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 |