Highlands REIT (HHDS) 10-Q 9 May 24 2024 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2024	May 08, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	000-55580
Entity Registrant Name	HIGHLANDS REIT, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	81-0862795
Entity Address, Address Line One	1 South Dearborn Street
Entity Address, Address Line Two	20th Floor
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60603
City Area Code	312
Local Phone Number	583-7990
Title of 12(g) Security	Common Stock
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		721,638,314
Entity Central Index Key	0001661458
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
No Trading Symbol Flag	true

Consolidated Balance Sheets (un

Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Investment properties
Land	$ 83,792	$ 88,582
Building and other improvements	288,212	296,786
Construction in progress	28	10,850
Total	372,032	396,218
Less accumulated depreciation	(78,987)	(87,216)
Net investment properties	293,045	309,002
Cash and cash equivalents	35,220	17,078
Restricted cash and escrows	2,351	2,406
Accounts receivable (net of allowance of $63 and $125 as of March 31, 2024 and December 31, 2023, respectively)	6,350	6,255
Intangible assets, net	430	537
Deferred costs and other assets, net	6,120	5,874
Total assets	343,516	341,152
Liabilities
Debt, net	120,876	120,931
Accounts payable and accrued expenses	11,231	13,335
Other liabilities	2,158	2,674
Total liabilities	134,265	136,940
Commitments and contingencies (see Note 11)
Stockholders’ Equity
Common stock, $0.01 par value, 1,000,000 shares authorized, 721,671 shares issued and outstanding as of March 31, 2024 and December 31, 2023	7,217	7,217
Additional paid-in capital	1,389,731	1,389,951
Accumulated distributions in excess of net income	(1,186,825)	(1,191,868)
Accumulated other comprehensive income	233	20
Total Highlands REIT, Inc. stockholders’ equity	210,356	205,320
Non-controlling interests	(1,105)	(1,108)
Total equity	209,251	204,212
Total liabilities and equity	$ 343,516	$ 341,152

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for accounts and rent receivables	$ 63	$ 125
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		721,671,000
Common stock, shares outstanding		721,671,000

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenues
Total revenues	$ 9,249	$ 7,630
Expenses
Property operating expenses	2,367	2,205
Real estate taxes	1,413	1,393
Depreciation and amortization	3,027	2,570
General and administrative expenses	2,610	2,517
Total expenses	9,417	8,685
Gain on sale of investment properties, net	6,869	0
Income (loss) from operations	6,701	(1,055)
Interest income	252	130
Interest expense	(1,911)	(785)
Net income (loss)	5,042	(1,710)
Net (income) loss attributable to non-controlling interests	1	(6)
Net income (loss) attributable to Highlands REIT, Inc. common stockholders	$ 5,043	$ (1,716)
Net income per common share, basic (in dollars per share)	$ 0.01	$ 0
Net income per common share, diluted (in dollars per share)	$ 0.01	$ 0
Weighted average number of common shares outstanding, basic (in shares)	721,671,000	888,243,000
Weighted average number of common shares outstanding, diluted (in shares)	721,671,000	888,243,000
Comprehensive loss
Net income	$ 5,042	$ (1,710)
Unrealized gain (loss) on derivatives	217	(135)
Total other comprehensive income (loss)	217	(135)
Comprehensive income (loss)	5,259	(1,845)
Comprehensive (income) loss attributable to non-controlling interests	(3)	14
Comprehensive income (loss) attributable to Highlands REIT, Inc. common stockholders	5,256	(1,831)
Rental income
Revenues
Total revenues	9,016	7,418
Other property income
Revenues
Total revenues	$ 233	$ 212

Consolidated Statements of Equi

Consolidated Statements of Equity (unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Distributions in Excess of Net Income	Accumulated Other Comprehensive Income (Loss)	Total Company’s Stockholders’ Equity	Non- controlling Interests
Beginning balance at Dec. 31, 2022	$ 240,357	$ 8,882	$ 1,412,637	$ (1,181,567)	$ 326	$ 240,278	$ 79
Beginning balance (in shares) at Dec. 31, 2022		888,243
Net income (loss)	(1,710)			(1,716)		(1,716)
Net (income) loss attributable to non-controlling interests	6						6
Other comprehensive income	(135)				(115)	(115)	(20)
Ending balance (in shares) at Mar. 31, 2023		888,243
Ending balance at Mar. 31, 2023	238,512	$ 8,882	1,412,637	(1,183,283)	211	238,447	65
Beginning balance at Dec. 31, 2023	204,212	$ 7,217	1,389,951	(1,191,868)	20	205,320	(1,108)
Beginning balance (in shares) at Dec. 31, 2023		721,671
Net income (loss)	5,042			5,043		5,043
Net (income) loss attributable to non-controlling interests	(1)						(1)
Other comprehensive income	217				213	213	4
Costs for repurchase of shares	(220)		(220)			(220)
Ending balance (in shares) at Mar. 31, 2024		721,671
Ending balance at Mar. 31, 2024	$ 209,251	$ 7,217	$ 1,389,731	$ (1,186,825)	$ 233	$ 210,356	$ (1,105)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income (loss)	$ 5,042	$ (1,710)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	3,027	2,570
Amortization of market leases	0	(3)
Amortization of debt discounts and financing costs	179	51
Straight-line rental income	(24)	(186)
Gain on sale of investment properties, net	(6,869)	0
Changes in assets and liabilities:
Accounts and rents receivable, net	(71)	282
Deferred costs and other assets, net	110	115
Accounts payable and accrued expenses	336	(1,955)
Other liabilities	(512)	46
Net cash flows provided by (used in) operating activities	1,218	(790)
Cash flows from investing activities:
Capital expenditures and tenant improvements	(2,498)	(314)
Proceeds from sale of investment properties, net	20,071	0
Payment of leasing fees	(250)	(307)
Net cash flows provided by (used in) investing activities	17,323	(621)
Cash flows from financing activities:
Payment of debt issuance costs	(3)	(359)
Proceeds from debt	0	10,250
Repurchase of shares	(220)	0
Principal payments of debt	(231)	(282)
Net cash flows provided by (used in) financing activities	(454)	9,609
Net increase in cash and cash equivalents and restricted cash and escrows	18,087	8,198
Cash and cash equivalents and restricted cash and escrows, at beginning of period	19,484	27,918
Cash and cash equivalents and restricted cash and escrows, at end of period	37,571	36,116
Restricted Cash [Abstract]
Cash and cash equivalents	35,220	34,207
Restricted cash	2,351	1,909
Total cash, cash equivalents and restricted cash	37,571	36,116
Supplemental disclosure of cash flows information:
Cash paid for interest	1,735	692
Supplemental schedule of non-cash investing and financing activities:
Non-cash accruals for capital expenditures and tenant improvements	$ 1,758	$ 677

Organization

Organization	3 Months Ended
	Mar. 31, 2024
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 investment properties including multi-family, retail and office properties, a correctional facility and unimproved land. 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 was spun-off from InvenTrust through a pro rata distribution by InvenTrust of 100% of the outstanding shares of common stock, $0.01 par value per share (the “Common Stock”), of Highlands to holders of record of InvenTrust’s common stock as of the close of business on April 25, 2016 (the “Record Date”). Each holder of record of InvenTrust’s common stock received one share of Common Stock for every one share of InvenTrust’s common stock held at the close of business on the Record Date (the “Distribution”). As a result, Highlands became an independent, self-advised, non-listed 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 investment property 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. With the exception of one investment property we own through a variable interest entity with a third-party partner (the “Corvue Venture”), we are the sole owner of each of these separate legal entities. As of March 31, 2024, we have an approximate 95% interest in the Corvue Venture and have funded equity contributions to the Corvue Venture in the approximate amount of $10,200. See Note 2 for additional information regarding the basis of presentation of the Corvue Venture, which is consolidated in the accompanying consolidated financial statements.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation 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. The accompanying consolidated financial statements include the accounts of Highlands and its consolidated subsidiaries. Highlands consolidates its wholly-owned subsidiaries and any other entities which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if Highlands is the primary beneficiary of a variable interest entity (“VIE”). The portions of the equity and net income of consolidated subsidiaries that are not attributable to the Company are presented separately as amounts attributable to non-controlling interests in our 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. Refer to the Company’s audited consolidated financial statements for the year ended December 31, 2023, included in the Company’s Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission on March 14, 2024, as certain note disclosures contained in such audited financial statements have been condensed or omitted from these interim consolidated financial statements. Consolidation As of March 31, 2024 and December 31, 2023, 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 and liabilities on the Company’s consolidated balance sheets as of March 31, 2024 is $23,524 of assets and $18,181 of liabilities related to the Corvue Venture. Included in total assets and liabilities on the Company’s consolidated balance sheets as of December 31, 2023 is $23,740 of assets and $18,116 of liabilities 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. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The amendments in this update require additional detailed and enhanced information about reportable segments’ expense, including significant segment expenses and other segment items that bridge segment revenue, significant expenses to segment profit or loss. The ASU also requires disclosure of the title and position of the Chief Operating Decision Maker (“CODM”) on an annual basis as well as an explanation of how the CODM uses the reported measures and other disclosures. The amendments in this update do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The guidance is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is continuing to evaluate this guidance, but expects the standard to impact our disclosures around our segments and is not anticipated to have an impact on the Company’s consolidated financial statements. Recently issued accounting standards or pronouncements not discussed herein have been excluded because they are either not relevant to the Company, or are not expected to have, or did not have, a material effect on the consolidated financial statements of the Company.

Disposed Investment Properties

Disposed Investment Properties	3 Months Ended
	Mar. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]
Disposed Investment Properties	Disposed Investment Properties The following table reflects the investment property dispositions during the three months ended March 31, 2024. The Company recognized a net gain on sale of investment properties of $6,869. Property Location Disposition Date Gross Disposition Price Sale Proceeds, Net Gain on Sale Versacold USA New Ulm, MN February 5, 2024 $ 7,175 $ 6,995 $ 2,052 Versacold USA St. Paul, MN February 5, 2024 $ 13,325 $ 13,076 $ 4,817 $ 20,500 20500000 $ 20,071 $ 6,869 There were no investment property dispositions during the three months ended March 31, 2023.

Leases

Leases	3 Months Ended
	Mar. 31, 2024
Leases [Abstract]
Leases	Leases Leasing as a lessor We lease multi-family investment properties under operating leases with terms of generally one year or less. We lease commercial properties under operating leases with remaining lease terms that range from less than one year to fourteen years as of March 31, 2024. Lease income related to the Company’s operating leases is comprised of the following: Three Months Ended March 31, 2024 2023 Lease income related to fixed lease payments $ 7,618 $ 6,290 Lease income related to variable lease payments (1) 1,398 1,128 Other 233 212 Total revenues $ 9,249 $ 7,630 (1) Variable lease payments are comprised of tenant recovery income. Future Minimum Rental Income As of March 31, 2024, commercial operating leases provide for future minimum rental income, assuming no expiring leases are renewed, as follows. Multi-family residential leases are not included as the terms are generally for one year or less. 2024 (remaining) $ 8,039 2025 9,828 2026 9,573 2027 9,374 2028 8,949 Thereafter 74,221 Total $ 119,984

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
Accounts Payable and Accrued Expenses	Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following: March 31, 2024 December 31, 2023 Accrued real estate taxes $ 5,611 $ 6,300 Accrued compensation 2,006 979 Accrued interest payable 568 570 Other accrued expenses 3,046 5,486 Total accounts payable and accrued expenses $ 11,231 $ 13,335

Debt

Debt	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Debt	Debt Total debt outstanding as of March 31, 2024 and December 31, 2023 was as follows: March 31, 2024 December 31, 2023 Debt, gross $ 124,586 $ 124,817 Mortgage discount (2,019) (2,074) Deferred financing costs, net (1,691) (1,812) Total Debt, Net $ 120,876 $ 120,931 As of March 31, 2024, the Company’s outstanding mortgage indebtedness included 11 mortgage loans with various maturities through January 2036, as follows: Debt maturing during the year As of March 31, 2024 Weighted average interest rate 2024 (remaining) $ — — % 2025 20,000 5.86 % (1) 2026 23,609 4.56 % 2027 11,152 3.99 % 2028 — — % Thereafter 69,825 5.91 % (1) Total $ 124,586 5.47 % (1) See below for discussion of the derivative agreements entered into with the mortgage loans obtained on Trimble and The Muse. For Trimble (2025), the interest rate in the table above is the fixed rate. For The Muse (thereafter), the interest rate is the rate in effect on March 31, 2024. The Company obtained a loan on November 9, 2023, which was secured by a mortgage encumbering The Muse, one of the Company's multi-family investment properties. The loan has a principal balance of $19,496, matures on November 1, 2033 and requires interest-only payments through December 1, 2028 and principal and interest payments thereafter. The interest rate is variable and was 7.38% and 7.39% on March 31, 2024 and December 31, 2023, respectively. In conjunction with the loan closing, the company purchased an interest rate cap contract to cap the interest at 7.44% through its November 1, 2026 expiration at which point the Company is required by the terms of the loan agreement to purchase a new cap contract. The Company’s mortgage and the related swap agreement on The Locale had an initial maturity date of September 1, 2023. Prior to the initial maturity date, the Company exercised the one-year extension option provided for in the loan documents and entered into a new swap agreement to fix the interest rate at 7.34% and extend the maturity date to September 1, 2024. On November 8, 2023, the Company placed permanent financing on The Locale and simultaneously repaid the $17,112 outstanding balance on the extended loan and terminated the swap agreement. The new loan matures on December 1, 2030, has a principal balance of $17,700, bears interest at a fixed rate of 6.49% and requires interest-only payments for the duration of its 7-year term. On September 20, 2023, the Company assumed two mortgage loans in the total principal amount of $11,258, net of a debt discount of $1,951. The carrying value of the assumed debt was marked to market as of the acquisition date. According to the terms of the loan agreements, the contractual fixed interest rates are 4.61% and 4.50%, require payments of principal and interest and the maturity date of both loans is January 1, 2036. The debt discount will be amortized to interest expense over the life of the loans. The Company obtained a loan on April 6, 2023, which was secured by a mortgage encumbering one of the buildings comprising the Trimble office investment property. The building is approximately 97,000 square feet and is currently occupied by Veeco Instruments, Inc. The loan secured by a mortgage on this Trimble building has a principal amount of $20,000, $4,000 of which is guaranteed by the Company. The loan matures on April 6, 2025, with a 12-month extension option, which requires, among other criteria, that at the time of extension, the mortgage is not in default, a minimum debt service coverage ratio is met and the extension fee is paid. Simultaneously with the loan closing, we entered into a swap arrangement to fix the interest rate at 5.86% for the term of the loan. The Company obtained a loan on January 24, 2023, which was secured by a mortgage encumbering Tennyson, one of the Company’s multi-family investment properties. The loan has a principal balance of $10,250. The loan matures on February 1, 2030, bears interest at a rate of 4.84% and requires interest-only payments for the duration of its 7-year term. The Company’s ability to pay off the mortgages when they become due is dependent upon the Company’s ability either to refinance the related mortgage debt or to sell the related investment property. With respect to each mortgage loan, if the applicable wholly-owned property-owning subsidiary is unable to refinance or sell the related investment property, or in the event that the estimated value is less than the mortgage balance, the applicable wholly-owned property-owning subsidiary may, if appropriate, satisfy a mortgage obligation by transferring title of the investment property to the lender or permitting a lender to foreclose. As of March 31, 2024 and December 31, 2023, the Company guaranteed one mortgage loan up to $4,000. However, 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 investment properties. Some of the mortgage loans require compliance with certain covenants, such as debt service coverage ratios and minimum net worth requirements. As of March 31, 2024 and December 31, 2023, the Company was in compliance with such covenants.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2024
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 or caps 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 March 31, 2024, we had two derivative financial instruments designated as cash flow hedges. The interest rate swap on Trimble had an original notional amount of $20,000 and a maturity date of April 6, 2026. The interest rate cap on The Muse had an original notional amount of $19,496 and a maturity date of November 1, 2026. As of March 31, 2023, 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. These derivatives are measured at fair value on a recurring basis. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income or loss on the 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 our derivative financial instruments was $217 for the three months ended March 31, 2024, and as other comprehensive loss was $135 for the three months ended March 31, 2023. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on our variable rate debt. The Company estimates that $210 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 March 31, 2024 and December 31, 2023, respectively. March 31, 2024 Level 1 Level 2 Level 3 Total Derivative financial instruments designated as cash flow hedges: Classified as “Deferred costs and other assets, net” $ — $ 301 $ — $ 301 December 31, 2023 Derivative financial instruments designated as cash flow hedges: Level 1 Level 2 Level 3 Total Classified as “Deferred costs and other assets, net” $ — $ 97 $ — $ 97 The fair value of our derivative financial instruments 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 March 31, 2024, 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 In accordance with ASC 360-10, the Company records impairment losses on long-lived assets used in operations when events and circumstances indicate that long-lived assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. During the three months ended March 31, 2024 and 2023, events and circumstances indicated that certain investment properties might be impaired. However, the Company’s estimate of undiscounted cash flows indicated that such carrying values were expected to be recovered. Nonetheless, it is reasonably possible that the estimate of undiscounted cash flows may change in the future resulting in the need to write down assets to fair value. Financial Liabilities Disclosed at Fair Value on a Recurring Basis The table below presents the fair value of financial instruments that are presented at carrying values in the consolidated financial statements as of March 31, 2024 and December 31, 2023. March 31, 2024 December 31, 2023 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Debt $ 124,586 $ 118,017 $ 124,817 $ 119,242 The Company estimates the fair value of its debt instruments using a weighted average market effective interest rate of 7.03% and 6.69% per annum as of March 31, 2024 and December 31, 2023, respectively. The Company estimates the fair value of its mortgage loans 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 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 5.81% to 9.93% and 5.52% to 9.66% as of March 31, 2024 and December 31, 2023, respectively. 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	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company is taxed and operates in a manner that will allow the Company to continue to qualify as a REIT for U.S. federal income tax purposes. So long as it maintains its qualification as a REIT, the Company generally will not be subject to U.S. federal income tax on taxable income that is distributed to stockholders. A REIT is subject to a number of organizational and operational requirements, including a requirement that it distribute at least 90% of its REIT taxable income (subject to certain adjustments) to its stockholders each year. If the Company fails to continue to qualify as a REIT in any taxable year, without the benefit of certain relief provisions, the Company will be subject to U.S. federal and state income tax on its taxable income at regular corporate tax rates and would not be able to re-elect REIT status during the four years following the year of the failure. Although the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and U.S. federal income and excise taxes on its undistributed income.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2024
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 ASC Topic 280, Segment Reporting (“ASC 280”) to determine whether any changes have occurred that would impact its reportable segments. The Company currently has two business segments, consisting of multi-family and other. The following table summarizes net operating income by segment for the three months ended March 31, 2024 and 2023. Three Months Ended Three Months Ended Total Multi-family Other Total Multi-family Other Rental income $ 9,016 $ 4,733 $ 4,283 $ 7,418 $ 3,966 $ 3,452 Other property income 233 233 — 212 212 — Total income 9,249 4,966 4,283 7,630 4,178 3,452 Property operating expenses 2,367 1,610 757 2,205 1,474 731 Real estate taxes 1,413 530 883 1,393 481 912 Net operating income $ 5,469 $ 2,826 $ 2,643 $ 4,032 $ 2,223 $ 1,809 Non-allocated expenses (1) (5,637) (5,087) Gain on sale of investment properties, net (2) 6,869 — Other income and expenses (3) (1,659) (655) Net income (loss) attributable to non-controlling interests 1 (6) Net income (loss) attributable to Highlands REIT, Inc. common stockholders $ 5,043 $ (1,716) Balance Sheet Data Real estate assets, net (4) $ 293,475 $ 196,475 $ 97,000 $ — $ 170,137 $ 103,234 Non-segmented assets (5) 50,041 321,017 Total assets $ 343,516 $ 321,017 Capital expenditures $ 2,498 $ 50 $ 2,448 $ 314 $ 164 $ 150 (1) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (2) Gain on sale of investment properties is related to two other properties. (3) Other income and expenses consists of interest income and interest expense. (4) Real estate assets include intangible lease assets, net of amortization. (5) Non-segmented assets include cash and cash equivalents, restricted cash and escrows, accounts receivable and deferred costs and other assets.

Share Based Compensation

Share Based Compensation	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement, Noncash Expense [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.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
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 the failure of InvenTrust or MB REIT (Florida), Inc., a subsidiary of the Company, to maintain its qualification as a REIT for any taxable year ending on or before December 31, 2016. In February 2021, the Company executed a lease with Veeco Instruments, Inc. for approximately 97,000 square feet at Trimble. The lease required a significant tenant allowance, which is being accounted for as lessor-owned improvements, and leasing commission. The total cost commitment was estimated to be approximately $9,100. As of March 31, 2024, we estimate that remaining costs to be paid under this commitment are approximately $673. The tenant began paying cash rent on January 1, 2023. The remainder of the tenant allowance will be paid by the Company upon final request by the tenant. In November 2022, the Company executed a lease with XP Power, LLC for approximately 80,000 square feet at Trimble. Rental payments under this lease commenced in January 2024. The lease required significant landlord work, a tenant allowance, which is being accounted for as lessor-owned improvements, and leasing commission. The total cost commitment is estimated to be approximately $13,200. As of March 31, 2024, we estimate that remaining costs to be paid under this commitment are approximately $1,085. The remainder of the tenant allowance will be paid by the Company upon final request by the tenant.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events In April 2024, the Company executed a lease with LTF Lease Company LLC, for an approximately 61,000 square foot Life Time Fitness at Sherman Plaza, located in Evanston, Illinois. Rental payments under this lease are expected to commence in the second quarter of 2025. The total cost commitment is estimated to be approximately $9.2 million, to be funded using cash on hand and cash flow from operations.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss) Attributable to Parent	$ 5,043	$ (1,716)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation 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. The accompanying consolidated financial statements include the accounts of Highlands and its consolidated subsidiaries. Highlands consolidates its wholly-owned subsidiaries and any other entities which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if Highlands is the primary beneficiary of a variable interest entity (“VIE”). The portions of the equity and net income of consolidated subsidiaries that are not attributable to the Company are presented separately as amounts attributable to non-controlling interests in our 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.
Consolidation	Consolidation
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The amendments in this update require additional detailed and enhanced information about reportable segments’ expense, including significant segment expenses and other segment items that bridge segment revenue, significant expenses to segment profit or loss. The ASU also requires disclosure of the title and position of the Chief Operating Decision Maker (“CODM”) on an annual basis as well as an explanation of how the CODM uses the reported measures and other disclosures. The amendments in this update do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The guidance is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is continuing to evaluate this guidance, but expects the standard to impact our disclosures around our segments and is not anticipated to have an impact on the Company’s consolidated financial statements. Recently issued accounting standards or pronouncements not discussed herein have been excluded because they are either not relevant to the Company, or are not expected to have, or did not have, a material effect on the consolidated financial statements of the Company.

Disposed Investment Properties

Disposed Investment Properties (Tables)	3 Months Ended
	Mar. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Disposal Group	The following table reflects the investment property dispositions during the three months ended March 31, 2024. The Company recognized a net gain on sale of investment properties of $6,869. Property Location Disposition Date Gross Disposition Price Sale Proceeds, Net Gain on Sale Versacold USA New Ulm, MN February 5, 2024 $ 7,175 $ 6,995 $ 2,052 Versacold USA St. Paul, MN February 5, 2024 $ 13,325 $ 13,076 $ 4,817 $ 20,500 20500000 $ 20,071 $ 6,869

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2024
Leases [Abstract]
Lease Income	Lease income related to the Company’s operating leases is comprised of the following: Three Months Ended March 31, 2024 2023 Lease income related to fixed lease payments $ 7,618 $ 6,290 Lease income related to variable lease payments (1) 1,398 1,128 Other 233 212 Total revenues $ 9,249 $ 7,630 (1) Variable lease payments are comprised of tenant recovery income.
Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity	As of March 31, 2024, commercial operating leases provide for future minimum rental income, assuming no expiring leases are renewed, as follows. Multi-family residential leases are not included as the terms are generally for one year or less. 2024 (remaining) $ 8,039 2025 9,828 2026 9,573 2027 9,374 2028 8,949 Thereafter 74,221 Total $ 119,984

Accounts Payable and Accrued _2

Accounts Payable and Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Expenses	Accounts payable and accrued expenses consist of the following: March 31, 2024 December 31, 2023 Accrued real estate taxes $ 5,611 $ 6,300 Accrued compensation 2,006 979 Accrued interest payable 568 570 Other accrued expenses 3,046 5,486 Total accounts payable and accrued expenses $ 11,231 $ 13,335

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Schedule of Debt Outstanding	Total debt outstanding as of March 31, 2024 and December 31, 2023 was as follows: March 31, 2024 December 31, 2023 Debt, gross $ 124,586 $ 124,817 Mortgage discount (2,019) (2,074) Deferred financing costs, net (1,691) (1,812) Total Debt, Net $ 120,876 $ 120,931
Scheduled Maturities of Mortgage Indebtedness	As of March 31, 2024, the Company’s outstanding mortgage indebtedness included 11 mortgage loans with various maturities through January 2036, as follows: Debt maturing during the year As of March 31, 2024 Weighted average interest rate 2024 (remaining) $ — — % 2025 20,000 5.86 % (1) 2026 23,609 4.56 % 2027 11,152 3.99 % 2028 — — % Thereafter 69,825 5.91 % (1) Total $ 124,586 5.47 % (1) See below for discussion of the derivative agreements entered into with the mortgage loans obtained on Trimble and The Muse. For Trimble (2025), the interest rate in the table above is the fixed rate. For The Muse (thereafter), the interest rate is the rate in effect on March 31, 2024.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Derivative Liabilities Measured On A Recurring Basis	The table below presents the fair value of the Company’s derivative financial instrument as well as its classification on the consolidated balance sheets as of March 31, 2024 and December 31, 2023, respectively. March 31, 2024 Level 1 Level 2 Level 3 Total Derivative financial instruments designated as cash flow hedges: Classified as “Deferred costs and other assets, net” $ — $ 301 $ — $ 301 December 31, 2023 Derivative financial instruments designated as cash flow hedges: Level 1 Level 2 Level 3 Total Classified as “Deferred costs and other assets, net” $ — $ 97 $ — $ 97
Schedule of the Fair Value of Financial Instruments	The table below presents the fair value of financial instruments that are presented at carrying values in the consolidated financial statements as of March 31, 2024 and December 31, 2023. March 31, 2024 December 31, 2023 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Debt $ 124,586 $ 118,017 $ 124,817 $ 119,242

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Summary of Net Property Operations	The following table summarizes net operating income by segment for the three months ended March 31, 2024 and 2023. Three Months Ended Three Months Ended Total Multi-family Other Total Multi-family Other Rental income $ 9,016 $ 4,733 $ 4,283 $ 7,418 $ 3,966 $ 3,452 Other property income 233 233 — 212 212 — Total income 9,249 4,966 4,283 7,630 4,178 3,452 Property operating expenses 2,367 1,610 757 2,205 1,474 731 Real estate taxes 1,413 530 883 1,393 481 912 Net operating income $ 5,469 $ 2,826 $ 2,643 $ 4,032 $ 2,223 $ 1,809 Non-allocated expenses (1) (5,637) (5,087) Gain on sale of investment properties, net (2) 6,869 — Other income and expenses (3) (1,659) (655) Net income (loss) attributable to non-controlling interests 1 (6) Net income (loss) attributable to Highlands REIT, Inc. common stockholders $ 5,043 $ (1,716) Balance Sheet Data Real estate assets, net (4) $ 293,475 $ 196,475 $ 97,000 $ — $ 170,137 $ 103,234 Non-segmented assets (5) 50,041 321,017 Total assets $ 343,516 $ 321,017 Capital expenditures $ 2,498 $ 50 $ 2,448 $ 314 $ 164 $ 150 (1) Non-allocated expenses consists of general and administrative expenses and depreciation and amortization. (2) Gain on sale of investment properties is related to two other properties. (3) Other income and expenses consists of interest income and interest expense. (4) Real estate assets include intangible lease assets, net of amortization. (5) Non-segmented assets include cash and cash equivalents, restricted cash and escrows, accounts receivable and deferred costs and other assets.

Organization (Details)

Organization (Details) $ / shares in Units, $ in Thousands	Aug. 16, 2019 USD ($)	Apr. 28, 2016 $ / shares shares	Mar. 31, 2024 property parcel $ / shares	Dec. 31, 2023 property parcel $ / 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			18	20
Parcels of land | parcel			1	1
Common stock
Conversion of Stock [Line Items]
Shares issued for each share held at date of spin-off (in shares) | shares		1
Corvue Venture
Conversion of Stock [Line Items]
Ownership percentage	95%
Equity investment contributions | $	$ 10,200

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Assets	$ 343,516	$ 341,152	$ 321,017
Liabilities	134,265	136,940
Variable Interest Entity, Primary Beneficiary
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Assets	23,524	23,740
Liabilities	$ 18,181	$ 18,116

Disposed Investment Propertie_2

Disposed Investment Properties - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]
Gain on sale of investment properties, net	$ 6,869	$ 0

Disposed Investment Propertie_3

Disposed Investment Properties - Disposals (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale Proceeds, Net	$ 20,071	$ 0
Gain on Sale	$ 6,869	0
Versacold USA, New Ulm, MN
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross Disposition Price			$ 7,175
Sale Proceeds, Net		6,995
Gain on Sale		2,052
Versacold USA, St Paul, MN
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross Disposition Price			13,325
Sale Proceeds, Net		13,076
Gain on Sale		4,817
Versacold USA
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross Disposition Price			$ 20,500
Sale Proceeds, Net		20,071
Gain on Sale		$ 6,869

Leases - Narrative (Details)

Leases - Narrative (Details)	Mar. 31, 2024
Minimum
Lessor, Lease, Description [Line Items]
Lease terms	1 year
Maximum
Lessor, Lease, Description [Line Items]
Lease terms	14 years

Leases - Lease Income (Details)

Leases - Lease Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Lease income related to fixed lease payments	$ 7,618	$ 6,290
Lease income related to variable lease payments	1,398	1,128
Other	233	212
Total revenues	$ 9,249	$ 7,630

Leases - Receivable Maturity (D

Leases - Receivable Maturity (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Leases [Abstract]
2024 (remaining)	$ 8,039
2025	9,828
2026	9,573
2027	9,374
2028	8,949
Thereafter	74,221
Total	$ 119,984

Accounts Payable and Accrued _3

Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accrued real estate taxes	$ 5,611	$ 6,300
Accrued compensation	2,006	979
Accrued interest payable	568	570
Other accrued expenses	3,046	5,486
Total accounts payable and accrued expenses	$ 11,231	$ 13,335

Debt - Outstanding Debt (Detail

Debt - Outstanding Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
Debt, gross	$ 124,586	$ 124,817
Mortgage discount	(2,019)	(2,074)
Deferred financing costs, net	(1,691)	(1,812)
Total Debt, Net	$ 120,876	$ 120,931

Debt - Scheduled Maturities (De

Debt - Scheduled Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Total	$ 124,586	$ 124,817
Mortgages
Debt Instrument [Line Items]
2024 (remaining)	0
2025	20,000
2026	23,609
2027	11,152
2028	0
Thereafter	69,825
Total	$ 124,586
Weighted average interest rate
2024 (remaining)	0%
2025	5.86%
2026	4.56%
2027	3.99%
2028	0%
Thereafter	5.91%
Total	5.47%

Debt - Additional Information (

Debt - Additional Information (Details) $ in Thousands		3 Months Ended
	Nov. 08, 2023 USD ($)	Mar. 31, 2024 USD ($) loan	Dec. 31, 2023 USD ($)	Nov. 09, 2023 USD ($)	Apr. 06, 2023 USD ($) ft²	Mar. 31, 2023 USD ($)	Jan. 24, 2023 USD ($)
Debt Instrument [Line Items]
Number of mortgage loan | loan		11
Number of loans assumed | loan		2
Restricted cash		$ 2,351	$ 2,406			$ 1,909
Mortgages
Debt Instrument [Line Items]
2024 (remaining)		$ 0
Number of loans guaranteed | loan		1
2024 (remaining)		0%
Mortgages | Loan Secured by Mortgage Encumbering Trimble
Debt Instrument [Line Items]
Extension term					12 months
Mortgages | Mortgage Loans Acquired In Acquisition Of The Q Lofts
Debt Instrument [Line Items]
Debt discount		$ 1,951
Principal amount		$ 11,258
Mortgages | The Q Lofts Mortgage Loan 1
Debt Instrument [Line Items]
Fixed rate		4.61%
Mortgages | The Q Lofts Mortgage Loan 2
Debt Instrument [Line Items]
Fixed rate		4.50%
Secured Debt
Debt Instrument [Line Items]
Guarantor obligations, current carrying value		$ 4
Secured Debt | Mortgage Loan in Connection with Acquisition of The Locale
Debt Instrument [Line Items]
Principal amount		$ 17,700
Fixed rate	7.34%	6.49%
Loan term		7 years
Payoff of debt	$ 17,112
Secured Debt | Loan Secured by Mortgage Encumbering Tennyson
Debt Instrument [Line Items]
Principal amount							$ 10,250
Fixed rate							4.84%
Loan term		7 years
Secured Debt | Loan Secured by Mortgage Encumbering Trimble
Debt Instrument [Line Items]
Mortgage building area | ft²					97,000
Principal amount					$ 20,000
Guarantor obligations, current carrying value					$ 4,000
Fixed rate					5.86%
Secured Debt | Loan Secured By Mortgage Encumbering The Muse
Debt Instrument [Line Items]
Principal amount				$ 19,496
Fixed rate		7.38%	7.39%
Interest rate, cap				7.44%

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) derivative_instrument	Mar. 31, 2023 USD ($)	Dec. 31, 2023 derivative_instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unrealized gain (loss) on derivatives	$ 217	$ (135)
Cash flow hedges to be reclassified in the next twelve months	$ 210
Discount rate | Long-term debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input percentage	0.0703		0.0669
Discount rate | Long-term debt | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input percentage	0.0581		0.0552
Discount rate | Long-term debt | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input percentage	0.0993		0.0966
Cash Flow Hedging | Interest Rate Swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Number of derivative instruments | derivative_instrument	2		2
Notional amount	$ 20,000

Fair Value Measurements - Deriv

Fair Value Measurements - Derivative Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Deferred costs and other assets, net	Deferred costs and other assets, net
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	$ 301	$ 97
Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	0	0
Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	301	97
Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	$ 0	$ 0

Fair Value Measurements - Not M

Fair Value Measurements - Not Measured at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt	$ 124,586	$ 124,817
Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt	$ 118,017	$ 119,242

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 0	$ 0

Segment Reporting - Narrative (

Segment Reporting - Narrative (Details)	3 Months Ended
	Mar. 31, 2024 segment
Segment Reporting [Abstract]
Number of business segments (in segments)	2

Segment Reporting - Net Propert

Segment Reporting - Net Property Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Segment Reporting Information [Line Items]
Total revenues	$ 9,249	$ 7,630
Operating expenses	1,413	1,393
Net operating income (loss)	5,469	4,032
Gain on sale of investment properties, net	6,869	0
Net (income) loss attributable to non-controlling interests	1	(6)
Net income (loss) attributable to Highlands REIT, Inc. common stockholders	5,043	(1,716)
Total assets	343,516	321,017	$ 341,152
Capital expenditures	2,498	314
Rental income
Segment Reporting Information [Line Items]
Total revenues	9,016	7,418
Other property income
Segment Reporting Information [Line Items]
Total revenues	233	212
Other
Segment Reporting Information [Line Items]
Total revenues	4,283	3,452
Operating expenses	883	912
Net operating income (loss)	2,643	1,809
Other | Rental income
Segment Reporting Information [Line Items]
Total revenues	4,283	3,452
Other | Other property income
Segment Reporting Information [Line Items]
Total revenues	0	0
Reconciling items
Segment Reporting Information [Line Items]
Non-allocated expenses	(5,637)	(5,087)
Other income and expenses	(1,659)	(655)
Total assets	50,041	321,017
Operating Segments And Corporate, Non-Segment
Segment Reporting Information [Line Items]
Total assets	293,475	0
Net Lease | Operating segments
Segment Reporting Information [Line Items]
Total assets	196,475	170,137
Capital expenditures	50	164
Retail | Operating segments
Segment Reporting Information [Line Items]
Total assets	97,000	103,234
Capital expenditures	2,448	150
Multi-family | Operating segments
Segment Reporting Information [Line Items]
Total revenues	4,966	4,178
Operating expenses	530	481
Net operating income (loss)	2,826	2,223
Multi-family | Operating segments | Rental income
Segment Reporting Information [Line Items]
Total revenues	4,733	3,966
Multi-family | Operating segments | Other property income
Segment Reporting Information [Line Items]
Total revenues	$ 233	$ 212

Share Based Compensation (Detai

Share Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Aug. 12, 2021	Apr. 28, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payments for Repurchase of Common Stock	$ 25,239
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Repurchased During Period, Shares	169,391,000
Incentive awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to grant (up to) (in shares)		67,000,000	43,000,000
Shares available for future issuance (in shares)	11,616,000

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Thousands	Feb. 28, 2021 USD ($) ft²	Mar. 31, 2024 USD ($)	Nov. 30, 2022 USD ($) ft²
Loss Contingencies [Line Items]
Leased area | ft²			80,000
Estimated cost commitment			$ 13,200
Estimated remaining cost		$ 1,085
Veeco Instrument, Inc. Lease
Loss Contingencies [Line Items]
Leased area (in square feet) | ft²	97,000
Current estimated commitment	$ 9,100
Re-estimated remaining obligation		$ 673

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent event - Life Time Fitness at Sherman Plaza, Evanston, Illinois $ in Millions	1 Months Ended
	Apr. 30, 2024 USD ($) ft²
Subsequent Event [Line Items]
Square feet | ft²	61,000
Total cost commitment | $	$ 9.2