Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 03, 2021 | |
Document and Entity Information | ||
Entity Registrant Name | ONE LIBERTY PROPERTIES, INC. | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2021 | |
Entity File Number | 001-09279 | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 13-3147497 | |
Entity Address, Address Line One | 60 Cutter Mill Road | |
Entity Address, City or Town | Great Neck | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11021 | |
City Area Code | 516 | |
Local Phone Number | 466-3100 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | OLP | |
Security Exchange Name | NYSE | |
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 | 20,732,153 | |
Entity Central Index Key | 0000712770 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Real estate investments, at cost | |||
Land | $ 191,050 | $ 190,391 | |
Buildings and improvements | 649,198 | 648,667 | |
Total real estate investments, at cost | 840,248 | 839,058 | |
Less accumulated depreciation | 151,557 | 147,136 | |
Real estate investments, net | 688,691 | 691,922 | |
Investment in unconsolidated joint ventures | 10,580 | 10,702 | |
Cash and cash equivalents | 11,245 | 12,705 | |
Unbilled rent receivable | 15,391 | 15,438 | |
Unamortized intangible lease assets, net | 23,306 | 24,703 | |
Escrow, deposits and other assets and receivables | 18,953 | 20,667 | |
Total assets | [1] | 768,166 | 776,137 |
Liabilities: | |||
Mortgages payable, net of $3,684 and $3,845 of deferred financing costs, respectively | 424,271 | 429,704 | |
Line of credit, net of $377 and $425 of deferred financing costs, respectively | 15,073 | 12,525 | |
Dividends payable | 9,329 | 9,261 | |
Accrued expenses and other liabilities | 20,260 | 21,498 | |
Unamortized intangible lease liabilities, net | 10,794 | 11,189 | |
Total liabilities | [1] | 479,727 | 484,177 |
Commitments and contingencies | |||
One Liberty Properties, Inc. stockholders' equity: | |||
Preferred stock, $1 par value; 12,500 shares authorized; none issued | |||
Common stock, $1 par value; 50,000 shares authorized; 20,008 and 19,878 shares issued and outstanding | 20,008 | 19,878 | |
Paid-in capital | 314,643 | 313,430 | |
Accumulated other comprehensive loss | (3,504) | (5,002) | |
Distributions in excess of net income | (43,906) | (37,539) | |
Total One Liberty Properties, Inc. stockholders' equity | 287,241 | 290,767 | |
Non-controlling interests in consolidated joint ventures | [1] | 1,198 | 1,193 |
Total equity | 288,439 | 291,960 | |
Total liabilities and equity | $ 768,166 | $ 776,137 | |
[1] | The Company’s consolidated balance sheets include assets and liabilities of consolidated variable interest entities (“VIEs”). See Note 4. The consolidated balance sheets include the following amounts related to the Company’s consolidated VIEs: $12,158 and $12,158 of land, $23,284 and $23,372 of building and improvements, net of $5,454 and $5,232 of accumulated depreciation, $3,707 and $3,679 of other assets included in other line items, $23,313 and $23,530 of real estate debt, net, $1,398 and $1,278 of other liabilities included in other line items and $1,198 and $1,193 of non-controlling interests as of March 31, 2021 and December 31, 2020, respectively. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | |
Preferred stock, shares authorized | 12,500 | 12,500 | |
Preferred stock, shares issued | 0 | 0 | |
Common stock, par value (in dollars per share) | $ 1 | $ 1 | |
Common stock, shares authorized | 50,000 | ||
Common stock, shares issued | 20,008 | 19,878 | |
Common stock, shares outstanding | 20,008 | 19,878 | |
Land | $ 191,050 | $ 190,391 | |
Buildings and improvements | 649,198 | 648,667 | |
Accumulated depreciation | 151,557 | 147,136 | |
Non-controlling interests in consolidated joint ventures | [1] | 1,198 | 1,193 |
Line of Credit | |||
Deferred financing costs | 377 | 425 | |
Mortgages payable | |||
Deferred financing costs | 3,684 | 3,845 | |
Consolidated Joint Venture-VIEs | |||
Land | 12,158 | 12,158 | |
Buildings and improvements | 23,284 | 23,372 | |
Accumulated depreciation | 5,454 | 5,232 | |
Other assets | 3,707 | 3,679 | |
Real estate debt, net | 23,313 | 23,530 | |
Other liabilities | 1,398 | 1,278 | |
Non-controlling interests in consolidated joint ventures | 1,198 | 1,193 | |
Consolidated Joint Venture-VIEs | Mortgages payable | |||
Deferred financing costs | $ 238 | $ 253 | |
[1] | The Company’s consolidated balance sheets include assets and liabilities of consolidated variable interest entities (“VIEs”). See Note 4. The consolidated balance sheets include the following amounts related to the Company’s consolidated VIEs: $12,158 and $12,158 of land, $23,284 and $23,372 of building and improvements, net of $5,454 and $5,232 of accumulated depreciation, $3,707 and $3,679 of other assets included in other line items, $23,313 and $23,530 of real estate debt, net, $1,398 and $1,278 of other liabilities included in other line items and $1,198 and $1,193 of non-controlling interests as of March 31, 2021 and December 31, 2020, respectively. |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Total revenues | $ 20,816 | $ 21,239 |
Operating expenses: | ||
Depreciation and amortization | 5,757 | 5,674 |
General and administrative (see Note 7 for related party information) | 3,642 | 3,334 |
Real estate expenses (see Note 7 for related party information) | 3,686 | 3,342 |
State taxes | 75 | 82 |
Total operating expenses | 13,160 | 12,432 |
Other operating income | ||
Gain on sale of real estate, net | 4,252 | |
Operating income | 7,656 | 13,059 |
Other income and expenses: | ||
Equity in (loss) earnings of unconsolidated joint ventures | (22) | 64 |
Equity in earnings from sale of unconsolidated joint venture properties | 121 | |
Prepayment costs on debt | (290) | |
Other income (see Note 11) | 170 | 4 |
Interest: | ||
Expense | (4,634) | (4,884) |
Amortization and write-off of deferred financing costs | (213) | (243) |
Net income | 2,957 | 7,831 |
Net loss (income) attributable to non-controlling interests | 5 | (5) |
Net income attributable to One Liberty Properties, Inc. | $ 2,962 | $ 7,826 |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 20,003 | 19,361 |
Diluted (in shares) | 20,061 | 19,374 |
Per common share attributable to common stockholders: | ||
Basic and Diluted (in dollars per share) | $ 0.13 | $ 0.39 |
Cash distributions per share of common stock (in dollars per share) | $ 0.45 | $ 0.45 |
Rental income, net | ||
Revenues: | ||
Total revenues | $ 20,684 | $ 21,239 |
Lease termination fees | ||
Revenues: | ||
Total revenues | $ 132 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 2,957 | $ 7,831 |
Other comprehensive income | ||
Net unrealized gain (loss) on derivative instruments | 1,501 | (4,818) |
Comprehensive income | 4,458 | 3,013 |
Net loss (income) attributable to non-controlling interests | 5 | (5) |
Adjustment for derivative instruments attributable to non-controlling interests | (3) | 9 |
Comprehensive income attributable to One Liberty Properties, Inc. | $ 4,460 | $ 3,017 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Common Stock | Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Undistributed Net Income | Distributions in Excess of Net Income | Non-Controlling Interests in Consolidated Joint Ventures | Total |
Balances at Dec. 31, 2019 | $ 19,251 | $ 301,517 | $ (1,623) | $ (28,382) | $ 1,221 | $ 291,984 | |
Distributions - common stock | |||||||
Cash | (9,036) | (9,036) | |||||
Restricted stock vesting | 122 | (122) | |||||
Shares issued through dividend reinvestment plan | 7 | 159 | 166 | ||||
Distributions to non-controlling interests | (8) | (8) | |||||
Compensation expense - restricted stock | 976 | 976 | |||||
Net income | $ 7,826 | 5 | 7,831 | ||||
Other comprehensive income (loss) | (4,809) | (9) | (4,818) | ||||
Balances at Mar. 31, 2020 | 19,380 | 302,530 | (6,432) | (29,592) | 1,209 | 287,095 | |
Balances at Dec. 31, 2020 | 19,878 | 313,430 | (5,002) | (37,539) | 1,193 | 291,960 | |
Distributions - common stock | |||||||
Cash | (9,329) | (9,329) | |||||
Restricted stock vesting | 130 | (130) | |||||
Contribution from non-controlling interest | 20 | 20 | |||||
Distributions to non-controlling interests | (13) | (13) | |||||
Compensation expense - restricted stock | 1,343 | 1,343 | |||||
Net income | $ 2,962 | (5) | 2,957 | ||||
Other comprehensive income (loss) | 1,498 | 3 | 1,501 | ||||
Balances at Mar. 31, 2021 | $ 20,008 | $ 314,643 | $ (3,504) | $ (43,906) | $ 1,198 | $ 288,439 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | Mar. 12, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Distributions - common stock | |||
Cash - $.45 per share | $ 0.45 | $ 0.45 | $ 0.45 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 2,957 | $ 7,831 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Gain on sale of real estate, net | (4,252) | |
Decrease (increase) in unbilled rent receivable | 95 | (380) |
Amortization and write-off of intangibles relating to leases, net | (232) | (190) |
Amortization of restricted stock expense | 1,343 | 976 |
Equity in loss (earnings) of unconsolidated joint ventures | 22 | (64) |
Equity in earnings from sale of unconsolidated joint venture property | (121) | |
Distributions of earnings from unconsolidated joint ventures | 100 | |
Depreciation and amortization | 5,757 | 5,674 |
Amortization and write-off of deferred financing costs | 213 | 243 |
Payment of leasing commissions | (71) | (38) |
Decrease in escrow, deposits, other assets and receivables | 1,167 | 303 |
Increase in accrued expenses and other liabilities | 102 | 69 |
Net cash provided by operating activities | 11,453 | 10,051 |
Cash flows from investing activities: | ||
Purchase of real estate | (28,504) | |
Improvements to real estate | (512) | (109) |
Investments in ground leased property | (430) | |
Net proceeds from sale of real estate | 7,093 | |
Insurance recovery proceeds due to casualty loss | 300 | |
Net cash used in investing activities | (642) | (21,520) |
Cash flows from financing activities: | ||
Scheduled amortization payments of mortgages payable | (3,520) | (3,389) |
Repayment of mortgages payable | (2,074) | (3,332) |
Proceeds from mortgage financings | 18,200 | |
Proceeds from bank line of credit | 2,500 | 41,500 |
Repayment on bank line of credit | (22,100) | |
Issuance of shares through dividend reinvestment plan | 166 | |
Payment of financing costs | (6) | (165) |
Capital contributions from non-controlling interests | 20 | |
Distributions to non-controlling interests | (13) | (8) |
Cash distributions to common stockholders | (9,261) | (8,965) |
Net cash (used in) provided by financing activities | (12,354) | 21,907 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (1,543) | 10,438 |
Cash, cash equivalents and restricted cash at beginning of year | 13,564 | 11,968 |
Cash, cash equivalents and restricted cash at end of year | 12,021 | 22,406 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest expense | $ 4,613 | 4,844 |
Supplemental disclosure of non-cash investing activity: | ||
Purchase accounting allocation - intangible lease assets | 3,905 | |
Purchase accounting allocation - intangible lease liabilities | $ (568) |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Reconciliation of cash, cash equivalents, and restricted cash | ||
Cash and cash equivalents | $ 11,245 | $ 21,360 |
Restricted cash included in escrow, deposits and other assets and receivables | 776 | 1,046 |
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ 12,021 | $ 22,406 |
ORGANIZATION AND BACKGROUND
ORGANIZATION AND BACKGROUND | 3 Months Ended |
Mar. 31, 2021 | |
ORGANIZATION AND BACKGROUND | |
ORGANIZATION AND BACKGROUND | NOTE 1 – ORGANIZATION AND BACKGROUND One Liberty Properties, Inc. (“OLP”) was incorporated in 1982 in Maryland. OLP is a self-administered and self-managed real estate investment trust (“REIT”). OLP acquires, owns and manages a geographically diversified portfolio consisting primarily of industrial, retail, restaurant, health and fitness, and theater properties, many of which are subject to long-term net leases. As of March 31, 2021, OLP owns |
SUMMARY ACCOUNTING POLICIES
SUMMARY ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2021 | |
SUMMARY ACCOUNTING POLICIES | |
SUMMARY ACCOUNTING POLICIES | NOTE 2 – SUMMARY ACCOUNTING POLICIES Principles of Consolidation/Basis of Preparation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and include all of the information and disclosures required by U.S. Generally Accepted Accounting Principles (“GAAP”) for interim reporting. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statement disclosures. In the opinion of management, all adjustments of a normal recurring nature necessary for fair presentation have been included. The results of operations for the three months ended March 31, 2021 and 2020 are not necessarily indicative of the results for the full year. These statements should be read in conjunction with the consolidated financial statements and related notes included in OLP’s Annual Report on Form 10-K for the year ended December 31, 2020. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The consolidated financial statements include the accounts and operations of OLP, its wholly-owned subsidiaries, its joint ventures in which the Company, as defined, has a controlling interest, and variable interest entities (“VIEs”) of which the Company is the primary beneficiary. OLP and its consolidated subsidiaries are referred to herein as the “Company”. Material intercompany items and transactions have been eliminated in consolidation. Investment in Joint Ventures and Variable Interest Entities The Financial Accounting Standards Board, or FASB, provides guidance for determining whether an entity is a VIE. VIEs are defined as entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. A VIE is required to be consolidated by its primary beneficiary, which is the party that (i) has the power to control the activities that most significantly impact the VIE’s economic performance and (ii) has the obligation to absorb losses, or the right to receive benefits, of the VIE that could potentially be significant to the VIE. The Company assesses the accounting treatment for each of its investments, including a review of each venture or limited liability company or partnership agreement, to determine the rights of each party and whether those rights are protective or participating. The agreements typically contain certain protective rights, such as the requirement of partner approval to sell, finance or refinance the property and to pay capital expenditures and operating expenditures outside of the approved budget or operating plan. In situations where, among other things, the Company and its partners jointly (i) approve the annual budget, (ii) approve certain expenditures, (iii) prepare or review and approve the joint venture’s tax return before filing, or (iv) approve each lease at a property, the Company does not consolidate as the Company considers these to be substantive participation rights that result in shared, joint power over the activities that most significantly impact the performance of the joint venture or property. Additionally, the Company assesses the accounting treatment for any interests pursuant to which the Company may have a variable interest as a lessor. Leases may contain certain protective rights, such as the right of sale and the receipt of certain escrow deposits. NOTE 2 – SUMMARY ACCOUNTING POLICIES (CONTINUED) The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting. All investments in unconsolidated joint ventures have sufficient equity at risk to permit the entity to finance its activities without additional subordinated financial support and, as a group, the holders of the equity at risk have power through voting rights to direct the activities of these ventures. As a result, none of these joint ventures are VIEs. In addition, the Company shares power with its co-managing members over these entities, and therefore the entities are not consolidated. These investments are recorded initially at cost, as investments in unconsolidated joint ventures, and subsequently adjusted for their share of equity in earnings, cash contributions and distributions. None of the joint venture debt is recourse to the Company, subject to standard carve-outs. The Company reviews on a quarterly basis its investments in unconsolidated joint ventures for other-than-temporary losses in investment value. Any decline that is not expected to be recovered based on the underlying assets of the investment is considered other than temporary and an impairment charge is recorded as a reduction in the carrying value of the investment. During the three months ended March 31, 2021 and 2020, there were no impairment charges related to the Company’s investments in unconsolidated joint ventures. The Company has elected to follow the cumulative earnings approach when assessing, for the consolidated statement of cash flows, whether the distribution from the investee is a return of the investor’s investment as compared to a return on its investment. The source of the cash generated by the investee to fund the distribution is not a factor in the analysis (that is, it does not matter whether the cash was generated through investee refinancing, sale of assets or operating results). Consequently, the investor only considers the relationship between the cash received from the investee to its equity in the undistributed earnings of the investee, on a cumulative basis, in assessing whether the distribution from the investee is a return on or a return of its investment. Cash received from the unconsolidated entity is presumed to be a return on the investment to the extent that, on a cumulative basis, distributions received by the investor are less than its share of the equity in the undistributed earnings of the entity. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2021 | |
LEASES | |
LEASES | NOTE 3 – LEASES Lessor Accounting The Company owns rental properties which are leased to tenants under operating leases with current expirations ranging from 2021 to 2055, with options to extend terminate components Fixed lease revenues represent the base rent that each tenant is required to pay in accordance with the terms of their respective leases reported on a straight-line basis over the non-cancelable term of the lease. Variable lease revenues include payments based on (i) tenant reimbursements, (ii) changes in the index or market-based indices after the inception of the lease, (iii) percentage rents or (iv) the operating performance of the property. Variable lease revenues are not recognized until the specific events that trigger the variable payments have occurred. NOTE 3 – LEASES (CONTINUED) The components of lease revenues are as follows (amounts in thousands): Three Months Ended March 31, 2021 2020 Fixed lease revenues $ 17,465 $ 18,067 Variable lease revenues 2,987 2,982 Lease revenues (a) $ 20,452 $ 21,049 (a) Excludes $232 and $190 of amortization related to lease intangible assets and liabilities for the three months ended March 31, 2021 and 2020, respectively. In many of the Company’s leases, the tenant is obligated to pay the real estate taxes, insurance, and certain other expenses directly to the vendor. These obligations, which have been assumed by the tenants, are not reflected in our consolidated financial statements. To the extent any such tenant defaults on its lease or if it is deemed probable that the tenant will fail to pay for such obligations, a liability for such obligations would be recorded. During the year ended December 31, 2020, in response to requests for rent relief from tenants impacted by the COVID-19 pandemic and the governmental and non-governmental responses thereto, the Company deferred and accrued $3,360,000 of rent payments. For 2020, the three months ended March 31, 2021 and for April 2021, the Company collected $497,000, $843,000 and $359,000, respectively, of such deferred rents. The $1,661,000 balance of deferred rents is deemed collectible and is expected to be collected from 2021 through 2023. On a quarterly basis, the Company assesses the collectability of substantially all lease payments due by reviewing the tenant’s payment history or financial condition. Changes to collectability are recognized as a current period adjustment to rental revenue. In February 2021, the Company executed lease amendments with Regal Cinemas, a tenant at two properties, which was adversely affected by the pandemic. In connection with the lease amendments, the Company agreed to defer an aggregate of $1,449,000 of rent otherwise payable from September 2020 through August 2021, the tenant agreed to pay an aggregate of $441,000 of rent during that same period and the parties extended the lease for one of these properties for two years . Through April 30, 2021, the tenant is current on all lease obligations in accordance with these lease amendments. The Company did not accrue the deferred rents due from September 2020 through March 2021 as collections were deemed less than probable. The Company has assessed the collectability of all recorded lease payments as probable as of March 31, 2021. Minimum Future Rents As of March 31, 2021, the minimum future contractual rents to be received on non-cancellable operating leases are included in the table below (amounts in thousands). The minimum future contractual rents do not include (i) straight-line rent or amortization of intangibles, (ii) COVID-19 lease deferral repayments accrued to rental income in 2020 and (iii) variable lease payments as described above. From April 1 – December 31, 2021 $ 52,571 For the year ended December 31, 2022 62,646 2023 53,279 2024 44,609 2025 40,391 2026 34,860 Thereafter 129,439 Total $ 417,795 NOTE 3 – LEASES (CONTINUED) Lease Termination Fees In January 2021, the Company received $350,000 as a lease termination fee from a retail tenant in connection with the exercise of an early lease termination option. The Company is amortizing this to revenues over the revised lease term expiring January 15, 2022. In December 2020, the Company received $88,000 as a lease termination fee from an industrial tenant in connection with the exercise of an early lease termination option. The Company is amortizing this to revenues over the revised lease term expiring May 31, 2021. Lessee Accounting Ground Lease The Company is a lessee under a ground lease in Greensboro, North Carolina, which is classified as an operating lease. The ground lease expires March 3, 2025 and provides for up to four, 5-year renewal options and one seven-month renewal option. As of March 31, 2021, the remaining lease term, including renewal options deemed exercised, is 13.9 years. The Company recognized lease expense related to this ground lease of $150,000 and $131,000 for the three months ended March 31, 2021 and 2020, respectively, which is included in Real estate expenses on the consolidated statements of income. Office Lease The Company is a lessee under a corporate office lease in Great Neck, New York, which is classified as an operating lease. The lease expires on December 31, 2031 and provides a 5-year renewal option. As of March 31, 2021, the remaining lease term, including the renewal option deemed exercised, is 15.8 years. The Company recognized lease expense related to this office lease of $14,000 for both the three months ended March 31, 2021 and 2020, which is included in General and administrative expenses on the consolidated statements of income. Minimum Future Lease Payments As of March 31, 2021, the minimum future lease payments related to the operating ground and office leases are as follows (amounts in thousands): From April 1 – December 31, 2021 $ 383 For the year ended December 31, 2022 506 2023 507 2024 557 2025 626 2026 627 Thereafter 6,220 Total undiscounted cash flows $ 9,426 Present value discount (2,000) Lease liability $ 7,426 |
VARIABLE INTEREST ENTITIES, CON
VARIABLE INTEREST ENTITIES, CONTINGENT LIABILITY AND CONSOLIDATED JOINT VENTURES | 3 Months Ended |
Mar. 31, 2021 | |
VARIABLE INTEREST ENTITIES, CONTINGENT LIABILITY AND CONSOLIDATED JOINT VENTURES | |
VARIABLE INTEREST ENTITIES, CONTINGENT LIABILITY AND CONSOLIDATED JOINT VENTURES | NOTE 4 – VARIABLE INTEREST ENTITIES, CONTINGENT LIABILITY AND CONSOLIDATED JOINT VENTURES Variable Interest Entity – Ground Lease The Company determined it has a variable interest through its ground lease at its Beachwood, Ohio property (The Vue Apartments) and the owner/operator is a VIE because its equity investment at risk is insufficient to finance its activities without additional subordinated financial support. The Company further determined that it is not the primary beneficiary of this VIE because the Company does not have power over the activities that most significantly impact the owner/operator’s economic performance and therefore, does not consolidate this VIE for financial statement purposes. Accordingly, the Company accounts for this investment as land and the revenues from the ground lease as Rental income, net. Ground lease rental income amounted to $243,000 for the three months ended March 31, 2020. No ground lease rental income was collected during the three months ended March 31, 2021. As of March 31, 2021, the VIE’s maximum exposure to loss was $14,560,000 which represented the carrying amount of the land. In purchasing the property in 2016, the owner/operator obtained a mortgage for $67,444,000 from a third party which, together with the Company’s purchase of the land, provided substantially all of the funds to acquire the multi-family property. The Company provided its land as collateral for the owner/operator’s mortgage loan; accordingly, the land position is subordinated to the mortgage. The mortgage balance was $66,870,000 as of March 31, 2021. Pursuant to the ground lease, as amended, the Company agreed, in its discretion, to fund 78% of (i) any operating expense shortfalls at the property and (ii) any capital expenditures required at the property. The Company funded $430,000 during the three months ended March 31, 2021 and an additional $611,000 from April 1 through May 3, 2021. These amounts are included as part of the carrying amount of the land. Variable Interest Entities – Consolidated Joint Ventures The Company has determined that the four consolidated joint ventures in which it holds between a 90% to 95 % interest are VIEs because the non-controlling interests do not hold substantive kick-out or participating rights. The Company has determined it is the primary beneficiary of these VIEs as it has the power to direct the activities that most significantly impact each joint venture’s performance including management, approval of expenditures, and the obligation to absorb the losses or rights to receive benefits. Accordingly, the Company consolidates the operations of these VIEs for financial statement purposes. The VIEs’ creditors do not have recourse to the assets of the Company other than those held by the applicable joint venture. The following is a summary of the consolidated VIEs’ carrying amounts and classification in the Company’s consolidated balance sheets, none of which are restricted (amounts in thousands): March 31, December 31, 2021 2020 Land $ 12,158 $ 12,158 Buildings and improvements, net of accumulated depreciation of $5,454 and $5,232, respectively 23,284 23,372 Cash 1,195 1,102 Unbilled rent receivable 856 861 Unamortized intangible lease assets, net 605 627 Escrow, deposits and other assets and receivables 1,051 1,089 Mortgages payable, net of unamortized deferred financing costs of $238 and $253, respectively 23,313 23,530 Accrued expenses and other liabilities 885 752 Unamortized intangible lease liabilities, net 513 526 Accumulated other comprehensive loss (99) (127) Non-controlling interests in consolidated joint ventures 1,198 1,193 As of March 31, 2021 and December 31, 2020, MCB Real Estate, LLC and its affiliates (‘‘MCB’’) are the Company’s joint venture partner in three consolidated joint ventures in which the Company has aggregate equity investments of approximately $7,489,000 and $7,495,000, respectively. Distributions to each joint venture partner are determined pursuant to the applicable operating agreement and may not be pro rata |
INVESTMENT IN UNCONSOLIDATED JO
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | 3 Months Ended |
Mar. 31, 2021 | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | NOTE 5 – INVESTMENT IN UNCONSOLIDATED JOINT VENTURES As of March 31, 2021 and December 31, 2020, the Company participated in three unconsolidated joint ventures, each of which owns and operates one property; the Company’s equity investment in these ventures totaled $10,580,000 and $10,702,000 , respectively. The Company recorded equity in loss of $22,000 and equity in earnings of $64,000 for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021 and December 31, 2020, MCB and the Company are partners in an unconsolidated joint venture in which the Company’s equity investment is approximately $8,688,000 and $8,761,000, respectively. |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 3 Months Ended |
Mar. 31, 2021 | |
DEBT OBLIGATIONS | |
DEBT OBLIGATIONS | NOTE 6 – DEBT OBLIGATIONS Mortgages Payable The following table details the Mortgages payable, net, balances per the consolidated balance sheets (amounts in thousands): March 31, December 31, 2021 2020 Mortgages payable, gross $ 427,955 $ 433,549 Unamortized deferred financing costs (3,684) (3,845) Mortgages payable, net $ 424,271 $ 429,704 Line of Credit The Company has a credit facility with Manufacturers & Traders Trust Company, People’s United Bank, VNB New York, LLC, and Bank Leumi USA, pursuant to which it may borrow up to $100,000,000, subject to borrowing base requirements. The facility is available for the acquisition of commercial real estate, repayment of mortgage debt, and renovation and operating expense purposes; provided, that if used for renovation and operating expense purposes, the amount outstanding for such purposes will not exceed the lesser of $30,000,000 and 30% of the borrowing base subject to a cap of (i) $20,000,000 for operating expense purposes and (ii) $10,000,000 for renovation expenses. On July 1, 2022, the amounts the Company can borrow for renovation expenses and operating expenses will change to $20,000,000 and $10,000,000, respectively. To the extent that as of June 30, 2022 more than $10,000,000 is outstanding for operating expense purposes, such excess must be repaid immediately. Net proceeds received from the sale, financing or refinancing of properties are generally required to be used to repay amounts outstanding under the credit facility. The facility is guaranteed by subsidiaries of the Company that own unencumbered properties and the Company pledged to the lenders the equity interests in the Company’s subsidiaries. The facility, which matures December 31, 2022, provides for an interest rate equal to the one month LIBOR rate plus an applicable margin ranging from 175 basis points to 300 basis points depending on the ratio of the Company’s total debt to total value, as determined pursuant to the facility. The applicable margin was 200 basis points at March 31, 2021 and 2020. An unused facility fee of .25% per annum applies to the facility. The average interest rate on the facility was approximately 1.88% and 3.20% for the three months ended March 31, 2021 and 2020, respectively. The Company was in compliance with all covenants under this facility at March 31, 2021. NOTE 6 – DEBT OBLIGATIONS (CONTINUED) The following table details the Line of credit, net, balances per the consolidated balance sheets (amounts in thousands): March 31, December 31, 2021 2020 Line of credit, gross $ 15,450 $ 12,950 Unamortized deferred financing costs (377) (425) Line of credit, net $ 15,073 $ 12,525 At May 3, 2021, there was an outstanding balance of $15,350,000 (before unamortized deferred financing costs) under the facility. There is $19,000,000 available for operating expense purposes. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 7 – RELATED PARTY TRANSACTIONS Compensation and Services Agreement Pursuant to the compensation and services agreement with Majestic Property Management Corp. (“Majestic”), Majestic provides the Company with the services of executive, administrative, legal, accounting, clerical and property management personnel, as well as property acquisition, sale and lease consulting and brokerage services, consulting services with respect to mortgage financings and construction supervisory services (collectively, the “Services”). Majestic is wholly-owned by the Company’s vice-chairman and certain of the Company’s executive officers are officers of, and are compensated by, Majestic. In consideration for the Services, the Company paid Majestic $785,000 and $767,000 for the three months ended March 31, 2021 and 2020, respectively. Included in these fees are Executive officers and others providing services to the Company under the compensation and services agreement were awarded shares of restricted stock and restricted stock units (“RSUs”) under the Company’s stock incentive plans (described in Note 9). The related expense charged to the Company’s operations was $652,000 and $449,000 for the three months ended March 31, 2021 and 2020, respectively. The amounts paid under the compensation and services agreement (except for the property management costs which are included in Real estate expenses) and the costs of the stock incentive plans are included in General and administrative expense on the consolidated statements of income. Joint Venture Partners and Affiliates The Company paid an aggregate of $19,000 and $20,000 for the three months ended March 31, 2021 and 2020, respectively, to its consolidated joint venture partners or their affiliates (none of whom are officers, directors, or employees of the Company) for property management services, which are included in Real estate expenses on the consolidated statements of income. The Company’s unconsolidated joint ventures paid management fees of $29,000 and $22,000 for the three months ended March 31, 2021 and 2020, respectively, to the other partner of the venture, which reduced Equity in earnings on the consolidated statements of income by $15,000 and $11,000 for the three months ended March 31, 2021 and 2020, respectively. NOTE 7 – RELATED PARTY TRANSACTIONS (CONTINUED) Other During each of the three months ended March 31, 2021 and 2020, the Company paid quarterly fees of $74,500 to the Company’s chairman and $29,800 to the Company’s vice-chairman. These fees are included in General and administrative expenses on the consolidated statements of income. The Company obtains its property insurance in conjunction with Gould Investors L.P. (“Gould Investors”), a related party, and reimburses Gould Investors annually for the Company’s insurance cost relating to its properties. Included in Real estate expenses on the consolidated statements of income is insurance expense of |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2021 | |
EARNINGS PER COMMON SHARE | |
EARNINGS PER COMMON SHARE | NOTE 8 – EARNINGS PER COMMON SHARE Basic earnings per share was determined by dividing net income allocable to common stockholders for each period by the weighted average number of shares of common stock outstanding during the applicable period. Net income is also allocated to the unvested restricted stock outstanding during each period, as the restricted stock is entitled to receive dividends and is therefore considered a participating security. As of March 31, 2021, the shares of common stock underlying the RSUs awarded between 2018 and 2020 under the 2019 and 2016 Incentive Plans (See Note 9) are excluded from the basic earnings per share calculation, as these units are not participating securities. Diluted earnings per share reflects the potential dilution that could occur if securities or other rights exercisable for, or convertible into, common stock were exercised or converted or otherwise resulted in the issuance of common stock that shared in the earnings of the Company. The following table provides a reconciliation of the numerator and denominator of earnings per share calculations (amounts in thousands, except per share amounts): Three Months Ended March 31, 2021 2020 Numerator for basic and diluted earnings per share: Net income $ 2,957 $ 7,831 Add (deduct) net loss (income) attributable to non-controlling interests 5 (5) Deduct earnings allocated to unvested restricted stock (a) (325) (316) Net income available for common stockholders: basic and diluted $ 2,637 $ 7,510 Denominator for basic earnings per share: Weighted average number of common shares outstanding 20,003 19,361 Effect of dilutive securities: RSUs 58 13 Denominator for diluted earnings per share: Weighted average number of shares 20,061 19,374 Earnings per common share, basic and diluted $ .13 $ .39 (a) Represents an allocation of distributed earnings to unvested restricted stock that, as participating securities, are entitled to receive dividends. NOTE 8 – EARNINGS PER COMMON SHARE (CONTINUED) The following table identifies the number of shares of common stock underlying the RSUs that are included in the calculation, on a diluted basis, of the weighted average number of shares of common stock: Three Months Ended March 31, 2021 : Total Number Shares Included Based on of Underlying Return on Stockholder Shares Date of Award Shares (b)(c) Capital Metric Return Metric Total Excluded (d) July 1, 2018 73,750 25,306 — 25,306 48,444 July 1, 2019 75,026 23,970 — 23,970 51,056 August 3, 2020 75,026 37,513 37,513 75,026 — Totals 223,802 86,789 37,513 124,302 99,500 Three Months Ended March 31, 2020 : Total Number Shares Included Based on of Underlying Return on Stockholder Shares Date of Award Shares (b)(c) Capital Metric Return Metric Total Excluded (d) September 26, 2017 76,250 26,036 — 26,036 50,214 July 1, 2018 73,750 20,423 — 20,423 53,327 July 1, 2019 75,026 12,261 — 12,261 62,765 Totals 225,026 58,720 — 58,720 166,306 (a) Reflects the number of shares underlying RSUs that would be issued assuming the measurement date used to determine whether the applicable conditions are satisfied is March 31, 2021. (b) The RSUs awarded in 2018, 2019 and 2020 vest, subject to satisfaction of the applicable market and/or performance conditions, on June 30, 2021, 2022 and 2023, respectively (see Note 9). (c) During 2019, 2,500 shares of the 2018 award and 2,750 shares of the 2019 award were forfeited (see Note 9). (d) Excluded as the applicable conditions had not been met for these shares at the applicable measurement dates. (e) Reflects the number of shares underlying RSUs that would be issued assuming the measurement date used to determine whether the applicable conditions are satisfied is March 31, 2020. (f) With respect to the RSUs awarded September 26, 2017, 24,343 shares vested and 51,907 shares were forfeited in 2020 (see Note 9). |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2021 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | NOTE 9 – STOCKHOLDERS’ EQUITY Common Stock Dividend On March 12, 2021, the Board of Directors declared a quarterly cash dividend of $0.45 per share on the Company’s common stock, totaling approximately $9,329,000 . The quarterly dividend is payable on April 7, 2021 to stockholders of record on March 24, 2021. Dividend Reinvestment Plan On June 10, 2020, the Company temporarily suspended the dividend reinvestment feature of its Dividend Reinvestment Plan (the “DRP”). The DRP, among other things, provided stockholders with the opportunity to reinvest all, or a portion of, their cash dividends paid on the Company’s common stock in additional shares of its common stock, at a discount of up to 5% from the market price (as such price is calculated pursuant to the DRP). The discount was determined in the Company’s sole discretion and had been offered at a 5% discount from market. Under the DRP, the Company issued 7,000 shares of common stock during the three months ended March 31, 2020. NOTE 9 – STOCKHOLDERS’ EQUITY (CONTINUED) Stock Based Compensation The Company’s 2019 Incentive Plan (“Plan”), approved by the Company’s stockholders in June 2019, permits the Company to grant, among other things, stock options, restricted stock, RSUs, performance share awards and dividend equivalent rights and any one or more of the foregoing to its employees, officers, directors and consultants. A maximum of 750,000 shares of the Company’s common stock is authorized for issuance pursuant to this Plan. As of March 31, 2021, an aggregate of 450,952 shares subject to awards in the form of restricted stock (300,900 shares) and RSUs (150,052 shares) are outstanding under the Plan. Under the Company’s 2016 equity incentive plan (the “Prior Plan”), as of March 31, 2021, (i) an aggregate of 495,900 shares in the form of restricted stock (422,150 shares) and RSUs (73,750 shares) are outstanding and have not yet vested, and (ii) with respect to 76,250 shares of common stock underlying RSUs that had been granted in 2017, 24,343 shares were deemed to have vested in 2020 and such shares were issued after the Compensation Committee determined that the metrics with respect to such shares had been satisfied. RSUs with respect to the 51,907 share balance were forfeited. No additional awards may be granted under the Prior Plan. For accounting purposes, the restricted stock is not included in the shares shown as outstanding on the balance sheet until they vest; however, dividends are paid on the unvested shares. The restricted stock grants are charged to General and administrative expense over the respective vesting periods based on the market value of the common stock on the grant date. Unless earlier forfeited because the participant’s relationship with the Company terminated, unvested restricted stock awards vest five years In 2020, 2019 and 2018, the Company granted RSUs exchangeable for up to 75,026, 77,776, and 76,250 shares, respectively, of common stock upon satisfaction, through June 30, 2023, June 30, 2022 and June 30, 2021, respectively, of specified conditions. Specifically, up to 50% of these RSUs vest upon achievement of metrics related to average annual total stockholder return (the “TSR Awards”), which metrics meet the definition of a market condition, and up to 50% vest upon achievement of metrics related to average annual return on capital (the “ROC Awards”), which metrics meet the definition of a performance condition. The holders of the RSUs are not entitled to dividends or to vote the underlying shares until such RSUs vest and shares are issued. Accordingly, the shares underlying these RSUs are not included in the shares shown as outstanding on the balance sheet. For the TSR Awards, a third party appraiser prepared a Monte Carlo simulation pricing model to determine the fair value, which is recognized ratably over the service period. For the ROC Awards, the fair value is based on the market value on the date of grant and the performance assumptions are re-evaluated quarterly. The Company does not recognize expense on ROC Awards which it does not expect to vest. During 2019, RSUs exchangeable in 2021 and 2022 for an aggregate of 5,250 shares were forfeited. As of March 31, 2021, based on performance and market assumptions, the fair value of the RSUs granted in 2020, 2019 and 2018 is $962,000, $1,446,000 and $1,006,000, respectively. Recognition of such deferred compensation will be charged to General and administrative expense over the respective three year performance cycle. None of these RSUs were forfeited or vested NOTE 9 – STOCKHOLDERS’ EQUITY (CONTINUED) The following is a summary of the activity of the equity incentive plans: Three Months Ended March 31, 2021 2020 Restricted stock grants: Number of shares 151,500 149,550 Average per share grant price $ 20.34 $ 28.10 Deferred compensation to be recognized over vesting period $ 3,082,000 $ 4,202,000 Number of non-vested shares: Non-vested beginning of year 701,675 674,250 Grants 151,500 149,550 Vested during period (129,925) (122,125) Forfeitures (200) — Non-vested end of period 723,050 701,675 RSU grants: Number of underlying shares — — Average per share grant price $ — $ — Deferred compensation to be recognized over vesting period $ — $ — Number of non-vested shares: Non-vested beginning of year 223,802 225,026 Grants — — Vested during period — — Forfeitures — — Non-vested end of period 223,802 225,026 Restricted stock and RSU grants (based on grant price): Weighted average per share value of non-vested shares $ 24.68 $ 25.52 Value of stock vested during the period $ 2,825,000 $ 3,004,000 Weighted average per share value of shares forfeited during the period $ 23.62 $ — Total charge to operations: Outstanding restricted stock grants $ 897,000 $ 875,000 Outstanding RSUs 446,000 101,000 Total charge to operations $ 1,343,000 $ 976,000 As of March 31, 2021, total compensation costs of $9,994,000 and $1,432,000 related to non-vested restricted stock awards and RSUs, respectively, have not yet been recognized. These compensation costs will be charged to General and administrative expense over the remaining respective vesting periods. The weighted average remaining vesting period is |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2021 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 10 – FAIR VALUE MEASUREMENTS The Company measures the fair value of financial instruments based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a fair value hierarchy distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. In accordance with the fair value hierarchy, Level 1 assets/liabilities are valued based on quoted prices for identical instruments in active markets, Level 2 assets/liabilities are valued based on quoted prices in active markets for similar instruments, on quoted prices in less active or inactive markets, or on other “observable” market inputs and Level 3 assets/liabilities are valued based significantly on “unobservable” market inputs. The carrying amounts of cash and cash equivalents, escrow, deposits and other assets and receivables (excluding interest rate swaps), dividends payable, and accrued expenses and other liabilities (excluding interest rate swaps), are not measured at fair value on a recurring basis, but are considered to be recorded at amounts that approximate fair value. At March 31, 2021, the $444,282,000 estimated fair value of the Company’s mortgages payable is greater than their $427,955,000 carrying value (before unamortized deferred financing costs) by approximately $16,327,000 assuming a blended market interest rate of 3.5% based on 6.9 year weighted average remaining term to maturity of the mortgages. At December 31, 2020, the $461,965,000 estimated fair value of the Company’s mortgages payable is greater than their $433,549,000 carrying value (before unamortized deferred financing costs) by approximately $28,416,000, assuming a blended market interest rate of 3.0% based on the 7.1 year weighted average remaining term to maturity of the mortgages. At March 31, 2021 and December 31, 2020, the carrying amount of the Company’s line of credit (before unamortized deferred financing costs) of $15,450,000 and $12,950,000, respectively, approximates its fair value. The fair value of the Company’s mortgages payable and line of credit are estimated using unobservable inputs such as available market information and discounted cash flow analysis based on borrowing rates the Company believes it could obtain with similar terms and maturities. These fair value measurements fall within Level 3 of the fair value hierarchy. Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Fair Value on a Recurring Basis As of March 31, 2021, the Company had in effect 22 interest rate derivatives, all of which were interest rate swaps, related to 22 outstanding mortgage loans with an aggregate $81,862,000 notional amount maturing between 2021 and 2028 (weighted average remaining term to maturity of 3.7 years). The Company’s objective in using interest rate swaps is to add stability to interest expense. These interest rate swaps, all of which were designated as cash flow hedges, converted LIBOR based variable rate mortgages to fixed annual rate mortgages (with interest rates ranging from 3.02% to 5.16% and a weighted average interest rate of 3.95 % at March 31, 2021). The Company does not use derivatives for trading or speculative purposes. The fair value of the Company’s derivative financial instruments, all of which were financial liabilities, was determined to be the following (amounts in thousands): Carrying and Balance Sheet Financial liabilities: As of Fair Value Classification Interest rate swaps March 31, 2021 $ 3,511 Other liabilities December 31, 2020 5,012 NOTE 10 – FAIR VALUE MEASUREMENTS (CONTINUED) Fair values are approximated using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivatives. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. Although the Company has determined the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with it use Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparty. As of March 31, 2021, the Company has assessed and determined the impact of the credit valuation adjustments on the overall valuation of its derivative positions is not significant. As a result, the Company determined its derivative valuation is classified in Level 2 of the fair value hierarchy. The Company does not currently own any financial instruments that are measured on a recurring basis and that are classified as Level 1 or 3. The following table presents the effect of the Company’s derivative financial instruments on the consolidated statements of income for the periods presented (amounts in thousands): Three Months Ended March 31, 2021 2020 Amount of gain (loss) recognized on derivatives in other comprehensive loss $ 1,093 $ (4,928) Amount of reclassification from Accumulated other comprehensive loss into Interest expense (408) (110) No amounts were reclassified from Accumulated other comprehensive loss into interest expense as a result of forecasted transactions being no longer probable of occurring for the three months ended March 31, 2021 and 2020. No gain or loss was recognized with respect to amounts excluded from effectiveness testing on the Company’s cash flow hedges for the three months ended March 31, 2021 and 2020. During the twelve months ending March 31, 2022, the Company estimates an additional $1,547,000 will be reclassified from Accumulated other comprehensive loss as an increase to Interest expense. The derivative agreements in effect at March 31, 2021 provide that if the wholly-owned subsidiary of the Company which is a party to such agreement defaults or is capable of being declared in default on any of its indebtedness, then a default can be declared on such subsidiary’s derivative obligation. In addition, the Company is a party to the derivative agreements and if there is a default by the subsidiary on the loan subject to the derivative agreement to which the Company is a party and if there are swap breakage losses on account of the derivative being terminated early, the Company could be held liable for such swap breakage losses. As of March 31, 2021 and December 31, 2020, the fair value of the derivatives in a liability position, including accrued interest of $123,000 and $120,000, respectively, but excluding any adjustments for non-performance risk, was approximately $3,727,000 and $5,314,000 , respectively. In the event the Company had breached the contractual provisions of the derivative contracts, it would be required to settle its obligations thereunder at their termination liability value of as of March 31, 2021 and December 31, 2020, respectively. This termination liability value, net of adjustments for non-performance risk of |
OTHER INCOME
OTHER INCOME | 3 Months Ended |
Mar. 31, 2021 | |
OTHER INCOME | |
OTHER INCOME | NOTE 11 – OTHER INCOME Lease Assignment Fee Income In March 2021, the Company received a one-time $100,000 fee from a tenant in connection with consenting to a lease assignment related to six of its properties; such amount is included in Other income on the consolidated statement of income for the three months ended March 31, 2021. Insurance Recoveries on Hurricane Casualty In 2020, a portion of a multi-tenanted building at the Company’s Lake Charles, Louisiana property was damaged due to Hurricane Laura and the Company recognized an impairment loss of $430,000 for the damaged portion of the building. The Company submitted a claim to its insurance carrier to cover, subject to a $250,000 deductible, the (i) estimated $2,100,000 cost to rebuild the damaged portion of the building and (ii) $129,000 of losses in rental income. In 2020, the Company recorded a receivable of $430,000 related to this claim as income on insurance recoveries, of which $150,000 was collected by December 31, 2020. Through March 31, 2021, the Company received an additional $300,000 advance from the insurance carrier, of which a $20,000 gain is included in Other income on the consolidated statement of income for the three months ended March 31, 2021. Interest Income on Loan Receivable In December 2020, in connection with a sale of two properties in Houston, Texas, the Company provided a $4,612,500 one-year loan representing 50 % of the purchase price as seller-financing to the buyer which is included in other receivables on the consolidated balance sheets at March 31, 2021 and December 31, 2020. The Company received $46,000 of interest income on this loan during the three months ended March 31, 2021, which is recorded in Other income on the consolidated statement of income. The Company has evaluated the credit loss using the loss-rate method and determined the expected credit loss on this loan is immaterial for the three months ended March 31, 2021. On April 26, 2021, the loan was repaid. |
SALE OF PROPERTY
SALE OF PROPERTY | 3 Months Ended |
Mar. 31, 2021 | |
SALE OF PROPERTY | |
SALE OF PROPERTY | NOTE 12 SALE OF PROPERTY In 2020, the Company sold a retail property located in Onalaska, Wisconsin for approximately $7,093,000, net of closing costs. The sale resulted in a gain of $4,252,000 which was recorded as Gain on sale of real estate, net, in the consolidated statement of income for the three months ended March 31, 2020. In connection with the sale, the Company paid off the $3,332,000 mortgage and incurred a $290,000 debt prepayment cost which was recorded as Prepayment costs on debt in the consolidated statement of income for the three months ended March 31, 2020. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2021 | |
NEW ACCOUNTING PRONOUNCEMENTS | |
NEW ACCOUNTING PRONOUNCEMENTS | NOTE 13 – NEW ACCOUNTING PRONOUNCEMENTS In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) , which contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. Through the three months ended March 31, 2021, the Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company may apply other elections, as applicable, as additional changes in the market occur. The Company continues to evaluate the new guidance to determine the extent to which it may impact the Company’s consolidated financial statements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 14 – SUBSEQUENT EVENTS Subsequent events have been evaluated and except as disclosed herein, there were no other events relative to the consolidated financial statements that require additional disclosure. |
SUMMARY ACCOUNTING POLICIES (Po
SUMMARY ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
SUMMARY ACCOUNTING POLICIES | |
Principles of Consolidation/Basis of Preparation | Principles of Consolidation/Basis of Preparation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and include all of the information and disclosures required by U.S. Generally Accepted Accounting Principles (“GAAP”) for interim reporting. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statement disclosures. In the opinion of management, all adjustments of a normal recurring nature necessary for fair presentation have been included. The results of operations for the three months ended March 31, 2021 and 2020 are not necessarily indicative of the results for the full year. These statements should be read in conjunction with the consolidated financial statements and related notes included in OLP’s Annual Report on Form 10-K for the year ended December 31, 2020. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The consolidated financial statements include the accounts and operations of OLP, its wholly-owned subsidiaries, its joint ventures in which the Company, as defined, has a controlling interest, and variable interest entities (“VIEs”) of which the Company is the primary beneficiary. OLP and its consolidated subsidiaries are referred to herein as the “Company”. Material intercompany items and transactions have been eliminated in consolidation. |
Investment in Joint Ventures and Variable Interest Entities | Investment in Joint Ventures and Variable Interest Entities The Financial Accounting Standards Board, or FASB, provides guidance for determining whether an entity is a VIE. VIEs are defined as entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. A VIE is required to be consolidated by its primary beneficiary, which is the party that (i) has the power to control the activities that most significantly impact the VIE’s economic performance and (ii) has the obligation to absorb losses, or the right to receive benefits, of the VIE that could potentially be significant to the VIE. The Company assesses the accounting treatment for each of its investments, including a review of each venture or limited liability company or partnership agreement, to determine the rights of each party and whether those rights are protective or participating. The agreements typically contain certain protective rights, such as the requirement of partner approval to sell, finance or refinance the property and to pay capital expenditures and operating expenditures outside of the approved budget or operating plan. In situations where, among other things, the Company and its partners jointly (i) approve the annual budget, (ii) approve certain expenditures, (iii) prepare or review and approve the joint venture’s tax return before filing, or (iv) approve each lease at a property, the Company does not consolidate as the Company considers these to be substantive participation rights that result in shared, joint power over the activities that most significantly impact the performance of the joint venture or property. Additionally, the Company assesses the accounting treatment for any interests pursuant to which the Company may have a variable interest as a lessor. Leases may contain certain protective rights, such as the right of sale and the receipt of certain escrow deposits. NOTE 2 – SUMMARY ACCOUNTING POLICIES (CONTINUED) The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting. All investments in unconsolidated joint ventures have sufficient equity at risk to permit the entity to finance its activities without additional subordinated financial support and, as a group, the holders of the equity at risk have power through voting rights to direct the activities of these ventures. As a result, none of these joint ventures are VIEs. In addition, the Company shares power with its co-managing members over these entities, and therefore the entities are not consolidated. These investments are recorded initially at cost, as investments in unconsolidated joint ventures, and subsequently adjusted for their share of equity in earnings, cash contributions and distributions. None of the joint venture debt is recourse to the Company, subject to standard carve-outs. The Company reviews on a quarterly basis its investments in unconsolidated joint ventures for other-than-temporary losses in investment value. Any decline that is not expected to be recovered based on the underlying assets of the investment is considered other than temporary and an impairment charge is recorded as a reduction in the carrying value of the investment. During the three months ended March 31, 2021 and 2020, there were no impairment charges related to the Company’s investments in unconsolidated joint ventures. The Company has elected to follow the cumulative earnings approach when assessing, for the consolidated statement of cash flows, whether the distribution from the investee is a return of the investor’s investment as compared to a return on its investment. The source of the cash generated by the investee to fund the distribution is not a factor in the analysis (that is, it does not matter whether the cash was generated through investee refinancing, sale of assets or operating results). Consequently, the investor only considers the relationship between the cash received from the investee to its equity in the undistributed earnings of the investee, on a cumulative basis, in assessing whether the distribution from the investee is a return on or a return of its investment. Cash received from the unconsolidated entity is presumed to be a return on the investment to the extent that, on a cumulative basis, distributions received by the investor are less than its share of the equity in the undistributed earnings of the entity. |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
LEASES | |
Schedule of components of lease revenues | The components of lease revenues are as follows (amounts in thousands): Three Months Ended March 31, 2021 2020 Fixed lease revenues $ 17,465 $ 18,067 Variable lease revenues 2,987 2,982 Lease revenues (a) $ 20,452 $ 21,049 (a) Excludes $232 and $190 of amortization related to lease intangible assets and liabilities for the three months ended March 31, 2021 and 2020, respectively. |
Schedule of minimum future contractual rents to be received | As of March 31, 2021, the minimum future contractual rents to be received on non-cancellable operating leases are included in the table below (amounts in thousands). The minimum future contractual rents do not include (i) straight-line rent or amortization of intangibles, (ii) COVID-19 lease deferral repayments accrued to rental income in 2020 and (iii) variable lease payments as described above. From April 1 – December 31, 2021 $ 52,571 For the year ended December 31, 2022 62,646 2023 53,279 2024 44,609 2025 40,391 2026 34,860 Thereafter 129,439 Total $ 417,795 |
Schedule of minimum future lease payments | As of March 31, 2021, the minimum future lease payments related to the operating ground and office leases are as follows (amounts in thousands): From April 1 – December 31, 2021 $ 383 For the year ended December 31, 2022 506 2023 507 2024 557 2025 626 2026 627 Thereafter 6,220 Total undiscounted cash flows $ 9,426 Present value discount (2,000) Lease liability $ 7,426 |
VARIABLE INTEREST ENTITIES, C_2
VARIABLE INTEREST ENTITIES, CONTINGENT LIABILITY AND CONSOLIDATED JOINT VENTURES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Consolidated Joint Venture-VIEs | |
Variable Interest Entities | |
Schedule of the consolidated VIE's carrying amounts and classification in the Company's balance sheet | The following is a summary of the consolidated VIEs’ carrying amounts and classification in the Company’s consolidated balance sheets, none of which are restricted (amounts in thousands): March 31, December 31, 2021 2020 Land $ 12,158 $ 12,158 Buildings and improvements, net of accumulated depreciation of $5,454 and $5,232, respectively 23,284 23,372 Cash 1,195 1,102 Unbilled rent receivable 856 861 Unamortized intangible lease assets, net 605 627 Escrow, deposits and other assets and receivables 1,051 1,089 Mortgages payable, net of unamortized deferred financing costs of $238 and $253, respectively 23,313 23,530 Accrued expenses and other liabilities 885 752 Unamortized intangible lease liabilities, net 513 526 Accumulated other comprehensive loss (99) (127) Non-controlling interests in consolidated joint ventures 1,198 1,193 |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
DEBT OBLIGATIONS | |
Schedule of mortgages payable, net | The following table details the Mortgages payable, net, balances per the consolidated balance sheets (amounts in thousands): March 31, December 31, 2021 2020 Mortgages payable, gross $ 427,955 $ 433,549 Unamortized deferred financing costs (3,684) (3,845) Mortgages payable, net $ 424,271 $ 429,704 |
Schedule of line of credit, net | The following table details the Line of credit, net, balances per the consolidated balance sheets (amounts in thousands): March 31, December 31, 2021 2020 Line of credit, gross $ 15,450 $ 12,950 Unamortized deferred financing costs (377) (425) Line of credit, net $ 15,073 $ 12,525 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
EARNINGS PER COMMON SHARE | |
Schedule of reconciliation of the numerator and denominator of earnings per share calculations | The following table provides a reconciliation of the numerator and denominator of earnings per share calculations (amounts in thousands, except per share amounts): Three Months Ended March 31, 2021 2020 Numerator for basic and diluted earnings per share: Net income $ 2,957 $ 7,831 Add (deduct) net loss (income) attributable to non-controlling interests 5 (5) Deduct earnings allocated to unvested restricted stock (a) (325) (316) Net income available for common stockholders: basic and diluted $ 2,637 $ 7,510 Denominator for basic earnings per share: Weighted average number of common shares outstanding 20,003 19,361 Effect of dilutive securities: RSUs 58 13 Denominator for diluted earnings per share: Weighted average number of shares 20,061 19,374 Earnings per common share, basic and diluted $ .13 $ .39 (a) Represents an allocation of distributed earnings to unvested restricted stock that, as participating securities, are entitled to receive dividends. |
Schedule of impact to the diluted weighted average number of shares of common stock related to the RSUs | Three Months Ended March 31, 2021 : Total Number Shares Included Based on of Underlying Return on Stockholder Shares Date of Award Shares (b)(c) Capital Metric Return Metric Total Excluded (d) July 1, 2018 73,750 25,306 — 25,306 48,444 July 1, 2019 75,026 23,970 — 23,970 51,056 August 3, 2020 75,026 37,513 37,513 75,026 — Totals 223,802 86,789 37,513 124,302 99,500 Three Months Ended March 31, 2020 : Total Number Shares Included Based on of Underlying Return on Stockholder Shares Date of Award Shares (b)(c) Capital Metric Return Metric Total Excluded (d) September 26, 2017 76,250 26,036 — 26,036 50,214 July 1, 2018 73,750 20,423 — 20,423 53,327 July 1, 2019 75,026 12,261 — 12,261 62,765 Totals 225,026 58,720 — 58,720 166,306 (a) Reflects the number of shares underlying RSUs that would be issued assuming the measurement date used to determine whether the applicable conditions are satisfied is March 31, 2021. (b) The RSUs awarded in 2018, 2019 and 2020 vest, subject to satisfaction of the applicable market and/or performance conditions, on June 30, 2021, 2022 and 2023, respectively (see Note 9). (c) During 2019, 2,500 shares of the 2018 award and 2,750 shares of the 2019 award were forfeited (see Note 9). (d) Excluded as the applicable conditions had not been met for these shares at the applicable measurement dates. (e) Reflects the number of shares underlying RSUs that would be issued assuming the measurement date used to determine whether the applicable conditions are satisfied is March 31, 2020. (f) With respect to the RSUs awarded September 26, 2017, 24,343 shares vested and 51,907 shares were forfeited in 2020 (see Note 9). |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
STOCKHOLDERS' EQUITY | |
Schedule of equity incentive plans | The following is a summary of the activity of the equity incentive plans: Three Months Ended March 31, 2021 2020 Restricted stock grants: Number of shares 151,500 149,550 Average per share grant price $ 20.34 $ 28.10 Deferred compensation to be recognized over vesting period $ 3,082,000 $ 4,202,000 Number of non-vested shares: Non-vested beginning of year 701,675 674,250 Grants 151,500 149,550 Vested during period (129,925) (122,125) Forfeitures (200) — Non-vested end of period 723,050 701,675 RSU grants: Number of underlying shares — — Average per share grant price $ — $ — Deferred compensation to be recognized over vesting period $ — $ — Number of non-vested shares: Non-vested beginning of year 223,802 225,026 Grants — — Vested during period — — Forfeitures — — Non-vested end of period 223,802 225,026 Restricted stock and RSU grants (based on grant price): Weighted average per share value of non-vested shares $ 24.68 $ 25.52 Value of stock vested during the period $ 2,825,000 $ 3,004,000 Weighted average per share value of shares forfeited during the period $ 23.62 $ — Total charge to operations: Outstanding restricted stock grants $ 897,000 $ 875,000 Outstanding RSUs 446,000 101,000 Total charge to operations $ 1,343,000 $ 976,000 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
FAIR VALUE MEASUREMENTS | |
Schedule of derivative financial instruments measured at fair value | The fair value of the Company’s derivative financial instruments, all of which were financial liabilities, was determined to be the following (amounts in thousands): Carrying and Balance Sheet Financial liabilities: As of Fair Value Classification Interest rate swaps March 31, 2021 $ 3,511 Other liabilities December 31, 2020 5,012 |
Schedule of effect of derivative financial instruments on statements of income | The following table presents the effect of the Company’s derivative financial instruments on the consolidated statements of income for the periods presented (amounts in thousands): Three Months Ended March 31, 2021 2020 Amount of gain (loss) recognized on derivatives in other comprehensive loss $ 1,093 $ (4,928) Amount of reclassification from Accumulated other comprehensive loss into Interest expense (408) (110) |
ORGANIZATION AND BACKGROUND (De
ORGANIZATION AND BACKGROUND (Details) | Mar. 31, 2021stateproperty |
Organization and Background | |
Number of real estate properties | 123 |
Number of states in which properties are located | state | 31 |
Properties owned by consolidated joint ventures | |
Organization and Background | |
Number of real estate properties | 4 |
Properties owned by unconsolidated joint ventures | |
Organization and Background | |
Number of real estate properties | 3 |
SUMMARY ACCOUNTING POLICIES (De
SUMMARY ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Investment in Joint Ventures and Variable Interest Entities | ||
Impairment charge relating to investments in unconsolidated joint ventures | $ 0 | $ 0 |
LEASES - As Lessor (Details)
LEASES - As Lessor (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2021USD ($) | Feb. 28, 2021USD ($)item | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Lessor Accounting | |||||
Operating Lease, option to extend | true | ||||
Operating Lease, option to terminate | true | ||||
Practical expedient, single lease component | false | ||||
Components of lease revenues | |||||
Fixed lease revenues | $ 17,465,000 | $ 18,067,000 | |||
Variable lease revenues | 2,987,000 | 2,982,000 | |||
Lease revenues | 20,452,000 | 21,049,000 | |||
Amortization of intangibles relating to leases, net | 232,000 | $ 190,000 | |||
Additional disclosures | |||||
Deferred rents outstanding | 1,661,000 | ||||
Regal Cinemas | |||||
Additional disclosures | |||||
Number of lease amendments executed | item | 2 | ||||
Number of leases extended | item | 1 | ||||
Renewal term | 2 years | ||||
Regal Cinemas | Rents otherwise payable from September 2020 to August 2021 | |||||
Additional disclosures | |||||
Deferred lease rent | $ 1,449,000 | ||||
Rent amount the tenant agreed to pay | $ 441,000 | ||||
COVID-19 | |||||
Additional disclosures | |||||
Deferred lease rent | $ 3,360,000 | ||||
Repayments of COVID-19 related deferred rent | $ 359,000 | $ 843,000 | $ 497,000 |
LEASES - As Lessor - Minimum Fu
LEASES - As Lessor - Minimum Future Rents (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Minimum future contractual base rents to be received | |
From April 1 - December 31, 2021 | $ 52,571 |
For the year ended December 31, 2022 | 62,646 |
For the year ended December 31, 2023 | 53,279 |
For the year ended December 31, 2024 | 44,609 |
For the year ended December 31, 2025 | 40,391 |
For the year ended December 31, 2026 | 34,860 |
Thereafter | 129,439 |
Total | $ 417,795 |
LEASES - As Lessor - Lease Term
LEASES - As Lessor - Lease Termination Fees (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Lease Termination Fee | ||||
Revenue | $ 20,816,000 | $ 21,239,000 | ||
Retail tenants | ||||
Lease Termination Fee | ||||
Payments received upon early lease termination | $ 350,000 | |||
Industrial tenants | ||||
Lease Termination Fee | ||||
Payments received upon early lease termination | $ 88,000 | |||
Rental income, net | ||||
Lease Termination Fee | ||||
Revenue | 20,684,000 | $ 21,239,000 | ||
Lease termination fees | ||||
Lease Termination Fee | ||||
Revenue | $ 132,000 |
LEASES - As Lessee - Ground Lea
LEASES - As Lessee - Ground Lease and Office Lease (Details) | 3 Months Ended | |
Mar. 31, 2021USD ($)item | Mar. 31, 2020USD ($) | |
Real Estate in Greensboro, NC | ||
Lessee Accounting | ||
Operating lease, option to extend | true | |
Operating lease, remaining lease term | 13 years 10 months 24 days | |
Operating lease expense | $ | $ 150,000 | $ 131,000 |
Real Estate in Greensboro, NC | Maximum | ||
Lessee Accounting | ||
Operating lease, number of renewal options | item | 4 | |
Real Estate in Greensboro, NC | Five-Year Lease | ||
Lessee Accounting | ||
Operating lease, renewal term | 5 years | |
Real Estate in Greensboro, NC | Seven-Month Lease | ||
Lessee Accounting | ||
Operating lease, number of renewal options | item | 1 | |
Operating lease, renewal term | 7 months | |
Corporate office lease in Great Neck, NY | ||
Lessee Accounting | ||
Operating lease, option to extend | true | |
Operating lease, remaining lease term | 15 years 9 months 18 days | |
Operating lease expense | $ | $ 14,000 | $ 14,000 |
Corporate office lease in Great Neck, NY | Five-Year Lease | ||
Lessee Accounting | ||
Operating lease, renewal term | 5 years |
LEASES - As Lessee - Minimum Fu
LEASES - As Lessee - Minimum Future Lease Payments (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Minimum future lease payments under ASC 842 | |
From April 1 - December 31, 2021 | $ 383 |
For the year ended December 31, 2022 | 506 |
For the year ended December 31, 2023 | 507 |
For the year ended December 31, 2024 | 557 |
For the year ended December 31, 2025 | 626 |
For the year ended December 31, 2026 | 627 |
Thereafter | 6,220 |
Total undiscounted cash flows | 9,426 |
Present value discount | (2,000) |
Lease liability | $ 7,426 |
VARIABLE INTEREST ENTITIES, C_3
VARIABLE INTEREST ENTITIES, CONTINGENT LIABILITY AND CONSOLIDATED JOINT VENTURES - Ground Leases (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
May 03, 2021 | Nov. 30, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2016 | |
Variable Interest Entities - Ground Lease | |||||
Revenue | $ 20,816,000 | $ 21,239,000 | |||
Variable Interest Entity, Not Primary Beneficiary | The Vue Apartments, Beachwood, Ohio | |||||
Variable Interest Entities - Ground Lease | |||||
Maximum Exposure to Loss | 14,560,000 | ||||
Owner/ Operator Mortgage from Third Party | $ 67,444,000 | ||||
Current Balance of Owner or Operator Mortgage Debt Obtained From Third Party | 66,870,000 | ||||
Percentage of operating expense shortfalls covered by the Company | 78.00% | ||||
Amount of operating expense shortfalls covered by the Company | $ 611,000 | 430,000 | |||
Variable Interest Entity, Not Primary Beneficiary | The Vue Apartments, Beachwood, Ohio | Ground lease rental income | |||||
Variable Interest Entities - Ground Lease | |||||
Revenue | $ 0 | $ 243,000 |
VARIABLE INTEREST ENTITIES, C_4
VARIABLE INTEREST ENTITIES, CONTINGENT LIABILITY AND CONSOLIDATED JOINT VENTURES - Consolidated Joint Ventures (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)item | Dec. 31, 2020USD ($) | ||
Consolidated VIEs Carrying Amount of Assets and Liabilities | |||
Land | $ 191,050 | $ 190,391 | |
Unbilled rent receivable | 15,391 | 15,438 | |
Unamortized intangible lease assets, net | 23,306 | 24,703 | |
Escrow, deposits and other assets and receivables | 18,953 | 20,667 | |
Mortgages payable, net of unamortized deferred financing costs of $238 and $253, respectively | 424,271 | 429,704 | |
Accrued expenses and other liabilities | 20,260 | 21,498 | |
Unamortized intangible lease liabilities, net | 10,794 | 11,189 | |
Accumulated other comprehensive loss | (3,504) | (5,002) | |
Non-controlling interests in consolidated joint ventures | [1] | 1,198 | 1,193 |
Mortgages payable | |||
Consolidated VIEs Carrying Amount of Assets and Liabilities | |||
Mortgages payable, net of unamortized deferred financing costs of $238 and $253, respectively | 424,271 | 429,704 | |
Unamortized deferred financing costs | $ 3,684 | 3,845 | |
Consolidated Joint Venture-VIEs | |||
Variable Interest Entities | |||
Number of joint ventures with controlling interest | item | 4 | ||
Consolidated VIEs Carrying Amount of Assets and Liabilities | |||
Land | $ 12,158 | 12,158 | |
Buildings and improvements, net of accumulated depreciation of $5,454 and $5,232, respectively | 23,284 | 23,372 | |
Accumulated depreciation | 5,454 | 5,232 | |
Cash | 1,195 | 1,102 | |
Unbilled rent receivable | 856 | 861 | |
Unamortized intangible lease assets, net | 605 | 627 | |
Escrow, deposits and other assets and receivables | 1,051 | 1,089 | |
Mortgages payable, net of unamortized deferred financing costs of $238 and $253, respectively | 23,313 | 23,530 | |
Accrued expenses and other liabilities | 885 | 752 | |
Unamortized intangible lease liabilities, net | 513 | 526 | |
Accumulated other comprehensive loss | (99) | (127) | |
Non-controlling interests in consolidated joint ventures | $ 1,198 | 1,193 | |
Consolidated Joint Venture-VIEs | Minimum | |||
Variable Interest Entities | |||
Ownership interest in consolidated joint venture of the company (as a percent) | 90.00% | ||
Consolidated Joint Venture-VIEs | Maximum | |||
Variable Interest Entities | |||
Ownership interest in consolidated joint venture of the company (as a percent) | 95.00% | ||
Consolidated Joint Venture-VIEs | Mortgages payable | |||
Consolidated VIEs Carrying Amount of Assets and Liabilities | |||
Unamortized deferred financing costs | $ 238 | $ 253 | |
[1] | The Company’s consolidated balance sheets include assets and liabilities of consolidated variable interest entities (“VIEs”). See Note 4. The consolidated balance sheets include the following amounts related to the Company’s consolidated VIEs: $12,158 and $12,158 of land, $23,284 and $23,372 of building and improvements, net of $5,454 and $5,232 of accumulated depreciation, $3,707 and $3,679 of other assets included in other line items, $23,313 and $23,530 of real estate debt, net, $1,398 and $1,278 of other liabilities included in other line items and $1,198 and $1,193 of non-controlling interests as of March 31, 2021 and December 31, 2020, respectively. |
VARIABLE INTEREST ENTITIES, C_5
VARIABLE INTEREST ENTITIES, CONTINGENT LIABILITY AND CONSOLIDATED JOINT VENTURES - MCB Real Estate, LLC (Details) - Consolidated Joint Venture-VIEs - MCB Real Estate, LLC and Affiliates | Mar. 31, 2021USD ($)item | Dec. 31, 2020USD ($)item |
Consolidated VIEs Carrying Amount of Assets and Liabilities | ||
Number of consolidated joint ventures | item | 3 | 3 |
Investment in consolidated joint ventures | $ | $ 7,489,000 | $ 7,495,000 |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Details) | 3 Months Ended | ||
Mar. 31, 2021USD ($)item | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)item | |
Investment in Unconsolidated Joint Ventures | |||
Investment in unconsolidated joint ventures | $ 10,580,000 | $ 10,702,000 | |
Equity in (loss) earnings of unconsolidated joint ventures | $ (22,000) | $ 64,000 | |
Unconsolidated Joint Ventures | |||
Investment in Unconsolidated Joint Ventures | |||
Number of unconsolidated joint ventures | item | 3 | 3 | |
Number of properties owned and operated by each unconsolidated joint venture | item | 1 | 1 | |
Investment in unconsolidated joint ventures | $ 10,580,000 | $ 10,702,000 | |
Equity in (loss) earnings of unconsolidated joint ventures | (22,000) | $ 64,000 | |
Unconsolidated Joint Ventures | MCB Real Estate, LLC and Affiliates | |||
Investment in Unconsolidated Joint Ventures | |||
Investment in unconsolidated joint ventures | $ 8,688,000 | $ 8,761,000 |
DEBT OBLIGATIONS - Mortgage Pay
DEBT OBLIGATIONS - Mortgage Payable (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Mortgages Payable | ||
Mortgages payable, net | $ 424,271,000 | $ 429,704,000 |
Mortgages payable | ||
Mortgages Payable | ||
Mortgages payable, gross | 427,955,000 | 433,549,000 |
Unamortized deferred financing costs | (3,684,000) | (3,845,000) |
Mortgages payable, net | $ 424,271,000 | $ 429,704,000 |
DEBT OBLIGATIONS - Line of Cred
DEBT OBLIGATIONS - Line of Credit (Details) - USD ($) | 3 Months Ended | |||||
Mar. 31, 2021 | Mar. 31, 2020 | Jul. 01, 2022 | Jun. 30, 2022 | May 03, 2021 | Dec. 31, 2020 | |
Line of credit, net, balances per the consolidated balance sheets | ||||||
Line of credit, net | $ 15,073,000 | $ 12,525,000 | ||||
Line of Credit | ||||||
Line of Credit | ||||||
Maximum borrowing capacity | 100,000,000 | |||||
Borrowing capacity available for renovation and operating expense purposes | $ 30,000,000 | |||||
Percentage of permitted borrowing base available for renovation and operating expense purposes | 30.00% | |||||
Borrowing capacity available for operating expense purposes | $ 20,000,000 | $ 19,000,000 | ||||
Borrowing capacity available for renovation expenses purposes | $ 10,000,000 | |||||
Unused facility fee (as a percent) | 0.25% | |||||
Line of credit, interest rate during the period | 1.88% | 3.20% | ||||
Line of credit, net, balances per the consolidated balance sheets | ||||||
Line of credit, gross | $ 15,450,000 | $ 15,350,000 | 12,950,000 | |||
Unamortized deferred financing costs | (377,000) | (425,000) | ||||
Line of credit, net | $ 15,073,000 | $ 12,525,000 | ||||
Line of Credit | LIBOR | ||||||
Line of Credit | ||||||
Basis of interest rate | one month LIBOR | |||||
Applicable margin (as a percent) | 2.00% | 2.00% | ||||
Line of Credit | LIBOR | Minimum | ||||||
Line of Credit | ||||||
Applicable margin (as a percent) | 1.75% | |||||
Line of Credit | LIBOR | Maximum | ||||||
Line of Credit | ||||||
Applicable margin (as a percent) | 3.00% | |||||
March 2021 Amendment | Forecast | ||||||
Line of Credit | ||||||
Borrowing capacity available for operating expense purposes | $ 10,000,000 | |||||
Borrowing capacity available for renovation expenses purposes | $ 20,000,000 | |||||
Threshold amount of outstanding balances used for operating expenses above which must be repaid immediately | $ 10,000,000 |
RELATED PARTY TRANSACTIONS - Co
RELATED PARTY TRANSACTIONS - Compensation and Services Agreement (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Majestic | ||
Related Party Transactions | ||
Aggregate fees under compensation and services agreement | $ 785,000 | $ 767,000 |
Property management costs allocated to real estate expenses | 348,000 | 331,000 |
Additional payment for the entity's share of all direct office expenses | $ 74,000 | $ 69,000 |
Majestic | Net lease tenants | ||
Related Party Transactions | ||
Property management costs as a percentage of rental payments | 1.50% | 1.50% |
Majestic | Operating lease tenants | ||
Related Party Transactions | ||
Property management costs as a percentage of rental payments | 2.00% | 2.00% |
Executive officers and others | ||
Related Party Transactions | ||
Stock incentive plan expense | $ 652,000 | $ 449,000 |
RELATED PARTY TRANSACTIONS - Jo
RELATED PARTY TRANSACTIONS - Joint Venture Partners and Affiliates (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Unconsolidated Joint Ventures | ||
Related Party Transactions | ||
Aggregate management fees paid to other partners | $ 29,000 | $ 22,000 |
Decrease in equity earnings, joint venture transaction | 15,000 | 11,000 |
Joint Venture Partners and Affiliates | ||
Related Party Transactions | ||
Payments for property management services | $ 19,000 | $ 20,000 |
RELATED PARTY TRANSACTIONS - Ot
RELATED PARTY TRANSACTIONS - Other (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Chairman | General and administrative expense | ||
Related Party Transactions | ||
Quarterly fees paid | $ 74,500 | $ 74,500 |
Vice Chairman | ||
Related Party Transactions | ||
Quarterly fees paid | 29,800 | 29,800 |
Gould Investors L.P. | Real estate expenses | ||
Related Party Transactions | ||
Insurance expense recognized of amounts reimbursed to related party | $ 281,000 | $ 246,000 |
EARNINGS PER COMMON SHARE - Rec
EARNINGS PER COMMON SHARE - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator for basic and diluted earnings per share: | ||
Net income | $ 2,957 | $ 7,831 |
Less net income attributable to non-controlling interests | 5 | (5) |
Less earnings allocated to unvested restricted stock | (325) | (316) |
Net income available for common stockholders: basic and diluted | $ 2,637 | $ 7,510 |
Denominator for basic earnings per share: | ||
Weighted average number of common shares | 20,003 | 19,361 |
Effect of diluted securities: | ||
RSUs | 58 | 13 |
Denominator for diluted earnings per share: | ||
Weighted average number of shares | 20,061 | 19,374 |
Earnings per common share, basic and diluted | $ 0.13 | $ 0.39 |
EARNINGS PER COMMON SHARE - Sha
EARNINGS PER COMMON SHARE - Shares of common stock underlying RSUs (Details) - shares | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
RSUs | ||||||
Earnings Per Common Share | ||||||
Number of shares forfeited | 5,250 | |||||
Number of shares awarded | 75,026 | 77,776 | 76,250 | |||
RSUs | September 26, 2017 | ||||||
Earnings Per Common Share | ||||||
Number of shares forfeited | 51,907 | |||||
Number of shares vested | 24,343 | |||||
2019 and 2016 Incentive Plans | ||||||
Earnings Per Common Share | ||||||
Number of underlying shares | 223,802 | 225,026 | ||||
Number of shares included in diluted weighted average number of shares pursuant to return on capital performance metric | 86,789 | 58,720 | ||||
Number of shares in diluted weighted average number of shares pursuant to stockholder return metric | 37,513 | |||||
Total | 124,302 | 58,720 | ||||
Common shares not included in calculation due applicable metric had not been met at measurement dates | 99,500 | 166,306 | ||||
2019 and 2016 Incentive Plans | September 26, 2017 | ||||||
Earnings Per Common Share | ||||||
Number of underlying shares | 76,250 | |||||
Number of shares included in diluted weighted average number of shares pursuant to return on capital performance metric | 26,036 | |||||
Total | 26,036 | |||||
Common shares not included in calculation due applicable metric had not been met at measurement dates | 50,214 | |||||
2019 and 2016 Incentive Plans | July 1, 2018 | ||||||
Earnings Per Common Share | ||||||
Number of underlying shares | 73,750 | 73,750 | ||||
Number of shares included in diluted weighted average number of shares pursuant to return on capital performance metric | 25,306 | 20,423 | ||||
Total | 25,306 | 20,423 | ||||
Common shares not included in calculation due applicable metric had not been met at measurement dates | 48,444 | 53,327 | ||||
Number of shares forfeited | 2,750 | |||||
2019 and 2016 Incentive Plans | July 1, 2019 | ||||||
Earnings Per Common Share | ||||||
Number of underlying shares | 75,026 | 75,026 | ||||
Number of shares included in diluted weighted average number of shares pursuant to return on capital performance metric | 23,970 | 12,261 | ||||
Total | 23,970 | 12,261 | ||||
Common shares not included in calculation due applicable metric had not been met at measurement dates | 51,056 | 62,765 | ||||
Number of shares forfeited | 2,500 | |||||
2019 and 2016 Incentive Plans | August 3, 2020 | ||||||
Earnings Per Common Share | ||||||
Number of underlying shares | 75,026 | |||||
Number of shares included in diluted weighted average number of shares pursuant to return on capital performance metric | 37,513 | |||||
Number of shares in diluted weighted average number of shares pursuant to stockholder return metric | 37,513 | |||||
Total | 75,026 | |||||
2016 Incentive Plan | RSUs | ||||||
Earnings Per Common Share | ||||||
Number of shares forfeited | 51,907 | |||||
Number of shares awarded | 76,250 | |||||
Number of shares vested | 24,343 |
STOCKHOLDERS' EQUITY - Common S
STOCKHOLDERS' EQUITY - Common Stock Dividend (Details) - USD ($) | Mar. 12, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Common Stock Dividend | |||
Cash distributions per share of common stock (in dollars per share) | $ 0.45 | $ 0.45 | $ 0.45 |
Cash dividend declared | $ 9,329,000 | $ 9,329,000 | $ 9,036,000 |
Common Stock | |||
Common Stock Dividend | |||
Cash distributions per share of common stock (in dollars per share) | $ 0.45 | ||
Cash dividend declared | $ 9,329,000 |
STOCKHOLDERS' EQUITY - Dividend
STOCKHOLDERS' EQUITY - Dividend Reinvestment Plan (Details) | 3 Months Ended |
Mar. 31, 2020shares | |
Dividend Reinvestment Plan | |
Common shares issued under Dividend Reinvestment Plan | 7,000 |
Maximum | |
Dividend Reinvestment Plan | |
Market price discount (as a percent) | 5.00% |
STOCKHOLDERS' EQUITY - Stock Ba
STOCKHOLDERS' EQUITY - Stock Based Compensation (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Based Compensation | ||||||
Number of shares outstanding | 223,802 | 225,026 | ||||
Restricted stock | ||||||
Stock Based Compensation | ||||||
Number of shares awarded | 151,500 | 149,550 | ||||
Number of shares forfeited | 200 | |||||
Number of shares vested | 129,925 | 122,125 | ||||
Number of shares outstanding | 723,050 | 701,675 | 701,675 | 674,250 | ||
Vesting period | 5 years | |||||
RSUs | ||||||
Stock Based Compensation | ||||||
Number of shares awarded | 75,026 | 77,776 | 76,250 | |||
Number of shares forfeited | 5,250 | |||||
Number of shares outstanding | 223,802 | 225,026 | ||||
TSR awards | ||||||
Stock Based Compensation | ||||||
Percentage of RSUs to vest upon achievement of specified criteria | 50.00% | |||||
ROC Awards | ||||||
Stock Based Compensation | ||||||
Percentage of RSUs to vest upon achievement of specified criteria | 50.00% | |||||
2019 Incentive Plan | ||||||
Stock Based Compensation | ||||||
Maximum number of shares authorized for issuance | 750,000 | |||||
2019 Incentive Plan | Restricted stock and RSU grants | ||||||
Stock Based Compensation | ||||||
Number of shares outstanding | 450,952 | |||||
2019 Incentive Plan | Restricted stock | ||||||
Stock Based Compensation | ||||||
Number of shares outstanding | 300,900 | |||||
2019 Incentive Plan | RSUs | ||||||
Stock Based Compensation | ||||||
Number of shares outstanding | 150,052 | |||||
2016 Incentive Plan | ||||||
Stock Based Compensation | ||||||
Additional awards authorized | 0 | |||||
2016 Incentive Plan | Restricted stock and RSU grants | ||||||
Stock Based Compensation | ||||||
Number of shares outstanding | 495,900 | |||||
2016 Incentive Plan | Restricted stock | ||||||
Stock Based Compensation | ||||||
Number of shares outstanding | 422,150 | |||||
2016 Incentive Plan | RSUs | ||||||
Stock Based Compensation | ||||||
Number of shares awarded | 76,250 | |||||
Number of shares forfeited | 51,907 | |||||
Number of shares vested | 24,343 | |||||
Number of shares outstanding | 73,750 | |||||
Pay-for-performance program | RSUs | ||||||
Stock Based Compensation | ||||||
Number of shares forfeited | 0 | |||||
Number of shares vested | 0 | |||||
Vesting period | 3 years | |||||
Pay-for-performance program | RSUs | Awards granted in 2020 | ||||||
Stock Based Compensation | ||||||
Aggregate fair value of the shares granted | $ 962,000 | |||||
Pay-for-performance program | RSUs | Awards granted in 2019 | ||||||
Stock Based Compensation | ||||||
Aggregate fair value of the shares granted | 1,446,000 | |||||
Pay-for-performance program | RSUs | Awards granted in 2018 | ||||||
Stock Based Compensation | ||||||
Aggregate fair value of the shares granted | $ 1,006,000 |
STOCKHOLDERS' EQUITY - Activity
STOCKHOLDERS' EQUITY - Activity of Equity Incentive Plans (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of non-vested shares: | ||||||
Non-vested beginning of period (in shares) | 223,802 | 225,026 | 225,026 | |||
Non-vested end of period (in shares) | 223,802 | 225,026 | ||||
Restricted stock and RSU grants: | ||||||
Weighted average per share value of non-vested shares (based on grant price) (in dollars per share) | $ 24.68 | $ 25.52 | ||||
Value of stock vested during the year (based on grant price) | $ 2,825,000 | $ 3,004,000 | ||||
Weighted average per share value of shares forfeited during the year (based on grant price) (in dollars per share) | $ 23.62 | |||||
Restricted stock and RSU grants | ||||||
Total charge to operations: | ||||||
Total charge to operations | $ 1,343,000 | $ 976,000 | ||||
Restricted stock | ||||||
Summary of the activity of the incentive plans | ||||||
Average per share grant price (in dollars per share) | $ 20.34 | $ 28.10 | ||||
Deferred compensation to be recognized over vesting period | $ 3,082,000 | $ 4,202,000 | ||||
Number of non-vested shares: | ||||||
Non-vested beginning of period (in shares) | 701,675 | 674,250 | 674,250 | |||
Number of shares awarded | 151,500 | 149,550 | ||||
Vested during period (in shares) | (129,925) | (122,125) | ||||
Forfeitures (in shares) | (200) | |||||
Non-vested end of period (in shares) | 723,050 | 701,675 | 701,675 | 674,250 | ||
Total charge to operations: | ||||||
Total charge to operations | $ 897,000 | $ 875,000 | ||||
Total compensation costs related to non-vested awards that have not yet been recognized | $ 9,994,000 | |||||
Weighted average vesting period | 2 years 9 months 18 days | |||||
RSUs | ||||||
Number of non-vested shares: | ||||||
Number of shares awarded | 75,026 | 77,776 | 76,250 | |||
Forfeitures (in shares) | (5,250) | |||||
Non-vested end of period (in shares) | 223,802 | 225,026 | ||||
Total charge to operations: | ||||||
Total charge to operations | $ 446,000 | $ 101,000 | ||||
Total compensation costs related to non-vested awards that have not yet been recognized | $ 1,432,000 | |||||
Weighted average vesting period | 1 year 3 months 18 days | |||||
2019 Incentive Plan | Restricted stock and RSU grants | ||||||
Number of non-vested shares: | ||||||
Non-vested end of period (in shares) | 450,952 | |||||
2019 Incentive Plan | Restricted stock | ||||||
Number of non-vested shares: | ||||||
Non-vested end of period (in shares) | 300,900 | |||||
2019 Incentive Plan | RSUs | ||||||
Number of non-vested shares: | ||||||
Non-vested end of period (in shares) | 150,052 | |||||
2016 Incentive Plan | Restricted stock and RSU grants | ||||||
Number of non-vested shares: | ||||||
Non-vested end of period (in shares) | 495,900 | |||||
2016 Incentive Plan | Restricted stock | ||||||
Number of non-vested shares: | ||||||
Non-vested end of period (in shares) | 422,150 | |||||
2016 Incentive Plan | RSUs | ||||||
Number of non-vested shares: | ||||||
Number of shares awarded | 76,250 | |||||
Vested during period (in shares) | (24,343) | |||||
Forfeitures (in shares) | (51,907) | |||||
Non-vested end of period (in shares) | 73,750 | |||||
Pay-for-performance program | RSUs | ||||||
Number of non-vested shares: | ||||||
Vested during period (in shares) | 0 | |||||
Forfeitures (in shares) | 0 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary (Details) | May 03, 2021USD ($) | Mar. 31, 2021USD ($)Y | Dec. 31, 2020USD ($)itemY |
Line of Credit | |||
FAIR VALUE MEASUREMENTS | |||
Line of credit, gross | $ 15,350,000 | $ 15,450,000 | $ 12,950,000 |
Mortgages payable | |||
FAIR VALUE MEASUREMENTS | |||
Estimated fair value of mortgages payable | 444,282,000 | 461,965,000 | |
Carrying value of mortgage loans | 427,955,000 | 433,549,000 | |
Excess of fair value over carrying value | $ 16,327,000 | $ 28,416,000 | |
Mortgages payable | Blended market interest rate | |||
FAIR VALUE MEASUREMENTS | |||
Long-term debt, measurement input | 0.035 | 0.030 | |
Mortgages payable | Remaining term to maturity | |||
FAIR VALUE MEASUREMENTS | |||
Long-term debt, measurement input | Y | 6.9 | 7.1 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value of Derivatives (Details) | 3 Months Ended | |
Mar. 31, 2021USD ($)item | Dec. 31, 2020USD ($) | |
Interest rate derivatives | Cash flow hedges | ||
FAIR VALUE MEASUREMENTS | ||
Number of interest rate derivatives held | item | 22 | |
Number of mortgage loans outstanding | item | 22 | |
Notional Amount | $ | $ 81,862,000 | |
Weighted average maturity | 3 years 8 months 12 days | |
Weighted average annual interest rate (as a percent) | 3.95% | |
Interest rate derivatives | Cash flow hedges | Minimum | ||
FAIR VALUE MEASUREMENTS | ||
Fixed interest rate (as a percent) | 3.02% | |
Interest rate derivatives | Cash flow hedges | Maximum | ||
FAIR VALUE MEASUREMENTS | ||
Fixed interest rate (as a percent) | 5.16% | |
Recurring | Interest rate swap | Level 2 | Other liabilities | ||
Financial liabilities: | ||
Derivative financial instruments | $ | $ 3,511,000 | $ 5,012,000 |
FAIR VALUE MEASUREMENTS - Effec
FAIR VALUE MEASUREMENTS - Effect of derivatives on Consolidated Statements of Income (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | |||
Amount of gain (loss) recognized on derivatives in other comprehensive loss | $ 1,093,000 | $ (4,928,000) | |
Amount of reclassification from Accumulated other comprehensive loss into Interest expense | (408,000) | (110,000) | |
Interest rate swap | Cash flow hedges | |||
FAIR VALUE MEASUREMENTS | |||
Amounts reclassified from Accumulated other comprehensive loss into Interest Expense as a result of forecasted transactions being no longer probable of occurring | 0 | $ 0 | |
Additional amount to be reclassified during the next twelve months | (1,547,000) | ||
Credit risk related contingent feature | |||
Accrued interest on derivatives in a liability position | 123,000 | $ 120,000 | |
Fair value of derivative in a liability position, including accrued interest but excluding adjustments for non-performance risk | 3,727,000 | 5,314,000 | |
Termination liability value | 3,727,000 | 5,314,000 | |
Interest rate swap | Cash flow hedges | Accrued expenses and other liabilities | |||
Credit risk related contingent feature | |||
Adjustments for non-performance risk | $ 93,000 | $ 182,000 |
OTHER INCOME - Lease Assignment
OTHER INCOME - Lease Assignment Fee Income and Insurance Recoveries on Hurricane Casualty (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 31, 2021USD ($)item | Mar. 31, 2021USD ($)item | Mar. 31, 2021USD ($)item | Dec. 31, 2020USD ($) | |
Lease Assignment Fee Income | ||||
Number of properties included in a lease split and assignment agreement | item | 6 | 6 | 6 | |
Insurance Recoveries on Hurricane Casualty | ||||
Insurance recovery proceeds due to casualty loss | $ 300,000 | |||
Other income | ||||
Lease Assignment Fee Income | ||||
Fee income, lease assignment agreement | $ 100,000 | |||
Real Estate in Lake Charles, LA | ||||
Insurance Recoveries on Hurricane Casualty | ||||
Impairment due to casualty loss | $ 430,000 | |||
Amount of insurance deductible | 250,000 | |||
Total claim amount submitted to insurance carrier | $ 2,100,000 | 2,100,000 | $ 2,100,000 | |
Losses in rental income | $ 129,000 | |||
Receivable for insurance recoveries | 430,000 | |||
Insurance recovery proceeds due to casualty loss | 300,000 | $ 150,000 | ||
Real Estate in Lake Charles, LA | Other income | ||||
Insurance Recoveries on Hurricane Casualty | ||||
Amount of advance from insurance carrier recognized as a gain in other income | $ 20,000 |
OTHER INCOME - Interest Income
OTHER INCOME - Interest Income on Loan Receivable (Details) - Real Estate in Houston, TX | 1 Months Ended | 3 Months Ended |
Dec. 31, 2020USD ($)item | Mar. 31, 2021USD ($) | |
Interest Income on Loan Receivable | ||
Number of properties sold | item | 2 | |
Term of loan | 1 year | |
Percentage of seller-financing provided by the Company | 50.00% | |
Other income | ||
Interest Income on Loan Receivable | ||
Interest income on loans | $ 46,000 | |
Other receivables | ||
Interest Income on Loan Receivable | ||
Seller-financing provided by the Company | $ 4,612,500 | $ 4,612,500 |
SALE OF PROPERTY (Details)
SALE OF PROPERTY (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Sale of Property | |||
Repayment of mortgages payable | $ 2,074,000 | $ 3,332,000 | |
Prepayment costs on debt related to real estate | 290,000 | ||
Retail property, Onalaska, Wisconsin | |||
Sale of Property | |||
Proceeds from sale of real estate, net of closing costs | $ 7,093,000 | ||
Gain on Sale of Real Estate, Net | 4,252,000 | ||
Repayment of mortgages payable | 3,332,000 | ||
Prepayment costs on debt related to real estate | $ 290,000 |