Highlands REIT (HHDS) 10-K 20 Mar 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Mar. 19, 2020	Jun. 28, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	Highlands REIT, Inc.
Entity Central Index Key	0001661458
Entity Filer Category	10-K
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Well-known Seasoned Issuer	No
Entity Emerging Growth Company	true
Entity Small Business	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Voluntary Filers	No
Entity Common Stock, Shares Outstanding		879,553,830
Entity Public Float			$ 287.6
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Investment properties
Land	$ 82,877	$ 72,630
Building and other improvements	289,351	241,897
Construction in progress	0	32
Total	372,228	314,559
Less accumulated depreciation	(56,431)	(72,822)
Net investment properties	315,797	241,737
Cash and cash equivalents	75,404	80,512
Restricted cash and escrows	2,651	3,229
Accounts and rents receivable (net of allowance of $1,178 and $1,161, respectively)	3,105	5,861
Intangible assets, net	1,339	408
Deferred costs and other assets	1,936	4,233
Total assets	400,232	335,980
Liabilities
Debt, net	93,203	34,953
Accounts payable and accrued expenses	11,535	11,653
Intangible liabilities, net	842	3,004
Other liabilities	4,055	2,270
Total liabilities	109,635	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 December 31, 2019 and 2018, respectively	8,761	8,717
Additional paid-in capital	1,408,993	1,407,502
Accumulated distributions in excess of net income	(1,127,270)	(1,132,119)
Non-controlling interests	290,597	284,100
Accumulated Other Comprehensive Income (Loss), Net of Tax	18	0
Stockholders' Equity Attributable to Parent	290,502	284,100
Stockholders' Equity Attributable to Noncontrolling Interest	95	0
Total liabilities and equity	$ 400,232	$ 335,980

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Allowance for accounts and rent receivables	$ 1,178	$ 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

Combined Consolidated Statement

Combined Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenues
Rental income	$ 36,626,000	$ 42,761,000
Expenses
Property operating expenses	7,489,000	8,892,000
Real estate taxes	5,691,000	5,028,000
Depreciation and amortization	13,014,000	12,178,000
General and administrative expenses	12,907,000	12,603,000
Provision for asset impairment	0	4,667,000
Total expenses	39,101,000	43,368,000
Gain on sale of investment properties	(8,841,000)	(27,863,000)
Income from operations	7,093,000	26,805,000
Interest income	1,650,000	497,000
(Loss) gain on extinguishment of debt	0	(1,199,000)
Other income	0	30,000
Interest expense	(3,929,000)	(2,559,000)
Income before income taxes	4,814,000	24,773,000
Income tax benefit	0	155,000
Net income	4,814,000	24,928,000
Net loss attributable to non-controlling interests	35,000	0
Net income attributable to Highlands REIT, Inc. common stockholders	$ 4,849,000	$ 24,928,000
Net income per common share, basic and diluted (in dollars per share)	$ 0.01	$ 0.03
Weighted average number of common shares outstanding, basic and diluted (in shares)	875,313,817	871,177,934
Unrealized gain on derivatives	$ 21,000	$ 0
Total other comprehensive income	21,000	0
Comprehensive income	4,835,000	24,928,000
Comprehensive loss attributable to non-controlling interests	32,000	0
Comprehensive income attributable to Highlands REIT, Inc. common stockholders	4,867,000	24,928,000
Other property income
Revenues
Total revenues	727,000	748,000
Total revenues
Revenues
Total revenues	$ 37,353,000	$ 43,509,000

Combined Consolidated Stateme_2

Combined Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	AOCI Attributable to Parent [Member]	Accumulated Other Comprehensive Income	Parent [Member]	Noncontrolling Interest [Member]
Beginning balance (in shares) at Dec. 31, 2017		868,423,581
Beginning balance at Dec. 31, 2017	$ 258,097	$ 8,684	$ 1,406,460	$ 0	$ (1,157,047)	$ 258,097	$ 0
Net income	24,928					24,928
Share-based compensation (in shares)		3,265,123
Non-controlling interest equity contributions	1,075	$ 33	1,042			1,075
Ending balance (in shares) at Dec. 31, 2018		871,688,704
Ending balance at Dec. 31, 2018	284,100	$ 8,717	1,407,502	0	(1,132,119)	284,100	0
Net income	4,814				4,849	4,849	(35)
Other Comprehensive Income (Loss), Net of Tax	21			18		18	3
Noncontrolling Interest, Increase From Contributions	127						127
Share-based compensation (in shares)		4,385,334
Non-controlling interest equity contributions	1,535	$ 44	1,491			1,535
Ending balance (in shares) at Dec. 31, 2019		876,074,038
Ending balance at Dec. 31, 2019	$ 290,597	$ 8,761	$ 1,408,993	$ 18	$ (1,127,270)	$ 290,502	$ 95

Consolidated Statements of Cash

Consolidated Statements of Cash Flow - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net income	$ 4,814	$ 24,928
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13,014	12,178
Amortization of above and below market leases, net	(266)	(407)
Amortization of debt discounts and financing costs	290	80
Straight-line rental income	(186)	(828)
Write-off of lease related assets	2,745	0
Loss on extinguishment of debt	0	1,199
Gain on sale of investment properties, net	(8,841)	(27,863)
Provision for asset impairment	0	4,667
Non-cash stock-based compensation expense	2,242	2,497
Changes in assets and liabilities:
Accounts and rents receivable, net	205	(432)
Deferred costs and other assets	146	(1,457)
Accounts payable and accrued expenses	839	658
Other liabilities	1,807	545
Net cash flows provided by operating activities	16,809	15,765
Cash flows from investing activities:
Capital expenditures and tenant improvements	(1,011)	(4,251)
Proceeds from sale of investment properties, net	53,163	76,526
Acquisition of investment properties	(119,725)	(36,014)
Payment of leasing fees	(778)	(1,815)
Net cash flows (used in) provided by investing activities	(68,351)	34,446
Cash flows from financing activities:
Payment of debt issuance costs	(437)	0
Proceeds from credit agreement	29,375	0
Proceeds from debt	(18,684)	0
Payoff of debt	0	(19,479)
Prepayment penalties on the payoff of debt	(716)	(964)
Principal payments of debt	0	(1,158)
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	45,856	(22,477)
Net (decrease) increase in cash and cash equivalents	(5,686)	27,734
Cash, cash equivalents and restricted cash, at beginning of year	83,741	56,007
Cash, cash equivalents and restricted cash, at end of year	$ 78,055	$ 83,741

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flow - Supplemental - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Supplemental disclosure of cash flow information:
Cash paid for interest	$ 3,493	$ 2,565
Cash paid for taxes	92	185
Supplemental schedule of non-cash investing and financing activities:
Disposal of lease related assets	2,745	0
Other assets arising from unrealized gain on derivative instruments	21	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	12 Months Ended
	Dec. 31, 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 multi-family assets, retail assets, office assets, industrial assets, a correctional facility, unimproved land and a bank branch. Prior to April 28, 2016, Highlands was a wholly-owned subsidiary of InvenTrust Properties Corp. (“InvenTrust” and formerly known as Inland American Real Estate Trust, Inc.), its former parent. 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 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 asset is owned by a separate legal entity, which maintains its own books and financial records, and each entity’s assets are not available to satisfy the liabilities of other affiliated entities, except as otherwise disclosed in Note 8. As of December 31, 2019 , the Company owned 20 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	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies The accompanying 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of Highlands, as well as all of Highlands' consolidated subsidiaries (collectively, “the Company”). 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 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 it or the lessee is the owner of the tenant improvements for accounting purposes. These factors include: • whether the lease stipulates how and on what a tenant improvement allowance may be spent; • whether the tenant or landlord retains legal title to the improvements; • the uniqueness of the improvements; • the expected economic life of the tenant improvements relative to the length of the lease; and • who constructs or directs the construction of the improvements. The determination of who owns the tenant improvements, for accounting purposes, is subject to significant judgment. In making that determination, we consider all of the above factors. No one factor, however, necessarily establishes its determination. Rental income is recognized on a straight-line basis over the term of each lease. The difference between rental income earned on a straight-line basis and the cash rent due under the provisions of the lease agreements is recorded as deferred rent receivable and is included as a component of accounts and rents receivable in the accompanying consolidated balance sheets. Rental income 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 during the year ended December 31, 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 consolidated balance sheets, and are amortized as either a decrease (in the case of above-market leases) or an increase (in the case of below-market leases) to rental income over the remaining term of the associated tenant lease. The values associated with in-place leases are recorded in intangible assets, net in the consolidated balance sheets and are amortized to depreciation and amortization expense in the 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 consolidated balance sheets for the most recent reporting period and recorded at the lesser of the carrying value or fair value less costs to sell. There were no assets held for sale on the consolidated balance sheets as of December 31, 2019 and 2018. If the sale represents a strategic shift that has (or will have) a major effect on the Company's results of operations, the income and expenses for the period are classified as discontinued operations on the consolidated statement of operations and comprehensive income for all periods presented. 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 while undiscounted cash flows from the anticipated use and disposal of the association long-lived asset, the Company records an impairment loss to the extent that the carrying value exceeds the property's 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. The Company recorded $4,667 of impairments during the year ended December 31, 2018. There were no such impairments during the year ended December 31, 2019. See Note 9 to the consolidated financial statements for additional information. 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 consolidated financial statements. The adoption of ASU No. 2018-13 is not expected to have a material impact on the 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 have elected these practical expedients and adopted ASC 842 on January 1, 2019 using the effective date as our date of initial application and no transition adjustment was recorded. Therefore, financial information and disclosures under ASC 842 will not be provided for periods prior to January 1, 2019. The Company has 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 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 on the consolidated balance sheet, included in deferred costs and other assets and other liabilities, with a balance as of December 31, 2019 of approximately $298 , 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 the adoption date. 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 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 consolidated statements of cash flow. The Company is required to escrow cash balances for specific uses stipulated by certain of its lenders and other various agreements. As of December 31, 2019 and 2018, the Company’s cash balances restricted for these uses were $2,651 and $3,229 , respectively. December 31, 2019 December 31, 2018 Cash and cash equivalents $ 75,404 $ 80,512 Restricted cash 2,651 3,229 Total cash, cash equivalents and restricted cash $ 78,055 $ 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 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 consolidated financial statements.

Acquired Assets

Acquired Assets	12 Months Ended
	Dec. 31, 2019
Asset Acquisitions [Abstract]
Acquired Assets	Acquired Assets The Company records identifiable assets and liabilities acquired at fair value. During the year ended December 31, 2019, the Company acquired six multi-family assets for a gross acquisition price of $131,180 . Under ASU No. 2017-01, the Company determined these transactions should be accounted for as asset acquisitions. Accordingly, the Company capitalized transaction costs of approximately $480 . The following table reflects the properties acquired during the year ended December 31, 2019 . 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 Tennyson44 Denver, Colorado June 11, 2019 19,191 The Locale (formerly Evolve at Allendale) (1) Allendale, MI August 16, 2019 27,696 The Muse Denver, Colorado October 24, 2019 48,803 $ 131,180 (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 8. 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 noncontrolling interests in our consolidated financial statements. The purchase price allocation has been recorded as follows: The Detroit and Detroit Terraces The View Tennyson44 The Locale The Muse Total Land $ 3,370 $ 7,272 $ 1,533 $ 4,295 $ 5,303 $ 21,773 Buildings and other improvements 15,006 8,862 17,410 22,460 42,809 106,547 Intangible assets, net 301 286 248 941 691 2,467 Total assets $ 18,677 $ 16,420 $ 19,191 $ 27,696 $ 48,803 $ 130,787 — Debt discount on mortgage assumption 393 — — — — 393 Total liabilities $ 393 $ — $ — $ — $ — $ 393 Total acquisition price $ 19,070 $ 16,420 $ 19,191 $ 27,696 $ 48,803 $ 131,180 Consolidated VIE As of December 31, 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 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 consolidated balance sheets as of December 31, 2019 is $28,073 related to the Corvue Venture. Included in total liabilities on the Company’s consolidated balance sheets as of December 31, 2019 is $19,074 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 twelve months ended December 31, 2018, the Company acquired three multi-family assets for an acquisition price of $36.0 million. Under ASU No. 2017-01, the Company determined these transactions should be accounted for as asset acquisitions. Accordingly, the Company capitalized transaction costs of approximately $240 . The following table reflects the properties acquired during the year ended December 31, 2018. 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 recorded 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 Assets

Disposed Assets	12 Months Ended
	Dec. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]
Disposed Assets	Disposed Assets The following table reflects the property dispositions during the year ended December 31, 2019. Property Location 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 year ended December 31, 2018. Property Location Date Gross Disposition Price Sale Proceeds, Net Gain on Sale Buckhorn Plaza (partial lot sale) Bloomsburg, PA 8-Feb-18 $ 60 $ 60 $ 25 Rolling Plains (correctional facility) Haskell, TX 7-Aug-18 3,600 3,237 3,368 Triangle Center (1) Longview, WA 24-Sep-18 38,340 37,425 8,908 Bridgeside Point Pittsburgh, PA 28-Dec-18 38,500 35,804 15,562 $ 80,500 $ 76,526 $ 27,863 (1) Mortgage debt in the amount of $19,479 was paid off with the proceeds from the sale.

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses	12 Months Ended
	Dec. 31, 2019
Payables and Accruals [Abstract]
Accounts Payable and Accrued Expenses	Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following: Year ended December 31, 2019 2018 Accrued real estate taxes $ 6,372 $ 5,669 Accrued compensation 3,606 3,232 Accrued interest payable 369 119 Other accrued expenses 1,188 2,633 Total accounts payable and accrued expenses $ 11,535 $ 11,653

Leases

Leases	12 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Leases	Leases Leasing as a lessor Revenue Recognition We lease multi-family 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 December 31, 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 multi-family 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 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. In December 2019, the Company executed an amendment to its lease with Alta Devices, Inc. for one building of our office asset located in San Jose, California. The amendment with Alta Devices acknowledged Alta Devices was in payment default of its lease, and we collected on a letter of credit, in the amount of $1,701 , that secured Alta Devices obligations under the lease. The letter of credit proceeds have been and will continue to be applied to rental income and other fees, if applicable, pursuant to the terms of the lease. We have written off all lease related assets related to the premises in the original lease with Alta Devices, Inc. including a lease inducement $1,249 , lease commissions $1,169 and straight-line rent $1,649 . On August 2, 2019 , we received a notice of non-renewal from The GEO Group, Inc. indicating that it would not be seeking an extension of its lease on our Hudson correctional facility asset. The lease on this asset expired in January, 2020 and The GEO Group, Inc. has vacated the facility. For the year ended December 31, 2019, 26.7% 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 expiration of this lease to have a material adverse effect on our financial condition, cash flows and results of operations. Notwithstanding the expiration of this lease, 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: Year ended December 31, 2019 2018 Lease income related to fixed lease payments $ 30,391 $ 34,966 Lease income related to variable lease payments 6,235 7,795 Other (1) 727 748 Lease income $ 37,353 $ 43,509 (1) For the year ended December 31, 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 December 31, 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. 2020 $ 10,282 2021 8,597 2022 6,133 2023 5,533 2024 5,059 Thereafter 12,338 Total $ 47,942 As of December 31, 2018, commercial operating leases provide for future minimum rental income assuming no expiring leases are renewed, as follows: 2019 $ 29,214 2020 17,418 2021 14,014 2022 11,423 2023 10,358 Thereafter 36,357 Total $ 118,784 The remaining lease terms range from one year to fifteen years . The majority of the revenue from the Company’s assets consists of rents received under long-term operating leases. Some leases provide for the payment of fixed base rent paid monthly in advance, and for the reimbursement by tenants to the Company for the tenant’s pro rata share of certain operating expenses including real estate taxes, special assessments, insurance, utilities, common area maintenance, management fees, and certain building repairs paid by the landlord and recoverable under the terms of the lease. Under these leases, the landlord pays all expenses and is reimbursed by the tenant for the tenant’s pro rata share of recoverable expenses paid. Certain other tenants are subject to net leases which provide that the tenant is responsible for fixed base rent as well as all costs and expenses associated with occupancy. Under net leases where all expenses are paid directly by the tenant rather than the landlord, such expenses are not included in the consolidated statements of operations and comprehensive income. Under leases where all expenses are paid by the landlord, subject to reimbursement by the tenant, the expenses are included within property operating expenses and reimbursements are included in tenant recovery income on the consolidated statements of operations and comprehensive income. 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 December 31, 2019, the balances were $298 and were recorded in the 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 December 31, 2019 and a reconciliation of those cash flows to the operating lease liability at December 31, 2019. 2020 $ 21 2021 21 2022 21 2023 21 2024 21 Thereafter 373 478 Imputed interest (180 ) Lease liability $ 298
Leases	Leases Leasing as a lessor Revenue Recognition We lease multi-family 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 December 31, 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 multi-family 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 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. In December 2019, the Company executed an amendment to its lease with Alta Devices, Inc. for one building of our office asset located in San Jose, California. The amendment with Alta Devices acknowledged Alta Devices was in payment default of its lease, and we collected on a letter of credit, in the amount of $1,701 , that secured Alta Devices obligations under the lease. The letter of credit proceeds have been and will continue to be applied to rental income and other fees, if applicable, pursuant to the terms of the lease. We have written off all lease related assets related to the premises in the original lease with Alta Devices, Inc. including a lease inducement $1,249 , lease commissions $1,169 and straight-line rent $1,649 . On August 2, 2019 , we received a notice of non-renewal from The GEO Group, Inc. indicating that it would not be seeking an extension of its lease on our Hudson correctional facility asset. The lease on this asset expired in January, 2020 and The GEO Group, Inc. has vacated the facility. For the year ended December 31, 2019, 26.7% 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 expiration of this lease to have a material adverse effect on our financial condition, cash flows and results of operations. Notwithstanding the expiration of this lease, 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: Year ended December 31, 2019 2018 Lease income related to fixed lease payments $ 30,391 $ 34,966 Lease income related to variable lease payments 6,235 7,795 Other (1) 727 748 Lease income $ 37,353 $ 43,509 (1) For the year ended December 31, 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 December 31, 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. 2020 $ 10,282 2021 8,597 2022 6,133 2023 5,533 2024 5,059 Thereafter 12,338 Total $ 47,942 As of December 31, 2018, commercial operating leases provide for future minimum rental income assuming no expiring leases are renewed, as follows: 2019 $ 29,214 2020 17,418 2021 14,014 2022 11,423 2023 10,358 Thereafter 36,357 Total $ 118,784 The remaining lease terms range from one year to fifteen years . The majority of the revenue from the Company’s assets consists of rents received under long-term operating leases. Some leases provide for the payment of fixed base rent paid monthly in advance, and for the reimbursement by tenants to the Company for the tenant’s pro rata share of certain operating expenses including real estate taxes, special assessments, insurance, utilities, common area maintenance, management fees, and certain building repairs paid by the landlord and recoverable under the terms of the lease. Under these leases, the landlord pays all expenses and is reimbursed by the tenant for the tenant’s pro rata share of recoverable expenses paid. Certain other tenants are subject to net leases which provide that the tenant is responsible for fixed base rent as well as all costs and expenses associated with occupancy. Under net leases where all expenses are paid directly by the tenant rather than the landlord, such expenses are not included in the consolidated statements of operations and comprehensive income. Under leases where all expenses are paid by the landlord, subject to reimbursement by the tenant, the expenses are included within property operating expenses and reimbursements are included in tenant recovery income on the consolidated statements of operations and comprehensive income. 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 December 31, 2019, the balances were $298 and were recorded in the 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 December 31, 2019 and a reconciliation of those cash flows to the operating lease liability at December 31, 2019. 2020 $ 21 2021 21 2022 21 2023 21 2024 21 Thereafter 373 478 Imputed interest (180 ) Lease liability $ 298

Intangible Assets

Intangible Assets	12 Months Ended
	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets The following table summarizes the Company's identified intangible assets and intangible liabilities as of December 31, 2019 and 2018 . Balance as of December 31, 2019 2018 Intangible Assets: Acquired in-place lease $ 22,165 $ 19,884 Acquired above market lease — 127 Accumulated amortization (20,826 ) (19,603 ) Intangible assets, net $ 1,339 $ 408 Intangible liabilities: Acquired below market leases $ 2,629 $ 8,106 Accumulated amortization (1,787 ) (5,102 ) Intangible Liabilities, net $ 842 $ 3,004 The portion of the purchase price allocated to acquired above market lease costs and acquired below market lease costs are amortized on a straight-line basis over the life of the related lease, including the respective renewal period for below market lease costs with fixed rate renewals, as an adjustment to rental income. Amortization pertaining to the above market lease costs was applied as a reduction to rental income. Amortization pertaining to the below market lease costs was applied as an increase to other property income. The portion of the purchase price allocated to acquired in-place lease intangibles is amortized on a straight line basis over the life of the related lease and is recorded as amortization expense. The following table summarizes the amortization related to acquired above and below market lease costs and acquired in-place lease intangibles for the years ended December 31, 2019 and 2018 . Year ended December 31, 2019 2018 Amortization of: Acquired above market lease $ (1 ) $ (2 ) Acquired below market lease 267 409 Net revenues increase $ 266 $ 407 Acquired in-place lease intangibles $ 1,529 $ 735 The following table presents the amortization during the next five years and thereafter related to intangible assets and liabilities as of December 31, 2019 . 2020 2021 2022 2023 2024 Thereafter Total Amortization of: Acquired below market lease $ 99 $ 85 $ 85 $ 85 $ 85 $ 403 $ 842 Net revenues increase $ 99 $ 85 $ 85 $ 85 $ 85 $ 403 $ 842 Acquired in-place lease intangibles $ 1,339 $ — $ — $ — $ — $ — $ 1,339

Debt

Debt	12 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
Debt	Debt During the years ended December 31, 2019 and 2018 , the following principal debt transactions occurred: Balance at December 31, 2017 $ 55,886 Paydown of debt (20,443 ) Balance at December 31, 2018 35,443 Assumption of mortgage debt on acquired properties — 11,449 Proceeds from credit agreement 30,000 Proceeds from mortgage debt 18,750 Paydown of debt (716 ) Balance at December 31, 2019 $ 94,926 Total debt outstanding as of December 31, 2019 and December 31, 2018 , net of unamortized deferred financing costs and debt discounts, were $93,203 and $34,953 , respectively, and had a weighted average interest rate of 4.00% and 4.74% per annum, respectively. Deferred financing costs, net, as of December 31, 2019 and December 31, 2018 were $1,374 and $490 , respectively. Debt discounts, as of December 31, 2019 and December 31, 2018 were $349 and $0 , respectively. As of December 31, 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 December 31, 2019 Weighted average interest rate 2020 $ — — % 2021 — — % 2022 9,166 5.24 % 2023 18,658 3.28 % (1) 2024 30,000 3.60 % Thereafter 37,102 4.38 % Total $ 94,926 4.00 % (1) See below for discussion of the swap agreement entered into with the mortgage loan obtained in connection with the acquisition of the The Locale (formerly Evolve at Allendale) asset. The weighted average interest rate reflected is the strike rate. The Company's ability to pay off mortgages when they become due is dependent upon the Company's ability either to refinance the related mortgage debt or to sell the related asset. With respect to each loan, if the applicable 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, we may, if appropriate, satisfy a mortgage obligation by transferring title of the asset to the lender or permitting a lender to foreclose. As of December 31, 2019 and December 31, 2018 , none of our mortgage debt was recourse to the Company, although Highlands or its subsidiaries may act as guarantor under customary, non-recourse carve-out guarantees in connection with obtaining mortgage loans on certain of our properties. Some of the mortgage loans require compliance with certain covenants, such as debt service ratios, investment restrictions and distribution limitations. As of December 31, 2019 and 2018 , the Company is in compliance with such covenants in all material respects. On January 8, 2019, the Company assumed a mortgage loan in the principal 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. We obtained a mortgage loan in the principal amount of $18,750 in connection with the acquisition of Locale (formerly Evolve at Allendale) on August 16, 2019. We 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 December 31, 2019, is approximately 3.46% . Credit Agreement 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, we may seek to increase the aggregate lending commitments 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 our request. 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. 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 year ended December 31, 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.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 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 risks 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 December 31, 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 on the 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 income related to the unrealized gain on our derivative financial instrument was $21 for the year ended December 31, 2019. The Company had no derivative instruments during the year ended December 31, 2018. Realized gains and losses will be recognized as they accrue in interest expense. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our variable rate debt. The Company estimates that $16 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 consolidated balance sheets as of December 31, 2019. The Company did not have any derivative instruments as of December 31, 2018. December 31, 2019 Level 1 Level 2 Level 3 Total Derivative financial instruments designated as cash flow hedges: Classified as assets in “Deferred costs and other assets” $ — $ 21 $ — $ 21 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 December 31, 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 year ended December 31, 2018 , the Company identified certain assets which may have a reduction in the expected holding period, a reduction in occupancy or a reduction in fair market value which represented an impairment trigger, and recorded an impairment of investment properties of $4,667 on one net lease asset and one land parcel. No such impairments were recorded during the year ended December 31, 2019. The following table presents these assets measured at fair value on a nonrecurring basis as of December 31, 2018 aggregated by the level within the fair value hierarchy in which those measurements fall. Methods and assumptions used to estimate the fair value of these assets are described after the table. Fair Value Level 1 Level 2 Level 3 Total Provision for impairment December 31, 2018 Investment Properties — — $ 19,225 (a) $ 19,225 $ 4,667 (a) The estimate of fair value of the land parcel was based on recent negotiations for the sale of similar assets to third parties. The estimate of fair value relating to the correctional facility's impairment analysis was based on a 10 -year discounted cash flow model. The cash flows consist of observable inputs such as contractual revenues and unobservable inputs such as forecasted revenues and expenses. These unobservable inputs are based on market conditions and the Company’s expected growth rates. Capitalization rates ranging from 4.00% to 10.50% and discount rates ranging from 5.30% to 11.00% were utilized in the models and are based upon observable rates that the Company believes to be within a reasonable range of current market rates. Financial Instruments Not Measured at Fair Value The table below represents the fair value of financial instruments presented at carrying values in the consolidated financial statements as of December 31, 2019 and 2018 . December 31, 2019 December 31, 2018 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Mortgages payable and term loan $ 94,926 $ 94,934 $ 35,443 $ 35,222 The Company estimates the fair value of its debt instruments using a weighted average market effective interest rate of 3.93% and 4.70% per annum as of December 31, 2019 and 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 3.42% to 4.93% and 4.18% to 5.03% as of December 31, 2019 and 2018 , respectively. The fair value estimate of the unsecured credit facility approximated the carrying value due to limited market volatility in pricing. The assumptions reflect the terms currently available on similar borrowing terms to borrowers with credit profiles similar to the Company’s. The Company has determined that its debt instrument valuations are classified in Level 2 of the fair value hierarchy.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company is taxed and operates in a manner that will allow the Company continue to qualify as a REIT for U.S. federal income tax purposes. 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. Even if 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. MB REIT is currently disregarded as a separate entity from the Company for U.S. federal income tax purposes and is a QRS of the Company. All assets, liabilities and items of income, deduction and credit of MB REIT are treated for U.S. federal income tax purposes as those of the Company. During the year ended December 31, 2019, no income tax benefit or expense was included in the consolidated statements of operations and comprehensive income. During the year ended December 31, 2018, an income tax benefit of $155 , was included on the consolidated statements of operations and comprehensive income. Uncertain Tax Positions The Company had no unrecognized tax benefits as of or during the two year period ended December 31, 2019 . The Company expects no significant increases or decreases in unrecognized tax benefits due to changes in tax positions within one year of December 31, 2019 . The Company has no material interest or penalties relating to income taxes recognized in the consolidated statements of operations and comprehensive income for the years ended December 31, 2019 and 2018 or in the consolidated balance sheets as of December 31, 2019 and 2018 . As of December 31, 2019 , the Company's, including its predecessors, 2018 , 2017 and 2016 tax years remain subject to examination by U.S. and various state tax jurisdictions.

Segment Reporting

Segment Reporting	12 Months Ended
	Dec. 31, 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. 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 asset is presented below in Other. The following table summarizes net operating income (loss) by segment for the year ended December 31, 2019 . Total Net Lease Retail Multi-Tenant Office Multi-family Other Rental income $ 36,626 $ 12,450 $ 15,638 $ 79 $ 8,459 $ — Other property income 727 — 149 38 534 6 Total income 37,353 12,450 15,787 117 8,993 6 Operating expenses 13,180 618 7,245 760 3,963 594 Net operating income (loss) $ 24,173 $ 11,832 $ 8,542 $ (643 ) $ 5,030 $ (588 ) Non-allocated expenses (a) (25,921 ) Other income and expenses (b) (2,279 ) Gain on sale of investment properties (c) 8,841 Net income $ 4,814 Balance Sheet Data Real estate assets, net (d) $ 317,136 $ 34,755 $ 66,276 $ 26,400 $ 180,753 $ 8,952 Non-segmented assets (e) 83,096 Total assets 400,232 Capital expenditures $ 1,011 $ — $ 468 $ — $ 543 $ — (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 other asset. (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 operating income (loss) by segment for the year ended December 31, 2018 . Total Net Lease Retail Multi-Tenant Office Multi-family Other Rental income $ 42,761 $ 12,725 $ 23,126 $ 4,526 $ 2,384 $ — Other property income 748 — 39 523 186 — Total income 43,509 12,725 23,165 5,049 2,570 — Operating expenses and real estate taxes 13,920 577 9,461 2,702 1,063 117 Net operating income (loss) $ 29,589 $ 12,148 $ 13,704 $ 2,347 $ 1,507 $ (117 ) Non-allocated expenses (a) (24,781 ) Other income and expenses (b) (1,877 ) Provision for asset impairment (c) (4,667 ) Gain on sale of investment properties (d) 27,863 Loss on extinguishment of debt (e) (1,199 ) Net income $ 24,928 Balance Sheet Data Real estate assets, net (f) $ 242,145 $ 36,318 $ 113,853 $ 28,337 $ 54,159 $ 9,478 Non-segmented assets (g) $ 93,835 Total assets $ 335,980 Capital expenditures $ 4,251 $ — $ 676 $ 3,547 $ 35 $ (7 ) (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) Provision for asset impairment includes $4,667 related to one net lease asset and one land parcel. (d) Gain on sale of investment properties is related to the disposition of one multi-tenant office asset, one other asset and one retail asset. (e) Loss on extinguishment of debt is related to prepayment penalties on the payoff of mortgage debt (f) Real estate assets include intangible assets, net of amortization. (g) Non-segmented assets include cash and cash equivalents, restricted cash and escrows, accounts and rents receivable, and deferred costs and other assets.

Earnings Per Share

Earnings Per Share	12 Months Ended
	Dec. 31, 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): Year Ended December 31, 2019 2018 Numerator: Net income attributable to Highlands REIT, Inc. common stockholders $ 4,849 $ 24,928 Denominator: Weighted average shares outstanding - basic and diluted 875,313,817 871,177,934 Basic and diluted income per share: Net income per common share $ 0.01 $ 0.03

Share Based Compensation

Share Based Compensation	12 Months Ended
	Dec. 31, 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 year ended December 31, 2019 , the Company granted 6,100,002 of fully vested shares of common stock with an aggregate value of $2,135 based on an estimated fair value per share of $0.35 . Additionally, under ASC 718, pursuant to an employment agreement with one of its executive officers, the Company granted shares with an aggregate value of $125 that will fully vest in August 2020 , subject to the applicable executive's continued employment with the Company through the vesting date. Under the Incentive Award Plan, the Company is authorized to grant up to 43,000,000 shares of the Company's common stock pursuant to awards under the plan. At December 31, 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 December 31, 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 December 31, 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. The Company recognized stock-based compensation expense for the years ended December 31, 2019 and 2018 of $2,242 and $2,497 , respectively, related to the Incentive Award Plan. At December 31, 2019 , there was approximately $49 of estimated unrecognized compensation expense related to these awards. For the years ended December 31, 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 first quarter of 2018. The shares were repurchased for $0.33 per share, which was based on the Company's estimated share value as of December 31, 2017.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 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 and its assets, including taxes attributable to periods prior to the separation and distribution. InvenTrust has agreed to indemnify the Company for any taxes attributable to InvenTrust’s or MB REIT’s failure to maintain its qualification as a REIT for any taxable year ending on or before December 31, 2016.

Quarterly Supplemental Financia

Quarterly Supplemental Financial Information (unaudited)	12 Months Ended
	Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]
Quarterly Supplemental Financial Information (unaudited)	Quarterly Supplemental Financial Information (unaudited) The following represents the results of operations, for each quarterly period, during 2019 and 2018 . For the Quarter Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Total revenues $ 10,257 $ 10,401 $ 9,198 $ 7,497 Property operating expenses 1,904 1,985 1,565 2,035 Real estate taxes 1,306 1,317 1,156 1,912 Depreciation and amortization 2,730 2,729 3,109 4,446 General and administrative expenses 4,383 3,082 2,373 3,069 Total expenses 10,323 9,113 8,203 11,462 Gain on sale of investment properties — 8,841 — — (Loss) income from operations (66 ) 10,129 995 (3,965 ) Interest income 369 398 581 302 Interest expense (758 ) (1,006 ) (1,058 ) (1,107 ) Net (loss) income (455 ) 9,521 518 (4,770 ) Net loss (income) attributable to non-controlling interests $ — $ — $ (10 ) $ 45 Net (loss) income attributable to Highlands REIT, Inc. common stockholders $ (455 ) $ 9,521 $ 508 $ (4,725 ) Net (loss) income per common share, basic and diluted $ 0.00 $ 0.01 $ 0.00 $ (0.01 ) Weighted average number of common shares outstanding, basic and diluted (a) 873,379,003 875,755,799 876,007,008 876,074,038 For the Quarter Ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Total revenues $ 10,645 $ 10,823 $ 11,649 $ 10,392 Property operating expenses 2,304 1,991 2,353 2,244 Real estate taxes 1,474 766 1,388 1,400 Depreciation and amortization 3,131 3,216 3,406 2,425 General and administrative expenses 4,179 3,004 2,594 2,826 Provision for asset impairment — — — 4,667 Total expenses 11,088 8,977 9,741 13,562 Gain on sale of investment properties 25 — 12,276 15,562 (Loss) income from operations (418 ) 1,846 14,184 12,392 Interest income 133 157 81 126 Loss on extinguishment of debt — — (1,199 ) — Other income — — 23 7 Interest expense (706 ) (708 ) (700 ) (445 ) (Loss) income before income taxes (991 ) 1,295 12,389 12,080 Income tax benefit 155 — — — Net (loss) income (836 ) 1,295 12,389 12,080 Net (loss) income per common share, basic and diluted $ 0.00 $ 0.00 $ 0.01 $ 0.01 Weighted average number of common shares outstanding, basic and diluted (a) 870,102,100 871,427,298 871,537,188 871,624,475 (a) Quarterly income per common share amounts may not total the annual amounts due to rounding and the changes in number of weighted common shares outstanding.

Schedule III Real Estate and Ac

Schedule III Real Estate and Accumulated Depreciation	12 Months Ended
	Dec. 31, 2019
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract]
Schedule III Real Estate and Accumulated Depreciation	Initial Cost (A) Gross amount at which carried at end of period Encumbrance Land Buildings and Improvements Adjustments to Land Basis (B) Adjustments to Building Basis (B) Land Buildings and Improvements Total (C) Accumulated Depreciation (D,E) Date of Completion of Construction or Acquisition Retail BUCKHORN PLAZA 10,142 1,651 11,770 (35 ) 2,221 1,616 13,991 15,607 6,763 2006 Bloomsburg, PA SHERMAN PLAZA 9,655 30,982 9,360 9,655 40,341 49,996 17,988 2006 Evanston, IL STATE STREET MARKET 9,166 3,950 14,184 1,821 3,950 16,006 19,956 7,930 2006 Rockford, IL THE MARKET AT HILLIARD 15,511 4,432 13,308 3,483 4,432 16,791 21,223 7,824 2005 Hilliard, OH Net Lease CITIZENS (CFG) RHODE ISLAND 1,278 3,817 (702 ) (2,947 ) 576 870 1,446 233 1970 Providence, RI ATLAS - ST PAUL 3,890 10,093 3,890 10,093 13,983 4,327 2007 St. Paul, MN ATLAS-NEW ULM 900 9,359 900 9,359 10,259 4,019 2007 New Ulm, MN HUDSON CORRECTIONAL FACILITY 1,382 (908 ) 18,017 474 18,017 18,491 845 2009 Hudson, CO Initial Cost (A) Gross amount at which carried at end of period Encumbrance Land Buildings and Improvements Adjustments to Land Basis (B) Adjustments to Building Basis (B) Land Buildings and Improvements Total (C) Accumulated Depreciation (D,E) Date of Completion of Construction or Acquisition Multi-tenant office TRIMBLE I 12,732 10,045 5,784 12,732 15,829 28,561 2,161 2013 San Jose, CA Multi-family BUERGER BROTHER LOFTS 3,117 7,114 183 3,117 7,297 10,414 607 2017 Denver, CO CHAMBER LOFTS 2,797 6,388 83 2,797 6,471 9,268 538 2017 Denver, CO THE LAFAYETTE 2,457 7,067 149 2,457 7,216 9,673 406 2018 Denver, CO KENILWORTH COURT 2,496 3,203 7 2,496 3,210 5,706 149 2018 Denver, CO 1620 CENTRAL STREET 3,075 17,140 93 3,075 17,233 20,308 864 2018 Evanston, IL THE DETROIT AND DETROIT TERRACES 11,449 3,370 15,006 — 3,370 15,006 18,376 531 2019 Denver, CO TENNYSON 1,533 17,410 — 1,533 17,410 18,943 349 2019 Denver, CO THE MUSE 5,303 42,809 7 5,303 42,816 48,119 281 2019 Denver, CO THE VIEW 7,272 8,862 10 7,272 8,869 16,141 254 2019 San Diego, CA THE LOCALE (FORMERLY EVOLVE AT ALLENDALE) 18,658 4,294 22,461 46 4,294 22,507 26,801 357 2019 Allendale, MI Other PALAZZO DEL LAGO 8,938 19 8,938 19 8,957 5 2010 Orlando, FL Totals $ 64,926 $ 84,522 $ 251,018 $ (1,645 ) $ 38,336 $ 82,877 $ 289,351 $ 372,228 $ 56,431 Notes to Schedule III: The aggregate cost of real estate owned at December 31, 2019 for U.S. federal income tax purposes was approximately $445,244 (unaudited). (A) The initial cost to the Company represents the original purchase price of the asset, including amounts incurred subsequent to acquisition which were contemplated at the time the asset was acquired. (B) Adjustments to basis include provisions for asset impairments, partial dispositions and costs capitalized subsequent to acquisitions. (C) Reconciliation of real estate owned: 2019 2018 Balance at January 1 $ 314,527 $ 375,367 Acquisitions and capital improvements 129,407 38,303 Dispositions and write-offs (71,706 ) (73,105 ) Asset impairments — (26,038 ) Balance at December 31, $ 372,228 $ 314,527 (D) Reconciliation of accumulated depreciation: 2019 2018 Balance at January 1 $ 72,822 $ 109,928 Depreciation expense 9,637 10,984 Dispositions and write-offs (26,028 ) (26,720 ) Asset impairments — (21,370 ) Balance at December 31, $ 56,431 $ 72,822 (E) Depreciation is computed based upon the following estimated lives: Buildings and improvements 30 years Tenant improvements Life of the lease Furniture, fixtures, & equipment 5-15 years

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements include the accounts of Highlands, as well as all of Highlands' consolidated subsidiaries (collectively, “the Company”).
Principles of Consolidation	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 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 it or the lessee is the owner of the tenant improvements for accounting purposes. These factors include: • whether the lease stipulates how and on what a tenant improvement allowance may be spent; • whether the tenant or landlord retains legal title to the improvements; • the uniqueness of the improvements; • the expected economic life of the tenant improvements relative to the length of the lease; and • who constructs or directs the construction of the improvements. The determination of who owns the tenant improvements, for accounting purposes, is subject to significant judgment. In making that determination, we consider all of the above factors. No one factor, however, necessarily establishes its determination. Rental income is recognized on a straight-line basis over the term of each lease. The difference between rental income earned on a straight-line basis and the cash rent due under the provisions of the lease agreements is recorded as deferred rent receivable and is included as a component of accounts and rents receivable in the accompanying consolidated balance sheets. Rental income 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 during the year ended December 31, 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 consolidated balance sheets, and are amortized as either a decrease (in the case of above-market leases) or an increase (in the case of below-market leases) to rental income over the remaining term of the associated tenant lease. The values associated with in-place leases are recorded in intangible assets, net in the consolidated balance sheets and are amortized to depreciation and amortization expense in the 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	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 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 while undiscounted cash flows from the anticipated use and disposal of the association long-lived asset, the Company records an impairment loss to the extent that the carrying value exceeds the property's 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. The Company recorded $4,667 of impairments during the year ended December 31, 2018. There were no such impairments during the year ended December 31, 2019. See Note 9 to the consolidated financial statements for additional information.
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 consolidated financial statements. The adoption of ASU No. 2018-13 is not expected to have a material impact on the 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 have elected these practical expedients and adopted ASC 842 on January 1, 2019 using the effective date as our date of initial application and no transition adjustment was recorded. Therefore, financial information and disclosures under ASC 842 will not be provided for periods prior to January 1, 2019. The Company has 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 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 on the consolidated balance sheet, included in deferred costs and other assets and other liabilities, with a balance as of December 31, 2019 of approximately $298 , 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 the adoption date. 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 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 consolidated statements of cash flow. The Company is required to escrow cash balances for specific uses stipulated by certain of its lenders and other various agreements. As of December 31, 2019 and 2018, the Company’s cash balances restricted for these uses were $2,651 and $3,229 , respectively. December 31, 2019 December 31, 2018 Cash and cash equivalents $ 75,404 $ 80,512 Restricted cash 2,651 3,229 Total cash, cash equivalents and restricted cash $ 78,055 $ 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 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 consolidated financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Schedule of Cash and Restricted Cash	December 31, 2019 December 31, 2018 Cash and cash equivalents $ 75,404 $ 80,512 Restricted cash 2,651 3,229 Total cash, cash equivalents and restricted cash $ 78,055 $ 83,741

Acquired Properties (Tables)

Acquired Properties (Tables)	12 Months Ended
	Dec. 31, 2019
Asset Acquisitions [Abstract]
Schedule Of Asset Acquisitions	The following table reflects the properties acquired during the year ended December 31, 2019 . 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 Tennyson44 Denver, Colorado June 11, 2019 19,191 The Locale (formerly Evolve at Allendale) (1) Allendale, MI August 16, 2019 27,696 The Muse Denver, Colorado October 24, 2019 48,803 $ 131,180 (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 8. 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 noncontrolling interests in our consolidated financial statements. The purchase price allocation has been recorded as follows: The Detroit and Detroit Terraces The View Tennyson44 The Locale The Muse Total Land $ 3,370 $ 7,272 $ 1,533 $ 4,295 $ 5,303 $ 21,773 Buildings and other improvements 15,006 8,862 17,410 22,460 42,809 106,547 Intangible assets, net 301 286 248 941 691 2,467 Total assets $ 18,677 $ 16,420 $ 19,191 $ 27,696 $ 48,803 $ 130,787 — Debt discount on mortgage assumption 393 — — — — 393 Total liabilities $ 393 $ — $ — $ — $ — $ 393 Total acquisition price $ 19,070 $ 16,420 $ 19,191 $ 27,696 $ 48,803 $ 131,180 The following table reflects the properties acquired during the year ended December 31, 2018. 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 recorded 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 Assets (Tables)

Disposed Assets (Tables)	12 Months Ended
	Dec. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Sales Activity and Operations	The following table reflects the property dispositions during the year ended December 31, 2019. Property Location 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 year ended December 31, 2018. Property Location Date Gross Disposition Price Sale Proceeds, Net Gain on Sale Buckhorn Plaza (partial lot sale) Bloomsburg, PA 8-Feb-18 $ 60 $ 60 $ 25 Rolling Plains (correctional facility) Haskell, TX 7-Aug-18 3,600 3,237 3,368 Triangle Center (1) Longview, WA 24-Sep-18 38,340 37,425 8,908 Bridgeside Point Pittsburgh, PA 28-Dec-18 38,500 35,804 15,562 $ 80,500 $ 76,526 $ 27,863 (1) Mortgage debt in the amount of $19,479 was paid off with the proceeds from the sale.

Accounts Payable and Accrued _2

Accounts Payable and Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2019
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Expenses	Accounts payable and accrued expenses consist of the following: Year ended December 31, 2019 2018 Accrued real estate taxes $ 6,372 $ 5,669 Accrued compensation 3,606 3,232 Accrued interest payable 369 119 Other accrued expenses 1,188 2,633 Total accounts payable and accrued expenses $ 11,535 $ 11,653

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Lease Income	Lease income related to the Company's operating leases is comprised of the following: Year ended December 31, 2019 2018 Lease income related to fixed lease payments $ 30,391 $ 34,966 Lease income related to variable lease payments 6,235 7,795 Other (1) 727 748 Lease income $ 37,353 $ 43,509 (1) For the year ended December 31, 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 December 31, 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. 2020 $ 10,282 2021 8,597 2022 6,133 2023 5,533 2024 5,059 Thereafter 12,338 Total $ 47,942
Operating leases under Topic 840	As of December 31, 2018, commercial operating leases provide for future minimum rental income assuming no expiring leases are renewed, as follows: 2019 $ 29,214 2020 17,418 2021 14,014 2022 11,423 2023 10,358 Thereafter 36,357 Total $ 118,784
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 December 31, 2019 and a reconciliation of those cash flows to the operating lease liability at December 31, 2019. 2020 $ 21 2021 21 2022 21 2023 21 2024 21 Thereafter 373 478 Imputed interest (180 ) Lease liability $ 298

Intangible Assets (Tables)

Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of identified intangible assets and intangible liabilities	The following table summarizes the Company's identified intangible assets and intangible liabilities as of December 31, 2019 and 2018 . Balance as of December 31, 2019 2018 Intangible Assets: Acquired in-place lease $ 22,165 $ 19,884 Acquired above market lease — 127 Accumulated amortization (20,826 ) (19,603 ) Intangible assets, net $ 1,339 $ 408 Intangible liabilities: Acquired below market leases $ 2,629 $ 8,106 Accumulated amortization (1,787 ) (5,102 ) Intangible Liabilities, net $ 842 $ 3,004
Summary of amortization of identified intangible assets and liabilities	The following table summarizes the amortization related to acquired above and below market lease costs and acquired in-place lease intangibles for the years ended December 31, 2019 and 2018 . Year ended December 31, 2019 2018 Amortization of: Acquired above market lease $ (1 ) $ (2 ) Acquired below market lease 267 409 Net revenues increase $ 266 $ 407 Acquired in-place lease intangibles $ 1,529 $ 735 The following table presents the amortization during the next five years and thereafter related to intangible assets and liabilities as of December 31, 2019 . 2020 2021 2022 2023 2024 Thereafter Total Amortization of: Acquired below market lease $ 99 $ 85 $ 85 $ 85 $ 85 $ 403 $ 842 Net revenues increase $ 99 $ 85 $ 85 $ 85 $ 85 $ 403 $ 842 Acquired in-place lease intangibles $ 1,339 $ — $ — $ — $ — $ — $ 1,339
Summary of accretion income for below market leases	The following table summarizes the amortization related to acquired above and below market lease costs and acquired in-place lease intangibles for the years ended December 31, 2019 and 2018 . Year ended December 31, 2019 2018 Amortization of: Acquired above market lease $ (1 ) $ (2 ) Acquired below market lease 267 409 Net revenues increase $ 266 $ 407 Acquired in-place lease intangibles $ 1,529 $ 735 The following table presents the amortization during the next five years and thereafter related to intangible assets and liabilities as of December 31, 2019 . 2020 2021 2022 2023 2024 Thereafter Total Amortization of: Acquired below market lease $ 99 $ 85 $ 85 $ 85 $ 85 $ 403 $ 842 Net revenues increase $ 99 $ 85 $ 85 $ 85 $ 85 $ 403 $ 842 Acquired in-place lease intangibles $ 1,339 $ — $ — $ — $ — $ — $ 1,339

Debt (Tables)

Debt (Tables)	12 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
Schedule of Debt Transactions	During the years ended December 31, 2019 and 2018 , the following principal debt transactions occurred: Balance at December 31, 2017 $ 55,886 Paydown of debt (20,443 ) Balance at December 31, 2018 35,443 Assumption of mortgage debt on acquired properties — 11,449 Proceeds from credit agreement 30,000 Proceeds from mortgage debt 18,750 Paydown of debt (716 ) Balance at December 31, 2019 $ 94,926
Scheduled Maturities of Mortgage Indebtedness	As of December 31, 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 December 31, 2019 Weighted average interest rate 2020 $ — — % 2021 — — % 2022 9,166 5.24 % 2023 18,658 3.28 % (1) 2024 30,000 3.60 % Thereafter 37,102 4.38 % Total $ 94,926 4.00 % (1) See below for discussion of the swap agreement entered into with the mortgage loan obtained in connection with the acquisition of the The Locale (formerly Evolve at Allendale) asset. The weighted average interest rate reflected is the strike rate.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Schedule of Assets Measured on a Non-Recurring Basis	The following table presents these assets measured at fair value on a nonrecurring basis as of December 31, 2018 aggregated by the level within the fair value hierarchy in which those measurements fall. Methods and assumptions used to estimate the fair value of these assets are described after the table. Fair Value Level 1 Level 2 Level 3 Total Provision for impairment December 31, 2018 Investment Properties — — $ 19,225 (a) $ 19,225 $ 4,667 (a) The estimate of fair value of the land parcel was based on recent negotiations for the sale of similar assets to third parties. The estimate of fair value relating to the correctional facility's impairment analysis was based on a 10 -year discounted cash flow model. The cash flows consist of observable inputs such as contractual revenues and unobservable inputs such as forecasted revenues and expenses. These unobservable inputs are based on market conditions and the Company’s expected growth rates. Capitalization rates ranging from 4.00% to 10.50% and discount rates ranging from 5.30% to 11.00% were utilized in the models and are based upon observable rates that the Company believes to be within a reasonable range of current market rates. December 31, 2019 Level 1 Level 2 Level 3 Total Derivative financial instruments designated as cash flow hedges: Classified as assets in “Deferred costs and other assets” $ — $ 21 $ — $ 21
Schedule of the Fair Value of Financial Instruments	The table below represents the fair value of financial instruments presented at carrying values in the consolidated financial statements as of December 31, 2019 and 2018 . December 31, 2019 December 31, 2018 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Mortgages payable and term loan $ 94,926 $ 94,934 $ 35,443 $ 35,222

Segment Reporting (Tables)

Segment Reporting (Tables)	12 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
Summary of Net Property Operations	The following table summarizes net operating income (loss) by segment for the year ended December 31, 2019 . Total Net Lease Retail Multi-Tenant Office Multi-family Other Rental income $ 36,626 $ 12,450 $ 15,638 $ 79 $ 8,459 $ — Other property income 727 — 149 38 534 6 Total income 37,353 12,450 15,787 117 8,993 6 Operating expenses 13,180 618 7,245 760 3,963 594 Net operating income (loss) $ 24,173 $ 11,832 $ 8,542 $ (643 ) $ 5,030 $ (588 ) Non-allocated expenses (a) (25,921 ) Other income and expenses (b) (2,279 ) Gain on sale of investment properties (c) 8,841 Net income $ 4,814 Balance Sheet Data Real estate assets, net (d) $ 317,136 $ 34,755 $ 66,276 $ 26,400 $ 180,753 $ 8,952 Non-segmented assets (e) 83,096 Total assets 400,232 Capital expenditures $ 1,011 $ — $ 468 $ — $ 543 $ — (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 other asset. (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 operating income (loss) by segment for the year ended December 31, 2018 . Total Net Lease Retail Multi-Tenant Office Multi-family Other Rental income $ 42,761 $ 12,725 $ 23,126 $ 4,526 $ 2,384 $ — Other property income 748 — 39 523 186 — Total income 43,509 12,725 23,165 5,049 2,570 — Operating expenses and real estate taxes 13,920 577 9,461 2,702 1,063 117 Net operating income (loss) $ 29,589 $ 12,148 $ 13,704 $ 2,347 $ 1,507 $ (117 ) Non-allocated expenses (a) (24,781 ) Other income and expenses (b) (1,877 ) Provision for asset impairment (c) (4,667 ) Gain on sale of investment properties (d) 27,863 Loss on extinguishment of debt (e) (1,199 ) Net income $ 24,928 Balance Sheet Data Real estate assets, net (f) $ 242,145 $ 36,318 $ 113,853 $ 28,337 $ 54,159 $ 9,478 Non-segmented assets (g) $ 93,835 Total assets $ 335,980 Capital expenditures $ 4,251 $ — $ 676 $ 3,547 $ 35 $ (7 ) (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) Provision for asset impairment includes $4,667 related to one net lease asset and one land parcel. (d) Gain on sale of investment properties is related to the disposition of one multi-tenant office asset, one other asset and one retail asset. (e) Loss on extinguishment of debt is related to prepayment penalties on the payoff of mortgage debt (f) Real estate assets include intangible assets, net of amortization. (g) Non-segmented assets include cash and cash equivalents, restricted cash and escrows, accounts and rents receivable, and deferred costs and other assets.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 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): Year Ended December 31, 2019 2018 Numerator: Net income attributable to Highlands REIT, Inc. common stockholders $ 4,849 $ 24,928 Denominator: Weighted average shares outstanding - basic and diluted 875,313,817 871,177,934 Basic and diluted income per share: Net income per common share $ 0.01 $ 0.03

Share Based Compensation (Table

Share Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2019
Share-based Compensation [Abstract]
Summary of Stock Award Activity	A summary of the Company's stock awards activity as of December 31, 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 December 31, 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.

Quarterly Supplemental Financ_2

Quarterly Supplemental Financial Information (unaudited) (Tables)	12 Months Ended
	Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]
Summary of Quarterly Financial Information	The following represents the results of operations, for each quarterly period, during 2019 and 2018 . For the Quarter Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Total revenues $ 10,257 $ 10,401 $ 9,198 $ 7,497 Property operating expenses 1,904 1,985 1,565 2,035 Real estate taxes 1,306 1,317 1,156 1,912 Depreciation and amortization 2,730 2,729 3,109 4,446 General and administrative expenses 4,383 3,082 2,373 3,069 Total expenses 10,323 9,113 8,203 11,462 Gain on sale of investment properties — 8,841 — — (Loss) income from operations (66 ) 10,129 995 (3,965 ) Interest income 369 398 581 302 Interest expense (758 ) (1,006 ) (1,058 ) (1,107 ) Net (loss) income (455 ) 9,521 518 (4,770 ) Net loss (income) attributable to non-controlling interests $ — $ — $ (10 ) $ 45 Net (loss) income attributable to Highlands REIT, Inc. common stockholders $ (455 ) $ 9,521 $ 508 $ (4,725 ) Net (loss) income per common share, basic and diluted $ 0.00 $ 0.01 $ 0.00 $ (0.01 ) Weighted average number of common shares outstanding, basic and diluted (a) 873,379,003 875,755,799 876,007,008 876,074,038 For the Quarter Ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Total revenues $ 10,645 $ 10,823 $ 11,649 $ 10,392 Property operating expenses 2,304 1,991 2,353 2,244 Real estate taxes 1,474 766 1,388 1,400 Depreciation and amortization 3,131 3,216 3,406 2,425 General and administrative expenses 4,179 3,004 2,594 2,826 Provision for asset impairment — — — 4,667 Total expenses 11,088 8,977 9,741 13,562 Gain on sale of investment properties 25 — 12,276 15,562 (Loss) income from operations (418 ) 1,846 14,184 12,392 Interest income 133 157 81 126 Loss on extinguishment of debt — — (1,199 ) — Other income — — 23 7 Interest expense (706 ) (708 ) (700 ) (445 ) (Loss) income before income taxes (991 ) 1,295 12,389 12,080 Income tax benefit 155 — — — Net (loss) income (836 ) 1,295 12,389 12,080 Net (loss) income per common share, basic and diluted $ 0.00 $ 0.00 $ 0.01 $ 0.01 Weighted average number of common shares outstanding, basic and diluted (a) 870,102,100 871,427,298 871,537,188 871,624,475 (a) Quarterly income per common share amounts may not total the annual amounts due to rounding and the changes in number of weighted common shares outstanding.

Organization (Details)

Organization (Details)	Apr. 28, 2016$ / sharesshares	Dec. 31, 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		20	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

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details)	3 Months Ended				12 Months Ended
	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)parcelleased_asset
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Assets held for sale | $	$ 0				$ 0	$ 0
Provision for asset impairment | $	$ 4,667,000	$ 0	$ 0	$ 0	$ 0	$ 4,667,000
Buildings and improvements
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful lives					30 years
Furniture, fixtures, equipment and site improvements | Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful lives					5 years
Furniture, fixtures, equipment and site improvements | Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful lives					15 years
Net Lease
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of leased assets, impaired | leased_asset						1
Level 3 | Fair Value, Measurements, Nonrecurring
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of leased assets, impaired | parcel						1
Level 3 | Fair Value, Measurements, Nonrecurring | Net Lease
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of leased assets, impaired | leased_asset						1

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Jan. 01, 2019USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease liability	$ 298
Net cash flows used in financing activities	45,856	$ (22,477)
Restricted cash	2,651	$ 3,229
ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease liability			$ 298
ROU asset	$ 298
Discount rate
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Measurement input	0.045

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Cash and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Cash and cash equivalents	$ 75,404	$ 80,512
Restricted cash	2,651	3,229
Total cash, cash equivalents and restricted cash	$ 78,055	$ 83,741	$ 56,007

Acquired Properties - Additiona

Acquired Properties - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)buildingvariable_interest_entity	Dec. 31, 2018USD ($)building
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Acquisition of investment properties	$ 119,725	$ 36,014
Multi-family
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Number of properties acquired | building	6	3
Acquisition of investment properties	$ 131,180	$ 36,015
Capitalized transaction costs	$ 480	$ 240
Variable Interest Entity, Primary Beneficiary
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Number Of Variable Interest Entities | variable_interest_entity	1
Variable Interest Entity, Consolidated, Carrying Amount, Assets	$ 28,073
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities	$ 19,074

Acquired Properties - Propertie

Acquired Properties - Properties Acquired (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Acquisition of investment properties	$ 119,725	$ 36,014
Multi-family
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Acquisition of investment properties	131,180	36,015
The Detroit And Detroit Terraces | Multi-family
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Acquisition of investment properties	19,070
The View | Multi-family
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Acquisition of investment properties	16,420
The Tennyson44 | Multi-family
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Acquisition of investment properties	19,191
The Locale | Multi-family
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Acquisition of investment properties	27,696
The Muse | Multi-family
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Acquisition of investment properties	$ 48,803
The Lafayette | Multi-family
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Acquisition of investment properties		9,679
1620 Central Street | Multi-family
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Acquisition of investment properties		20,552
Kenilworth Court | Multi-family
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Acquisition of investment properties		$ 5,784

Acquired Assets - Purchase Pric

Acquired Assets - Purchase Price Allocation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Real Estate [Line Items]
Land	$ 82,877	$ 72,630
Building and other improvements	289,351	241,897
Real Estate Investment Property, at Cost	372,228	314,559
Payments to Acquire Real Estate	119,725	36,014
Multi-family
Real Estate [Line Items]
Land	21,773	8,028
Building and other improvements	106,547	27,403
Real Estate Investments, Other	2,467	584
Real Estate Investment Property, at Cost	130,787
Debt discounts on debt assumed	393
Real Estate Investment, Liabilities Assumed	393
Payments to Acquire Real Estate	131,180	36,015
The Detroit And Detroit Terraces | Multi-family
Real Estate [Line Items]
Land	3,370
Building and other improvements	15,006
Real Estate Investments, Other	301
Real Estate Investment Property, at Cost	18,677
Debt discounts on debt assumed	393
Real Estate Investment, Liabilities Assumed	393
Payments to Acquire Real Estate	19,070
The View | Multi-family
Real Estate [Line Items]
Land	7,272
Building and other improvements	8,862
Real Estate Investments, Other	286
Real Estate Investment Property, at Cost	16,420
Debt discounts on debt assumed	0
Real Estate Investment, Liabilities Assumed	0
Payments to Acquire Real Estate	16,420
The Tennyson44 | Multi-family
Real Estate [Line Items]
Land	1,533
Building and other improvements	17,410
Real Estate Investments, Other	248
Real Estate Investment Property, at Cost	19,191
Debt discounts on debt assumed	0
Real Estate Investment, Liabilities Assumed	0
Payments to Acquire Real Estate	19,191
The Locale | Multi-family
Real Estate [Line Items]
Land	4,295
Building and other improvements	22,460
Real Estate Investments, Other	941
Real Estate Investment Property, at Cost	27,696
Debt discounts on debt assumed	0
Real Estate Investment, Liabilities Assumed	0
Payments to Acquire Real Estate	27,696
The Muse | Multi-family
Real Estate [Line Items]
Land	5,303
Building and other improvements	42,809
Real Estate Investments, Other	691
Real Estate Investment Property, at Cost	48,803
Debt discounts on debt assumed	0
Real Estate Investment, Liabilities Assumed	0
Payments to Acquire Real Estate	$ 48,803
The Lafayette | Multi-family
Real Estate [Line Items]
Land		2,457
Building and other improvements		7,067
Real Estate Investments, Other		155
Payments to Acquire Real Estate		9,679
1620 Central Street | Multi-family
Real Estate [Line Items]
Land		3,075
Building and other improvements		17,133
Real Estate Investments, Other		344
Payments to Acquire Real Estate		20,552
Kenilworth Court | Multi-family
Real Estate [Line Items]
Land		2,496
Building and other improvements		3,203
Real Estate Investments, Other		85
Payments to Acquire Real Estate		$ 5,784

Disposed Assets - Activity (Det

Disposed Assets - Activity (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross disposition price	$ 56,350				$ 80,500				$ 56,350	$ 80,500
Proceeds from sale of investment properties, net									53,163	76,526
Gain (loss) on sale of investment properties	0	$ 0	$ 8,841	$ 0	15,562	$ 12,276	$ 0	$ 25	8,841	27,863
RDU Land
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross disposition price	600								600
Proceeds from sale of investment properties, net									554
Gain (loss) on sale of investment properties									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
Proceeds from sale of investment properties, net									52,609
Gain (loss) on sale of investment properties									8,812
Buckhorn Plaza
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross disposition price					60					60
Proceeds from sale of investment properties, net										60
Gain (loss) on sale of investment properties										25
Rolling Plains
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross disposition price					3,600					3,600
Proceeds from sale of investment properties, net										3,237
Gain (loss) on sale of investment properties										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
Proceeds from sale of investment properties, net										37,425
Gain (loss) on sale of investment properties										8,908
Bridgeside Point
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross disposition price					$ 38,500					38,500
Proceeds from sale of investment properties, net										35,804
Gain (loss) on sale of investment properties										$ 15,562
Mortgages
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Extinguishment of debt, amount									$ 19,479

Accounts Payable and Accrued _3

Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Accrued real estate taxes	$ 6,372	$ 5,669
Accrued compensation	3,606	3,232
Accrued interest payable	369	119
Other accrued expenses	1,188	2,633
Total accounts payable and accrued expenses	$ 11,535	$ 11,653

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2019	Jan. 01, 2019
Lessor, Lease, Description [Line Items]
Impairment of asset	$ 3,765
Lease liability		$ 298
Minimum
Lessor, Lease, Description [Line Items]
Lease terms	1 year	1 year
Lessee lease term		1 year
Maximum
Lessor, Lease, Description [Line Items]
Lease terms	20 years	10 years
Lessee lease term		15 years
ASU 2016-02
Lessor, Lease, Description [Line Items]
Lease liability			$ 298
Discount rate		4.50%
Alta Devices, Inc.
Lessor, Lease, Description [Line Items]
Letters of credit		$ 1,701
Lease inducement		1,249
lease commissions		1,169
Rent expense		$ 1,649
Customer concentration risk | Revenue | The GEO Group, Inc
Lessor, Lease, Description [Line Items]
Concentration percentage		26.70%

Leases - Lease Income (Details)

Leases - Lease Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Leases [Abstract]
Lease income related to fixed lease payments	$ 30,391	$ 34,966
Lease income related to variable lease payments	6,235	7,795
Other	727	748
Lease income	$ 37,353	$ 43,509

Leases - Receivable Maturity (D

Leases - Receivable Maturity (Details) $ in Thousands	Dec. 31, 2019USD ($)
Leases [Abstract]
2020	$ 10,282
2021	8,597
2022	6,133
2023	5,533
2024	5,059
Thereafter	12,338
Total	$ 47,942

Leases - Lessor Under Topic 840

Leases - Lessor Under Topic 840 (Details) $ in Thousands	Dec. 31, 2018USD ($)
Leases [Abstract]
2019	$ 29,214
2020	17,418
2021	14,014
2022	11,423
2023	10,358
Thereafter	36,357
Total	$ 118,784

Leases - Operating Lease Liabil

Leases - Operating Lease Liability Maturity (Details) $ in Thousands	Dec. 31, 2019USD ($)
Leases [Abstract]
2020	$ 21
2021	21
2022	21
2023	21
2024	21
Thereafter	373
Total	478
Imputed interest	(180)
Lease liability	$ 298

Intangible Assets - Summary (De

Intangible Assets - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Amortization of:
Accumulated amortization	$ (20,826)	$ (19,603)
Intangible assets, net	1,339	408
Intangible liabilities:
Acquired below market leases	2,629	8,106
Accumulated amortization	(1,787)	(5,102)
Total	842	3,004
Acquired in-place lease
Amortization of:
Intangible assets	22,165	19,884
Intangible assets, net	1,339
Acquired above market lease
Amortization of:
Intangible assets	$ 0	$ 127

Intangible Assets - Lease Amort

Intangible Assets - Lease Amortization, Rental Income Increase, and Lease Intangibles (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Amortization of:
Acquired below market lease	$ 267	$ 409
Net revenues increase	266	407
Acquired above market lease
Amortization of:
Intangible assets	1	2
Acquired in-place lease
Amortization of:
Intangible assets	$ 1,529	$ 735

Intangible Assets - Amortizatio

Intangible Assets - Amortization Schedule (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Amortization of:
Intangible assets, net	$ 1,339	$ 408
Acquired below market lease
2019	99
2020	85
2021	85
2022	85
2023	85
Thereafter	403
Total	842	$ 3,004
Net rental income increase, 2019	99
Net rental income increase, 2020	85
Net rental income increase, 2021	85
Net rental income increase, 2022	85
Net rental income increase, 2023	85
Net rental income increase, Thereafter	403
Net rental income increase, Total	842
Acquired in-place lease
Amortization of:
2019	1,339
2020	0
2021	0
2022	0
2023	0
Thereafter	0
Intangible assets, net	$ 1,339

Debt - Transactions (Details)

Debt - Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Movement in Debt [Roll Forward]
Beginning Balance	$ 35,443	$ 55,886
Paydown of debt	(716)	(20,443)
Assumptions of Mortgage Debt on Acquired Properties	11,449
Proceeds from credit agreement	29,400
Proceeds from mortgage debt	18,750
Ending Balance	$ 94,926	$ 35,443

Debt - Narrative (Details)

Debt - Narrative (Details) $ in Thousands	Aug. 16, 2019USD ($)	Feb. 15, 2019USD ($)extension_option	Jan. 08, 2019USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Debt Instrument [Line Items]
Debt, net				$ 93,203	$ 34,953
Debt discounts				(349)	0
Mortgages
Debt Instrument [Line Items]
Debt, net				$ 93,203	$ 34,953
Weighted average interest rate				4.00%	4.74%
Deferred financing costs, net				$ 1,374	$ 490
Line of Credit
Debt Instrument [Line Items]
Additional borrowing capacity, maximum		$ 100,000
The Detroit And Detroit Terraces
Debt Instrument [Line Items]
Business combination, liabilities incurred			$ 11,089
Debt discounts on debt assumed			$ 360
The Detroit And Detroit Terraces | Mortgages
Debt Instrument [Line Items]
Interest rate			3.99%
The Locale
Debt Instrument [Line Items]
Business combination, liabilities incurred	$ 18,750
The Locale | Mortgages
Debt Instrument [Line Items]
Interest rate	3.27%
Effective interest rate	3.46%
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Borrowing capacity		$ 50,000
Number of extension options | extension_option		2
Extension period		1 year
Extension fee percentage		0.15%
Letter of credit subfacility | Line of Credit
Debt Instrument [Line Items]
Percentage of capacity		10.00%
Term Loan Facility | Line of Credit
Debt Instrument [Line Items]
Borrowing capacity		$ 50,000
Unused commitment fee percentage		0.25%
Minimum | Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Unused commitment fee percentage		0.15%
Maximum | Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Unused commitment fee percentage		0.25%
Base rate | Minimum | Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Variable rate		1.00%
Base rate | Minimum | Term Loan Facility | Line of Credit
Debt Instrument [Line Items]
Variable rate		0.90%
Base rate | Maximum | Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Variable rate		1.30%
Base rate | Maximum | Term Loan Facility | Line of Credit
Debt Instrument [Line Items]
Variable rate		1.20%
LIBOR | Minimum | Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Variable rate		2.00%
LIBOR | Minimum | Term Loan Facility | Line of Credit
Debt Instrument [Line Items]
Variable rate		1.90%
LIBOR | Maximum | Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Variable rate		2.30%
LIBOR | Maximum | Term Loan Facility | Line of Credit
Debt Instrument [Line Items]
Variable rate		2.20%

Debt - Scheduled Maturities (De

Debt - Scheduled Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Total	$ 94,926	$ 35,443	$ 55,886
Mortgages
Debt Instrument [Line Items]
2020	0
2021	0
2022	9,166
2023	18,658
2024	30,000
Thereafter	37,102
Total	$ 94,926
Weighted average interest rate
2020	0.00%
2021	0.00%
2022	5.24%
2023	3.28%
2024	3.60%
Thereafter	4.38%
Total	4.00%	4.74%

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details)	12 Months Ended
	Dec. 31, 2019USD ($)derivative_instrument	Dec. 31, 2018USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash flow hedge gain (loss)	$ 16,000
Unrealized gain on derivatives	$ 21,000	$ 0
Discount rate | Long-term debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long term debt measurement input	0.0393	0.0470
Discount rate | Long-term debt | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long term debt measurement input	0.0342	0.0418
Discount rate | Long-term debt | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long term debt measurement input	0.0493	0.0503
Interest Rate Swap | Cash Flow Hedging
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Number of instruments held | derivative_instrument	1
Notional amount	$ 18,750,000

Fair Value Measurements - Deriv

Fair Value Measurements - Derivative Assets (Details) - Fair Value, Measurements, Recurring $ in Thousands	Dec. 31, 2019USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred costs and other assets	$ 21
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred costs and other assets	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred costs and other assets	21
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred costs and other assets	$ 0

Fair Value Measurements - Non-R

Fair Value Measurements - Non-Recurring Measurements (Details) $ in Thousands	3 Months Ended				12 Months Ended
	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)parcelleased_asset
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Provision for asset impairment | $	$ 4,667	$ 0	$ 0	$ 0	$ 0	$ 4,667
Term of discounted cash flow model					10 years
Net Lease
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of leased assets, impaired | leased_asset						1
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Capitalization rate						4.00%
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Capitalization rate						10.50%
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment properties | $	$ 19,225					$ 19,225
Fair Value, Measurements, Nonrecurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of leased assets, impaired | parcel						1
Fair Value, Measurements, Nonrecurring | Level 3 | Net Lease
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of leased assets, impaired | leased_asset						1
Discount rate | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Leased asset measurement input	0.0530					0.0530
Discount rate | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Leased asset measurement input	0.1100					0.1100

Fair Value Measurements - Not M

Fair Value Measurements - Not Measured at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgages payable and term loan	$ 94,926	$ 35,443
Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgages payable and term loan	$ 94,934	$ 35,222

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended				12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income tax benefit	$ 0	$ 0	$ 0	$ 155,000	$ 0	$ 155,000
Unrecognized tax benefits					$ 0

Segment Reporting - Narrative (

Segment Reporting - Narrative (Details) $ in Thousands	3 Months Ended				12 Months Ended
	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2019USD ($)segmentleased_asset	Dec. 31, 2018USD ($)parcelleased_asset
Concentration Risk [Line Items]
Number of business segments (in segments) | segment					4
Provision for asset impairment | $	$ 4,667	$ 0	$ 0	$ 0	$ 0	$ 4,667
Multi-Tenant Office
Concentration Risk [Line Items]
Number of leased assets						1
Net Lease
Concentration Risk [Line Items]
Number of leased assets, impaired						1
Retail
Concentration Risk [Line Items]
Number of leased assets					1	1
Other
Concentration Risk [Line Items]
Number of leased assets					1

Segment Reporting - Net Propert

Segment Reporting - Net Property Operations (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Rental income									$ 36,626	$ 42,761
Total revenues	$ 7,497	$ 9,198	$ 10,401	$ 10,257	$ 10,392	$ 11,649	$ 10,823	$ 10,645
Operating expenses									13,180	13,920
Net operating income (loss)									24,173	29,589
Provision for asset impairment					(4,667)	0	0	0	0	(4,667)
Gain (loss) on sale of investment properties	0	0	8,841	0	15,562	12,276	0	25	8,841	27,863
(Loss) gain on extinguishment of debt					0	(1,199)	0	0	0	(1,199)
Net income	(4,770)	$ 518	$ 9,521	$ (455)	12,080	$ 12,389	$ 1,295	$ (836)	4,814	24,928
Balance Sheet Data
Total assets	400,232				335,980				400,232	335,980
Capital expenditures									1,011	4,251
Other
Segment Reporting Information [Line Items]
Rental income									0	0
Operating expenses									594	117
Net operating income (loss)									(588)	(117)
Balance Sheet Data
Total assets	8,952				9,478				8,952	9,478
Capital expenditures									0	(7)
Reconciling items
Segment Reporting Information [Line Items]
Non-allocated expenses									(25,921)	(24,781)
Other income and expenses									(2,279)	(1,877)
Balance Sheet Data
Total assets	83,096				93,835				83,096	93,835
Operating segments and corporate, non-segment
Balance Sheet Data
Total assets	317,136				242,145				317,136	242,145
Net Lease | Operating segments
Segment Reporting Information [Line Items]
Rental income									12,450	12,725
Operating expenses									618	577
Net operating income (loss)									11,832	12,148
Balance Sheet Data
Total assets	34,755				36,318				34,755	36,318
Capital expenditures									0	0
Retail | Operating segments
Segment Reporting Information [Line Items]
Rental income									15,638	23,126
Operating expenses									7,245	9,461
Net operating income (loss)									8,542	13,704
Balance Sheet Data
Total assets	66,276				113,853				66,276	113,853
Capital expenditures									468	676
Multi-Tenant Office | Operating segments
Segment Reporting Information [Line Items]
Rental income									79	4,526
Operating expenses									760	2,702
Net operating income (loss)									(643)	2,347
Balance Sheet Data
Total assets	26,400				28,337				26,400	28,337
Capital expenditures									0	3,547
Multi-family | Operating segments
Segment Reporting Information [Line Items]
Rental income									8,459	2,384
Operating expenses									3,963	1,063
Net operating income (loss)									5,030	1,507
Balance Sheet Data
Total assets	$ 180,753				$ 54,159				180,753	54,159
Capital expenditures									543	35
Other property income
Segment Reporting Information [Line Items]
Total revenues									727	748
Other property income | Other
Segment Reporting Information [Line Items]
Total revenues									6	0
Other property income | Net Lease | Operating segments
Segment Reporting Information [Line Items]
Total revenues									0	0
Other property income | Retail | Operating segments
Segment Reporting Information [Line Items]
Total revenues									149	39
Other property income | Multi-Tenant Office | Operating segments
Segment Reporting Information [Line Items]
Total revenues									38	523
Other property income | Multi-family | Operating segments
Segment Reporting Information [Line Items]
Total revenues									534	186
Total revenues
Segment Reporting Information [Line Items]
Total revenues									37,353	43,509
Total revenues | Other
Segment Reporting Information [Line Items]
Total revenues									6	0
Total revenues | Net Lease | Operating segments
Segment Reporting Information [Line Items]
Total revenues									12,450	12,725
Total revenues | Retail | Operating segments
Segment Reporting Information [Line Items]
Total revenues									15,787	23,165
Total revenues | Multi-Tenant Office | Operating segments
Segment Reporting Information [Line Items]
Total revenues									117	5,049
Total revenues | Multi-family | Operating segments
Segment Reporting Information [Line Items]
Total revenues									$ 8,993	$ 2,570

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Numerator:
Net income attributable to Highlands REIT, Inc. common stockholders	$ (4,725)	$ 508	$ 9,521	$ (455)					$ 4,849	$ 24,928
Denominator:
Weighted average shares outstanding - basic and diluted (in shares)	876,074,038	876,007,008	875,755,799	873,379,003	871,624,475	871,537,188	871,427,298	870,102,100	875,313,817	871,177,934
Basic and diluted income per share:
Net income per common share, basic and diluted (in dollars per share)	$ (0.01)	$ 0	$ 0.01	$ 0	$ 0.01	$ 0.01	$ 0	$ 0	$ 0.01	$ 0.03

Share Based Compensation (Detai

Share Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Apr. 28, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense			$ 2,497
Unrecognized compensation expense		$ 49
Payment for tax withholding for share-based compensation		$ 1,177	$ 876
Stock repurchased and retired (in shares)	116,334
Stock repurchased and retired (in dollars per share)				$ 0.33
Incentive awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to grant (up to) (in shares)					43,000,000
Shares available for future issuance (in shares)		17,465,437
Stock Awards
Beginning balance (in shares)		2,121,212
Granted (in shares)		6,100,002
Vested (in shares)		(7,742,859)
Forfeited (in shares)		(121,212)
Ending balance (in shares)		357,143	2,121,212
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	$ 0.33
Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate value of shares granted		$ 2,135
Stock Awards
Granted (in shares)		6,100,002
Weighted Average Grant Date Fair Value
Granted (in dollars per share)		$ 0.35
Executive Officer | Incentive awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate value of shares granted		$ 125

Quarterly Supplemental Financ_3

Quarterly Supplemental Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Total revenues	$ 7,497	$ 9,198	$ 10,401	$ 10,257	$ 10,392	$ 11,649	$ 10,823	$ 10,645
Property operating expenses	2,035	1,565	1,985	1,904	2,244	2,353	1,991	2,304	$ 7,489	$ 8,892
Real estate taxes	1,912	1,156	1,317	1,306	1,400	1,388	766	1,474	5,691	5,028
Depreciation and amortization	4,446	3,109	2,729	2,730	2,425	3,406	3,216	3,131	13,014	12,178
General and administrative expenses	3,069	2,373	3,082	4,383	2,826	2,594	3,004	4,179	12,907	12,603
Provision for asset impairment					4,667	0	0	0	0	4,667
Total expenses	11,462	8,203	9,113	10,323	13,562	9,741	8,977	11,088	39,101	43,368
Interest income	0	0	8,841	0	15,562	12,276	0	25	8,841	27,863
(Loss) income from operations	(3,965)	995	10,129	(66)	12,392	14,184	1,846	(418)	7,093	26,805
Interest income	302	581	398	369	126	81	157	133	1,650	497
(Loss) gain on extinguishment of debt					0	(1,199)	0	0	0	(1,199)
Other income					7	23	0	0	0	30
Interest expense	(1,107)	(1,058)	(1,006)	(758)	(445)	(700)	(708)	(706)	(3,929)	(2,559)
(Loss) income before income taxes					12,080	12,389	1,295	(991)	4,814	24,773
Income tax benefit					0	0	0	155	0	155
Net (loss) income	(4,770)	518	9,521	(455)	$ 12,080	$ 12,389	$ 1,295	$ (836)	4,814	24,928
Net loss attributable to non-controlling interests	45	(10)	0	0					35	0
Net income attributable to Highlands REIT, Inc. common stockholders	$ (4,725)	$ 508	$ 9,521	$ (455)					$ 4,849	$ 24,928
Net (loss) income per common share, basic and diluted (in dollars per share)	$ (0.01)	$ 0	$ 0.01	$ 0	$ 0.01	$ 0.01	$ 0	$ 0	$ 0.01	$ 0.03
Weighted average number of common shares outstanding, basic and diluted (in shares)	876,074,038	876,007,008	875,755,799	873,379,003	871,624,475	871,537,188	871,427,298	870,102,100	875,313,817	871,177,934

Schedule III Real Estate and _2

Schedule III Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrance			$ 64,926
Initial Cost, Land			84,522
Initial Cost, Buildings and Improvements			251,018
Adjustments to Land Basis			(1,645)
Adjustments to Building Basis			38,336
Gross amount at which carried at end of period, Land and Improvements			82,877
Gross amount at which carried at end of period, Buildings and Improvements			289,351
Gross amount at which carried at end of period, Total	$ 372,228	$ 314,527	372,228	$ 314,527
Accumulated Depreciation	56,431	72,822	56,431	72,822
Notes to Schedule III
Construction in progress			0	$ 32
Cost of real estate owned			445,244
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Beginning balance	314,527	375,367
Acquisitions and capital improvements	129,407	38,303
Dispositions and write-offs	(71,706)	(73,105)
Asset impairments	0	(26,038)
Ending balance	372,228	314,527
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Beginning balance	72,822	109,928
Depreciation expense	9,637	10,984
Dispositions and write-offs	(26,028)	(26,720)
Asset impairments	0	(21,370)
Ending balance	$ 56,431	$ 72,822
Buildings and improvements
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Investment in real estate and accumulated depreciation, life used for depreciation	30 years
Furniture, fixtures, & equipment | Minimum
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Investment in real estate and accumulated depreciation, life used for depreciation	5 years
Furniture, fixtures, & equipment | Maximum
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Investment in real estate and accumulated depreciation, life used for depreciation	15 years
Retail | BUCKHORN PLAZA | Bloomsburg, PA
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrance			10,142
Initial Cost, Land			1,651
Initial Cost, Buildings and Improvements			11,770
Adjustments to Land Basis			(35)
Adjustments to Building Basis			2,221
Gross amount at which carried at end of period, Land and Improvements			1,616
Gross amount at which carried at end of period, Buildings and Improvements			13,991
Gross amount at which carried at end of period, Total	$ 15,607		15,607
Accumulated Depreciation	6,763		6,763
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	15,607
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	6,763
Retail | SHERMAN PLAZA | Evanston, IL
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land			9,655
Initial Cost, Buildings and Improvements			30,982
Adjustments to Building Basis			9,360
Gross amount at which carried at end of period, Land and Improvements			9,655
Gross amount at which carried at end of period, Buildings and Improvements			40,341
Gross amount at which carried at end of period, Total	49,996		49,996
Accumulated Depreciation	17,988		17,988
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	49,996
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	17,988
Retail | STATE STREET MARKET | Rockford, IL
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrance			9,166
Initial Cost, Land			3,950
Initial Cost, Buildings and Improvements			14,184
Adjustments to Building Basis			1,821
Gross amount at which carried at end of period, Land and Improvements			3,950
Gross amount at which carried at end of period, Buildings and Improvements			16,006
Gross amount at which carried at end of period, Total	19,956		19,956
Accumulated Depreciation	7,930		7,930
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	19,956
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	7,930
Retail | THE MARKET AT HILLIARD | Hilliard, OH
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrance			15,511
Initial Cost, Land			4,432
Initial Cost, Buildings and Improvements			13,308
Adjustments to Building Basis			3,483
Gross amount at which carried at end of period, Land and Improvements			4,432
Gross amount at which carried at end of period, Buildings and Improvements			16,791
Gross amount at which carried at end of period, Total	21,223		21,223
Accumulated Depreciation	7,824		7,824
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	21,223
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	7,824
Net Lease | CITIZENS (CFG) RHODE ISLAND | Providence, RI
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land			1,278
Initial Cost, Buildings and Improvements			3,817
Adjustments to Land Basis			(702)
Adjustments to Building Basis			(2,947)
Gross amount at which carried at end of period, Land and Improvements			576
Gross amount at which carried at end of period, Buildings and Improvements			870
Gross amount at which carried at end of period, Total	1,446		1,446
Accumulated Depreciation	233		233
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	1,446
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	233
Net Lease | ATLAS - ST PAUL | St. Paul, MN
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land			3,890
Initial Cost, Buildings and Improvements			10,093
Gross amount at which carried at end of period, Land and Improvements			3,890
Gross amount at which carried at end of period, Buildings and Improvements			10,093
Gross amount at which carried at end of period, Total	13,983		13,983
Accumulated Depreciation	4,327		4,327
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	13,983
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	4,327
Net Lease | ATLAS-NEW ULM | New Ulm, MN
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land			900
Initial Cost, Buildings and Improvements			9,359
Gross amount at which carried at end of period, Land and Improvements			900
Gross amount at which carried at end of period, Buildings and Improvements			9,359
Gross amount at which carried at end of period, Total	10,259		10,259
Accumulated Depreciation	4,019		4,019
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	10,259
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	4,019
Net Lease | HUDSON CORRECTIONAL FACILITY | Hudson, CO
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land			1,382
Adjustments to Land Basis			(908)
Adjustments to Building Basis			18,017
Gross amount at which carried at end of period, Land and Improvements			474
Gross amount at which carried at end of period, Buildings and Improvements			18,017
Gross amount at which carried at end of period, Total	18,491		18,491
Accumulated Depreciation	845		845
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	18,491
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	845
Multi-Tenant Office | TRIMBLE I | San Jose, CA
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land			12,732
Initial Cost, Buildings and Improvements			10,045
Adjustments to Building Basis			5,784
Gross amount at which carried at end of period, Land and Improvements			12,732
Gross amount at which carried at end of period, Buildings and Improvements			15,829
Gross amount at which carried at end of period, Total	28,561		28,561
Accumulated Depreciation	2,161		2,161
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	28,561
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	2,161
Multi-family | BUERGER BROTHER LOFTS | Denver, CO
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land			3,117
Initial Cost, Buildings and Improvements			7,114
Adjustments to Building Basis			183
Gross amount at which carried at end of period, Land and Improvements			3,117
Gross amount at which carried at end of period, Buildings and Improvements			7,297
Gross amount at which carried at end of period, Total	10,414		10,414
Accumulated Depreciation	607		607
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	10,414
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	607
Multi-family | CHAMBER LOFTS | Denver, CO
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land			2,797
Initial Cost, Buildings and Improvements			6,388
Adjustments to Building Basis			83
Gross amount at which carried at end of period, Land and Improvements			2,797
Gross amount at which carried at end of period, Buildings and Improvements			6,471
Gross amount at which carried at end of period, Total	9,268		9,268
Accumulated Depreciation	538		538
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	9,268
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	538
Multi-family | Tennyson | Denver, CO
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land			1,533
Initial Cost, Buildings and Improvements			17,410
Adjustments to Building Basis			0
Gross amount at which carried at end of period, Land and Improvements			1,533
Gross amount at which carried at end of period, Buildings and Improvements			17,410
Gross amount at which carried at end of period, Total	18,943		18,943
Accumulated Depreciation	349		349
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	18,943
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	349
Multi-family | The Muse | Denver, CO
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land			5,303
Initial Cost, Buildings and Improvements			42,809
Adjustments to Building Basis			7
Gross amount at which carried at end of period, Land and Improvements			5,303
Gross amount at which carried at end of period, Buildings and Improvements			42,816
Gross amount at which carried at end of period, Total	48,119		48,119
Accumulated Depreciation	281		281
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	48,119
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	281
Multi-family | The View | Sand Diego, California
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land			7,272
Initial Cost, Buildings and Improvements			8,862
Adjustments to Building Basis			10
Gross amount at which carried at end of period, Land and Improvements			7,272
Gross amount at which carried at end of period, Buildings and Improvements			8,869
Gross amount at which carried at end of period, Total	16,141		16,141
Accumulated Depreciation	254		254
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	16,141
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	254
Multi-family | The Locale | Allendale MI
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrance			18,658
Initial Cost, Land			4,294
Initial Cost, Buildings and Improvements			22,461
Adjustments to Building Basis			46
Gross amount at which carried at end of period, Land and Improvements			4,294
Gross amount at which carried at end of period, Buildings and Improvements			22,507
Gross amount at which carried at end of period, Total	26,801		26,801
Accumulated Depreciation	357		357
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	26,801
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	357
Multi-family | THE LAFAYETTE | Denver, CO
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land			2,457
Initial Cost, Buildings and Improvements			7,067
Adjustments to Building Basis			149
Gross amount at which carried at end of period, Land and Improvements			2,457
Gross amount at which carried at end of period, Buildings and Improvements			7,216
Gross amount at which carried at end of period, Total	9,673		9,673
Accumulated Depreciation	406		406
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	9,673
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	406
Multi-family | KENILWORTH COURT | Denver, CO
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land			2,496
Initial Cost, Buildings and Improvements			3,203
Adjustments to Building Basis			7
Gross amount at which carried at end of period, Land and Improvements			2,496
Gross amount at which carried at end of period, Buildings and Improvements			3,210
Gross amount at which carried at end of period, Total	5,706		5,706
Accumulated Depreciation	149		149
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	5,706
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	149
Multi-family | 1620 CENTRAL STREET | Evanston, IL
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land			3,075
Initial Cost, Buildings and Improvements			17,140
Adjustments to Building Basis			93
Gross amount at which carried at end of period, Land and Improvements			3,075
Gross amount at which carried at end of period, Buildings and Improvements			17,233
Gross amount at which carried at end of period, Total	20,308		20,308
Accumulated Depreciation	864		864
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	20,308
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	864
Multi-family | The Detroit And Detroit Terraces | Evanston, IL
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrance			11,449
Initial Cost, Land			3,370
Initial Cost, Buildings and Improvements			15,006
Adjustments to Building Basis			0
Gross amount at which carried at end of period, Land and Improvements			3,370
Gross amount at which carried at end of period, Buildings and Improvements			15,006
Gross amount at which carried at end of period, Total	18,376		18,376
Accumulated Depreciation	531		531
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	18,376
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	531
Other | PALAZZO DEL LAGO | Orlando, FL
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Initial Cost, Land			8,938
Adjustments to Building Basis			19
Gross amount at which carried at end of period, Land and Improvements			8,938
Gross amount at which carried at end of period, Buildings and Improvements			19
Gross amount at which carried at end of period, Total	8,957		8,957
Accumulated Depreciation	5		$ 5
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Ending balance	8,957
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Ending balance	$ 5