Highlands REIT (HHDS) 10-Q 12 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 11, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	Highlands REIT, Inc.
Entity Central Index Key	0001661458
Entity Filer Category	10-Q
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Small Business	true
Entity Common Stock, Shares Outstanding		876,074,038
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Shell Company	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Investment properties
Land	$ 77,574	$ 72,630
Building and other improvements	246,211	241,897
Construction in progress	85	32
Total	323,870	314,559
Less accumulated depreciation	(53,810)	(72,822)
Net investment properties	270,060	241,737
Cash and cash equivalents	116,335	80,512
Restricted cash and escrows	4,419	3,229
Accounts and rents receivable (net of allowance of $1,154 and $1,161)	4,878	5,861
Intangible assets, net	1,229	408
Deferred costs and other assets, net	4,261	4,233
Total assets	401,182	335,980
Liabilities
Debt, net	93,385	34,953
Accounts payable and accrued expenses	9,028	11,653
Intangible liabilities, net	872	3,004
Other liabilities	2,647	2,270
Total liabilities	105,932	51,880
Commitments and contingencies
Stockholders’ Equity
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 876,074,038 and 871,688,704 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively	8,761	8,717
Additional paid-in capital	1,408,993	1,407,502
Accumulated distributions in excess of net income	(1,122,545)	(1,132,119)
Accumulated other comprehensive loss	(82)	0
Total Highlands REIT, Inc. stockholders’ equity	295,127	284,100
Non-controlling interests	123	0
Total equity	295,250	284,100
Total liabilities and equity	$ 401,182	$ 335,980

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Allowance for accounts and rent receivables	$ 1,154	$ 1,161
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	876,074,038	871,688,704
Common stock, shares outstanding	876,074,038	871,688,704

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues
Total revenues	$ 9,198,000	$ 11,649,000	$ 29,857,000	$ 33,117,000
Expenses
Property operating expenses	1,565,000	2,353,000	5,454,000	6,648,000
Real estate taxes	1,156,000	1,388,000	3,779,000	3,628,000
Depreciation and amortization	3,109,000	3,406,000	8,568,000	9,753,000
General and administrative expenses	2,373,000	2,594,000	9,838,000	9,776,000
Total expenses	8,203,000	9,741,000	27,639,000	29,805,000
Gain on sale of investment properties, net	0	12,276,000	8,841,000	12,301,000
Loss on extinguishment of debt	0	(1,199,000)	0	(1,199,000)
Income from operations	995,000	12,985,000	11,059,000	14,414,000
Interest income	581,000	81,000	1,348,000	371,000
Other income	0	23,000	0	23,000
Interest expense	(1,058,000)	(700,000)	(2,823,000)	(2,114,000)
Income before income taxes	518,000	12,389,000	9,584,000	12,694,000
Income tax benefit	0	0	0	155,000
Net income	518,000	12,389,000	9,584,000	12,849,000
Net income attributable to non-controlling interests	(10,000)	0	(10,000)	0
Net income attributable to Highlands REIT, Inc. common stockholders	$ 508,000	$ 12,389,000	$ 9,574,000	$ 12,849,000
Net income per common share, basic and diluted (in dollars per share)	$ 0	$ 0.01	$ 0.01	$ 0.01
Weighted average number of common shares outstanding, basic and diluted (in shares)	876,007,008	871,537,188	875,057,625	871,027,452
Comprehensive income
Net income	$ 518,000	$ 12,389,000	$ 9,584,000	$ 12,849,000
Unrealized loss on derivatives	(96,000)	0	(96,000)	0
Total other comprehensive loss	(96,000)	0	(96,000)	0
Comprehensive income	422,000	0	9,488,000	0
Comprehensive loss attributable to non-controlling interests	4,000	0	4,000	0
Comprehensive income attributable to Highlands REIT, Inc. common stockholders	426,000	12,389,000	9,492,000	12,849,000
Rental income
Revenues
Total revenues	8,955,000	11,446,000	29,394,000	32,392,000
Other property income
Revenues
Total revenues	$ 243,000	$ 203,000	$ 463,000	$ 725,000

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Distributions in Excess of Net Income	Total Company's Stockholders Equity	Non-controlling Interests
Beginning balance at Dec. 31, 2017	$ 258,097	$ 8,684	$ 1,406,460	$ 0	$ (1,157,047)	$ 258,097	$ 0
Beginning balance (in shares) at Dec. 31, 2017		868,423,581
Net income (loss)	(835)				(835)	(835)
Share-based compensation	1,016	$ 31	985			1,016
Share-based compensation (in shares)		3,078,425
Common stock repurchased and retired	(41)	$ (1)	(40)			(41)
Common stock repurchased and retired (in shares)		(116,334)
Ending balance (in shares) at Mar. 31, 2018		871,385,672
Ending balance at Mar. 31, 2018	258,237	$ 8,714	1,407,405	0	(1,157,882)	258,237	0
Beginning balance at Dec. 31, 2017	258,097	$ 8,684	1,406,460	0	(1,157,047)	258,097	0
Beginning balance (in shares) at Dec. 31, 2017		868,423,581
Net income (loss)	12,849
Other comprehensive loss	0
Ending balance (in shares) at Sep. 30, 2018		871,537,188
Ending balance at Sep. 30, 2018	271,971	$ 8,715	1,407,454	0	(1,144,198)	271,971	0
Beginning balance at Mar. 31, 2018	258,237	$ 8,714	1,407,405	0	(1,157,882)	258,237	0
Beginning balance (in shares) at Mar. 31, 2018		871,385,672
Net income (loss)	1,295				1,295	1,295
Share-based compensation	50	$ 1	49			50
Share-based compensation (in shares)		151,516
Ending balance (in shares) at Jun. 30, 2018		871,537,188
Ending balance at Jun. 30, 2018	259,582	$ 8,715	1,407,454	0	(1,156,587)	259,582	0
Net income (loss)	12,389				12,389	12,389
Other comprehensive loss	$ 0
Common stock repurchased and retired (in shares)	(116,334)
Ending balance (in shares) at Sep. 30, 2018		871,537,188
Ending balance at Sep. 30, 2018	$ 271,971	$ 8,715	1,407,454	0	(1,144,198)	271,971	0
Beginning balance at Dec. 31, 2018	284,100	$ 8,717	1,407,502	0	(1,132,119)	284,100	0
Beginning balance (in shares) at Dec. 31, 2018		871,688,704
Net income (loss)	(455)				(455)	(455)
Share-based compensation	1,365	$ 39	1,326			1,365
Share-based compensation (in shares)		3,900,689
Ending balance (in shares) at Mar. 31, 2019		875,589,393
Ending balance at Mar. 31, 2019	285,010	$ 8,756	1,408,828		(1,132,574)	285,010	0
Beginning balance at Dec. 31, 2018	284,100	$ 8,717	1,407,502	0	(1,132,119)	284,100	0
Beginning balance (in shares) at Dec. 31, 2018		871,688,704
Net income (loss)	9,584
Other comprehensive loss	(96)
Ending balance (in shares) at Sep. 30, 2019		876,074,038
Ending balance at Sep. 30, 2019	295,250	$ 8,761	1,408,993	(82)	(1,122,545)	295,127	123
Beginning balance at Mar. 31, 2019	285,010	$ 8,756	1,408,828		(1,132,574)	285,010	0
Beginning balance (in shares) at Mar. 31, 2019		875,589,393
Net income (loss)	9,521				9,521	9,521
Share-based compensation	100	$ 3	97			100
Share-based compensation (in shares)		285,716
Ending balance (in shares) at Jun. 30, 2019		875,875,109
Ending balance at Jun. 30, 2019	294,631	$ 8,759	1,408,925	0	(1,123,053)	294,631	0
Net income (loss)	518				508	508	10
Other comprehensive loss	(96)			(82)		(82)	(14)
Non-controlling interest equity contributions	127						127
Share-based compensation	70	$ 2	68			70
Share-based compensation (in shares)		198,929
Ending balance (in shares) at Sep. 30, 2019		876,074,038
Ending balance at Sep. 30, 2019	$ 295,250	$ 8,761	$ 1,408,993	$ (82)	$ (1,122,545)	$ 295,127	$ 123

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income	$ 9,584	$ 12,849
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,568	9,753
Amortization of above and below market leases, net	(236)	(307)
Amortization of debt discounts and financing costs	208	63
Straight-line rental income	(180)	(491)
Loss on extinguishment of debt	0	1,199
Gain on sale of investment properties, net	(8,841)	(12,301)
Non-cash stock-based compensation expense	2,220	2,249
Changes in assets and liabilities:
Accounts and rents receivable,net	(79)	(866)
Deferred costs and other assets, net	(18)	(879)
Accounts payable and accrued expenses	(1,644)	(650)
Other liabilities	281	236
Net cash flows provided by operating activities	9,863	10,855
Cash flows from investing activities:
Capital expenditures and tenant improvements	(765)	(2,299)
Investment in development	0	(1,678)
Acquisition of investment properties, net	(70,921)	(36,015)
Proceeds from sale of investment properties, net	53,163	40,722
Payment of leasing fees	(447)	(1,255)
Net cash flows used in investing activities	(18,970)	(525)
Cash flows from financing activities:
Payment of debt issuance costs	(424)	0
Proceeds from credit agreement	29,375	0
Proceeds from mortgage debt	18,684	0
Payoff of mortgage debt	0	(19,479)
Prepayment penalties on the payoff of mortgage debt	0	(1,158)
Principal payments of mortgage debt	(465)	(811)
Payment for tax withholding for share-based compensation	(1,177)	(876)
Contributions from non-controlling interests	127	0
Net cash flows provided by (used in) financing activities	46,120	(22,324)
Net increase (decrease) in cash, cash equivalents and restricted cash	37,013	(11,994)
Cash, cash equivalents and restricted cash, at beginning of period	83,741	56,007
Cash, cash equivalents and restricted cash, at end of period	$ 120,754	$ 44,013

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - Supplemental - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Supplemental disclosure of cash flows information:
Cash paid for interest	$ 2,399	$ 2,139
Cash paid for taxes	36	201
Supplemental schedule of non-cash investing and financing activities:
Non-cash accruals for capital expense and investment in development	19	1,182
Write off of rent receivables	153	0
Loss on disposal of tenant improvements	299	0
Other liabilities arising from unrealized loss on derivative instruments	96	0
Lease assets and liabilities arising from the recognition of right-of-use assets	300	0
Assumption of mortgage debt on acquired properties	$ 11,449	$ 0

Organization

Organization	9 Months Ended
	Sep. 30, 2019
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 industrial assets, retail assets, a correctional facility, multi-family assets, an office asset, 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.). Unless stated otherwise or the context otherwise requires, the terms “we,” “our” and “us” and references to the “Company” refer to Highlands and its consolidated subsidiaries. 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. Each of our assets 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 7. On August 16, 2019, we formed a limited liability company with a third-party partner (the “Corvue Venture”). The purpose of the Corvue Venture is to acquire, own and manage one multi-family investment property commonly known as Evolve at Allendale. We have an approximate 85% interest in the Corvue Venture and, in connection with the acquisition of Evolve at Allendale, we funded equity contributions to the Corvue Venture in the approximate amount of $9,000 . See Note 3 for additional information regarding the basis of presentation of the Corvue Venture which is consolidated in the accompanying condensed consolidated financial statements. In conjunction with this acquisition, the Corvue Venture secured a mortgage on the property in the amount of $18,750 . See Note 7 for additional information related to the mortgage. As of September 30, 2019 , the Company owned 19 assets and one parcel of unimproved land. As of December 31, 2018 , the Company owned 15 assets and two parcels of unimproved land.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Refer to the Company’s audited consolidated financial statements for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission on March 22, 2019, as certain note disclosures contained in such audited financial statements have been omitted from these interim condensed consolidated financial statements. Principles of Consolidation and Basis of Presentation The accompanying condensed consolidated financial statements reflect the accounts of Highlands and its consolidated subsidiaries. Highlands consolidates its wholly-owned subsidiaries and any other entities which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if Highlands is the primary beneficiary of a variable interest entity (“VIE”). The portions of the equity and net income of consolidated subsidiaries that are not attributable to the Company are presented separately as amounts attributable to non-controlling interests in our condensed consolidated financial statements. Entities which Highlands does not control and entities which are VIEs in which Highlands is not a primary beneficiary, if any, are accounted for under appropriate GAAP. Highlands' subsidiaries generally consist of limited liability companies (“LLCs”). The effects of all significant intercompany transactions have been eliminated. Variable Interest Entities A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support, or (ii) has equity investors who lack the characteristics of a controlling financial interest. Under Accounting Standards Codification (“ASC”) 810 - Consolidation, an entity that holds a variable interest in a VIE and meets certain requirements would be considered to be the primary beneficiary of the VIE and is required to consolidate the VIE in its consolidated financial statements. In order to be considered the primary beneficiary of a VIE, an entity must hold a variable interest in the VIE and have both the power to direct the activities that most significantly impact the economic performance of the VIE, and the right to receive benefits from, or the obligation to absorb losses of, the VIE that could be potentially significant to the VIE. See Note 3 for additional discussion of the Company's consolidated variable interest entity. 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 the Company 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 condensed consolidated balance sheets. Rental income lease related receivables, which include contractual amounts accrued and unpaid from tenants and accrued straight-line rents receivable, are reduced for credit losses. Such amounts are recognized as a reduction to real estate rental revenues. The Financial Accounting Standards Board (“FASB”) clarified in July 2019 that, under ASC 842, lessors can continue to recognize a reserve (i.e., allowance for uncollectible operating lease receivables) under the loss contingency guidance in ASC 450-20 after applying the collectibility guidance in ASC 842. We evaluate the collectability of lease receivables monthly using several factors including a lessee’s creditworthiness. We recognize the credit loss on lease related receivables when, in the opinion of management, collection of substantially all lease payments is not probable. When collectability is determined not probable, any lease income subsequent to recognizing the credit loss is limited to the lesser of the lease income reflected on a straight-line basis or cash collected. The adoption of ASU 2016-02 resulted in an adjustment of $92 to rental income and property operating expenses, associated with lease related receivables where collection of substantially all operating lease payments is not probable as of January 1, 2019. There were no material changes to that assessment as of September 30, 2019. 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 condensed 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 condensed consolidated balance sheets and are amortized to depreciation and amortization expense in the condensed consolidated statements of operations and comprehensive income 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 610-20, “Gains and Losses From the Derecognition of Nonfinancial Assets.” We recognize gains and losses from sales of investment properties and land when we transfer control of a property and when it is probable that we will collect substantially all of the related consideration. 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 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 condensed 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 condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018. 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. Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This ASU modifies the disclosure requirements on fair value measurements. The ASU removes the requirement to disclose: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. Our effective date for adoption of this guidance is our fiscal year beginning January 1, 2020 with early adoption permitted. We are currently evaluating the effect that this guidance will have on our condensed consolidated financial statements. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”), which established ASC 842, Leases, 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. ASC 842 allows for several practical expedients which permit the following: no reassessment of lease classification or initial direct costs; use of the standard’s effective date as the date of initial application; and no separation of 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. We elected these practical expedients, upon adoption, on January 1, 2019, using the effective date as our date of initial application and no transition adjustment was recognized. Therefore, financial information and disclosures under ASC 842 will not be provided for periods prior to January 1, 2019. The Company elected the practical expedient, among others, to not separate lease and non-lease components for all qualifying leases. Due to the new standard’s narrowed definition of initial direct costs, beginning January 1, 2019, the Company recognizes expense as incurred on certain lease origination costs previously capitalized and amortized to expense over the lease term. Any costs no longer qualifying as initial direct costs are an increase to property operating expenses in the condensed consolidated statements of operations and comprehensive income in the period of adoption and prospectively. As a lessee, beginning January 1, 2019, the Company recognized a right-of-use asset and lease liability included in deferred costs and other assets and other liabilities, respectively, with a balance as of September 30, 2019 , on the condensed consolidated balance sheets of approximately $300 , which was estimated by utilizing an average discount rate of approximately 4.5% , reflecting the Company's incremental borrowing rate. These estimates are based on the Company’s ground lease arrangement as of September 30, 2019 . As a lessor, the Company believes that substantially all of the Company's leases will continue to be classified as operating leases under the new standard and will continue to record revenues from rental properties on a straight-line basis. However, certain ground, anchor, and other long-term leases entered into or acquired have an increased likelihood of being classified as either sales-type or finance-type leases. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. ASU No. 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 Company adopted ASU No. 2016-15 effective January 1, 2018. The impact to the statements of cash flows within the condensed consolidated financial statements for the nine months ended September 30, 2019 and 2018 , respectively, was not material. In November 2016, the FASB issued ASU No. 2016-18, Classification and Presentation of Restricted Cash in the Statement of Cash Flows. ASU No. 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 Company adopted ASU No. 2016-18 effective January 1, 2018, the effects of which include presenting restricted cash and escrows with cash and cash equivalents in the condensed consolidated statements of cash flows. The Company is required to escrow cash balances for specific uses stipulated by certain of its lenders and other various agreements. As of September 30, 2019 and December 31, 2018 , the Company’s cash balances restricted for these uses were $ 4,419 and $ 3,229 , respectively. The inclusion of restricted cash increased cash, cash equivalents and restricted cash, at the beginning of the year, in the condensed consolidated statements of cash flows by $3,229 and $2,155 as of January 1, 2019 and 2018, respectively, and cash, cash equivalents and restricted cash, by $ 4,419 and $3,229 , as of September 30, 2019 and December 31, 2018 , respectively. September 30, 2019 December 31, 2018 Cash and cash equivalents $ 116,335 $ 80,512 Restricted cash 4,419 3,229 Total cash, cash equivalents and restricted cash $ 120,754 $ 83,741 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 did not have a material impact on our condensed consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting. This ASU is intended to simplify aspects of share-based compensation issued to non-employees by making the guidance consistent with the accounting for employee share-based compensation. It is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2018. The adoption of ASU No. 2018-07 on January 1, 2019 did not have a material impact on our condensed consolidated financial statements.

Acquired Properties

Acquired Properties	9 Months Ended
	Sep. 30, 2019
Asset Acquisitions [Abstract]
Acquired Properties	Acquired Properties The Company records identifiable assets and liabilities acquired at fair value. During the nine months ended September 30, 2019 , the Company acquired five multi-family assets for a gross acquisition price of $82,377 , including capitalized transaction costs of approximately $ 377 . Property Location Acquisition Date Acquisition Price The Detroit and Detroit Terraces Denver, Colorado January 8, 2019 $ 19,070 The View San Diego, California April 5, 2019 16,420 The Tennyson44 Denver, Colorado June 11, 2019 19,191 Evolve at Allendale (1) Allendale, MI August 16, 2019 27,696 $ 82,377 (1) The purchase price of this acquisition was funded by the Corvue Venture with equity contributions from its members and with debt obtained by the Corvue Venture, as further discussed in Note 7. The portion of the aggregate equity contributions funded to the Corvue Venture that is not attributable to the Company is presented separately as amounts attributable to non-controlling interests in our condensed consolidated financial statements. The purchase price allocation has been recorded as follows: The Detroit and Detroit Terraces The View The Tennyson44 Evolve at Allendale Total Land $ 3,370 $ 7,272 $ 1,533 $ 4,295 $ 16,470 Buildings and other improvements 15,006 8,862 17,410 22,460 63,738 Intangible assets, net 301 286 248 941 1,776 Total assets $ 18,677 $ 16,420 $ 19,191 $ 27,696 $ 81,984 Debt discount on mortgage assumption 393 — — — 393 Total liabilities $ 393 $ — $ — $ — $ 393 Total acquisition price $ 19,070 $ 16,420 $ 19,191 $ 27,696 $ 82,377 Consolidated VIE As of September 30, 2019, we have determined we are the primary beneficiary of one VIE - the Corvue Venture and have consolidated the operations of this entity in the accompanying condensed consolidated financial statements. We reviewed the operating agreement of the Corvue Venture in order to determine our rights and the rights of our third-party partner, including whether those rights are protective or participating. We have determined we are the primary beneficiary of the Corvue Venture because we have (a) the power to direct the activities that most significantly impact the economic performance of the Corvue Venture, (b) the obligation to absorb the losses that could be significant to the Corvue Venture and (c) the right to receive the benefits that could be significant to the Corvue Venture. Included in total assets on the Company’s condensed consolidated balance sheets as of September 30, 2019 is $28,409 related to the Corvue Venture. Included in total liabilities on the Company’s condensed consolidated balance sheets as of September 30, 2019 is $19,293 related to the Corvue Venture. The assets of the Corvue Venture may only be used to settle obligations of the Corvue Venture and the creditors of the Corvue Venture have no recourse to the general credit of the Company. During the nine months ended September 30, 2018, the Company acquired three multi-family assets for a gross acquisition price of $36,015 , including capitalized transaction costs of approximately $240 . Property Location Acquisition Date Acquisition Price The Lafayette Denver, Colorado May 15, 2018 $ 9,679 1620 Central Street Evanston, Illinois August 22, 2018 20,552 Kenilworth Court Denver, Colorado September 12, 2018 5,784 $ 36,015 The purchase price allocation has been allocated as follows: The Lafayette 1620 Central Street Kenilworth Court Total Land $ 2,457 $ 3,075 $ 2,496 $ 8,028 Buildings and other improvements 7,067 17,133 3,203 27,403 Intangible assets, net 155 344 85 584 Total acquisition price $ 9,679 $ 20,552 $ 5,784 $ 36,015

Disposed Properties

Disposed Properties	9 Months Ended
	Sep. 30, 2019
Discontinued Operations and Disposal Groups [Abstract]
Disposed Properties	Disposed Properties The following table reflects the property dispositions during the nine months ended September 30, 2019 . The Company recognized a net gain on sale of investment properties of $8,841 . Property Location Disposition Date Gross Disposition Price Sale Proceeds, Net Gain on Sale RDU land Raleigh, North Carolina May 29, 2019 $ 600 $ 554 $ 29 Lincoln Center Lincoln, Rhode Island June 21, 2019 55,750 52,609 8,812 $ 56,350 $ 53,163 $ 8,841 The following table reflects the property dispositions during the nine months ended September 30, 2018. The Company recognized a net gain on sale of investment properties of $12,301 . Property Location Disposition Date Gross Disposition Price Sale Proceeds, Net Gain on Sale Buckhorn Plaza (partial lot sale) Bloomsburg, PA February 8, 2018 $ 60 $ 60 $ 25 Rolling Plains (correctional facility) Haskell, TX August 7, 2018 3,600 3,237 3,368 Triangle Center (1) Longview, WA September 24, 2018 38,340 37,425 8,908 $ 42,000 $ 40,722 $ 12,301 (1) Mortgage debt in the amount of $19,479 was paid off with the proceeds from the sale.

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Leases	Leases Leasing as a lessor Revenue Recognition We lease multifamily properties under operating leases with terms of generally one year or less. We lease commercial properties (our net lease, office and retail segments) under operating leases with remaining lease terms that range from less than one year to ten years as of September 30, 2019 and terms that range from less than one year to twenty years as of December 31, 2018. We recognize rental income and rental abatements from our multifamily and commercial leases when earned on a straight-line basis over the lease term. Recognition of rental income commences when control of the leased space has been transferred to the tenant. We recognize cost reimbursement income from pass-through expenses on an accrual basis over the periods in which the expenses were incurred. Pass-through expenses are comprised of real estate taxes, operating expenses and common area maintenance costs which are reimbursed by tenants in accordance with specific allowable costs per tenant lease agreements. Parking revenues are derived from leases and monthly parking agreements. We recognize parking revenues from leases on a straight-line basis over the lease term and other parking revenues as earned. Upon adoption of ASU 2016-02, we elected not to bifurcate lease contracts into lease and non-lease components, since the timing and pattern of revenue is not materially different and the non-lease components are not the primary component of the lease. Accordingly, both lease and non-lease components are presented in rental income in our condensed consolidated financial statements. The adoption of ASU 2016-02 did not result in a material change to our recognition of real estate rental revenue. Lease related receivables, which include contractual amounts accrued and unpaid from tenants and accrued straight-line rents receivable, are reduced for credit losses. Such amounts are recognized as a reduction to real estate rental revenues. The FASB clarified in July 2019 that, under ASC 842, lessors can continue to recognize a reserve (i.e., allowance for uncollectible operating lease receivables) under the loss contingency guidance in ASC 450-20 after applying the collectibility guidance in ASC 842. We evaluate the collectability of lease receivables monthly using several factors including a lessee’s creditworthiness. We recognize the credit loss on lease related receivables when, in the opinion of management, collection of substantially all lease payments is not probable. When collectability is determined not probable, any lease income subsequent to recognizing the credit loss is limited to the lesser of the lease income reflected on a straight-line basis or cash collected. On August 2, 2019, we received a notice of non-renewal from The GEO Group, Inc. indicating that it will not be seeking an extension of its lease on our Hudson correctional facility asset. The lease on this asset expires on January 23, 2020. For the nine months ended September 30, 2019, 25.1% of our revenue was derived from The GEO Group, Inc.’s net lease on our Hudson correctional facility asset. A non-renewal by The GEO Group Inc. was contemplated when we recorded an impairment of the asset of $3,765 during the fourth quarter of 2018. While we will seek to re-lease or find alternative users for this asset, given the nature of the property, its location and its extended period of vacancy, we expect it will be very difficult to re-lease or find alternative users for this property. Even if we are successful in finding alternative users, we expect it will take an extended period of time to do so, if at all. Further, we believe it is unlikely that we will be able to find alternative users on similar terms. As we do not expect to find alternative users, re-lease the property, or re-lease on similar terms in the foreseeable future, we expect the non-renewal to have a material adverse effect on our financial condition, cash flows and results of operations. Notwithstanding the non-renewal, we believe we have sufficient liquidity and capital resources to fund our operations for the foreseeable future. Lease income related to the Company's operating leases is comprised of the following: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Lease income related to fixed lease payments $ 7,805 $ 9,323 $ 24,480 $ 26,401 Lease income related to variable lease payments 1,150 2,123 4,914 5,991 Other (1) 243 203 463 725 Lease income $ 9,198 $ 11,649 $ 29,857 $ 33,117 (1) For the three and nine months ended September 30, 2019 and 2018, respectively, other is primarily comprised of parking revenues and termination fees related to early lease expirations. Future Minimum Rental Income As of September 30, 2019, commercial operating leases provide for future minimum rental income, assuming no expiring leases are renewed, as follows. Apartment leases are not included as the terms are generally for one year or less. 2019 $ 5,632 2020 12,896 2021 11,034 2022 8,647 2023 8,128 Thereafter 26,569 Total $ 72,906 As of December 31, 2018, commercial operating leases provide for future minimum rental income assuming no expiring leases are renewed, as follows: 2019 $ 27,551 2020 17,323 2021 14,014 2022 11,423 2023 10,358 Thereafter 36,357 Total $ 117,026 Leasing as a Lessee We lease a portion of the land underlying one of our retail assets, Sherman Plaza, from a third party through a ground lease covering such land with a lease term expiring in October 2042. Upon adoption of ASU 2016-02, we recognized a right of use asset (included in deferred costs and other assets) and lease liability (included in other liabilities). At September 30, 2019, the balances were $300 and were recorded in the condensed consolidated balance sheets. We used a discount rate of approximately 4.5% , reflecting the Company's incremental borrowing rate. The following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments on our operating ground lease at September 30, 2019 and a reconciliation of those cash flows to the operating lease liability at September 30, 2019. 2019 $ 5 2020 21 2021 21 2022 21 2023 21 2024 21 Thereafter 373 483 Imputed interest (183 ) Lease liability $ 300 The following table sets forth our scheduled obligations for future minimum payments on our operating ground lease at December 31, 2018. 2019 $ 21 2020 21 2021 21 2022 21 2023 21 2024 21 Thereafter 373 Total $ 499
Leases	Leases Leasing as a lessor Revenue Recognition We lease multifamily properties under operating leases with terms of generally one year or less. We lease commercial properties (our net lease, office and retail segments) under operating leases with remaining lease terms that range from less than one year to ten years as of September 30, 2019 and terms that range from less than one year to twenty years as of December 31, 2018. We recognize rental income and rental abatements from our multifamily and commercial leases when earned on a straight-line basis over the lease term. Recognition of rental income commences when control of the leased space has been transferred to the tenant. We recognize cost reimbursement income from pass-through expenses on an accrual basis over the periods in which the expenses were incurred. Pass-through expenses are comprised of real estate taxes, operating expenses and common area maintenance costs which are reimbursed by tenants in accordance with specific allowable costs per tenant lease agreements. Parking revenues are derived from leases and monthly parking agreements. We recognize parking revenues from leases on a straight-line basis over the lease term and other parking revenues as earned. Upon adoption of ASU 2016-02, we elected not to bifurcate lease contracts into lease and non-lease components, since the timing and pattern of revenue is not materially different and the non-lease components are not the primary component of the lease. Accordingly, both lease and non-lease components are presented in rental income in our condensed consolidated financial statements. The adoption of ASU 2016-02 did not result in a material change to our recognition of real estate rental revenue. Lease related receivables, which include contractual amounts accrued and unpaid from tenants and accrued straight-line rents receivable, are reduced for credit losses. Such amounts are recognized as a reduction to real estate rental revenues. The FASB clarified in July 2019 that, under ASC 842, lessors can continue to recognize a reserve (i.e., allowance for uncollectible operating lease receivables) under the loss contingency guidance in ASC 450-20 after applying the collectibility guidance in ASC 842. We evaluate the collectability of lease receivables monthly using several factors including a lessee’s creditworthiness. We recognize the credit loss on lease related receivables when, in the opinion of management, collection of substantially all lease payments is not probable. When collectability is determined not probable, any lease income subsequent to recognizing the credit loss is limited to the lesser of the lease income reflected on a straight-line basis or cash collected. On August 2, 2019, we received a notice of non-renewal from The GEO Group, Inc. indicating that it will not be seeking an extension of its lease on our Hudson correctional facility asset. The lease on this asset expires on January 23, 2020. For the nine months ended September 30, 2019, 25.1% of our revenue was derived from The GEO Group, Inc.’s net lease on our Hudson correctional facility asset. A non-renewal by The GEO Group Inc. was contemplated when we recorded an impairment of the asset of $3,765 during the fourth quarter of 2018. While we will seek to re-lease or find alternative users for this asset, given the nature of the property, its location and its extended period of vacancy, we expect it will be very difficult to re-lease or find alternative users for this property. Even if we are successful in finding alternative users, we expect it will take an extended period of time to do so, if at all. Further, we believe it is unlikely that we will be able to find alternative users on similar terms. As we do not expect to find alternative users, re-lease the property, or re-lease on similar terms in the foreseeable future, we expect the non-renewal to have a material adverse effect on our financial condition, cash flows and results of operations. Notwithstanding the non-renewal, we believe we have sufficient liquidity and capital resources to fund our operations for the foreseeable future. Lease income related to the Company's operating leases is comprised of the following: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Lease income related to fixed lease payments $ 7,805 $ 9,323 $ 24,480 $ 26,401 Lease income related to variable lease payments 1,150 2,123 4,914 5,991 Other (1) 243 203 463 725 Lease income $ 9,198 $ 11,649 $ 29,857 $ 33,117 (1) For the three and nine months ended September 30, 2019 and 2018, respectively, other is primarily comprised of parking revenues and termination fees related to early lease expirations. Future Minimum Rental Income As of September 30, 2019, commercial operating leases provide for future minimum rental income, assuming no expiring leases are renewed, as follows. Apartment leases are not included as the terms are generally for one year or less. 2019 $ 5,632 2020 12,896 2021 11,034 2022 8,647 2023 8,128 Thereafter 26,569 Total $ 72,906 As of December 31, 2018, commercial operating leases provide for future minimum rental income assuming no expiring leases are renewed, as follows: 2019 $ 27,551 2020 17,323 2021 14,014 2022 11,423 2023 10,358 Thereafter 36,357 Total $ 117,026 Leasing as a Lessee We lease a portion of the land underlying one of our retail assets, Sherman Plaza, from a third party through a ground lease covering such land with a lease term expiring in October 2042. Upon adoption of ASU 2016-02, we recognized a right of use asset (included in deferred costs and other assets) and lease liability (included in other liabilities). At September 30, 2019, the balances were $300 and were recorded in the condensed consolidated balance sheets. We used a discount rate of approximately 4.5% , reflecting the Company's incremental borrowing rate. The following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments on our operating ground lease at September 30, 2019 and a reconciliation of those cash flows to the operating lease liability at September 30, 2019. 2019 $ 5 2020 21 2021 21 2022 21 2023 21 2024 21 Thereafter 373 483 Imputed interest (183 ) Lease liability $ 300 The following table sets forth our scheduled obligations for future minimum payments on our operating ground lease at December 31, 2018. 2019 $ 21 2020 21 2021 21 2022 21 2023 21 2024 21 Thereafter 373 Total $ 499

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses	9 Months Ended
	Sep. 30, 2019
Payables and Accruals [Abstract]
Accounts Payable and Accrued Expenses	Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following: September 30, 2019 December 31, 2018 Accrued real estate taxes $ 5,229 $ 5,669 Accrued compensation 2,462 3,232 Accrued interest payable 401 119 Other accrued expenses 936 2,633 $ 9,028 $ 11,653

Debt

Debt	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Mortgage Loans, Net	Total debt outstanding as of September 30, 2019 and December 31, 2018 , net of unamortized deferred financing costs and debt discounts, was $93,385 and $34,953 , respectively, and had a weighted average interest rate of 4.13% and 4.74% per annum, respectively. Deferred financing costs, net, as of September 30, 2019 and December 31, 2018 were $1,433 and $490 , respectively. Debt discounts, as of September 30, 2019 and December 31, 2018 were $360 and $0 , respectively. As of September 30, 2019 , scheduled maturities for the Company’s outstanding mortgage indebtedness and the credit facility had various due dates through August 2027, as follows: For the year ended December 31, As of September 30, 2019 Weighted average interest rate 2019 $ — — % 2020 — — % 2021 — — % 2022 9,217 5.24% (0) 2023 18,750 3.27% (1) Thereafter 67,211 4.21% (0) Total $ 95,178 4.13% (0) (1) See below for discussion of the swap agreement entered into with the mortgage loan obtained in connection with the acquisition of the Evolve at Allendale asset. The weighted average interest rate reflected is the strike rate. The Company's ability to pay off the 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 mortgage 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. Some of the mortgage loans require compliance with certain covenants, such as debt service ratios, investment restrictions and distribution limitations. As of September 30, 2019 and December 31, 2018 , the Company is in compliance with such covenants in all material respects. On January 8, 2019, the Company assumed a principal mortgage loan amount of $11,089 , net of a debt discount of $360 in connection with the acquisition of The Detroit and Detroit Terraces. The contractual rate and terms of the assumed debt was marked to market as of the acquisition date. According to the terms of the note agreement, the contractual fixed interest rate is 3.99% and payments are interest only through September 30, 2022 . The maturity date of the mortgage loan is on August 31, 2027. On February 15, 2019, the Company entered into a Credit Agreement (the “Credit Agreement”) by and among the Company, as borrower, The Huntington National Bank (“HNB”), individually and as administrative agent, issuing lender, lead arranger, book manager and syndication agent, and certain other lenders thereunder.The Credit Agreement provides for (i) a secured revolving credit facility (the “Revolving Credit Facility”) with revolving commitments in an aggregate principal amount of $50,000 , including a letter of credit subfacility for 10% of the then available revolving commitments, and (ii) a secured term loan credit facility (the “Term Loan Facility” and together with the Revolving Credit Facility, the “Credit Facility”) with term loan commitments in an aggregate principal amount of $50,000 . The Credit Agreement provides that, subject to customary conditions, including obtaining lender commitments and compliance with its financial covenants under the Credit Agreement, the Company may seek to increase the aggregate lending commitments under the Credit Agreement by up to $100,000 , with such increase in total lending commitments to be allocated to increasing the revolving commitments and/or establishing one or more new tranches of term loans at the Company’s request. The Company currently expects to use borrowings under the Credit Facility for working capital purposes, repayment of indebtedness, capital expenditures, lease up costs, redevelopment costs, property acquisitions and other general corporate purposes. In connection with entering into the Credit Facility, the Company borrowed $30,000 under the Term Loan Facility as of September 30, 2019. The Revolving Credit Facility has a maturity date of February 15, 2022 , but can be extended at the Company’s option for two additional one -year periods conditioned on, among other things, payment of a 15-basis points extension fee upon each such extension. The Term Loan Facility has a maturity date of February 15, 2024. The Company is permitted to prepay all or any portion of the loans under the Credit Facility prior to maturity without premium or penalty, subject to reimbursement of any London Interbank Offered Rate (“LIBOR”) breakage costs of the lenders. The interest rates applicable to loans under the Revolving Credit Facility are, at the Company’s option, equal to either a base rate plus a margin ranging from 1.0% to 1.3% per annum or LIBOR plus a margin ranging from 2.0% to 2.3% per annum based on the debt to assets ratio of the Company and its consolidated subsidiaries. The interest rates applicable to loans under the Term Loan Facility are, at the Company’s option, equal to either a base rate plus a margin ranging from 0.9% to 1.2% per annum or LIBOR plus a margin ranging from 1.9% to 2.2% per annum based on the debt to assets ratio of the Company and its consolidated subsidiaries. The Company has chosen the second option for the interest rate applicable to the current loan under the term loan facility during the nine months ended September 30, 2019. In addition, the Company will pay (a) an unused facility fee on the revolving commitments under the Revolving Credit Facility ranging from 0.15% to 0.25% per annum, calculated daily based on the average unused commitments under the Revolving Credit Facility, and (b) with respect to any amount of the Term Loan Facility that remains undrawn during the period beginning thirty (30) days after the execution of the Credit Agreement and ending one year after execution of the Credit Agreement, an unused facility fee of 0.25% per annum, calculated daily based on the undrawn portion of the Term Loan Facility. The Credit Facility is guaranteed, jointly and severally, by certain subsidiaries of the Company (the “Subsidiary Guarantors”), and is secured by a pledge of equity interests in the Subsidiary Guarantors. The Credit Agreement contains customary covenants that, among other things, restrict, subject to certain exceptions, the ability of the Company and its subsidiaries to incur indebtedness, grant liens on their assets, make certain types of investments, engage in acquisitions, mergers or consolidations, sell assets, enter into hedging transactions, enter into certain transactions with affiliates and make distributions. The Credit Agreement requires the Company to comply with financial covenants to be tested quarterly, including a maximum debt to asset value ratio, a minimum fixed charge coverage ratio, a minimum tangible net worth, a maximum variable rate debt to asset value ratio, a prohibition on recourse debt and a maximum amount of cross-collateralized non-recourse debt. The Credit Agreement also contains certain covenants around the value and diversity of the properties owned by the Subsidiary Guarantors. The Credit Agreement also contains certain customary events of default, including the failure to make timely payments under the Credit Facility or other material indebtedness, the failure to satisfy certain covenants and specified events of bankruptcy and insolvency. The Company obtained a mortgage loan in the principal amount of $18,750 in connection with the acquisition of Evolve at Allendale on August 16, 2019. The Company entered into a swap agreement with respect to the loan, effective through its September 1, 2023 maturity date, to swap the variable interest rate to a fixed rate of approximately 3.27% per annum. The interest rate is based on the LIBOR plus the applicable spread. The effective interest rate as of September 30, 2019, is approximately 3.95% .

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2019
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. Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis Risk Management Objective of Using Derivatives The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of debt funding and, to a limited extent, the use of derivative financial instruments. Specifically, the Company may enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments, described below, are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company may use interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. We do not enter into derivative financial instruments for speculative purposes. As of September 30, 2019, we had one derivative financial instrument designated as a cash flow hedge, with a notional amount of $18,750 and a maturity date of September 1, 2023. This derivative is an interest rate swap that is measured at fair value on a recurring basis. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income or loss on the condensed consolidated balance sheets and is subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. The amount recorded as other comprehensive loss related to the unrealized loss on our derivative financial instrument was $96 for the three and nine months ended September 30, 2019. The Company had no derivative instruments during the three and nine months ended September 20, 2018. Realized gains and losses will be recognized as they accrue in interest expense. Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on our variance rate debt. The Company estimates that $23 will be reclassified as a decrease to interest expense over the next twelve months. The table below presents the fair value of the Company’s derivative financial instrument as well as its classification on the condensed consolidated balance sheets as of September 30, 2019. The Company did not have any derivative instruments as of December 31, 2018. September 30, 2019 Level 1 Level 2 Level 3 Total Derivative financial instruments designated as cash flow hedges: Classified as liabilities in “Other liabilities” $ — $ 96 $ — $ 96 The fair value of our derivative financial instrument was determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of the derivative financial instrument. This analysis reflected the contractual terms of the derivative, including the period to maturity, and used observable market-based inputs, including interest rate market data and implied volatilities in such interest rates. While it was determined that the majority of the inputs used to value the derivative fall within Level 2 of the fair value hierarchy under authoritative accounting guidance, the credit valuation adjustments associated with the derivative also utilized Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default. However, as of September 30, 2019, the significance of the impact of the credit valuation adjustments on the overall valuation of the derivative financial instrument was assessed, and it was determined that these adjustments were not significant to the overall valuation of the derivative financial instrument. As a result, it was determined that the derivative financial instrument in its entirety should be classified in Level 2 of the fair value hierarchy. Non-Recurring Measurements During the nine months ended September 30, 2019 and 2018 , the Company did not identify any impairment triggers that required the assets to be measured at fair value. Financial Instruments Not Measured at Fair Value The table below represents the fair value of financial instruments presented at carrying values in the condensed consolidated financial statements as of September 30, 2019 and as of December 31, 2018 . September 30, 2019 December 31, 2018 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Debt $ 93,385 $ 96,784 $ 34,953 $ 35,222 The Company estimates the fair value of its debt instruments using a weighted average market effective interest rate of 3.54% and 4.70% per annum as of September 30, 2019 and December 31, 2018, respectively. The Company estimates the fair value of its mortgage loans and term loan facility 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 mortgage loans and term loan facility 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 3.22% to 3.91% as of September 30, 2019 . For certain debt, the Company estimates the fair value of debt instruments based on the fair value of the underlying collateral. The Company has determined that its debt instrument valuations are classified in Level 2 of the fair value hierarchy.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company is taxed and operates in a manner that will allow the Company to continue to qualify as a REIT for U.S. federal income tax purposes. 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 to stockholders. A REIT is subject to a number of organizational and operational requirements, including a requirement that it 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. Although the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and U.S. federal income and excise taxes on its undistributed income. During the three and nine months ended September 30, 2019 , no income tax benefit or expense was included on the condensed consolidated statements of operations and comprehensive income. During the three and nine months ended September 30, 2018, an income tax benefit of $0 and $155 , respectively, was included on the condensed consolidated statement of operations.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting GAAP has established guidance for reporting information about a company’s operating segments. The Company monitors and reviews its segment reporting structure in accordance with guidance under FASB ASC Topic 280, Segment Reporting (“ASC 280”) to determine whether any changes have occurred that would impact its reportable segments. During the year ended December 31, 2018, as a result of the evolution of the Company’s operations and asset acquisitions, the Company has determined it no longer operates in three operating segments. The Company has concluded its multi-family assets now represent one operating segment. As a result of this change in the Company’s segment reporting, the Company currently has four business segments, consisting of (i) net lease, (ii) retail, (iii) multi-tenant office and (iv) multi-family. The net lease segment consists of single-tenant office and industrial assets, as well as the Company’s correctional facility. The Company’s unimproved land assets are presented below in Other. The following table summarizes net property operations by segment for the three months ended September 30, 2019 . Total Net Lease Retail Multi-Tenant Multi-family Other Rental income $ 8,955 $ 3,083 $ 2,740 $ 754 $ 2,360 $ 18 Other property income 243 — 111 — 132 — Total income 9,198 3,083 2,851 754 2,492 18 Operating expenses 2,721 174 1,280 184 975 108 Net operating income (loss) $ 6,477 $ 2,909 $ 1,571 $ 570 $ 1,517 $ (90 ) Non-allocated expenses (a) (5,482 ) Other income and expenses (b) (477 ) Net income attributable to non-controlling interests (10 ) Net income attributable to Highlands REIT, Inc. common stockholders $ 508 (a) Non-allocated expenses consist of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of interest income and interest expense. The following table summarizes net property operations by segment for the three months ended September 30, 2018 . Total Net Lease Retail Multi-Tenant Multi-family Other Rental income $ 11,446 $ 3,182 $ 6,182 $ 1,446 $ 636 $ — Other property income 203 — 13 92 98 — Total income 11,649 3,182 6,195 1,538 734 — Operating expenses 3,741 98 2,524 685 284 150 Net operating income (loss) $ 7,908 $ 3,084 $ 3,671 $ 853 $ 450 $ (150 ) Non-allocated expenses (a) (6,000 ) Other income and expenses (b) (596 ) Gain on sale of investment properties (c) 12,276 Loss on extinguishment of debt (d) (1,199 ) Net income $ 12,389 (a) Non-allocated expenses consist of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of interest income, other income and interest expense. (c) Gain on the sale of investment properties is related to one retail asset and one other asset. (d) Loss on extinguishment of debt is related to prepayment penalties on the payoff of mortgage debt. The following table summarizes net property operations by segment for the nine months ended September 30, 2019 . Total Net Lease Retail Multi-Tenant Multi-family Other Rental income $ 29,394 $ 9,433 $ 12,557 $ 2,238 $ 5,166 $ — Other property income 463 — 135 — 328 — Total income 29,857 9,433 12,692 2,238 5,494 — Operating expenses 9,233 475 5,605 542 2,163 448 Net operating income (loss) $ 20,624 $ 8,958 $ 7,087 $ 1,696 $ 3,331 $ (448 ) Non-allocated expenses (a) (18,406 ) Other income and expenses (b) (1,475 ) Gain on sale of investment properties (c) 8,841 Net income attributable to non-controlling interests (10 ) Net income attributable to Highlands REIT, Inc. common stockholders $ 9,574 Balance Sheet Data Real estate assets, net (d) $ 271,289 $ 35,146 $ 66,950 $ 26,533 $ 133,708 $ 8,952 Non-segmented assets (e) 129,893 Total assets $ 401,182 Capital expenditures $ 765 $ — $ 315 $ — $ 450 $ — (a) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of interest income and interest expense. (c) Gain on the sale of investment properties is related to one retail asset and one land parcel. (d) Real estate assets include intangible assets, net of amortization. (e) Non-segmented assets include cash and cash equivalents, restricted cash and escrows, accounts and rents receivable and deferred costs and other assets. The following table summarizes net property operations by segment for the nine months ended September 30, 2018 . Total Net Lease Retail Multi-Tenant Multi-family Other Rental income $ 32,392 $ 9,542 $ 18,255 $ 3,292 $ 1,303 $ — Other property income 725 — 32 432 261 — Total income 33,117 9,542 18,287 3,724 1,564 — Operating expenses 10,276 458 7,201 2,064 667 (114 ) Net operating income $ 22,841 $ 9,084 $ 11,086 $ 1,660 $ 897 $ 114 Non-allocated expenses (a) (19,529 ) Other income and expenses (b) (1,565 ) Gain on sale of investment properties (c) 12,301 Loss on extinguishment of debt (d) (1,199 ) Net income $ 12,849 Balance Sheet Data Real estate assets, net (e) $ 268,991 $ 40,730 $ 116,462 $ 47,470 $ 54,651 $ 9,678 Non-segmented assets (f) 53,793 Total assets $ 322,784 Capital expenditures $ 3,977 $ — $ 1,835 $ 2,076 $ 9 $ 57 (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 benefit. (c) Gain on the sale of investment properties is related to one retail asset, a parcel of one retail asset and one other asset. (d) Loss on extinguishment of debt is related to prepayment penalties on the payoff of mortgage debt. (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.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per common share is calculated by dividing net income attributable to Highlands REIT, Inc. common stockholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share is calculated by dividing net income attributable to Highlands REIT, Inc. 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. The following table reconciles net income attributable to the Company to basic and diluted EPS (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net income attributable to Highlands REIT, Inc. common stockholders $ 508 $ 12,389 $ 9,574 $ 12,849 Denominator: Weighted average number of common shares outstanding - basic and diluted 876,007,008 871,537,188 875,057,625 871,027,452 Basic and diluted earnings per share: Net income per common share $ 0.00 $ 0.01 $ 0.01 $ 0.01

Share Based Compensation

Share Based Compensation	9 Months Ended
	Sep. 30, 2019
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. For the nine months ended September 30, 2019 , the Company granted 6,100,002 shares of common stock with an aggregate value of $2,135 based on an estimated net asset value per share of $0.35 . Additionally, for accounting purposes, the Company granted shares with an aggregate value of $125 that will vest in August, 2020, subject to the applicable executive's continued employment with the Company through the vest date. During the nine months ended September 30, 2018, the Company granted 5,772,728 of fully vested shares of common stock with an aggregate value of $1,905 based on an estimated net asset value per share of $0.33 . 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. As of September 30, 2019 , 17,465,437 shares were available for future issuance under the Incentive Award Plan. A summary of the Company's stock awards activity as of September 30, 2019 is as follows: Non-Vested stock awards Stock Awards Weighted Average Grant Date Fair Value Balance at January 1, 2019 $ 2,121,212 $ 0.33 Granted 6,100,002 0.35 Vested (7,742,859 ) 0.35 Other (1) (121,212 ) — Balance at September 30, 2019 $ 357,143 $ 0.35 (1) Represents the change in the number of shares granted in 2018 based on an estimated net asset value per share of $0.33 and the actual shares vested in 2019 based on an estimated net asset value per share of $0.35 . For the three months ended September 30, 2019 and 2018 , the Company recognized stock-based compensation expense of $43 and $196 , respectively, related to the Incentive Award Plan and was recorded in the condensed consolidated financial statements. For the nine months ended September 30, 2019 and 2018 , the Company recognized stock-based compensation expense of $2,220 and $2,249 . At September 30, 2019 , there was approximately $70 of estimated unrecognized compensation expense related to these awards, which is expected to be recognized through August 1, 2020. For the nine months ended September 30, 2019 and 2018 , the Company paid $1,177 and $876 , respectively, related to tax withholding for share-based compensation. The Company repurchased and retired 116,334 of fully vested shares previously awarded to an employee pursuant to a separation agreement during the three months ended September 30, 2018 . The shares were repurchased for $0.33 per share, which was based on the Company's announced estimated share value as of December 31, 2017.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
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. 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 a failure by InvenTrust or MB REIT (Florida), Inc., a subsidiary of the Company, to qualify as a REIT for any taxable year ending on or before December 31, 2016.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On October 24, 2019, the Company, through The Muse Owner, LLC, a wholly-owned subsidiary of the Company, completed the purchase of certain real property and improvements located at 2270 South University Boulevard, Denver, Colorado for a gross purchase price of $48.7 million , exclusive of closing costs. The seller is not affiliated with the Company.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Principles of Consolidation and Basis of Presentation	Principles of Consolidation and Basis of Presentation The accompanying condensed consolidated financial statements reflect the accounts of Highlands and its consolidated subsidiaries. Highlands consolidates its wholly-owned subsidiaries and any other entities which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if Highlands is the primary beneficiary of a variable interest entity (“VIE”). The portions of the equity and net income of consolidated subsidiaries that are not attributable to the Company are presented separately as amounts attributable to non-controlling interests in our condensed consolidated financial statements. Entities which Highlands does not control and entities which are VIEs in which Highlands is not a primary beneficiary, if any, are accounted for under appropriate GAAP. Highlands' subsidiaries generally consist of limited liability companies (“LLCs”). The effects of all significant intercompany transactions have been eliminated.
Variable Interest Entities	Variable Interest Entities A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support, or (ii) has equity investors who lack the characteristics of a controlling financial interest. Under Accounting Standards Codification (“ASC”) 810 - Consolidation, an entity that holds a variable interest in a VIE and meets certain requirements would be considered to be the primary beneficiary of the VIE and is required to consolidate the VIE in its consolidated financial statements. In order to be considered the primary beneficiary of a VIE, an entity must hold a variable interest in the VIE and have both the power to direct the activities that most significantly impact the economic performance of the VIE, and the right to receive benefits from, or the obligation to absorb losses of, the VIE that could be potentially significant to the VIE. See Note 3 for additional discussion of the Company's consolidated variable interest entity.
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 the Company 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 condensed consolidated balance sheets. Rental income lease related receivables, which include contractual amounts accrued and unpaid from tenants and accrued straight-line rents receivable, are reduced for credit losses. Such amounts are recognized as a reduction to real estate rental revenues. The Financial Accounting Standards Board (“FASB”) clarified in July 2019 that, under ASC 842, lessors can continue to recognize a reserve (i.e., allowance for uncollectible operating lease receivables) under the loss contingency guidance in ASC 450-20 after applying the collectibility guidance in ASC 842. We evaluate the collectability of lease receivables monthly using several factors including a lessee’s creditworthiness. We recognize the credit loss on lease related receivables when, in the opinion of management, collection of substantially all lease payments is not probable. When collectability is determined not probable, any lease income subsequent to recognizing the credit loss is limited to the lesser of the lease income reflected on a straight-line basis or cash collected. The adoption of ASU 2016-02 resulted in an adjustment of $92 to rental income and property operating expenses, associated with lease related receivables where collection of substantially all operating lease payments is not probable as of January 1, 2019. There were no material changes to that assessment as of September 30, 2019. 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	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 condensed 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 condensed consolidated balance sheets and are amortized to depreciation and amortization expense in the condensed consolidated statements of operations and comprehensive income 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 610-20, “Gains and Losses From the Derecognition of Nonfinancial Assets.” We recognize gains and losses from sales of investment properties and land when we transfer control of a property and when it is probable that we will collect substantially all of the related consideration. 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 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 condensed 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.
Recently Issued Accounting Pronouncements and Recently Adopted Accounting Pronouncements	Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This ASU modifies the disclosure requirements on fair value measurements. The ASU removes the requirement to disclose: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. Our effective date for adoption of this guidance is our fiscal year beginning January 1, 2020 with early adoption permitted. We are currently evaluating the effect that this guidance will have on our condensed consolidated financial statements. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”), which established ASC 842, Leases, 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. ASC 842 allows for several practical expedients which permit the following: no reassessment of lease classification or initial direct costs; use of the standard’s effective date as the date of initial application; and no separation of 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. We elected these practical expedients, upon adoption, on January 1, 2019, using the effective date as our date of initial application and no transition adjustment was recognized. Therefore, financial information and disclosures under ASC 842 will not be provided for periods prior to January 1, 2019. The Company elected the practical expedient, among others, to not separate lease and non-lease components for all qualifying leases. Due to the new standard’s narrowed definition of initial direct costs, beginning January 1, 2019, the Company recognizes expense as incurred on certain lease origination costs previously capitalized and amortized to expense over the lease term. Any costs no longer qualifying as initial direct costs are an increase to property operating expenses in the condensed consolidated statements of operations and comprehensive income in the period of adoption and prospectively. As a lessee, beginning January 1, 2019, the Company recognized a right-of-use asset and lease liability included in deferred costs and other assets and other liabilities, respectively, with a balance as of September 30, 2019 , on the condensed consolidated balance sheets of approximately $300 , which was estimated by utilizing an average discount rate of approximately 4.5% , reflecting the Company's incremental borrowing rate. These estimates are based on the Company’s ground lease arrangement as of September 30, 2019 . As a lessor, the Company believes that substantially all of the Company's leases will continue to be classified as operating leases under the new standard and will continue to record revenues from rental properties on a straight-line basis. However, certain ground, anchor, and other long-term leases entered into or acquired have an increased likelihood of being classified as either sales-type or finance-type leases. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. ASU No. 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 Company adopted ASU No. 2016-15 effective January 1, 2018. The impact to the statements of cash flows within the condensed consolidated financial statements for the nine months ended September 30, 2019 and 2018 , respectively, was not material. In November 2016, the FASB issued ASU No. 2016-18, Classification and Presentation of Restricted Cash in the Statement of Cash Flows. ASU No. 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 Company adopted ASU No. 2016-18 effective January 1, 2018, the effects of which include presenting restricted cash and escrows with cash and cash equivalents in the condensed consolidated statements of cash flows. The Company is required to escrow cash balances for specific uses stipulated by certain of its lenders and other various agreements. As of September 30, 2019 and December 31, 2018 , the Company’s cash balances restricted for these uses were $ 4,419 and $ 3,229 , respectively. The inclusion of restricted cash increased cash, cash equivalents and restricted cash, at the beginning of the year, in the condensed consolidated statements of cash flows by $3,229 and $2,155 as of January 1, 2019 and 2018, respectively, and cash, cash equivalents and restricted cash, by $ 4,419 and $3,229 , as of September 30, 2019 and December 31, 2018 , respectively. September 30, 2019 December 31, 2018 Cash and cash equivalents $ 116,335 $ 80,512 Restricted cash 4,419 3,229 Total cash, cash equivalents and restricted cash $ 120,754 $ 83,741 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 did not have a material impact on our condensed consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting. This ASU is intended to simplify aspects of share-based compensation issued to non-employees by making the guidance consistent with the accounting for employee share-based compensation. It is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2018. The adoption of ASU No. 2018-07 on January 1, 2019 did not have a material impact on our condensed consolidated financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Schedule of Cash and Restricted Cash	September 30, 2019 December 31, 2018 Cash and cash equivalents $ 116,335 $ 80,512 Restricted cash 4,419 3,229 Total cash, cash equivalents and restricted cash $ 120,754 $ 83,741

Acquired Properties (Tables)

Acquired Properties (Tables)	9 Months Ended
	Sep. 30, 2019
Asset Acquisitions [Abstract]
Schedule of Real Estate Acquired	Property Location Acquisition Date Acquisition Price The Detroit and Detroit Terraces Denver, Colorado January 8, 2019 $ 19,070 The View San Diego, California April 5, 2019 16,420 The Tennyson44 Denver, Colorado June 11, 2019 19,191 Evolve at Allendale (1) Allendale, MI August 16, 2019 27,696 $ 82,377 (1) The purchase price of this acquisition was funded by the Corvue Venture with equity contributions from its members and with debt obtained by the Corvue Venture, as further discussed in Note 7. The portion of the aggregate equity contributions funded to the Corvue Venture that is not attributable to the Company is presented separately as amounts attributable to non-controlling interests in our condensed consolidated financial statements. The purchase price allocation has been recorded as follows: The Detroit and Detroit Terraces The View The Tennyson44 Evolve at Allendale Total Land $ 3,370 $ 7,272 $ 1,533 $ 4,295 $ 16,470 Buildings and other improvements 15,006 8,862 17,410 22,460 63,738 Intangible assets, net 301 286 248 941 1,776 Total assets $ 18,677 $ 16,420 $ 19,191 $ 27,696 $ 81,984 Debt discount on mortgage assumption 393 — — — 393 Total liabilities $ 393 $ — $ — $ — $ 393 Total acquisition price $ 19,070 $ 16,420 $ 19,191 $ 27,696 $ 82,377 Property Location Acquisition Date Acquisition Price The Lafayette Denver, Colorado May 15, 2018 $ 9,679 1620 Central Street Evanston, Illinois August 22, 2018 20,552 Kenilworth Court Denver, Colorado September 12, 2018 5,784 $ 36,015 The purchase price allocation has been allocated as follows: The Lafayette 1620 Central Street Kenilworth Court Total Land $ 2,457 $ 3,075 $ 2,496 $ 8,028 Buildings and other improvements 7,067 17,133 3,203 27,403 Intangible assets, net 155 344 85 584 Total acquisition price $ 9,679 $ 20,552 $ 5,784 $ 36,015

Disposed Properties (Tables)

Disposed Properties (Tables)	9 Months Ended
	Sep. 30, 2019
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Disposal Group	The following table reflects the property dispositions during the nine months ended September 30, 2019 . The Company recognized a net gain on sale of investment properties of $8,841 . Property Location Disposition Date Gross Disposition Price Sale Proceeds, Net Gain on Sale RDU land Raleigh, North Carolina May 29, 2019 $ 600 $ 554 $ 29 Lincoln Center Lincoln, Rhode Island June 21, 2019 55,750 52,609 8,812 $ 56,350 $ 53,163 $ 8,841 The following table reflects the property dispositions during the nine months ended September 30, 2018. The Company recognized a net gain on sale of investment properties of $12,301 . Property Location Disposition Date Gross Disposition Price Sale Proceeds, Net Gain on Sale Buckhorn Plaza (partial lot sale) Bloomsburg, PA February 8, 2018 $ 60 $ 60 $ 25 Rolling Plains (correctional facility) Haskell, TX August 7, 2018 3,600 3,237 3,368 Triangle Center (1) Longview, WA September 24, 2018 38,340 37,425 8,908 $ 42,000 $ 40,722 $ 12,301 (1) Mortgage debt in the amount of $19,479 was paid off with the proceeds from the sale.

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Lease Income	Lease income related to the Company's operating leases is comprised of the following: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Lease income related to fixed lease payments $ 7,805 $ 9,323 $ 24,480 $ 26,401 Lease income related to variable lease payments 1,150 2,123 4,914 5,991 Other (1) 243 203 463 725 Lease income $ 9,198 $ 11,649 $ 29,857 $ 33,117 (1) For the three and nine months ended September 30, 2019 and 2018, respectively, other is primarily comprised of parking revenues and termination fees related to early lease expirations.
Payments to be received under Topic 842	As of September 30, 2019, commercial operating leases provide for future minimum rental income, assuming no expiring leases are renewed, as follows. Apartment leases are not included as the terms are generally for one year or less. 2019 $ 5,632 2020 12,896 2021 11,034 2022 8,647 2023 8,128 Thereafter 26,569 Total $ 72,906
Operating leases under Topic 840	The following table sets forth our scheduled obligations for future minimum payments on our operating ground lease at December 31, 2018. 2019 $ 21 2020 21 2021 21 2022 21 2023 21 2024 21 Thereafter 373 Total $ 499 As of December 31, 2018, commercial operating leases provide for future minimum rental income assuming no expiring leases are renewed, as follows: 2019 $ 27,551 2020 17,323 2021 14,014 2022 11,423 2023 10,358 Thereafter 36,357 Total $ 117,026
Operating lease liability under Topic 842	The following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments on our operating ground lease at September 30, 2019 and a reconciliation of those cash flows to the operating lease liability at September 30, 2019. 2019 $ 5 2020 21 2021 21 2022 21 2023 21 2024 21 Thereafter 373 483 Imputed interest (183 ) Lease liability $ 300

Accounts Payable and Accrued _2

Accounts Payable and Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2019
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Expenses	Accounts payable and accrued expenses consist of the following: September 30, 2019 December 31, 2018 Accrued real estate taxes $ 5,229 $ 5,669 Accrued compensation 2,462 3,232 Accrued interest payable 401 119 Other accrued expenses 936 2,633 $ 9,028 $ 11,653

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Scheduled Maturities of Mortgage Indebtedness	As of September 30, 2019 , scheduled maturities for the Company’s outstanding mortgage indebtedness and the credit facility had various due dates through August 2027, as follows: For the year ended December 31, As of September 30, 2019 Weighted average interest rate 2019 $ — — % 2020 — — % 2021 — — % 2022 9,217 5.24% (0) 2023 18,750 3.27% (1) Thereafter 67,211 4.21% (0) Total $ 95,178 4.13% (0) (1) See below for discussion of the swap agreement entered into with the mortgage loan obtained in connection with the acquisition of the Evolve at Allendale asset. The weighted average interest rate reflected is the strike rate.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Derivative Liabilities Measured On A Recurring Basis	The table below presents the fair value of the Company’s derivative financial instrument as well as its classification on the condensed consolidated balance sheets as of September 30, 2019. The Company did not have any derivative instruments as of December 31, 2018. September 30, 2019 Level 1 Level 2 Level 3 Total Derivative financial instruments designated as cash flow hedges: Classified as liabilities in “Other liabilities” $ — $ 96 $ — $ 96
Schedule of the Fair Value of Financial Instruments	The table below represents the fair value of financial instruments presented at carrying values in the condensed consolidated financial statements as of September 30, 2019 and as of December 31, 2018 . September 30, 2019 December 31, 2018 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Debt $ 93,385 $ 96,784 $ 34,953 $ 35,222

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Summary of Net Property Operations	The following table summarizes net property operations by segment for the three months ended September 30, 2019 . Total Net Lease Retail Multi-Tenant Multi-family Other Rental income $ 8,955 $ 3,083 $ 2,740 $ 754 $ 2,360 $ 18 Other property income 243 — 111 — 132 — Total income 9,198 3,083 2,851 754 2,492 18 Operating expenses 2,721 174 1,280 184 975 108 Net operating income (loss) $ 6,477 $ 2,909 $ 1,571 $ 570 $ 1,517 $ (90 ) Non-allocated expenses (a) (5,482 ) Other income and expenses (b) (477 ) Net income attributable to non-controlling interests (10 ) Net income attributable to Highlands REIT, Inc. common stockholders $ 508 (a) Non-allocated expenses consist of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of interest income and interest expense. The following table summarizes net property operations by segment for the three months ended September 30, 2018 . Total Net Lease Retail Multi-Tenant Multi-family Other Rental income $ 11,446 $ 3,182 $ 6,182 $ 1,446 $ 636 $ — Other property income 203 — 13 92 98 — Total income 11,649 3,182 6,195 1,538 734 — Operating expenses 3,741 98 2,524 685 284 150 Net operating income (loss) $ 7,908 $ 3,084 $ 3,671 $ 853 $ 450 $ (150 ) Non-allocated expenses (a) (6,000 ) Other income and expenses (b) (596 ) Gain on sale of investment properties (c) 12,276 Loss on extinguishment of debt (d) (1,199 ) Net income $ 12,389 (a) Non-allocated expenses consist of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of interest income, other income and interest expense. (c) Gain on the sale of investment properties is related to one retail asset and one other asset. (d) Loss on extinguishment of debt is related to prepayment penalties on the payoff of mortgage debt. The following table summarizes net property operations by segment for the nine months ended September 30, 2019 . Total Net Lease Retail Multi-Tenant Multi-family Other Rental income $ 29,394 $ 9,433 $ 12,557 $ 2,238 $ 5,166 $ — Other property income 463 — 135 — 328 — Total income 29,857 9,433 12,692 2,238 5,494 — Operating expenses 9,233 475 5,605 542 2,163 448 Net operating income (loss) $ 20,624 $ 8,958 $ 7,087 $ 1,696 $ 3,331 $ (448 ) Non-allocated expenses (a) (18,406 ) Other income and expenses (b) (1,475 ) Gain on sale of investment properties (c) 8,841 Net income attributable to non-controlling interests (10 ) Net income attributable to Highlands REIT, Inc. common stockholders $ 9,574 Balance Sheet Data Real estate assets, net (d) $ 271,289 $ 35,146 $ 66,950 $ 26,533 $ 133,708 $ 8,952 Non-segmented assets (e) 129,893 Total assets $ 401,182 Capital expenditures $ 765 $ — $ 315 $ — $ 450 $ — (a) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (b) Other income and expenses consists of interest income and interest expense. (c) Gain on the sale of investment properties is related to one retail asset and one land parcel. (d) Real estate assets include intangible assets, net of amortization. (e) Non-segmented assets include cash and cash equivalents, restricted cash and escrows, accounts and rents receivable and deferred costs and other assets. The following table summarizes net property operations by segment for the nine months ended September 30, 2018 . Total Net Lease Retail Multi-Tenant Multi-family Other Rental income $ 32,392 $ 9,542 $ 18,255 $ 3,292 $ 1,303 $ — Other property income 725 — 32 432 261 — Total income 33,117 9,542 18,287 3,724 1,564 — Operating expenses 10,276 458 7,201 2,064 667 (114 ) Net operating income $ 22,841 $ 9,084 $ 11,086 $ 1,660 $ 897 $ 114 Non-allocated expenses (a) (19,529 ) Other income and expenses (b) (1,565 ) Gain on sale of investment properties (c) 12,301 Loss on extinguishment of debt (d) (1,199 ) Net income $ 12,849 Balance Sheet Data Real estate assets, net (e) $ 268,991 $ 40,730 $ 116,462 $ 47,470 $ 54,651 $ 9,678 Non-segmented assets (f) 53,793 Total assets $ 322,784 Capital expenditures $ 3,977 $ — $ 1,835 $ 2,076 $ 9 $ 57 (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 benefit. (c) Gain on the sale of investment properties is related to one retail asset, a parcel of one retail asset and one other asset. (d) Loss on extinguishment of debt is related to prepayment penalties on the payoff of mortgage debt. (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.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Reconciliation of Net (Loss) Income to Basic and Diluted EPS	The following table reconciles net income attributable to the Company to basic and diluted EPS (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net income attributable to Highlands REIT, Inc. common stockholders $ 508 $ 12,389 $ 9,574 $ 12,849 Denominator: Weighted average number of common shares outstanding - basic and diluted 876,007,008 871,537,188 875,057,625 871,027,452 Basic and diluted earnings per share: Net income per common share $ 0.00 $ 0.01 $ 0.01 $ 0.01

Share Based Compensation (Table

Share Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2019
Share-based Compensation [Abstract]
Summary of Stock Award Activity	A summary of the Company's stock awards activity as of September 30, 2019 is as follows: Non-Vested stock awards Stock Awards Weighted Average Grant Date Fair Value Balance at January 1, 2019 $ 2,121,212 $ 0.33 Granted 6,100,002 0.35 Vested (7,742,859 ) 0.35 Other (1) (121,212 ) — Balance at September 30, 2019 $ 357,143 $ 0.35 (1) Represents the change in the number of shares granted in 2018 based on an estimated net asset value per share of $0.33 and the actual shares vested in 2019 based on an estimated net asset value per share of $0.35 .

Organization (Details)

Organization (Details) $ / shares in Units, $ in Thousands	Aug. 16, 2019USD ($)property	Apr. 28, 2016$ / sharesshares	Sep. 30, 2019parcelproperty$ / shares	Dec. 31, 2018parcelproperty$ / shares
Conversion of Stock [Line Items]
Common stock, par value (in dollars per share) | $ / shares		$ 0.01	$ 0.01	$ 0.01
Number of assets (in property) | property			19	15
Parcels of land | parcel			1	2
Common stock
Conversion of Stock [Line Items]
Shares issued for each share held at date of spin-off (in shares) | shares		1
Corvue Venture
Conversion of Stock [Line Items]
Ownership percentage	85.00%
Equity investment contributions | $	$ 9,000
Evolve at Allendale | Mortgages
Conversion of Stock [Line Items]
Debt assumed | $	$ 18,750
Multi-family | Corvue Venture
Conversion of Stock [Line Items]
Number of assets (in property) | property	1

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Details)	9 Months Ended
	Sep. 30, 2019USD ($)	Jan. 01, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Assets held for sale			$ 0
Restricted cash	$ 4,419,000		$ 3,229,000	$ 2,155,000
ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of adoption		$ 92,000
ROU asset	$ 300,000
Buildings and improvements
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Useful life	30 years
Minimum | Furniture, Fixtures, Equipment and Site Improvements [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Useful life	5 years
Maximum | Furniture, Fixtures, Equipment and Site Improvements [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Useful life	15 years
Discount rate
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Measurement input	0.045

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Cash and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Cash and cash equivalents	$ 116,335	$ 80,512
Restricted cash	4,419	3,229		$ 2,155
Total cash, cash equivalents and restricted cash	$ 120,754	$ 83,741	$ 44,013	$ 56,007

Acquired Properties - Additiona

Acquired Properties - Additional Information (Details)	9 Months Ended
	Sep. 30, 2019USD ($)buildingvariable_interest_entity	Sep. 30, 2018USD ($)building
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Acquisition of investment properties	$ 70,921,000	$ 36,015,000
Multi-family
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Number of properties acquired | building	5	3
Acquisition of investment properties	$ 82,377,000	$ 36,015,000
Capitalized transaction costs	377,000	240
The Detroit and Detroit Terraces | Multi-family
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Acquisition of investment properties	19,070,000
The View | Multi-family
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Acquisition of investment properties	16,420,000
The Tennyson44 | Multi-family
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Acquisition of investment properties	19,191,000
Evolve at Allendale | Multi-family
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Acquisition of investment properties	$ 27,696,000
The Lafayette | Multi-family
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Acquisition of investment properties		9,679,000
1620 Central Street | Multi-family
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Acquisition of investment properties		20,552,000
Kenilworth Court | Multi-family
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Acquisition of investment properties		$ 5,784,000
Primary Beneficiary
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Number of VIEs | variable_interest_entity	1
Assets, VIEs	$ 28,409,000
Liabilities, VIEs	$ 19,293,000

Acquired Properties - Purchase

Acquired Properties - Purchase Price Allocation (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Real Estate [Line Items]
Land	$ 77,574		$ 72,630
Building and other improvements	246,211		241,897
Total	323,870		$ 314,559
Total acquisition price	70,921	$ 36,015
Multi-family
Real Estate [Line Items]
Land	16,470	8,028
Building and other improvements	63,738	27,403
Intangible assets, net	1,776	584
Total	81,984
Debt discount on mortgage assumption	393
Total liabilities	393
Total acquisition price	82,377	36,015
The Detroit and Detroit Terraces | Multi-family
Real Estate [Line Items]
Land	3,370
Building and other improvements	15,006
Intangible assets, net	301
Total	18,677
Debt discount on mortgage assumption	393
Total liabilities	393
Total acquisition price	19,070
The View | Multi-family
Real Estate [Line Items]
Land	7,272
Building and other improvements	8,862
Intangible assets, net	286
Total	16,420
Debt discount on mortgage assumption	0
Total liabilities	0
Total acquisition price	16,420
The Tennyson44 | Multi-family
Real Estate [Line Items]
Land	1,533
Building and other improvements	17,410
Intangible assets, net	248
Total	19,191
Debt discount on mortgage assumption	0
Total liabilities	0
Total acquisition price	19,191
Evolve at Allendale | Multi-family
Real Estate [Line Items]
Land	4,295
Building and other improvements	22,460
Intangible assets, net	941
Total	27,696
Debt discount on mortgage assumption	0
Total liabilities	0
Total acquisition price	$ 27,696
The Lafayette | Multi-family
Real Estate [Line Items]
Land		2,457
Building and other improvements		7,067
Intangible assets, net		155
Total acquisition price		9,679
1620 Central Street | Multi-family
Real Estate [Line Items]
Land		3,075
Building and other improvements		17,133
Intangible assets, net		344
Total acquisition price		20,552
Kenilworth Court | Multi-family
Real Estate [Line Items]
Land		2,496
Building and other improvements		3,203
Intangible assets, net		85
Total acquisition price		$ 5,784

Disposed Properties - Disposals

Disposed Properties - Disposals (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross Disposition Price	$ 56,350	$ 42,000	$ 56,350	$ 42,000
Sale Proceeds, Net			53,163	40,722
Gain on Sale	0	12,276	8,841	12,301
RDU land
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross Disposition Price	600		600
Sale Proceeds, Net			554
Gain on Sale			29
Lincoln Center
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross Disposition Price	$ 55,750		55,750
Sale Proceeds, Net			52,609
Gain on Sale			$ 8,812
Buckhorn Plaza (partial lot sale)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross Disposition Price		60		60
Sale Proceeds, Net				60
Gain on Sale				25
Rolling Plains (correctional facility)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross Disposition Price		3,600		3,600
Sale Proceeds, Net				3,237
Gain on Sale				3,368
Triangle Center
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross Disposition Price		$ 38,340		38,340
Sale Proceeds, Net				37,425
Gain on Sale				$ 8,908

Disposed Properties - Narrative

Disposed Properties - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of investment properties, net	$ 0	$ 12,276	$ 8,841	$ 12,301
Gross disposition price	$ 56,350	$ 42,000	$ 56,350	42,000
Mortgages
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Debt paid off				$ 19,479

Leases - Narrative (Details)

Leases - Narrative (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Dec. 31, 2018USD ($)	Sep. 30, 2019USD ($)leased_asset
Lessor, Lease, Description [Line Items]
Lease liability		$ 300
Number of leased assets | leased_asset		1
Impairment of asset	$ 3,765
Minimum
Lessor, Lease, Description [Line Items]
Lease terms	1 year	1 year
Maximum
Lessor, Lease, Description [Line Items]
Lease terms	20 years	10 years
ASU 2016-02
Lessor, Lease, Description [Line Items]
ROU asset		$ 300
Discount rate		4.50%
Customer concentration risk | Revenue | The GEO Group, Inc
Lessor, Lease, Description [Line Items]
Concentration percentage		25.10%

Leases - Lease Income (Details)

Leases - Lease Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Leases [Abstract]
Lease income related to fixed lease payments	$ 7,805	$ 9,323	$ 24,480	$ 26,401
Lease income related to variable lease payments	1,150	2,123	4,914	5,991
Other	243	203	463	725
Lease income	$ 9,198	$ 11,649	$ 29,857	$ 33,117

Leases - Receivable Maturity (D

Leases - Receivable Maturity (Details) $ in Thousands	Sep. 30, 2019USD ($)
Leases [Abstract]
2019	$ 5,632
2020	12,896
2021	11,034
2022	8,647
2023	8,128
Thereafter	26,569
Total	$ 72,906

Leases - Lessor Under Topic 840

Leases - Lessor Under Topic 840 (Details) $ in Thousands	Dec. 31, 2018USD ($)
Leases [Abstract]
2018	$ 27,551
2019	17,323
2020	14,014
2021	11,423
2022	10,358
Thereafter	36,357
Total	$ 117,026

Leases - Operating Lease Liabil

Leases - Operating Lease Liability Maturity (Details) $ in Thousands	Sep. 30, 2019USD ($)
Leases [Abstract]
2019	$ 5
2020	21
2021	21
2022	21
2023	21
2024	21
Thereafter	373
Total	483
Imputed interest	(183)
Lease liability	$ 300

Leases - Payments Due Under Top

Leases - Payments Due Under Topic 840 (Details) $ in Thousands	Dec. 31, 2018USD ($)
Leases [Abstract]
2019	$ 21
2020	21
2021	21
2022	21
2023	21
2024	21
Thereafter	373
Total	$ 499

Accounts Payable and Accrued _3

Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Accrued real estate taxes	$ 5,229	$ 5,669
Accrued compensation	2,462	3,232
Accrued interest payable	401	119
Other accrued expenses	936	2,633
Total accounts payable and accrued expenses	$ 9,028	$ 11,653

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Debt, net	$ 93,385	$ 34,953
Mortgages
Debt Instrument [Line Items]
Debt, net	$ 93,385	$ 34,953
Weighted average interest rate	4.13%	4.74%
Deferred financing costs, net	$ 1,433	$ 490
Debt discount	$ 360	$ 0

Debt - Scheduled Maturities (De

Debt - Scheduled Maturities (Details) - Mortgages - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
2019	$ 0
2020	0
2021	0
2022	9,217
2023	18,750
Thereafter	67,211
Total	$ 95,178
Weighted average interest rate
2019	0.00%
2020	0.00%
2021	0.00%
2022	5.24%
2023	3.27%
Thereafter	4.21%
Total	4.13%	4.74%

Debt - Additional Information (

Debt - Additional Information (Details) $ in Thousands	Aug. 16, 2019USD ($)	Feb. 15, 2019USD ($)extension_option	Jan. 08, 2019USD ($)	Sep. 30, 2019
Line of Credit
Debt Instrument [Line Items]
Additional borrowing		$ 100,000
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Principal amount		$ 50,000
Number of extension options | extension_option		2
Extension fee percentage		0.15%
Extension period		1 year
Line of Credit | Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Unused facility fee		0.15%
Line of Credit | Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Unused facility fee		0.25%
Line of Credit | Revolving Credit Facility | Base Rate | Minimum
Debt Instrument [Line Items]
Variable rate		1.00%
Line of Credit | Revolving Credit Facility | Base Rate | Maximum
Debt Instrument [Line Items]
Variable rate		1.30%
Line of Credit | Revolving Credit Facility | LIBOR | Minimum
Debt Instrument [Line Items]
Variable rate		2.00%
Line of Credit | Revolving Credit Facility | LIBOR | Maximum
Debt Instrument [Line Items]
Variable rate		2.30%
Line of Credit | Letter of Credit
Debt Instrument [Line Items]
Percentage of borrowings available		10.00%
Line of Credit | Revolving Credit Facility, Term Loan Commitments
Debt Instrument [Line Items]
Principal amount		$ 50,000
Proceeds from borrowings		$ 30,000
Unused facility fee		0.25%
Line of Credit | Revolving Credit Facility, Term Loan Commitments | Base Rate | Minimum
Debt Instrument [Line Items]
Variable rate		0.90%
Line of Credit | Revolving Credit Facility, Term Loan Commitments | Base Rate | Maximum
Debt Instrument [Line Items]
Variable rate		1.20%
Line of Credit | Revolving Credit Facility, Term Loan Commitments | LIBOR | Minimum
Debt Instrument [Line Items]
Variable rate		1.90%
Line of Credit | Revolving Credit Facility, Term Loan Commitments | LIBOR | Maximum
Debt Instrument [Line Items]
Variable rate		2.20%
The Detroit and Detroit Terraces
Debt Instrument [Line Items]
Debt assumed			$ 11,089
Debt discount on mortgage assumption			$ 360
The Detroit and Detroit Terraces | Mortgages
Debt Instrument [Line Items]
Fixed rate			3.99%
Evolve at Allendale | Mortgages
Debt Instrument [Line Items]
Debt assumed	$ 18,750
Fixed rate	3.27%
Effective percentage				3.95%

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2019USD ($)derivative_instrument	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)derivative_instrument	Sep. 30, 2018USD ($)	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unrealized loss on derivatives	$ 96,000	$ 0	$ 96,000	$ 0
Cash flow hedges to be reclassified in the next twelve months			$ 23,000
Discount rate | Long-term debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input percentage	0.0354		0.0354		0.0470
Discount rate | Long-term debt | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input percentage	0.0322		0.0322
Discount rate | Long-term debt | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input percentage	0.0391		0.0391
Cash Flow Hedging | Interest Rate Swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Number of derivative instruments | derivative_instrument	1		1
Notional amount	$ 18,750,000		$ 18,750,000

Fair Value Measurements - Deriv

Fair Value Measurements - Derivative Liabilities (Details) - Recurring $ in Thousands	Sep. 30, 2019USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	$ 96
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	96
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	$ 0

Fair Value Measurements - Not M

Fair Value Measurements - Not Measured at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt	$ 93,385	$ 34,953
Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt	$ 96,784	$ 35,222

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income tax benefit	$ 0	$ 0	$ 0	$ 155,000

Segment Reporting - Narrative (

Segment Reporting - Narrative (Details)	3 Months Ended	9 Months Ended					12 Months Ended
	Sep. 30, 2018leased_asset	Sep. 30, 2019parcel	Sep. 30, 2019leased_asset	Sep. 30, 2019segment	Sep. 30, 2018parcel	Sep. 30, 2018leased_asset	Dec. 31, 2018segment
Concentration Risk [Line Items]
Number of business segments (in segments)				4			3
Multi-family
Concentration Risk [Line Items]
Number of business segments (in segments)				1
Retail
Concentration Risk [Line Items]
Number of leased assets	1	1	1		1	1
Other
Concentration Risk [Line Items]
Number of leased assets | leased_asset	1					1

Segment Reporting - Net Propert

Segment Reporting - Net Property Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Segment Reporting Information [Line Items]
Total revenues	$ 9,198	$ 11,649	$ 29,857	$ 33,117
Operating expenses	2,721	3,741	9,233	10,276
Net operating income (loss)	6,477	7,908	20,624	22,841
Gain on sale of investment properties	0	12,276	8,841	12,301
Loss on extinguishment of debt	0	(1,199)	0	(1,199)
Net income attributable to non-controlling interests	(10)	0	(10)	0
Net income attributable to Highlands REIT, Inc. common stockholders	508	12,389	9,574	12,849
Total assets	401,182	322,784	401,182	322,784	$ 335,980
Capital expenditures			765	3,977
Rental income
Segment Reporting Information [Line Items]
Total revenues	8,955	11,446	29,394	32,392
Other property income
Segment Reporting Information [Line Items]
Total revenues	243	203	463	725
Other
Segment Reporting Information [Line Items]
Total revenues	18	0	0	0
Operating expenses	108	150	448	(114)
Net operating income (loss)	(90)	(150)	(448)	114
Total assets	8,952	9,678	8,952	9,678
Capital expenditures			0	57
Other | Rental income
Segment Reporting Information [Line Items]
Total revenues	18	0	0	0
Other | Other property income
Segment Reporting Information [Line Items]
Total revenues	0	0	0	0
Reconciling items
Segment Reporting Information [Line Items]
Non-allocated expenses	(5,482)	(6,000)	(18,406)	(19,529)
Other income and expenses	(477)	(596)	(1,475)	(1,565)
Total assets	129,893	53,793	129,893	53,793
Operating Segments And Corporate, Non-Segment
Segment Reporting Information [Line Items]
Total assets	271,289	268,991	271,289	268,991
Net Lease | Operating segments
Segment Reporting Information [Line Items]
Total revenues	3,083	3,182	9,433	9,542
Operating expenses	174	98	475	458
Net operating income (loss)	2,909	3,084	8,958	9,084
Total assets	35,146	40,730	35,146	40,730
Capital expenditures			0	0
Net Lease | Operating segments | Rental income
Segment Reporting Information [Line Items]
Total revenues	3,083	3,182	9,433	9,542
Net Lease | Operating segments | Other property income
Segment Reporting Information [Line Items]
Total revenues	0	0	0	0
Retail | Operating segments
Segment Reporting Information [Line Items]
Total revenues	2,851	6,195	12,692	18,287
Operating expenses	1,280	2,524	5,605	7,201
Net operating income (loss)	1,571	3,671	7,087	11,086
Total assets	66,950	116,462	66,950	116,462
Capital expenditures			315	1,835
Retail | Operating segments | Rental income
Segment Reporting Information [Line Items]
Total revenues	2,740	6,182	12,557	18,255
Retail | Operating segments | Other property income
Segment Reporting Information [Line Items]
Total revenues	111	13	135	32
Multi-Tenant Office | Operating segments
Segment Reporting Information [Line Items]
Total revenues	754	1,538	2,238	3,724
Operating expenses	184	685	542	2,064
Net operating income (loss)	570	853	1,696	1,660
Total assets	26,533	47,470	26,533	47,470
Capital expenditures			0	2,076
Multi-Tenant Office | Operating segments | Rental income
Segment Reporting Information [Line Items]
Total revenues	754	1,446	2,238	3,292
Multi-Tenant Office | Operating segments | Other property income
Segment Reporting Information [Line Items]
Total revenues	0	92	0	432
Multi-family | Operating segments
Segment Reporting Information [Line Items]
Total revenues	2,492	734	5,494	1,564
Operating expenses	975	284	2,163	667
Net operating income (loss)	1,517	450	3,331	897
Total assets	133,708	54,651	133,708	54,651
Capital expenditures			450	9
Multi-family | Operating segments | Rental income
Segment Reporting Information [Line Items]
Total revenues	2,360	636	5,166	1,303
Multi-family | Operating segments | Other property income
Segment Reporting Information [Line Items]
Total revenues	$ 132	$ 98	$ 328	$ 261

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator:
Net income attributable to Highlands REIT, Inc. common stockholders	$ 508	$ 12,389	$ 9,574	$ 12,849
Denominator:
Weighted average shares outstanding - basic and diluted (in shares)	876,007,008	871,537,188	875,057,625	871,027,452
Basic and diluted earnings per share:
Net income per common share (in dollars per share)	$ 0	$ 0.01	$ 0.01	$ 0.01

Share Based Compensation (Detai

Share Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2017	Apr. 28, 2016
Weighted Average Grant Date Fair Value
Unrecognized compensation expense	$ 70		$ 70
Payment for tax withholding for share-based compensation			1,177	$ 876
Common stock repurchased and retired (in shares)		116,334
Common stock repurchased and retired (in dollars per share)					$ 0.33
Incentive awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate value of shares granted	$ 2,135	$ 1,905	$ 2,135	$ 1,905
Number of shares authorized to grant (up to) (in shares)						43,000,000
Shares available for future issuance (in shares)	17,465,437		17,465,437
Stock Awards
Beginning balance (in shares)			2,121,212
Granted (in shares)			6,100,002	5,772,728
Vested (in shares)			(7,742,859)
Forfeited (in shares)			(121,212)
Ending balance (in shares)	357,143		357,143
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share)			$ 0.33
Granted (in dollars per share)			0.35	$ 0.33
Vested (in dollars per share)			0.35
Forfeited (in dollars per share)			0
Ending balance (in dollars per share)	$ 0.35		$ 0.35
Executive Officer | Incentive awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate value of shares granted	$ 125		$ 125
Incentive Award Plan
Weighted Average Grant Date Fair Value
Stock-based compensation expense	$ 43	$ 196	$ 2,220	$ 2,249

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ in Thousands	Oct. 24, 2019	Sep. 30, 2019	Sep. 30, 2018
Subsequent Event [Line Items]
Gross purchase price		$ 70,921	$ 36,015
Subsequent event
Subsequent Event [Line Items]
Gross purchase price	$ 48,700