Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 25, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Entity Registrant Name | TRANSCONTINENTAL REALTY INVESTORS INC | ||
Entity Central Index Key | 0000733590 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 001-09240 | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Reporting Status Current | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Well-Known Season Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 8,717,767 | ||
Entity Public Float | $ 24,391,302 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Real estate, at cost | $ 469,997 | $ 461,718 |
Real estate subject to sales contracts at cost | 7,966 | 2,014 |
Less accumulated depreciation | (90,173) | (79,228) |
Total real estate | 387,790 | 384,504 |
Notes and interest receivable (including $57,260 in 2019 and $51,945 in 2018 from related parties) | 120,986 | 83,541 |
Cash and cash equivalents | 51,179 | 36,358 |
Restricted cash | 32,082 | 70,207 |
Investment in VAA | 59,148 | 68,399 |
Investment in other unconsolidated investees | 22,632 | 22,172 |
Receivable from related parties | 141,541 | 133,642 |
Other assets | 50,560 | 63,557 |
Total assets | 865,918 | 862,380 |
Liabilities: | ||
Notes and interest payable | 246,546 | 277,237 |
Bonds and bond interest payable | 229,722 | 158,574 |
Deferred revenue (including $9,468 in 2019 and $17,522 in 2018 to related parties) | 9,468 | 17,522 |
Deferred tax liability | 2,000 | |
Accounts payable and other liabilities (including $935 in 2019 and $3 in 2018 to related parties) | 26,115 | 26,646 |
Total liabilities | 511,851 | 481,979 |
Shareholders' equity: | ||
Common stock, $0.01 par value, authorized 10,000,000 shares; issued 8,717,967 shares in 2019 and 2018; outstanding 8,717,767 shares in 2019 and 2018 | 87 | 87 |
Treasury stock at cost, 200 shares in 2019 and 2018 | (2) | (2) |
Paid-in capital | 257,853 | 258,050 |
Retained earnings | 74,665 | 101,585 |
Total Transcontinental Realty Investors, Inc. shareholders' equity | 332,603 | 359,720 |
Non-controlling interest | 21,464 | 20,681 |
Total shareholders' equity | 354,067 | 380,401 |
Total liabilities and shareholders' equity | $ 865,918 | $ 862,380 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Notes and interest receivable | $ 120,986 | $ 83,541 |
Deferred revenue | 9,468 | 17,522 |
Accounts payable and other liabilities | $ 26,115 | $ 26,646 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 10,000,000 | 10,000,000 |
Common stock, issued | 8,717,967 | 8,717,967 |
Common stock, outstanding | 8,717,767 | 8,717,767 |
Treasury stock, shares | 200 | 200 |
Related Parties [Member] | ||
Notes and interest receivable | $ 57,260 | $ 51,945 |
Deferred revenue | 9,468 | 17,522 |
Accounts payable and other liabilities | $ 935 | $ 3 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||
Rental and other property revenues (including $841, $767 and $839 for the years ended 2019, 2018 and 2017, respectively, from related parties) | $ 47,970 | $ 120,955 | $ 125,233 |
Expenses: | |||
Property operating expenses (including $991, $943 and $929 for the years ended 2019, 2018 and 2017, respectively, from related parties) | 25,213 | 59,420 | 63,056 |
Depreciation and amortization | 13,379 | 22,761 | 25,558 |
General and administrative (including $4,144, $4,578 and $3,120 for the years ended 2019, 2018 and 2017, respectively, from related parties) | 10,951 | 11,359 | 6,269 |
Net income fee to related party | 357 | 631 | 250 |
Advisory fee to related party | 5,806 | 10,663 | 9,995 |
Total operating expenses | 55,706 | 104,834 | 105,128 |
Net operating (loss) income | (7,736) | 16,121 | 20,105 |
Other income (expenses): | |||
Interest income (including $17,413, $13,132 and $11,485 for the years ended 2019, 2018 and 2017, respectively, from related parties) | 19,607 | 15,793 | 13,862 |
Other income | 84 | 28,150 | 625 |
Mortgage and loan interest (including $1,999, $423 and $1,174 for the year ended 2019, 2018 and 2017, respectively, from related parties) | (31,816) | (58,872) | (59,944) |
Foreign currency transaction (loss) gain | (15,108) | 12,399 | (4,536) |
Loss on debt extinguishment | (5,219) | ||
Equity (loss) earnings from VAA | (2,774) | 44 | |
Earnings from other unconsolidated investees | 16 | 1,085 | 26 |
Total other expenses | (35,210) | (1,401) | (49,967) |
(Loss) income before gain on disposition of 50% interest in VAA, gain on land sales, non-controlling interest, and taxes | (42,946) | 14,720 | (29,862) |
Gain on disposition of 50% interest in VAA | 154,126 | ||
(Loss) gain on sale of income producing properties | (80) | 9,842 | |
Gain on land sales | 14,889 | 17,404 | 4,884 |
Net (loss) income from continuing operations before taxes | (28,137) | 186,250 | (15,136) |
Income tax expense - current | 0 | (1,210) | (180) |
Income tax benefit (expense) - deferred | 2,000 | (2,000) | |
Net (loss) income from continuing operations | (26,137) | 183,040 | (15,316) |
Net (loss) income | (26,137) | 183,040 | (15,316) |
Net (income) attributable to non-controlling interest | (783) | (1,590) | (499) |
Net (loss) income attributable to Transcontinental Realty Investors, Inc. | (26,920) | 181,450 | (15,815) |
Preferred dividend requirement | (900) | (900) | |
Net (loss) income applicable to common shares | $ (26,920) | $ 180,550 | $ (16,715) |
Earnings per share - basic | |||
Net (loss) income from continuing operations (in dollars per share) | $ (3) | $ 20.89 | $ (1.86) |
Net (loss) income applicable to common shares (in dollars per share) | (3.09) | 20.71 | (1.92) |
Earnings per share - diluted | |||
Net (loss) income from continuing operations (in dollars per share) | (3) | 20.89 | (1.86) |
Net (loss) income applicable to common shares (in dollars per share) | $ (3.09) | $ 20.71 | $ (1.92) |
Weighted average common shares used in computing earnings per share (in shares) | 8,717,767 | 8,717,767 | 8,717,767 |
Weighted average common shares used in computing diluted earnings per share (in shares) | 8,717,767 | 8,717,767 | 8,717,767 |
Amounts attributable to Transcontinental Realty Investors, Inc. | |||
Net (loss) income from continuing operations | $ (26,137) | $ 183,040 | $ (15,316) |
Net (loss) income applicable to common shares | $ (26,920) | $ 180,550 | $ (16,715) |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Rental and other property revenues | $ 47,970 | $ 120,955 | $ 125,233 |
Property operating expenses | 25,213 | 59,420 | 63,056 |
General and administrative | 10,951 | 11,359 | 6,269 |
Interest income | 19,607 | 15,793 | 13,862 |
Mortgage and loan interest | 31,816 | 58,872 | 59,944 |
Related Party [Member] | |||
Rental and other property revenues | 841 | 767 | 839 |
Property operating expenses | 991 | 943 | 929 |
General and administrative | 4,144 | 4,578 | 3,120 |
Interest income | 17,413 | 13,132 | 11,485 |
Mortgage and loan interest | $ 1,999 | $ 423 | $ 1,174 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Comprehensive Income (Loss) [Member] | Common Stock [Member] | Treasury Stock [Member] | Paid-in Capital [Member] | Retained Earnings [Member] | Non-controlling Interest [Member] |
Balance at beginning at Dec. 31, 2016 | $ 224,477 | $ (64,852) | $ 87 | $ (2) | $ 269,849 | $ (64,050) | $ 18,592 |
Balance at beginnng (in shares) at Dec. 31, 2016 | 8,717,967 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (15,316) | (15,316) | (15,815) | 499 | |||
Series D preferred stock dividends (9.0% per year) | (900) | (900) | |||||
Balance at ending at Dec. 31, 2017 | 208,261 | (80,168) | $ 87 | (2) | 268,949 | (79,865) | 19,091 |
Balance at ending (in shares) at Dec. 31, 2017 | 8,717,967 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 183,040 | 181,450 | 181,450 | 1,590 | |||
Series D preferred stock dividends (9.0% per year) | (900) | (900) | |||||
Redemption of Series D preferred stock | (10,000) | (9,999) | |||||
Balance at ending at Dec. 31, 2018 | 380,401 | 101,282 | $ 87 | (2) | 258,050 | 101,585 | 20,681 |
Balance at ending (in shares) at Dec. 31, 2018 | 8,717,967 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Distribution to equity partner | (197) | (197) | |||||
Net income (loss) | (26,137) | (26,920) | (26,920) | 783 | |||
Balance at ending at Dec. 31, 2019 | $ 354,067 | $ 74,362 | $ 87 | $ (2) | $ 257,853 | $ 74,665 | $ 21,464 |
Balance at ending (in shares) at Dec. 31, 2019 | 8,717,967 |
CONSOLIDATED STATEMENT OF SHA_2
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Series D preferred stock dividends percentage | 9.00% | 9.00% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flow From Operating Activities: | |||
Net (loss) income | $ (26,137) | $ 183,040 | $ (15,316) |
Adjustments to reconcile net (loss) income to net cash (used in) operating activities: | |||
Gain on disposition of 50% inerest in VAA | (154,126) | ||
Loss (gain) on sale of income-producing properties | 80 | (9,842) | |
Foreign currency transaction loss (gain) | 15,108 | (12,399) | 4,536 |
Loss on debt extinguishment | 5,219 | ||
Gain on sale of land | (14,889) | (17,404) | (4,884) |
Depreciation and amortization | 13,379 | 22,761 | 25,558 |
Amortization of deferred borrowing costs | 662 | 4,994 | 3,574 |
Amortization of bond issuance costs | 1,544 | 2,994 | 971 |
Loss (earnings) from joint venture | 2,774 | (44) | |
Earnings from other unconsolidated investees | (16) | (1,085) | (26) |
(Increase) decrease in assets: | |||
Accrued interest receivable | (8,916) | (22,601) | (668) |
Other assets | (1,149) | (105,531) | (1,433) |
Prepaid expense | 10,237 | 19,124 | (5,661) |
Rent receivables | 626 | (3,213) | 543 |
Related party receivables | (35,257) | (14,995) | (9,972) |
Increase (decrease) in liabilities: | |||
Accrued interest payable | 2,349 | (2,307) | 4,573 |
Other liabilities | (1,361) | (80,395) | (17,027) |
Net cash (used in) operating activities | (35,747) | (181,187) | (25,074) |
Cash Flow From Investing Activities: | |||
Proceeds from disposition of 50% interest in VAA | 236,752 | ||
Proceeds from notes receivable | 13,862 | 6,541 | 26,230 |
Originations or advances on notes receivable | (21,434) | (16,801) | (16,420) |
Acquisition of land held for development | (3,422) | ||
Acquisition of income-producing properties | (10,558) | (37,044) | |
Distribution from equity investee | 6,701 | ||
Distributions to equity partner | (197) | ||
Proceeds from sale of income-producing properties | 1,296 | 4,889 | |
Proceeds from sale of land | 27,326 | 11,857 | 6,301 |
Improvement of income-producing properties | (5,257) | (3,688) | (64,443) |
Construction and development of new properties | (28,473) | (81,367) | (12,936) |
Net cash (used in) provided by investing activities | (9,598) | 147,625 | (98,312) |
Cash Flow From Financing Activities: | |||
Proceeds from notes payable | 25,675 | 123,345 | 135,116 |
Recurring payment of principal on notes payable | (10,446) | (124,616) | (83,070) |
Payment on commercial note payable | (41,531) | ||
Debt extinguishment costs | (3,799) | ||
Proceeds from bonds | 78,125 | 59,213 | 115,335 |
Bond payments | (21,742) | ||
Bond issuance costs | (4,241) | (5,257) | (6,887) |
Deferred financing costs | (3,599) | ||
Preferred stock dividends - Series D | (900) | (900) | |
Net cash provided by financing activities | 22,041 | 51,785 | 155,995 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (23,304) | 18,223 | 32,609 |
Cash, cash equivalents and restricted cash, beginning of period | 106,565 | 88,342 | 55,733 |
Cash, cash equivalents and restricted cash, end of period | 83,261 | 106,565 | 88,342 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 29,430 | 61,587 | $ 49,791 |
Schedule of noncash investing and financing activities: | |||
Land received in exchange for note receivable | 1,800 | ||
Notes receivable received from sale of income-producing properties | 1,735 | ||
Seller financing note - acquisition of income-producing properties | 1,895 | ||
Notes payable issued on acquisition of income-producing properties | $ 31,175 | ||
Notes payable issued on acquisition of land | $ 1,155 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (26,137) | $ 183,040 | $ (15,316) |
Total comprehensive (loss) income | (26,137) | 183,040 | (15,316) |
Comprehensive (income) attributable to non-controlling interest | (783) | (1,590) | (499) |
Comprehensive (loss) income attributable to Transcontinental Realty Investors, Inc. | $ (26,920) | $ 181,450 | $ (15,815) |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and business. TCI is a “C” corporation for U.S. federal income tax purposes and files an annual consolidated income tax return with American Realty Investors, Inc. “ARL”, whose common stock is traded on the NYSE American under the symbol “ARL”. Subsidiaries of ARL own approximately 78.38% of the Company’s common stock. In 2009, the Company acquired an additional 2,518,934 shares of common stock of Income Opportunity Realty Investors, Inc. “IOR”, and in doing so, increased its ownership from approximately 25% to over 80% of the shares of common stock of IOR outstanding. Upon acquisition of the additional shares in 2009, IOR’s results of operations began consolidating with those of the Company for tax and financial reporting purposes. As of December 31, 2019, TCI owned 81.23% of the outstanding IOR common shares. Shares of IOR are traded on the New York Exchange (“NYSE American”) under the symbol “IOR”. TCI’s Board of Directors are responsible for directing the overall affairs of TCI and for setting the strategic policies that guide the Company. As of April 30, 2011, the Board of Directors delegated the day-to-day management of the Company to Pillar Income Asset Management, Inc. (“Pillar”), a Nevada corporation, under a written Advisory Agreement that is reviewed annually by TCI’s Board of Directors. The directors of TCI are also directors of ARL and IOR. The Chairman of the Board of Directors of TCI also serves as the Chairman of the Board of Directors of ARL and IOR. The officers of TCI also serve as officers of ARL, IOR and Pillar. Since April 30, 2011, Pillar, the sole shareholder of which is Realty Advisors, LLC, a Nevada limited liability company, the sole member of which is Realty Advisors, Inc. “RAI”, a Nevada corporation, the sole shareholder of which is May Realty Holdings, Inc. (“MRHI”, formerly known as Realty Advisors Management, Inc. “RAMI”, effective August 7, 2014), a Nevada corporation, the sole shareholder of which is a trust known as the May Trust, became the Company’s external Advisor and Cash Manager. Pillar’s duties include, but are not limited to, locating, evaluating and recommending real estate and real estate-related investment opportunities. Pillar also arranges, for the Company’s benefit, debt and equity financing with third party lenders and investors. Pillar also serves as an Advisor and Cash Manager to ARL and IOR. As the contractual advisor, Pillar is compensated by TCI under an Advisory Agreement that is more fully described in Part III, Item 10. “Directors, Executive Officers and Corporate Governance – The Advisor”. TCI has no employees. Employees of Pillar render services to TCI in accordance with the terms of the Advisory Agreement. Regis Realty Prime, LLC, dba Regis Property Management, LLC (“Regis”), manages our commercial properties and provides brokerage services. Regis receives property management fees and leasing commissions in accordance with the terms of its property-level management agreement. Regis is also entitled to receive real estate brokerage commissions in accordance with the terms of a non-exclusive brokerage agreement. Refer to Part III, Item 10. “Directors, Executive Officers and Corporate Governance – Property Management and Real Estate Brokerage”. TCI engages third-party companies to lease and manage its apartment properties. Southern Properties Capital Ltd. (“Southern”) is a wholly owned subsidiary of TCI that was incorporated on August 16, 2016 for the purpose of raising funds by issuing debentures that cannot be converted into shares on the Tel-Aviv Stock Exchange. Southern operates in the United States and is primarily involved in investing in, developing, constructing and operating income-producing properties of multi-family residential real estate assets. Southern is included in the consolidated financial statements of TCI. On January 1, 2012, the Company entered into a development agreement with Unified Housing Foundation, Inc. “UHF” a non-profit corporation that provides management services for the development of residential apartment projects in the future. This development agreement was terminated December 31, 2013. The Company has also invested in surplus cash notes receivables from UHF and has sold several residential apartment properties to UHF in prior years. Due to this ongoing relationship and the significant investment in the performance of the collateral secured under the notes receivable, UHF has been determined to be a related party. On November 19, 2018, we executed an agreement between the Macquarie Group (“Macquarie”) and Southern and TCI to create a joint venture, Victory Abode Apartments, LLC (“VAA”) to address existing and future demand for quality multifamily residential housing through acquisition and development of sustainable Class A multifamily housing in focused secondary and tertiary markets. In connection with the formation of the joint venture, Southern and TCI contributed a portfolio of 47 income producing apartment complexes, and 5 development projects in various stages of construction and received cash consideration of $236.8 million. At the time of the transfer of the properties, the joint venture assumed all liabilities of those properties, including mortgage debt to the Department of Housing and Urban Development (“HUD”). VAA is equally owned and controlled by Abode JVP, LLC, a wholly-owned subsidiary of Southern and Summerset Intermediate Holdings 2 LLC (“Summerset”), a wholly-owned indirect subsidiary of Macquarie. Pursuant to the Agreement, Abode JVP, LLC and Summerset each own voting and profit participation rights of 50% and 49%, respectively (“Class A Members”). The remaining 2% of the profits interest is held by Daniel J. Moos, who serves as the President and Chief Executive officer of the Company (“Class B Member”) and Manager of the joint venture. Our primary business is the acquisition, development and ownership of income-producing residential and commercial real estate properties. In addition, we opportunistically acquire land for future development in in-fill or high-growth suburban markets. From time to time and when we believe it appropriate to do so, we will also sell land and income-producing properties. We generate revenues by leasing apartment units to residents and leasing office and retail space to various for-profit businesses as well as certain local, state and federal agencies. We also generate income from gains on sales of income-producing properties and land. At December 31, 2019, we owned ten residential apartment communities comprising of 1,657 units, seven commercial properties comprising an aggregate of approximately 1.7 million rentable square feet, an investment in 1,951 acres of undeveloped and partially developed land. In addition, our joint venture VAA owns fifty-one residential apartment communities comprised of 9,888 units. Basis of presentation . In determining whether we are the primary beneficiary of a VIE, we consider qualitative and quantitative factors, including, but not limited to: the amount and characteristics of our investment; the obligation or likelihood for us or other investors to provide financial support; our and the other investors’ ability to control or significantly influence key decisions for the VIE; and the similarity with and significance to the business activities of us and the other investors. Significant judgments related to these determinations include estimates about the current future fair values and performance of real estate held by these VIEs and general market conditions. For entities in which we have less than a controlling financial interest or entities where it is not deemed to be the primary beneficiary, the entities are accounted for using the equity method of accounting. Accordingly, our share of the net earnings or losses of these entities are included in consolidated net income. TCI’s investments in ARL and VAA are accounted for under the equity method. The Company in accordance with the VIE guidance in ASC 810 “Consolidations” consolidates ten and nine multifamily residential properties located throughout the United States at December 31, 2019 and December 31, 2018, respectively, with total units of 1,657 and 1,489, respectively. Assets totaling $477.9 million and $463.7 million at December 31, 2019 and 2018, respectively, are consolidated and included in “Real estate, at cost” on the balance sheet and are all collateral for their respective mortgage notes payable, none of which are recourse to the partnership in which they are in or to the Company. Real estate, depreciation, and impairment Properties that are treated as “subject to sales contract” on the Consolidated Balance Sheets and are listed in detail in Schedule III, “Real Estate and Accumulated Depreciation” are those in which we have not recognized the legal sale according to the guidance in ASC 360-20 due to various factors. For sales transactions where the guidance reflects a sale did not occur, the asset involved in the transaction, including the debt, if applicable, and property operations, remain on the books of the Company. We continue to charge depreciation to expense as a period cost for the property until such time as the property has been classified as held for sale in accordance with guidance reflected in ASC 360-10-45 “Impairment or Disposal of Long-Lived Assets.” Real estate held for sale Effective as of January 1, 2015, we adopted the revised guidance in Accounting Standards Update No. 2014-08 regarding discontinued operations. For sales of real estate or assets classified as held for sale after January 1, 2015, we will evaluate whether a disposal transaction meets the criteria of a strategic shift and will have a major effect on our operations and financial results to determine if the results of operations and gains on sale of real estate will be presented as part of our continuing operations or as discontinued operations in our consolidated statements of operations. If the disposal represents a strategic shift, it will be classified as discontinued operations for all periods presented; if not, it will be presented in continuing operations. Any properties that are treated as “subject to sales contract” on the Consolidated Balance Sheets and are listed in detail in Schedule III, “Real Estate and Accumulated Depreciation” are those in which we have not recognized the legal sale according to the guidance in ASC 360-20 due to various factors, disclosed in Item 1 “Significant Real Estate Acquisitions/Dispositions and Financing.” Any sale transaction where the guidance reflects that a sale had not occurred, the asset involved in the transaction, including the debt, if appropriate, and property operations, remained on the books of the Company. We continue to charge depreciation to expense as a period costs for the property until such time as the property has been classified as held for sale in accordance with guidance reflected in ASC 360-10-45 “Impairment or Disposal of Long-Lived Assets.” Cost capitalization A variety of costs are incurred in the acquisition, development and leasing of properties. After determination is made to capitalize a cost, it is allocated to the specific component of a project that is benefited. Determination of when a development project is substantially complete and capitalization must cease involves a degree of judgment. Our capitalization policy on development properties is guided by ASC Topic 835-20 “Interest – Capitalization of Interest” and ASC Topic 970 “Real Estate - General”. The costs of land and buildings under development include specifically identifiable costs. The capitalized costs include pre-construction costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes, salaries and related costs and other costs incurred during the period of development. We consider a construction project as substantially completed and held available for occupancy upon the receipt of certificates of occupancy, but no later than one year from cessation of major construction activity. We cease capitalization on the portion (1) substantially completed and (2) occupied or held available for occupancy, and we capitalize only those costs associated with the portion under construction. We capitalize leasing costs which include commissions paid to outside brokers, legal costs incurred to negotiate and document a lease agreement and any internal costs that may be applicable. We allocate these costs to individual tenant leases and amortize them over the related lease term. Fair value measurement . The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date and includes three levels defined as follows: Level 1 — Unadjusted quoted prices for identical and unrestricted assets or liabilities in active markets. Level 2 — Quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 — Unobservable inputs that are significant to the fair value measurement. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Related parties Recognition of revenue . Reimbursements of operating costs, as allowed under most of our commercial tenant leases, consist of amounts due from tenants for common area maintenance, real estate taxes and other recoverable costs, and are recognized as revenue in the period in which the recoverable expenses are incurred. We record these reimbursements on a “gross” basis, since we generally are the primary obligor with respect to purchasing goods and services from third-party suppliers; we have discretion in selecting the supplier and have the credit risk with respect to paying the supplier. Rental revenue for residential property leases is recorded when due from residents and is recognized monthly as earned, which is not materially different than on a straight-line basis as lease terms are generally for periods of one year or less. An allowance for doubtful accounts is recorded for all past due rents and operating expense reimbursements considered to be uncollectible. Sales and the associated gains or losses related to real estate assets are recognized in accordance with the provisions of ASC Topic 360-20, “Property, Plant and Equipment—Real Estate Sale.” The specific timing of a sale is measured against various criteria in ASC 360-20 related to the terms of the transaction and any continuing involvement in the form of management or financial assistance associated with the properties. If the sales criteria for the full accrual method are not met, the Company defers some or all of the gain recognition and accounts for the continued operations of the property by applying the finance, leasing, deposit, installment or cost recovery methods, as appropriate, until the sales criteria are met. Non-performing notes receivable. Interest recognition on notes receivable . Allowance for estimated losses . Cash equivalents. Restricted cash. Concentration of credit risk. Earnings per share . Use of estimates. Income taxes . Recent accounting pronouncements . In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The standard amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases (except for short-term leases that have a duration of one year or less) on their balance sheets. Lessees will continue to recognize lease expense in a manner similar to current accounting. For lessors, accounting for leases under the new guidance is substantially the same as in prior periods, but eliminates current real estate-specific provisions and changes the treatment of initial direct costs. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparable period presented, with an option to elect certain transition relief. ASU 2016-02 was effective for reporting periods beginning after December 15, 2018. The adoption of ASU 2016-02 did not have a material impact on the Company’s financial position and results of operations. In May 2014, Accounting Standards Update (“ASU”) No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers,” was issued. This new guidance established a new single comprehensive revenue recognition model and provides for enhanced disclosures. Under the new policy, the nature, timing and amount of revenue recognized for certain transactions could differ from those recognized under existing accounting guidance. This new standard does not affect revenue recognized under lease contracts. ASU 2014-09 is effective for reporting periods beginning after December 15, 2017. As the majority of the Company’s revenue is from rental revenue related to leases, the Company has determined that the adoption of this Standard was immaterial to the consolidated financial statements and related disclosures. |
INVESTMENT IN VAA
INVESTMENT IN VAA | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN VAA | NOTE 2. INVESTMENT IN VAA On November 19, 2018, we executed an agreement between the Macquarie Group (“Macquarie”) and Southern and TCI to create a joint venture, Victory Abode Apartments, LLC (“VAA”) to address existing and future demand for quality multifamily residential housing through acquisition and development of sustainable Class A multifamily housing in focused secondary and tertiary markets. In connection with the formation of the joint venture, Southern and TCI contributed a portfolio of 47 income producing apartment complexes, and 5 development projects in various stages of construction. TCI received cash consideration of $236.8 million and recognized a gain of approximately $154.1 million. At the time of the transfer of the properties, the joint venture assumed all liabilities of those properties, including mortgage debt to the Department of Housing and Urban Development (“HUD”). VAA is equally owned and controlled by Abode JVP, LLC, a wholly-owned subsidiary of Southern and Summerset Intermediate Holdings 2 LLC (“Summerset”), a wholly-owned indirect subsidiary of Macquarie. Pursuant to the Agreement, Abode JVP, LLC and Summerset each own voting and profit participation rights of 50% and 49%, respectively (“Class A Members”). The remaining 2% of the profit participation interest is held by Daniel J. Moos TCI’s President and Chief Executive Officer (“Class B Member”) who serves also as the Manager of the joint venture. In addition, upon the closing of the agreement the Class B Member received a payment of $1.9 million. The Company accounts for VAA as an equity method investment. Under the equity method of accounting, our net equity is reflected within the Consolidated Balance Sheets, and our share of net income or loss from the joint ventures is included within the Consolidated Statements of Operations. The joint venture agreements may designate different percentage allocations among investors for profits and losses; however, our recognition of joint venture income or loss generally follows the joint venture’s distribution priorities, which may change upon the achievement of certain investment return thresholds. The following is a summary of the financial position and results of operations of VAA (dollars in thousands): As of December 31, Balance Sheet 2019 2018 Net real estate assets $ 1,242,957 $ 1,257,557 Other assets 62,222 67,020 Debt, net (832,779 ) (791,225 ) Other liabilities (271,291 ) (280,288 ) Total equity (201,109 ) (253,064 ) Results of Operations For the Year Ended For the period Total revenue $ 115,377 $ 12,887 Total property, operating, and maintenance expenses (56,967 ) (4,507 ) Interest expense (61,487 ) (5,818 ) Depreciation and Amortization (43,942 ) (6,987 ) Total other expense (3,377 ) (5,297 ) Net loss $ (50,396 ) $ (9,722 ) The following is a reconciliation from VAA's net loss to TCI's equity in earnings of VAA (dollars in thousands): For the Year Ended For the period VAA net loss $ (50,396 ) $ (9,722 ) Adjustments to reconcile to income (loss) from VAA Interest expense on mezzanine loan 25,014 2,815 In-place lease intangibles - amortization expense 14,703 3,983 Depreciation basis differences 5,132 3,012 Net loss $ (5,547 ) $ 88 Percentage ownership in VAA 50 % 50 % Loss from VAA $ (2,774 ) $ 44 The following table sets forth the location of our real estate held for investment (income-producing properties only) by asset type as of December 31, 2019: Apartments Location No. Units Alabama 1 168 Arkansas 5 1,122 Colorado 2 260 Florida 2 388 Georgia 1 222 Louisiana 3 464 Mississippi 1 196 North Carolina 1 201 Nevada 1 308 Tennessee 4 708 Texas-Greater Dallas-Ft Worth 19 3,709 Texas-Greater Houston 2 416 Texas-Other 9 1,726 Total 51 9,888 At December 31, 2019, our apartment projects in development included (dollars in thousands): Property Location No. of Units Costs to Date (1) Total Projected Costs (1) Lakeside Lofts apartments Farmers Branch, TX 249 $ 50,357 $ 80,622 Total 249 $ 50,357 $ 80,622 (1) Costs include construction hard costs, construction soft costs and loan borrowing costs. During 2019, the Company received $19.4 million cash distribution from VAA as a result of the annual surplus cash computation from its HUD collaterized residential properties and other amounts owed to the Company as agreed to in the joint venture operating agreement. |
REAL ESTATE
REAL ESTATE | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
REAL ESTATE | NOTE 3. REAL ESTATE At December 31, 2019 and 2018, TCI’s real estate investment is comprised of the following (dollars in thousands): December 31, 2019 2018 Apartments $ 156,173 $ 126,274 Apartments under construction 22,363 27,261 Commercial properties 229,424 224,167 Land held for development 62,037 84,016 Real estate subject to sales contract 7,966 2,014 Total real estate, at cost, less impairment $ 477,963 $ 463,732 Less accumulated deprecation (90,173 ) (79,228 ) Total real estate, net of depreciation $ 387,790 $ 384,504 Expenditures for repairs and maintenance are charged to operations as incurred. Significant betterments are capitalized. When assets are sold or retired, their costs and related accumulated depreciation are removed from the accounts with the resulting gains or losses reflected in net income or loss for the period. Depreciation is computed on a straight line basis over the estimated useful lives of the assets as follows: Land improvements 25 to 40 years Buildings and improvements 10 to 40 years Tenant improvements Shorter of useful life or terms of related lease Furniture, fixtures and equipment 3 to 7 years Fair Value Measurement The Company applies the guidance in ASC Topic 820, “Fair Value Measurements and Disclosures,” to the valuation of real estate assets. The Company is required to assess the fair value of its consolidated real estate assets with indicators of impairment. The value of impaired real estate assets is determined using widely accepted valuation techniques, including discounted cash flow analyses on the expected cash flow of each asset, as well as the income capitalization approach, which considers prevailing market capitalization rates, analyses of recent comparable sales transactions, information from actual sales negotiations and bona fide purchase offers received from third parties. The methods used to measure fair value may produce an amount that may not be indicative of net realizable value or reflective of future values. Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The fair value measurements used in these evaluations are considered to be Level 2 and 3 valuations within the fair value hierarchy in the accounting rules, as there are significant observable (Level 2) and unobservable inputs (Level 3). Examples of Level 2 inputs the Company utilizes in its fair value calculations are appraisals and bona fide purchase offers from third parties. Examples of Level 3 inputs the Company utilizes in its fair value calculations are discount rates, market capitalization rates, expected lease rental rates, timing of new leases, an estimate of future sales prices and comparable sales prices of similar assets, if available. There was no provision for impairment during the years ended December 31, 2019, 2018 and 2017. The following is a description of the Company’s significant real estate transactions for the year ended December 31, 2019: ● Sold 35.9 acres of land located in Farmers Branch, Texas for an aggregate sales price of $18.9 million and recognized a gain on the sale of $9.0 million. ● Sold 29.4 acres of land located in Forney, Texas for a total sales price of $5.0 million and recognized a gain on the sale of approximately $4.1 million. ● Sold 10.33 acres of land located in Dallas, Texas for a total sales price of $2.1 million and recognized a gain on the sale of approximately $0.4 million. ● Sold 6.25 acres of land located in Nashville, Tennessee for a total sales price of $2.3 million and recognized a gain on the sale of approximately $0.9 million. ● Sold 23.24 acres of land located in Fort Worth, Texas for a total sales price of $1.8 million and recognized a gain on the sale of approximately $0.5 million. ● Sold a multifamily residential property, located in Mary Ester, Florida for a total sales price of $3.1 million out of which $1.8 million represents land received with a total acreage of 1.27 acres located in Riverside, California in exchange for a note receivable of the same value. The Company recognized a loss from this sale of approximately $0.08 million. ● Purchased 33.05 acres of land in Athens, Alabama for a total purchase price of $2.1 million, out of which $0.9 million was paid in cash and the remaining balance of $1.2 million was issued as a note payable. The note payable matures in eighteen months and bears an annual interest rate of 5.91%. ● Purchased from a third party 8.94 acres of land located in Collin County, Texas for a total purchase price of $2.5 million. ● Purchased an option to buy 37.8 acres of land (6.3 acres located in Collin County, Texas and 31.5 acres located in Clark County, Nevada) for $2.0 million from a third party land developer. The Company continues to invest in the development of apartment projects. During the year ended December 31, 2019, TCI has invested $28.5 million related to the construction and development of various apartment complexes and capitalized $0.8 million of interest costs. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | NOTE 4. SUPPLEMENTAL CASH FLOW INFORMATION For the years ended December 31, 2019 and 2018, the Company paid interest of $29.4 million and $61.6 million, respectively. Cash and cash equivalents, and restricted cash for fiscal year ended 2019 and 2018 was $83.3 million and $106.6 million, respectively. The following is a reconciliation of the Company’s cash and cash equivalents, and restricted cash to the total presented in the consolidated statement of cash flows: December 31, 2019 2018 Cash and cash equivalents $ 51,179 $ 36,358 Restricted cash (cash held in escrow) 15,540 37,946 Restricted cash (certificate of deposits) 3,759 9,688 Restricted cash (held with Trustee) 12,783 22,573 Total cash, cash equivalents and restricted cash $ 83,261 $ 106,565 Amounts included in restricted cash represent funds required to meet contractual obligations with certain financial institutions for the payment of reserve replacement and tax and insurance escrow. In addition, restricted cash includes funds to the Bond’s Trustee for payment of principal and interests. |
NOTES AND INTEREST RECEIVABLE
NOTES AND INTEREST RECEIVABLE | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
NOTES AND INTEREST RECEIVABLE | NOTE 5. NOTES AND INTEREST RECEIVABLE A portion of our assets are invested in mortgage notes receivable, principally secured by real estate. We may originate mortgage loans in conjunction with providing purchase money financing of property sales. Notes receivable are generally collateralized by real estate or interests in real estate and personal guarantees of the borrower and, unless noted otherwise, are so secured. Management intends to service and hold for investment the mortgage notes in our portfolio. A majority of the notes receivable provide for principal to be paid at maturity (dollars in thousands). Borrower Maturity Date Interest Rate Amount Security Performing loans: Prospectus Endeavors 4, LLC 01/23 12.00 % 5,907 Secured Prospectus Endeavors 6, LLC 10/22 12.00 % 496 Secured Oulan-Chikh Family Trust 03/21 8.00 % 174 Secured H198, LLC (McKinney Ranch Land) 09/20 6.00 % 4,554 Secured Forest Pines 11/20 5.00 % 2,868 Secured Spyglass Apartments of Ennis, LP 11/20 5.00 % 5,288 Secured Bellwether Ridge 05/20 5.00 % 3,765 Secured Parc at Windmill Farms 05/20 5.00 % 7,602 Secured Autumn Breeze 10/21 5.00 % 1,302 Secured Plum Tree 10/21 5.00 % 413 Secured Ingleside 12/21 5.00 % 1,531 Secured RNC 09/24 5.00 % 8,802 Secured Revolving Line of Credit Steeple Crest 10/20 5.00 % 6,665 Secured RAI PFBL 2018 Purch Fee Note Weatherford 12/21 12.00 % 525 Secured Unified Housing Foundation, Inc. (Echo Station) (1) 12/32 12.00 % 1,481 Secured Unified Housing Foundation, Inc. (Lakeshore Villas) (1) 12/32 12.00 % 2,000 Secured Unified Housing Foundation, Inc. (Lakeshore Villas) (1) 12/32 12.00 % 6,369 Secured Unified Housing Foundation, Inc. (Limestone Ranch) (1) 12/32 12.00 % 1,953 Secured Unified Housing Foundation, Inc. (Limestone Ranch) (1) 12/32 12.00 % 2,000 Secured Unified Housing Foundation, Inc. (Limestone Ranch) (1) 12/32 12.00 % 4,000 Secured Unified Housing Foundation, Inc. (Timbers of Terrell) (1) 12/32 12.00 % 1,323 Secured Unified Housing Foundation, Inc. (1) 12/21 12.00 % 10,401 Unsecured Unified Housing Foundation, Inc. (1) 06/20 12.00 % 5,314 Unsecured Unified Housing Foundation, Inc. (1) 03/22 12.00 % 4,782 Unsecured Unified Housing Foundation, Inc. (Lakeshore Villas) (1) 07/21 12.00 % 838 Secured Unified Housing Foundation, Inc. (Limestone Ranch) (1) 07/21 12.00 % 773 Secured Unified Housing Foundation, Inc. (Marquis at Vista Ridge) (1) 07/21 12.00 % 839 Secured Unified Housing Foundation, Inc. (Timbers at the Park) (1) 07/21 12.00 % 432 Secured Unified Housing Foundation, Inc. (Trails at White Rock) (1) 07/21 12.00 % 913 Secured Unified Housing Foundation, Inc. (Bella Vista) (1) 08/21 12.00 % 212 Secured Unified Housing Foundation, Inc. (1) 10/21 12.00 % 6,831 Unsecured Other related party notes Various Various 3,553 Various secured interests Other non-related party notes Various Various 10,276 Various secured interests Accrued interest 8,629 Total Performing $ 122,811 Allowance for estimated losses (1,825 ) Total $ 120,986 (1) As of December 31, 2019, the obligors on $54.0 million of the mortgage notes receivable portfolio were due from related entities. The Company recognized $6.9 million of interest income from these related party notes receivables. In addition, during the quarter ended June 30, 2019, TCI purchased notes receivables with a face value of $29.0 million (out of which $1.0 million represented accrued interest receivables) from related parties. As of December 31, 2019, none of the mortgage notes receivable portfolio were non-performing. The Company has various notes receivable from Unified Housing foundation, Inc. “UHF”. UHF is determined to be a related party due to our significant investment in the performance of the collateral secured under the notes receivable. Payments are due from surplus cash flow from operations, sale or refinancing of the underlying properties. These notes are cross collateralized to the extent that any surplus cash available from any of the properties underlying these notes will be used to repay outstanding interest and principal for the remaining notes. Furthermore, any surplus cash available from any of the properties UHF owns, besides the properties underlying these notes, can be used to repay outstanding interest and principal for these notes. The allowance on the notes was a purchase allowance that was netted against the notes when acquired. |
INVESTMENT IN UNCONSOLIDATED JO
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES | NOTE 6. INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES Investments in unconsolidated subsidiaries, jointly owned companies and other investees in which we have a 20% to 50% ownership interest or otherwise exercise significant influence are carried at cost, adjusted for the Company’s proportionate share of their undistributed earnings or losses, via the equity method of accounting. ARL is our parent company and is an unconsolidated joint venture. Our interest in the common stock of ARL in the amount of 0.90% is accounted for under the equity method. The summary data presented below includes our investments accounted for under the equity method, except for our investment in VAA which is discussed in detail in Note 2 ‘Investment in VAA’. The following is a summary of the financial position and results of operations from our unconsolidated parent (dollars in thousands): December 31, 2019 2018 2017 ARL Real estate, net of accumulated depreciation $ — $ 549 $ 12,349 Notes receivable 35,213 42,517 41,928 Other assets 67,441 66,712 126,238 Notes payable (8,327 ) (9,637 ) (6,507 ) Other liabilities (26,947 ) (21,123 ) (102,014 ) Shareholders’ equity/partners capital (67,380 ) (79,018 ) (71,994 ) For the Year Ended December 31, 2019 2018 2017 Rents, interest and other income $ 12,569 $ 7,132 $ 9,193 Depreciation — — (157 ) Operating expenses (3,765 ) (2,420 ) (3,149 ) Gain on land sales 1,016 — 4,765 Interest expense (8,043 ) (7,191 ) (6,228 ) Income (loss) from continuing operations $ 1,777 $ (2,479 ) $ 4,424 Net income (loss) $ 1,777 $ (2,479 ) $ 4,424 Company’s proportionate share of income (loss) $ 16 $ (22 ) $ 40 During the fourth quarter of 2018, TCI purchased from RAI 900,000 shares of ARL Series A convertible Preferred Stock for $9.0 million. The Series A Preferred Stock may be converted into common stock at 90.0% of the average daily closing price of ARL’s common stock for the prior 20 trading days. The investment in ARL convertible Preferred Stock is being carried at the Company’s cost of $9 million and is included in investment in other unconsolidated investees. Additionally, TCI purchased from RAI $9.9 million accrued unpaid dividends related to the ARL Series A convertible Preferred Stock which is carried at the cost and included in investment in unconsolidated investees on the balance sheet. |
NOTES AND INTEREST PAYABLE
NOTES AND INTEREST PAYABLE | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
NOTES AND INTEREST PAYABLE | NOTE 7. NOTES AND INTEREST PAYABLE Below is a summary of our notes and interest payable as of December 31, 2019 and 2018 (dollars in thousands): December 31, 2019 2018 Apartments $ 120,024 $ 94,759 Apartments under Construction 9,017 14,402 Commercial 92,838 135,951 Land 14,806 22,200 Real estate held for sale — 376 Corporate and other notes 16,430 18,130 Total notes payable $ 253,115 $ 285,818 Less: unamortized deferred borrowing costs (7,342 ) (9,425 ) Total outstanding notes payable, net $ 245,773 $ 276,393 Accrued Interest 773 844 Total notes payable, net and accrued interest $ 246,546 $ 277,237 Future principal payments due (including scheduled amortization payments and payments due upon maturity) on the Company’s notes payable at December 31, 2019 are as follows (in thousands): Year Amount 2020 $ 25,982 2021 55,393 2022 13,437 2023 36,770 2024 1,995 Thereafter 119,538 Total $ 253,115 Interest payable at December 31, 2019 and 2018, was $.08 million and $.09 million, respectively. Our debt has interest rates ranging from 2.5% to 9.75% per annum with maturity dates between 2021 and 2059. The mortgages were collateralized by deeds of trust on real estate having a net carrying value of $311.5 million. There are various land mortgages, secured by the property, that are in the process of a modification or extension to the original note due to expiration of the loan. We are in constant contact with these lenders, working together in order to modify the terms of these loans and we anticipate a timely resolution that is similar to the existing agreement or subsequent modification. In conjunction with the development of various apartment projects and other developments, we drew down $28.5 million and $81.0 million in construction loans during the year ended December 31, 2019, and 2018, respectively. |
BONDS AND BONDS INTEREST PAYABL
BONDS AND BONDS INTEREST PAYABLE | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
BONDS AND BONDS INTEREST PAYABLE | NOTE 8. BONDS AND BONDS INTEREST PAYABLE In August 2016, Southern Properties Capital LTD (“Southern”), a British Virgin Islands corporation was incorporated for the purpose of raising funds by issuing Bonds to be traded on the Tel Aviv Stock Exchange (“TASE”). The Company transferred certain residential and commercial properties located in the United States to Southern, its wholly owned subsidiary. On February 13, 2017, Southern filed a final prospectus with the TASE for an offering and sale of nonconvertible Series A Bonds to be issued by Southern. The bonds are obligations of Southern. During the year ended December 31, 2017 on three separate occasions Southern issued nonconvertible Series A Bonds with a total value of approximately NIS400 million New Israeli Shekels (“NIS”) or approximately $115 million dollars. The Series A Bonds have a stated interest rate of 7.3%. At March 31, 2018 the effective interest rate is 9.17%. The bonds require semi-annual equal installments on January 31 and July 31 of each year from 2019 to 2023 (inclusive). The interest will be repaid on January 31 and July 31 of each of the years 2018 to 2023 (inclusive), with the first payment commencing on July 31, 2017. On January 25, 2018, interest payment of approximately NIS 14.6 million (or approximately $4.3 million) was paid to the Series A bondholders. On February 15, 2018, Southern issued Series B bonds in the amount of NIS 137.7 million par value (approximately $39.2 million as of February 15, 2018). The Series B bonds are registered on the TASE. The bonds are reported in NIS and bear annual interest rate of 6.8%. Interest shall be repaid January 31 and July 31 of each of the years 2019 to 2023 (inclusive), first payment commencing on July 31, 2018. The principal shall be repaid in ten equal installments on January 31 and July 31 of each of the years from 2021 to 2025 (inclusive). A total bond issuance cost of $1.4 million was incurred. The effective interest rate is 7.99%. On July 19, 2018, Southern closed a private placement of its Series B bonds in the amount of NIS 72.3 million (or approximately $19.8 million). The bonds are reported in NIS, are registered on the TASE, bear an annual interest rate of 6.8% and have an effective interest rate of 9.60%. Interest will be paid on January 31 and July 31 of each of the years 2019 and 2013 (inclusive). The principal will be repaid in ten equal installment on January 31 and July 31 of each of the years from 2021 to 2012 (inclusive). The Company incurred bonds issuance costs of approximately $1.9 million. On July 26, 2018, interest payment of approximately NIS 18.9 million (or approximately $5.2 million) was paid to the Series A and B bondholders. On July 28, 2019, SPC issued Series C bonds in the amount of NIS 275 million (or approximately $78.1 million). The bonds are reported in NIS, and registered on the TASE, and bear an annual interest of 4.65%. The interest will be paid on January 31 and July 31 of each of the years 2020 through 2023, with the principal payment due in 2023. The Company incurred bond issuance costs of approximately $4.2 million. On September 23, 2019, Southern entered into a foreign exchange risk hedging transaction agreement with Bank Leumi with the aim of hedging the risk that the NIS exchange rate against the dollar will fall below 3, thereby reducing the exposure of the bonds (Series A, B and C) to exchange rate volatility. The term of the agreement is six months and the face value of the transaction is NIS 664 million ($ 221 million). The hedge transaction costs as well as the fair value as of December 31, 2019 were immaterial. During the year ended December 31, 2019, the Company made payments of $21.8 million and $11.6 million on bond principal and interests, respectively. On January 27, 2020, the Company made payments of NIS 60.6 million in bond principal on the Series A and interests on the Series A, B, C (or approximately $17.6 million). On February 2, 2020, S&P Global Ratings announced the increase of the Company's issuer rating to 'ilA-' from 'ilBBB+' for Bonds (Series A and B). In addition, Series C bond rating (secured by one of SPC’s commercial properties) increase to 'ilA' from 'ilA-' rating due to the expectation of continued improvement in coverage ratios and the expansion of Company’s portfolio. The outstanding balance of these Bonds at December 31, 2019 and 2018 is as follows: December 31, 2019 2018 Bonds (Series A) $ 92,653 $ 106,686 Bonds (Series B) 39,844 36,740 Bonds (Series B expansion) 20,920 19,290 Bonds (Series C) 79,572 — Total outstanding bonds $ 232,989 $ 162,716 Less: deferred bond issuance costs (9,724 ) (8,179 ) Total outstanding bonds, net 223,265 154,537 Accrued Interest 6,457 4,037 Total outstanding bonds, net and accrued interest $ 229,722 $ 158,574 The aggregate maturities of the bonds are as follows: Year Agrregage Maturities 2020 $ 23,148 2021 35,301 2022 35,301 2023 114,873 2024 12,153 Thereafter 12,213 $ 232,989 The recorded unrealized gain or loss is reflected as a separate line item to highlight the fact that it is a non-cash transaction until such time as actual payment of principal and interest on the bonds is made. For the year ended December 31, 2019 and 2018, the Company recorded a loss on foreign currency transaction of approximately $15.1 million, and a gain of $12.4 million, respectively. |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND FEES | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS AND FEES | NOTE 9. RELATED PARTY TRANSACTIONS AND FEES We apply ASC Topic 805, “Business Combinations”, to evaluate business relationships. Related parties are persons or entities who have one or more of the following characteristics, which include entities for which investments in their equity securities would be required, trust for the benefit of persons including principal owners of the entities and members of their immediate families, management personnel of the entity and members of their immediate families and other parties with which the entity may deal if one party controls or can significantly influence the decision making of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests, or affiliates of the entity. The Company has historically engaged in and may continue to engage in certain business transactions with related parties, including but not limited to asset acquisition and dispositions. Transactions involving related parties cannot be presumed to be carried out on an arm’s length basis due to the absence of free market forces that naturally exist in business dealings between two or more unrelated entities. Related party transactions may not always be favorable to our business and may include terms, conditions and agreements that are not necessarily beneficial to or in our best interest. Since April 30, 2011, Pillar, the sole shareholder of which is Realty Advisors, LLC, a Nevada limited liability company, the sole member of which is RAI, a Nevada corporation, the sole shareholder of which is MRHI, a Nevada corporation, the sole shareholder of which is a trust known as the May Trust, became the Company’s external Advisor and Cash Manager. Pillar’s duties include, but are not limited to, locating, evaluating and recommending real estate and real estate-related investment opportunities. Pillar also arranges, for the Company’s benefit, debt and equity financing with third party lenders and investors. Pillar also serves as an Advisor and Cash Manager to TCI and IOR. As the contractual advisor, Pillar is compensated by TCI under an Advisory Agreement that is more fully described in Part III, Item 10. “Directors, Executive Officers and Corporate Governance – The Advisor”. TCI has no employees. Employees of Pillar render services to TCI in accordance with the terms of the Advisory Agreement Effective January 1, 2011, Regis Realty Prime, LLC, dba Regis Property Management, LLC (“Regis”), the sole member of which is Realty Advisors, LLC, manages our commercial properties and provides brokerage services. Regis receives property management fees, construction management fees and leasing commissions in accordance with the terms of its property-level management agreement. Regis is also entitled to receive real estate brokerage commissions in accordance with the terms of a non-exclusive brokerage agreement. Refer to Part III, Item 10. “Directors, Executive Officers and Corporate Governance – Property Management and Real Estate Brokerage”. TCI engages third-party companies to lease and manage its apartment properties. Below is a description of the related party transactions and fees between Pillar and Regis: Fees, expenses and revenue paid to and/or received from our advisor: For the year ended December 31, 2019 2018 2017 (dollars in thousands) Fees: Advisory $ 5,806 $ 10,663 $ 9,995 Mortgage brokerage and equity refinancing — 852 1,551 Net income fee 357 631 250 $ 6,163 $ 12,146 $ 11,796 Other Expense: Cost reimbursements $ 6,687 $ 4,398 $ 2,895 Interest paid (received) (8,475 ) (7,404 ) (4,859 ) $ (1,788 ) $ (3,006 ) $ (1,964 ) Revenue: Rental $ 1,311 $ 1,178 $ 783 Fees paid to Regis and related parties: For the year ended December 31, 2019 2018 2017 (dollars in thousands) Fees: Property Sales/Acquisition $ 318 $ 43,856 $ 9,819 Property management, construction management and leasing commissions 165 540 963 Real estate brokerage 71 2,068 1,369 $ 554 $ 46,464 $ 12,151 The Company received rental revenue of $1.3 million, $1.2 million, and $0.8 million in the years ended December 31, 2019, 2018, and 2017, respectively, from Pillar and its related parties for properties owned by the Company. As of December 31, 2019, the Company had notes and interest receivable, net of allowances of $54.0 million and $3.2 million, respectively, due from UHF, a related party. During 2019, the Company recognized interest income of $6.9 million, originated $21.4 million, received $12.4 million in principal payments, and received interest payments of $7.6 million from these related party notes receivables. On January 1, 2012, the Company entered into a development agreement with UHF, a non-profit corporation that provides management services for the development of residential apartment projects in the future. This development agreement was terminated December 31, 2013. The Company has also invested in surplus cash notes receivables from UHF and has sold several residential apartment properties to UHF in prior years. Due to this ongoing relationship and the significant investment in the performance of the collateral secured under the notes receivable, UHF has been determined to be a related party. The Company is the primary guarantor, on a $25.0 million mezzanine loan between UHF and a lender. In addition, ARL, and an officer of the Company are limited recourse guarantors of the loan. As of December 31, 2019 UHF was in compliance with the covenants to the loan agreement. The Company is part of a tax sharing and compensating agreement with respect to federal income taxes between ARL, TCI and IOR and their subsidiaries that was entered into in July of 2009. That agreement continued until August 31, 2012, at which time a new tax sharing and compensating agreement was entered into by ARL, TCI, IOR and MRHI for the remainder of 2012 and subsequent years. The expense (benefit) in each year was calculated based on the amount of losses absorbed by taxable income multiplied by the maximum statutory tax rate of 21%. In addition, SPC is part of a management service agreement with the controlling shareholder owned company in which SPC for an annual payment of 0.5% on the value of the investment properties receives from the Advisor office space, administrative and management services. During 2019, SPC paid management fees to Pillar in the amount of $2.2 million. The following table reconciles the beginning and ending balances of accounts receivable from and (accounts payable) to related parties as of December 31, 2019 (dollars in thousands): Pillar ARL Total Related party receivable, beginning balance, December 31, 2018 $ — $ 133,642 $ 133,642 Cash transfers 29,395 — 29,395 Advisory fees (5,806 ) — (5,806 ) Net income fee (357 ) — (357 ) Fees and commissions (71 ) — (71 ) Cost reimbursements (6,687 ) — (6,687 ) Interest income — 8,475 8,475 Notes receivable purchased (28,669 ) — (28,669 ) Expenses (paid)/received by advisor 9,073 — 9,073 Financing (mortgage payments) — — — Sales/Purchases Commissions (318 ) — (318 ) Intercompany property transfers 2,864 — 2,864 Income tax expense — — — Deferred tax asset — — — Purchase of obligations — — Related party receivable, ending balance, December 31, 2019 $ (576 ) $ 142,117 $ 141,541 |
DEFERRED INCOME
DEFERRED INCOME | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
DEFERRED INCOME | NOTE 10. DEFERRED INCOME In previous years, the Company has sold properties to related parties where we have had continuing involvement in the form of management or financial assistance associated with the sale of the properties. Because of the continuing involvement associated with the sale, the sales criteria for the full accrual method is not met, and as such the Company has deferred some or all of the gain recognition and accounted for the sale by applying the finance, deposit, installment or cost recovery methods, as appropriate, until the sales criteria is met. The gains on these transactions have been deferred until the properties are sold to a non-related third party. As of December 31, 2019, we had a deferred gain of $9.5 million. |
DIVIDENDS
DIVIDENDS | 12 Months Ended |
Dec. 31, 2019 | |
Dividends [Abstract] | |
DIVIDENDS | NOTE 11. DIVIDENDS TCI’s Board of Directors established a policy that dividend declarations on common stock would be determined on an annual basis following the end of each year. In accordance with that policy, no dividends on TCI’s common stock were declared for 2019, 2018, or 2017. Future distributions to common stockholders will be determined by the Board of Directors in light of conditions then existing, including the Company’s financial condition and requirements, future prospects, restrictions in financing agreements, business conditions and other factors deemed relevant by the Board. |
PREFERRED STOCK
PREFERRED STOCK | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
PREFERRED STOCK | NOTE 12. PREFERRED STOCK In November 2006, TCI issued 100,000 shares of Series D Preferred Stock with a liquidation preference of $100 per share. The preferred stock is not convertible into any other security, requires dividends payable at the initial rate of 7% annually. The dividend rate increases ratably from 7% to 9% in future periods and can be redeemed at any point after September 30, 2011. During the fourth quarter of 2018, all 100,000 shares of Series D Preferred Stock were redeemed for $17.2 million, of which $7.2 million was accrued unpaid dividends. At December 31, 2019 and 2018, there were no preferred shares outstanding. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 13. INCOME TAXES We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. (Loss) income from continuing operations before income taxes Years Ended December 31, 2019 2018 2017 (In thousands) $ (28,137 ) $ 186,250 $ (15,136 ) The (benefit) expense for income taxes consists of: Years Ended December 31, 2019 2018 2017 (In thousands) Current: Federal $ — $ 42,805 $ (5,603 ) State — 1,210 10 Deferred and Other: Federal (2,000 ) (40,805 ) 5,603 State — — 170 Total tax (benefit) expense $ (2,000 ) $ 3,210 $ 180 The reconciliation between the Company’s effective tax rate on income from continuing operations and the statutory rate is as follows: Years Ended December 31, 2019 2018 2017 (In thousands) Income tax (benefit) expense at federal statutory rate $ (5,909 ) $ 39,113 $ (5,603 ) State and local income taxes net of federal tax benefit 1,210 10 Permanent differences (2,406 ) (143 ) — Timing differences Installment note on land sale — (2,876 ) (1,917 ) Allowance for losses on note — (383 ) (256 ) Deferred gains (588 ) (9,417 ) (7,723 ) Basis difference on fixed assets — 23,675 10,082 Other basis/timing differences 3,173 (7,164 ) (16 ) Generation (use) of net operating loss carryforwards 5,730 (42,805 ) 5,603 Calculated income tax expense $ — $ 1,210 $ 180 Effective tax rate 0.0 % 0.6 % N/A The company is subject to taxation in the United States and various states and foreign jurisdictions. As of December 31, 2019, the Company’s tax years for 2018, 2017, and 2016 are subject to examination by the tax authorities. With few exceptions, as of December 31, 2019, the Company is no longer subject to U.S federal, state, local, or foreign examinations by tax authorities for the years before 2016. The 2019 and 2018 effective tax rate is driven primarily by the passing of the Tax Cuts and Jobs Act by congress on December 22, 2017. This act reduced the statutory tax rate for corporations from 35% to 21% starting in 2018. As a result, the tax assets of TCI had to be re-priced to reflect the new tax rate for future years with the impact on the 2017 provision for income taxes. Components of the Net Deferred Tax Asset or Liability Years Ended December 31, 2019 2018 (In thousands) Deferred Tax Assets: Cumulative foreign currency translation loss $ 1,522 $ — Deferred gain 1,988 — Net operating loss carryforward 9,633 3,904 Total Deferred Tax Assets 13,143 3,904 Less: valuation allowance (6,480 ) — Total net deferred tax assets $ 6,663 $ 3,904 Deferred Tax Liabilities: Deferred gain $ — $ 2,603 Basis differences for fixed assets 6,663 3,301 Total Deferred Tax Liability $ 6,663 $ 5,904 Net deferred tax asset (liability) $ — $ (2,000 ) Current net deferred tax asset 6,663 3,904 Long-term net deferred tax liability 6,663 5,904 Net deferred tax liability $ — $ (2,000 ) Operating Loss and Tax Credit Carryforwards We have state NOLs in many of the various states in which we operate. Valuation Allowance Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. At December 31, 2019 TCI had a net deferred tax asset due to tax deductions available to it in future years. However, as management could not determine that it was more likely than not that TCI would realize the benefit of the deferred tax asset, a 100% valuation allowance was established. |
FUTURE MINIMUM RENTAL INCOME UN
FUTURE MINIMUM RENTAL INCOME UNDER OPERATING LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
FUTURE MINIMUM RENTAL INCOME UNDER OPERATING LEASES | NOTE 14. FUTURE MINIMUM RENTAL INCOME UNDER OPERATING LEASES TCI’S real estate operations include the leasing of commercial properties (office buildings, industrial warehouses and retail centers). These leases expire at various dates through 2029. The following is a schedule of minimum future rents on non-cancelable operating leases at December 31, 2019 (dollars in thousands): Year Amount 2020 26,208 2021 23,558 2022 20,382 2023 14,882 2024 8,861 Thereafter 7,109 Total $ 101,000 |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS | NOTE 15. OPERATING SEGMENTS Our segments are based on management’s method of internal reporting which classifies its operations by property type. The segments are commercial, apartments, land and other. Significant differences among the accounting policies of the operating segments as compared to the Consolidated Financial Statements principally involve the calculation and allocation of administrative expenses. Management evaluates the performance of each of the operating segments and allocates resources to them based on their operating income and cash flow. Items of income that are not reflected in the segments are interest, other income, equity in partnerships and gains on sale of real estate. Expenses that are not reflected in the segments are provision for losses, advisory, net income and incentive fees, general and administrative, non-controlling interests and net loss from discontinued operations before gains on sale of real estate. The segment labeled as “Other” consists of revenue and operating expenses related to the notes receivable and corporate debt. Presented below is the Company’s reportable segments’ operating income including segment assets and expenditures for the years 2019, 2018 and 2017 (dollars in thousands): Commercial For the Year Ended December 31, 2019 Properties Apartments Land Other Total Rental and other property revenues $ 32,707 $ 15,257 $ — $ 6 $ 47,970 Property operating expenses (15,805 ) (8,375 ) (255 ) (778 ) (25,213 ) Depreciation (10,229 ) (3,150 ) — — (13,379 ) Mortgage and loan interest (7,018 ) (4,069 ) (1,000 ) (19,729 ) (31,816 ) Loss on debt extinguishment (5,219 ) — — — (5,219 ) Interest income — — — 19,607 19,607 Loss on sale of income producing property — (80 ) — — (80 ) Gain on land sales — — 14,889 — 14,889 Segment operating (loss) income $ (5,564 ) $ (417 ) $ 13,634 $ (894 ) $ 6,759 Capital expenditures $ 5,257 $ 25,001 $ 3,489 $ — $ 33,747 Assets $ 229,424 $ 178,536 $ 70,003 $ — $ 477,963 Property Sales Sales price $ — $ 3,096 $ 30,012 $ — $ 33,108 Cost of sale — (3,176 ) (15,123 ) — (18,299 ) (Loss) gain on sales $ — $ (80 ) $ 14,889 $ — $ 14,809 Commercial For the Year Ended December 31, 2018 Properties Apartments Land Other Total Rental and other property revenues $ 33,113 $ 87,832 $ — $ 10 $ 120,955 Property operating expenses (16,558 ) (42,134 ) (275 ) (453 ) (59,420 ) Depreciation (9,530 ) (13,217 ) — (14 ) (22,761 ) Mortgage and loan interest (7,662 ) (20,671 ) (318 ) (30,221 ) (58,872 ) Interest income — — — 15,793 15,793 Gain on land sales — — 17,404 — 17,404 Segment operating income (loss) $ (637 ) $ 11,810 $ 16,811 $ (14,885 ) $ 13,099 Capital expenditures $ 8,246 $ 16,954 $ — $ — $ 25,200 Assets $ 153,018 $ 143,500 $ 84,016 $ 3,970 $ 384,504 Property Sales Sales price $ 2,313 $ 8,512 $ 43,311 $ — $ 54,136 Cost of sale (2,313 ) (8,512 ) (25,907 ) — (36,732 ) Gain on land sales $ — $ — $ 17,404 $ — $ 17,404 Commercial For the Twelve Months Ended December 31, 2017 Properties Apartments Land Other Total Rental and other property revenues $ 32,323 $ 92,807 $ 87 $ 16 $ 125,233 Property operating expenses (17,724 ) (43,677 ) (667 ) (988 ) (63,056 ) Depreciation (9,200 ) (16,354 ) — (4 ) (25,558 ) Mortgage and loan interest (7,528 ) (22,346 ) (1,588 ) (28,482 ) (59,944 ) Interest income — — — 13,862 13,862 Recognition of deferred gain on sale of income producing properties — 9,842 — — 9,842 Gain on land sales — — 4,884 — 4,884 Segment operating income (loss) $ (2,129 ) $ 20,272 $ 2,716 $ (15,596 ) $ 5,263 Capital expenditures $ 3,157 $ 1,402 $ 609 $ — $ 5,168 Assets $ 137,157 $ 726,852 $ 115,205 $ 656 $ 979,870 Property Sales Sales price $ — $ — $ 11,177 $ — $ 11,177 Cost of sale — — (6,293 ) — (6,293 ) Recognized prior deferred gain — 9,842 — — 9,842 Gain on sale $ — $ 9,842 $ 4,884 $ — $ 14,726 The table below reconciles the segment information to the corresponding amounts in the Consolidated Statements of Operations: For the Years Ended December 31, 2019 2018 2017 Segment operating income $ 6,759 $ 13,099 $ 5,263 Other non-segment items of income (expense) General and administrative (10,951 ) (11,359 ) (6,269 ) Net income fee to related party (357 ) (631 ) (250 ) Advisory fee to related party (5,806 ) (10,663 ) (9,995 ) Other income 84 28,150 625 Gain on formation of joint venture — 154,126 — Foreign currency translation (loss) gain (15,108 ) 12,399 (4,536 ) (Loss) earnings from joint venture (2,774 ) 44 — Earnings from other unconsolidated investees 16 1,085 26 Income tax benefit (expense) 2,000 (3,210 ) (180 ) Net (loss) income from continuing operations $ (26,137 ) $ 183,040 $ (15,316 ) The table below reconciles the segment information to the corresponding amounts in the Consolidated Balance Sheets: As of December 31, 2019 2018 2017 Segment assets $ 387,790 $ 384,504 $ 979,870 Investments in unconsolidated subsidiaries and investees 81,780 90,571 2,472 Notes and interest receivable 120,986 83,541 70,166 Other assets and receivables 275,362 303,764 260,914 Total assets $ 865,918 $ 862,380 $ 1,313,422 |
QUARTERLY RESULTS OF OPERATIONS
QUARTERLY RESULTS OF OPERATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY RESULTS OF OPERATIONS | NOTE 16. QUARTERLY RESULTS OF OPERATIONS The following is a tabulation of TCI’s quarterly results of operations for the years 2019, 2018 and 2017. Quarterly results presented may differ from those previously reported in TCI’s Form 10-Q due to the reclassification of the operations of properties sold or held for sale to discontinued operations in accordance with ASC topic 360: Three Months Ended 2019 March 31, June 30, September 30, December 31, (dollars in thousands, except share and per share amounts) Total operating revenues $ 11,929 $ 11,840 $ 11,883 $ 12,318 Total operating expenses 13,182 15,220 12,948 14,356 Operating loss (1,253 ) (3,380 ) (1,065 ) (2,038 ) Other expense (6,389 ) (4,639 ) (11,841 ) (12,341 ) (Loss) income before gain on formation of joint venture, gain on sales, non-controlling interest, and taxes (7,642 ) (8,019 ) (12,906 ) (14,379 ) (Loss) on sale of income producing properties — (80 ) — — Gain on land sales 2,216 2,133 5,140 5,400 Income tax benefit - deferred — — — 2,000 Net (loss) income from continued operations (5,426 ) (5,966 ) (7,766 ) (6,979 ) Net loss (5,426 ) (5,966 ) (7,766 ) (6,979 ) Less: net (loss) attributable to non-controlling interest (183 ) (379 ) (21 ) (200 ) Net loss applicable to common shares $ (5,609 ) $ (6,345 ) $ (7,787 ) $ (7,179 ) PER SHARE DATA Earnings per share - basic (Loss) income from continued operations $ (0.62 ) $ (0.68 ) $ (0.89 ) $ (0.81 ) Net (loss) income applicable to common shares $ (0.64 ) $ (0.73 ) $ (0.89 ) $ (0.83 ) Weighted average common shares used in computing earnings per share 8,717,767 8,717,767 8,717,767 8,717,767 Earnings per share - diluted (Loss) income from continued operations $ (0.62 ) $ (0.68 ) $ (0.89 ) $ (0.81 ) Net (loss) income applicable to common shares $ (0.64 ) $ (0.73 ) $ (0.89 ) $ (0.83 ) Weighted average common shares used in computing diluted earnings per share 8,717,767 8,717,767 8,717,767 8,717,767 Three Months Ended 2018 March 31, June 30, September 30, December 31, (dollars in thousands, except share and per share amounts) Total operating revenues $ 31,082 $ 31,607 $ 33,505 $ 24,761 Total operating expenses 25,894 26,966 27,734 24,240 Operating income 5,188 4,641 5,771 521 Other (expense) income (6,624 ) 2,731 5,896 (3,404 ) (Loss) income before gain on formation of joint venture, gain on sales, non-contolling interest, and taxes (1,436 ) 7,372 11,667 (2,883 ) Gain on formation of joint venture — — — 154,126 Gain on land sales 1,335 — 12,243 3,826 Income tax expense — — (792 ) (2,418 ) Net (loss) income from continued operations (101 ) 7,372 23,118 152,651 Net (loss) income (101 ) 7,372 23,118 152,651 Less: net (loss) attributable to non-controlling interest (132 ) (126 ) (915 ) (417 ) Preferred dividend requirement (222 ) (224 ) (227 ) (227 ) Net (loss) income applicable to common shares $ (455 ) $ 7,022 $ 21,976 $ 152,007 PER SHARE DATA Earnings per share - basic (Loss) income from continued operations $ (0.05 ) $ 0.81 $ 2.52 $ 17.44 Net (loss) income applicable to common shares $ (0.05 ) $ 0.81 $ 2.52 $ 17.44 Weighted average common shares used in computing earnings per share 8,717,767 8,717,767 8,717,767 8,717,767 Earnings per share - diluted (Loss) income from continued operations $ (0.05 ) $ 0.81 $ 2.52 $ 17.44 Net (loss) income applicable to common shares $ (0.05 ) $ 0.81 $ 2.52 $ 17.44 Weighted average common shares used in computing diluted earnings per share 8,717,767 8,717,767 8,717,767 8,717,767 Three Months Ended 2017 March 31, June 30, September 30, December 31, (dollars in thousands, except share and per share amounts) Total operating revenues $ 31,535 $ 31,302 $ 31,491 $ 30,905 Total operating expenses 26,337 25,460 25,725 27,606 Operating income (loss) 5,198 5,842 5,766 3,299 Other expense (10,658 ) (15,613 ) (8,967 ) (14,729 ) Loss before gain on sales, non-contolling interest, and taxes (5,460 ) (9,771 ) (3,201 ) (11,430 ) Gain (loss) on sale of income producing properties — — 9,841 1 Gain (loss) on land sales 445 (476 ) 530 4,385 Income tax benefit (expense) — — — (180 ) Net income (loss) from continued operations (5,015 ) (10,247 ) 7,170 (7,224 ) Net income (loss) (5,015 ) (10,247 ) 7,170 (7,224 ) Less: net (income) loss attributable to non-controlling interest (119 ) (163 ) (96 ) (121 ) Preferred dividend requirement (222 ) (224 ) (224 ) (230 ) Net (loss) income applicable to common shares $ (5,356 ) $ (10,634 ) $ 6,850 $ (7,575 ) PER SHARE DATA Earnings per share - basic Loss from continued operations $ (0.61 ) $ (1.22 ) $ 0.79 $ (0.88 ) Net income (loss) applicable to common shares $ (0.61 ) $ (1.22 ) $ 0.79 $ (0.88 ) Weighted average common shares used in computing earnings per share 8,717,767 8,717,767 8,717,767 8,717,767 Earnings per share - diluted Loss from continued operations $ (0.61 ) $ (1.22 ) $ 0.79 $ (0.88 ) Net income (loss) applicable to common shares $ (0.61 ) $ (1.22 ) $ 0.79 $ (0.88 ) Weighted average common shares used in computing diluted earnings per share 8,717,767 8,717,767 8,717,767 8,717,767 |
COMMITMENTS AND CONTINGENCIES A
COMMITMENTS AND CONTINGENCIES AND LIQUIDITY | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES AND LIQUIDITY | NOTE 17. COMMITMENTS AND CONTINGENCIES AND LIQUIDITY Liquidity. Guarantees . Partnership Buyouts ART and ART Midwest, Inc. While the Company and all entities in which the Company has a direct or indirect equity interest are not parties to or obligated in any way for the outcome, a formerly owned entity (American Realty Trust, Inc.) and its former subsidiary (ART Midwest, Inc.) have been engaged since 1999 in litigation with Mr. David Clapper and entities related to Mr. Clapper (collectively, the “Clapper Parties”). The matter originally involved a transaction in 1998 in which ART Midwest, Inc. was to acquire eight residential apartment complexes from the Clapper Parties. Through the years, a number of rulings, both for and against American Realty Trust, Inc. “ART” and ART Midwest, Inc., were issued. In October 2011, a ruling was issued under which the Clapper Parties received a judgment for approximately $74 million, including $26 million in actual damages and $48 million interest. The ruling was against ART and ART Midwest, Inc., but no other entity. During February 2014, the Court of Appeals affirmed a portion of the judgment in favor of the Clapper Parties, but also ruled that a double counting of a significant portion of the damages had occurred and remanded the case back to the trial court to recalculate the damage award, as well as pre- and post-judgment interest thereon. Subsequently, the trial court recalculated the damage award, reducing it to approximately $59 million, inclusive of actual damages and then current interest. ART was also a significant owner of a partnership interest in the partnership that was awarded the initial damages in this matter. The Clapper Parties subsequently filed a new lawsuit against ARI, its subsidiary EQK Holdings, Inc. “EQK”, and ART. The Clapper Parties seek damages from ARL for payment by ART to ARL of ART’s stock in EQK in exchange for a release of the Antecedent Debt owed by ART to ARI. In February 2018 the court determined that this legal matter should not have been filed in federal court and therefore granted motions to dismiss on jurisdictional grounds. In June 2018, the court overruled its own grant of motions to dismiss and reinstated the case. We continue to vigorously defend the case and management believes it has defenses to the claims. The case has not been set for trial. In 2005, ART filed suit against a major national law firm over the initial transaction. That action was initially abated while the principal case with the Clapper Parties was pending, but the abatement was recently lifted. The trial court subsequently dismissed the case on procedural grounds, but ART has filed a notice of appeal. The appeal was heard in February 2018 and the case was subsequently appealed to the Texas Supreme Court. The application for Review is still pending with the Texas Supreme Court. In January 2012, the Company sold all of the issued and outstanding stock of ART to an unrelated party for a promissory note in the amount of $10 million. At December 31, 2012, the Company fully reserved and valued such note at zero. Dynex Capital, Inc. On July 20, 2015, the 68 th An original trial in 2004, which also included Dynex Capital, Inc. as a defendant, resulted in a jury awarding damages in favor of Basic for “lost opportunity,” as well as damages in favor of ART and in favor of TCI and its subsidiaries for “increased costs” and “lost opportunity.” The original Trial Court judge ignored the jury’s findings, however, and entered a “Judgment Notwithstanding the Verdict” (“JNOV”) in favor of the Dynex entities (the judge held the Plaintiffs were not entitled to any damages from the Dynex entities). After numerous appeals by all parties, Dynex Capital, Inc. was ultimately dismissed from the case and the remaining claims against Dynex Commercial were remanded to the Trial Court for a new judgment consistent with the jury’s findings. The Court entered the new Final Judgment against Dynex Commercial, Inc. on July 20, 2015. The Final Judgment entered against Dynex Commercial, Inc. on July 20, 2015 awarded Basic was $0.256 million in damages, plus pre-judgment interest of $0.192 million for a total amount of $0.448 million. The Judgment awarded ART was $14.2 million in damages, plus pre-judgment interest of $10.6 million for a total amount of $24.8 million. The Judgment awarded TCI was $11.1 million, plus pre-judgment interest of $8.4 million for a total amount of $19.5 million. The Judgment also awarded Basic, ART, and TCI post-judgment interest at the rate of 5% per annum from April 25, 2014 until the date their respective damages were paid. Lastly, the Judgement awarded Basic, ART, and TCI was $1.6 million collectively in attorneys’ fees from Dynex Commercial, Inc. TCI is working with counsel to identify assets and collect on the Final Judgment against Dynex Commercial, Inc., as well as pursue additional claims, if any, against Dynex Capital, Inc. Post judgment interest continues to accrue. Berger Litigation On February 4, 2019, an individual claiming to be a stockholder holding 7,900 shares of Common Stock of Income Opportunity Realty Investors, Inc. (“IOR”) filed a Complaint in the United States District Court for the Northern District of Texas, Dallas Division, individually and allegedly derivatively on behalf of IOR, against Transcontinental Realty Investors, Inc. (“TCI”), American Realty Investors, Inc. (“ARL”), (TCI is a shareholder of IOR, ARL is a shareholder of TCI) Pillar Income Asset Management, Inc. (“Pillar”), ( collectively the “Companies”), certain officers and directors of the Companies (“Additional Parties”) and two other individuals. The Complaint filed alleges that the sale and/or exchange of certain tangible and intangible property between the Companies and IOR during the last ten years of business operations constitutes a breach of fiduciary duty by the one or more of Companies, the Additional Defendants and/or the directors of IOR. The case alleges other related claims. The Plaintiff seeks certification as a representative of IOR and all of its shareholders, unspecified damages, a return to IOR of various funds and an award of costs, expenses, disbursements (including Plaintiff’s attorneys’ fees) and prejudgment and post-judgment interest. The named Defendants intend to vigorously defend the action, deny all of the allegations of the Complaint, and believe the allegations to be wholly without any merit. The Defendants have filed motions to dismiss the case in its entirety in June 2019. On February 26, 2020, the Court denied IOR’s demand futility motion. The remainder of the motions to dismiss are pending. Litigation . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 18. EARNINGS PER SHARE Earnings per share. Prior to July 9, 2014, TCI had 30,000 shares of Series C cumulative convertible preferred stock issued and outstanding. These 30,000 shares were owned by RAI, a related party, and had accrued dividends unpaid of $0.9 million. The stock had a liquidation preference of $100.00 per share and could be converted into common stock at 90% of the daily average closing price of the common stock for the prior five trading days. On July 9, 2014, RAI converted all 30,000 shares into the requisite number of shares of common stock. The conversion resulted in the issuance of 304,298 new shares of common stock. The effects of the Series C Cumulative Convertible Preferred Stock are no longer included in the dilutive earnings per share calculation for the current period, but are considered in the calculation for the prior periods if applying the if-converted method is dilutive. As of December 31, 2019 and 2018, there are no preferred stock or stock options that are required to be included in the calculation of EPS. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 19. SUBSEQUENT EVENTS On February 2, 2020, S&P Global Ratings announced the increase of the Company's issuer rating to 'ilA-' from 'ilBBB+' for Bonds (Series A and B). In addition, Series C bond rating (secured by one of SPC’s commercial properties) increase to 'ilA' from 'ilA-' rating due to the expectation of continued improvement in coverage ratios and the expansion of Company’s portfolio. During 2020, a strain of coronavirus (“COVID – 19”) was reported worldwide, resulting in decreased economic activity and concerns about the pandemic, which would adversely affect the broader global economy. The Company is taking all necessary steps to keep our business premises, tenants, vendors and employees in a safe environment and are constantly monitoring the impact of COVID – 19. At this point, the extent to which COVID – 19 may impact the global economy and our business is uncertain, but pandemics or other significant public health events could have a material adverse effect on our business and results of operations. The date to which events occurring after December 31, 2019, the date of the most recent balance sheet, have been evaluated for possible adjustments to the financial statements or disclosure is March 30, 2020, which is the date of which the financial statements were available to be issued. There are no subsequent events that would require an adjustment to the financial statements. |
SCHEDULE III REAL ESTATE AND AC
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION | Schedule III REAL ESTATE AND ACCUMULATED DEPRECIATION December 31, 2019 Initial Cost Cost Capitalized Subsequent to Acquisition Asset Impairment Gross Amount of Which Carried at End of Year Property/Location Encumbrances Land Buildings Improvements Asset Impairment Land Building & Improvements Total Accumulated Depreciation Date of Construction Date Acquired Life on Which Depreciation In Latest Statement of Operation is Computed Properties Held for Investment Apartments Legacy at Pleasant Grove, Texarkana, TX $ 13,944 $ 2,005 $ 17,892 $ 217 $ — $ 2,005 $ 18,109 $ 20,114 $ 2,289 2006 12/14 40 years Toulon, Gautier, MS 19,575 1,621 20,107 372 — 1,621 20,479 22,100 4,273 2011 9/09 40 years Villager, Ft. Walton, FL 672 141 1,267 — — 141 1,267 1,408 148 1972 6/15 40 years Villas at Bon Secour, Gulf Shores, AL 11,212 2,715 15,385 — — 2,715 15,385 18,100 545 2007 7/18 40 years Vista Ridge, Tupelo, MS 10,252 1,339 13,398 — — 1,339 13,398 14,737 1,893 2009 10/15 40 years Chelsea, Beaumont, TX 8,794 1,225 11,025 160 — 1,225 11,185 12,410 303 1999 11/18 40 years Overlook at Allensville Phase II, Sevierville, TN 15,829 2,411 17,005 — — 2,411 17,005 19,416 319 2012 11/15 40 years Landing, Houma, LA 15,484 2,012 18,115 25 — 2,012 18,140 20,152 491 2005 12/18 40 years Farnham Park, Port Aurther, TX 9,183 1,010 9,086 144 — 1,010 9,230 10,240 251 1999 11/18 40 years Parc at Denham Springs Phase II, Denham Springs, LA 15,079 1,502 12,486 3,508 — 1,502 15,994 17,496 50 2010 11/9 40 years Total Apartments Held for Investment $ 120,024 $ 15,981 $ 135,766 $ 4,426 $ — $ 15,981 $ 140,192 $ 156,173 $ 10,562 Apartments Under Construction Forest Pines, Bryan, TX — 5,040 — 301 — 5,040 301 5,341 — — — — Sugar Mill III, Addis, LA 6,302 576 — 7,023 — 576 7,023 7,599 — — 11/15 — McKinney Apts at Heritage, McKinney, TX — 2,481 — 89 — 2,481 89 2,570 — — 6/17 — Forest Pines Phase II (Forest Grove), Bryan, TX 1,560 — — 4,674 — — 4,674 4,674 — — 4/19 — LD Athens Lindsay Ln, Athens, LA 1,155 2,098 — 81 — 2,098 81 2,179 — — 9/19 — Total Apartments Under Construction $ 9,017 $ 10,195 $ — $ 12,168 $ — $ 10,195 $ 12,168 $ 22,363 $ — Commercial 600 Las Colinas, Las Colinas, TX 37,215 5,751 51,759 20,143 — 5,751 71,902 77,653 32,858 1984 8/05 40 years 770 South Post Oak, Houston, TX 12,178 1,763 15,834 697 — 1,763 16,531 18,294 2,117 1970 7/15 40 years Bridgeview Plaza, LaCrosse, WI 3,908 — — 1,207 — — 1,207 1,207 804 1979 3/03 40 years Browning Place (Park West I), Farmers Branch, TX 5,096 45,868 26,645 — 5,096 72,513 77,609 29,867 1984 4/05 40 years Fruitland Plaza, Fruitland Park, FL 23 — 83 — 23 83 106 71 — 5/92 40 years Senlac VHP, Farmers Branch, TX 622 — 142 — 622 142 764 142 — 8/05 40 years Stanford Center, Dallas, TX 39,537 20,278 34,862 8,251 (9,600 ) 20,278 33,513 53,791 13,752 — 6/08 40 years Total Commercial Held for Investment $ 92,838 $ 33,533 $ 148,323 $ 57,168 $ (9,600 ) $ 33,533 $ 195,891 $ 229,424 $ 79,611 Land Dedeaux, Gulfport, MS — 1,612 — 46 (38 ) 1,612 8 1,620 — — 10/06 — Gautier, Gautier, MS — 202 — — — 202 — 202 — — 7/98 — Lake Shore Villas, Humble, TX — 81 — 3 — 81 3 84 — — 3/02 — Lubbock, Lubbock, TX — 234 — — — 234 — 234 — — 1/04 — Ocean Estates, Gulfport, MS — 1,418 — 390 — 1,418 390 1,808 — — 10/07 — Union Pacific Railroad, Dallas, TX — 130 — — — 130 — 130 — — 3/04 — Willowick, Pensacola, FL — 137 — — — 137 — 137 — — 1/95 — Windmill Farms, Kaufman County, TX 13,861 55,668 — 13,913 (20,343 ) 55,668 (6,430 ) 49,238 — — 11/11 — T Palm Desert, Riverside, CA — 1,800 — — — 1,800 — 1,800 — — 9/19 — Lacy Longhorn, Farmers Branch, TX — 1,169 — — (760 ) 1,169 (760 ) 409 — — 6/04 — Minivest, Dallas, TX — 7 — — 7 — 7 — — 4/13 — Nicholson Croslin, Dallas, TX — 184 — — (118 ) 184 (118 ) 66 — — 10/98 — Nicholson Mendoza, Dallas, TX — 80 — — (51 ) 80 (51 ) 29 — — 10/98 — Mercer Crossing, Farmers Branch, TX — 10,966 — — 10,966 — 10,966 — — 1/08 — McKinney 36, Collin County, TX 945 635 — 161 (19 ) 635 142 777 — — 1/98 — Travis Ranch, Kaufman County, TX — 80 — — — 80 — 80 — — 8/08 — Dominion Mercer Phase II, Farmers Branch, TX — 2,440 — 111 (135 ) 2,440 (24 ) 2,416 — — 3/99 — Total Land Held for Investment $ 14,806 $ 76,843 $ — $ 14,624 $ (21,464 ) $ 76,843 $ (6,840 ) $ 70,003 $ — Total Properties Held for Investment $ 236,685 $ 136,552 $ 284,089 $ 88,386 $ (31,064 ) $ 136,552 $ 341,411 $ 477,963 $ 90,173 REAL ESTATE AND ACCUMULATED DEPRECIATION As of December 31, 2019 2019 2018 2017 Reconciliation of Real Estate Balance at January 1, $ 463,732 $ 1,165,662 1,066,603 Additions Acquisitions, improvements and construction 92,964 175,996 129,483 Deductions Sale of real estate (78,733 ) (877,926 ) (30,424 ) Balance at December 31, $ 477,963 $ 463,732 $ 1,165,662 Reconciliation of Accumulated Depreciation Balance at January 1, 79,228 177,546 165,597 Additions Depreciation 13,379 22,761 25,558 Deductions Sale of real estate (2,434 ) (121,079 ) (13,609 ) Balance at December 31, $ 90,173 $ 79,228 177,546 |
SCHEDULE IV MORTGAGE LOANS RECE
SCHEDULE IV MORTGAGE LOANS RECEIVABLE | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
MORTGAGE LOANS RECEIVABLE | SCHEDULE IV MORTGAGE LOANS December 31, 2019 Description Interest Rate Final Maturity Date Periodic Payment Terms Prior Liens Face Amount of Mortgage Carrying Amount of Mortgage Principal or Loans Subject to Delinquent Principal or Interest (dollars in thousands) Prospectus Endeavors 4, LLC 12.00% Jan-23 Excess cash flow — 5,907 5,907 — Prospectus Endeavors 6, LLC 12.00% Oct-22 Excess cash flow — 496 496 — Oulan-Chikh Family Trust 8.00% Mar-21 Excess cash flow — 174 174 — H198, LLC 6.00% Sep-20 Excess cash flow — 4,554 4,554 — McKinney Ranch Land Forest Pines 5.00% Nov-20 Excess cash flow — — 2,868 — Spyglass Apartments of Ennis, LP 5.00% Nov-20 Excess cash flow — 5,083 5,288 — Bellwether Ridge 5.00% May-20 Excess cash flow — 3,429 3,765 — Parc at Windmill Farms 5.00% May-20 Excess cash flow — 6,066 7,602 — RAI PFBL 2018 Purch Fee Note Weatherford 12.00% Dec-21 Excess cash flow 525 — Unified Housing Foundation, Inc. (Echo Station) 12.00% Dec-32 Excess cash flow 9,719 2,794 1,481 — 100% Interest in UH of Temple, LLC — Unified Housing Foundation, Inc. (Lakeshore Villas/HFS of Humble, LLC) 12.00% Dec-32 Excess cash flow 15,965 2,959 2,000 — 100% Interest in HFS of Humble, LLC — Unified Housing Foundation, Inc. (Lakeshore Villas/HFS of Humble, LLC) (31.5% of cash flow) 12.00% Dec-32 Excess cash flow 15,756 8,836 6,369 — Interest in Unified Housing Foundation Inc. — Unified Housing Foundation, Inc. (Limestone Ranch/UH of Vista Ridge,LLC) 12.00% Dec-32 Excess cash flow — — 1,953 — Unified Housing Foundation, Inc. (Limestone Ranch/UH of Vista Ridge,LLC) 12.00% Dec-32 Excess cash flow — — 2,000 — Unified Housing Foundation, Inc. (Limestone Ranch/UH of Vista Ridge,LLC) 12.00% Dec-32 Excess cash flow — — 4,000 — Unified Housing Foundation, Inc. (Timbers of Terrell) 12.00% Dec-32 Excess cash flow 7,294 1,702 1,323 — 100% Interest in UH of Terrell, LLC Unified Housing Foundation, Inc (2015 Advisory Fee) 12.00% Dec-21 Excess cash flow — — 3,994 — Unified Housing Foundation, Inc (2008-2014 Advisory Fee) 12.00% Dec-21 Excess cash flow — — 6,407 — Unified Housing Foundation, Inc (2018 Advisory Fee) 12.00% Jun-20 Excess cash flow — — 5,314 — Unified Housing Foundation, Inc 12.00% Mar-22 Excess cash flow — — 4,782 — RAI UHF 2019 Advisory Fee Note Excess cash flow Unified Housing Foundation, Inc 12.00% Jul-21 Excess cash flow — — 838 — 2018 Refin Fee (Lakeshore Villas) Excess cash flow Unified Housing Foundation, Inc 12.00% Jul-21 Excess cash flow — — 773 — 2018 Refin Fee (Limestone Ranch) Excess cash flow Unified Housing Foundation, Inc 12.00% Jul-21 Excess cash flow — — 839 — 2018 Refin Fee (Marquis Vista Ridge) Excess cash flow Unified Housing Foundation, Inc 12.00% Jul-21 Excess cash flow — — 432 — 2018 Refin Fee (Timbers at the Park) Excess cash flow Unified Housing Foundation, Inc 12.00% Jul-21 Excess cash flow — — 913 — 2018 Refin Fee (Trails White Rock) Unified Housing Foundation, Inc 12.00% Aug-21 Excess cash flow — — 212 — 2018 Refin Fee (Bella Vista) Unified Housing Foundation, Inc 12.00% Oct-21 Excess cash flow — — 1,980 — 2017 Fees on Sale LSC/SR/PKCR Unified Housing Foundation, Inc 12.00% Oct-21 Excess cash flow — — 4,851 — 2017 Fees on Profit LSC/SR/PKCR Various related party notes Various Various Excess cash flow — — 3,553 — Various non-related party notes Various Various Excess cash flow — — 28,989 — $ 114,182 Accrued interest 8,629 Allowance for estimated losses (1,825 ) $ 120,986 (1) Fully reserved MORTGAGE LOANS As of December 31, 2019 2018 2017 (dollars in thousands) Balance at January 1, $ 83,541 $ 70,166 $ 81,133 Additions New mortgage loans 49,671 13,123 16,422 Increase (decrease) of interest receivable on mortgage loans 9,576 6,329 668 Deductions Amounts received (21,589 ) (6,077 ) (26,230 ) Non-cash reductions (213 ) — (1,827 ) Balance at December 31, $ 120,986 $ 83,541 $ 70,166 |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation . In determining whether we are the primary beneficiary of a VIE, we consider qualitative and quantitative factors, including, but not limited to: the amount and characteristics of our investment; the obligation or likelihood for us or other investors to provide financial support; our and the other investors’ ability to control or significantly influence key decisions for the VIE; and the similarity with and significance to the business activities of us and the other investors. Significant judgments related to these determinations include estimates about the current future fair values and performance of real estate held by these VIEs and general market conditions. For entities in which we have less than a controlling financial interest or entities where it is not deemed to be the primary beneficiary, the entities are accounted for using the equity method of accounting. Accordingly, our share of the net earnings or losses of these entities are included in consolidated net income. TCI’s investments in ARL and VAA are accounted for under the equity method. The Company in accordance with the VIE guidance in ASC 810 “Consolidations” consolidates ten and nine multifamily residential properties located throughout the United States at December 31, 2019 and December 31, 2018, respectively, with total units of 1,657 and 1,489, respectively. Assets totaling $477.9 million and $463.7 million at December 31, 2019 and 2018, respectively, are consolidated and included in “Real estate, at cost” on the balance sheet and are all collateral for their respective mortgage notes payable, none of which are recourse to the partnership in which they are in or to the Company. |
Real estate, depreciation, and impairment | Real estate, depreciation, and impairment Properties that are treated as “subject to sales contract” on the Consolidated Balance Sheets and are listed in detail in Schedule III, “Real Estate and Accumulated Depreciation” are those in which we have not recognized the legal sale according to the guidance in ASC 360-20 due to various factors. For sales transactions where the guidance reflects a sale did not occur, the asset involved in the transaction, including the debt, if applicable, and property operations, remain on the books of the Company. We continue to charge depreciation to expense as a period cost for the property until such time as the property has been classified as held for sale in accordance with guidance reflected in ASC 360-10-45 “Impairment or Disposal of Long-Lived Assets.” |
Real estate held for sale | Real estate held for sale Effective as of January 1, 2015, we adopted the revised guidance in Accounting Standards Update No. 2014-08 regarding discontinued operations. For sales of real estate or assets classified as held for sale after January 1, 2015, we will evaluate whether a disposal transaction meets the criteria of a strategic shift and will have a major effect on our operations and financial results to determine if the results of operations and gains on sale of real estate will be presented as part of our continuing operations or as discontinued operations in our consolidated statements of operations. If the disposal represents a strategic shift, it will be classified as discontinued operations for all periods presented; if not, it will be presented in continuing operations. Any properties that are treated as “subject to sales contract” on the Consolidated Balance Sheets and are listed in detail in Schedule III, “Real Estate and Accumulated Depreciation” are those in which we have not recognized the legal sale according to the guidance in ASC 360-20 due to various factors, disclosed in Item 1 “Significant Real Estate Acquisitions/Dispositions and Financing.” Any sale transaction where the guidance reflects that a sale had not occurred, the asset involved in the transaction, including the debt, if appropriate, and property operations, remained on the books of the Company. We continue to charge depreciation to expense as a period costs for the property until such time as the property has been classified as held for sale in accordance with guidance reflected in ASC 360-10-45 “Impairment or Disposal of Long-Lived Assets.” |
Cost capitalization | Cost capitalization A variety of costs are incurred in the acquisition, development and leasing of properties. After determination is made to capitalize a cost, it is allocated to the specific component of a project that is benefited. Determination of when a development project is substantially complete and capitalization must cease involves a degree of judgment. Our capitalization policy on development properties is guided by ASC Topic 835-20 “Interest – Capitalization of Interest” and ASC Topic 970 “Real Estate - General”. The costs of land and buildings under development include specifically identifiable costs. The capitalized costs include pre-construction costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes, salaries and related costs and other costs incurred during the period of development. We consider a construction project as substantially completed and held available for occupancy upon the receipt of certificates of occupancy, but no later than one year from cessation of major construction activity. We cease capitalization on the portion (1) substantially completed and (2) occupied or held available for occupancy, and we capitalize only those costs associated with the portion under construction. We capitalize leasing costs which include commissions paid to outside brokers, legal costs incurred to negotiate and document a lease agreement and any internal costs that may be applicable. We allocate these costs to individual tenant leases and amortize them over the related lease term. |
Fair value measurement | Fair value measurement . The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date and includes three levels defined as follows: Level 1 — Unadjusted quoted prices for identical and unrestricted assets or liabilities in active markets. Level 2 — Quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 — Unobservable inputs that are significant to the fair value measurement. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Related parties | Related parties |
Recognition of revenue | Recognition of revenue . Reimbursements of operating costs, as allowed under most of our commercial tenant leases, consist of amounts due from tenants for common area maintenance, real estate taxes and other recoverable costs, and are recognized as revenue in the period in which the recoverable expenses are incurred. We record these reimbursements on a “gross” basis, since we generally are the primary obligor with respect to purchasing goods and services from third-party suppliers; we have discretion in selecting the supplier and have the credit risk with respect to paying the supplier. Rental revenue for residential property leases is recorded when due from residents and is recognized monthly as earned, which is not materially different than on a straight-line basis as lease terms are generally for periods of one year or less. An allowance for doubtful accounts is recorded for all past due rents and operating expense reimbursements considered to be uncollectible. Sales and the associated gains or losses related to real estate assets are recognized in accordance with the provisions of ASC Topic 360-20, “Property, Plant and Equipment—Real Estate Sale.” The specific timing of a sale is measured against various criteria in ASC 360-20 related to the terms of the transaction and any continuing involvement in the form of management or financial assistance associated with the properties. If the sales criteria for the full accrual method are not met, the Company defers some or all of the gain recognition and accounts for the continued operations of the property by applying the finance, leasing, deposit, installment or cost recovery methods, as appropriate, until the sales criteria are met. |
Non-performing notes receivable | Non-performing notes receivable. |
Interest recognition on notes receivable | Interest recognition on notes receivable . |
Allowance for estimated losses | Allowance for estimated losses . |
Cash equivalents | Cash equivalents. |
Restricted cash | Restricted cash. |
Concentration of credit risk | Concentration of credit risk. |
Earnings per share | Earnings per share . |
Use of estimates | Use of estimates. |
Income taxes | Income taxes . |
Recent accounting pronouncements | Recent accounting pronouncements . In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The standard amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases (except for short-term leases that have a duration of one year or less) on their balance sheets. Lessees will continue to recognize lease expense in a manner similar to current accounting. For lessors, accounting for leases under the new guidance is substantially the same as in prior periods, but eliminates current real estate-specific provisions and changes the treatment of initial direct costs. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparable period presented, with an option to elect certain transition relief. ASU 2016-02 was effective for reporting periods beginning after December 15, 2018. The adoption of ASU 2016-02 did not have a material impact on the Company’s financial position and results of operations. In May 2014, Accounting Standards Update (“ASU”) No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers,” was issued. This new guidance established a new single comprehensive revenue recognition model and provides for enhanced disclosures. Under the new policy, the nature, timing and amount of revenue recognized for certain transactions could differ from those recognized under existing accounting guidance. This new standard does not affect revenue recognized under lease contracts. ASU 2014-09 is effective for reporting periods beginning after December 15, 2017. As the majority of the Company’s revenue is from rental revenue related to leases, the Company has determined that the adoption of this Standard was immaterial to the consolidated financial statements and related disclosures. |
INVESTMENT IN VAA (Tables)
INVESTMENT IN VAA (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of the financial position and results of operations of VAA | The following is a summary of the financial position and results of operations of VAA (dollars in thousands): As of December 31, Balance Sheet 2019 2018 Net real estate assets $ 1,242,957 $ 1,257,557 Other assets 62,222 67,020 Debt, net (832,779 ) (791,225 ) Other liabilities (271,291 ) (280,288 ) Total equity (201,109 ) (253,064 ) Results of Operations For the Year Ended For the period Total revenue $ 115,377 $ 12,887 Total property, operating, and maintenance expenses (56,967 ) (4,507 ) Interest expense (61,487 ) (5,818 ) Depreciation and Amortization (43,942 ) (6,987 ) Total other expense (3,377 ) (5,297 ) Net loss $ (50,396 ) $ (9,722 ) The following is a reconciliation from VAA's net loss to TCI's equity in earnings of VAA (dollars in thousands): For the Year Ended For the period VAA net loss $ (50,396 ) $ (9,722 ) Adjustments to reconcile to income (loss) from VAA Interest expense on mezzanine loan 25,014 2,815 In-place lease intangibles - amortization expense 14,703 3,983 Depreciation basis differences 5,132 3,012 Net loss $ (5,547 ) $ 88 Percentage ownership in VAA 50 % 50 % Loss from VAA $ (2,774 ) $ 44 |
Schedule of the location of properties owned by VAA | The following table sets forth the location of our real estate held for investment (income-producing properties only) by asset type as of December 31, 2019: Apartments Location No. Units Alabama 1 168 Arkansas 5 1,122 Colorado 2 260 Florida 2 388 Georgia 1 222 Louisiana 3 464 Mississippi 1 196 North Carolina 1 201 Nevada 1 308 Tennessee 4 708 Texas-Greater Dallas-Ft Worth 19 3,709 Texas-Greater Houston 2 416 Texas-Other 9 1,726 Total 51 9,888 |
Schedule of apartment projects in development | At December 31, 2019, our apartment projects in development included (dollars in thousands): Property Location No. of Units Costs to Date (1) Total Projected Costs (1) Lakeside Lofts apartments Farmers Branch, TX 249 $ 50,357 $ 80,622 Total 249 $ 50,357 $ 80,622 (1) Costs include construction hard costs, construction soft costs and loan borrowing costs. |
REAL ESTATE (Tables)
REAL ESTATE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
Schedule of the real estate owned | At December 31, 2019 and 2018, TCI’s real estate investment is comprised of the following (dollars in thousands): December 31, 2019 2018 Apartments $ 156,173 $ 126,274 Apartments under construction 22,363 27,261 Commercial properties 229,424 224,167 Land held for development 62,037 84,016 Real estate subject to sales contract 7,966 2,014 Total real estate, at cost, less impairment $ 477,963 $ 463,732 Less accumulated deprecation (90,173 ) (79,228 ) Total real estate, net of depreciation $ 387,790 $ 384,504 |
Schedule of estimated useful lives of the assets | Depreciation is computed on a straight line basis over the estimated useful lives of the assets as follows: Land improvements 25 to 40 years Buildings and improvements 10 to 40 years Tenant improvements Shorter of useful life or terms of related lease Furniture, fixtures and equipment 3 to 7 years |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of reconciliation of cash and cash equivalents and restricted cash | The following is a reconciliation of the Company’s cash and cash equivalents, and restricted cash to the total presented in the consolidated statement of cash flows: December 31, 2019 2018 Cash and cash equivalents $ 51,179 $ 36,358 Restricted cash (cash held in escrow) 15,540 37,946 Restricted cash (certificate of deposits) 3,759 9,688 Restricted cash (held with Trustee) 12,783 22,573 Total cash, cash equivalents and restricted cash $ 83,261 $ 106,565 |
NOTES AND INTEREST RECEIVABLE (
NOTES AND INTEREST RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
schedule of notes and interest receivable | A majority of the notes receivable provide for principal to be paid at maturity (dollars in thousands). Borrower Maturity Date Interest Rate Amount Security Performing loans: Prospectus Endeavors 4, LLC 01/23 12.00 % 5,907 Secured Prospectus Endeavors 6, LLC 10/22 12.00 % 496 Secured Oulan-Chikh Family Trust 03/21 8.00 % 174 Secured H198, LLC (McKinney Ranch Land) 09/20 6.00 % 4,554 Secured Forest Pines 11/20 5.00 % 2,868 Secured Spyglass Apartments of Ennis, LP 11/20 5.00 % 5,288 Secured Bellwether Ridge 05/20 5.00 % 3,765 Secured Parc at Windmill Farms 05/20 5.00 % 7,602 Secured Autumn Breeze 10/21 5.00 % 1,302 Secured Plum Tree 10/21 5.00 % 413 Secured Ingleside 12/21 5.00 % 1,531 Secured RNC 09/24 5.00 % 8,802 Secured Revolving Line of Credit Steeple Crest 10/20 5.00 % 6,665 Secured RAI PFBL 2018 Purch Fee Note Weatherford 12/21 12.00 % 525 Secured Unified Housing Foundation, Inc. (Echo Station) (1) 12/32 12.00 % 1,481 Secured Unified Housing Foundation, Inc. (Lakeshore Villas) (1) 12/32 12.00 % 2,000 Secured Unified Housing Foundation, Inc. (Lakeshore Villas) (1) 12/32 12.00 % 6,369 Secured Unified Housing Foundation, Inc. (Limestone Ranch) (1) 12/32 12.00 % 1,953 Secured Unified Housing Foundation, Inc. (Limestone Ranch) (1) 12/32 12.00 % 2,000 Secured Unified Housing Foundation, Inc. (Limestone Ranch) (1) 12/32 12.00 % 4,000 Secured Unified Housing Foundation, Inc. (Timbers of Terrell) (1) 12/32 12.00 % 1,323 Secured Unified Housing Foundation, Inc. (1) 12/21 12.00 % 10,401 Unsecured Unified Housing Foundation, Inc. (1) 06/20 12.00 % 5,314 Unsecured Unified Housing Foundation, Inc. (1) 03/22 12.00 % 4,782 Unsecured Unified Housing Foundation, Inc. (Lakeshore Villas) (1) 07/21 12.00 % 838 Secured Unified Housing Foundation, Inc. (Limestone Ranch) (1) 07/21 12.00 % 773 Secured Unified Housing Foundation, Inc. (Marquis at Vista Ridge) (1) 07/21 12.00 % 839 Secured Unified Housing Foundation, Inc. (Timbers at the Park) (1) 07/21 12.00 % 432 Secured Unified Housing Foundation, Inc. (Trails at White Rock) (1) 07/21 12.00 % 913 Secured Unified Housing Foundation, Inc. (Bella Vista) (1) 08/21 12.00 % 212 Secured Unified Housing Foundation, Inc. (1) 10/21 12.00 % 6,831 Unsecured Other related party notes Various Various 3,553 Various secured interests Other non-related party notes Various Various 10,276 Various secured interests Accrued interest 8,629 Total Performing $ 122,811 Allowance for estimated losses (1,825 ) Total $ 120,986 (1) |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of financial position and results of operations from our investees | The following is a summary of the financial position and results of operations from our unconsolidated parent (dollars in thousands): December 31, 2019 2018 2017 ARL Real estate, net of accumulated depreciation $ — $ 549 $ 12,349 Notes receivable 35,213 42,517 41,928 Other assets 67,441 66,712 126,238 Notes payable (8,327 ) (9,637 ) (6,507 ) Other liabilities (26,947 ) (21,123 ) (102,014 ) Shareholders’ equity/partners capital (67,380 ) (79,018 ) (71,994 ) For the Year Ended December 31, 2019 2018 2017 Rents, interest and other income $ 12,569 $ 7,132 $ 9,193 Depreciation — — (157 ) Operating expenses (3,765 ) (2,420 ) (3,149 ) Gain on land sales 1,016 — 4,765 Interest expense (8,043 ) (7,191 ) (6,228 ) Income (loss) from continuing operations $ 1,777 $ (2,479 ) $ 4,424 Net income (loss) $ 1,777 $ (2,479 ) $ 4,424 Company’s proportionate share of income (loss) $ 16 $ (22 ) $ 40 |
NOTES AND INTEREST PAYABLE (Tab
NOTES AND INTEREST PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of notes and interest payable | Below is a summary of our notes and interest payable as of December 31, 2019 and 2018 (dollars in thousands): December 31, 2019 2018 Apartments $ 120,024 $ 94,759 Apartments under Construction 9,017 14,402 Commercial 92,838 135,951 Land 14,806 22,200 Real estate held for sale — 376 Corporate and other notes 16,430 18,130 Total notes payable $ 253,115 $ 285,818 Less: unamortized deferred borrowing costs (7,342 ) (9,425 ) Total outstanding notes payable, net $ 245,773 $ 276,393 Accrued Interest 773 844 Total notes payable, net and accrued interest $ 246,546 $ 277,237 |
Schedule of principal payments on the notes payable | Future principal payments due (including scheduled amortization payments and payments due upon maturity) on the Company’s notes payable at December 31, 2019 are as follows (in thousands): Year Amount 2020 $ 25,982 2021 55,393 2022 13,437 2023 36,770 2024 1,995 Thereafter 119,538 Total $ 253,115 |
BONDS AND BONDS INTEREST PAYA_2
BONDS AND BONDS INTEREST PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Schedule of bonds and interest payable | The outstanding balance of these Bonds at December 31, 2019 and 2018 is as follows: December 31, 2019 2018 Bonds (Series A) $ 92,653 $ 106,686 Bonds (Series B) 39,844 36,740 Bonds (Series B expansion) 20,920 19,290 Bonds (Series C) 79,572 — Total outstanding bonds $ 232,989 $ 162,716 Less: deferred bond issuance costs (9,724 ) (8,179 ) Total outstanding bonds, net 223,265 154,537 Accrued Interest 6,457 4,037 Total outstanding bonds, net and accrued interest $ 229,722 $ 158,574 |
schedule of aggregate maturities | The aggregate maturities of the bonds are as follows: Year Agrregage Maturities 2020 $ 23,148 2021 35,301 2022 35,301 2023 114,873 2024 12,153 Thereafter 12,213 $ 232,989 |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND FEES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | Fees, expenses and revenue paid to and/or received from our advisor: For the year ended December 31, 2019 2018 2017 (dollars in thousands) Fees: Advisory $ 5,806 $ 10,663 $ 9,995 Mortgage brokerage and equity refinancing — 852 1,551 Net income fee 357 631 250 $ 6,163 $ 12,146 $ 11,796 Other Expense: Cost reimbursements $ 6,687 $ 4,398 $ 2,895 Interest paid (received) (8,475 ) (7,404 ) (4,859 ) $ (1,788 ) $ (3,006 ) $ (1,964 ) Revenue: Rental $ 1,311 $ 1,178 $ 783 Fees paid to Regis and related parties: For the year ended December 31, 2019 2018 2017 (dollars in thousands) Fees: Property Sales/Acquisition $ 318 $ 43,856 $ 9,819 Property management, construction management and leasing commissions 165 540 963 Real estate brokerage 71 2,068 1,369 $ 554 $ 46,464 $ 12,151 |
Schedule of accounts receivable from and (accounts payable) to related parties | The following table reconciles the beginning and ending balances of accounts receivable from and (accounts payable) to related parties as of December 31, 2019 (dollars in thousands): Pillar ARL Total Related party receivable, beginning balance, December 31, 2018 $ — $ 133,642 $ 133,642 Cash transfers 29,395 — 29,395 Advisory fees (5,806 ) — (5,806 ) Net income fee (357 ) — (357 ) Fees and commissions (71 ) — (71 ) Cost reimbursements (6,687 ) — (6,687 ) Interest income — 8,475 8,475 Notes receivable purchased (28,669 ) — (28,669 ) Expenses (paid)/received by advisor 9,073 — 9,073 Financing (mortgage payments) — — — Sales/Purchases Commissions (318 ) — (318 ) Intercompany property transfers 2,864 — 2,864 Income tax expense — — — Deferred tax asset — — — Purchase of obligations — — Related party receivable, ending balance, December 31, 2019 $ (576 ) $ 142,117 $ 141,541 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense benefit | (Loss) income from continuing operations before income taxes Years Ended December 31, 2019 2018 2017 (In thousands) $ (28,137 ) $ 186,250 $ (15,136 ) The (benefit) expense for income taxes consists of: Years Ended December 31, 2019 2018 2017 (In thousands) Current: Federal $ — $ 42,805 $ (5,603 ) State — 1,210 10 Deferred and Other: Federal (2,000 ) (40,805 ) 5,603 State — — 170 Total tax (benefit) expense $ (2,000 ) $ 3,210 $ 180 |
Schedule of reconciliation between effective tax rate on income from continuing operations and the statutory rate | The reconciliation between the Company’s effective tax rate on income from continuing operations and the statutory rate is as follows: Years Ended December 31, 2019 2018 2017 (In thousands) Income tax (benefit) expense at federal statutory rate $ (5,909 ) $ 39,113 $ (5,603 ) State and local income taxes net of federal tax benefit 1,210 10 Permanent differences (2,406 ) (143 ) — Timing differences Installment note on land sale — (2,876 ) (1,917 ) Allowance for losses on note — (383 ) (256 ) Deferred gains (588 ) (9,417 ) (7,723 ) Basis difference on fixed assets — 23,675 10,082 Other basis/timing differences 3,173 (7,164 ) (16 ) Generation (use) of net operating loss carryforwards 5,730 (42,805 ) 5,603 Calculated income tax expense $ — $ 1,210 $ 180 Effective tax rate 0.0 % 0.6 % N/A |
Schedule of components of net deferred tax assets or liabilities | Components of the Net Deferred Tax Asset or Liability Years Ended December 31, 2019 2018 (In thousands) Deferred Tax Assets: Cumulative foreign currency translation loss $ 1,522 $ — Deferred gain 1,988 — Net operating loss carryforward 9,633 3,904 Total Deferred Tax Assets 13,143 3,904 Less: valuation allowance (6,480 ) — Total net deferred tax assets $ 6,663 $ 3,904 Deferred Tax Liabilities: Deferred gain $ — $ 2,603 Basis differences for fixed assets 6,663 3,301 Total Deferred Tax Liability $ 6,663 $ 5,904 Net deferred tax asset (liability) $ — $ (2,000 ) Current net deferred tax asset 6,663 3,904 Long-term net deferred tax liability 6,663 5,904 Net deferred tax liability $ — $ (2,000 ) |
FUTURE MINIMUM RENTAL INCOME _2
FUTURE MINIMUM RENTAL INCOME UNDER OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of minimum future rents under non-cancelable operating leases | The following is a schedule of minimum future rents on non-cancelable operating leases at December 31, 2019 (dollars in thousands): Year Amount 2020 26,208 2021 23,558 2022 20,382 2023 14,882 2024 8,861 Thereafter 7,109 Total $ 101,000 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of operating segment, including segment assets and expenditures | Presented below is the Company’s reportable segments’ operating income including segment assets and expenditures for the years 2019, 2018 and 2017 (dollars in thousands): Commercial For the Year Ended December 31, 2019 Properties Apartments Land Other Total Rental and other property revenues $ 32,707 $ 15,257 $ — $ 6 $ 47,970 Property operating expenses (15,805 ) (8,375 ) (255 ) (778 ) (25,213 ) Depreciation (10,229 ) (3,150 ) — — (13,379 ) Mortgage and loan interest (7,018 ) (4,069 ) (1,000 ) (19,729 ) (31,816 ) Loss on debt extinguishment (5,219 ) — — — (5,219 ) Interest income — — — 19,607 19,607 Loss on sale of income producing property — (80 ) — — (80 ) Gain on land sales — — 14,889 — 14,889 Segment operating (loss) income $ (5,564 ) $ (417 ) $ 13,634 $ (894 ) $ 6,759 Capital expenditures $ 5,257 $ 25,001 $ 3,489 $ — $ 33,747 Assets $ 229,424 $ 178,536 $ 70,003 $ — $ 477,963 Property Sales Sales price $ — $ 3,096 $ 30,012 $ — $ 33,108 Cost of sale — (3,176 ) (15,123 ) — (18,299 ) (Loss) gain on sales $ — $ (80 ) $ 14,889 $ — $ 14,809 Commercial For the Year Ended December 31, 2018 Properties Apartments Land Other Total Rental and other property revenues $ 33,113 $ 87,832 $ — $ 10 $ 120,955 Property operating expenses (16,558 ) (42,134 ) (275 ) (453 ) (59,420 ) Depreciation (9,530 ) (13,217 ) — (14 ) (22,761 ) Mortgage and loan interest (7,662 ) (20,671 ) (318 ) (30,221 ) (58,872 ) Interest income — — — 15,793 15,793 Gain on land sales — — 17,404 — 17,404 Segment operating income (loss) $ (637 ) $ 11,810 $ 16,811 $ (14,885 ) $ 13,099 Capital expenditures $ 8,246 $ 16,954 $ — $ — $ 25,200 Assets $ 153,018 $ 143,500 $ 84,016 $ 3,970 $ 384,504 Property Sales Sales price $ 2,313 $ 8,512 $ 43,311 $ — $ 54,136 Cost of sale (2,313 ) (8,512 ) (25,907 ) — (36,732 ) Gain on land sales $ — $ — $ 17,404 $ — $ 17,404 Commercial For the Twelve Months Ended December 31, 2017 Properties Apartments Land Other Total Rental and other property revenues $ 32,323 $ 92,807 $ 87 $ 16 $ 125,233 Property operating expenses (17,724 ) (43,677 ) (667 ) (988 ) (63,056 ) Depreciation (9,200 ) (16,354 ) — (4 ) (25,558 ) Mortgage and loan interest (7,528 ) (22,346 ) (1,588 ) (28,482 ) (59,944 ) Interest income — — — 13,862 13,862 Recognition of deferred gain on sale of income producing properties — 9,842 — — 9,842 Gain on land sales — — 4,884 — 4,884 Segment operating income (loss) $ (2,129 ) $ 20,272 $ 2,716 $ (15,596 ) $ 5,263 Capital expenditures $ 3,157 $ 1,402 $ 609 $ — $ 5,168 Assets $ 137,157 $ 726,852 $ 115,205 $ 656 $ 979,870 Property Sales Sales price $ — $ — $ 11,177 $ — $ 11,177 Cost of sale — — (6,293 ) — (6,293 ) Recognized prior deferred gain — 9,842 — — 9,842 Gain on sale $ — $ 9,842 $ 4,884 $ — $ 14,726 |
Schedule of reconciliaton of segment information to consolidated statements of operations | For the Years Ended December 31, 2019 2018 2017 Segment operating income $ 6,759 $ 13,099 $ 5,263 Other non-segment items of income (expense) General and administrative (10,951 ) (11,359 ) (6,269 ) Net income fee to related party (357 ) (631 ) (250 ) Advisory fee to related party (5,806 ) (10,663 ) (9,995 ) Other income 84 28,150 625 Gain on formation of joint venture — 154,126 — Foreign currency translation (loss) gain (15,108 ) 12,399 (4,536 ) (Loss) earnings from joint venture (2,774 ) 44 — Earnings from other unconsolidated investees 16 1,085 26 Income tax benefit (expense) 2,000 (3,210 ) (180 ) Net (loss) income from continuing operations $ (26,137 ) $ 183,040 $ (15,316 ) |
Schedule of reconciliaton segment information to consolidated balance sheets | The table below reconciles the segment information to the corresponding amounts in the Consolidated Balance Sheets: As of December 31, 2019 2018 2017 Segment assets $ 387,790 $ 384,504 $ 979,870 Investments in unconsolidated subsidiaries and investees 81,780 90,571 2,472 Notes and interest receivable 120,986 83,541 70,166 Other assets and receivables 275,362 303,764 260,914 Total assets $ 865,918 $ 862,380 $ 1,313,422 |
QUARTERLY RESULTS OF OPERATIO_2
QUARTERLY RESULTS OF OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly results of operations | The following is a tabulation of TCI’s quarterly results of operations for the years 2019, 2018 and 2017. Quarterly results presented may differ from those previously reported in TCI’s Form 10-Q due to the reclassification of the operations of properties sold or held for sale to discontinued operations in accordance with ASC topic 360: Three Months Ended 2019 March 31, June 30, September 30, December 31, (dollars in thousands, except share and per share amounts) Total operating revenues $ 11,929 $ 11,840 $ 11,883 $ 12,318 Total operating expenses 13,182 15,220 12,948 14,356 Operating loss (1,253 ) (3,380 ) (1,065 ) (2,038 ) Other expense (6,389 ) (4,639 ) (11,841 ) (12,341 ) (Loss) income before gain on formation of joint venture, gain on sales, non-controlling interest, and taxes (7,642 ) (8,019 ) (12,906 ) (14,379 ) (Loss) on sale of income producing properties — (80 ) — — Gain on land sales 2,216 2,133 5,140 5,400 Income tax benefit - deferred — — — 2,000 Net (loss) income from continued operations (5,426 ) (5,966 ) (7,766 ) (6,979 ) Net loss (5,426 ) (5,966 ) (7,766 ) (6,979 ) Less: net (loss) attributable to non-controlling interest (183 ) (379 ) (21 ) (200 ) Net loss applicable to common shares $ (5,609 ) $ (6,345 ) $ (7,787 ) $ (7,179 ) PER SHARE DATA Earnings per share - basic (Loss) income from continued operations $ (0.62 ) $ (0.68 ) $ (0.89 ) $ (0.81 ) Net (loss) income applicable to common shares $ (0.64 ) $ (0.73 ) $ (0.89 ) $ (0.83 ) Weighted average common shares used in computing earnings per share 8,717,767 8,717,767 8,717,767 8,717,767 Earnings per share - diluted (Loss) income from continued operations $ (0.62 ) $ (0.68 ) $ (0.89 ) $ (0.81 ) Net (loss) income applicable to common shares $ (0.64 ) $ (0.73 ) $ (0.89 ) $ (0.83 ) Weighted average common shares used in computing diluted earnings per share 8,717,767 8,717,767 8,717,767 8,717,767 Three Months Ended 2018 March 31, June 30, September 30, December 31, (dollars in thousands, except share and per share amounts) Total operating revenues $ 31,082 $ 31,607 $ 33,505 $ 24,761 Total operating expenses 25,894 26,966 27,734 24,240 Operating income 5,188 4,641 5,771 521 Other (expense) income (6,624 ) 2,731 5,896 (3,404 ) (Loss) income before gain on formation of joint venture, gain on sales, non-contolling interest, and taxes (1,436 ) 7,372 11,667 (2,883 ) Gain on formation of joint venture — — — 154,126 Gain on land sales 1,335 — 12,243 3,826 Income tax expense — — (792 ) (2,418 ) Net (loss) income from continued operations (101 ) 7,372 23,118 152,651 Net (loss) income (101 ) 7,372 23,118 152,651 Less: net (loss) attributable to non-controlling interest (132 ) (126 ) (915 ) (417 ) Preferred dividend requirement (222 ) (224 ) (227 ) (227 ) Net (loss) income applicable to common shares $ (455 ) $ 7,022 $ 21,976 $ 152,007 PER SHARE DATA Earnings per share - basic (Loss) income from continued operations $ (0.05 ) $ 0.81 $ 2.52 $ 17.44 Net (loss) income applicable to common shares $ (0.05 ) $ 0.81 $ 2.52 $ 17.44 Weighted average common shares used in computing earnings per share 8,717,767 8,717,767 8,717,767 8,717,767 Earnings per share - diluted (Loss) income from continued operations $ (0.05 ) $ 0.81 $ 2.52 $ 17.44 Net (loss) income applicable to common shares $ (0.05 ) $ 0.81 $ 2.52 $ 17.44 Weighted average common shares used in computing diluted earnings per share 8,717,767 8,717,767 8,717,767 8,717,767 Three Months Ended 2017 March 31, June 30, September 30, December 31, (dollars in thousands, except share and per share amounts) Total operating revenues $ 31,535 $ 31,302 $ 31,491 $ 30,905 Total operating expenses 26,337 25,460 25,725 27,606 Operating income (loss) 5,198 5,842 5,766 3,299 Other expense (10,658 ) (15,613 ) (8,967 ) (14,729 ) Loss before gain on sales, non-contolling interest, and taxes (5,460 ) (9,771 ) (3,201 ) (11,430 ) Gain (loss) on sale of income producing properties — — 9,841 1 Gain (loss) on land sales 445 (476 ) 530 4,385 Income tax benefit (expense) — — — (180 ) Net income (loss) from continued operations (5,015 ) (10,247 ) 7,170 (7,224 ) Net income (loss) (5,015 ) (10,247 ) 7,170 (7,224 ) Less: net (income) loss attributable to non-controlling interest (119 ) (163 ) (96 ) (121 ) Preferred dividend requirement (222 ) (224 ) (224 ) (230 ) Net (loss) income applicable to common shares $ (5,356 ) $ (10,634 ) $ 6,850 $ (7,575 ) PER SHARE DATA Earnings per share - basic Loss from continued operations $ (0.61 ) $ (1.22 ) $ 0.79 $ (0.88 ) Net income (loss) applicable to common shares $ (0.61 ) $ (1.22 ) $ 0.79 $ (0.88 ) Weighted average common shares used in computing earnings per share 8,717,767 8,717,767 8,717,767 8,717,767 Earnings per share - diluted Loss from continued operations $ (0.61 ) $ (1.22 ) $ 0.79 $ (0.88 ) Net income (loss) applicable to common shares $ (0.61 ) $ (1.22 ) $ 0.79 $ (0.88 ) Weighted average common shares used in computing diluted earnings per share 8,717,767 8,717,767 8,717,767 8,717,767 |
ORGANIZATION AND SUMMARY OF S_3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands | Nov. 19, 2018USD ($)Number | Dec. 31, 2019USD ($)aNumber | Dec. 31, 2018USD ($)Number | Jul. 17, 2009shares | Jul. 16, 2009 |
Acres of land | a | 1,951 | ||||
Assets | $ | $ 865,918 | $ 862,380 | |||
Residential Properties [Member] | |||||
Number of apartment units | 1,657 | 1,489 | |||
Assets | $ | $ 477,900 | $ 463,700 | |||
Number of apartment communities | 10 | 9 | |||
Commercial Properties [Member] | |||||
Number of income-producing properties | 7 | ||||
Rentable square feet | a | 1,700,000 | ||||
Office Buildings [Member] | |||||
Number of income-producing properties | 5 | ||||
Retail Properties [Member] | |||||
Number of income-producing properties | 2 | ||||
Apartment Buildings [Member] | |||||
Number of apartment units | 1,657 | ||||
Number of income-producing properties | 10 | ||||
Minimum [Member] | |||||
Percentage of ownership | 20.00% | ||||
Minimum [Member] | Buildings and Improvements [Member] | |||||
Useful life of property, plant and equipment | 10 years | ||||
Minimum [Member] | Furniture, Fixtures And Equipment [Member] | |||||
Useful life of property, plant and equipment | 5 years | ||||
Maximum [Member] | |||||
Percentage of ownership | 50.00% | ||||
Maximum [Member] | Buildings and Improvements [Member] | |||||
Useful life of property, plant and equipment | 40 years | ||||
Maximum [Member] | Furniture, Fixtures And Equipment [Member] | |||||
Useful life of property, plant and equipment | 10 years | ||||
Income Opportunities Realty Investors, Inc. [Member] | |||||
Percentage of ownership | 25.00% | ||||
Number of additional shares acquired | shares | 2,518,934 | ||||
Income Opportunities Realty Investors, Inc. [Member] | Minimum [Member] | |||||
Percentage of ownership | 80.00% | ||||
Income Opportunities Realty Investors, Inc. [Member] | |||||
Percentage of ownership | 81.23% | ||||
Victory Abode Apartments, LLC [Member] | Class B [Member] | Daniel J. Moos [Member] | |||||
Profit participation rights percentage | 2.00% | ||||
American Realty Investors, Inc [Member] | TCI [Member] | |||||
Percentage of ownership by parent | 78.38% | ||||
Parent of ARL [Member] | TCI [Member] | |||||
Percentage of ownership by non-controlling owners | 6.98% | ||||
Victory Abode Apartments, LLC [Member] | |||||
Number of apartment units | 9,888 | ||||
Number of income-producing properties | 47 | 51 | |||
Cash consideration | $ | $ 236,800 | ||||
Number of development project | 5 | ||||
Abode JVP, LLC [Member] | Victory Abode Apartments, LLC [Member] | Class A [Member] | |||||
Voting interest in joint venture | 50.00% | ||||
Profit participation rights percentage | 49.00% | ||||
Summerset Intermediate Holdings 2 LLC [Member] | Victory Abode Apartments, LLC [Member] | Class A [Member] | |||||
Voting interest in joint venture | 50.00% | ||||
Profit participation rights percentage | 49.00% |
INVESTMENT IN VAA (Details)
INVESTMENT IN VAA (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Balance Sheet | ||||||||||||||||
Net real estate assets | $ 384,504 | $ 387,790 | $ 384,504 | $ 387,790 | $ 384,504 | |||||||||||
Other assets | 63,557 | 50,560 | 63,557 | 50,560 | 63,557 | |||||||||||
Total equity | (359,720) | (332,603) | (359,720) | (332,603) | (359,720) | |||||||||||
Results of Operations | ||||||||||||||||
Total revenue | 47,970 | 120,955 | $ 125,233 | |||||||||||||
Total property, operating, and maintenance expenses | (14,356) | $ (12,948) | $ (15,220) | $ (13,182) | (24,240) | $ (27,734) | $ (26,966) | $ (25,894) | $ (27,606) | $ (25,725) | $ (25,460) | $ (26,337) | (55,706) | (104,834) | (105,128) | |
Depreciation and Amortization | (13,379) | (22,761) | (25,558) | |||||||||||||
Net loss | 16 | 1,085 | $ 26 | |||||||||||||
Adjustments to reconcile to income (loss) from VAA | ||||||||||||||||
Loss from VAA | (2,774) | 44 | ||||||||||||||
Victory Abode Apartments, LLC [Member] | ||||||||||||||||
Balance Sheet | ||||||||||||||||
Net real estate assets | 1,257,557 | 1,242,957 | 1,257,557 | 1,242,957 | 1,257,557 | |||||||||||
Other assets | 67,020 | 62,222 | 67,020 | 62,222 | 67,020 | |||||||||||
Debt, net | (791,225) | (832,779) | (791,225) | (832,779) | (791,225) | |||||||||||
Other liabilities | (280,288) | (271,291) | (280,288) | (271,291) | (280,288) | |||||||||||
Total equity | (253,064) | $ (201,109) | $ (253,064) | (201,109) | $ (253,064) | |||||||||||
Results of Operations | ||||||||||||||||
Total revenue | 12,887 | 115,377 | ||||||||||||||
Total property, operating, and maintenance expenses | (4,507) | (56,967) | ||||||||||||||
Interest expense | (5,818) | (61,487) | ||||||||||||||
Depreciation and Amortization | (6,987) | (43,942) | ||||||||||||||
Total other expense | (5,297) | (3,377) | ||||||||||||||
Net loss | (9,722) | (50,396) | ||||||||||||||
Adjustments to reconcile to income (loss) from VAA | ||||||||||||||||
Interest expense on mezzanine loan | 2,815 | 25,014 | ||||||||||||||
In-place lease intangibles amortization expense | 3,983 | 14,703 | ||||||||||||||
Depreciation basis differences | 3,012 | 5,132 | ||||||||||||||
Net loss | $ 88 | $ (5,547) | ||||||||||||||
Percentage ownership in VAA | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | |||||||||||
Loss from VAA | $ 44 | $ (2,774) |
INVESTMENT IN VAA (Details 1)
INVESTMENT IN VAA (Details 1) - Victory Abode Apartments, LLC [Member] | Dec. 31, 2019Number |
Total number of apartments | 51 |
Total Apartment Units | 9,888 |
ALABAMA | |
Total number of apartments | 1 |
Total Apartment Units | 168 |
ARKANSAS | |
Total number of apartments | 5 |
Total Apartment Units | 1,122 |
COLORADO | |
Total number of apartments | 2 |
Total Apartment Units | 260 |
FLORIDA | |
Total number of apartments | 2 |
Total Apartment Units | 388 |
GEORGIA | |
Total number of apartments | 1 |
Total Apartment Units | 222 |
LOUISIANA | |
Total number of apartments | 3 |
Total Apartment Units | 464 |
MISSISSIPPI | |
Total number of apartments | 1 |
Total Apartment Units | 196 |
NEVADA | |
Total number of apartments | 1 |
Total Apartment Units | 308 |
NORTH CAROLINA | |
Total number of apartments | 1 |
Total Apartment Units | 201 |
TENNESSEE | |
Total number of apartments | 4 |
Total Apartment Units | 708 |
Texas-Greater Dallas Ft. Worth | |
Total number of apartments | 19 |
Total Apartment Units | 3,709 |
Texas-Greater Houston | |
Total number of apartments | 2 |
Total Apartment Units | 416 |
TEXAS | |
Total number of apartments | 9 |
Total Apartment Units | 1,726 |
INVESTMENT IN VAA (Details 2)
INVESTMENT IN VAA (Details 2) $ in Thousands | Dec. 31, 2019USD ($)Number | Dec. 31, 2018USD ($) | |
Costs to Date | $ 22,363 | $ 27,261 | |
Victory Abode Apartments, LLC [Member] | |||
Total Apartment Units | Number | 9,888 | ||
Victory Abode Apartments, LLC [Member] | Lakeside Lofts Apartments [Member] | Framers Branch, Texas | |||
Total Apartment Units | Number | 249 | ||
Costs to Date | [1] | $ 50,357 | |
Total Projected Costs | [1] | $ 80,622 | |
Victory Abode Apartments, LLC [Member] | Apartment Projects In Development [Member] | |||
Total Apartment Units | Number | 249 | ||
Costs to Date | [1] | $ 50,357 | |
Total Projected Costs | [1] | $ 80,622 | |
[1] | Costs include construction hard costs, construction soft costs and loan borrowing costs. |
INVESTMENT IN VAA (Details Narr
INVESTMENT IN VAA (Details Narrative) $ in Thousands | Nov. 20, 2019USD ($) | Nov. 20, 2019USD ($) | Dec. 31, 2019USD ($)Number |
Victory Abode Apartments, LLC [Member] | |||
Cash distribution from VAA | $ 19,400 | ||
Victory Abode Apartments, LLC [Member] | Class B [Member] | Daniel J. Moos [Member] | |||
Profit participation rights percentage | 2.00% | ||
Cash payment upon closing | $ 1,900 | ||
Victory Abode Apartments, LLC [Member] | Abode JVP, LLC [Member] | Class A [Member] | |||
Voting interest in joint venture | 50.00% | ||
Profit participation rights percentage | 49.00% | ||
Victory Abode Apartments, LLC [Member] | Summerset Intermediate Holdings 2 LLC [Member] | Class A [Member] | |||
Voting interest in joint venture | 50.00% | ||
Profit participation rights percentage | 49.00% | ||
Transcontinental Realty Investors, Inc. [Member] | Residential Apartments [Member] | |||
Number of portfolio contributed | Number | 47 | ||
Transcontinental Realty Investors, Inc. [Member] | Development Projects [Member] | |||
Number of portfolio contributed | Number | 3 | ||
Victory Abode Apartments, LLC [Member] | |||
Cash consideration | $ 236,800 | ||
Recognized gain | $ 154,100 |
REAL ESTATE (Details)
REAL ESTATE (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Real Estate [Abstract] | ||||
Apartments | $ 156,173 | $ 126,274 | ||
Apartments under construction | 22,363 | 27,261 | ||
Commercial properties | 229,424 | 224,167 | ||
Land held for development | 62,037 | 84,016 | ||
Real estate subject to sales contract | 7,966 | 2,014 | ||
Total real estate, at cost, less impairment | 477,963 | 463,732 | ||
Less accumulated depreciation | (90,173) | (79,228) | $ (177,546) | $ (165,597) |
Total real estate, net of depreciation | $ 387,790 | $ 384,504 |
REAL ESTATE (Details 1)
REAL ESTATE (Details 1) | 12 Months Ended |
Dec. 31, 2019 | |
Land Improvements [Member] | Minimum [Member] | |
Estimated useful lives | 25 years |
Land Improvements [Member] | Maximum [Member] | |
Estimated useful lives | 40 years |
Buildings and Improvements [Member] | Minimum [Member] | |
Estimated useful lives | 10 years |
Buildings and Improvements [Member] | Maximum [Member] | |
Estimated useful lives | 40 years |
Tenant Improvements [Member] | |
Estimated useful lives | Shorter of useful life or terms of related lease |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |
Estimated useful lives | 3 years |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |
Estimated useful lives | 7 years |
REAL ESTATE (Details Narrative)
REAL ESTATE (Details Narrative) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2019USD ($)a | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Gain on sale of land | $ 5,400 | $ 5,140 | $ 2,133 | $ 2,216 | $ 3,826 | $ 12,243 | $ 1,335 | $ 4,385 | $ 530 | $ (476) | $ 445 | $ 14,889 | $ 17,404 | $ 4,884 |
Purchase price of properties | $ 10,558 | $ 37,044 | ||||||||||||
Payment for construction or predevelopment of various apartment complexes | 28,500 | |||||||||||||
Capitalized interest costs | 800 | 800 | ||||||||||||
Payments to acquire land | $ 3,422 | |||||||||||||
Third Party Land Developer [Member] | ||||||||||||||
Area of land purchased | a | 37.8 | |||||||||||||
Purchase price of properties | $ 2,000 | |||||||||||||
Farmers Branch, Texas [Member] | ||||||||||||||
Area of land sold | a | 35.9 | |||||||||||||
Proceeds from sale of land | $ 18,900 | |||||||||||||
Gain on sale of land | $ 9,000 | |||||||||||||
Forney, Texas [Member] | ||||||||||||||
Area of land sold | a | 29.4 | |||||||||||||
Proceeds from sale of land | $ 5,000 | |||||||||||||
Gain on sale of land | $ 4,100 | |||||||||||||
Dallas Texas [Member] | ||||||||||||||
Area of land sold | a | 10.33 | |||||||||||||
Proceeds from sale of land | $ 2,100 | |||||||||||||
Gain on sale of land | $ 400 | |||||||||||||
Nashville, Tennessee [Member] | ||||||||||||||
Area of land sold | a | 6.25 | |||||||||||||
Proceeds from sale of land | $ 2,300 | |||||||||||||
Gain on sale of land | $ 900 | |||||||||||||
Fort Worth Texas [Member] | ||||||||||||||
Area of land sold | a | 23.24 | |||||||||||||
Proceeds from sale of land | $ 1,800 | |||||||||||||
Gain on sale of land | 500 | |||||||||||||
Mary Ester, Florida [Member] | ||||||||||||||
Proceeds from sale of property | 3,100 | |||||||||||||
Gain (loss) on sale of property | (80) | |||||||||||||
Proceeds from sale of receivables | $ 1,800 | |||||||||||||
Area of land purchased | a | 1.27 | |||||||||||||
Athens, Alabama [Member] | Note Payable [Member] | ||||||||||||||
Area of land purchased | a | 33.05 | |||||||||||||
Purchase price of properties | $ 2,100 | |||||||||||||
Payments to acquire land | 900 | |||||||||||||
Debt instrument principal amount | $ 1,200 | $ 1,200 | ||||||||||||
Maturity term | 18 months | |||||||||||||
Interest rate | 5.91% | 5.91% | ||||||||||||
Collin County, Texas [Member] | ||||||||||||||
Area of land purchased | a | 8.94 | |||||||||||||
Purchase price of properties | $ 2,500 | |||||||||||||
Collin County, Texas [Member] | Third Party Land Developer [Member] | ||||||||||||||
Area of land purchased | a | 6.3 | |||||||||||||
Clark County, Nevada[Member] | Third Party Land Developer [Member] | ||||||||||||||
Area of land purchased | a | 31.5 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents | $ 51,179 | $ 36,358 | ||
Restricted cash | 32,082 | 70,207 | ||
Total cash, cash equivalents and restricted cash | 83,261 | 106,565 | $ 88,342 | $ 55,733 |
Held in Escrow [Member] | ||||
Restricted cash | 15,540 | 37,946 | ||
Certificates of Deposit [Member] | ||||
Restricted cash | 3,759 | 9,688 | ||
Held With Trustee [Member] | ||||
Restricted cash | $ 12,783 | $ 22,573 |
SUPPLEMENTAL CASH FLOW INFORM_4
SUPPLEMENTAL CASH FLOW INFORMATION (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | ||||
Interest expense paid | $ 29,430 | $ 61,587 | $ 49,791 | |
Cash and cash equivalents, and restricted cash | $ 83,261 | $ 106,565 | $ 88,342 | $ 55,733 |
NOTES AND INTEREST RECEIVABLE_2
NOTES AND INTEREST RECEIVABLE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Accrued interest | $ 8,629 | ||||
Notes and interest receivable | 120,986 | $ 83,541 | $ 70,166 | $ 81,133 | |
Performing Loans [Member] | |||||
Notes and interest receivable | 122,811 | ||||
Accrued interest | 8,629 | ||||
Allowance for estimated losses | (1,825) | ||||
Notes and interest receivable | $ 120,986 | ||||
Performing Loans [Member] | Prospectus Endeavors 4, LLC [Member] | |||||
Maturity Date | Jan. 31, 2023 | ||||
Description of property | Prospectus Endeavors 4, LLC | ||||
Interest Rate | 12.00% | ||||
Notes and interest receivable | $ 5,907 | ||||
Description of Security | Secured | ||||
Performing Loans [Member] | Prospectus Endeavors 6, LLC [Member] | |||||
Maturity Date | Oct. 31, 2022 | ||||
Description of property | Prospectus Endeavors 6, LLC | ||||
Interest Rate | 12.00% | ||||
Notes and interest receivable | $ 496 | ||||
Description of Security | Secured | ||||
Performing Loans [Member] | Oulan-Chikh Family Trust [Member] | |||||
Maturity Date | Mar. 31, 2021 | ||||
Description of property | Oulan-Chikh Family Trust | ||||
Interest Rate | 8.00% | ||||
Notes and interest receivable | $ 174 | ||||
Description of Security | Secured | ||||
Performing Loans [Member] | H198, LLC (McKinney Ranch Land) [Member] | |||||
Maturity Date | Sep. 30, 2020 | ||||
Description of property | H198, LLC (McKinney Ranch Land | ||||
Interest Rate | 6.00% | ||||
Notes and interest receivable | $ 4,554 | ||||
Description of Security | Secured | ||||
Performing Loans [Member] | Forest Pines [Member] | |||||
Maturity Date | Nov. 30, 2020 | ||||
Description of property | Forest Pines | ||||
Interest Rate | 5.00% | ||||
Notes and interest receivable | $ 2,868 | ||||
Description of Security | Secured | ||||
Performing Loans [Member] | Spyglass Apartments of Ennis, LP [Member] | |||||
Maturity Date | Nov. 30, 2020 | ||||
Description of property | Spyglass Apartments of Ennis, LP | ||||
Interest Rate | 5.00% | ||||
Notes and interest receivable | $ 5,288 | ||||
Description of Security | Secured | ||||
Performing Loans [Member] | Bellwether Ridge [Member] | |||||
Maturity Date | May 31, 2020 | ||||
Description of property | Bellwether Ridge | ||||
Interest Rate | 5.00% | ||||
Notes and interest receivable | $ 3,765 | ||||
Description of Security | Secured | ||||
Performing Loans [Member] | Parc at Windmill Farms [Member] | |||||
Maturity Date | May 31, 2020 | ||||
Description of property | Parc at Windmill Farms | ||||
Interest Rate | 5.00% | ||||
Notes and interest receivable | $ 7,602 | ||||
Description of Security | Secured | ||||
Performing Loans [Member] | RAI PFBL 2018 Purch Fee Note Weatherford [Member] | |||||
Maturity Date | Dec. 31, 2021 | ||||
Description of property | RAI PFBL 2018 Purch Fee Note Weatherford | ||||
Interest Rate | 12.00% | ||||
Notes and interest receivable | $ 525 | ||||
Description of Security | Secured | ||||
Performing Loans [Member] | Autumn Breeze [Member] | |||||
Maturity Date | Oct. 31, 2021 | ||||
Description of property | Autumn Breeze | ||||
Interest Rate | 5.00% | ||||
Notes and interest receivable | $ 1,302 | ||||
Description of Security | Secured | ||||
Performing Loans [Member] | Plum Tree [Member] | |||||
Maturity Date | Oct. 31, 2021 | ||||
Description of property | Plum Tree | ||||
Interest Rate | 5.00% | ||||
Notes and interest receivable | $ 413 | ||||
Description of Security | Secured | ||||
Performing Loans [Member] | Ingleside [Member] | |||||
Maturity Date | Dec. 31, 2021 | ||||
Description of property | Ingleside | ||||
Interest Rate | 5.00% | ||||
Notes and interest receivable | $ 1,531 | ||||
Description of Security | Secured | ||||
Performing Loans [Member] | RNC [Member] | |||||
Maturity Date | Sep. 30, 2024 | ||||
Description of property | RNC | ||||
Interest Rate | 5.00% | ||||
Notes and interest receivable | $ 8,802 | ||||
Description of Security | Secured | ||||
Performing Loans [Member] | Revolving Line of Credit Steeple Crest [Member] | |||||
Maturity Date | Oct. 31, 2020 | ||||
Description of property | Revolving Line of Credit Steeple Crest | ||||
Interest Rate | 5.00% | ||||
Notes and interest receivable | $ 6,665 | ||||
Description of Security | Secured | ||||
Performing Loans [Member] | Unified Housing Foundation, Inc. (Echo Station) [Member] | |||||
Maturity Date | [1] | Dec. 31, 2032 | |||
Description of property | [1] | Unified Housing Foundation, Inc. (Echo Station) | |||
Interest Rate | [1] | 12.00% | |||
Notes and interest receivable | [1] | $ 1,481 | |||
Description of Security | [1] | Secured | |||
Performing Loans [Member] | Unified Housing Foundation, Inc. (Lakeshore Villas) [Member] | |||||
Maturity Date | [1] | Dec. 31, 2032 | |||
Description of property | [1] | Unified Housing Foundation, Inc. (Lakeshore Villas) | |||
Interest Rate | [1] | 12.00% | |||
Notes and interest receivable | [1] | $ 2,000 | |||
Description of Security | [1] | Secured | |||
Performing Loans [Member] | Unified Housing Foundation, Inc. (Lakeshore Villas) [Member] | |||||
Maturity Date | [1] | Dec. 31, 2032 | |||
Description of property | [1] | Unified Housing Foundation, Inc. (Lakeshore Villas) | |||
Interest Rate | [1] | 12.00% | |||
Notes and interest receivable | [1] | $ 6,369 | |||
Description of Security | [1] | Secured | |||
Performing Loans [Member] | Unified Housing Foundation, Inc. (Limestone Ranch) [Member] | |||||
Maturity Date | [1] | Dec. 31, 2032 | |||
Description of property | [1] | Unified Housing Foundation, Inc. (Limestone Ranch) | |||
Interest Rate | [1] | 12.00% | |||
Notes and interest receivable | [1] | $ 1,953 | |||
Description of Security | [1] | Secured | |||
Performing Loans [Member] | Unified Housing Foundation, Inc. (Limestone Ranch) [Member] | |||||
Maturity Date | [1] | Dec. 31, 2032 | |||
Description of property | [1] | Unified Housing Foundation, Inc. (Limestone Ranch) | |||
Interest Rate | [1] | 12.00% | |||
Notes and interest receivable | [1] | $ 2,000 | |||
Description of Security | [1] | Secured | |||
Performing Loans [Member] | Unified Housing Foundation, Inc. (Limestone Ranch) [Member] | |||||
Maturity Date | [1] | Dec. 31, 2032 | |||
Description of property | [1] | Unified Housing Foundation, Inc. (Limestone Ranch) | |||
Interest Rate | [1] | 12.00% | |||
Notes and interest receivable | [1] | $ 4,000 | |||
Description of Security | [1] | Secured | |||
Performing Loans [Member] | Unified Housing Foundation, Inc. (Timbers of Terrell) [Member] | |||||
Maturity Date | [1] | Dec. 31, 2032 | |||
Description of property | [1] | Unified Housing Foundation, Inc. (Timbers of Terrell) | |||
Interest Rate | [1] | 12.00% | |||
Notes and interest receivable | [1] | $ 1,323 | |||
Description of Security | [1] | Secured | |||
Performing Loans [Member] | Unified Housing Foundation, Inc. #4 [Member] | |||||
Maturity Date | [1] | Dec. 31, 2021 | |||
Description of property | [1] | Unified Housing Foundation, Inc. | |||
Interest Rate | [1] | 12.00% | |||
Notes and interest receivable | [1] | $ 10,401 | |||
Description of Security | [1] | Unsecured | |||
Performing Loans [Member] | Unified Housing Foundation, Inc. #5 [Member] | |||||
Maturity Date | [1] | Jun. 30, 2020 | |||
Description of property | [1] | Unified Housing Foundation, Inc. | |||
Interest Rate | [1] | 12.00% | |||
Notes and interest receivable | [1] | $ 5,314 | |||
Description of Security | [1] | Unsecured | |||
Performing Loans [Member] | Unified Housing Foundation, Inc. #6 [Member] | |||||
Maturity Date | [1] | Mar. 31, 2022 | |||
Description of property | [1] | Unified Housing Foundation, Inc. | |||
Interest Rate | [1] | 12.00% | |||
Notes and interest receivable | [1] | $ 4,782 | |||
Description of Security | [1] | Unsecured | |||
Performing Loans [Member] | Unified Housing Foundation, Inc. (Lakeshore Villas) [Member] | |||||
Maturity Date | [1] | Jul. 31, 2021 | |||
Description of property | [1] | Unified Housing Foundation, Inc. (Lakeshore Villas) | |||
Interest Rate | [1] | 12.00% | |||
Notes and interest receivable | [1] | $ 838 | |||
Description of Security | [1] | Secured | |||
Performing Loans [Member] | Unified Housing Foundation, Inc. (Limestone Ranch) [Member] | |||||
Maturity Date | [1] | Jul. 31, 2021 | |||
Description of property | [1] | Unified Housing Foundation, Inc. (Limestone Ranch) | |||
Interest Rate | [1] | 12.00% | |||
Notes and interest receivable | [1] | $ 773 | |||
Description of Security | [1] | Secured | |||
Performing Loans [Member] | Unified Housing Foundation, Inc. (Marquis at Vista Ridge) [Member] | |||||
Maturity Date | [1] | Jul. 31, 2021 | |||
Description of property | [1] | Unified Housing Foundation, Inc. (Marquis at Vista Ridge) | |||
Interest Rate | [1] | 12.00% | |||
Notes and interest receivable | [1] | $ 839 | |||
Description of Security | [1] | Secured | |||
Performing Loans [Member] | Unified Housing Foundation, Inc. (Timbers at the Park) [Member] | |||||
Maturity Date | [1] | Jul. 31, 2021 | |||
Description of property | [1] | Unified Housing Foundation, Inc. (Timbers at the Park) | |||
Interest Rate | [1] | 12.00% | |||
Notes and interest receivable | [1] | $ 432 | |||
Description of Security | [1] | Secured | |||
Performing Loans [Member] | Unified Housing Foundation, Inc. (Trails at White Rock) [Member] | |||||
Maturity Date | [1] | Jul. 31, 2021 | |||
Description of property | [1] | Unified Housing Foundation, Inc. (Trails at White Rock) | |||
Interest Rate | [1] | 12.00% | |||
Notes and interest receivable | [1] | $ 913 | |||
Description of Security | [1] | Secured | |||
Performing Loans [Member] | Unified Housing Foundation, Inc. (Bella Vista) [Member] | |||||
Maturity Date | [1] | Aug. 31, 2021 | |||
Description of property | [1] | Unified Housing Foundation, Inc. (Bella Vista) | |||
Interest Rate | [1] | 12.00% | |||
Notes and interest receivable | [1] | $ 212 | |||
Description of Security | [1] | Secured | |||
Performing Loans [Member] | Unified Housing Foundation, Inc. #7 [Member] | |||||
Maturity Date | [1] | Oct. 31, 2021 | |||
Description of property | [1] | Unified Housing Foundation, Inc. | |||
Interest Rate | [1] | 12.00% | |||
Notes and interest receivable | [1] | $ 6,831 | |||
Description of Security | [1] | Unsecured | |||
Performing Loans [Member] | Other Related Party Notes [Member] | |||||
Description of maturity date | Various | ||||
Description of property | Other related party notes | ||||
Description of Interest Rate | Various | ||||
Notes and interest receivable | $ 3,553 | ||||
Description of Security | Various secured interests | ||||
Performing Loans [Member] | Other Non-Related Party Notes [Member] | |||||
Description of maturity date | Various | ||||
Description of property | Other non-related party notes | ||||
Description of Interest Rate | Various | ||||
Notes and interest receivable | $ 10,276 | ||||
Description of Security | Various secured interests | ||||
[1] | Related party notes |
NOTES AND INTEREST RECEIVABLE_3
NOTES AND INTEREST RECEIVABLE (Details Narrative) - Related Parties [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Notes receivable due from related parties | $ 54,000 |
Interest income from these related party notes receivable | 6,900 |
Accrued interest receivables from related parties | 1,000 |
Note receivables, face amount | $ 29,000 |
INVESTMENT IN UNCONSOLIDATED _3
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Real estate, net of accumulated depreciation | $ 387,790 | $ 384,504 | $ 387,790 | $ 384,504 | |||||||||||
Other assets | 50,560 | 63,557 | 50,560 | 63,557 | |||||||||||
Notes payable | (246,546) | (277,237) | (246,546) | (277,237) | |||||||||||
Shareholders' equity/partners capital | (332,603) | (359,720) | (332,603) | (359,720) | |||||||||||
Total revenue | 47,970 | 120,955 | $ 125,233 | ||||||||||||
Depreciation | (13,379) | (22,761) | (25,558) | ||||||||||||
Operating expenses | (14,356) | $ (12,948) | $ (15,220) | $ (13,182) | (24,240) | $ (27,734) | $ (26,966) | $ (25,894) | $ (27,606) | $ (25,725) | $ (25,460) | $ (26,337) | (55,706) | (104,834) | (105,128) |
Income (loss) from continuing operations | (26,137) | 183,040 | (15,316) | ||||||||||||
Net income (loss) | (26,920) | 181,450 | (15,815) | ||||||||||||
Company's proportionate share of loss | 16 | 1,085 | 26 | ||||||||||||
American Realty Investors, Inc. [Member] | |||||||||||||||
Real estate, net of accumulated depreciation | 549 | 12,349 | 549 | 12,349 | |||||||||||
Notes receivable | 35,213 | 42,517 | 41,928 | 35,213 | 42,517 | 41,928 | |||||||||
Other assets | 67,441 | 66,712 | 126,238 | 67,441 | 66,712 | 126,238 | |||||||||
Notes payable | (8,327) | (9,637) | (6,507) | (8,327) | (9,637) | (6,507) | |||||||||
Other liabilities | (26,947) | (21,123) | (102,014) | (26,947) | (21,123) | (102,014) | |||||||||
Shareholders' equity/partners capital | $ (67,380) | $ (79,018) | $ (71,994) | (67,380) | (79,018) | (71,994) | |||||||||
Total revenue | 12,569 | 7,132 | 9,193 | ||||||||||||
Depreciation | (157) | ||||||||||||||
Operating expenses | (3,765) | (2,420) | (3,149) | ||||||||||||
Gain on land sales | 1,016 | 4,765 | |||||||||||||
Interest expense | (8,043) | (7,191) | (6,228) | ||||||||||||
Income (loss) from continuing operations | 1,777 | (2,479) | 4,424 | ||||||||||||
Net income (loss) | 1,777 | (2,479) | 4,424 | ||||||||||||
Company's proportionate share of loss | $ 16 | $ (22) | $ 40 |
INVESTMENT IN UNCONSOLIDATED _4
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | |
Minimum [Member] | ||
Percentage of ownership | 20.00% | |
Maximum [Member] | ||
Percentage of ownership | 50.00% | |
American Realty Investors, Inc. [Member] | ||
Percentage of ownership | 0.90% | |
Investment cost | $ 9,000 | |
American Realty Investors, Inc. [Member] | Series A Convertible Preferred Stock [Member] | ||
Number of shares purchased | 900,000 | |
Value of preferred stock purchased | $ 9,000 | |
Percent of average daily closing price for conversion | 90.00% | |
Number of trading days | 20 days | |
Accrued unpaid dividends | $ 9,900 |
NOTES AND INTEREST PAYABLE (Det
NOTES AND INTEREST PAYABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Total notes payable | $ 253,115 | $ 285,818 |
Less: unamortized deferred borrowing costs | (7,342) | (9,425) |
Total outstanding notes payable, net | 245,773 | 276,393 |
Accrued Interest | 773 | 844 |
Total notes payable, net and accrued interest | 246,546 | 277,237 |
Apartments [Member] | ||
Total notes payable | 120,024 | 94,759 |
Apartments under Construction [Member] | ||
Total notes payable | 9,017 | 14,402 |
Commercial [Member] | ||
Total notes payable | 92,838 | 135,951 |
Land [Member] | ||
Total notes payable | 14,806 | 22,200 |
Corporate and Other Notes [Member] | ||
Total notes payable | $ 16,430 | 18,130 |
Real Estate Held For Sale [Member] | ||
Total notes payable | $ 376 |
NOTES AND INTEREST PAYABLE (D_2
NOTES AND INTEREST PAYABLE (Details 1) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 25,982 | |
2021 | 55,393 | |
2022 | 13,437 | |
2023 | 36,770 | |
2024 | 1,995 | |
Thereafter | 119,538 | |
Total | $ 253,115 | $ 285,818 |
NOTES AND INTEREST PAYABLE (D_3
NOTES AND INTEREST PAYABLE (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Increase in construction loans | $ 28,500 | $ 81,000 |
Interest payable | $ 773 | $ 844 |
Description of maturity date | Maturity dates between 2021 and 2059. | |
Real estate, net carrying value | $ 311,500 | |
Minimum [Member] | ||
Interest rate | 2.50% | |
Maximum [Member] | ||
Interest rate | 9.75% |
BONDS AND BONDS INTEREST PAYA_3
BONDS AND BONDS INTEREST PAYABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 19, 2018 | Feb. 15, 2018 |
Less: deferred issuance expense, net | $ (7,342) | $ (9,425) | ||
Accrued Interest | 773 | 844 | ||
Bonds (Series A) [Member] | ||||
Bonds | 92,653 | 106,686 | ||
Bonds (Series B) [Member] | ||||
Bonds | 39,844 | 36,740 | ||
Less: deferred issuance expense, net | $ (1,900) | $ (1,400) | ||
Bonds (Series B expansion) [Member] | ||||
Bonds | 20,920 | 19,290 | ||
Bonds (Series C) [Member] | ||||
Bonds | 79,572 | |||
Bonds [Member] | ||||
Bonds | 232,989 | 162,716 | ||
Less: deferred issuance expense, net | (9,724) | (8,179) | ||
Total outstanding bonds, net | 223,265 | 154,537 | ||
Accrued Interest | 6,457 | 4,037 | ||
Total oustanding bonds, net and accrued interest | $ 229,722 | $ 158,574 |
BONDS AND BONDS INTEREST PAYA_4
BONDS AND BONDS INTEREST PAYABLE (Details 1) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Year ended December 31, | ||
2021 | $ 55,393 | |
2022 | 13,437 | |
2023 | 36,770 | |
2024 | 1,995 | |
Thereafter | 119,538 | |
Bonds [Member] | ||
Year ended December 31, | ||
2020 | 23,148 | |
2021 | 35,301 | |
2022 | 35,301 | |
2023 | 114,873 | |
2024 | 12,153 | |
Thereafter | 12,213 | |
Total | $ 232,989 | $ 162,716 |
BONDS AND BONDS INTEREST PAYA_5
BONDS AND BONDS INTEREST PAYABLE (Details Narrative) - USD ($) $ in Thousands | Jan. 27, 2020 | Jul. 26, 2018 | Jan. 25, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 23, 2019 | Jul. 28, 2019 | Jul. 19, 2018 | Mar. 31, 2018 | Feb. 15, 2018 | Feb. 13, 2017 |
Bond issuance cost | $ 7,342 | $ 9,425 | |||||||||
Loss on foreign currency transaction | 15,100 | 12,400 | |||||||||
Foreign Currency Hedge Contract [Member] | Bank Leumi [Member] | |||||||||||
Derivative notional amount | $ 221,000 | ||||||||||
Israel, New Shekels [Member] | Foreign Currency Hedge Contract [Member] | Bank Leumi [Member] | |||||||||||
Derivative notional amount | $ 664,000 | ||||||||||
Series A and B Bonds [Member] | |||||||||||
Interest paid to bondholders | $ 5,200 | ||||||||||
Series A and B Bonds [Member] | Israel, New Shekels [Member] | |||||||||||
Interest paid to bondholders | $ 18,900 | ||||||||||
Bonds (Series A) [Member] | |||||||||||
Effective interest rate | 9.17% | ||||||||||
Interest paid to bondholders | $ 4,300 | ||||||||||
Bonds (Series A) [Member] | Southern Properties Capital LTD [Member] | |||||||||||
Debentures offering amount | $ 115,000 | ||||||||||
Interest rate | 7.30% | ||||||||||
Bonds (Series A) [Member] | Israel, New Shekels [Member] | |||||||||||
Interest paid to bondholders | $ 14,600 | ||||||||||
Bonds (Series A) [Member] | Israel, New Shekels [Member] | Subsequent Event [Member] | |||||||||||
Payment of bond principal | $ 60,600 | ||||||||||
Bonds (Series A) [Member] | Israel, New Shekels [Member] | Southern Properties Capital LTD [Member] | |||||||||||
Debentures offering amount | $ 400,000 | ||||||||||
Series B Bonds [Member] | |||||||||||
Debentures offering amount | $ 19,800 | $ 39,200 | |||||||||
Interest rate | 6.80% | 6.80% | |||||||||
Effective interest rate | 9.60% | 7.99% | |||||||||
Bond issuance cost | $ 1,900 | $ 1,400 | |||||||||
Series B Bonds [Member] | Israel, New Shekels [Member] | |||||||||||
Debentures offering amount | $ 72,300 | $ 137,700 | |||||||||
Series C Bonds [Member] | |||||||||||
Debentures offering amount | $ 78,100 | ||||||||||
Interest rate | 4.65% | ||||||||||
Bond issuance cost | $ 4,200 | ||||||||||
Series C Bonds [Member] | Israel, New Shekels [Member] | |||||||||||
Debentures offering amount | $ 275,000 | ||||||||||
Bonds [Member] | |||||||||||
Payment of bond principal | 21,800 | ||||||||||
Bond issuance cost | 9,724 | $ 8,179 | |||||||||
Interest paid to bondholders | $ 11,600 | ||||||||||
Bonds (Series A, B, C) [Member] | Subsequent Event [Member] | |||||||||||
Interest paid to bondholders | 17,600 | ||||||||||
Bonds (Series A, B, C) [Member] | Israel, New Shekels [Member] | Subsequent Event [Member] | |||||||||||
Interest paid to bondholders | $ 60,600 |
RELATED PARTY TRANSACTIONS AN_3
RELATED PARTY TRANSACTIONS AND FEES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fees: | |||
Advisory | $ 5,806 | $ 10,663 | $ 9,995 |
Net income | 357 | 631 | 250 |
Other Expense: | |||
Cost reimbursements | 6,687 | ||
Pillar Income Asset Management, Inc [Member] | |||
Fees: | |||
Advisory | 5,806 | 10,663 | 9,995 |
Mortgage brokerage and equity refinancing | 852 | 1,551 | |
Net income | 357 | 631 | 250 |
Total fees | 6,163 | 12,146 | 11,796 |
Other Expense: | |||
Cost reimbursements | 6,687 | 4,398 | 2,895 |
Interest received | (8,475) | (7,404) | (4,859) |
Total other expense | (1,788) | (3,006) | (1,964) |
Revenue: | |||
Rental | 1,311 | 1,178 | 783 |
Regis Realty Prime, LLC [Member] | |||
Fees: | |||
Property acquisition | 318 | 43,856 | 9,819 |
Property management, construction management and leasing commissions | 165 | 540 | 963 |
Real estate brokerage | 71 | 2,068 | 1,369 |
Total fees | $ 554 | $ 46,464 | $ 12,151 |
RELATED PARTY TRANSACTIONS AN_4
RELATED PARTY TRANSACTIONS AND FEES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Due from Related Parties [RollForward] | |||
Related party receivable, beginning balance | $ 133,642 | ||
Cash transfers | 29,395 | ||
Advisory fees | (5,806) | $ (10,663) | $ (9,995) |
Net income fee | (357) | (631) | (250) |
Fees and commissions | (71) | ||
Cost reimbursements | (6,687) | ||
Interest income | 8,475 | ||
Notes receivable purchased | (28,669) | ||
Expenses (paid)/received by advisor | 9,073 | ||
Sales/purchases Commission | (318) | ||
Intercompany property transfers | 2,864 | ||
Related party receivable, ending balance | 141,541 | 133,642 | |
Pillar Income Asset Management, Inc [Member] | |||
Due from Related Parties [RollForward] | |||
Cash transfers | 29,395 | ||
Advisory fees | (5,806) | (10,663) | (9,995) |
Net income fee | (357) | (631) | (250) |
Fees and commissions | (71) | ||
Cost reimbursements | (6,687) | (4,398) | $ (2,895) |
Notes receivable purchased | (28,669) | ||
Expenses (paid)/received by advisor | 9,073 | ||
Sales/purchases Commission | (318) | ||
Intercompany property transfers | 2,864 | ||
Related party receivable, ending balance | (576) | ||
American Realty Investors, Inc [Member] | |||
Due from Related Parties [RollForward] | |||
Related party receivable, beginning balance | 133,642 | ||
Interest income | 8,475 | ||
Related party receivable, ending balance | $ 142,117 | $ 133,642 |
RELATED PARTY TRANSACTIONS AN_5
RELATED PARTY TRANSACTIONS AND FEES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest receivable | $ 8,629 | ||
Total notes receivable | 114,182 | ||
Collections on notes receivable | $ 21,589 | $ 6,077 | $ 26,230 |
Statutory tax rate | 21.00% | 21.00% | 35.00% |
Maximum [Member] | |||
Statutory tax rate | 21.00% | ||
Related Party [Member] | |||
Interest income | $ 6,900 | ||
Related Party [Member] | Mezzanine Financing [Member] | |||
Guarantor - notes payable | 25,000 | ||
Pillar Income Asset Management, Inc [Member] | |||
Rental revenue | 1,300 | $ 1,200 | $ 800 |
Management fee | $ 2,200 | ||
SPC [Member] | |||
Annual pament percentage | 0.50% | ||
Unified Housing Foundation, Inc. [Member] | |||
Interest receivable | $ 54,000 | ||
Total notes receivable | 3,200 | ||
Recognized interest income | 6,900 | ||
Originated interest income | 21,400 | ||
Principal payments | 12,400 | ||
Interest income | $ 7,600 |
DEFERRED INCOME (Details Narrat
DEFERRED INCOME (Details Narrative) $ in Thousands | Dec. 31, 2019USD ($) |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred revenue | $ 9,500 |
PREFERRED STOCK (Details Narrat
PREFERRED STOCK (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2006 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Preferred stock dividend (in percent) | 9.00% | 9.00% | ||
Value of redeemed | $ 10,000 | |||
Series D Preferred Stock [Member] | ||||
Share issued | 100,000 | |||
Preferred stock, liquidation preference per share | $ 100 | |||
Preferred stock dividend (in percent) | 7.00% | |||
Accrued unpaid dividends | $ 7,200 | |||
Value of redeemed | $ 17,200 | |||
Series D Preferred Stock [Member] | Minimum [Member] | ||||
Preferred stock dividend (in percent) | 7.00% | |||
Series D Preferred Stock [Member] | Maximum [Member] | ||||
Preferred stock dividend (in percent) | 9.00% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||
Income before income taxes | $ (28,137) | $ 186,250 | $ (15,136) | ||||
Current: | |||||||
Federal | 42,805 | (5,603) | |||||
State | 1,210 | 10 | |||||
Deferred and Other: | |||||||
Federal | (2,000) | (40,805) | 5,603 | ||||
State | 170 | ||||||
Total Tax (benefit) expense | $ 2,000 | $ (2,418) | $ (792) | $ (180) | $ (2,000) | $ 3,210 | $ 180 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax (benefit) expense at federal statutory rate | $ (5,909) | $ 39,113 | $ (5,603) |
State and local income taxes net of federal tax benefit | 1,210 | 10 | |
Permanent differences | (2,406) | (143) | |
Timing differences | |||
Installment note on land sale | (2,876) | (1,917) | |
Allowance for losses on note | (383) | (256) | |
Deferred gains | (588) | (9,417) | (7,723) |
Basis difference on fixed asssets | 23,675 | 10,082 | |
Other basis/timing differences | 3,173 | (7,164) | (16) |
Generation (use) of net operating loss carryforwards | 5,730 | (42,805) | 5,603 |
Calculated income tax expense | $ 0 | $ 1,210 | $ 180 |
Effective Tax Rate | 0.00% | 0.60% |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets: | ||
Cumulative foreign currency translation loss | $ 1,522 | |
Deferred Gain | 1,988 | |
Net operating loss carryforward | 9,633 | $ 3,904 |
Total Deferred Tax Assets | 13,143 | 3,904 |
Less: valuation allowance | (6,480) | |
Total net deferred tax assets | 6,663 | 3,904 |
Deferred Tax Liabilities: | ||
Deferred gain | 2,603 | |
Basis differences for fixed assets | 6,663 | 3,301 |
Total deferred tax liability | 6,663 | 5,904 |
Net deferred tax asset (liability) | 0 | (2,000) |
Current net deferred tax asset | 6,663 | 3,904 |
Long-term net deferred tax liability | 6,663 | 5,904 |
Net deferred tax liability | $ 0 | $ (2,000) |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax rate for corporations | 21.00% | 21.00% | 35.00% |
FUTURE MINIMUM RENTAL INCOME _3
FUTURE MINIMUM RENTAL INCOME UNDER OPERATING LEASES (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 26,208 |
2021 | 23,558 |
2022 | 20,382 |
2023 | 14,882 |
2024 | 8,861 |
Thereafter | 7,109 |
Total | $ 101,000 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||||||
Rental and other property revenues | $ 47,970 | $ 120,955 | $ 125,233 | ||||||||||||
Property operating expenses | (25,213) | (59,420) | (63,056) | ||||||||||||
Depreciation | (13,379) | (22,761) | (25,558) | ||||||||||||
Loss on debt extinguishment | (5,219) | ||||||||||||||
Loss on sale of income producing property | $ (80) | $ 1 | $ 9,841 | (80) | 9,842 | ||||||||||
Segment operating income (loss) | $ (2,038) | $ (1,065) | $ (3,380) | $ (1,253) | $ 521 | $ 5,771 | $ 4,641 | $ 5,188 | 3,299 | $ 5,766 | $ 5,842 | $ 5,198 | (7,736) | 16,121 | 20,105 |
Assets | 387,790 | 384,504 | 387,790 | 384,504 | |||||||||||
Operating Segments [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Rental and other property revenues | 47,970 | 120,955 | 125,233 | ||||||||||||
Property operating expenses | (25,213) | (59,420) | (63,056) | ||||||||||||
Depreciation | (13,379) | (22,761) | (25,558) | ||||||||||||
Mortgage and loan interest | (31,816) | (58,872) | (59,944) | ||||||||||||
Loss on debt extinguishment | (5,219) | ||||||||||||||
Interest income | 19,607 | 15,793 | 13,862 | ||||||||||||
Loss on sale of income producing property | (80) | ||||||||||||||
Recognition of deferred gain on sale of income producing properties | 9,842 | ||||||||||||||
Gain on land sales | 14,889 | 17,404 | 4,884 | ||||||||||||
Segment operating income (loss) | 6,759 | 13,099 | 5,263 | ||||||||||||
Capital expenditures | 33,747 | 25,200 | 5,168 | ||||||||||||
Assets | 477,963 | 384,504 | 979,870 | 477,963 | 384,504 | 979,870 | |||||||||
Property Sales | |||||||||||||||
Sales price | 33,108 | 54,136 | 11,177 | ||||||||||||
Cost of sale | (18,299) | (36,732) | (6,293) | ||||||||||||
Recognized prior deferred gain | 9,842 | ||||||||||||||
(Loss) gain on sales | 14,809 | 17,404 | 14,726 | ||||||||||||
Commercial Properties [Member] | Operating Segments [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Rental and other property revenues | 32,707 | 33,113 | 32,323 | ||||||||||||
Property operating expenses | (15,805) | (16,558) | (17,724) | ||||||||||||
Depreciation | (10,229) | (9,530) | (9,200) | ||||||||||||
Mortgage and loan interest | (7,018) | (7,662) | (7,528) | ||||||||||||
Loss on debt extinguishment | (5,219) | ||||||||||||||
Segment operating income (loss) | (5,564) | (637) | (2,129) | ||||||||||||
Capital expenditures | 5,257 | 8,246 | 3,157 | ||||||||||||
Assets | 229,424 | 153,018 | 137,157 | 229,424 | 153,018 | 137,157 | |||||||||
Property Sales | |||||||||||||||
Sales price | 2,313 | ||||||||||||||
Cost of sale | (2,313) | ||||||||||||||
Apartments [Member] | Operating Segments [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Rental and other property revenues | 15,257 | 87,832 | 92,807 | ||||||||||||
Property operating expenses | (8,375) | (42,134) | (43,677) | ||||||||||||
Depreciation | (3,150) | (13,217) | (16,354) | ||||||||||||
Mortgage and loan interest | (4,069) | (20,671) | (22,346) | ||||||||||||
Loss on sale of income producing property | (80) | ||||||||||||||
Recognition of deferred gain on sale of income producing properties | 9,842 | ||||||||||||||
Segment operating income (loss) | (417) | 11,810 | 20,272 | ||||||||||||
Capital expenditures | 25,001 | 16,954 | 1,402 | ||||||||||||
Assets | 178,536 | 143,500 | 726,852 | 178,536 | 143,500 | 726,852 | |||||||||
Property Sales | |||||||||||||||
Sales price | 3,096 | 8,512 | |||||||||||||
Cost of sale | (3,176) | (8,512) | |||||||||||||
Recognized prior deferred gain | 9,842 | ||||||||||||||
(Loss) gain on sales | (80) | 9,842 | |||||||||||||
Land [Member] | Operating Segments [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Rental and other property revenues | 87 | ||||||||||||||
Property operating expenses | (255) | (275) | (667) | ||||||||||||
Mortgage and loan interest | (1,000) | (318) | (1,588) | ||||||||||||
Gain on land sales | 14,889 | 17,404 | 4,884 | ||||||||||||
Segment operating income (loss) | 13,634 | 16,811 | 2,716 | ||||||||||||
Capital expenditures | 3,489 | 609 | |||||||||||||
Assets | $ 70,003 | 84,016 | 115,205 | 70,003 | 84,016 | 115,205 | |||||||||
Property Sales | |||||||||||||||
Sales price | 30,012 | 43,311 | 11,177 | ||||||||||||
Cost of sale | (15,123) | (25,907) | (6,293) | ||||||||||||
(Loss) gain on sales | 14,889 | 17,404 | 4,884 | ||||||||||||
Other [Member] | Operating Segments [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Rental and other property revenues | 6 | 10 | 16 | ||||||||||||
Property operating expenses | (778) | (453) | (988) | ||||||||||||
Depreciation | (14) | (4) | |||||||||||||
Mortgage and loan interest | (19,729) | (30,221) | (28,482) | ||||||||||||
Interest income | 19,607 | 15,793 | 13,862 | ||||||||||||
Segment operating income (loss) | $ (894) | (14,885) | (15,596) | ||||||||||||
Assets | $ 3,970 | $ 656 | $ 3,970 | $ 656 |
OPERATING SEGMENTS (Details 1)
OPERATING SEGMENTS (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment operating income | $ (2,038) | $ (1,065) | $ (3,380) | $ (1,253) | $ 521 | $ 5,771 | $ 4,641 | $ 5,188 | $ 3,299 | $ 5,766 | $ 5,842 | $ 5,198 | $ (7,736) | $ 16,121 | $ 20,105 |
Other non-segment items of income (expense) | |||||||||||||||
General and administrative | (10,951) | (11,359) | (6,269) | ||||||||||||
Net income fee to related party | (357) | (631) | (250) | ||||||||||||
Advisory fee to related party | (5,806) | (10,663) | (9,995) | ||||||||||||
Other income | 84 | 28,150 | 625 | ||||||||||||
Gain on formation of joint venture | 154,126 | ||||||||||||||
Foreign currency translation (loss) gain | (15,108) | 12,399 | (4,536) | ||||||||||||
(Loss) earnings from joint venture | (2,774) | 44 | |||||||||||||
Earnings from other unconsolidated investees | 16 | 1,085 | 26 | ||||||||||||
Income tax benefit (expense) | (2,000) | 2,418 | 792 | 180 | 2,000 | (3,210) | (180) | ||||||||
Net (loss) income from continuing operations | $ (6,979) | $ (7,766) | $ (5,966) | $ (5,426) | $ 152,651 | $ 23,118 | $ 7,372 | $ (101) | $ (7,224) | $ 7,170 | $ (10,247) | $ (5,015) | (26,137) | 183,040 | (15,316) |
Operating Segments [Member] | |||||||||||||||
Segment operating income | 6,759 | 13,099 | 5,263 | ||||||||||||
Other non-segment items of income (expense) | |||||||||||||||
General and administrative | (10,951) | (11,359) | (6,269) | ||||||||||||
Net income fee to related party | (357) | (631) | (250) | ||||||||||||
Advisory fee to related party | (5,806) | (10,663) | (9,995) | ||||||||||||
Other income | 84 | 28,150 | 625 | ||||||||||||
Gain on formation of joint venture | 154,126 | ||||||||||||||
Foreign currency translation (loss) gain | (15,108) | 12,399 | (4,536) | ||||||||||||
(Loss) earnings from joint venture | (2,774) | 44 | |||||||||||||
Earnings from other unconsolidated investees | 16 | 1,085 | 26 | ||||||||||||
Income tax benefit (expense) | 2,000 | (3,210) | (180) | ||||||||||||
Net (loss) income from continuing operations | $ (26,137) | $ 183,040 | $ (15,316) |
OPERATING SEGMENTS (Details 2)
OPERATING SEGMENTS (Details 2) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Segment assets | $ 387,790 | $ 384,504 | |
Investments in unconsolidated subsidiaries and investees | 22,632 | 22,172 | |
Total assets | 865,918 | 862,380 | |
Segment Reconciling Items [Member] | |||
Segment assets | 387,790 | 384,504 | $ 979,870 |
Investments in unconsolidated subsidiaries and investees | 81,780 | 90,571 | 2,472 |
Notes and interest receivable | 120,986 | 83,541 | 70,166 |
Other assets and receivables | 275,362 | 303,764 | 260,914 |
Total assets | $ 865,918 | $ 862,380 | $ 1,313,422 |
QUARTERLY RESULTS OF OPERATIO_3
QUARTERLY RESULTS OF OPERATIONS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Total operating revenues | $ 12,318 | $ 11,883 | $ 11,840 | $ 11,929 | $ 24,761 | $ 33,505 | $ 31,607 | $ 31,082 | $ 30,905 | $ 31,491 | $ 31,302 | $ 31,535 | |||
Total operating expenses | 14,356 | 12,948 | 15,220 | 13,182 | 24,240 | 27,734 | 26,966 | 25,894 | 27,606 | 25,725 | 25,460 | 26,337 | $ 55,706 | $ 104,834 | $ 105,128 |
Operating income (loss) | (2,038) | (1,065) | (3,380) | (1,253) | 521 | 5,771 | 4,641 | 5,188 | 3,299 | 5,766 | 5,842 | 5,198 | (7,736) | 16,121 | 20,105 |
Other (expense) income | (12,341) | (11,841) | (4,639) | (6,389) | (3,404) | 5,896 | 2,731 | (6,624) | (14,729) | (8,967) | (15,613) | (10,658) | (35,210) | (1,401) | (49,967) |
(Loss) income before gain on formation of joint venture, gain on sales, non-contolling interest, and taxes | (14,379) | (12,906) | (8,019) | (7,642) | (2,883) | 11,667 | 7,372 | (1,436) | (11,430) | (3,201) | (9,771) | (5,460) | (42,946) | 14,720 | (29,862) |
Gain (loss) on sale of income producing properties | (80) | 1 | 9,841 | (80) | 9,842 | ||||||||||
Gain on formation of joint venture | 154,126 | ||||||||||||||
Gain (loss) on land sales | 5,400 | 5,140 | 2,133 | 2,216 | 3,826 | 12,243 | 1,335 | 4,385 | 530 | (476) | 445 | 14,889 | 17,404 | 4,884 | |
Income tax benefit (expense) | 2,000 | (2,418) | (792) | (180) | (2,000) | 3,210 | 180 | ||||||||
Net (loss) income from continued operations | (6,979) | (7,766) | (5,966) | (5,426) | 152,651 | 23,118 | 7,372 | (101) | (7,224) | 7,170 | (10,247) | (5,015) | (26,137) | 183,040 | (15,316) |
Net (loss) income | (6,979) | (7,766) | (5,966) | (5,426) | 152,651 | 23,118 | 7,372 | (101) | (7,224) | 7,170 | (10,247) | (5,015) | (26,137) | 183,040 | (15,316) |
Less: net (income) loss attributable to non-controlling interest | (200) | (21) | (379) | (183) | (417) | (915) | (126) | (132) | (121) | (96) | (163) | (119) | |||
Preferred dividend requirement | (227) | (227) | (224) | (222) | (230) | (224) | (224) | (222) | |||||||
Net (loss) income applicable to common shares | $ (7,179) | $ (7,787) | $ (6,345) | $ (5,609) | $ 152,007 | $ 21,976 | $ 7,022 | $ (455) | $ (7,575) | $ 6,850 | $ (10,634) | $ (5,356) | $ (26,920) | $ 180,550 | $ (16,715) |
Earnings per share - basic | |||||||||||||||
(Loss) income from continued operations (in dollars per share) | $ (.81) | $ (0.89) | $ (0.68) | $ (0.62) | $ 17.44 | $ 2.52 | $ 0.81 | $ (0.05) | $ (0.88) | $ 0.79 | $ (1.22) | $ (0.61) | $ (3) | $ 20.89 | $ (1.86) |
Net (loss) income applicable to common shares (in dollars per share) | $ (.83) | $ (0.89) | $ (0.73) | $ (0.64) | $ 17.44 | $ 2.52 | $ 0.81 | $ (0.05) | $ (0.88) | $ 0.79 | $ (1.22) | $ (0.61) | $ (3.09) | $ 20.71 | $ (1.92) |
Weighted average common shares used in computing earnings per share | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 |
Earnings per share - diluted | |||||||||||||||
(Loss) income from continued operations (in dollars per share) | $ (0.81) | $ (0.89) | $ (0.68) | $ (0.62) | $ 17.44 | $ 2.52 | $ 0.81 | $ (0.05) | $ (0.88) | $ 0.79 | $ (1.22) | $ (0.61) | $ (3) | $ 20.89 | $ (1.86) |
Net (loss) income applicable to common shares (in dollars per share) | $ (0.83) | $ (0.89) | $ (0.73) | $ (0.64) | $ 17.44 | $ 2.52 | $ 0.81 | $ (0.05) | $ (0.88) | $ 0.79 | $ (1.22) | $ (0.61) | $ (3.09) | $ 20.71 | $ (1.92) |
Weighted average common shares used in computing diluted earnings per share | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 | 8,717,767 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES AND LIQUIDITY (Details Narrative) - USD ($) $ in Thousands | Jul. 20, 2015 | Jan. 31, 2012 | Oct. 31, 2011 | Dec. 31, 2019 | Feb. 04, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2012 |
Notes and interest receivable | $ 120,986 | $ 83,541 | $ 70,166 | $ 81,133 | |||||
Common stock held by shareholder of lawsuit | 7,900 | ||||||||
Lender [Member] | |||||||||
Guarantors of loan | $ 25,000 | ||||||||
Dynex Litigation [Member] | |||||||||
Unfunded loan commitment | $ 160,000 | ||||||||
Awarded attorney fees | $ 1,600 | ||||||||
Post-judgment interest rate | 5.00% | ||||||||
Dynex Litigation [Member] | Transcontinental Realty Investors, Inc. [Member] | |||||||||
Damages awarded value | $ 19,500 | ||||||||
Actual damages awarded value | 11,100 | ||||||||
Interest damages awarded value | 8,400 | ||||||||
Dynex Litigation [Member] | American Realty Trust, Inc. [Member] | |||||||||
Damages awarded value | 24,800 | ||||||||
Actual damages awarded value | 14,200 | ||||||||
Interest damages awarded value | 10,600 | ||||||||
Dynex Litigation [Member] | Basic Capital Management, Inc. [Member] | |||||||||
Damages awarded value | 448 | ||||||||
Actual damages awarded value | 256 | ||||||||
Interest damages awarded value | $ 192 | ||||||||
ART and ART Midwest, Inc. Litigation [Member] | |||||||||
Damages awarded value | $ 59,000 | $ 74,000 | |||||||
Actual damages awarded value | 26,000 | ||||||||
Interest damages awarded value | $ 48,000 | ||||||||
Notes and interest receivable | $ 10,000 | $ 0 |
EARNINGS PER SHARE (Details Nar
EARNINGS PER SHARE (Details Narrative) $ / shares in Units, $ in Thousands | Jul. 09, 2014USD ($)$ / sharesshares |
Common shares issued upon conversion | 304,298 |
Series C Cumulative Convertible Preferred Stock [Member] | |
Preferred stock, shares issued | 30,000 |
Preferred stock, shares outstanding | 30,000 |
Accrued Dividends | $ | $ 900 |
Preferred stock, liquidation preference per share | $ / shares | $ 100 |
Percentage of the average daily closing price of common stock | 90.00% |
Number of trading days | 5 days |
Shares converted | 30,000 |
SCHEDULE III REAL ESTATE AND _2
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Gross Amounts of Which Carried at End of Year Total | $ 477,963 | $ 463,732 | $ 1,165,662 | $ 1,066,603 |
Accumulated Depreciation | 90,173 | $ 79,228 | $ 177,546 | $ 165,597 |
Properties Held for Investment/Corporate Debt [Member] | ||||
Encumbrances | 236,685 | |||
Initial Cost Land | 136,552 | |||
Initial Cost Buildings | 284,089 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 88,386 | |||
Asset Impairment | (31,064) | |||
Gross Amounts of Which Carried at End of Year Land | 136,552 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 341,411 | |||
Gross Amounts of Which Carried at End of Year Total | 477,963 | |||
Accumulated Depreciation | 90,173 | |||
Properties Held for Investment/Corporate Debt [Member] | Properties Held for Investment Apartments [Member] | ||||
Encumbrances | 120,024 | |||
Initial Cost Land | 15,981 | |||
Initial Cost Buildings | 135,766 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 4,426 | |||
Gross Amounts of Which Carried at End of Year Land | 15,981 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 140,192 | |||
Gross Amounts of Which Carried at End of Year Total | 156,173 | |||
Accumulated Depreciation | 10,562 | |||
Properties Held for Investment/Corporate Debt [Member] | Properties Held for Investment Apartments [Member] | Legacy at Pleasant Grove, Texarkana [Member] | TEXAS | ||||
Encumbrances | 13,944 | |||
Initial Cost Land | 2,005 | |||
Initial Cost Buildings | 17,892 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 217 | |||
Gross Amounts of Which Carried at End of Year Land | 2,005 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 18,109 | |||
Gross Amounts of Which Carried at End of Year Total | 20,114 | |||
Accumulated Depreciation | $ 2,289 | |||
Date of Construction | 2006 | |||
Date Acquired | 12/14 | |||
Life on Which Depreciation In Latest Statement of Operation is Computed | 40 years | |||
Properties Held for Investment/Corporate Debt [Member] | Properties Held for Investment Apartments [Member] | Toulon, Gautier [Member] | MISSISSIPPI | ||||
Encumbrances | $ 19,575 | |||
Initial Cost Land | 1,621 | |||
Initial Cost Buildings | 20,107 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 372 | |||
Gross Amounts of Which Carried at End of Year Land | 1,621 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 20,479 | |||
Gross Amounts of Which Carried at End of Year Total | 22,100 | |||
Accumulated Depreciation | $ 4,273 | |||
Date of Construction | 2011 | |||
Date Acquired | 09/09 | |||
Life on Which Depreciation In Latest Statement of Operation is Computed | 40 years | |||
Properties Held for Investment/Corporate Debt [Member] | Properties Held for Investment Apartments [Member] | Villager, Ft. Walton [Member] | FLORIDA | ||||
Encumbrances | $ 672 | |||
Initial Cost Land | 141 | |||
Initial Cost Buildings | 1,267 | |||
Gross Amounts of Which Carried at End of Year Land | 141 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 1,267 | |||
Gross Amounts of Which Carried at End of Year Total | 1,408 | |||
Accumulated Depreciation | $ 148 | |||
Date of Construction | 1972 | |||
Date Acquired | 06/15 | |||
Life on Which Depreciation In Latest Statement of Operation is Computed | 40 years | |||
Properties Held for Investment/Corporate Debt [Member] | Properties Held for Investment Apartments [Member] | Villas at Bon Secour, Gulf Shores [Member] | ALABAMA | ||||
Encumbrances | $ 11,212 | |||
Initial Cost Land | 2,715 | |||
Initial Cost Buildings | 15,385 | |||
Gross Amounts of Which Carried at End of Year Land | 2,715 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 15,385 | |||
Gross Amounts of Which Carried at End of Year Total | 18,100 | |||
Accumulated Depreciation | $ 545 | |||
Date of Construction | 2007 | |||
Date Acquired | 07/18 | |||
Life on Which Depreciation In Latest Statement of Operation is Computed | 40 years | |||
Properties Held for Investment/Corporate Debt [Member] | Properties Held for Investment Apartments [Member] | Vista Ridge, Tupelo [Member] | MISSISSIPPI | ||||
Encumbrances | $ 10,252 | |||
Initial Cost Land | 1,339 | |||
Initial Cost Buildings | 13,398 | |||
Gross Amounts of Which Carried at End of Year Land | 1,339 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 13,398 | |||
Gross Amounts of Which Carried at End of Year Total | 14,737 | |||
Accumulated Depreciation | $ 1,893 | |||
Date of Construction | 2009 | |||
Date Acquired | 10/15 | |||
Life on Which Depreciation In Latest Statement of Operation is Computed | 40 years | |||
Properties Held for Investment/Corporate Debt [Member] | Properties Held for Investment Apartments [Member] | Chelsea, Beaumont [Member] | TEXAS | ||||
Encumbrances | $ 8,794 | |||
Initial Cost Land | 1,225 | |||
Initial Cost Buildings | 11,025 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 160 | |||
Gross Amounts of Which Carried at End of Year Land | 1,225 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 11,185 | |||
Gross Amounts of Which Carried at End of Year Total | 12,410 | |||
Accumulated Depreciation | $ 303 | |||
Date of Construction | 1999 | |||
Date Acquired | 11/18 | |||
Life on Which Depreciation In Latest Statement of Operation is Computed | 40 years | |||
Properties Held for Investment/Corporate Debt [Member] | Properties Held for Investment Apartments [Member] | Overlook at Allensville Square II, Sevierville [Member] | TENNESSEE | ||||
Encumbrances | $ 15,829 | |||
Initial Cost Land | 2,411 | |||
Initial Cost Buildings | 17,005 | |||
Gross Amounts of Which Carried at End of Year Land | 2,411 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 17,005 | |||
Gross Amounts of Which Carried at End of Year Total | 19,416 | |||
Accumulated Depreciation | $ 319 | |||
Date of Construction | 2012 | |||
Date Acquired | 11/15 | |||
Life on Which Depreciation In Latest Statement of Operation is Computed | 40 years | |||
Properties Held for Investment/Corporate Debt [Member] | Properties Held for Investment Apartments [Member] | Landing, Houma [Member] | LOUISIANA | ||||
Encumbrances | $ 15,484 | |||
Initial Cost Land | 2,012 | |||
Initial Cost Buildings | 18,115 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 25 | |||
Gross Amounts of Which Carried at End of Year Land | 2,012 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 18,140 | |||
Gross Amounts of Which Carried at End of Year Total | 20,152 | |||
Accumulated Depreciation | $ 491 | |||
Date of Construction | 2005 | |||
Date Acquired | 12/18 | |||
Life on Which Depreciation In Latest Statement of Operation is Computed | 40 years | |||
Properties Held for Investment/Corporate Debt [Member] | Properties Held for Investment Apartments [Member] | Farnham Park, Port Aurther [Member] | TEXAS | ||||
Encumbrances | $ 9,183 | |||
Initial Cost Land | 1,010 | |||
Initial Cost Buildings | 9,086 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 144 | |||
Gross Amounts of Which Carried at End of Year Land | 1,010 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 9,230 | |||
Gross Amounts of Which Carried at End of Year Total | 10,240 | |||
Accumulated Depreciation | $ 251 | |||
Date of Construction | 1999 | |||
Date Acquired | 11/18 | |||
Life on Which Depreciation In Latest Statement of Operation is Computed | 40 years | |||
Properties Held for Investment/Corporate Debt [Member] | Properties Held for Investment Apartments [Member] | Parc at Denham Springs Phase II, Denham Springs [Member] | LOUISIANA | ||||
Encumbrances | $ 15,079 | |||
Initial Cost Land | 1,502 | |||
Initial Cost Buildings | 12,486 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 3,508 | |||
Gross Amounts of Which Carried at End of Year Land | 1,502 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 15,994 | |||
Gross Amounts of Which Carried at End of Year Total | 17,496 | |||
Accumulated Depreciation | $ 50 | |||
Date of Construction | 2010 | |||
Date Acquired | 11/9 | |||
Life on Which Depreciation In Latest Statement of Operation is Computed | 40 years | |||
Properties Held for Investment/Corporate Debt [Member] | Apartments Under Construction [Member] | ||||
Encumbrances | $ 9,017 | |||
Initial Cost Land | 10,195 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 12,168 | |||
Gross Amounts of Which Carried at End of Year Land | 10,195 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 12,168 | |||
Gross Amounts of Which Carried at End of Year Total | 22,363 | |||
Properties Held for Investment/Corporate Debt [Member] | Apartments Under Construction [Member] | Forest Pines [Member] | TEXAS | ||||
Initial Cost Land | 5,040 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 301 | |||
Gross Amounts of Which Carried at End of Year Land | 5,040 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 301 | |||
Gross Amounts of Which Carried at End of Year Total | 5,341 | |||
Properties Held for Investment/Corporate Debt [Member] | Apartments Under Construction [Member] | Sugar Mill III, Addis [Member] | LOUISIANA | ||||
Encumbrances | 6,302 | |||
Initial Cost Land | 576 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 7,023 | |||
Gross Amounts of Which Carried at End of Year Land | 576 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 7,023 | |||
Gross Amounts of Which Carried at End of Year Total | $ 7,599 | |||
Date Acquired | 11/15 | |||
Properties Held for Investment/Corporate Debt [Member] | Apartments Under Construction [Member] | McKinney Apts at Heritage, McKinney [Member] | TEXAS | ||||
Initial Cost Land | $ 2,481 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 89 | |||
Gross Amounts of Which Carried at End of Year Land | 2,481 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 89 | |||
Gross Amounts of Which Carried at End of Year Total | $ 2,570 | |||
Date Acquired | 6/17 | |||
Properties Held for Investment/Corporate Debt [Member] | Apartments Under Construction [Member] | Forest Pines Phase II (Forest Grove), Bryan [Member] | TEXAS | ||||
Encumbrances | $ 1,560 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 4,674 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 4,674 | |||
Gross Amounts of Which Carried at End of Year Total | $ 4,674 | |||
Date Acquired | 4/19 | |||
Properties Held for Investment/Corporate Debt [Member] | Apartments Under Construction [Member] | LD Athens Lindsay Ln, Athens [Member] | LOUISIANA | ||||
Encumbrances | $ 1,155 | |||
Initial Cost Land | 2,098 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 81 | |||
Gross Amounts of Which Carried at End of Year Land | 2,098 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 81 | |||
Gross Amounts of Which Carried at End of Year Total | $ 2,179 | |||
Date Acquired | 9/19 | |||
Properties Held for Investment/Corporate Debt [Member] | Commercial Held for Investment [Member] | ||||
Encumbrances | $ 92,838 | |||
Initial Cost Land | 33,533 | |||
Initial Cost Buildings | 148,323 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 57,168 | |||
Asset Impairment | (9,600) | |||
Gross Amounts of Which Carried at End of Year Land | 33,533 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 195,891 | |||
Gross Amounts of Which Carried at End of Year Total | 229,424 | |||
Accumulated Depreciation | 79,611 | |||
Properties Held for Investment/Corporate Debt [Member] | Commercial Held for Investment [Member] | 600 Las Colinass, Las Colinas [Member] | TEXAS | ||||
Encumbrances | 37,215 | |||
Initial Cost Land | 5,751 | |||
Initial Cost Buildings | 51,759 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 20,143 | |||
Gross Amounts of Which Carried at End of Year Land | 5,751 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 71,902 | |||
Gross Amounts of Which Carried at End of Year Total | 77,653 | |||
Accumulated Depreciation | $ 32,858 | |||
Date of Construction | 1984 | |||
Date Acquired | 08/05 | |||
Life on Which Depreciation In Latest Statement of Operation is Computed | 40 years | |||
Properties Held for Investment/Corporate Debt [Member] | Commercial Held for Investment [Member] | 770 South Post Oak, Houston [Member] | TEXAS | ||||
Encumbrances | $ 12,178 | |||
Initial Cost Land | 1,763 | |||
Initial Cost Buildings | 15,834 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 697 | |||
Gross Amounts of Which Carried at End of Year Land | 1,763 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 16,531 | |||
Gross Amounts of Which Carried at End of Year Total | 18,294 | |||
Accumulated Depreciation | $ 2,117 | |||
Date of Construction | 1970 | |||
Date Acquired | 07/15 | |||
Life on Which Depreciation In Latest Statement of Operation is Computed | 40 years | |||
Properties Held for Investment/Corporate Debt [Member] | Commercial Held for Investment [Member] | Bridgeview Plaza, LaCrosse [Member] | WISCONSIN | ||||
Encumbrances | $ 3,908 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 1,207 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 1,207 | |||
Gross Amounts of Which Carried at End of Year Total | 1,207 | |||
Accumulated Depreciation | $ 804 | |||
Date of Construction | 1979 | |||
Date Acquired | 03/03 | |||
Life on Which Depreciation In Latest Statement of Operation is Computed | 40 years | |||
Properties Held for Investment/Corporate Debt [Member] | Commercial Held for Investment [Member] | Browning Place (Park West I), Farmers Branch [Member] | TEXAS | ||||
Initial Cost Land | $ 5,096 | |||
Initial Cost Buildings | 45,868 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 26,645 | |||
Gross Amounts of Which Carried at End of Year Land | 5,096 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 72,513 | |||
Gross Amounts of Which Carried at End of Year Total | 77,609 | |||
Accumulated Depreciation | $ 29,867 | |||
Date of Construction | 1984 | |||
Date Acquired | 04/05 | |||
Life on Which Depreciation In Latest Statement of Operation is Computed | 40 years | |||
Properties Held for Investment/Corporate Debt [Member] | Commercial Held for Investment [Member] | Fruitland Plaza, Fruitland Park [Member] | FLORIDA | ||||
Initial Cost Land | $ 23 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 83 | |||
Gross Amounts of Which Carried at End of Year Land | 23 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 83 | |||
Gross Amounts of Which Carried at End of Year Total | 106 | |||
Accumulated Depreciation | $ 71 | |||
Date Acquired | 05/92 | |||
Life on Which Depreciation In Latest Statement of Operation is Computed | 40 years | |||
Properties Held for Investment/Corporate Debt [Member] | Commercial Held for Investment [Member] | Senlac VHP, Farmers Branch [Member] | TEXAS | ||||
Initial Cost Land | $ 622 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 142 | |||
Gross Amounts of Which Carried at End of Year Land | 622 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 142 | |||
Gross Amounts of Which Carried at End of Year Total | 764 | |||
Accumulated Depreciation | $ 142 | |||
Date Acquired | 08/05 | |||
Life on Which Depreciation In Latest Statement of Operation is Computed | 40 years | |||
Properties Held for Investment/Corporate Debt [Member] | Commercial Held for Investment [Member] | Stanford Center, Dallas [Member] | TEXAS | ||||
Encumbrances | $ 39,537 | |||
Initial Cost Land | 20,278 | |||
Initial Cost Buildings | 34,862 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 8,251 | |||
Asset Impairment | (9,600) | |||
Gross Amounts of Which Carried at End of Year Land | 20,278 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 33,513 | |||
Gross Amounts of Which Carried at End of Year Total | 53,791 | |||
Accumulated Depreciation | $ 13,752 | |||
Date Acquired | 06/08 | |||
Life on Which Depreciation In Latest Statement of Operation is Computed | 40 years | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | Dedeaux, Gulfport [Member] | MISSISSIPPI | ||||
Initial Cost Land | $ 1,612 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 46 | |||
Asset Impairment | (38) | |||
Gross Amounts of Which Carried at End of Year Land | 1,612 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 8 | |||
Gross Amounts of Which Carried at End of Year Total | $ 1,620 | |||
Date Acquired | 10/06 | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | Gautier Land, Gautier [Member] | MISSISSIPPI | ||||
Initial Cost Land | $ 202 | |||
Gross Amounts of Which Carried at End of Year Land | 202 | |||
Gross Amounts of Which Carried at End of Year Total | $ 202 | |||
Date Acquired | 07/98 | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | Lake Shore Villas, Humble [Member] | TEXAS | ||||
Initial Cost Land | $ 81 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 3 | |||
Gross Amounts of Which Carried at End of Year Land | 81 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 3 | |||
Gross Amounts of Which Carried at End of Year Total | $ 84 | |||
Date Acquired | 03/02 | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | Lubbock Land, Lubbock [Member] | TEXAS | ||||
Initial Cost Land | $ 234 | |||
Gross Amounts of Which Carried at End of Year Land | 234 | |||
Gross Amounts of Which Carried at End of Year Total | $ 234 | |||
Date Acquired | 01/04 | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | Ocean Estates, Gulfport [Member] | MISSISSIPPI | ||||
Initial Cost Land | $ 1,418 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 390 | |||
Gross Amounts of Which Carried at End of Year Land | 1,418 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 390 | |||
Gross Amounts of Which Carried at End of Year Total | $ 1,808 | |||
Date Acquired | 10/07 | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | Union Pacific Railroad Land, Dallas [Member] | TEXAS | ||||
Initial Cost Land | $ 130 | |||
Gross Amounts of Which Carried at End of Year Land | 130 | |||
Gross Amounts of Which Carried at End of Year Total | $ 130 | |||
Date Acquired | 03/04 | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | Willowick Land, Pensacola [Member] | FLORIDA | ||||
Initial Cost Land | $ 137 | |||
Gross Amounts of Which Carried at End of Year Land | 137 | |||
Gross Amounts of Which Carried at End of Year Total | $ 137 | |||
Date Acquired | 01/95 | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | Windmill Farms Land, Kaufman County [Member] | TEXAS | ||||
Date Acquired | 11/11 | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | Windmill Farms Land, Kaufman County [Member] | TEXAS | ||||
Encumbrances | $ 13,861 | |||
Initial Cost Land | 55,668 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 13,913 | |||
Asset Impairment | (20,343) | |||
Gross Amounts of Which Carried at End of Year Land | 55,668 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | (6,430) | |||
Gross Amounts of Which Carried at End of Year Total | 49,238 | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | T Palm Desert, Riverside [Member] | CANADA | ||||
Initial Cost Land | 1,800 | |||
Gross Amounts of Which Carried at End of Year Land | 1,800 | |||
Gross Amounts of Which Carried at End of Year Total | $ 1,800 | |||
Date Acquired | 9/19 | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | Lacy Longhorn Land, Farmers Branch [Member] | TEXAS | ||||
Date Acquired | 06/04 | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | Lacy Longhorn Land, Farmers Branch [Member] | TEXAS | ||||
Initial Cost Land | $ 1,169 | |||
Cost Capitalized Subsequent to Acquisition Improvements | (760) | |||
Gross Amounts of Which Carried at End of Year Land | 1,169 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | (760) | |||
Gross Amounts of Which Carried at End of Year Total | 409 | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | Minivest Land, Dallas [Member] | TEXAS | ||||
Initial Cost Land | 7 | |||
Gross Amounts of Which Carried at End of Year Land | 7 | |||
Gross Amounts of Which Carried at End of Year Total | $ 7 | |||
Date Acquired | 04/13 | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | Nicholson Croslin, Dallas [Member] | TEXAS | ||||
Date Acquired | 10/98 | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | Nicholson Croslin, Dallas [Member] | TEXAS | ||||
Initial Cost Land | $ 184 | |||
Cost Capitalized Subsequent to Acquisition Improvements | (118) | |||
Gross Amounts of Which Carried at End of Year Land | 184 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | (118) | |||
Gross Amounts of Which Carried at End of Year Total | $ 66 | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | Nicholson Mendoza, Dallas [Member] | TEXAS | ||||
Date Acquired | 10/98 | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | Nicholson Mendoza, Dallas [Member] | TEXAS | ||||
Initial Cost Land | $ 80 | |||
Cost Capitalized Subsequent to Acquisition Improvements | (51) | |||
Gross Amounts of Which Carried at End of Year Land | 80 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | (51) | |||
Gross Amounts of Which Carried at End of Year Total | 29 | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | Mercer Crossing, Farmers Branch [Member] | TEXAS | ||||
Initial Cost Land | 10,966 | |||
Asset Impairment | 10,966 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | $ 10,966 | |||
Date Acquired | 1/08 | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | McKinney 36, Collin County [Member] | TEXAS | ||||
Encumbrances | $ 945 | |||
Initial Cost Land | 635 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 161 | |||
Asset Impairment | (19) | |||
Gross Amounts of Which Carried at End of Year Land | 635 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | 142 | |||
Gross Amounts of Which Carried at End of Year Total | $ 777 | |||
Date Acquired | 01/98 | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | Travis Ranch Land, Kaufman County [Member] | TEXAS | ||||
Initial Cost Land | $ 80 | |||
Gross Amounts of Which Carried at End of Year Land | 80 | |||
Gross Amounts of Which Carried at End of Year Total | $ 80 | |||
Date Acquired | 08/08 | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | Dominion Mercer Phase II Farmers Branch [Member] | TEXAS | ||||
Initial Cost Land | $ 2,440 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 111 | |||
Asset Impairment | (135) | |||
Gross Amounts of Which Carried at End of Year Land | 2,440 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | (24) | |||
Gross Amounts of Which Carried at End of Year Total | $ 2,416 | |||
Date Acquired | 3/99 | |||
Properties Held for Investment/Corporate Debt [Member] | Land Held for Investment [Member] | ||||
Encumbrances | $ 14,806 | |||
Initial Cost Land | 76,843 | |||
Cost Capitalized Subsequent to Acquisition Improvements | 14,624 | |||
Asset Impairment | (21,464) | |||
Gross Amounts of Which Carried at End of Year Land | 76,843 | |||
Gross Amounts of Which Carried at End of Year Building & Improvements | (6,840) | |||
Gross Amounts of Which Carried at End of Year Total | $ 70,003 |
SCHEDULE III REAL ESTATE AND _3
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Real Estate | |||
Balance at at beginning | $ 463,732 | $ 1,165,662 | $ 1,066,603 |
Additions | |||
Acquisitions, improvements and construction | 92,964 | 175,996 | 129,483 |
Deductions | |||
Sale of real estate | (78,733) | (877,926) | (30,424) |
Balance at ending | 477,963 | 463,732 | 1,165,662 |
Reconciliation of Accumulated Depreciation | |||
Balance at at beginning | 79,228 | 177,546 | 165,597 |
Additions | |||
Depreciation | 13,379 | 22,761 | 25,558 |
Deductions | |||
Sale of real estate | (2,434) | (121,079) | (13,609) |
Balance at ending | $ 90,173 | $ 79,228 | $ 177,546 |
SCHEDULE IV MORTGAGE LOANS RE_2
SCHEDULE IV MORTGAGE LOANS RECEIVABLE (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Carrying Amount of Mortgage | $ 114,182 | |||
Accrued interest | 8,629 | |||
Allowance for estimated losses | (1,825) | |||
Notes and interest receivable | $ 120,986 | $ 83,541 | $ 70,166 | $ 81,133 |
Mortgage Loans [Member] | Prospectus Endeavors 4, LLC [Member] | ||||
Interest Rate | 12.00% | |||
Final Maturity Date | 2023-01 | |||
Periodic Payment Terms | Excess cash flow | |||
Face Amount of Mortgage | $ 5,907 | |||
Carrying Amount of Mortgage | $ 5,907 | |||
Mortgage Loans [Member] | Prospectus Endeavors 6, LLC [Member] | ||||
Interest Rate | 12.00% | |||
Final Maturity Date | 2022-10 | |||
Periodic Payment Terms | Excess cash flow | |||
Face Amount of Mortgage | $ 496 | |||
Carrying Amount of Mortgage | $ 496 | |||
Mortgage Loans [Member] | Oulan-Chikh Family Trust [Member] | ||||
Interest Rate | 8.00% | |||
Final Maturity Date | 2021-03 | |||
Periodic Payment Terms | Excess cash flow | |||
Face Amount of Mortgage | $ 174 | |||
Carrying Amount of Mortgage | $ 174 | |||
Mortgage Loans [Member] | H198, LLC McKinney Ranch Land [Member] | ||||
Interest Rate | 6.00% | |||
Final Maturity Date | 2020-09 | |||
Periodic Payment Terms | Excess cash flow | |||
Face Amount of Mortgage | $ 4,554 | |||
Carrying Amount of Mortgage | $ 4,554 | |||
Mortgage Loans [Member] | Forest Pines [Member] | ||||
Interest Rate | 5.00% | |||
Final Maturity Date | 2020-11 | |||
Periodic Payment Terms | Excess cash flow | |||
Carrying Amount of Mortgage | $ 2,868 | |||
Mortgage Loans [Member] | Spyglass Apartments of Ennis, LP [Member] | ||||
Interest Rate | 5.00% | |||
Final Maturity Date | 2020-11 | |||
Periodic Payment Terms | Excess cash flow | |||
Face Amount of Mortgage | $ 5,083 | |||
Carrying Amount of Mortgage | $ 5,288 | |||
Mortgage Loans [Member] | Bellwether Ridge [Member] | ||||
Interest Rate | 5.00% | |||
Final Maturity Date | 2020-05 | |||
Periodic Payment Terms | Excess cash flow | |||
Face Amount of Mortgage | $ 3,429 | |||
Carrying Amount of Mortgage | $ 3,765 | |||
Mortgage Loans [Member] | Parc at Windmill Farms [Member] | ||||
Interest Rate | 5.00% | |||
Final Maturity Date | 2020-05 | |||
Periodic Payment Terms | Excess cash flow | |||
Face Amount of Mortgage | $ 6,066 | |||
Carrying Amount of Mortgage | $ 7,602 | |||
Mortgage Loans [Member] | RAI PFBL 2018 Purch Fee Note Weatherford [Member] | ||||
Interest Rate | 12.00% | |||
Final Maturity Date | 2021-12 | |||
Periodic Payment Terms | Excess cash flow | |||
Carrying Amount of Mortgage | $ 525 | |||
Mortgage Loans [Member] | Unified Housing Foundation, Inc. (Echo Station) [Member] | ||||
Security | 100% Interest in UH of Temple, LLC | |||
Interest Rate | 12.00% | |||
Final Maturity Date | 2032-12 | |||
Periodic Payment Terms | Excess cash flow | |||
Prior Liens | $ 9,719 | |||
Face Amount of Mortgage | 2,794 | |||
Carrying Amount of Mortgage | $ 1,481 | |||
Mortgage Loans [Member] | Unified Housing Foundation, Inc. (Lakeshore Villas/HFS of Humble, LLC) [Member] | ||||
Security | 100% Interest in HFS of Humble, LLC | |||
Interest Rate | 12.00% | |||
Final Maturity Date | 2032-12 | |||
Periodic Payment Terms | Excess cash flow | |||
Prior Liens | $ 15,965 | |||
Face Amount of Mortgage | 2,959 | |||
Carrying Amount of Mortgage | $ 2,000 | |||
Mortgage Loans [Member] | Unified Housing Foundation, Inc. (Lakeshore Villas/HFS of Humble, LLC) [Member] | ||||
Security | Interest in Unified Housing Foundation Inc. | |||
% of Cash Flow | 31.50% | |||
Interest Rate | 12.00% | |||
Final Maturity Date | 2032-12 | |||
Periodic Payment Terms | Excess cash flow | |||
Prior Liens | $ 15,756 | |||
Face Amount of Mortgage | 8,836 | |||
Carrying Amount of Mortgage | $ 6,369 | |||
Mortgage Loans [Member] | Unified Housing Foundation, Inc. (Limestone Ranch/UH of Vista Ridge,LLC) [Member] | ||||
Interest Rate | 12.00% | |||
Final Maturity Date | 2032-12 | |||
Periodic Payment Terms | Excess cash flow | |||
Carrying Amount of Mortgage | $ 1,953 | |||
Mortgage Loans [Member] | Unified Housing Foundation, Inc. (Limestone Ranch/UH of Vista Ridge,LLC) [Member] | ||||
Interest Rate | 12.00% | |||
Final Maturity Date | 2032-12 | |||
Periodic Payment Terms | Excess cash flow | |||
Carrying Amount of Mortgage | $ 2,000 | |||
Mortgage Loans [Member] | Unified Housing Foundation, Inc. (Limestone Ranch/UH of Vista Ridge,LLC) [Member] | ||||
Interest Rate | 12.00% | |||
Final Maturity Date | 2032-12 | |||
Periodic Payment Terms | Excess cash flow | |||
Carrying Amount of Mortgage | $ 4,000 | |||
Mortgage Loans [Member] | Unified Housing Foundation, Inc. (Timbers of Terrell) [Member] | ||||
Security | 100% Interest in UH of Terrell, LLC | |||
Interest Rate | 12.00% | |||
Final Maturity Date | 2032-12 | |||
Periodic Payment Terms | Excess cash flow | |||
Prior Liens | $ 7,294 | |||
Face Amount of Mortgage | 1,702 | |||
Carrying Amount of Mortgage | $ 1,323 | |||
Mortgage Loans [Member] | Unified Housing Foundation, Inc (2015 Advisory Fee) [Member] | ||||
Interest Rate | 12.00% | |||
Final Maturity Date | 2021-12 | |||
Periodic Payment Terms | Excess cash flow | |||
Carrying Amount of Mortgage | $ 3,994 | |||
Mortgage Loans [Member] | Unified Housing Foundation, Inc (2008-2014 Advisory Fee) [Member] | ||||
Interest Rate | 12.00% | |||
Final Maturity Date | 2021-12 | |||
Periodic Payment Terms | Excess cash flow | |||
Carrying Amount of Mortgage | $ 6,407 | |||
Mortgage Loans [Member] | Unified Housing Foundation, Inc (2018 Advisory Fee) [Member] | ||||
Interest Rate | 12.00% | |||
Final Maturity Date | 2020-06 | |||
Periodic Payment Terms | Excess cash flow | |||
Carrying Amount of Mortgage | $ 5,314 | |||
Mortgage Loans [Member] | Unified Housing Foundation, Inc [Member] | ||||
Security | RAI UHF 2019 Advisory Fee Note | |||
Interest Rate | 12.00% | |||
Final Maturity Date | 2022-03 | |||
Periodic Payment Terms | Excess cash flow | |||
Carrying Amount of Mortgage | $ 4,782 | |||
Mortgage Loans [Member] | Unified Housing Foundation, Inc [Member] | ||||
Security | 2018 Refin Fee (Lakeshore Villas) | |||
Interest Rate | 12.00% | |||
Final Maturity Date | 2021-07 | |||
Periodic Payment Terms | Excess cash flow | |||
Carrying Amount of Mortgage | $ 838 | |||
Mortgage Loans [Member] | Unified Housing Foundation, Inc [Member] | ||||
Security | 2018 Refin Fee (Limestone Ranch) | |||
Interest Rate | 12.00% | |||
Final Maturity Date | 2021-07 | |||
Periodic Payment Terms | Excess cash flow | |||
Carrying Amount of Mortgage | $ 773 | |||
Mortgage Loans [Member] | Unified Housing Foundation, Inc [Member] | ||||
Security | 2018 Refin Fee (Marquis @ Vista Ridge) | |||
Interest Rate | 12.00% | |||
Final Maturity Date | 2021-07 | |||
Periodic Payment Terms | Excess cash flow | |||
Carrying Amount of Mortgage | $ 839 | |||
Mortgage Loans [Member] | Unified Housing Foundation, Inc [Member] | ||||
Security | 2018 Refin Fee (Timbers at the Park) | |||
Interest Rate | 12.00% | |||
Final Maturity Date | 2021-07 | |||
Periodic Payment Terms | Excess cash flow | |||
Carrying Amount of Mortgage | $ 432 | |||
Mortgage Loans [Member] | Unified Housing Foundation, Inc [Member] | ||||
Security | 2018 Refin Fee (Trails @ White Rock) | |||
Interest Rate | 12.00% | |||
Final Maturity Date | 2021-07 | |||
Periodic Payment Terms | Excess cash flow | |||
Carrying Amount of Mortgage | $ 913 | |||
Mortgage Loans [Member] | Unified Housing Foundation, Inc [Member] | ||||
Security | 2018 Refin Fee (Bella Vista) | |||
Interest Rate | 12.00% | |||
Final Maturity Date | 2021-08 | |||
Periodic Payment Terms | Excess cash flow | |||
Carrying Amount of Mortgage | $ 212 | |||
Mortgage Loans [Member] | Unified Housing Foundation, Inc [Member] | ||||
Security | 2017 Fees on Sale LSC/SR/PKCR | |||
Interest Rate | 12.00% | |||
Final Maturity Date | 2021-10 | |||
Periodic Payment Terms | Excess cash flow | |||
Carrying Amount of Mortgage | $ 1,980 | |||
Mortgage Loans [Member] | Unified Housing Foundation, Inc [Member] | ||||
Security | 2017 Fees on Profit LSC/SR/PKCR | |||
Interest Rate | 12.00% | |||
Final Maturity Date | 2021-10 | |||
Periodic Payment Terms | Excess cash flow | |||
Carrying Amount of Mortgage | $ 4,851 | |||
Mortgage Loans [Member] | Various Related Party Notes [Member] | ||||
Periodic Payment Terms | Excess cash flow | |||
Carrying Amount of Mortgage | $ 3,553 | |||
Mortgage Loans [Member] | Various Non-Related Party Notes [Member] | ||||
Periodic Payment Terms | Excess cash flow | |||
Carrying Amount of Mortgage | $ 28,989 |
SCHEDULE IV MORTGAGE LOANS RE_3
SCHEDULE IV MORTGAGE LOANS RECEIVABLE (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Balance at beginning | $ 83,541 | $ 70,166 | $ 81,133 |
Additions | |||
New mortgage loans | 49,671 | 13,123 | 16,422 |
Increase (decrease) of interest receivable on mortgage loans | 9,576 | 6,329 | 668 |
Deductions | |||
Amounts received | (21,589) | (6,077) | (26,230) |
Non-cash reductions | (213) | (1,827) | |
Balance at ending | $ 120,986 | $ 83,541 | $ 70,166 |