). ASU 2017-1 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting, including acquisitions (including treatment of acquisition costs), disposals, goodwill, and consolidation. The guidance is effective for annual periods beginning after December 15, 2018, including interim periods within those periods. Early adoption of this standard is permitted. The Company has early adopted ASU 2017-01 effective as of July 1, 2017, the effects of which were not material to the 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. The adoption of ASU 2017-09 did not have a material impact on the combined consolidated financial statements. |
Disposed Assets (Tables)
Disposed Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Sales Activity and Operations | The table below reflects sales activity for the year ended December 31, 2017 for the three assets included in the combined consolidated statements of operations. Property Date Gross Disposition Price Denver Highlands 10/16/2017 $ 8,000 Sand Lake land 10/26/2017 27,500 North Pointe land 11/30/2017 3,915 $ 39,415 |
Accounts Payable and Accrued 28
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following: Year Ended December 31, 2017 2016 Accrued real estate taxes $ 6,488 $ 5,734 Accrued compensation 1,919 2,156 Accrued interest payable 206 32,654 Other accrued expenses 2,435 2,356 Total accounts payable and accrued expenses $ 11,048 $ 42,899 |
Transactions with Related Par29
Transactions with Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Transactions | The following table summarizes the Company’s related party transactions for the year ended December 31, 2017 , 2016 , and 2015 . Year Ended December 31, 2017 2016 2015 General and administrative expense allocation (a) $ — $ 3,324 $ 11,739 Transition services fees (b) $ — $ 96 $ — Other reimbursements (c) $ 56 $ — $ — (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 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. (c) The Separation and Distribution Agreement with InvenTrust called for reimbursement of insurance premiums for a six year term starting April 28, 2016, which the Company began accruing during the third quarter of the year ended December 31, 2017 when the Company received information to reasonably estimate the expense attributable to the Company. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule of Minimum Lease Payments to Be Received | Minimum lease payments to be received under operating leases, assuming no expiring leases are renewed, are as follows: For the Year Ended December 31, Minimum Lease Payment 2018 $ 33,043 2019 31,023 2020 19,068 2021 13,545 2022 8,741 Thereafter 32,678 Total $ 138,098 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of identified intangible assets and intangible liabilities | The following table summarizes the Company's identified intangible assets and intangible liabilities as of December 31, 2017 and 2016 . Balance as of December 31, 2017 2016 Intangible Assets: Acquired in-place lease $ 18,903 $ 45,626 Acquired above market lease 127 127 Accumulated amortization (18,469 ) (42,500 ) Intangible assets, net $ 561 $ 3,253 Intangible liabilities: Acquired below market lease 8,106 8,106 Accumulated amortization (4,693 ) (4,275 ) Intangible Liabilities, net $ 3,413 $ 3,831 |
Summary of amortization of identified intangible assets and liabilities | The following table summarizes the amortization related to acquired above and below market lease costs and acquired in-place lease intangibles for the years ended December 31, 2017 , 2016 , and 2015 . For the years ended December 31, 2017 2016 2015 Amortization of: Acquired above market lease $ (2 ) $ (18 ) $ (127 ) Acquired below market lease 418 843 562 Net rental income increase $ 416 $ 825 $ 435 Acquired in-place lease intangibles $ 2,997 $ 6,526 $ 7,492 The following table presents the amortization during the next five years and thereafter related to intangible assets and liabilities as of December 31, 2017 . 2018 2019 2020 2021 2022 Thereafter Total Amortization of: Acquired above market lease $ (2 ) $ (2 ) $ (2 ) $ (2 ) $ (2 ) $ (4 ) $ (14 ) Acquired below market lease 409 380 313 297 297 1,717 3,413 Net rental income increase $ 407 $ 378 $ 311 $ 295 $ 295 $ 1,713 $ 3,399 Acquired in-place lease intangibles $ 501 $ 46 $ — $ — $ — $ — $ 547 |
Summary of accretion income for below market leases | The following table presents the amortization during the next five years and thereafter related to intangible assets and liabilities as of December 31, 2017 . 2018 2019 2020 2021 2022 Thereafter Total Amortization of: Acquired above market lease $ (2 ) $ (2 ) $ (2 ) $ (2 ) $ (2 ) $ (4 ) $ (14 ) Acquired below market lease 409 380 313 297 297 1,717 3,413 Net rental income increase $ 407 $ 378 $ 311 $ 295 $ 295 $ 1,713 $ 3,399 Acquired in-place lease intangibles $ 501 $ 46 $ — $ — $ — $ — $ 547 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Transactions | During the years ended December 31, 2017 and 2016 , the following principal debt transactions occurred: Balance at December 31, 2015 $ 438,970 New financings 26,500 Paydown of InvenTrust line of credit allocation (17,914 ) Paydown of debt (65,575 ) Balance at December 31, 2016 $ 381,981 Transfer of mortgages payable to lenders (289,611 ) Paydown of debt (36,484 ) Balance at December 31, 2017 $ 55,886 |
Scheduled Maturities of Mortgage Indebtedness | As of December 31, 2017 , 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 December 31, 2017 Weighted average interest rate 2018 $ — — % 2019 — — % 2020 — — % 2021 19,847 5.25 % 2022 9,553 5.24 % Thereafter 26,486 4.56 % Total $ 55,886 4.92 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 for the year ended December 31, 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 December 31, 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. 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 models and are based upon observable rates that the Company believes to be within a reasonable range of current market rates. The following table presents these assets measured at fair value on a nonrecurring basis as of December 31, 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 December 31, 2017 Investment Properties — — $ 33,257 (a) $ 33,257 $ 25,849 (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. The estimate of fair value relating to the correctional facility's impairment analysis was based on a 10 -year discounted cash flow model. 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 ranging from 5.50% to 10.50% and discount rates ranging from 7.00% to 13.50% were utilized in the models 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 consolidated financial statements as of December 31, 2017 and as of December 31, 2016 . December 31, 2017 December 31, 2016 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Mortgages payable $ 55,886 $ 56,862 $ 381,981 $ 382,906 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Summary of Net Property Operations | The following table summarizes net property operations income by segment for the year ended December 31, 2017 . Total Net Lease Retail Multi-Tenant Office Other Rental income $ 47,115 $ 23,207 $ 16,536 $ 6,962 $ 410 Tenant recovery income 7,342 289 7,098 (117 ) 72 Other property income 1,005 60 423 383 139 Total income 55,462 23,556 24,057 7,228 621 Operating expenses and real estate taxes 18,291 3,702 9,134 3,782 1,673 Net operating income (loss) $ 37,171 $ 19,854 $ 14,923 $ 3,446 $ (1,052 ) Non-allocated expenses (a) (28,149 ) Other income and expenses (b) (12,429 ) Provision for asset impairment (c) (25,849 ) Gain on sale of investment properties (d) 8,674 Gain on extinguishment of debt (e) 194,581 Net income $ 173,999 Balance Sheet Data Real estate assets, net (f) $ 266,483 $ 42,671 $ 147,971 $ 46,791 $ 29,050 Non-segmented assets (g) 63,134 Total assets 329,617 Capital expenditures $ 8,833 $ — $ 1,279 $ 7,381 $ 173 (a) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of interest income, other income, interest expense, and income tax expense. (c) Provision for asset impairment includes $25,849 related to one multi-tenant office, one net lease asset and one land parcel. (d) Gain on the sale of investment properties is related to two land parcels and one multi-tenant office asset. (e) Gain on extinguishment of debt is related to two net lease and one multi-tenant office assets. (f) Real estate assets include intangible assets, net of amortization. (g) 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 year ended December 31, 2016 . Total Net Lease Retail Multi-Tenant Office Other Rental income $ 79,942 $ 49,298 $ 17,794 $ 12,850 $ — Tenant recovery income 10,856 2,974 7,330 552 — Other property income 666 532 97 3 34 Total income 91,464 52,804 25,221 13,405 34 Operating expenses and real estate taxes 21,367 6,402 9,349 4,479 1,137 Net operating income (loss) $ 70,097 $ 46,402 $ 15,872 $ 8,926 $ (1,103 ) Non-allocated expenses (a) (41,459 ) Other income and expenses (b) (33,493 ) Provision for asset impairment (c) (61,582 ) Gain on sale of investment properties (d) 3,191 Loss on extinguishment of debt (d) (635 ) Net income $ (63,881 ) Balance Sheet Data Real estate assets, net (e) $ 434,180 155,288 153,650 93,611 31,631 Non-segmented assets (f) $ 78,374 Total assets $ 512,554 Capital expenditures $ 1,530 — 751 775 4 (a) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of interest income, interest expense, other loss, and income tax expense. (c) Provision for asset impairment includes $61,582 related to three net lease assets. (d) Gain on sale of investment properties and loss on extinguishment is related to the disposition of one net lease asset. (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 year ended December 31, 2015 . Total Net Lease Retail Multi-Tenant Office Other Rental income 96,960 63,323 24,275 9,362 — Tenant recovery income 14,447 3,740 10,061 646 — Other property income 430 37 261 98 34 Total income 111,837 67,100 34,597 10,106 34 Operating expenses and real estate taxes 21,024 3,877 12,726 3,205 1,216 Net operating income (loss) 90,813 63,223 21,871 6,901 (1,182 ) Non-allocated expenses (a) (48,453 ) Other income and expenses (b) (28,015 ) Less: net income attributable to non-controlling interests (15 ) Net income attributable to Company 14,330 Balance Sheet Data Real estate assets, net (c) 692,355 327,205 229,122 104,123 31,905 Non-segmented assets (d) 46,799 Total assets 739,154 Capital expenditures 4,083 (364 ) 2,858 1,589 — (a) Non-allocated expenses consists of general and administrative expenses, business management fee, and depreciation and amortization. (b) Other income and expenses consists of interest income, loss on sale of investment properties, gain on extinguishment of debt, interest expense, other income and income tax expense. (c) Real estate assets include intangible assets, net of amortization. (d) 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) | 12 Months Ended |
Dec. 31, 2017 | |
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): Year Ended December 31, 2017 2016 2015 Numerator: Net income (loss) $ 173,999 $ (63,881 ) $ 14,345 Less: Net income attributable to non-controlling interests — — (15 ) Net income (loss) attributable to Company $ 173,999 $ (63,881 ) $ 14,330 Denominator: Weighted average shares outstanding - basic and diluted 867,687,575 864,654,841 862,014,421 Basic and diluted income (loss) per share: Net income (loss) per common share $ 0.20 $ (0.07 ) $ 0.02 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation [Abstract] | |
Summary of Stock Award Activity | A summary of the Company's stock awards activity as of December 31, 2017 is as follows: Non-Vested stock awards Stock Awards Weighted Average Grant Date Fair Value Balance at January 1, 2016 2,916,667 0.36 Granted 3,454,761 $ 0.35 Vested (6,371,428 ) 0.35 Forfeited — — Balance at December 31, 2017 — $ — |
Quarterly Supplemental Financ37
Quarterly Supplemental Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information | The following represents the results of operations, for each quarterly period, during 2017 and 2016 . For the Quarter Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Total income $ 16,835 $ 14,884 $ 13,003 $ 10,740 Total expenses 23,675 (100,525 ) (67,793 ) 26,106 Net income (loss) (6,840 ) 115,409 80,796 (15,366 ) Net income (loss) per common share, basic and diluted $ (0.01 ) $ 0.13 $ 0.09 $ (0.02 ) Weighted average number of common shares outstanding, basic and diluted (a) 865,591,047 868,272,875 868,423,581 868,423,581 For the Quarter Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Total income $ 26,597 $ 24,836 $ 20,356 $ 19,675 Total expenses 22,289 64,072 41,696 29,849 Net income (loss) 4,308 (39,236 ) (21,340 ) (7,613 ) Net income (loss) per common share, basic and diluted $ 0.00 $ (0.05 ) $ (0.02 ) $ (0.01 ) Weighted average number of common shares outstanding, basic and diluted (a) 862,014,421 863,975,978 864,890,967 864,890,967 (a) Quarterly income per common share amounts may not total the annual amounts due to rounding and the changes in number of weighted common shares outstanding. |
Organization (Details)
Organization (Details) $ / shares in Units, $ in Thousands | Apr. 28, 2016USD ($)$ / sharesshares | Dec. 31, 2017USD ($)parcelproperty$ / shares | Dec. 31, 2016USD ($)parcelproperty | Dec. 31, 2015USD ($) |
Conversion of Stock [Line Items] | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Reduction in basis of investment property | $ 76,583 | $ 0 | $ 76,583 | $ 0 |
Equity adjustment for reduction in basis of investment property | $ 76,583 | $ 76,583 | ||
Number of assets (in property) | property | 15 | 17 | ||
Parcels of land | parcel | 2 | 4 | ||
Common stock | ||||
Conversion of Stock [Line Items] | ||||
Shares issued for each share held at date of spin-off (in shares) | shares | 1 | |||
Equity adjustment for reduction in basis of investment property | $ (8,622) |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)leased_assetparcel | Dec. 31, 2016USD ($)leased_asset | Dec. 31, 2015USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Assets held for sale | $ | $ 0 | $ 0 | |
Provision for asset impairment | $ | $ 25,849,000 | $ 61,582,000 | $ 0 |
Buildings and improvements | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Estimated useful lives | 30 years | ||
Furniture, fixtures, equipment and site improvements | Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Estimated useful lives | 5 years | ||
Furniture, fixtures, equipment and site improvements | Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Estimated useful lives | 15 years | ||
Net Lease | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of leased assets, impaired | 1 | 3 | |
Multi-Tenant Office | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of leased assets, impaired | 1 | ||
Level 3 | Fair Value, Measurements, Nonrecurring | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of leased assets, impaired | parcel | 1 | ||
Level 3 | Fair Value, Measurements, Nonrecurring | Net Lease | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of leased assets, impaired | 1 | 3 | |
Level 3 | Fair Value, Measurements, Nonrecurring | Multi-Tenant Office | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of leased assets, impaired | 1 |
Acquired Assets (Details)
Acquired Assets (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017USD ($)building | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017property | |
Schedule of Asset Acquisitions, by Acquisition [Line Items] | |||||
Acquisition of investment properties | $ 19,702 | $ 0 | $ 0 | ||
Multi-Tenant Residential | |||||
Schedule of Asset Acquisitions, by Acquisition [Line Items] | |||||
Number of properties acquired | 2 | 2 | |||
Acquisition of investment properties | $ 19,702 | ||||
Capitalized transaction costs | $ 100 |
Disposed Assets - Narrative (De
Disposed Assets - Narrative (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017USD ($)property | Dec. 31, 2016USD ($)property | Dec. 31, 2015USD ($) | Feb. 19, 2016property | Jan. 28, 2015property | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (loss) on extinguishment of debt | $ 194,581 | $ (635) | $ 0 | ||
Gain (loss) on sale of investment properties | $ 8,674 | $ 3,191 | (197) | ||
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 assets (in property) | property | 0 | 4 | 4 | 3 | |
Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gross Disposition Price | $ 39,415 | ||||
Gain (loss) on sale of investment properties | 8,674 | $ 3,191 | (197) | ||
AT&T - Cleveland | Net Lease | Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gross Disposition Price | $ 32,000 | ||||
Citizens Manchester | Net Lease | Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gross Disposition Price | $ 8,200 | ||||
Mortgages | Dulles Executive Plaza Asset | 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] | |||||
Gain (loss) on extinguishment of debt | 4,514 | ||||
Mortgages | AT&T-Hoffman Estates Asset | 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 (loss) on extinguishment of debt | 112,600 | ||||
Mortgages | AT&T-St. Louis | 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 (loss) on extinguishment of debt | $ 77,466 |
Disposed Assets - Activity (Det
Disposed Assets - Activity (Details) - Discontinued Operations, Disposed of by Sale $ in Thousands | Dec. 31, 2017USD ($)parcelproperty |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of parcels of land | parcel | 2 |
Gross Disposition Price | $ 39,415 |
Denver Highlands | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Gross Disposition Price | 8,000 |
Sand Lake land | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Gross Disposition Price | 27,500 |
North Pointe land | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Gross Disposition Price | $ 3,915 |
Multi-Tenant Office | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of assets (in property) | property | 1 |
Accounts Payable and Accrued 43
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Accrued real estate taxes | $ 6,488 | $ 5,734 |
Accrued compensation | 1,919 | 2,156 |
Accrued interest payable | 206 | 32,654 |
Other accrued expenses | 2,435 | 2,356 |
Total accounts payable and accrued expenses | $ 11,048 | $ 42,899 |
Transactions with Related Par44
Transactions with Related Parties (Details) - InvenTrust - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
General and administrative expense allocation | $ 0 | $ 3,324 | $ 11,739 |
Transition services fees | 0 | 96 | 0 |
Business Manager Fee | $ 56 | $ 0 | 0 |
Unsecured credit facility | $ 17,914 |
Leases (Details)
Leases (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Leases [Abstract] | |
2,018 | $ 33,043 |
2,019 | 31,023 |
2,020 | 19,068 |
2,021 | 13,545 |
2,022 | 8,741 |
Thereafter | 32,678 |
Total | $ 138,098 |
Minimum | |
Property Subject to or Available for Operating Lease [Line Items] | |
Remaining lease terms | 1 year |
Maximum | |
Property Subject to or Available for Operating Lease [Line Items] | |
Remaining lease terms | 15 years |
Intangible Assets - Summary (De
Intangible Assets - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Amortization of: | ||
Accumulated amortization | $ (18,469) | $ (42,500) |
Intangible assets, net | 561 | 3,253 |
Intangible liabilities: | ||
Acquired below market lease | 8,106 | 8,106 |
Accumulated amortization | (4,693) | (4,275) |
Total | 3,413 | 3,831 |
Acquired in-place lease | ||
Amortization of: | ||
Intangible assets | 18,903 | 45,626 |
Intangible assets, net | 547 | |
Acquired above market lease | ||
Amortization of: | ||
Intangible assets | 127 | $ 127 |
Intangible assets, net | $ 14 |
Intangible Assets - Lease Amort
Intangible Assets - Lease Amortization, Rental Income Increase, and Lease Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amortization of: | |||
Acquired below market lease | $ 418 | $ 843 | $ 562 |
Net rental income increase | 416 | 825 | 435 |
Acquired above market lease | |||
Amortization of: | |||
Intangible assets | 2 | 18 | 127 |
Acquired in-place lease | |||
Amortization of: | |||
Intangible assets | $ 2,997 | $ 6,526 | $ 7,492 |
Intangible Assets - Amortizatio
Intangible Assets - Amortization Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Amortization of: | ||
Intangible assets, net | $ 561 | $ 3,253 |
Acquired below market lease | ||
2,018 | 409 | |
2,019 | 380 | |
2,020 | 313 | |
2,021 | 297 | |
2,022 | 297 | |
Thereafter | 1,717 | |
Total | 3,413 | $ 3,831 |
Net rental income increase, 2018 | (407) | |
Net rental income increase, 2019 | (378) | |
Net rental income increase, 2020 | (311) | |
Net rental income increase, 2021 | (295) | |
Net rental income increase, 2022 | (295) | |
Net rental income increase, Thereafter | (1,713) | |
Net rental income increase, Total | 3,399 | |
Acquired above market lease | ||
Amortization of: | ||
2,018 | 2 | |
2,019 | 2 | |
2,020 | 2 | |
2,021 | 2 | |
2,022 | 2 | |
Thereafter | 4 | |
Intangible assets, net | 14 | |
Acquired in-place lease | ||
Amortization of: | ||
2,018 | 501 | |
2,019 | 46 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 0 | |
Thereafter | 0 | |
Intangible assets, net | $ 547 |
Debt - Transactions (Details)
Debt - Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Movement in Debt [Roll Forward] | ||
Beginning Balance | $ 381,981 | $ 438,970 |
New financings | 26,500 | |
Paydown of InvenTrust line of credit allocation | (17,914) | |
Transfer of mortgages payable to lenders | (289,611) | |
Paydown of debt | (36,484) | (65,575) |
Ending Balance | $ 55,886 | $ 381,981 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Debt, net | $ 55,273 | $ 380,240 |
Mortgages | ||
Debt Instrument [Line Items] | ||
Debt, net | $ 55,273 | $ 380,240 |
Weighted average interest rate | 4.92% | 8.27% |
Deferred financing costs, net | $ 613 | $ 1,741 |
Debt - Scheduled Maturities (De
Debt - Scheduled Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Total | $ 55,886 | $ 381,981 | $ 438,970 |
Mortgages | |||
Debt Instrument [Line Items] | |||
2,018 | 0 | ||
2,019 | 0 | ||
2,020 | 0 | ||
2,021 | 19,847 | ||
2,022 | 9,553 | ||
Thereafter | 26,486 | ||
Total | $ 55,886 | ||
Weighted average interest rate | |||
2,018 | 0.00% | ||
2,019 | 0.00% | ||
2,020 | 0.00% | ||
2,021 | 5.25% | ||
2,022 | 5.24% | ||
Thereafter | 4.56% | ||
Total | 4.92% | 8.27% |
Fair Value Measurements - Non-R
Fair Value Measurements - Non-Recurring Measurements (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)leased_assetparcel | Dec. 31, 2016USD ($)leased_asset | Dec. 31, 2015USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Provision for asset impairment | $ | $ 25,849 | $ 61,582 | $ 0 |
Term of discounted cash flow model | 10 years | 10 years | |
Capitalization rate | 7.50% | ||
Net Lease | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of leased assets, impaired | 1 | 3 | |
Multi-Tenant Office | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of leased assets, impaired | 1 | ||
Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Capitalization rate | 5.50% | ||
Discount rate | 7.00% | 7.50% | |
Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Capitalization rate | 10.50% | ||
Discount rate | 13.50% | 9.50% | |
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment properties | $ | $ 33,257 | $ 69,654 | |
Fair Value, Measurements, Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment properties | $ | $ 69,654 | ||
Number of leased assets, impaired | parcel | 1 | ||
Fair Value, Measurements, Nonrecurring | Level 3 | Net Lease | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of leased assets, impaired | 1 | 3 | |
Fair Value, Measurements, Nonrecurring | Level 3 | Multi-Tenant Office | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of leased assets, impaired | 1 |
Fair Value Measurements - Not M
Fair Value Measurements - Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgages payable | $ 55,886 | $ 381,981 |
Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgages payable | $ 56,862 | $ 382,906 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Discount rate | 7.00% | 7.50% |
Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Discount rate | 13.50% | 9.50% |
Long-term debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Discount rate | 4.35% | 4.35% |
Long-term debt | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Discount rate | 4.10% | 4.09% |
Long-term debt | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Discount rate | 4.92% | 4.93% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 148,000 | $ 241,000 | $ 51,000 |
U.S. federal excise tax accrual | 155,000 | 0 | 0 |
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)segmentleased_assetparcel | Dec. 31, 2016USD ($)leased_asset | Dec. 31, 2015USD ($) | |
Concentration Risk [Line Items] | |||
Number of business segments (in segments) | segment | 3 | ||
Provision for asset impairment | $ | $ 25,849 | $ 61,582 | $ 0 |
Multi-Tenant Office | |||
Concentration Risk [Line Items] | |||
Number of leased assets, impaired | 1 | ||
Number of leased assets | 1 | ||
Net Lease | |||
Concentration Risk [Line Items] | |||
Number of leased assets, impaired | 1 | 3 | |
Number of leased assets | 2 | 1 | |
Other | |||
Concentration Risk [Line Items] | |||
Number of leased assets, impaired | parcel | 1 | ||
Number of leased assets | parcel | 2 |
Segment Reporting - Net Propert
Segment Reporting - Net Property Operations (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)leased_assetparcel | Dec. 31, 2016USD ($)leased_asset | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Rental income | $ 47,115 | $ 79,942 | $ 96,960 | ||||||||
Tenant recovery income | 7,342 | 10,856 | 14,447 | ||||||||
Other property income | 1,005 | 666 | 430 | ||||||||
Total revenues | $ 10,740 | $ 13,003 | $ 14,884 | $ 16,835 | $ 19,675 | $ 20,356 | $ 24,836 | $ 26,597 | 55,462 | 91,464 | 111,837 |
Operating expenses and real estate taxes | 18,291 | 21,367 | 21,024 | ||||||||
Net operating income (loss) | 37,171 | 70,097 | 90,813 | ||||||||
Provision for asset impairment | (25,849) | (61,582) | 0 | ||||||||
Gain (loss) on sale of investment properties | 8,674 | 3,191 | (197) | ||||||||
Gain (loss) on extinguishment of debt | 194,581 | (635) | 0 | ||||||||
Less: net income attributable to non-controlling interests | 0 | 0 | (15) | ||||||||
Net income (loss) attributable to Company | 173,999 | (63,881) | 14,330 | ||||||||
Balance Sheet Data | |||||||||||
Total assets | 329,617 | 512,554 | 329,617 | 512,554 | 739,154 | ||||||
Capital expenditures | 8,833 | 1,530 | 4,083 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Rental income | 410 | 0 | 0 | ||||||||
Tenant recovery income | 72 | 0 | 0 | ||||||||
Other property income | 139 | 34 | 34 | ||||||||
Total revenues | 621 | 34 | 34 | ||||||||
Operating expenses and real estate taxes | 1,673 | 1,137 | 1,216 | ||||||||
Net operating income (loss) | $ (1,052) | (1,103) | (1,182) | ||||||||
Number of leased assets | parcel | 2 | ||||||||||
Balance Sheet Data | |||||||||||
Total assets | 29,050 | 31,631 | $ 29,050 | 31,631 | 31,905 | ||||||
Capital expenditures | 173 | 4 | 0 | ||||||||
Reconciling items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Non-allocated expenses | (28,149) | (41,459) | (48,453) | ||||||||
Other income and expenses | (12,429) | (33,493) | (28,015) | ||||||||
Provision for asset impairment | (25,849) | ||||||||||
Balance Sheet Data | |||||||||||
Total assets | 63,134 | 78,374 | 63,134 | 78,374 | 46,799 | ||||||
Operating segments and corporate, non-segment | |||||||||||
Balance Sheet Data | |||||||||||
Total assets | 266,483 | 434,180 | $ 266,483 | $ 434,180 | 692,355 | ||||||
Net Lease | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number of leased assets | leased_asset | 2 | 1 | |||||||||
Net Lease | Operating segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Rental income | $ 23,207 | $ 49,298 | 63,323 | ||||||||
Tenant recovery income | 289 | 2,974 | 3,740 | ||||||||
Other property income | 60 | 532 | 37 | ||||||||
Total revenues | 23,556 | 52,804 | 67,100 | ||||||||
Operating expenses and real estate taxes | 3,702 | 6,402 | 3,877 | ||||||||
Net operating income (loss) | 19,854 | 46,402 | 63,223 | ||||||||
Balance Sheet Data | |||||||||||
Total assets | 42,671 | 155,288 | 42,671 | 155,288 | 327,205 | ||||||
Capital expenditures | 0 | 0 | (364) | ||||||||
Retail | Operating segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Rental income | 16,536 | 17,794 | 24,275 | ||||||||
Tenant recovery income | 7,098 | 7,330 | 10,061 | ||||||||
Other property income | 423 | 97 | 261 | ||||||||
Total revenues | 24,057 | 25,221 | 34,597 | ||||||||
Operating expenses and real estate taxes | 9,134 | 9,349 | 12,726 | ||||||||
Net operating income (loss) | 14,923 | 15,872 | 21,871 | ||||||||
Balance Sheet Data | |||||||||||
Total assets | 147,971 | 153,650 | 147,971 | 153,650 | 229,122 | ||||||
Capital expenditures | $ 1,279 | 751 | 2,858 | ||||||||
Multi-Tenant Office | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number of leased assets | leased_asset | 1 | ||||||||||
Multi-Tenant Office | Operating segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Rental income | $ 6,962 | 12,850 | 9,362 | ||||||||
Tenant recovery income | (117) | 552 | 646 | ||||||||
Other property income | 383 | 3 | 98 | ||||||||
Total revenues | 7,228 | 13,405 | 10,106 | ||||||||
Operating expenses and real estate taxes | 3,782 | 4,479 | 3,205 | ||||||||
Net operating income (loss) | 3,446 | 8,926 | 6,901 | ||||||||
Balance Sheet Data | |||||||||||
Total assets | $ 46,791 | $ 93,611 | 46,791 | 93,611 | 104,123 | ||||||
Capital expenditures | $ 7,381 | $ 775 | $ 1,589 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||||||||
Net income (loss) | $ (15,366) | $ 80,796 | $ 115,409 | $ (6,840) | $ (7,613) | $ (21,340) | $ (39,236) | $ 4,308 | $ 173,999 | $ (63,881) | $ 14,345 |
Less: net income attributable to non-controlling interests | 0 | 0 | (15) | ||||||||
Net income (loss) attributable to Company | $ 173,999 | $ (63,881) | $ 14,330 | ||||||||
Denominator: | |||||||||||
Weighted average shares outstanding - basic and diluted (in shares) | 868,423,581 | 868,423,581 | 868,272,875 | 865,591,047 | 864,890,967 | 864,890,967 | 863,975,978 | 862,014,421 | 867,687,575 | 864,654,841 | 862,014,421 |
Basic and diluted income (loss) per share: | |||||||||||
Net income (loss) per common share (in dollars per share) | $ (0.02) | $ 0.09 | $ 0.13 | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.05) | $ 0 | $ 0.20 | $ (0.07) | $ 0.02 |
Share Based Compensation (Detai
Share Based Compensation (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)employee$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($) | Apr. 28, 2016shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ | $ 1,438 | $ 2,642 | ||
Unrecognized compensation expense | $ | 0 | |||
Payment for tax withholding for share-based compensation | $ | $ 994 | $ 814 | $ 0 | |
Incentive awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized to grant (up to) (in shares) | 43,000,000 | |||
Shares available for future issuance (in shares) | 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 | 2,916,667 | ||
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 | $ 0.36 | ||
Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate value of shares granted | $ | $ 1,209 | |||
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] | ||||
Number of employees affected | employee | 2 | |||
Incremental compensation cost, plan modification | $ | $ 650 | |||
Stock Awards | ||||
Granted (in shares) | 1,940,476 |
Quarterly Supplemental Financ60
Quarterly Supplemental Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total income | $ 10,740 | $ 13,003 | $ 14,884 | $ 16,835 | $ 19,675 | $ 20,356 | $ 24,836 | $ 26,597 | $ 55,462 | $ 91,464 | $ 111,837 |
Total expenses | 26,106 | (67,793) | (100,525) | 23,675 | 29,849 | 41,696 | 64,072 | 22,289 | 72,289 | 124,408 | 69,477 |
Net income (loss) | $ (15,366) | $ 80,796 | $ 115,409 | $ (6,840) | $ (7,613) | $ (21,340) | $ (39,236) | $ 4,308 | $ 173,999 | $ (63,881) | $ 14,345 |
Net income (loss) per common share, basic and diluted (in dollars per share) | $ (0.02) | $ 0.09 | $ 0.13 | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.05) | $ 0 | $ 0.20 | $ (0.07) | $ 0.02 |
Weighted average number of common shares outstanding, basic and diluted (in shares) | 868,423,581 | 868,423,581 | 868,272,875 | 865,591,047 | 864,890,967 | 864,890,967 | 863,975,978 | 862,014,421 | 867,687,575 | 864,654,841 | 862,014,421 |
Schedule III Real Estate and 61
Schedule III Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | $ 55,886 | ||||
Initial Cost, Land | 81,282 | ||||
Initial Cost, Buildings and Improvements | 240,353 | ||||
Adjustments to Land Basis | (2,119) | ||||
Adjustments to Building Basis | 55,851 | ||||
Gross amount at which carried at end of period, Land and Improvements | 79,163 | ||||
Gross amount at which carried at end of period, Buildings and Improvements | 296,204 | ||||
Gross amount at which carried at end of period, Total | $ 515,049 | $ 864,908 | $ 961,921 | 375,367 | $ 515,049 |
Accumulated Depreciation | 84,651 | 185,100 | 180,027 | 109,928 | 84,651 |
Notes to Schedule III | |||||
Construction in progress | 483 | $ 530 | |||
Cost of real estate owned | 426,746 | ||||
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Beginning balance | 515,049 | 864,908 | 961,921 | ||
Acquisitions and capital improvements | 27,740 | 1,136 | 5,154 | ||
Dispositions and write-offs | (157,872) | (28,372) | (8,321) | ||
Reduction in carryover basis in connection with separation from InvenTrust | 0 | (76,583) | 0 | ||
Asset impairments | (9,550) | (157,748) | 0 | ||
Assets transferred to InvenTrust | 0 | (88,292) | 93,846 | ||
Ending balance | 375,367 | 515,049 | 864,908 | ||
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||||
Beginning balance | 84,651 | 185,100 | 180,027 | ||
Depreciation expense | 13,430 | 20,010 | 27,785 | ||
Assets transferred to InvenTrust | 0 | (20,538) | 22,336 | ||
Dispositions and write-offs | (4,452) | (3,756) | (376) | ||
Asset impairments | 16,299 | 96,165 | 0 | ||
Ending balance | $ 109,928 | $ 84,651 | $ 185,100 | ||
Buildings and improvements | |||||
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||||
Estimated lives upon which depreciation is computed | 30 years | ||||
Furniture, fixtures, & equipment | Minimum | |||||
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||||
Estimated lives upon which depreciation is computed | 5 years | ||||
Furniture, fixtures, & equipment | Maximum | |||||
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||||
Estimated lives upon which depreciation is computed | 15 years | ||||
Retail | BUCKHORN PLAZA | Bloomsburg, PA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | 10,486 | ||||
Initial Cost, Land | 1,651 | ||||
Initial Cost, Buildings and Improvements | 11,770 | ||||
Adjustments to Building Basis | 2,122 | ||||
Gross amount at which carried at end of period, Land and Improvements | 1,651 | ||||
Gross amount at which carried at end of period, Buildings and Improvements | 13,892 | ||||
Gross amount at which carried at end of period, Total | $ 15,543 | 15,543 | |||
Accumulated Depreciation | 5,547 | 5,547 | |||
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Ending balance | 15,543 | ||||
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||||
Ending balance | 5,547 | ||||
Retail | LINCOLN MALL | Lincoln, RI | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 11,000 | ||||
Initial Cost, Buildings and Improvements | 50,395 | ||||
Adjustments to Building Basis | 6,855 | ||||
Gross amount at which carried at end of period, Land and Improvements | 11,000 | ||||
Gross amount at which carried at end of period, Buildings and Improvements | 57,250 | ||||
Gross amount at which carried at end of period, Total | 68,250 | 68,250 | |||
Accumulated Depreciation | 22,687 | 22,687 | |||
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Ending balance | 68,250 | ||||
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||||
Ending balance | 22,687 | ||||
Retail | SHERMAN PLAZA | Evanston, IL | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | 0 | ||||
Initial Cost, Land | 9,655 | ||||
Initial Cost, Buildings and Improvements | 30,982 | ||||
Adjustments to Building Basis | 9,594 | ||||
Gross amount at which carried at end of period, Land and Improvements | 9,655 | ||||
Gross amount at which carried at end of period, Buildings and Improvements | 40,576 | ||||
Gross amount at which carried at end of period, Total | 50,231 | 50,231 | |||
Accumulated Depreciation | 15,102 | 15,102 | |||
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Ending balance | 50,231 | ||||
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||||
Ending balance | 15,102 | ||||
Retail | STATE STREET MARKET | Rockford, IL | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | 9,553 | ||||
Initial Cost, Land | 3,950 | ||||
Initial Cost, Buildings and Improvements | 14,184 | ||||
Adjustments to Building Basis | 1,775 | ||||
Gross amount at which carried at end of period, Land and Improvements | 3,950 | ||||
Gross amount at which carried at end of period, Buildings and Improvements | 15,959 | ||||
Gross amount at which carried at end of period, Total | 19,909 | 19,909 | |||
Accumulated Depreciation | 6,761 | 6,761 | |||
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Ending balance | 19,909 | ||||
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||||
Ending balance | 6,761 | ||||
Retail | THE MARKET AT HILLIARD | Hilliard, OH | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | 16,000 | ||||
Initial Cost, Land | 4,432 | ||||
Initial Cost, Buildings and Improvements | 13,308 | ||||
Adjustments to Building Basis | 3,279 | ||||
Gross amount at which carried at end of period, Land and Improvements | 4,432 | ||||
Gross amount at which carried at end of period, Buildings and Improvements | 16,587 | ||||
Gross amount at which carried at end of period, Total | 21,019 | 21,019 | |||
Accumulated Depreciation | 6,647 | 6,647 | |||
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Ending balance | 21,019 | ||||
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||||
Ending balance | 6,647 | ||||
Retail | TRIANGLE CENTER | Longview, WA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | 19,847 | ||||
Initial Cost, Land | 12,770 | ||||
Initial Cost, Buildings and Improvements | 24,556 | ||||
Adjustments to Building Basis | 3,578 | ||||
Gross amount at which carried at end of period, Land and Improvements | 12,770 | ||||
Gross amount at which carried at end of period, Buildings and Improvements | 28,134 | ||||
Gross amount at which carried at end of period, Total | 40,904 | 40,904 | |||
Accumulated Depreciation | 11,982 | 11,982 | |||
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Ending balance | 40,904 | ||||
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||||
Ending balance | 11,982 | ||||
Net Lease | CITIZENS (CFG) RHODE ISLAND | Providence, RI | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 1,278 | ||||
Initial Cost, Buildings and Improvements | 3,817 | ||||
Adjustments to Land Basis | (702) | ||||
Adjustments to Building Basis | (2,947) | ||||
Gross amount at which carried at end of period, Land and Improvements | 576 | ||||
Gross amount at which carried at end of period, Buildings and Improvements | 870 | ||||
Gross amount at which carried at end of period, Total | 1,446 | 1,446 | |||
Accumulated Depreciation | 160 | 160 | |||
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Ending balance | 1,446 | ||||
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||||
Ending balance | 160 | ||||
Net Lease | ATLAS - ST PAUL | St. Paul, MN | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 3,890 | ||||
Initial Cost, Buildings and Improvements | 10,093 | ||||
Gross amount at which carried at end of period, Land and Improvements | 3,890 | ||||
Gross amount at which carried at end of period, Buildings and Improvements | 10,093 | ||||
Gross amount at which carried at end of period, Total | 13,983 | 13,983 | |||
Accumulated Depreciation | 3,621 | 3,621 | |||
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Ending balance | 13,983 | ||||
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||||
Ending balance | 3,621 | ||||
Net Lease | ATLAS-NEW ULM | New Ulm, MN | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 900 | ||||
Initial Cost, Buildings and Improvements | 9,359 | ||||
Gross amount at which carried at end of period, Land and Improvements | 900 | ||||
Gross amount at which carried at end of period, Buildings and Improvements | 9,359 | ||||
Gross amount at which carried at end of period, Total | 10,259 | 10,259 | |||
Accumulated Depreciation | 3,363 | 3,363 | |||
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Ending balance | 10,259 | ||||
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||||
Ending balance | 3,363 | ||||
Net Lease | HASKELL-ROLLING PLAINS FACILITY | Haskell, TX | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 45 | ||||
Initial Cost, Buildings and Improvements | 19,733 | ||||
Adjustments to Land Basis | (45) | ||||
Adjustments to Building Basis | (19,733) | ||||
Gross amount at which carried at end of period, Land and Improvements | 0 | ||||
Gross amount at which carried at end of period, Buildings and Improvements | 0 | ||||
Gross amount at which carried at end of period, Total | 0 | 0 | |||
Accumulated Depreciation | 0 | 0 | |||
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Ending balance | 0 | ||||
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||||
Ending balance | 0 | ||||
Net Lease | HUDSON CORRECTIONAL FACILITY | Hudson, CO | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 1,382 | ||||
Adjustments to Land Basis | (813) | ||||
Adjustments to Building Basis | 43,824 | ||||
Gross amount at which carried at end of period, Land and Improvements | 569 | ||||
Gross amount at which carried at end of period, Buildings and Improvements | 43,824 | ||||
Gross amount at which carried at end of period, Total | 44,393 | 44,393 | |||
Accumulated Depreciation | 20,266 | 20,266 | |||
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Ending balance | 44,393 | ||||
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||||
Ending balance | 20,266 | ||||
Multi-Tenant Office | TRIMBLE I | San Jose, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 12,732 | ||||
Initial Cost, Buildings and Improvements | 10,045 | ||||
Adjustments to Building Basis | 5,686 | ||||
Gross amount at which carried at end of period, Land and Improvements | 12,732 | ||||
Gross amount at which carried at end of period, Buildings and Improvements | 15,731 | ||||
Gross amount at which carried at end of period, Total | 28,463 | 28,463 | |||
Accumulated Depreciation | 1,098 | 1,098 | |||
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Ending balance | 28,463 | ||||
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||||
Ending balance | 1,098 | ||||
Multi-Tenant Office | BRIDGESIDE POINT OFFICE BLDG | Pittsburgh, PA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 1,525 | ||||
Initial Cost, Buildings and Improvements | 28,609 | ||||
Adjustments to Building Basis | 1,799 | ||||
Gross amount at which carried at end of period, Land and Improvements | 1,525 | ||||
Gross amount at which carried at end of period, Buildings and Improvements | 30,408 | ||||
Gross amount at which carried at end of period, Total | 31,933 | 31,933 | |||
Accumulated Depreciation | 12,509 | 12,509 | |||
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Ending balance | 31,933 | ||||
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||||
Ending balance | 12,509 | ||||
Other | BUERGER BROTHERS LOFTS | Denver, CO | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 3,117 | ||||
Initial Cost, Buildings and Improvements | 7,114 | ||||
Gross amount at which carried at end of period, Land and Improvements | 3,117 | ||||
Gross amount at which carried at end of period, Buildings and Improvements | 7,114 | ||||
Gross amount at which carried at end of period, Total | 10,231 | 10,231 | |||
Accumulated Depreciation | 96 | 96 | |||
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Ending balance | 10,231 | ||||
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||||
Ending balance | 96 | ||||
Other | CHAMBER LOFTS | Denver, CO | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 2,797 | ||||
Initial Cost, Buildings and Improvements | 6,388 | ||||
Adjustments to Building Basis | 0 | ||||
Gross amount at which carried at end of period, Land and Improvements | 2,797 | ||||
Gross amount at which carried at end of period, Buildings and Improvements | 6,388 | ||||
Gross amount at which carried at end of period, Total | 9,185 | 9,185 | |||
Accumulated Depreciation | 86 | 86 | |||
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Ending balance | 9,185 | ||||
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||||
Ending balance | 86 | ||||
Other | PALAZZO DEL LAGO | Orlando, FL | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 8,938 | ||||
Adjustments to Building Basis | 19 | ||||
Gross amount at which carried at end of period, Land and Improvements | 8,938 | ||||
Gross amount at which carried at end of period, Buildings and Improvements | 19 | ||||
Gross amount at which carried at end of period, Total | 8,957 | 8,957 | |||
Accumulated Depreciation | 3 | 3 | |||
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Ending balance | 8,957 | ||||
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||||
Ending balance | 3 | ||||
Other | RDU Land | Raleigh, NC | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 1,220 | ||||
Adjustments to Land Basis | (559) | ||||
Gross amount at which carried at end of period, Land and Improvements | 661 | ||||
Gross amount at which carried at end of period, Total | 661 | $ 661 | |||
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Ending balance | $ 661 |