Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 12, 2020 | Jun. 30, 2019 | |
Document and Entity Information | |||
Entity Registrant Name | CIM Commercial Trust Corp | ||
Entity Central Index Key | 0000908311 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Interactive Data Current | Yes | ||
Entity Public Float | $ 81.4 | ||
Entity Common Stock, Shares Outstanding | 14,602,149 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Investments in real estate, net | $ 508,707 | $ 1,040,937 | |
Cash and cash equivalents | 23,801 | 54,659 | |
Restricted cash | 12,146 | 22,512 | |
Loans receivable, net | 68,079 | 83,248 | |
Accounts receivable, net | 3,520 | 6,640 | |
Deferred rent receivable and charges, net | 34,857 | 84,230 | |
Other intangible assets, net | 7,260 | 9,531 | |
Other assets | 9,222 | 18,469 | |
Assets held for sale, net (Note 3) | 0 | 22,175 | |
TOTAL ASSETS | 667,592 | 1,342,401 | |
LIABILITIES: | |||
Debt, net | 307,421 | 588,671 | |
Accounts payable and accrued expenses | 24,309 | 41,598 | |
Intangible liabilities, net | 1,282 | 2,872 | |
Due to related parties | 9,431 | 10,951 | |
Other liabilities | 10,113 | 16,535 | |
Liabilities associated with assets held for sale, net (Note 3) | 0 | 28,766 | |
Total liabilities | 352,556 | 689,393 | |
COMMITMENTS AND CONTINGENCIES (Note 15) | |||
EQUITY: | |||
Common stock, $0.001 and $0.003 par value at December 31, 2019 and 2018, respectively; 900,000,000 shares authorized; 14,602,149 and 14,598,357 shares issued and outstanding at December 31, 2019 and 2018, respectively (1) | [1] | 15 | 44 |
Additional paid-in capital | 794,825 | 790,354 | |
Accumulated other comprehensive income | 0 | 1,806 | |
Distributions in excess of earnings | (740,617) | (436,883) | |
Total stockholders' equity | 277,690 | 616,438 | |
Noncontrolling interests | 505 | 837 | |
Total equity | 278,195 | 617,275 | |
TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK, AND EQUITY | 667,592 | 1,342,401 | |
Series A Preferred Stock | |||
LIABILITIES: | |||
REDEEMABLE PREFERRED STOCK: Series A, $0.001 par value; 36,000,000 shares authorized; 1,630,821 and 1,630,421 shares issued and outstanding, respectively, at December 31, 2019 and 1,566,386 and 1,565,346 shares issued and outstanding, respectively, at December 31, 2018; liquidation preference of $25.00 per share, subject to adjustment | 36,841 | 35,733 | |
Series A Cumulative Preferred Stock | |||
EQUITY: | |||
Preferred stock | 70,633 | 31,866 | |
Series L Preferred Stock | |||
EQUITY: | |||
Preferred stock | $ 152,834 | $ 229,251 | |
[1] | All share and per share amounts have been adjusted to give retroactive effect to the one-for-three reverse stock split of our common stock effected on September 3, 2019. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares |
Common stock, par value (in usd per share) | $ / shares | $ 0.001 | $ 0.003 |
Common stock, authorized shares (in shares) | 900,000,000 | 900,000,000 |
Common stock, issued shares (in shares) | 14,602,149 | 14,598,357 |
Common stock, outstanding shares (in shares) | 14,602,149 | 14,598,357 |
Series A Preferred Stock | ||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 36,000,000 | 36,000,000 |
Preferred stock, shares issued (in shares) | 1,630,821 | 1,566,386 |
Preferred stock, shares outstanding (in shares) | 1,630,421 | 1,565,346 |
Preferred stock, liquidation preference per share (in usd per share) | $ / shares | $ 25 | $ 25 |
Series A Cumulative Preferred Stock | ||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 36,000,000 | 36,000,000 |
Preferred stock, shares issued (in shares) | 2,853,555 | 1,287,169 |
Preferred stock, shares outstanding (in shares) | 2,837,094 | 1,281,804 |
Preferred stock, liquidation preference per share (in usd per share) | $ / shares | $ 25 | $ 25 |
Series L Preferred Stock | ||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 9,000,000 | 9,000,000 |
Preferred stock, shares issued (in shares) | 8,080,740 | 8,080,740 |
Preferred stock, shares outstanding (in shares) | 5,387,160 | 8,080,740 |
Preferred stock, liquidation preference per share (in usd per share) | $ / shares | $ 28.37 | $ 23.87 |
Consolidated Statements of Oper
Consolidated Statements of Operations shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | ||
REVENUES: | ||||
Rental and other property income | $ 88,331 | $ 147,095 | $ 175,534 | |
Hotel income | 35,633 | 35,672 | 35,576 | |
Interest and other income | 16,025 | 14,703 | 24,949 | |
REVENUES | 139,989 | 197,470 | 236,059 | |
EXPENSES: | ||||
Rental and other property operating | 62,928 | 79,917 | 101,268 | |
Asset management and other fees to related parties | 18,303 | 24,451 | 30,251 | |
Interest | 12,175 | 26,894 | 34,484 | |
General and administrative | 6,354 | 9,167 | 5,479 | |
Transaction costs (Note 15) | 574 | 938 | 11,862 | |
Depreciation and amortization | 27,374 | 53,228 | 58,364 | |
Loss on early extinguishment of debt (Note 7) | 29,982 | 808 | 8,215 | |
Impairment of real estate (Note 2) | 69,000 | 0 | 13,100 | |
EXPENSES | 226,690 | 195,403 | 263,023 | |
Gain on sale of real estate (Note 3) | 433,104 | 0 | 408,098 | |
INCOME BEFORE PROVISION FOR INCOME TAXES | 346,403 | 2,067 | 381,134 | |
Provision for income taxes | 882 | 925 | 1,376 | |
NET INCOME | 345,521 | 1,142 | 379,758 | |
Net loss (income) attributable to noncontrolling interests | 152 | (21) | (21) | |
NET INCOME ATTRIBUTABLE TO THE COMPANY | 345,673 | 1,121 | 379,737 | |
Redeemable preferred stock dividends declared or accumulated (Note 10) | (17,095) | (15,423) | (1,926) | |
Redeemable preferred stock redemptions (Note 10) | (5,882) | |||
Redeemable preferred stock redemptions (Note 10) | 4 | 2 | ||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 322,696 | $ (14,298) | $ 377,813 | |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS PER SHARE | ||||
Basic (in usd per share) | $ / shares | [1] | $ 22.11 | $ (0.98) | $ 16.41 |
Diluted (in usd per share) | $ / shares | [1] | $ 19.74 | $ (0.98) | $ 16.41 |
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING | ||||
Basic (in shares) | shares | [1] | 14,598 | 14,597 | 23,021 |
Diluted (in shares) | shares | [1] | 16,493 | 14,597 | 23,023 |
[1] | All share and per share amounts have been adjusted to give retroactive effect to the one-for-three reverse stock split of our common stock effected on September 3, 2019. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 345,521 | $ 1,142 | $ 379,758 |
Other comprehensive (loss) income: cash flow hedges | (1,806) | ||
Other comprehensive (loss) income: cash flow hedges | 175 | 2,140 | |
COMPREHENSIVE INCOME | 343,715 | 1,317 | 381,898 |
Comprehensive loss (income) attributable to noncontrolling interests | 152 | (21) | (21) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY | $ 343,867 | $ 1,296 | $ 381,877 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Distributions In Excess of Earnings | Noncontrolling Interests | Series A Preferred Stock | Series A Preferred StockPreferred Stock | Series A Preferred StockDistributions In Excess of Earnings | Series L Preferred Stock | Series L Preferred StockPreferred Stock | Series L Preferred StockAdditional Paid-in Capital | Series L Preferred StockDistributions In Excess of Earnings | ||
Balance (in shares) at Dec. 31, 2016 | 28,016,025 | [1] | 0 | 0 | |||||||||||
Beginning balance at Dec. 31, 2016 | $ 966,589 | $ 84 | [1] | $ 1,566,073 | $ (509) | $ (599,971) | $ 912 | $ 0 | $ 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Distributions to noncontrolling interests | (43) | (43) | |||||||||||||
Stock based compensation expense (in shares) | [1] | 3,195 | |||||||||||||
Stock-based compensation expense | 154 | 154 | |||||||||||||
Share repurchases (in shares) | [1] | (13,424,241) | |||||||||||||
Share repurchases | (886,010) | $ (40) | [1] | (752,218) | (133,752) | ||||||||||
Special cash dividends declared to certain common stockholders | [1] | (6,447) | (6,447) | ||||||||||||
Common dividends | [1] | (38,327) | (38,327) | ||||||||||||
Issuance of Series A Preferred Warrants | 126 | 126 | |||||||||||||
Issuance of Series L Preferred Stock (in shares) | 8,080,740 | ||||||||||||||
Issuance of Series L Preferred Stock | $ 207,845 | $ 229,251 | $ (21,406) | ||||||||||||
Dividends to holders of Series Preferred Stock | (490) | (490) | |||||||||||||
Reclassification of Series A to permanent equity (in shares) | 61,013 | ||||||||||||||
Reclassification of Series A Preferred Stock to permanent equity | 1,417 | (101) | $ 1,518 | ||||||||||||
Redemption of Series A Preferred Stock (in shares) | (421) | ||||||||||||||
Redemption of Series A Preferred Stock | (7) | 3 | $ (10) | ||||||||||||
Other comprehensive income | 2,140 | 2,140 | |||||||||||||
Net income (loss) | 379,758 | 379,737 | 21 | ||||||||||||
Balance (in shares) at Dec. 31, 2017 | 14,594,979 | [1] | 60,592 | 8,080,740 | |||||||||||
Ending balance at Dec. 31, 2017 | 626,705 | $ 44 | [1] | 792,631 | 1,631 | (399,250) | 890 | $ 1,508 | $ 229,251 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Distributions to noncontrolling interests | (74) | (74) | |||||||||||||
Stock based compensation expense (in shares) | [1] | 3,378 | |||||||||||||
Stock-based compensation expense | 162 | 162 | |||||||||||||
Common dividends | [1] | (21,895) | (21,895) | ||||||||||||
Issuance of Series A Preferred Warrants | 73 | 73 | |||||||||||||
Dividends to holders of Series Preferred Stock | $ (2,814) | $ (2,814) | (14,045) | $ (14,045) | |||||||||||
Reclassification of Series A to permanent equity (in shares) | 1,223,032 | ||||||||||||||
Reclassification of Series A Preferred Stock to permanent equity | 27,887 | (2,516) | $ 30,403 | ||||||||||||
Redemption of Series A Preferred Stock (in shares) | (1,820) | ||||||||||||||
Redemption of Series A Preferred Stock | (41) | 4 | $ (45) | ||||||||||||
Other comprehensive income | 175 | 175 | |||||||||||||
Net income (loss) | 1,142 | 1,121 | 21 | ||||||||||||
Balance (in shares) at Dec. 31, 2018 | 14,598,357 | [1] | 1,281,804 | 8,080,740 | |||||||||||
Ending balance at Dec. 31, 2018 | 617,275 | $ 44 | [1] | 790,354 | 1,806 | (436,883) | 837 | $ 31,866 | $ 229,251 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Contributions to noncontrolling interests | 455 | 455 | |||||||||||||
Distributions to noncontrolling interests | (522) | (522) | |||||||||||||
Extinguishment of noncontrolling interests | (113) | (113) | |||||||||||||
Stock based compensation expense (in shares) | [1] | 3,880 | |||||||||||||
Stock-based compensation expense | 194 | 194 | |||||||||||||
Retirement of fractional shares (in shares) | [1] | (88) | |||||||||||||
Retirement of fractional shares | (1) | (1) | |||||||||||||
Change in par value | 0 | $ (29) | [1] | 29 | |||||||||||
Special cash dividends declared to certain common stockholders | (613,294) | (613,294) | |||||||||||||
Common dividends | [1] | (13,140) | (13,140) | ||||||||||||
Issuance of Series A Preferred Warrants | 382 | 382 | |||||||||||||
Dividends to holders of Series Preferred Stock | $ (4,945) | $ (4,945) | (12,150) | (12,150) | |||||||||||
Repurchase of Series L Preferred Stock (in shares) | (2,693,580) | ||||||||||||||
Repurchase of Series L Preferred Stock | $ (75,155) | $ (76,417) | $ 7,135 | $ (5,873) | |||||||||||
Reclassification of Series A to permanent equity (in shares) | 1,561,746 | ||||||||||||||
Reclassification of Series A Preferred Stock to permanent equity | 35,649 | (3,278) | $ 38,927 | ||||||||||||
Redemption of Series A Preferred Stock (in shares) | (6,456) | ||||||||||||||
Redemption of Series A Preferred Stock | (155) | 10 | (5) | $ (160) | |||||||||||
Other comprehensive income | (1,806) | (1,806) | |||||||||||||
Net income (loss) | 345,521 | 345,673 | (152) | ||||||||||||
Balance (in shares) at Dec. 31, 2019 | 14,602,149 | [1] | 2,837,094 | 5,387,160 | |||||||||||
Ending balance at Dec. 31, 2019 | $ 278,195 | $ 15 | [1] | $ 794,825 | $ 0 | $ (740,617) | $ 505 | $ 70,633 | $ 152,834 | ||||||
[1] | All share and per share amounts have been adjusted to give retroactive effect to the one-for-three reverse stock split of our common stock effected on September 3, 2019. |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) | Sep. 03, 2019 | Dec. 31, 2019$ / shares | Dec. 31, 2018$ / shares | Dec. 31, 2017$ / shares |
Common dividends, per share amount (in usd per share) | $ 0.900 | $ 1.500 | $ 1.782 | |
Reverse stock split ratio, common stock | 0.3333 | |||
Series A Preferred Stock | ||||
Preferred dividends, per share amount (in usd per share) | 1.375 | 1.375 | 1.375 | |
Series L Preferred Stock | ||||
Preferred dividends, per share amount (in usd per share) | 1.560 | $ 1.738 | ||
Special Dividend | ||||
Common dividends, per share amount (in usd per share) | $ 42 | $ 8.970 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 345,521 | $ 1,142 | $ 379,758 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Deferred rent and amortization of intangible assets, liabilities and lease inducements | (2,727) | (3,636) | (2,172) |
Depreciation and amortization | 27,374 | 53,228 | 58,364 |
Reclassification from AOCI to interest expense | (1,806) | (1,552) | 0 |
Reclassification from other assets to interest expense for swap termination | 1,421 | 0 | 0 |
Change in fair value of swaps | 209 | 1,728 | 0 |
Change in fair value of swaps | 1,728 | ||
Transfer of right to collect supplemental real estate tax reimbursements | 0 | 0 | (5,097) |
Gain on sale of real estate | (433,104) | 0 | (408,098) |
Impairment of real estate | 69,000 | 0 | 13,100 |
Loss on early extinguishment of debt | 29,982 | 808 | 8,215 |
Straight-line rent, below-market ground lease and amortization of intangible assets | 0 | (18) | 1,069 |
Straight-line lease termination income | 0 | 0 | (362) |
Amortization of deferred loan costs | 1,133 | 896 | 1,016 |
Amortization of premiums and discounts on debt | (227) | (444) | (590) |
Unrealized premium adjustment | 1,697 | 2,522 | 2,447 |
Amortization and accretion on loans receivable, net | (501) | (41) | 96 |
Bad debt expense | 40 | 494 | 677 |
Deferred income taxes | (81) | (3) | 271 |
Stock-based compensation | 194 | 162 | 154 |
Loans funded, held for sale to secondary market | (29,694) | (55,655) | (57,237) |
Proceeds from sale of guaranteed loans | 40,033 | 54,142 | 51,312 |
Principal collected on loans subject to secured borrowings | 3,613 | 5,698 | 6,674 |
Other operating activity | (822) | (1,587) | (1,718) |
Changes in operating assets and liabilities: | |||
Accounts receivable and interest receivable | 3,197 | 6,692 | (977) |
Other assets | 2,980 | (1,421) | (21,341) |
Accounts payable and accrued expenses | (6,326) | (365) | (14,139) |
Deferred leasing costs | (1,695) | (5,773) | (6,973) |
Other liabilities | (6,825) | 2,221 | (5,589) |
Due to related parties | (1,601) | 2,218 | (1,584) |
Net cash provided by (used in) operating activities | 40,985 | 61,456 | (2,724) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Additions to investments in real estate | (24,600) | (12,055) | (21,101) |
Acquisition of real estate | 0 | (112,048) | (19,631) |
Proceeds from sale of real estate, net | 941,032 | 0 | 1,018,476 |
Loans funded | (9,898) | (18,579) | (19,079) |
Principal collected on loans | 10,273 | 10,770 | 10,883 |
Other investing activity | 386 | 178 | 317 |
Net cash provided by (used in) investing activities | 917,193 | (131,734) | 969,865 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payment of unsecured revolving lines of credit, revolving credit facilities and term notes | (135,500) | (220,000) | (335,000) |
Proceeds from unsecured revolving lines of credit, revolving credit facilities and term notes | 158,500 | 180,000 | 120,000 |
Payment of mortgages payable | (46,000) | 0 | (65,877) |
Investments in marketable securities in connection with the legal defeasance of mortgages payable | (268,194) | 0 | 0 |
Prepayment penalties and other payments for early extinguishment of debt | (5,660) | 0 | (6,361) |
Payment of principal on SBA 7(a) loan-backed notes | (11,487) | (4,431) | 0 |
Proceeds from SBA 7(a) loan-backed notes | 0 | 38,200 | 0 |
Payment of principal on secured borrowings | (3,613) | (5,698) | (6,674) |
Proceeds from secured borrowings | 0 | 772 | 0 |
Payment of deferred preferred stock offering costs | (1,320) | (1,136) | (3,832) |
Payment of deferred loan costs | (34) | (4,234) | (304) |
Payment of other deferred costs | (389) | (235) | 0 |
Payment of common dividends | (13,140) | (21,895) | (38,327) |
Payment of special cash dividends | (613,294) | (1,575) | (4,872) |
Repurchase of Common Stock | 0 | 0 | (886,010) |
Payment of borrowing costs | 0 | 0 | (8) |
Net proceeds from issuance of Series A Preferred Warrants | 385 | 73 | 127 |
Payment of preferred stock dividends | (22,157) | (2,173) | (250) |
Retirement of fractional shares of Common Stock | (1) | 0 | 0 |
Noncontrolling interests' distributions | (522) | (74) | (43) |
Noncontrolling interests' contributions | 455 | 0 | 0 |
Net cash used in financing activities | (1,000,157) | (6,535) | (989,011) |
Change in cash balances included in assets held for sale | 755 | (755) | 0 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (41,224) | (77,568) | (21,870) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: | |||
Beginning of period | 77,171 | 154,739 | 176,609 |
End of period | 35,947 | 77,171 | 154,739 |
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEETS: | |||
Total cash and cash equivalents and restricted cash | 35,947 | 77,171 | 154,739 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash paid during the period for interest | 13,674 | 27,473 | 35,092 |
Federal income taxes paid | 1,000 | 622 | 1,595 |
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES: | |||
Additions to investments in real estate included in accounts payable and accrued expenses | 5,663 | 11,875 | 9,024 |
Net increase in fair value of derivatives applied to other comprehensive income | 0 | 1,727 | 2,140 |
Reduction of loans receivable and secured borrowings due to the SBA's repurchase of the guaranteed portion of loans | 0 | 0 | 534 |
Additions to deferred loan costs included in accounts payable and accrued expenses | 0 | 32 | 0 |
Additions to deferred costs included in accounts payable and accrued expenses | 35 | 174 | 0 |
Additions to preferred stock offering costs included in accounts payable and accrued expenses | 264 | 172 | 388 |
Accrual of dividends payable to preferred stockholders | 9,873 | 14,935 | 249 |
Preferred stock offering costs offset against redeemable preferred stock in temporary equity | 347 | 229 | 122 |
Preferred stock offering costs offset against redeemable preferred stock in permanent equity | 3 | 0 | 2,532 |
Reclassification of Series A Preferred Stock from temporary equity to permanent equity | 35,649 | 27,887 | 1,417 |
Reclassification of loans receivable, net to real estate owned | 243 | 0 | 0 |
Reclassification of Series A Preferred Stock from temporary equity to accounts payable and accrued expenses | 0 | 0 | 13 |
Reclassification of Series A Preferred Stock from permanent equity to accounts payable and accrued expenses | 20 | 0 | 0 |
Accrual of special cash dividends | 0 | 0 | 1,575 |
Accrual reversed to lease termination income | 0 | 0 | 480 |
Payable to related parties included in net proceeds from disposition of real estate | 0 | 0 | 202 |
Establishment of right-of-use asset and lease liability | 362 | 0 | 0 |
Marketable securities transferred in connection with the legal defeasance of mortgages payable | 268,194 | 0 | 0 |
Mortgage notes payable legally defeased | 245,000 | 0 | 0 |
Mortgage note assumed in connection with our sale of real estate | 28,200 | 0 | 0 |
Series A Preferred Stock | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net proceeds from issuance of Preferred Stock | 37,197 | 35,984 | 28,070 |
Redemption of Series A Preferred Stock | (228) | (113) | (27) |
Series L Preferred Stock | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net proceeds from issuance of Preferred Stock | 0 | 0 | 210,377 |
Redemption of Series A Preferred Stock | $ (75,155) | $ 0 | $ 0 |
ORGANIZATION AND OPERATIONS
ORGANIZATION AND OPERATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND OPERATIONS | ORGANIZATION AND OPERATIONS CIM Commercial Trust Corporation ("CIM Commercial" or the "Company"), a Maryland corporation and real estate investment trust ("REIT"), together with its wholly-owned subsidiaries ("we," "us" or "our") primarily acquires, owns, and operates Class A and creative office assets in vibrant and improving metropolitan communities throughout the United States (including improving and developing such assets). These communities are located in areas that include traditional downtown areas and suburban main streets, which have high barriers to entry, high population density, positive population trends and a propensity for growth. We were originally organized in 1993 as PMC Commercial Trust ("PMC Commercial"), a Texas real estate investment trust. On July 8, 2013, PMC Commercial entered into a merger agreement with CIM Urban REIT, LLC ("CIM REIT"), an affiliate of CIM Group, L.P. ("CIM Group" or "CIM"), and subsidiaries of the respective parties. CIM REIT was a private commercial REIT and was the owner of CIM Urban Partners, L.P. ("CIM Urban"). The merger was completed on March 11, 2014 (the "Acquisition Date"). Our common stock, $0.001 par value per share ("Common Stock"), is currently traded on the Nasdaq Global Market ("Nasdaq") under the ticker symbol "CMCT", and on the Tel Aviv Stock Exchange (the "TASE") under the ticker symbol "CMCT-L." Our Series L preferred stock, $0.001 par value per share ("Series L Preferred Stock"), is currently traded on Nasdaq and on the TASE, in each case under the ticker symbol "CMCTP." We have authorized for issuance 900,000,000 shares of common stock and 100,000,000 shares of preferred stock ("Preferred Stock"). We filed Articles of Amendment (the "Reverse Stock Split Amendment") to effectuate a one-for-three reverse stock split of our Common Stock, effective on September 3, 2019 (the "Reverse Stock Split"). Pursuant to the Reverse Stock Split Amendment, every three shares of Common Stock issued and outstanding immediately prior to the effective time of the Reverse Stock Split were converted into one share of Common Stock, par value $0.003 per share. In connection with the Reverse Split Amendment, the Company filed Articles of Amendment to revert the par value of the Common Stock issued and outstanding from $0.003 per share to $0.001 per share, effective as of September 3, 2019, following the effective time of the Reverse Split Amendment. All Common Stock and per share of Common Stock amounts set forth in this Annual Report on Form 10-K have been adjusted to give retroactive effect to the Reverse Stock Split, unless otherwise stated. CIM Commercial has qualified and intends to continue to qualify as a REIT, as defined in the Internal Revenue Code of 1986, as amended (the "Code"). On March 16, 2020 , the Company established an “at the market” (“ATM”) program through which it may, from time to time in its discretion, offer and sell shares of Common Stock having an aggregate offering price of up to $25,000,000 through an investment banking firm acting as the sales agent. Sales of Common Stock under the ATM program may be made directly on or through Nasdaq, among other methods. The Company intends to use the net proceeds from shares sold under the ATM program, if any, for general corporate purposes, acquisitions of shares of our preferred stock, whether through one or more tender offers, share repurchases or otherwise, and acquisitions consistent with our acquisition and asset management strategies. As of March 16, 2020 , no sales of Common Stock have been made under the ATM program. |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation —The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). Principles of Consolidation —The consolidated financial statements include the accounts of CIM Commercial and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Investments in Real Estate —Real estate acquisitions are recorded at cost as of the acquisition date. Costs related to the acquisition of properties were expensed as incurred for acquisitions that occurred prior to October 1, 2017. For any acquisition occurring on or after October 1, 2017, we have conducted and will conduct an analysis to determine if the acquisition constitutes a business combination or an asset purchase. If the acquisition constitutes a business combination, then the transaction costs will be expensed as incurred, and if the acquisition constitutes an asset purchase, then the transaction costs will be capitalized. Investments in real estate are stated at depreciated cost. Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives as follows: Buildings and improvements 15 - 40 years Furniture, fixtures, and equipment 3 - 5 years Tenant improvements Shorter of the useful lives or the terms of the related leases We capitalize project costs, including pre-construction costs, interest expense, property taxes, insurance, and other costs directly related and essential to the development, redevelopment, or construction of a project, while activities are ongoing to prepare an asset for its intended use. Costs incurred after a project is substantially complete and ready for its intended use are expensed as incurred. Improvements and replacements are capitalized when they extend the useful life, increase capacity, or improve the efficiency of the asset. Ordinary repairs and maintenance are expensed as incurred. Investments in real estate are evaluated for impairment on a quarterly basis or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount to the future net cash flows, undiscounted and without interest, expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. The estimated fair value of the asset group identified for step two of the impairment testing under GAAP is based on either the income approach with market discount rate, terminal capitalization rate and rental rate assumptions being most critical to such analysis, or on the sales comparison approach to similar properties. Assets held for sale are reported at the lower of the asset's carrying amount or fair value, less costs to sell. We recognized impairment of long-lived assets of $69,000,000 , $0 and $13,100,000 during the years ended December 31, 2019 , 2018 and 2017 , respectively (Note 3). Cash and Cash Equivalents —Cash and cash equivalents include short-term liquid investments with initial maturities of three months or less. Restricted Cash —Our mortgage loan and hotel management agreements provide for depositing cash into restricted accounts reserved for capital expenditures, free rent, tenant improvement and leasing commission obligations. Restricted cash also includes cash required to be segregated in connection with certain of our loans receivable. Loans Receivable —Our loans receivable are carried at their unamortized principal balance less unamortized acquisition discounts and premiums, retained loan discounts and loan loss reserves. For loans originated under the Small Business Administration's ("SBA") 7(a) Guaranteed Loan Program ("SBA 7(a) Program"), we sell the portion of the loan that is guaranteed by the SBA. Upon sale of the SBA guaranteed portion of the loans, which are accounted for as sales, the unguaranteed portion of the loan retained by us is valued on a fair value basis and a discount (the "Retained Loan Discount") is recorded as a reduction in basis of the retained portion of the loan. Unamortized retained loan discounts were $7,631,000 and $7,234,000 as of December 31, 2019 and 2018 , respectively At the Acquisition Date, the carrying value of our loans was adjusted to estimated fair market value and acquisition discounts of $33,907,000 were recorded, which are being accreted to interest and other income using the effective interest method. We sold substantially all of our commercial mortgage loans with unamortized acquisition discounts of $15,951,000 to an unrelated third-party in December 2015. Acquisition discounts of $624,000 and $884,000 remained as of December 31, 2019 and 2018 , respectively. A loan receivable is generally classified as non-accrual (a "Non-Accrual Loan") if (i) it is past due as to payment of principal or interest for a period of 60 days or more, (ii) any portion of the loan is classified as doubtful or is charged-off or (iii) the repayment in full of the principal and or interest is in doubt. Generally, loans are charged-off when management determines that we will be unable to collect any remaining amounts due under the loan agreement, either through liquidation of collateral or other means. Interest income, included in interest and other income or discontinued operations, on a Non-Accrual Loan is recognized on either the cash basis or the cost recovery basis. On a quarterly basis, and more frequently if indicators exist, we evaluate the collectability of our loans receivable. Our evaluation of collectability involves significant judgment, estimates, and a review of the ability of the borrower to make principal and interest payments, the underlying collateral and the borrowers' business models and future operations in accordance with Accounting Standards Codification ("ASC") 450-20, Contingencies—Loss Contingencies , and ASC 310-10, Receivables . For the years ended December 31, 2019 , 2018 and 2017 , we recorded $66,000 , $147,000 and $97,000 of impairment on our loans receivable, respectively. There were no material loans receivable subject to credit risk which were considered to be impaired at December 31, 2019 or 2018 . We also establish a general loan loss reserve when available information indicates that it is probable a loss has occurred based on the carrying value of the portfolio and the amount of the loss can be reasonably estimated. Significant judgment is required in determining the general loan loss reserve, including estimates of the likelihood of default and the estimated fair value of the collateral. The general loan loss reserve includes those loans, which may have negative characteristics which have not yet become known to us. In addition to the reserves established on loans not considered impaired that have been evaluated under a specific evaluation, we establish the general loan loss reserve using a consistent methodology to determine a loss percentage to be applied to loan balances. These loss percentages are based on many factors, primarily cumulative and recent loss history and general economic conditions. Accounts Receivable —Accounts receivable are carried net of the allowances for uncollectible amounts. Management's determination of the adequacy of these allowances is based primarily upon evaluation of historical loss experience, individual receivables, current economic conditions, and other relevant factors. The allowances are increased or decreased through the provision for bad debts. The allowance for uncollectible accounts receivable was $45,000 and $160,000 as of December 31, 2019 and 2018 , respectively. Deferred Rent Receivable and Charges —Deferred rent receivable and charges consist of deferred rent, deferred leasing costs, deferred offering costs (Note 10) and other deferred costs. Deferred rent receivable is $19,988,000 and $52,366,000 at December 31, 2019 and 2018 , respectively. Deferred leasing costs, which represent lease commissions and other direct costs associated with the acquisition of tenants, are capitalized and amortized on a straight-line basis over the terms of the related leases. Deferred leasing costs of $16,881,000 and $51,152,000 are presented net of accumulated amortization of $7,438,000 and $23,910,000 at December 31, 2019 and 2018 , respectively. Deferred offering costs represent direct costs incurred in connection with our offerings of Series A Preferred Units (as defined in Note 10) and, after January 2020, Series A Preferred Stock (as defined in Note 10) and Series D Preferred Stock (as defined in Note 10), excluding costs specifically identifiable to a closing, such as commissions, dealer-manager fees, and other offering fees and expenses. Generally, for a specific issuance of securities, issuance-specific offering costs are recorded as a reduction of proceeds raised on the issuance date and offering costs incurred but not directly related to a specifically identifiable closing of a security are deferred. Deferred offering costs are first allocated to each issuance of a security on a pro-rata basis equal to the ratio of the number of units or securities issued in a given issuance to the maximum number of units or securities that are expected to be issued in the related offering. In the case of the Series A Preferred Units, which were issued prior to February 2020, the issuance-specific offering costs and the deferred offering costs allocated to such issuance are further allocated to the Series A Preferred Stock (as defined in Note 10) and Series A Preferred Warrants (as defined in Note 10) issued in such issuance based on the relative fair value of the instruments on the date of issuance. The deferred offering costs allocated to the Series A Preferred Stock and Series A Preferred Warrants are reductions to temporary equity and permanent equity, respectively. Deferred offering costs of $5,275,000 and $4,213,000 related to our offering of Series A Preferred Units are included in deferred rent receivable and charges at December 31, 2019 and 2018 , respectively. Other deferred costs are $151,000 and $409,000 at December 31, 2019 and 2018 , respectively. Noncontrolling Interests —Noncontrolling interests represent the interests in various properties owned by third parties. Redeemable Preferred Stock —Beginning on the date of original issuance of any given shares of Series A Preferred Stock (as defined in Note 10) or Series D Preferred Stock (as defined in Note 10), the holder of such shares has the right to require the Company to redeem such shares at a redemption price of 100% of the Series A Preferred Stock Stated Value (as defined in Note 10) or Series D Preferred Stock Stated Value (as defined in Note 10), as applicable, plus accrued and unpaid dividends, subject to the payment of a redemption fee until the fifth anniversary of such issuance. From and after the fifth anniversary of the date of the original issuance, the holder will have the right to require the Company to redeem such shares at a redemption price of 100% of the Series A Preferred Stock Stated Value or Series D Preferred Stock Stated Value, as applicable, plus accrued and unpaid dividends, without a redemption fee, and the Company will have the right (but not the obligation) to redeem such shares at 100% of the Series A Preferred Stock Stated Value or Series D Preferred Stock Stated Value, as applicable, plus accrued and unpaid dividends. The applicable redemption price payable upon redemption of any Series A Preferred Stock is payable in cash or, on or after the first anniversary of the issuance of such shares of Series A Preferred Stock to be redeemed, in the Company's sole discretion, in cash or in equal value through the issuance of shares of Common Stock, based on the volume weighted average price of our Common Stock for the 20 trading days prior to the redemption. The applicable redemption price payable upon redemption of any Series D Preferred Stock is payable in cash or, in the Company's sole discretion, in equal value through the issuance of shares of Common Stock, based on the volume weighted average price of our Common Stock for the 20 trading days prior to the redemption. Since a holder of Series A Preferred Stock has the right to request redemption of such shares and redemptions prior to the first anniversary are to be paid in cash, we have recorded the activity related to our Series A Preferred Stock in temporary equity. We recorded the activity related to our Series A Preferred Warrants (Note 10) in permanent equity. We will record the activity related to our Series D Preferred Stock (Note 10) in permanent equity. On the first anniversary of the date of original issuance of a particular share of Series A Preferred Stock, we reclassify such share of Series A Preferred Stock from temporary equity to permanent equity because the feature giving rise to temporary equity classification, the requirement to satisfy redemption requests in cash, lapses on the first anniversary date. From and after the fifth anniversary of the date of original issuance of the Series L Preferred Stock, each holder will have the right to require the Company to redeem, and the Company will also have the option to redeem (subject to certain conditions), such shares of Series L Preferred Stock at a redemption price equal to the Series L Preferred Stock Stated Value (as defined in Note 10), plus, provided certain conditions are met, all accrued and unpaid distributions. Notwithstanding the foregoing, a holder of shares of our Series L Preferred Stock may require us to redeem such shares at any time prior to the fifth anniversary of the date of original issuance of the Series L Preferred Stock if (1) we do not declare and pay in full the distributions on the Series L Preferred Stock for any annual period prior to such fifth anniversary or (2) we do not declare and pay all accrued and unpaid distributions on the Series L Preferred Stock for all past dividend periods prior to the applicable holder redemption date. The applicable redemption price payable upon redemption of any Series L Preferred Stock will be made, in the Company's sole discretion, in the form of (A) cash in Israeli New Shekels ("ILS") at the then-current currency exchange rate determined in accordance with the Articles Supplementary defining the terms of the Series L Preferred Stock, (B) in equal value through the issuance of shares of Common Stock, with the value of such Common Stock to be deemed the lower of (i) our net asset value ("NAV") per share of our Common Stock as most recently published by the Company as of the effective date of redemption and (ii) the volume-weighted average price of our Common Stock, determined in accordance with the Articles Supplementary defining the terms of the Series L Preferred Stock, or (C) in a combination of cash in ILS and our Common Stock, based on the conversion mechanisms set forth in (A) and (B), respectively. We recorded the activity related to our Series L Preferred Stock in permanent equity. Purchase Accounting for Acquisition of Investments in Real Estate —We apply the acquisition method to all acquired real estate assets. The purchase consideration of the real estate, which for real estate acquired on or after October 1, 2017 includes the transaction costs incurred in connection with such acquisitions, is recorded at fair value to the acquired tangible assets, consisting primarily of land, land improvements, building and improvements, tenant improvements, and furniture, fixtures, and equipment, and identified intangible assets and liabilities, consisting of the value of acquired above-market and below-market leases, in-place leases and ground leases, if any, based in each case on their respective fair values. Loan premiums, in the case of above-market rate loans, or loan discounts, in the case of below-market rate loans, are recorded based on the fair value of any loans assumed in connection with acquiring the real estate. The fair value of the tangible assets of an acquired property is determined by valuing the property as if it were vacant, and the "as-if-vacant" value is then allocated to land (or acquired ground lease if the land is subject to a ground lease), land improvements, building and improvements, and tenant improvements based on management's determination of the relative fair values of these assets. Management determines the as-if-vacant fair value of a property using methods similar to those used by independent appraisers. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses, and estimates of lost rental revenue during the expected lease-up periods based on current market demand. Management also estimates costs to execute similar leases, including leasing commissions, legal, and other related costs. In allocating the purchase consideration of the identified intangible assets and liabilities of an acquired property, above-market, below-market, and in-place lease values are recorded based on the present value (using an interest rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management's estimate of fair market lease rates for the corresponding in-place leases measured over a period equal to the remaining non-cancelable term of the lease, and for below-market leases, over a period equal to the initial term plus any below-market fixed-rate renewal periods. Acquired above-market and below-market leases are amortized and recorded to rental and other property income over the initial terms of the respective leases. The aggregate value of other acquired intangible assets, consisting of in-place leases and tenant relationships, is measured by the estimated cost of operations during a theoretical lease-up period to replace in-place leases, including lost revenues and any unreimbursed operating expenses, plus an estimate of deferred leasing commissions for in-place leases. The value of in-place leases is amortized to expense over the remaining non-cancelable periods of the respective leases. If a lease is terminated prior to its stated expiration, all unamortized amounts relating to that lease are written-off. A tax abatement intangible asset was recorded for a property acquired in 2011 and sold in 2017, based on an approval for a property tax abatement, due to the location of the property. The tax abatement intangible asset was amortized over eight years and was written off in connection with the disposition. Revenue Recognition —We use a five-step model to recognize revenue for contracts with customers. The five-step model requires that we (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) we satisfy the performance obligation. Revenue from leasing activities We operate as a lessor of real estate assets, primarily in Class A and creative office assets. In determining whether our contracts with our tenants constitute leases, we determined that our contracts explicitly identify the premises and that any substitution rights to relocate the tenant to other premises within the same building stated in the contract are not substantive. Additionally, so long as payments are made timely under these contracts, our tenants have the right to obtain substantially all the economic benefits from the use of this identified asset and can direct how and for what purpose the premises are used to conduct their operations. Therefore, our contracts with our tenants constitute leases. All leases are classified as operating leases and minimum rents are recognized on a straight-line basis over the terms of the leases when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased asset. The excess of rents recognized over amounts contractually due pursuant to the underlying leases is recorded as deferred rent. If the lease provides for tenant improvements, we determine whether the tenant improvements, for accounting purposes, are owned by the tenant or us. When we are the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is considered the owner of the improvements, any tenant improvement allowance that is funded is treated as an incentive. Lease incentives paid to tenants are included in other assets and amortized as a reduction to rental revenue on a straight-line basis over the term of the related lease. Lease incentives of $3,976,000 and $12,958,000 are presented net of accumulated amortization of $2,029,000 and $6,188,000 at December 31, 2019 and 2018 , respectively. Reimbursements from tenants, consisting of amounts due from tenants for common area maintenance, real estate taxes, insurance, and other recoverable costs, are recognized as revenue in the period the expenses are incurred. Tenant reimbursements are recognized and presented on a gross basis when we are primarily responsible for fulfilling the promise to provide the specified good or service and control that specified good or service before it is transferred to the tenant. We have elected not to separate lease and non-lease components as the pattern of revenue recognition does not differ for the two components, and the non-lease component is not the primary component in our leases. In addition to minimum rents, certain leases provide for additional rents based upon varying percentages of tenants' sales in excess of annual minimums. Percentage rent is recognized once lessees' specified sales targets have been met. Included in rental and other property income for the years ended December 31, 2019 , 2018 and 2017 , is $40,000 , $65,000 and $304,000 , respectively, of percentage rent. We derive parking revenues from leases with third-party operators. Our parking leases provide for additional rents based upon varying percentages of tenants' sales in excess of annual minimums. Parking percentage rent is recognized once lessees' specific sales targets have been met. Included in rental and other property income for the years ended December 31, 2019 , 2018 and 2017 , is $160,000 , $1,509,000 and $1,881,000 , respectively, of parking percentage rent. Included in hotel income for the years ended December 31, 2019 , 2018 and 2017 , is $0 , $0 , and $733,000 , respectively, of parking percentage rent. For the years ended December 31, 2019 , 2018 and 2017 , we recognized rental income as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Rental and other property income Fixed lease payments (1) $ 80,205 $ 136,145 $ 162,479 Variable lease payments (2) 8,126 10,950 13,055 Rental and other property income $ 88,331 $ 147,095 $ 175,534 (1) Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the lease term, including amortization of acquired above-market leases, below-market leases and lease incentives. (2) Variable lease payments include expense reimbursements billed to tenants and percentage rent, net of bad debt expense from our operating leases. Revenue from lending activities Interest income included in interest and other income is comprised of interest earned on loans and our short-term investments and the accretion of net loan origination fees and discounts. Interest income on loans is accrued as earned with the accrual of interest suspended when the related loan becomes a Non-Accrual Loan. Revenue from hotel activities Hotel revenue is recognized upon establishment of a contract with a customer. At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or implied by customary business practices. Various performance obligations of hotel revenues can be categorized as follows: • cancellable and noncancelable room revenues from reservations and • ancillary services including facility usage and food or beverage. Cancellable reservations represent a single performance obligation of providing lodging services at the hotel. The Company satisfies its performance obligation and recognizes revenues associated with these reservations over time as services are rendered to the customer. The Company satisfies its performance obligation and recognizes revenues associated with noncancelable reservations at the earlier of (i) the date on which the customer cancels the reservation or (ii) over time as services are rendered to the customer. Ancillary services include facilities usage and providing food and beverage. The Company satisfies its performance obligation and recognizes revenues associated with these services at a point in time as the good or service is delivered to the customer. At inception of these contracts with customers for hotel revenues, the contractual price is equivalent to the transaction price as there are no elements of variable consideration to estimate. We recognized hotel income of $35,633,000 , $35,672,000 and $35,576,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Below is a reconciliation of the hotel revenue from contracts with customers to the total hotel segment revenue disclosed in Note 19: Year Ended December 31, 2019 2018 2017 (in thousands) Hotel properties Hotel income $ 35,633 $ 35,672 $ 35,576 Rental and other property income 2,947 2,922 2,877 Interest and other income 168 195 132 Hotel revenues $ 38,748 $ 38,789 $ 38,585 Tenant recoveries outside of the lease agreements Tenant recoveries outside of the lease agreements are related to construction projects in which our tenants have agreed to fully reimburse us for all costs related to construction. These services include architectural, permit expediter and construction services. At inception of the contract with the customer, the contractual price is equivalent to the transaction price as there are no elements of variable consideration to estimate. While these individual services are distinct, in the context of the arrangement with the customer, all of these services are bundled together and represent a single package of construction services requested by the customer. The Company satisfies its performance obligation and recognizes revenues associated with these services over time as the construction is completed. Amounts recognized for tenant recoveries outside of the lease agreements were $205,000 , $399,000 and $6,822,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively, which are included in interest and other income on the consolidated statements of operations. As of December 31, 2019 , there were no remaining performance obligations associated with tenant recoveries outside of the lease agreements. Premiums and Discounts on Debt — Premiums and discounts on debt are accreted or amortized to interest expense using the effective interest method or on a straight-line basis over the respective term of the loan, which approximates the effective interest method. Stock-Based Compensation Plans —We have issued and continue to issue restricted shares under stock-based compensation plans described more fully in Note 8. We use fair value recognition provisions to account for all awards granted, modified or settled. Earnings per Share ("EPS") —Basic EPS is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of Common Stock outstanding for the period. Net income attributable to common stockholders includes a deduction for dividends due to preferred stockholders. Diluted EPS is computed by dividing net income attributable to common stockholders by the weighted average number of shares of Common Stock outstanding adjusted for the dilutive effect, if any, of securities such as stock-based compensation awards, warrants, including the Series A Preferred Warrants (Note 11) and preferred stock, including the Series A Preferred Stock (Note 10), Series D Preferred Stock (Note 10) and Series L Preferred Stock (Note 10), whose redemption is payable in shares of Common Stock or cash, at the discretion of the Company. The dilutive effect of stock-based compensation awards and warrants, including the Series A Preferred Warrants, is reflected in the weighted average diluted shares calculation by application of the treasury stock method. The dilutive effect of preferred stock, including the Series A Preferred Stock, Series D Preferred Stock and Series L Preferred Stock, whose redemption is payable in shares of Common Stock or cash, at the discretion of the Company, is reflected in the weighted average diluted shares calculation by application of the if-converted method. Distributions —Distributions on our Series A Preferred Stock (as defined in Note 10), Series D Preferred Stock (as defined in Note 10), Series L Preferred Stock (as defined in Note 10) and Common Stock are recorded when they are authorized by our Board of Directors and declared by the Company. Assets Held for Sale and Discontinued Operations —In the ordinary course of business, we may periodically enter into agreements to dispose of our assets. Some of these agreements are non-binding because either they do not obligate either party to pursue any transactions until the execution of a definitive agreement or they provide the potential buyer with the ability to terminate without penalty or forfeiture of any material deposit, subject to certain specified contingencies, such as completion of due diligence at the discretion of such buyer. We do not classify assets that are subject to such non-binding agreements as held for sale. We classify assets as held for sale, if material, when they meet the necessary criteria, which include: a) management commits to and actively embarks upon a plan to sell the assets, b) the assets to be sold are available for immediate sale in their present condition, c) the sale is expected to be completed within one year under terms usual and customary for such sales and d) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. We generally believe that we meet these criteria when the plan for sale has been approved by our management, having the authority to approve the sale, there are no known significant contingencies related to the sale and management believes it is probable that the sale will be completed within one year. Assets held for sale are recorded at the lower of cost or estimated fair value less cost to sell. In addition, if we were to determine that the asset disposal associated with assets held for sale or disposed of represents a strategic shift, the revenues, expenses and net gain (loss) on dispositions would be recorded in discontinued operations for all periods presented through the date of the applicable disposition. We sold all of our multifamily properties during the year ended December 31, 2017. We assessed the sale of these properties (Note 3) in accordance with ASC 205-20, Discontinued Operations . In our assessment, we considered, among other factors, the materiality of the revenue, net operating income, and total assets of our multifamily segment. Based on our qualitative and quantitative assessment, we concluded the disposals did not represent a strategic shift that would have a major effect on our operations and financial results and therefore should not be classified as discontinued operations on |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS The fair value of real estate acquired is recorded to the acquired tangible assets, consisting primarily of land, land improvements, building and improvements, tenant improvements, and furniture, fixtures, and equipment, and identified intangible assets and liabilities, consisting of the value of acquired above-market and below-market leases, in-place leases and ground leases, if any, based in each case on their respective fair values. Loan premiums, in the case of above-market rate loans, or loan discounts, in the case of below-market rate loans, are recorded based on the fair value of any loans assumed in connection with acquiring the real estate. 2019 Transactions —There were no acquisitions during the year ended December 31, 2019 . We sold 100% fee-simple interests in the following properties to unrelated third-parties during the year ended December 31, 2019 . Transaction costs related to these sales were expensed as incurred. Property Asset Type Date of Sale Square Feet Sales Price Transaction Costs Gain on Sale (in thousands) March Oakland Properties, Office / Parking Garage March 1, 2019 975,596 $ 512,016 $ 8,971 $ 289,779 830 1st Street, Office March 1, 2019 247,337 116,550 2,438 45,710 260 Townsend Street, Office March 14, 2019 66,682 66,000 2,539 42,092 1333 Broadway, Office May 16, 2019 254,523 115,430 658 55,221 Union Square Properties, Office / Land July 30, 2019 630,650 181,000 3,744 302 $ 990,996 $ 18,350 $ 433,104 (1) The "March Oakland Properties" consist of 1901 Harrison Street, 2100 Franklin Street, 2101 Webster Street, and 2353 Webster Street Parking Garage. (2) The "Union Square Properties" consist of 899 North Capitol Street, 901 North Capitol Street and 999 North Capitol Street. Prior to the sale, we determined that the book values of such properties exceeded their estimated fair values and recognized an impairment charge of $69,000,000 for the year ended December 31, 2019 (Note 2). Our determination of the fair values of these properties was based on negotiations with the third-party buyer and the contract sales price. The gain on sale includes $113,000 of extinguishment of noncontrolling interests as a result of the sale. 2018 Transactions —On January 18, 2018 , we acquired a 100% fee-simple interest in an office property known as 9460 Wilshire Boulevard from an unrelated third-party. The property has approximately 68,866 square feet of office space and 22,884 square feet of retail space and is located in Beverly Hills, California. The acquisition was funded with proceeds from our Series L Preferred Stock offering, and the acquired property is reported as part of the office segment (Note 19). We performed an analysis and, based on our analysis, we determined this acquisition was an asset purchase and not a business combination. As such, transaction costs were capitalized as incurred in connection with this acquisition. Asset Date of Purchase Property Type Acquisition Square Feet Price (1) (in thousands) 9460 Wilshire Boulevard, Beverly Hills, CA Office January 18, 2018 91,750 $ 132,000 (1) In December 2017, at the time we entered into the purchase and sale agreement, we made a $20,000,000 non-refundable deposit to an escrow account that was included in other assets on our consolidated balance sheet at December 31, 2017. Transaction costs that were capitalized in connection with the acquisition of this property totaled $48,000 , which are not included in the purchase price above. There were no dispositions during the year ended December 31, 2018 . 2017 Transactions —On December 29, 2017 , we acquired a 100% fee-simple interest in an office property known as 1130 Howard Street from an unrelated third-party. The office property has approximately 21,194 square feet and is located in San Francisco, California. The acquisition was funded with proceeds from our Series L Preferred Stock offering, and the acquired property is reported as part of the office segment (Note 19). We performed an analysis and, based on our analysis, we determined this acquisition was an asset purchase and not a business combination. As such, transaction costs were capitalized as incurred in connection with this acquisition. Asset Date of Purchase Property Type Acquisition Square Feet Price (1) (in thousands) 1130 Howard Street, San Francisco, CA Office December 29, 2017 21,194 $ 17,717 (1) Transaction costs that were capitalized and assumption of liabilities totaled $1,915,000 , which are excluded from the purchase price above. We sold 100% fee-simple interests in the following properties, other than 800 N Capitol, in which we sold a 100% leasehold interest, to unrelated third-parties during the year ended December 31, 2017 . Transaction costs related to these sales were expensed as incurred. Property Asset Type Date of Sale Square Sales Price Transaction Costs Gain on Sale (in thousands) 211 Main Street, Office March 28, 2017 417,266 $ 292,882 $ 1,435 $ 189,242 3636 McKinney Avenue, Multifamily May 30, 2017 103 $ 20,000 $ 177 $ 6,631 3839 McKinney Avenue, Multifamily May 30, 2017 75 $ 14,100 $ 180 $ 4,982 200 S College Street, Office June 8, 2017 567,865 $ 148,500 $ 833 $ 45,906 980 9th and 1010 8th Street, Office & Parking Garage June 20, 2017 485,926 $ 120,500 $ 1,119 $ 34,559 4649 Cole Avenue, Multifamily June 23, 2017 334 $ 64,000 $ 499 $ 28,648 800 N Capitol Street, Office August 31, 2017 311,593 $ 119,750 $ 2,388 $ 34,456 7083 Hollywood Boulevard, Office September 21, 2017 82,193 $ 42,300 $ 584 $ 23,810 47 E 34th Street, Multifamily September 26, 2017 110 $ 80,000 $ 3,157 $ 16,556 370 L'Enfant Promenade, Office October 17, 2017 409,897 $ 126,680 $ 2,451 $ 2,994 4200 Scotland Street, Multifamily December 15, 2017 308 $ 64,025 $ 597 $ 20,314 $ 1,092,737 $ 13,420 $ 408,098 (1) Reflects the square footage of office properties and number of units of multifamily properties. (2) A mortgage collateralized by this property was prepaid in connection with our sale of the property (Note 7). (3) A mortgage collateralized by this property was assumed by the buyer in connection with our sale of the property (Note 7). (4) In August 2017, we negotiated an agreement with an unrelated third-party for the sale of this property. We determined that the book value of this property exceeded its estimated fair value less costs to sell, and recognized an impairment charge of $13,100,000 for the year ended December 31, 2017 (Note 2). Our determination of fair value was based on the sales price negotiated with the third-party buyer. The results of operations of the properties we sold have been included in the consolidated statements of operations through each properties' respective disposition date. The following is the detail of the carrying amounts of assets and liabilities at the time of the sales of the properties that occurred during the years ended December 31, 2019 , 2018 and 2017 : Year Ended December 31, 2019 2018 2017 (in thousands) Assets Investments in real estate, net $ 476,532 $ — $ 631,740 Deferred rent receivable and charges, net 55,297 — 34,071 Other intangible assets, net 316 — 11,283 Other assets 4,096 — 38 Total assets $ 536,241 $ — $ 677,132 Liabilities Debt, net (1) (2) $ 318,072 $ — $ 115,037 Other liabilities — — 14,029 Intangible liabilities, net — — 1,800 Total liabilities $ 318,072 $ — $ 130,866 (1) Debt, net for the year ended December 31, 2019 is presented net of deferred loan costs of $1,704,000 and accumulated amortization of $576,000 . Additionally, a mortgage loan with an outstanding principal balance of $28,200,000 was assumed by the buyer in connection with the sale of our property in San Francisco, California. A mortgage loan with an outstanding principal balance of $46,000,000 was prepaid in connection with the sale in March 2019 of our property in Washington, D.C. that was collateral for the loan. Mortgage loans with an aggregate outstanding principal balance of $205,500,000 were legally defeased in connection with the sale of the March Oakland Properties that were collateral for the loans. A mortgage loan with an outstanding principal balance of $39,500,000 was legally defeased in connection with the sale in May 2019 of our property in Oakland, California that was collateral for the loan. (2) Debt, net for the year ended December 31, 2017 is presented net of $665,000 of premium on assumed mortgage. Additionally, debt of $50,260,000 was assumed by certain buyers in connection with sales of certain properties. The results of operations of the properties we acquired have been included in the consolidated statements of operations from the date of acquisition. The purchase price of the acquisitions completed during the years ended December 31, 2018 and 2017 were less than 10% of our total assets as of the respective most recent annual consolidated financial statements filed at or prior to the date of acquisition. The fair value of the net assets acquired for the aforementioned acquisitions during the years ended December 31, 2019 , 2018 and 2017 are as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Land $ — $ 52,199 $ 8,290 Land improvements — 756 — Buildings and improvements — 74,522 10,109 Tenant improvements — 1,451 371 Acquired in-place leases (1) — 7,003 1,184 Acquired above-market leases (2) — 109 37 Acquired below-market leases (3) — (3,992 ) (360 ) Net assets acquired $ — $ 132,048 $ 19,631 (1) Acquired in-place leases have a weighted average amortization period of 3 years and 5 years , respectively, for the 2018 and 2017 acquisitions. (2) Acquired above-market leases have a weighted average amortization period of 2 years and 7 years , respectively, for the 2018 and 2017 acquisitions. (3) Acquired below-market leases have a weighted average amortization period of 3 years and 2 years , respectively, for the 2018 and 2017 acquisitions. Assets Held for Sale As noted above, in March 2019, we sold a 100% fee-simple interest in an office property located at 260 Townsend Street in San Francisco, California to an unrelated third-party. The office property had been classified as held for sale as of December 31, 2018 , as the purchase and sale agreement was entered into and became subject to a non-refundable deposit prior to December 31, 2018 . The following is the detail of the carrying amounts of assets and liabilities for the office properties that are classified as held for sale on our consolidated balance sheet as of December 31, 2018 : December 31, 2018 (in thousands) Assets Investments in real estate, net (1) $ 17,123 Cash and cash equivalents 755 Accounts receivable, net 41 Deferred rent receivable and charges, net (2) 4,009 Other intangible assets, net (3) 220 Other assets 27 Total assets held for sale, net $ 22,175 Liabilities Debt, net (4) $ 28,018 Accounts payable and accrued expenses 370 Due to related parties 81 Other liabilities 297 Total liabilities associated with assets held for sale, net $ 28,766 (1) Investments in real estate of $24,832,000 are presented net of accumulated depreciation of $7,709,000 . (2) Deferred rent receivable and charges consist of deferred rent receivable of $2,909,000 and deferred leasing costs of $1,669,000 net of accumulated amortization of $569,000 . (3) Other intangible assets, net, represent acquired in-place leases of $1,778,000 , which are presented net of accumulated amortization of $1,558,000 . (4) Debt, net, includes the outstanding principal balance of 260 Townsend Street of $28,200,000 , net of deferred loan costs of $243,000 and accumulated amortization of $61,000 . |
INVESTMENTS IN REAL ESTATE
INVESTMENTS IN REAL ESTATE | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
INVESTMENTS IN REAL ESTATE | INVESTMENTS IN REAL ESTATE Investments in real estate consist of the following: December 31, 2019 2018 (in thousands) Land $ 134,421 $ 266,410 Land improvements 2,713 18,368 Buildings and improvements 438,349 912,892 Furniture, fixtures, and equipment 4,628 4,245 Tenant improvements 35,667 133,487 Work in progress 13,484 9,234 Investments in real estate 629,262 1,344,636 Accumulated depreciation (120,555 ) (303,699 ) Net investments in real estate $ 508,707 $ 1,040,937 For the years ended December 31, 2019 , 2018 , and 2017 , we recorded depreciation expense of $22,209,000 , $43,499,000 , and $49,427,000 , respectively. |
LOANS RECEIVABLE
LOANS RECEIVABLE | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
LOANS RECEIVABLE | LOANS RECEIVABLE Loans receivable consist of the following: December 31, 2019 2018 (in thousands) SBA 7(a) loans receivable, subject to loan-backed notes $ 27,598 $ 36,847 SBA 7(a) loans receivable, subject to credit risk 27,290 29,385 SBA 7(a) loans receivable, subject to secured borrowings 12,644 16,409 Loans receivable 67,532 82,641 Deferred capitalized costs 1,145 1,309 Loan loss reserves (598 ) (702 ) Loans receivable, net $ 68,079 $ 83,248 SBA 7(a) Loans Receivable, Subject to Loan-Backed Notes —Represents the unguaranteed portions of loans originated under the SBA 7(a) Program which were transferred to a trust and are held as collateral in connection with a securitization transaction. The proceeds received from the transfer are reflected as loan-backed notes payable (Note 7). SBA 7(a) Loans Receivable, Subject to Credit Risk —Represents the unguaranteed portions of loans originated under the SBA 7(a) Program which were retained by the Company and the government guaranteed portions of such loans that have not yet been fully funded or sold. SBA 7(a) Loans Receivable, Subject to Secured Borrowings —Represents the government guaranteed portions of loans originated under the SBA 7(a) Program which were sold with the proceeds received from the sale reflected as secured borrowings—government guaranteed loans. There is no credit risk associated with these loans since the SBA has guaranteed payment of the principal. At December 31, 2019 and 2018 , 99.6% and 99.7% , respectively, of our loans subject to credit risk were current. We classify loans with negative characteristics in substandard categories ranging from special mention to doubtful. At December 31, 2019 and 2018 , $1,362,000 and $235,000 , respectively, of loans subject to credit risk were classified in substandard categories. At December 31, 2019 and 2018 , our loans subject to credit risk were 98.7% and 98.3% , respectively, concentrated in the hospitality industry. |
OTHER INTANGIBLE ASSETS
OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
OTHER INTANGIBLE ASSETS | OTHER INTANGIBLE ASSETS A schedule of our intangible assets and liabilities and related accumulated amortization and accretion as of December 31, 2019 and 2018 , is as follows: Assets Liabilities December 31, 2019 Acquired Above-Market Leases Acquired In-Place Leases Trade Name and License Acquired Below-Market Leases (in thousands) Gross balance $ 74 $ 13,653 $ 2,957 $ (3,521 ) Accumulated amortization (42 ) (9,382 ) — 2,239 $ 32 $ 4,271 $ 2,957 $ (1,282 ) Average useful life (in years) 5 8 Indefinite 4 Assets Liabilities December 31, 2018 Acquired Above-Market Leases Acquired In-Place Leases Trade Name and License Acquired Below-Market Leases (in thousands) Gross balance $ 146 $ 16,210 $ 2,957 $ (6,618 ) Accumulated amortization (51 ) (9,731 ) — 3,746 $ 95 $ 6,479 $ 2,957 $ (2,872 ) Average useful life (in years) 3 8 Indefinite 4 The amortization of the acquired above-market leases, which decreased rental and other property income, was $63,000 , $51,000 and $3,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively. The amortization of the acquired in-place leases included in depreciation and amortization expense was $2,112,000 , $3,691,000 and $808,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Tax abatement amortization included in rental and other property operating expenses was $0 , $0 and $276,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively. The amortization of the acquired below-market ground lease included in rental and other property operating expenses was $0 , $0 and $93,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively. The amortization of the acquired below-market leases included in rental and other property income was $1,590,000 , $2,190,000 and $1,066,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively. A schedule of future amortization and accretion of acquisition related intangible assets and liabilities as of December 31, 2019 , is as follows: Assets Liabilities Acquired Acquired Acquired Above-Market In-Place Below-Market Years Ending December 31, Leases Leases Leases (in thousands) 2020 $ 9 $ 1,349 $ (701 ) 2021 5 899 (347 ) 2022 5 663 (234 ) 2023 6 375 — 2024 6 375 — Thereafter 1 610 — $ 32 $ 4,271 $ (1,282 ) |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Information on our debt is as follows: December 31, 2019 2018 (in thousands) Mortgage loan with a fixed interest rate of 4.14% per annum, with monthly payments of interest only, and a balance of $97,100,000 due on July 1, 2026. The loan is nonrecourse. On March 1, 2019, mortgage loans with an aggregate outstanding principal balance of $205,500,000 were legally defeased in connection with the sale of the properties that were collateral for the loans. On May 16, 2019, one loan with an outstanding principal balance of $39,500,000 was legally defeased in connection with the sale of the property that was collateral for the loan. $ 97,100 $ 342,100 Mortgage loan with a fixed interest rate of 4.50% per annum, with monthly payments of interest only for 10 years, and payments of interest and principal starting in February 2022. The loan had a $42,008,000 balance due on January 5, 2027. The loan was nonrecourse. On March 1, 2019, the mortgage loan was prepaid in connection with the sale of the property that was collateral for the loan. — 46,000 97,100 388,100 Deferred loan costs related to mortgage loans (174 ) (1,177 ) Total Mortgages Payable 96,926 386,923 Secured borrowing principal on SBA 7(a) loans sold for a premium and excess spread—variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 5.68% and 5.89% at December 31, 2019 and 2018, respectively. 7,845 11,283 Secured borrowing principal on SBA 7(a) loans sold for excess spread—variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 3.32% and 3.57% at December 31, 2019 and 2018, respectively. 4,307 4,482 12,152 15,765 Unamortized premiums 629 940 Total Secured Borrowings—Government Guaranteed Loans 12,781 16,705 Revolving credit facility 153,000 130,000 SBA 7(a) loan-backed notes with a variable interest rate which resets monthly based on the lesser of the one-month LIBOR plus 1.40% or the prime rate less 1.08%, with payments of interest and principal due monthly. Balance due at maturity in March 20, 2043. 22,282 33,769 Junior subordinated notes with a variable interest rate which resets quarterly based on the three-month LIBOR plus 3.25%, with quarterly interest only payments. Balance due at maturity on March 30, 2035. 27,070 27,070 202,352 190,839 Deferred loan costs related to other debt (2,867 ) (3,941 ) Discount on junior subordinated notes (1,771 ) (1,855 ) Total Other Debt 197,714 185,043 Total Debt $ 307,421 $ 588,671 The mortgages payable are secured by deeds of trust on certain of the properties and assignments of rents. The junior subordinated notes may be redeemed at par at our option. Secured borrowings—government guaranteed loans represent sold loans which are treated as secured borrowings because the loan sales did not meet the derecognition criteria provided for in ASC 860-30, Secured Borrowing and Collateral . These loans included cash premiums that are amortized as a reduction to interest expense over the life of the loan using the effective interest method and are fully amortized when the underlying loan is repaid in full. SBA 7(a) loan-backed notes are secured by deeds of trust or mortgages. Deferred loan costs, which represent legal and third-party fees incurred in connection with our borrowing activities, are capitalized and amortized to interest expense on a straight-line basis over the life of the related loan, approximating the effective interest method. Deferred loan costs of $4,535,000 and $5,994,000 are presented net of accumulated amortization of $1,494,000 and $876,000 at December 31, 2019 and 2018 , respectively, and are a reduction to total debt. In September 2014, CIM Commercial entered into an $850,000,000 unsecured credit facility with a bank syndicate which consisted of a $450,000,000 revolver, a $325,000,000 term loan and a $75,000,000 delayed-draw term loan. Outstanding advances under the revolver bore interest at (i) the base rate plus 0.20% to 1.00% or (ii) LIBOR plus 1.20% to 2.00% , depending on the maximum consolidated leverage ratio. Outstanding advances under the term loans bore interest at (i) the base rate plus 0.15% to 0.95% or (ii) LIBOR plus 1.15% to 1.95% , depending on the maximum consolidated leverage ratio. Our unsecured credit facility matured on September 30, 2018. In May 2015, CIM Commercial entered into an unsecured term loan facility with a bank syndicate pursuant to which CIM Commercial could borrow up to a maximum of $385,000,000 . Outstanding advances under the term loan facility bore interest at (i) the base rate plus 0.60% to 1.25% or (ii) LIBOR plus 1.60% to 2.25% , depending on the maximum consolidated leverage ratio, which interest rate was effectively converted to a fixed rate of 3.16% through interest rate swaps. The term loan facility had a maturity date in May 2022. On November 2, 2015, $385,000,000 was drawn under the term loan facility. Proceeds from the term loan facility were used to repay balances outstanding under our unsecured credit facility. During the year ended December 31, 2017 , we repaid $215,000,000 of outstanding borrowings on our unsecured term loan facility. In connection with such paydowns, we wrote off deferred loan costs of $1,988,000 and related accumulated amortization of $705,000 , a proportionate amount to the borrowings being repaid, which was recorded as loss on early extinguishment of debt for the year ended December 31, 2017 . On October 30, 2018 , we repaid and terminated the $170,000,000 of outstanding borrowings on our unsecured term loan facility using proceeds from our new revolving credit facility (as described below). In connection with such paydown and termination, we wrote off the remaining deferred loan costs of $1,872,000 and related accumulated amortization of $1,064,000 , which was recorded as loss on early extinguishment of debt for the year ended December 31, 2018 . In June 2016, we entered into six mortgage loan agreements with an aggregate principal amount of $392,000,000 . A portion of the net proceeds from the loans was used to repay outstanding balances under our unsecured credit facility and the remaining portion was used to repurchase shares of our Common Stock in a private repurchase in September 2016. On September 21, 2017, in connection with the sale of an office property in Los Angeles, California, one mortgage loan with an outstanding principal balance of $21,700,000 , collateralized by such property, was assumed by the buyer, and we recognized a loss on early extinguishment of debt of $367,000 for the year ended December 31, 2017 , which represents the write-off of deferred loan costs of $259,000 and related accumulated amortization of $32,000 , and transaction costs of $140,000 . On March 1, 2019, additional mortgage loans, with an aggregate outstanding principal balance of $205,500,000 at such time, were legally defeased in connection with the sale of the related properties. The cash outlay required for this defeasance in the net amount of $224,086,000 was based on the purchase price of U.S. government securities that will generate sufficient cash flow to fund continued interest payments on the loans from the effective date of this defeasance through the date on which we could repay the loans at par. As a result of this defeasance, we recognized a loss on early extinguishment of debt of $19,290,000 for the year ended December 31, 2019 , which represents the sum of the difference between the purchase price of U.S. government securities of $224,086,000 and the aggregate outstanding principal balance of the mortgage loans of $205,500,000 , the write-off of deferred loan costs of $637,000 and related accumulated amortization of $170,000 , and transaction costs of $237,000 . On March 14, 2019 , in connection with the sale of an office property in San Francisco, California, one mortgage loan with an outstanding principal balance of $28,200,000 at such time was assumed by the buyer. As a result of this assumption, we recognized a loss on early extinguishment of debt of $178,000 for the year ended December 31, 2019 , which represents the write-off of deferred loan costs of $243,000 and related accumulated amortization of $65,000 . On May 16, 2019 , one mortgage loan with an outstanding principal balance of $39,500,000 at such time, was legally defeased in connection with the sale of the related property. The cash outlay required for this defeasance in the net amount of $44,108,000 was based on the purchase price of U.S. government securities that will generate sufficient cash flow to fund continued interest payments on the loan from the effective date of this defeasance through the date on which we could repay the loan at par. As a result of this defeasance, we recognized a loss on early extinguishment of debt of $4,911,000 for the year ended December 31, 2019 , which represents the sum of the difference between the purchase price of U.S. government securities of $44,108,000 and the outstanding principal balance of the mortgage loan of $39,500,000 , the write-off of deferred loan costs of $287,000 and related accumulated amortization of $82,000 , and transaction costs of $98,000 . On May 30, 2018 , we completed a securitization of the unguaranteed portion of certain of our SBA 7(a) loans receivable with the issuance of $38,200,000 of unguaranteed SBA 7(a) loan-backed notes. The securitization uses a trust formed for the benefit of the note holders (the "Trust") which is considered a variable interest entity ("VIE"). Applying the consolidation requirements for VIEs under the accounting rules in ASC Topic 810, Consolidation , the Company determined that it is the primary beneficiary based on its power to direct activities through its role as servicer and its obligations to absorb losses and right to receive benefits. The SBA 7(a) loan-backed notes are collateralized solely by the right to receive payments and other recoveries attributable to the unguaranteed portions of certain of our SBA 7(a) loans receivable. The SBA 7(a) loan-backed notes mature on March 20, 2043, with monthly payments due as payments on the collateralized loans are received. Based on the anticipated repayments of our collateralized SBA 7(a) loans, at issuance, we estimated the weighted average life of the SBA 7(a) loan-backed notes to be approximately two years. The SBA 7(a) loan-backed notes bear interest at the lower of the one-month LIBOR plus 1.40% or the prime rate less 1.08% . We reflect the SBA 7(a) loans receivable as assets on our consolidated balance sheets and the SBA 7(a) loan-backed notes as debt on our consolidated balance sheets. The restricted cash on our consolidated balance sheets as of December 31, 2019 and 2018 included $3,306,000 and $3,174,000 , respectively, of funds related to our SBA 7(a) loan-backed notes. In October 2018, CIM Commercial entered into a revolving credit facility with a bank syndicate pursuant to which CIM Commercial can borrow up to a maximum of $250,000,000 , subject to a borrowing base calculation. The revolving credit facility is secured by deeds of trust on certain properties. Outstanding advances under the revolving credit facility bear interest at (i) the base rate plus 0.55% or (ii) LIBOR plus 1.55% . At December 31, 2019 , the variable interest rate was 3.29% . The interest rate on the first $120,000,000 of one-month LIBOR indexed variable rate borrowings on our revolving credit facility was effectively converted to a fixed rate of 3.11% through interest rate swaps until such swaps were terminated on March 11, 2019 . The revolving credit facility is also subject to an unused commitment fee of 0.15% or 0.25% depending on the amount of aggregate unused commitments. The revolving credit facility matures in October 2022 and provides for one one -year extension option under certain conditions. On October 30, 2018 , we borrowed $170,000,000 on this facility to repay outstanding borrowings on our unsecured term loan facility. On December 28, 2018 , we repaid $40,000,000 of outstanding borrowings on our revolving credit facility and we terminated one interest rate swap with a notional value of $50,000,000 (Note 12). On February 28, 2019 and March 11, 2019 , we repaid $10,000,000 and $120,000,000 , respectively, of outstanding borrowings on our revolving credit facility using cash on hand and net proceeds from the 2019 asset sales (Note 3), and, in connection with the March 11, 2019 repayment, we terminated our two remaining interest rate swaps, which had an aggregate notional value of $120,000,000 (Note 12). At December 31, 2019 and 2018 , $153,000,000 and $130,000,000 , respectively, was outstanding under the revolving credit facility, and approximately $73,900,000 and $91,000,000 , respectively, was available for future borrowings. The revolving credit facility is not subject to any financial covenants, but is subject to a borrowing base calculation that determines the amount we can borrow. On March 28, 2017, in connection with the sale of an office property in San Francisco, California, we paid off a mortgage with an outstanding balance of $25,331,000 using proceeds from the sale. As a result, we recognized a loss on early extinguishment of debt of $1,534,000 for the year ended December 31, 2017 , which represents a prepayment penalty of $1,508,000 and the write-off of deferred loan costs of $165,000 and related accumulated amortization of $139,000 . On May 30, 2017, in connection with the sale of two multifamily properties, both located in Dallas, Texas, we paid off two mortgages with an aggregate outstanding principal balance of $15,448,000 using proceeds from the sales. As a result, we recognized a loss on early extinguishment of debt of $2,014,000 for the year ended December 31, 2017 , which represents prepayment penalties of $1,901,000 and the write-off of deferred loan costs of $298,000 and related accumulated amortization of $185,000 . On June 23, 2017, in connection with the sale of a multifamily property in Dallas, Texas, we paid off a mortgage with an outstanding principal balance of $23,333,000 using proceeds from the sale. As a result, we recognized a loss on early extinguishment of debt of $2,925,000 for the year ended December 31, 2017 , which represents a prepayment penalty of $2,812,000 and the write-off of deferred loan costs of $304,000 and related accumulated amortization of $191,000 . On December 15, 2017, in connection with the sale of a multifamily property in Houston, Texas, a mortgage with an outstanding principal balance of $28,560,000 , collateralized by such property, was assumed by the buyer. As a result, we recognized a loss on early extinguishment of debt of $92,000 for the year ended December 31, 2017, which represents the write-off of deferred loan costs of $264,000 and related accumulated amortization of $172,000 . On March 1, 2019 , in connection with the sale of an office property in Washington, D.C., we prepaid the related mortgage loan with an outstanding principal balance of $46,000,000 at such time, using proceeds from the sale. As a result, we recognized a loss on early extinguishment of debt of $5,603,000 for the year ended December 31, 2019 , which represents a prepayment penalty of $5,325,000 and the write-off of deferred loan costs of $537,000 and related accumulated amortization of $259,000 . At December 31, 2019 and 2018 , accrued interest and unused commitment fees payable of $650,000 and $1,574,000 , respectively, are included in accounts payable and accrued expenses. Future principal payments on our debt (face value) at December 31, 2019 are as follows: Years Ending December 31, Mortgages Payable Secured Borrowings Principal (1) Other (1) (2) Total (in thousands) 2020 $ — $ 1,893 $ 2,650 $ 4,543 2021 — 459 1,349 1,808 2022 — 482 154,391 154,873 2023 — 506 1,656 2,162 2024 — 532 1,036 1,568 Thereafter 97,100 8,280 41,270 146,650 $ 97,100 $ 12,152 $ 202,352 $ 311,604 (1) Principal payments on secured borrowings and SBA 7(a) loan-backed notes, which are included in Other, are generally dependent upon cash flows received from the underlying loans. Our estimate of their repayment is based on scheduled payments on the underlying loans. Our estimate will differ from actual amounts to the extent we experience prepayments and or loan liquidations or charge-offs. No payment is due unless payments are received from the borrowers on the underlying loans. (2) Represents the junior subordinated notes, SBA 7(a) loan-backed notes, and revolving credit facility. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS Restricted Shares —A summary of our restricted shares as of December 31, 2019 , 2018 and 2017 and the changes during the years ended is as follows: 2019 Weighted Average Grant Number of Date Fair Value Shares Per Share Balance, January 1 3,378 $ 44.40 Granted 3,880 $ 56.66 Vested (3,378 ) $ 44.40 Balance, December 31 3,880 $ 56.66 2018 Weighted Average Grant Number of Date Fair Value Shares Per Share Balance, January 1 3,195 $ 46.95 Granted 3,378 $ 44.40 Vested (3,195 ) $ 46.95 Balance, December 31 3,378 $ 44.40 2017 Weighted Average Grant Number of Date Fair Value Shares Per Share Balance, January 1 3,615 $ 56.26 Granted 3,195 $ 46.95 Vested (3,615 ) $ 56.26 Balance, December 31 3,195 $ 46.95 In May 2016, we granted awards of 1,131 restricted shares of Common Stock to each of the independent members of the Board of Directors ( 3,393 in aggregate) under the 2015 Equity Incentive Plan, which fully vested in May 2017 based on one year of continuous service. In June 2017, we granted awards of 1,065 restricted shares of Common Stock to each of the independent members of the Board of Directors ( 3,195 in aggregate) under the 2015 Equity Incentive Plan, which fully vested in June 2018 based on one year of continuous service. In May 2018, we granted awards of 1,126 restricted shares of Common Stock to each of the independent members of the Board of Directors ( 3,378 in aggregate) under the 2015 Equity Incentive Plan, which fully vested in May 2019 based on one year of continuous service. In May 2019, we granted awards of 889 restricted shares of Common Stock to each of the independent members of the Board of Directors ( 3,556 in aggregate) under the 2015 Equity Incentive Plan, which vest after one year of continuous service. In July 2019, we granted awards of 81 restricted shares of Common Stock to each of the independent members of the Board of Directors ( 324 in aggregate) under the 2015 Equity Incentive Plan, which will vest at the same time as the restricted shares of Common Stock granted in May 2019. Compensation expense related to these restricted shares of Common Stock is recognized over the vesting period. We recorded compensation expense of $194,000 , $162,000 and $153,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively, related to these restricted shares of Common Stock. We issued to two of our executive officers an aggregate of 666 shares of Common Stock on March 6, 2015, which fully vested in March 2017. The restricted shares of Common Stock vested based on two years of continuous service with one-third of the shares of Common Stock vesting immediately upon issuance and one-third vesting at the end of each of the next two years from the date of issuance. Compensation expense related to these restricted shares of Common Stock was recognized over the vesting period. We recognized compensation expense of $0 , $0 and $1,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively, related to these restricted shares of Common Stock. As of December 31, 2019 , there was $75,000 of total unrecognized compensation expense related to shares of Common Stock which will be recognized over the next year. The estimated fair value of restricted shares vested during 2019 , 2018 and 2017 was $150,000 , $150,000 and $203,000 , respectively. |
EARNINGS PER SHARE (''EPS'')
EARNINGS PER SHARE (''EPS'') | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE ("EPS") | EARNINGS PER SHARE ("EPS") The computations of basic EPS are based on our weighted average shares outstanding. The basic weighted average number of shares of Common Stock outstanding was 14,598,000 , 14,597,000 and 23,021,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively. In order to calculate the diluted weighted average number of shares of Common Stock outstanding for the years ended December 31, 2019 and 2017 , the basic weighted average number of shares of Common Stock outstanding was increased by 1,895,000 and 2,000 , respectively, to reflect the dilutive effect of certain shares of our Series A Preferred Stock. The computation of diluted EPS does not include outstanding shares of Series A Preferred Stock for the year ended December 31, 2018 because their impact was deemed to be anti-dilutive. Outstanding Series A Preferred Warrants were not included in the computation of diluted EPS for the years ended December 31, 2019 , 2018 and 2017 because their impact was either anti-dilutive or such warrants were not exercisable during such periods (Note 11). Outstanding shares of Series L Preferred Stock were not included in the computation of diluted EPS for the years ended December 31, 2019 , 2018 and 2017 because such shares were not redeemable during such periods. EPS for the year-to-date period may differ from the sum of quarterly EPS amounts due to the required method for computing EPS in the respective periods. In addition, EPS is calculated independently for each component and may not be additive due to rounding. The following table reconciles the numerator and denominator used in computing our basic and diluted per-share amounts for net income (loss) attributable to common stockholders for the years ended December 31, 2019 , 2018 and 2017 : Year Ended December 31, 2019 2018 2017 (in thousands, except per share amounts) Numerator: Net income (loss) attributable to common stockholders $ 322,696 $ (14,298 ) $ 377,813 Redeemable preferred stock dividends declared on dilutive shares 2,804 — 9 Diluted net income (loss) attributable to common stockholders $ 325,500 $ (14,298 ) $ 377,822 Denominator: Basic weighted average shares of Common Stock outstanding 14,598 14,597 23,021 Effect of dilutive securities—contingently issuable shares 1,895 — 2 Diluted weighted average shares and common stock equivalents outstanding 16,493 14,597 23,023 Net income (loss) attributable to common stockholders per share: Basic $ 22.11 $ (0.98 ) $ 16.41 Diluted $ 19.74 $ (0.98 ) $ 16.41 |
REDEEMABLE PREFERRED STOCK
REDEEMABLE PREFERRED STOCK | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
REDEEMABLE PREFERRED STOCK | REDEEMABLE PREFERRED STOCK Series A Preferred Stock —We conducted a continuous public offering of Series A Preferred Units from October 2016 through January 2020, where each Series A Preferred Unit consisted of one share of Series A Preferred Stock, par value $0.001 per share, of the Company (collectively, the "Series A Preferred Stock") with an initial stated value of $25.00 per share (the "Series A Preferred Stock Stated Value"), subject to adjustment, and one warrant (collectively, the "Series A Preferred Warrants") to purchase 0.25 of a share of Common Stock depending on when such Series A Preferred Warrant was issued (Note 11). Proceeds and expenses from the sale of the Series A Preferred Units were allocated to the Series A Preferred Stock and Series A Preferred Warrants using their relative fair values on the date of issuance. Since February 2020, we have been conducting a continuous public offering with respect to shares of our Series A Preferred Stock, which, since such time, is no longer being issued as a unit with an accompanying Series A Preferred Warrant. With respect to the payment of dividends, each of the Series A Preferred Stock and Series D Preferred Stock (as defined below) ranks senior to our Series L Preferred Stock (as defined below) and our Common Stock. With respect to the distribution of amounts upon liquidation, dissolution or winding-up, each of the Series A Preferred Stock and Series D Preferred Stock ranks on parity with our Series L Preferred Stock, to the extent of the Series L Preferred Stock Stated Value (as defined below), and otherwise ranks senior to our Series L Preferred Stock and our Common Stock. Our Series A Preferred Stock is redeemable at the option of the holder (the "Series A Preferred Stock Holder") or CIM Commercial. The redemption schedule of the Series A Preferred Stock allows redemptions at the option of the Series A Preferred Stock Holder from the date of original issuance of any given shares of Series A Preferred Stock at the Series A Preferred Stock Stated Value, less a redemption fee applicable prior to the fifth anniversary of the issuance of such shares, plus accrued and unpaid dividends. CIM Commercial has the right to redeem the Series A Preferred Stock after the fifth anniversary of the issuance of such shares at the Series A Preferred Stock Stated Value, plus accrued and unpaid dividends. At the Company's discretion, redemptions will be paid in cash or, on or after the first anniversary of the issuance of such shares of Series A Preferred Stock, an equal value of Common Stock based on the volume weighted average price of our Common Stock for the 20 trading days prior to the redemption. As of December 31, 2019 , we had issued 4,484,376 Series A Preferred Units and received gross proceeds of $112,106,000 ( $111,377,000 of which were allocated to the Series A Preferred Stock and the remaining $729,000 were allocated to the Series A Preferred Warrants). In connection with such issuance, costs specifically identifiable to the offering of Series A Preferred Units, such as commissions, dealer manager fees and other offering fees and expenses, totaled $8,836,000 ( $8,697,000 of which were allocated to the Series A Preferred Stock and the remaining $139,000 were allocated to the Series A Preferred Warrants). In addition, as of December 31, 2019 , non-issuance-specific costs related to this offering totaled $5,980,000 . As of December 31, 2019 , we have reclassified and allocated $701,000 and $4,000 from deferred rent receivable and charges to Series A Preferred Stock and Series A Preferred Warrants, respectively, as a reduction to the gross proceeds received. Such reclassification was based on the cumulative number of Series A Preferred Units issued relative to the maximum number of Series A Preferred Units expected to be issued under the offering. As of December 31, 2019 , there were 4,468,315 shares of Series A Preferred Stock and 4,484,376 Series A Preferred Warrants to purchase 1,164,432 shares of Common Stock outstanding. As of December 31, 2019 , 16,061 shares of Series A Preferred Stock had been redeemed. In December 2019, we received a request to redeem 800 shares of Series A Preferred Stock, which were redeemed in January 2020. As of December 31, 2019 , such shares are included in accounts payable and accrued expenses on our consolidated balance sheet. On the first anniversary of the issuance of a particular share of Series A Preferred Stock, we reclassify such share of Series A Preferred Stock from temporary equity to permanent equity because the feature giving rise to temporary equity classification, the requirement to satisfy redemption requests in cash, lapses on the first anniversary. As of December 31, 2019 , we have reclassified an aggregate of $64,953,000 in net proceeds from temporary equity to permanent equity. Holders of Series A Preferred Stock are entitled to receive, if, as and when authorized by our Board of Directors, and declared by us out of legally available funds, cumulative cash dividends on each share of Series A Preferred Stock at an annual rate of 5.5% of the Series A Preferred Stock Stated Value (i.e., the equivalent of $0.34375 per share per quarter) (the "Series A Dividend"). Dividends on each share of Series A Preferred Stock begin accruing on, and are cumulative from, the date of issuance. We expect to pay the Series A Dividend in arrears on a monthly basis in accordance with the foregoing provisions, unless our results of operations, our general financing conditions, general economic conditions, applicable requirements of the MGCL or other factors make it imprudent to do so. The timing and amount of the Series A Dividend will be determined by our Board of Directors, in its sole discretion, and may vary from time to time. Cash dividends on our Series A Preferred Stock paid in respect of the years ended December 31, 2019 and 2018 consist of the following: Declaration Date Payment Date Number of Shares Cash Dividends (in thousands) December 3, 2019 January 15, 2020 4,468,315 $ 1,467 August 8, 2019 October 15, 2019 4,091,980 $ 1,318 June 4, 2019 July 15, 2019 3,601,721 $ 1,150 February 20, 2019 April 15, 2019 3,149,924 $ 1,010 December 4, 2018 January 15, 2019 2,847,150 $ 890 August 22, 2018 October 15, 2018 2,457,119 $ 769 June 4, 2018 July 16, 2018 2,149,863 $ 662 March 6, 2018 April 16, 2018 1,674,841 $ 493 On January 28, 2020 , we declared a quarterly cash dividend of $0.34375 per share of our Series A Preferred Stock, or portion thereof for issuances during the period from January 1, 2020 to March 31, 2020. As a result, $0.114583 per share was paid on February 18, 2020 to holders of record of Series A Preferred Stock at the close of business on February 5, 2020 , $0.114583 per share will be paid on March 16, 2020 to holders of record of Series A Preferred Stock at the close of business on March 5, 2020 , and $0.114583 per share will be paid on April 15, 2020 to holders of record of Series A Preferred Stock at the close of business on April 5, 2020 . Further, on March 2, 2020 , we declared a quarterly cash dividend of $0.34375 per share of our Series A Preferred Stock, or portion thereof for issuances during the period from April 1, 2020 to June 30, 2020. As a result, $0.114583 per share will be paid on May 15, 2020 to holders of record of Series A Preferred Stock at the close of business on May 5, 2020 , $0.114583 per share will be paid on June 15, 2020 to holders of record of Series A Preferred Stock at the close of business on June 5, 2020 , and $0.114583 per share will be paid on July 15, 2020 to holders of record of Series A Preferred Stock at the close of business on July 5, 2020 . Series D Preferred Stock —Since February 2020, we have been conducting a continuous public offering with respect to shares of our series D preferred stock (the "Series D Preferred Stock"), par value $25.00 per share (the "Series D Preferred Stock Stated Value"), subject to adjustment. With respect to the payment of dividends, each of the Series D Preferred Stock and Series A Preferred Stock ranks senior to our Series L Preferred Stock (as defined below) and our Common Stock. With respect to the distribution of amounts upon liquidation, dissolution or winding-up, each of the Series D Preferred Stock and Series A Preferred Stock ranks on parity with our Series L Preferred Stock, to the extent of the Series L Preferred Stock Stated Value (as defined below), and otherwise ranks senior to our Series L Preferred Stock and our Common Stock. Our Series D Preferred Stock is redeemable at the option of the holder (the "Series D Preferred Stock Holder") or CIM Commercial. The redemption schedule of the Series D Preferred Stock allows redemptions at the option of the Series D Preferred Stock Holder from the date of original issuance of any given shares of Series D Preferred Stock at the Series D Preferred Stock Stated Value, less a redemption fee applicable prior to the fifth anniversary of the issuance of such shares, plus accrued and unpaid dividends. CIM Commercial has the right to redeem the Series D Preferred Stock after the fifth anniversary of the issuance of such shares at the Series D Preferred Stock Stated Value, plus accrued and unpaid dividends. At the Company's discretion, redemptions will be paid in cash or an equal value of Common Stock based on the volume weighted average price of our Common Stock for the 20 trading days prior to the redemption. As of December 31, 2019, we had not issued any shares of Series D Preferred Stock as the offering of Series D Preferred Stock began in February 2020. Shares of Series D Preferred Stock will be recorded in permanent equity at the time of their issuance. Holders of Series D Preferred Stock are entitled to receive, if, as and when authorized by our Board of Directors, and declared by us out of legally available funds, cumulative cash dividends on each share of Series D Preferred Stock at an annual rate of 5.65% of the Series D Preferred Stock Stated Value (i.e., the equivalent of $0.35313 per share per quarter) (the “Series D Dividend”). Dividends on each share of Series D Preferred Stock begin accruing on, and are cumulative from, the date of issuance. We expect to pay the Series D Dividend in arrears on a monthly basis in accordance with the foregoing provisions, unless our results of operations, our general financing conditions, general economic conditions, applicable requirements of the MGCL or other factors make it imprudent to do so. The timing and amount of the Series D Dividend will be determined by our Board of Directors, in its sole discretion, and may vary from time to time. As of March 12, 2020 , there were 5,600 shares of Series D Preferred Stock outstanding. On March 2, 2020 , we declared a quarterly cash dividend of $0.235417 per share of our Series D Preferred Stock, or portion thereof for issuances during the period from February 1, 2020 to March 31, 2020, and declared a quarterly cash dividend of $0.353125 per share of our Series D Preferred Stock, or portion thereof for issuances during the period from April 1, 2020 to June 30, 2020. The quarterly dividend per share is lower in the first quarter as it covers a two -month period, whereas the second quarter covers a three -month period because the first issuance of the Series D Preferred Stock occurred in February 2020. These dividends will be payable as follows: $0.117708 per share to be paid on March 16, 2020 to holders of record of Series D Preferred Stock at the close of business on March 5, 2020 , $0.117708 per share to be paid on April 15, 2020 to holders of record of Series D Preferred Stock at the close of business on April 5, 2020 , $0.117708 per share to be paid on May 15, 2020 to holders of record of Series D Preferred Stock at the close of business on May 5, 2020 , $0.117708 per share to be paid on June 15, 2020 to holders of record of Series D Preferred Stock at the close of business on June 5, 2020 , and $0.117708 per share to be paid on July 15, 2020 to holders of record of Series D Preferred Stock at the close of business on July 5, 2020 . Series L Preferred Stock —On November 21, 2017 , we issued 8,080,740 shares of Series L Preferred Stock having an initial stated value of $28.37 per share ("Series L Preferred Stock Stated Value"), subject to adjustment. We received gross proceeds of $229,251,000 from the sale of the Series L Preferred Stock, which was reduced by issuance-specific offering costs, such as commissions, dealer manager fees, and other offering fees and expenses, totaling $15,928,000 , a discount of $2,946,000 , and non-issuance-specific costs of $2,532,000 . These fees have been recorded as a reduction to the gross proceeds in permanent equity. On October 22, 2019 , the Company commenced a tender offer for the purchase of up to 2,693,580 shares of Series L Preferred Stock (the "Tender Offer"), representing one-third of the then-outstanding shares of Series L Preferred Stock. The Tender Offer was oversubscribed, and pursuant to the terms of the Tender Offer, shares of Series L Preferred Stock were accepted for purchase on a pro rata basis. We repurchased 2,693,580 shares of Series L Preferred Stock at a purchase price of $29.12 per share (of which $1.39 , or $3,744,000 in the aggregate, reflects the amount of accrued and unpaid dividends on the Series L Preferred Stock as of November 20, 2019), as converted to and paid in ILS. The total cost to repurchase the tendered shares, including professional fees to complete the Tender Offer of $462,000 but excluding the dividends accrued in respect of such shares, was $75,155,000 , which was primarily funded from borrowings under the revolving credit facility (Note 7). We recognized $5,873,000 of redeemable preferred stock redemptions in our consolidated statement of operations for the year ended December 31, 2019 in connection with the Tender Offer. The shares of Series L Preferred Stock accepted for payment by the Company were restored to the status of authorized but unissued shares of preferred stock without designation as to class or series. With respect to the payment of dividends, the Series L Preferred Stock ranks senior to our Common Stock (except with respect to and only to the extent of the Initial Dividend) and junior to our Series A Preferred Stock, Series D Preferred Stock and Common Stock (with respect to and only to the extent of the Initial Dividend). With respect to the distribution of amounts upon liquidation, dissolution or winding-up, the Series L Preferred Stock ranks senior to our Common Stock, both (i) to the extent of the Series L Preferred Stock Stated Value and (ii) following payment to holders of our Common Stock of an amount equal to any unpaid Initial Dividend, to the extent of any accrued and unpaid dividends on the Series L Preferred Stock, on parity with our Series A Preferred Stock and Series D Preferred Stock, to the extent of the Series L Preferred Stock Stated Value and junior to our Series A Preferred Stock, Series D Preferred Stock and Common Stock (to the extent of the Initial Dividend), in all instances with respect to any accrued and unpaid dividends on the Series L Preferred Stock. From and after the fifth anniversary of the date of original issuance of the Series L Preferred Stock, each holder will have the right to require the Company to redeem, and the Company will also have the option to redeem (subject to certain conditions), such shares of Series L Preferred Stock at a redemption price equal to the Series L Preferred Stock Stated Value, plus, provided certain conditions are met, all accrued and unpaid distributions. Notwithstanding the foregoing, a holder of shares of our Series L Preferred Stock may require us to redeem such shares at any time prior to the fifth anniversary of the date of original issuance of the Series L Preferred Stock if (1) we do not declare and pay in full the distribution on the Series L Preferred Stock for any annual period prior to such fifth anniversary or (2) we do not declare and pay all accrued and unpaid distributions on the Series L Preferred Stock for all past dividend periods prior to the applicable holder redemption date. The applicable redemption price payable upon redemption of any Series L Preferred Stock will be made, in the Company's sole discretion, in the form of (A) cash in ILS at the then-current currency exchange rate determined in accordance with the Articles Supplementary defining the terms of the Series L Preferred Stock, (B) in equal value through the issuance of shares of Common Stock, with the value of such Common Stock to be deemed the lower of (i) the NAV per share of our Common Stock as most recently published by the Company as of the effective date of redemption and (ii) the volume-weighted average price of our Common Stock, determined in accordance with the Articles Supplementary defining the terms of the Series L Preferred Stock, or (C) in a combination of cash in ILS and our Common Stock, based on the conversion mechanisms set forth in (A) and (B), respectively. Holders of Series L Preferred Stock are entitled to receive, if, as and when authorized by our Board of Directors, and declared by us out of legally available funds, cumulative cash dividends on each share of Series L Preferred Stock at an annual rate of 5.5% of the Series L Preferred Stock Stated Value (i.e., the equivalent of $1.56035 per share per year). Dividends on each share of Series L Preferred Stock began accruing on, and are cumulative from, the date of issuance. We expect to pay dividends on the Series L Preferred Stock in arrears on an annual basis in accordance with the foregoing provisions, unless our results of operations, our general financing conditions, general economic conditions, applicable requirements of the MGCL or other factors make it imprudent to do so. If the Company fails to timely declare distributions or fails to timely pay distributions on the Series L Preferred Stock, the annual dividend rate of the Series L Preferred Stock will temporarily increase by 1.0% per year, up to a maximum rate of 8.5% per annum. However, prior to the payment of any distributions on Series L Preferred Stock in respect of a given year, the Company must first declare and pay dividends on the Common Stock in respect of such year in an aggregate amount equal to the Initial Dividend announced by our Board of Directors at the end of the prior fiscal year. On December 20, 2019, our Board of Directors announced an Initial Dividend on shares of our Common Stock for fiscal year 2020 in the aggregate amount of $4,380,644.70 . Cash dividends on our Series L Preferred Stock paid in respect of the year ended December 31, 2019 and 2018 consist of the following: Declaration Date Payment Date Number of Shares Cash Dividends (in thousands) December 3, 2019 January 16, 2020 5,387,160 $ 8,406 (1) December 4, 2018 January 17, 2019 8,080,740 $ 14,045 (2) (1) Excludes $3,744,000 , which represents a prorated cash dividend from January 1, 2019 to November 20, 2019 related to the 2,693,580 shares of Series L Preferred Stock that were repurchased in connection with the Series L Preferred Stock Tender Offer on November 20, 2019. (2) Includes $1,436,000 , which represents a prorated cash dividend from November 20, 2017 to December 31, 2017. For the year ended December 31, 2017, the accumulated dividends of $1,436,000 are included in the numerator for purposes of calculating basic and diluted net income (loss) attributable to common stockholders per share (Note 9). Until the fifth anniversary of the date of original issuance of our Series L Preferred Stock, we are prohibited from issuing any shares of preferred stock ranking senior to or on parity with the Series L Preferred Stock with respect to the payment of dividends, other distributions, liquidation, and or dissolution or winding up of the Company unless the Minimum Fixed Charge Coverage Ratio, calculated in accordance with the Articles Supplementary describing the Series L Preferred Stock, is equal to or greater than 1.25 :1.00. At December 31, 2019 and 2018 , we were in compliance with the Series L Preferred Stock Minimum Fixed Charge Coverage Ratio. In order to maintain our compliance with the Minimum Fixed Charge Coverage Ratio during the year ending December 31, 2020, for the first and second quarters of 2020, we will, subject to applicable laws and regulations under Nasdaq and the TASE and the agreement of the Operator and or the Administrator, seek to pay some or all of the asset management fees, the Base Service Fee and or reimbursements under the Master Services Agreement in respect of such quarter in shares of Common Stock. The Company may seek to do so for the third and fourth quarters of 2020 as well (subject to the agreement of the Operator and or the Administrator, as the case may be, and the approval of a special committee consisting of the independent members of the Board of Directors). |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Dividends Cash dividends per share of Common Stock paid in respect of the years ended December 31, 2019 and 2018 consist of the following: Declaration Date Payment Date Type Cash Dividend Per December 3, 2019 December 27, 2019 Regular Quarterly $ 0.075 August 8, 2019 September 18, 2019 Regular Quarterly $ 0.075 August 8, 2019 August 30, 2019 Special Cash $ 42.000 June 4, 2019 June 27, 2019 Regular Quarterly $ 0.375 February 20, 2019 March 25, 2019 Regular Quarterly $ 0.375 December 4, 2018 December 27, 2018 Regular Quarterly $ 0.375 August 22, 2018 September 25, 2018 Regular Quarterly $ 0.375 June 4, 2018 June 28, 2018 Regular Quarterly $ 0.375 March 6, 2018 March 29, 2018 Regular Quarterly $ 0.375 (1) Amounts have been adjusted to give retroactive effect to the Reverse Stock Split. On March 2, 2020 , we declared a cash dividend of $0.075 per share of our Common Stock, to be paid on March 25, 2020 to stockholders of record at the close of business on March 13, 2020 . We declared the special cash dividends detailed below to allow the common stockholders that did not participate in the share repurchases as described below to receive the economic benefit of such repurchases. Urban Partners II, LLC ("Urban II"), a fund managed by an affiliate of CIM Group, the Administrator and the Operator of CIM Commercial (each as defined in Note 14), and an affiliate of CIM REIT and CIM Urban, waived its right to receive the April 5, 2017 , June 12, 2017 , and December 18, 2017 special cash dividends. On April 5, 2017 , we declared a special cash dividend of $0.84 per share of Common Stock ( $0.28 per share prior to the Reverse Stock Split), or $601,000 in the aggregate, that was paid on April 24, 2017 to stockholders of record on April 17, 2017 . On June 12, 2017 , we declared a special cash dividend of $5.94 per share of Common Stock ( $1.98 per share prior to the Reverse Stock Split), or $4,271,000 in the aggregate, that was paid on June 27, 2017 to stockholders of record on June 20, 2017 . On December 18, 2017 , we declared a special cash dividend of $2.19 per share of Common Stock ( $0.73 per share prior to the Reverse Stock Split), or $1,575,000 in the aggregate, which was paid on January 11, 2018 to stockholders of record on December 29, 2017 . On August 30, 2019 , in connection with the Program to Unlock Embedded Value in Our Portfolio and Improve Trading Liquidity of Our Common Stock, as defined in "Item 1—Business" of this Annual Report on Form 10-K, we paid a special cash dividend of $42.00 per share of Common Stock ( $14.00 per share of Common Stock prior to the Reverse Stock Split) (the “Special Dividend”), or $613,294,000 in the aggregate, to stockholders of record at the close of business on August 19, 2019. The Special Dividend was funded primarily by the net proceeds (after the repayment of debt) received from the sale of ten properties during 2019 (Note 3) and borrowings on our revolving credit facility. Share Repurchases On June 12, 2017 , we repurchased, in a privately negotiated transaction, canceled and retired 8,727,272 shares of Common Stock from Urban II ( 26,181,818 shares of Common Stock prior to the Reverse Stock Split). The aggregate purchase price was $576,000,000 , or $66.00 per share of Common Stock ( $22.00 per share of Common Stock prior to the Reverse Stock Split). We funded the repurchase using available cash from asset sales and short-term borrowings on our unsecured credit facility. As a result of the repurchase, our stockholders' equity was reduced by the amount we paid for the repurchased shares and the related expenses. The Company paid a special cash dividend, as described above, on June 27, 2017 that allowed stockholders that did not participate in the June 12, 2017 private repurchase to receive the economic benefit of such repurchase. On December 18, 2017 , we repurchased, in a privately negotiated transaction, canceled and retired 4,696,969 shares of Common Stock from Urban II ( 14,090,909 shares of Common Stock prior to the Reverse Stock Split). The aggregate purchase price was $310,000,000 , or $66.00 per share of Common Stock ( $22.00 per share of Common Stock prior to the Reverse Stock Split). We funded the repurchase using available cash from asset sales. As a result of the repurchase, our stockholders' equity was reduced by the amount we paid for the repurchased shares and the related expenses. The Company paid a special cash dividend, as described above, on January 11, 2018 that allowed stockholders that did not participate in the December 18, 2017 private repurchase to receive the economic benefit of such repurchase. Series A Preferred Warrants Prior to February 2020, the Series A Preferred Stock was sold as a unit that included one share of Series A Preferred Stock (Note 10) and one Series A Preferred Warrant (Note 10) which allowed holders of Series A Preferred Warrants to purchase 0.25 of a share of Common Stock depending on when such warrants were issued. The Series A Preferred Warrants are exercisable beginning on the first anniversary of the date of their original issuance until and including the fifth anniversary of the date of such issuance. At the time of issuance, the exercise price of each Series A Preferred Warrant is at a 15.0% premium to the per share estimated NAV of our Common Stock most recently published and designated as the Applicable NAV by us at the time of issuance of such Series A Preferred Warrants. However, in accordance with the terms of the Series A Preferred Warrants, the exercise price of each Series A Preferred Warrant issued prior to the Reverse Stock Split was automatically adjusted to reflect the effect of the Reverse Stock Split and, in the discretion of our Board of Directors, the exercise price and the number of shares issuable upon exercise of each Series A Preferred Warrant issued prior to the Special Dividend was adjusted to reflect the effect of the Special Dividend. Proceeds and expenses from the sale of the Series A Preferred Units are allocated to the Series A Preferred Stock and Series A Preferred Warrants using their relative fair values on the date of issuance. As of December 31, 2019 , we had issued 4,484,376 Series A Preferred Warrants in connection with our offering of Series A Preferred Units and allocated net proceeds of $586,000 , after specifically identifiable offering costs and allocated general offering costs, to the Series A Preferred Warrants in permanent equity. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Hedges of Interest Rate Risk In order to manage financing costs and interest rate exposure related to the one-month LIBOR indexed variable rate borrowings, on August 13, 2015, we entered into ten interest rate swap agreements with multiple counterparties totaling $385,000,000 of notional value. These swap agreements became effective on November 2, 2015. During the year ended December 31, 2017 , we repaid $215,000,000 of outstanding one-month LIBOR indexed variable rate borrowings and we terminated seven interest rate swaps with an aggregate notional value of $215,000,000 , for which we received termination payments, net of fees, of $973,000 . On December 28, 2018 , we repaid $40,000,000 of outstanding one-month LIBOR indexed variable rate borrowings and we terminated one interest rate swap with a notional value of $50,000,000 , for which we received a termination payment, net of fees, of $684,000 . On March 11, 2019 , we repaid $120,000,000 of outstanding one-month LIBOR indexed variable rate borrowings (Note 7) and we terminated our two remaining interest rate swaps with an aggregate notional value of $120,000,000 , for which we received aggregate termination payments, net of fees, of $1,302,000 . The fair value of our two remaining swaps at the time of termination was $1,421,000 resulting in a net loss of $119,000 , which was recorded as a net increase to interest expense on our consolidated statement of operations for the year ended December 31, 2019 . Each of our interest rate swap agreements initially met the criteria for cash flow hedge accounting treatment and we had designated the interest rate swap agreements as cash flow hedges of the risk of variability attributable to changes in the one-month LIBOR. Accordingly, the interest rate swaps were recorded on our consolidated balance sheets at fair value, and prior to August 1, 2018, the changes in the fair value of the swaps were recorded in OCI and reclassified to earnings as an adjustment to interest expense as interest became receivable or payable (Note 2). On July 31, 2018, we determined the hedged forecasted transaction was no longer probable of occurring so all subsequent changes in the fair value of our interest rate swaps were included in interest expense on our consolidated statements of operations. The balance in AOCI as of July 31, 2018 was reclassified to earnings as an adjustment to interest expense on our consolidated statements of operations as the originally designated forecasted transaction affected earnings. For the years ended December 31, 2019 and 2018 , $1,806,000 and $1,552,000 , respectively, was reclassified from AOCI and decreased interest expense on our consolidated statements of operations, which, during the year ended December 31, 2019 , included a write off of $1,580,000 at the time our two remaining interest rate swaps were terminated. Beginning on August 1, 2018, changes in the fair value of the swaps were recorded in interest expense on our consolidated statements of operations. For the years ended December 31, 2019 and 2018 , $209,000 and $1,728,000 , respectively, was included as an increase in interest expense on our consolidated statements of operations related to the change in the fair value of our interest rate swaps. Credit-Risk-Related Contingent Features Each of our interest rate swap agreements contained a provision under which we could also be declared in default under such agreements if we defaulted on the revolving credit facility or if we defaulted on the term loan facility. As of March 11, 2019 , the date of termination of such swaps, and December 31, 2018 , there have been no events of default under our interest rate swap agreements. Impact of Hedges on AOCI and Consolidated Statements of Operations The changes in the balance of each component of AOCI related to our interest rate swaps designated as cash flow hedges are as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Accumulated other comprehensive income (loss), at beginning of period $ 1,806 $ 1,631 $ (509 ) Other comprehensive income before reclassifications — 1,973 361 Amounts reclassified (to) from accumulated other comprehensive income (loss) (1) (1,806 ) (1,798 ) 1,779 Net current period other comprehensive income (loss) (1,806 ) 175 2,140 Accumulated other comprehensive income, at end of period $ — $ 1,806 $ 1,631 (1) The amounts from AOCI were reclassified as a (decrease) increase to interest expense in our consolidated statements of operations. Reclassifications from AOCI As of July 31, 2018, the hedged forecasted transaction was no longer probable of occurring so the interest rate swaps were no longer eligible for hedge accounting and all future changes in fair value of the interest rate swaps were recorded in interest expense on our consolidated statements of operations and no further amounts were deferred into AOCI. The balance in AOCI as of July 31, 2018 was reclassified to earnings as an adjustment to interest expense on our consolidated statements of operations as the originally designated forecasted transaction affected earnings. On March 11, 2019 , the remaining balance in AOCI was reclassified to earnings as a decrease to interest expense on our consolidated statements of operations in connection with the termination of our two remaining interest rate swaps. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS Our derivative financial instruments (Note 12) were measured at fair value on a recurring basis and were presented on our consolidated balance sheets at fair value, on a gross basis, excluding accrued interest. The table below presents the fair value of our derivative financial instruments as well as their classification on our consolidated balance sheets: December 31, Balance Sheet 2019 2018 Level Location (in thousands) Assets: Interest rate swaps $ — $ 1,630 2 Other assets Interest Rate Swaps —We estimated the fair value of our interest rate swaps by calculating the credit-adjusted present value of the expected future cash flows of each swap. The calculation incorporated the contractual terms of the derivatives, observable market interest rates which we considered to be Level 2 inputs, and credit risk adjustments, if any, to reflect the counterparty's as well as our own nonperformance risk. The estimated fair values of those financial instruments which are not recorded at fair value on a recurring basis on our consolidated balance sheets are as follows: December 31, 2019 December 31, 2018 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Level (in thousands) Assets: SBA 7(a) loans receivable, subject to loan-backed notes $ 27,595 $ 30,076 $ 37,031 $ 38,357 3 SBA 7(a) loans receivable, subject to credit risk 27,802 29,794 29,748 30,630 3 SBA 7(a) loans receivable, subject to secured borrowings 12,682 12,780 16,469 16,706 3 Liabilities: Mortgages payable (1) 96,926 99,764 386,923 377,364 3 Junior subordinated notes 25,299 24,406 25,215 24,462 3 (1) The December 31, 2018 carrying amount and estimated fair value of mortgages payable exclude one mortgage loan with a carrying value of $28,018,000 that had been classified as liabilities associated with assets held for sale, net, on our consolidated balance sheet at December 31, 2018 (Notes 3 and 7). Management's estimation of the fair value of our financial instruments other than our interest rate swaps is based on a Level 3 valuation in the fair value hierarchy established for disclosure of how a company values its financial instruments. In general, quoted market prices from active markets for the identical financial instrument (Level 1 inputs), if available, should be used to value a financial instrument. If quoted prices are not available for the identical financial instrument, then a determination should be made if Level 2 inputs are available. Level 2 inputs include quoted prices for similar financial instruments in active markets for identical or similar financial instruments in markets that are not active (i.e., markets in which there are few transactions for the financial instruments, the prices are not current, price quotations vary substantially, or in which little information is released publicly). There is limited reliable market information for our financial instruments and we utilize other methodologies based on unobservable inputs for valuation purposes since there are no Level 1 or Level 2 inputs available. Accordingly, Level 3 inputs are used to measure fair value. In general, estimates of fair value may differ from the carrying amounts of the financial assets and liabilities primarily as a result of the effects of discounting future cash flows. Considerable judgment is required to interpret market data and develop estimates of fair value. Accordingly, the estimates presented are made at a point in time and may not be indicative of the amounts we could realize in a current market exchange. The carrying amounts of our secured borrowings—government guaranteed loans, SBA 7(a) loan-backed notes and revolving credit facility approximate their fair values, as the interest rates on these securities are variable and approximate current market interest rates. SBA 7(a) Loans Receivable, Subject to Loan-Backed Notes —These loans receivable represent the unguaranteed portions of loans originated under the SBA 7(a) Program which were transferred to a trust and are held as collateral in connection with a securitization transaction. The proceeds from the transfer have been recorded as SBA 7(a) loan-backed notes payable. In order to determine the estimated fair value of these loans receivable, we use a present value technique for the anticipated future cash flows using certain assumptions. At December 31, 2019 , our assumptions included discount rates ranging from 5.25% to 7.25% and prepayment rates ranging from 13.41% to 16.80% . At December 31, 2018 , our assumptions included discount rates ranging from 6.75% to 9.25% and prepayment rates ranging from 9.59% to 17.50% . SBA 7(a) Loans Receivable, Subject to Credit Risk —Loans receivable were initially recorded at estimated fair value at the Acquisition Date. Loans receivable originated subsequent to the Acquisition Date are recorded at cost upon origination and adjusted by net loan origination fees and discounts. In order to determine the estimated fair value of our loans receivable, we use a present value technique for the anticipated future cash flows using certain assumptions. At December 31, 2019 , our assumptions included discount rates ranging from 5.25% to 7.75% and prepayment rates ranging from 9.85% to 17.50% . At December 31, 2018 , our assumptions included discount rates ranging from 6.75% to 9.75% and prepayment rates ranging from 4.91% to 17.50% . SBA 7(a) Loans Receivable, Subject to Secured Borrowings —These loans receivable represent the government guaranteed portion of loans which were sold with the proceeds received from the sale reflected as secured borrowings—government guaranteed loans. There is no credit risk associated with these loans since the SBA has guaranteed payment of the principal. In order to determine the estimated fair value of these loans receivable, we use a present value technique for the anticipated future cash flows taking into consideration the lack of credit risk. At December 31, 2019 , our assumptions included discount rates ranging from 6.75% to 7.50% and prepayment rates ranging from 11.77% to 16.80% . At December 31, 2018 , our assumptions included discount rates ranging from 8.75% to 9.50% and prepayment rates ranging from and 10.29% to 17.50% . Mortgages Payable —The fair values of mortgages payable are estimated based on current interest rates available for debt instruments with similar terms. The fair value of our mortgages payable is sensitive to fluctuations in interest rates. Discounted cash flow analysis is generally used to estimate the fair value of our mortgages payable, using a rate of 3.67% at December 31, 2019 , and rates ranging from 4.62% to 4.64% at December 31, 2018 . Junior Subordinated Notes —The fair value of the junior subordinated notes is estimated based on current interest rates available for debt instruments with similar terms. Discounted cash flow analysis is generally used to estimate the fair value of our junior subordinated notes. The rate used was 6.16% and 7.05% at December 31, 2019 and 2018 , respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Asset Management and Other Fees to Related Parties In December 2015, CIM Urban and CIM Capital, LLC (formerly CIM Investment Advisors, LLC), an affiliate of CIM REIT and CIM Group ("CIM Capital"), entered into an investment management agreement, pursuant to which CIM Urban engaged CIM Capital to provide certain services to CIM Urban (the “Investment Management Agreement”). On January 1, 2019, CIM Capital assigned its duties under the Investment Management Agreement to its four wholly-owned subsidiaries: CIM Capital Securities Management, LLC, a securities manager, CIM Capital RE Debt Management, LLC, a debt manager, CIM Capital Controlled Company Management, LLC, a controlled company manager, and CIM Capital Real Property Management, LLC, a real property manager. The "Operator" refers to CIM Investment Advisors, LLC from December 10, 2015 to December 31, 2018 and to CIM Capital and its four wholly-owned subsidiaries on and after January 1, 2019. CIM Urban pays asset management fees to the Operator on a quarterly basis in arrears. The fee is calculated as a percentage of the daily average adjusted fair value of CIM Urban's assets: Daily Average Adjusted Fair Value of CIM Urban's Assets Quarterly Fee From Greater of To and Including Percentage (in thousands) $ — $ 500,000 0.2500% 500,000 1,000,000 0.2375% 1,000,000 1,500,000 0.2250% 1,500,000 4,000,000 0.2125% 4,000,000 20,000,000 0.1000% The Operator earned asset management fees of $12,019,000 , $17,880,000 and $22,229,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively. At December 31, 2019 and 2018 , asset management fees of $2,356,000 and $4,540,000 , respectively, were due to the Operator. For the first and second quarters of 2020, the Company will, subject to applicable laws and regulations under Nasdaq and the TASE and the agreement of the Operator and or the Administrator, seek to pay some or all of the asset management fees, the Base Service Fee and or reimbursements under the Master Services Agreement in respect of such quarter in shares of Common Stock. The Company may seek to do so for the third and fourth quarters of 2020 as well (subject to the agreement of the Operator and or the Administrator, as the case may be, and the approval of a special committee consisting of the independent members of the Board of Directors). CIM Management, Inc. and certain of its affiliates (collectively, the "CIM Management Entities"), all affiliates of CIM REIT and CIM Group, provide property management, leasing, and development services to CIM Urban. The CIM Management Entities earned property management fees, which are included in rental and other property operating expenses, totaling $2,562,000 , $4,365,000 and $5,034,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively. CIM Urban also reimbursed the CIM Management Entities $5,852,000 , $6,065,000 and $8,465,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively, for onsite management costs incurred on behalf of CIM Urban, which are included in rental and other property operating expenses. The CIM Management Entities earned leasing commissions of $658,000 , $1,548,000 and $982,000 for the years ended December 31, 2019 , 2018 , and 2017 , respectively, which were capitalized to deferred charges. In addition, the CIM Management Entities earned construction management fees of $525,000 , $580,000 and $1,654,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively, which were capitalized to investments in real estate. At December 31, 2019 and 2018 , fees payable and expense reimbursements due to the CIM Management Entities of $4,107,000 and $3,202,000 , respectively, are included in due to related parties. Also included in due to related parties as of December 31, 2019 and 2018 , were $97,000 and $315,000 , respectively, due to the CIM Management Entities and certain of its affiliates. On March 11, 2014, CIM Commercial and its subsidiaries entered into a master services agreement (the "Master Services Agreement") with CIM Service Provider, LLC (the "Administrator"), an affiliate of CIM Group, pursuant to which the Administrator has agreed to provide, or arrange for other service providers to provide, management and administration services to CIM Commercial and its subsidiaries. Pursuant to the Master Services Agreement, we appointed an affiliate of CIM Group as the administrator of Urban Partners GP, LLC. Under the Master Services Agreement, CIM Commercial pays a base service fee (the "Base Service Fee") to the Administrator initially set at $1,000,000 per year (subject to an annual escalation by a specified inflation factor beginning on January 1, 2015), payable quarterly in arrears. For the years ended December 31, 2019 , 2018 and 2017 , the Administrator earned a Base Service Fee of $1,102,000 , $1,079,000 and $1,060,000 , respectively. In addition, pursuant to the terms of the Master Services Agreement, the Administrator may receive compensation and or reimbursement for performing certain services for CIM Commercial and its subsidiaries that are not covered by the Base Service Fee. During the years ended December 31, 2019 , 2018 and 2017 , such services performed by the Administrator and its affiliates included accounting, tax, reporting, internal audit, legal, compliance, risk management, IT, human resources, corporate communications, and from and after September 2018, operational and on-going support in connection with our registered public offering of Series A Preferred Units, where each Series A Preferred Unit consisted of one share of Series A Preferred Stock and one Series A Preferred Warrant. The Administrator's compensation is based on the salaries and benefits of the employees of the Administrator and or its affiliates who performed these services (allocated based on the percentage of time spent on the affairs of CIM Commercial and its subsidiaries). For the years ended December 31, 2019 , 2018 and 2017 , we expensed $2,577,000 , $2,783,000 , and $3,065,000 , respectively, for such services which are included in asset management and other fees to related parties. At December 31, 2019 and 2018 , $1,673,000 and $1,490,000 was due to the Administrator, respectively, for such services. On January 1, 2015, we entered into a Staffing and Reimbursement Agreement with CIM SBA Staffing, LLC ("CIM SBA"), an affiliate of CIM Group, and our subsidiary, PMC Commercial Lending, LLC. The agreement provides that CIM SBA will provide personnel and resources to us and that we will reimburse CIM SBA for the costs and expenses of providing such personnel and resources. For the years ended December 31, 2019 , 2018 and 2017 , we incurred expenses related to services subject to reimbursement by us under this agreement of $2,382,000 , $2,445,000 and $3,464,000 , respectively, which are included in asset management and other fees to related parties for lending segment costs, and $223,000 , $264,000 and $433,000 , respectively, for corporate services, which are included in asset management and other fees to related parties. In addition, for the years ended December 31, 2019 , 2018 and 2017 , we deferred personnel costs of $112,000 , $330,000 and $429,000 , respectively, associated with services provided for originating loans. At December 31, 2019 and 2018 , $1,029,000 and $1,347,000 , respectively, was due to CIM SBA for costs and expenses of providing such personnel and resources. On May 10, 2018, the Company executed a wholesaling agreement (the "Wholesaling Agreement") with International Assets Advisors, LLC ("IAA") and CCO Capital, LLC ("CCO Capital"). CCO Capital is a registered broker dealer and is under common control with the Operator and the Administrator. IAA was the exclusive dealer manager for the Company’s public offering of Series A Preferred Units until May 31, 2019. Under the Wholesaling Agreement, among other things, CCO Capital, in its capacity as the wholesaler for the offering, assisted IAA with the sale of Series A Preferred Units. In exchange for such services, IAA paid CCO Capital a fee equal to 2.75% of the selling price of each Series A Preferred Unit for which a sale was completed, reduced by any applicable fee reallowances payable to soliciting dealers pursuant to separate soliciting dealer agreements between IAA and soliciting dealers. The foregoing fee was reduced, and could have been exceeded, by a fixed monthly payment by CCO Capital to IAA for IAA’s services in connection with periodic closings and settlements for the offering. On May 31, 2019, the Company, IAA and CCO Capital entered into an Amendment, Assignment and Assumption Agreement (the “Assignment Agreement”), pursuant to which CCO Capital assumed all of the rights and obligations of IAA under the dealer manager agreement, dated as of June 28, 2016, as amended, by and between the Company and IAA. As a result of the Assignment Agreement, CCO Capital became the exclusive dealer manager for the Company’s public offering of the Series A Preferred Units effective as of May 31, 2019. In connection with the execution of the Assignment Agreement, the Company terminated the Wholesaling Agreement effective as of May 31, 2019. At December 31, 2019 and 2018 , $621,000 and $200,000 , respectively, was included in deferred costs for CCO Capital fees, of which $169,000 and $138,000 , respectively, was included in due to related parties. CCO Capital incurred issuance-specific costs of $700,000 , which were allocated to the Series A Preferred Stock for the year ended December 31, 2019 . The Company’s offering of the Series A Preferred Units ended at the end of January 2020. On January 28, 2020, the Company entered into the Second Amended and Restated Dealer Manager Agreement, pursuant to which CCO Capital acts as the exclusive dealer manager for the Company’s public offering of Series A Preferred Stock and Series D Preferred Stock. In connection with such agreement, the Wholesaling Agreement and the Assignment Agreement were terminated. Equity Transactions On June 12, 2017 , we repurchased, in a privately negotiated transaction, canceled and retired 8,727,272 shares of Common Stock from Urban II. The aggregate purchase price was $576,000,000 , or $66.00 per share (Note 11). On December 18, 2017 , we repurchased, in a privately negotiated transaction, canceled and retired 4,696,969 shares of Common Stock from Urban II. The aggregate purchase price was $310,000,000 , or $66.00 per share (Note 11). Other On October 1, 2015, an affiliate of CIM Group entered into a 5 -year lease renewal with respect to a property owned by the Company, which lease was amended to a month-to-month term in February 2019. For the years ended December 31, 2019 , 2018 and 2017 , we recorded rental and other property income related to this tenant of $112,000 , $108,000 and $108,000 , respectively. On May 15, 2019, CIM Group entered into an approximately eleven -year lease for approximately 32,000 rentable square feet with respect to a property owned by the Company. The lease was amended on August 7, 2019 to reduce the rentable square feet to approximately 30,000 rentable square feet. For the years ended December 31, 2019 , 2018 and 2017 , we recorded rental and other property income related to this tenant of $932,000 , $0 and $0 , respectively. In October 2019, our Administrator acquired 2,468,390 shares of our Common Stock, representing approximately 16.9% of the outstanding shares of our Common Stock at such time, for $19.1685 per share from an affiliate of CIM Group in a private transaction. As of March 12, 2020 , CIM Group, its affiliates, and our officers and directors have an aggregate economic interest in approximately 19.6% of the outstanding shares of our Common Stock. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Loan Commitments —Commitments to extend credit are agreements to lend to a customer provided the terms established in the contract are met. Our outstanding loan commitments to fund loans were $9,696,000 at December 31, 2019 and are for prime-based loans to be originated by our subsidiary engaged in SBA 7(a) Program lending, the government guaranteed portion of which is intended to be sold. Commitments generally have fixed expiration dates. Since some commitments are expected to expire without being drawn upon, total commitment amounts do not necessarily represent future cash requirements. General —In connection with the ownership and operation of real estate properties, we have certain obligations for the payment of tenant improvement allowances and lease commissions in connection with new leases and renewals. CIM Commercial had a total of $7,747,000 in future obligations under leases to fund tenant improvements and other future construction obligations at December 31, 2019 . At December 31, 2019 , $2,814,000 was funded to reserve accounts included in restricted cash on our consolidated balance sheet for these tenant improvement obligations in connection with the mortgage loan agreement entered into in June 2016. Employment Agreements —We have employment agreements with two of our officers. Under certain circumstances, each of these employment agreements provides for (1) severance payment equal to the annual base salary paid to the officer and (2) death and disability payments in an amount equal to two times and one time, respectively, the annual base salary paid to the officers. Litigation —We are not currently involved in any material pending or threatened legal proceedings nor, to our knowledge, are any material legal proceedings currently threatened against us, other than routine litigation arising in the ordinary course of business. In the normal course of business, we are periodically party to certain legal actions and proceedings involving matters that are generally incidental to our business. While the outcome of these legal actions and proceedings cannot be predicted with certainty, in management's opinion, the resolution of these legal proceedings and actions will not have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock. In September 2018, we filed a lawsuit against the City and County of San Francisco seeking a refund of the $11,845,000 in penalties, interest and legal fees paid by us for real property transfer tax allegedly due for a transaction in a prior year. We disputed that such penalties, interest and legal fees were payable but, in order to contest the asserted tax obligations, we had to pay such amounts to the City and County of San Francisco in August 2017. We have been vigorously pursuing this litigation and intend to continue to do so. A subsidiary of the Company is a defendant in a lawsuit in connection with injuries sustained by a third-party contractor at a property previously owned by such subsidiary. While it is possible that a loss may be incurred, we are unable to estimate a range of potential losses due to the complexity and current status of the lawsuit. However, we maintain insurance coverage to mitigate the impact of adverse exposures in lawsuits of this nature and do not expect this lawsuit to have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock. SBA Related —If the SBA establishes that a loss on an SBA guaranteed loan is attributable to significant technical deficiencies in the manner in which the loan was originated, funded or serviced under the SBA 7(a) Program, the SBA may seek recovery of the principal loss related to the deficiency from us. With respect to the guaranteed portion of SBA loans that have been sold, the SBA will first honor its guarantee and then seek compensation from us in the event that a loss is deemed to be attributable to technical deficiencies. Based on historical experience, we do not expect that this contingency is probable to be asserted. However, if asserted, it could have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock. Environmental Matters —In connection with the ownership and operation of real estate properties, we may be potentially liable for costs and damages related to environmental matters, including asbestos-containing materials. We have not been notified by any governmental authority of any noncompliance, liability, or other claim in connection with any of the properties, and we are not aware of any other environmental condition with respect to any of the properties that management believes will have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock. Rent Expense —Rent expense under a ground lease for a property that was sold in August 2017, which includes straight-line rent and amortization of acquired below-market ground lease, was $0 , $0 and $1,168,000 the years ended December 31, 2019 , 2018 and 2017 , respectively. We lease office space in Dallas, Texas under a lease which, as amended, expires in May 2020. In determining whether this contract constitutes a lease, we determined that the office space is explicitly identified in the contract. Additionally, so long as payments are made timely under this lease, we as the tenant have the right to obtain substantially all the economic benefits from the use of this identified asset and can direct how and for what purpose the office space is used to conduct our operations. In January 2020, CIM Group, as successor in interest to CIM Commercial, entered into an amendment to this office lease, which commences in June 2020 upon the expiration of the existing lease. As of December 31, 2019 , the right-of-use asset and lease liability balance was approximately $106,000 . The right-of-use asset is included within other assets and the lease liability is included within other liabilities on our consolidated balance sheet. We recorded rent expense of $294,000 , $253,000 and $228,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively, in general and administrative expenses on our consolidated statements of operations. At December 31, 2019 , our scheduled future noncancelable minimum lease payments was $106,000 for the year ending December 31, 2020. |
FUTURE MINIMUM LEASE RENTALS
FUTURE MINIMUM LEASE RENTALS | 12 Months Ended |
Dec. 31, 2019 | |
Leases, Operating [Abstract] | |
FUTURE MINIMUM LEASE RENTALS | FUTURE MINIMUM LEASE RENTALS Future minimum rental revenue under long-term operating leases at December 31, 2019 , excluding tenant reimbursements of certain costs, are as follows: Years Ending December 31, Total (in thousands) 2020 $ 47,459 2021 41,978 2022 38,691 2023 35,201 2024 33,929 Thereafter 50,809 $ 248,067 |
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | CONCENTRATIONS Tenant Revenue Concentrations —Rental and other property income from Kaiser Foundation Health Plan, Incorporated ("Kaiser"), which occupied space in two of our Oakland, California properties, accounted for approximately 17.3% , 12.9% and 10.8% of our office segment revenues for the years ended December 31, 2019 , 2018 and 2017 , respectively. At December 31, 2019 and 2018 , $23,000 and $331,000 , respectively, was due from Kaiser. Rental and other property income from the U.S. General Services Administration and other government agencies (collectively, "Governmental Tenants"), which primarily occupied space in our properties located in Washington, D.C., accounted for approximately 17.1% , 24.6% and 29.4% of our office segment revenues for the years ended December 31, 2019 , 2018 and 2017 , respectively. At December 31, 2019 and 2018 , $282,000 and $2,899,000 , respectively, was due from Governmental Tenants. Geographical Concentrations of Investments in Real Estate —As of December 31, 2019 , 2018 and 2017 , we owned 8 , 16 and 15 office properties, respectively; one hotel property; one , two and two parking garages, respectively; and one , two , and two development sites, respectively, one of which is being used as a parking lot. As of December 31, 2019 , 2018 and 2017 , these properties were located in two states, and in Washington, D.C. as of December 31, 2018 and 2017 . Our revenue concentrations from properties are as follows: Year Ended December 31, 2019 2018 2017 California 80.6 % 76.0 % 63.3 % Texas 5.5 3.3 6.9 Washington, D.C. 13.9 20.7 25.1 North Carolina — — 3.1 New York — — 1.6 100.0 % 100.0 % 100.0 % Our real estate investments concentrations from properties are as follows: December 31, 2019 2018 California (1) 94.4 % 70.6 % Texas 5.6 2.2 Washington, D.C. — 27.2 100.0 % 100.0 % (1) The December 31, 2018 percentage for California includes the assets of 260 Townsend Street, which was classified as held for sale on our consolidated balance sheet at December 31, 2018 and sold in March 2019 (Note 3). |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES We have elected to be taxed as a REIT under the Code. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we distribute at least 90% of our taxable income to our stockholders. As a REIT, we generally will not be subject to corporate level federal income tax on net income that is currently distributed to stockholders. We have wholly-owned TRS's which are subject to federal and state income taxes. The income generated from the TRS's is taxed at normal corporate rates. The provision for income taxes results in effective tax rates that differ from federal and state statutory rates. A reconciliation of the provision for income tax attributable to the TRSs' income from continuing operations computed at federal statutory rates to the income tax provision reported in the financial statements is as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Income from continuing operations before income taxes for TRSs $ 4,414 $ 4,962 $ 4,878 Expected federal income tax provision $ 927 $ 1,042 $ 1,658 State income taxes 21 35 27 Change in valuation allowance — — (37 ) Other (66 ) (152 ) (272 ) Income tax provision $ 882 $ 925 $ 1,376 The components of our net deferred tax asset, which are included in other assets, are as follows: December 31, 2019 2018 (in thousands) Deferred tax assets: Net operating losses $ 39 $ 37 Secured borrowings—government guaranteed loans 132 198 Other 166 185 Total gross deferred tax assets 337 420 Valuation allowance (38 ) (38 ) 299 382 Deferred tax liabilities: Loans receivable (210 ) (255 ) (210 ) (255 ) Deferred tax asset, net $ 89 $ 127 The net operating loss carryforwards at December 31, 2019 and 2018 were generated by TRSs and are available to offset future taxable income of these TRSs. The net operating loss carryforwards expire from 2026 to 2033. The periods subject to examination for our federal and state income tax returns are 2016 through 2019. As of December 31, 2019 and 2018 , no reserves for uncertain tax positions have been established and we do not anticipate any material changes in the amount of unrecognized tax benefits recorded to occur within the next 12 months. The Tax Cuts and Jobs Act of 2017, signed into law in late December 2017, made sweeping changes to provisions of the Code applicable to businesses. Management has reviewed these statutory changes and determined that the impact to our consolidated financial statements is not material. |
SEGMENT DISCLOSURE
SEGMENT DISCLOSURE | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT DISCLOSURE | SEGMENT DISCLOSURE In accordance with ASC Topic 280, Segment Reporting , our reportable segments during the years ended December 31, 2019 and 2018 consist of two types of commercial real estate properties, namely, office and hotel, as well as a segment for our lending business. Our reportable segments during the year ended December 31, 2017 consist of three types of commercial real estate properties, namely, office, hotel and multifamily, as well as a segment for our lending business. Management internally evaluates the operating performance and financial results of the segments based on net operating income. We also have certain general and administrative level activities, including public company expenses, legal, accounting, and tax preparation that are not considered separate operating segments. The reportable segments are accounted for on the same basis of accounting as described in Note 2. For our real estate segments, we define net operating income as rental and other property income and expense reimbursements less property related expenses, and excludes non-property income and expenses, interest expense, depreciation and amortization, corporate related general and administrative expenses, gain (loss) on sale of real estate, gain (loss) on early extinguishment of debt, impairment of real estate, transaction costs, and provision for income taxes. For our lending segment, we define net operating income as interest income net of interest expense and general overhead expenses. The net operating income of our segments for the years ended December 31, 2019 , 2018 and 2017 is as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Office: Revenues $ 86,948 $ 147,811 $ 173,853 Property expenses: Operating 36,638 54,654 68,650 General and administrative 521 2,350 981 Total property expenses 37,159 57,004 69,631 Segment net operating income—office 49,789 90,807 104,222 Hotel: Revenues 38,748 38,789 38,585 Property expenses: Operating 26,290 25,263 25,059 General and administrative 134 32 77 Total property expenses 26,424 25,295 25,136 Segment net operating income—hotel 12,324 13,494 13,449 Multifamily: Revenues — — 13,400 Property expenses: Operating — — 7,559 General and administrative — — 393 Total property expenses — — 7,952 Segment net operating income—multifamily — — 5,448 Lending: Revenues 10,964 10,870 10,221 Lending expenses: Interest expense 1,814 1,412 414 Fees to related party 2,382 2,445 3,464 General and administrative 1,630 1,857 1,010 Total lending expenses 5,826 5,714 4,888 Segment net operating income—lending 5,138 5,156 5,333 Total segment net operating income $ 67,251 $ 109,457 $ 128,452 A reconciliation of our segment net operating income to net income attributable to the Company for the years ended December 31, 2019 , 2018 and 2017 is as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Total segment net operating income $ 67,251 $ 109,457 $ 128,452 Interest and other income 3,329 — — Asset management and other fees to related parties (15,921 ) (22,006 ) (26,787 ) Interest expense (10,361 ) (25,482 ) (34,070 ) General and administrative (4,069 ) (4,928 ) (3,018 ) Transaction costs (574 ) (938 ) (11,862 ) Depreciation and amortization (27,374 ) (53,228 ) (58,364 ) Loss on early extinguishment of debt (29,982 ) (808 ) (8,215 ) Impairment of real estate (69,000 ) — (13,100 ) Gain on sale of real estate 433,104 — 408,098 Income before provision for income taxes 346,403 2,067 381,134 Provision for income taxes (882 ) (925 ) (1,376 ) Net income 345,521 1,142 379,758 Net loss (income) attributable to noncontrolling interests 152 (21 ) (21 ) Net income attributable to the Company $ 345,673 $ 1,121 $ 379,737 The condensed assets for each of the segments as of December 31, 2019 and 2018 , along with capital expenditures and loan originations for the years ended December 31, 2019 , 2018 , and 2017 are as follows: December 31, 2019 2018 (in thousands) Condensed assets: Office (1) $ 460,951 $ 1,094,269 Hotel 104,029 105,845 Lending 82,140 97,465 Non-segment assets 20,472 44,822 Total assets $ 667,592 $ 1,342,401 Year Ended December 31, 2019 2018 2017 (in thousands) Capital expenditures (2): Office (1) $ 16,006 $ 12,669 $ 24,907 Hotel 2,382 2,237 478 Multifamily — — 693 Total capital expenditures 18,388 14,906 26,078 Loan originations 39,592 74,234 76,316 Total capital expenditures and loan originations $ 57,980 $ 89,140 $ 102,394 (1) The December 31, 2018 balances include the assets of 260 Townsend Street, which was classified as held for sale on our consolidated balance sheet at December 31, 2018 and sold in March 2019 (Note 3). (2) Represents additions and improvements to real estate investments, excluding acquisitions. Includes the activity for dispositions through their respective disposition dates. |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The following is a summary of quarterly financial information for the year ended December 31, 2019 : Three Months Ended March 31, June 30, September 30, December 31, (in thousands, except per share amounts) 2019 Revenues $ 47,277 $ 36,856 $ 29,215 $ 26,641 Loss on early extinguishment of debt 25,071 4,911 — — Impairment of real estate 66,200 2,800 — — Gain on sale of real estate 377,581 55,221 302 — Net income (loss) 291,623 52,567 2,856 (1,525 ) Net income (loss) attributable to the Company 291,797 52,566 2,848 (1,538 ) Redeemable preferred stock dividends declared or accumulated (4,162 ) (4,302 ) (4,470 ) (4,161 ) Redeemable preferred stock redemptions (4 ) (4 ) — (5,874 ) Net income (loss) attributable to common stockholders 287,631 48,260 (1,622 ) (11,573 ) NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS PER SHARE (1) (2): Basic $ 19.70 $ 3.31 $ (0.11 ) $ (0.79 ) Diluted $ 18.90 $ 3.20 $ (0.11 ) $ (0.79 ) Weighted average shares of common stock outstanding - basic 14,598 14,597 14,598 14,598 Weighted average shares of common stock outstanding - diluted 15,245 15,284 14,599 14,599 (1) EPS for the year-to-date period may differ from the sum of quarterly EPS amounts due to the required method for computing EPS in the respective periods. In addition, EPS is calculated independently for each component and may not be additive due to rounding. (2) Amounts have been adjusted to give retroactive effect to the Reverse Stock Split. The following is a summary of quarterly financial information for the year ended December 31, 2018 : Three Months Ended March 31, June 30, September 30, December 31, (in thousands except per share amounts) 2018 Revenues as previously reported (1) $ 48,398 $ 51,559 $ 47,640 $ 50,127 Bad debt expense recorded as adjustment to revenues (1) (104 ) (15 ) (33 ) (102 ) Revenues 48,294 51,544 47,607 50,025 Loss on early extinguishment of debt — — — 808 Net income (loss) 622 1,949 (529 ) (900 ) Net income (loss) attributable to the Company 618 1,937 (528 ) (906 ) Redeemable preferred stock dividends declared or accumulated (3,645 ) (3,814 ) (3,921 ) (4,043 ) Redeemable preferred stock redemptions 1 1 1 1 Net loss attributable to common stockholders (3,026 ) (1,876 ) (4,448 ) (4,948 ) NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS PER SHARE (2) (3): Basic $ (0.21 ) $ (0.13 ) $ (0.30 ) $ (0.34 ) Diluted $ (0.21 ) $ (0.13 ) $ (0.30 ) $ (0.34 ) Weighted average shares of common stock outstanding - basic 14,595 14,597 14,598 14,598 Weighted average shares of common stock outstanding - diluted 14,595 14,597 14,598 14,598 (1) Represents revenues for the three months ended March 31, June 30, September 30, and December 31, 2018 , as previously reported in the Annual Report on Form 10-K for the year ended December 31, 2018 . Under the new leasing guidance, bad debt expense associated with changes in the collectability assessment for operating leases shall be recorded as adjustments to rental and other property income rather than other property operating expense (Note 2). (2) EPS for the year-to-date period may differ from the sum of quarterly EPS amounts due to the required method for computing EPS in the respective periods. In addition, EPS is calculated independently for each component and may not be additive due to rounding. (3) Amounts have been adjusted to give retroactive effect to the Reverse Stock Split. |
SCHEDULE III - REAL ESTATE AND
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 (in thousands) Initial Cost Net Gross Amount at Which Carried (2) Property Name, Encumbrances Land Building Land Building Total Acc. Year Built / Year of Office 3601 S Congress Avenue Austin, TX $ — $ 9,569 $ 18,593 $ 9,833 $ 9,569 $ 28,426 $ 37,995 $ 9,041 1918/2001 2007 1 Kaiser Plaza Oakland, CA 97,100 9,261 113,619 19,802 9,261 133,421 142,682 44,659 1970/2008 2008 2 Kaiser Plaza Parking Lot Oakland, CA — 10,931 110 1,735 10,931 1,845 12,776 117 N/A 2015 11600 Wilshire Boulevard Los Angeles, CA — 3,477 18,522 2,304 3,477 20,826 24,303 5,672 1955 2010 11620 Wilshire Boulevard Los Angeles, CA — 7,672 51,999 7,242 7,672 59,241 66,913 15,731 1976 2010 4750 Wilshire Boulevard Los Angeles, CA — 16,633 28,985 3,897 16,633 32,882 49,515 4,170 1984/2014 2014 Lindblade Media Center Los Angeles, CA — 6,342 11,568 24 6,342 11,592 17,934 1,480 1930 & 1957 / 2010 2014 1130 Howard Street San Francisco, CA — 8,290 10,480 5 8,290 10,485 18,775 638 1930 / 2016 & 2017 2017 9460 Wilshire Boulevard Los Angeles, CA — 52,199 76,730 620 52,199 77,350 129,549 4,644 1959 / 2008 2018 Hotel Sheraton Grand Hotel Sacramento, CA — 3,497 107,447 122 3,497 107,569 111,066 31,158 2001 2008 Sheraton Grand Hotel Parking & Retail Sacramento, CA — 6,550 10,996 208 6,550 11,204 17,754 3,245 2001 2008 $ 97,100 $ 134,421 $ 449,049 $ 45,792 $ 134,421 $ 494,841 $ 629,262 $ 120,555 (1) These properties collateralize the revolving credit facility, which had a $153,000,000 outstanding balance as of December 31, 2019 . (2) The aggregate gross cost of property included above for federal income tax purposes approximates $661,503,000 (unaudited) as of December 31, 2019 . The following table reconciles our investments in real estate from January 1, 2017 to December 31, 2019 : Year Ended December 31, 2019 2018 2017 (in thousands) Investments in Real Estate Balance, beginning of period $ 1,344,636 $ 1,228,780 $ 2,021,494 Additions: Improvements 18,388 14,906 26,078 Property acquisitions — 128,928 18,770 Deductions: Assets held for sale — (24,832 ) — Asset sales (659,849 ) — (815,357 ) Impairment (69,000 ) — (13,100 ) Retirements (4,913 ) (3,146 ) (9,105 ) Balance, end of period $ 629,262 $ 1,344,636 $ 1,228,780 The following table reconciles the accumulated depreciation from January 1, 2017 to December 31, 2019 : Year Ended December 31, 2019 2018 2017 (in thousands) Accumulated Depreciation Balance, beginning of period $ (303,699 ) $ (271,055 ) $ (414,552 ) Additions: depreciation (22,209 ) (43,499 ) (49,427 ) Deductions: Assets held for sale — 7,709 — Asset sales 200,440 — 183,819 Retirements 4,913 3,146 9,105 Balance, end of period $ (120,555 ) $ (303,699 ) $ (271,055 ) |
SCHEDULE IV - MORTGAGE LOANS ON
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | Schedule IV—Mortgage Loans on Real Estate December 31, 2019 (dollars in thousands, except footnotes) Principal Amount of Loans Subject Geographic Number Final Carrying to Delinquent Dispersion of of Size of Loans Maturity Amount of Principal or Collateral Loans From To Interest Rate Date Range Mortgages (1) "Interest" SBA 7(a) Loans - States 2% or greater (2) (3): Indiana 17 $ 110 $ 1,000 6.50% to 7.75% 05/14/36 — 09/27/44 $ 8,620 $ — Texas 25 $ — $ 1,020 5.88% to 7.75% 01/01/21 — 10/24/44 8,086 — Ohio 24 $ — $ 800 6.75% to 7.75% 10/16/20 — 07/17/44 7,000 — Michigan 17 $ 10 $ 1,000 6.25% to 7.75% 10/10/33 — 11/22/44 5,138 — Florida 10 $ 80 $ 1,110 6.75% to 7.75% 06/29/32 — 01/26/44 4,007 — Pennsylvania (4) 5 $ 170 $ 760 6.75% to 7.75% 03/05/40 — 11/29/43 2,388 284 Illinois 7 $ 50 $ 550 6.75% to 7.75% 09/17/35 — 08/20/44 1,779 — Louisiana 4 $ 110 $ 610 6.75% to 7.75% 11/17/41 — 05/21/44 1,551 — South Carolina 4 $ 280 $ 400 6.75% to 7.75% 11/06/40 — 07/30/44 1,358 — Wisconsin (5) 7 $ — $ 530 6.75% to 8.25% 04/23/20 — 02/27/43 1,355 80 North Carolina 4 $ 70 $ 630 6.75% to 7.75% 09/08/32 — 11/25/44 1,319 — Colorado 4 $ 60 $ 540 6.50% to 7.75% 01/21/36 — 07/26/43 1,309 — Virginia 4 $ 240 $ 470 7.00% to 7.75% 07/20/37 — 12/27/44 1,283 — Mississippi 4 $ 150 $ 520 7.00% to 7.75% 08/31/29 — 08/31/43 1,206 — Alabama 5 $ 30 $ 490 6.75% to 7.75% 07/25/25 — 08/31/44 1,130 — Kentucky 5 $ 100 $ 430 7.00% to 7.75% 04/09/35 — 07/25/44 1,099 — Other 29 $ 10 $ 550 6.25% to 7.75% 05/23/20 — 02/27/45 6,148 — Government guaranteed portions (6) 1,601 — SBA 7(a) loans, subject to secured borrowings (7) 12,152 — General reserves (450 ) — 175 68,079 (8) 364 (1) Excludes general reserves of $450,000 . (2) Includes $242,000 of loans with subordinate lien positions. (3) Interest rates are variable at spreads over the prime rate unless otherwise noted. (4) Includes a loan with a retained face value of $284,000 , a valuation reserve of $116,000 and a fixed interest rate of 7.75% . (5) Includes a loan with a retained face value of $80,000 , a valuation reserve of $32,000 and a fixed interest rate of 8.25% . (6) Represents the government guaranteed portions of our SBA 7(a) loans detailed above retained by us. As there is no risk of loss to us related to these portions of the guaranteed loans, the geographic information is not presented as it is not meaningful. (7) Represents the guaranteed portion of SBA 7(a) loans which were sold with the proceeds received from the sale reflected as secured borrowings. For Federal income tax purposes, these proceeds are treated as sales and reduce the carrying value of loans receivable. (8) For Federal income tax purposes, the aggregate cost basis of our loans was approximately $54,925,000 (unaudited). Schedule IV—Mortgage Loans on Real Estate (Continued) December 31, 2019 (in thousands) Year Ended December 31, 2019 2018 2017 Balance, beginning of period $ 83,248 $ 81,056 $ 75,740 Additions during period: New loans 39,592 74,234 76,316 Other - deferral for collection of commitment fees, net of costs 802 1,587 1,706 Other - accretion of loan fees and discounts 1,303 1,026 676 Deductions during period: Collections of principal (13,886 ) (16,468 ) (17,557 ) Foreclosures (241 ) — (127 ) Cost of mortgages sold, net (42,663 ) (57,947 ) (54,973 ) Other - reclassification from secured borrowings — — (534 ) Other - bad debt expense (76 ) (240 ) (191 ) Balance, end of period $ 68,079 $ 83,248 $ 81,056 |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | Basis of Presentation —The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). |
Principles of Consolidation | Principles of Consolidation —The consolidated financial statements include the accounts of CIM Commercial and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. |
Investments in Real Estate | Investments in Real Estate —Real estate acquisitions are recorded at cost as of the acquisition date. Costs related to the acquisition of properties were expensed as incurred for acquisitions that occurred prior to October 1, 2017. For any acquisition occurring on or after October 1, 2017, we have conducted and will conduct an analysis to determine if the acquisition constitutes a business combination or an asset purchase. If the acquisition constitutes a business combination, then the transaction costs will be expensed as incurred, and if the acquisition constitutes an asset purchase, then the transaction costs will be capitalized. Investments in real estate are stated at depreciated cost. Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives as follows: Buildings and improvements 15 - 40 years Furniture, fixtures, and equipment 3 - 5 years Tenant improvements Shorter of the useful lives or the terms of the related leases We capitalize project costs, including pre-construction costs, interest expense, property taxes, insurance, and other costs directly related and essential to the development, redevelopment, or construction of a project, while activities are ongoing to prepare an asset for its intended use. Costs incurred after a project is substantially complete and ready for its intended use are expensed as incurred. Improvements and replacements are capitalized when they extend the useful life, increase capacity, or improve the efficiency of the asset. Ordinary repairs and maintenance are expensed as incurred. Investments in real estate are evaluated for impairment on a quarterly basis or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount to the future net cash flows, undiscounted and without interest, expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. The estimated fair value of the asset group identified for step two of the impairment testing under GAAP is based on either the income approach with market discount rate, terminal capitalization rate and rental rate assumptions being most critical to such analysis, or on the sales comparison approach to similar properties. Assets held for sale are reported at the lower of the asset's carrying amount or fair value, less costs to sell. |
Cash and Cash Equivalents | Cash and Cash Equivalents —Cash and cash equivalents include short-term liquid investments with initial maturities of three months or less. |
Restricted Cash | Restricted Cash —Our mortgage loan and hotel management agreements provide for depositing cash into restricted accounts reserved for capital expenditures, free rent, tenant improvement and leasing commission obligations. Restricted cash also includes cash required to be segregated in connection with certain of our loans receivable. |
Loans Receivable | Loans Receivable —Our loans receivable are carried at their unamortized principal balance less unamortized acquisition discounts and premiums, retained loan discounts and loan loss reserves. For loans originated under the Small Business Administration's ("SBA") 7(a) Guaranteed Loan Program ("SBA 7(a) Program"), we sell the portion of the loan that is guaranteed by the SBA. Upon sale of the SBA guaranteed portion of the loans, which are accounted for as sales, the unguaranteed portion of the loan retained by us is valued on a fair value basis and a discount (the "Retained Loan Discount") is recorded as a reduction in basis of the retained portion of the loan. Unamortized retained loan discounts were $7,631,000 and $7,234,000 as of December 31, 2019 and 2018 , respectively At the Acquisition Date, the carrying value of our loans was adjusted to estimated fair market value and acquisition discounts of $33,907,000 were recorded, which are being accreted to interest and other income using the effective interest method. We sold substantially all of our commercial mortgage loans with unamortized acquisition discounts of $15,951,000 to an unrelated third-party in December 2015. Acquisition discounts of $624,000 and $884,000 remained as of December 31, 2019 and 2018 , respectively. A loan receivable is generally classified as non-accrual (a "Non-Accrual Loan") if (i) it is past due as to payment of principal or interest for a period of 60 days or more, (ii) any portion of the loan is classified as doubtful or is charged-off or (iii) the repayment in full of the principal and or interest is in doubt. Generally, loans are charged-off when management determines that we will be unable to collect any remaining amounts due under the loan agreement, either through liquidation of collateral or other means. Interest income, included in interest and other income or discontinued operations, on a Non-Accrual Loan is recognized on either the cash basis or the cost recovery basis. On a quarterly basis, and more frequently if indicators exist, we evaluate the collectability of our loans receivable. Our evaluation of collectability involves significant judgment, estimates, and a review of the ability of the borrower to make principal and interest payments, the underlying collateral and the borrowers' business models and future operations in accordance with Accounting Standards Codification ("ASC") 450-20, Contingencies—Loss Contingencies , and ASC 310-10, Receivables . For the years ended December 31, 2019 , 2018 and 2017 , we recorded $66,000 , $147,000 and $97,000 of impairment on our loans receivable, respectively. There were no material loans receivable subject to credit risk which were considered to be impaired at December 31, 2019 or 2018 . We also establish a general loan loss reserve when available information indicates that it is probable a loss has occurred based on the carrying value of the portfolio and the amount of the loss can be reasonably estimated. Significant judgment is required in determining the general loan loss reserve, including estimates of the likelihood of default and the estimated fair value of the collateral. The general loan loss reserve includes those loans, which may have negative characteristics which have not yet become known to us. In addition to the reserves established on loans not considered impaired that have been evaluated under a specific evaluation, we establish the general loan loss reserve using a consistent methodology to determine a loss percentage to be applied to loan balances. These loss percentages are based on many factors, primarily cumulative and recent loss history and general economic conditions. |
Accounts Receivable | Accounts Receivable —Accounts receivable are carried net of the allowances for uncollectible amounts. Management's determination of the adequacy of these allowances is based primarily upon evaluation of historical loss experience, individual receivables, current economic conditions, and other relevant factors. The allowances are increased or decreased through the provision for bad debts. |
Deferred Rent Receivable and Charges | Deferred Rent Receivable and Charges —Deferred rent receivable and charges consist of deferred rent, deferred leasing costs, deferred offering costs (Note 10) and other deferred costs. Deferred rent receivable is $19,988,000 and $52,366,000 at December 31, 2019 and 2018 , respectively. Deferred leasing costs, which represent lease commissions and other direct costs associated with the acquisition of tenants, are capitalized and amortized on a straight-line basis over the terms of the related leases. Deferred leasing costs of $16,881,000 and $51,152,000 are presented net of accumulated amortization of $7,438,000 and $23,910,000 at December 31, 2019 and 2018 , respectively. Deferred offering costs represent direct costs incurred in connection with our offerings of Series A Preferred Units (as defined in Note 10) and, after January 2020, Series A Preferred Stock (as defined in Note 10) and Series D Preferred Stock (as defined in Note 10), excluding costs specifically identifiable to a closing, such as commissions, dealer-manager fees, and other offering fees and expenses. Generally, for a specific issuance of securities, issuance-specific offering costs are recorded as a reduction of proceeds raised on the issuance date and offering costs incurred but not directly related to a specifically identifiable closing of a security are deferred. Deferred offering costs are first allocated to each issuance of a security on a pro-rata basis equal to the ratio of the number of units or securities issued in a given issuance to the maximum number of units or securities that are expected to be issued in the related offering. In the case of the Series A Preferred Units, which were issued prior to February 2020, the issuance-specific offering costs and the deferred offering costs allocated to such issuance are further allocated to the Series A Preferred Stock (as defined in Note 10) and Series A Preferred Warrants (as defined in Note 10) issued in such issuance based on the relative fair value of the instruments on the date of issuance. The deferred offering costs allocated to the Series A Preferred Stock and Series A Preferred Warrants are reductions to temporary equity and permanent equity, respectively. |
Noncontrolling Interests | Noncontrolling Interests —Noncontrolling interests represent the interests in various properties owned by third parties. |
Redeemable Preferred Stock | Redeemable Preferred Stock —Beginning on the date of original issuance of any given shares of Series A Preferred Stock (as defined in Note 10) or Series D Preferred Stock (as defined in Note 10), the holder of such shares has the right to require the Company to redeem such shares at a redemption price of 100% of the Series A Preferred Stock Stated Value (as defined in Note 10) or Series D Preferred Stock Stated Value (as defined in Note 10), as applicable, plus accrued and unpaid dividends, subject to the payment of a redemption fee until the fifth anniversary of such issuance. From and after the fifth anniversary of the date of the original issuance, the holder will have the right to require the Company to redeem such shares at a redemption price of 100% of the Series A Preferred Stock Stated Value or Series D Preferred Stock Stated Value, as applicable, plus accrued and unpaid dividends, without a redemption fee, and the Company will have the right (but not the obligation) to redeem such shares at 100% of the Series A Preferred Stock Stated Value or Series D Preferred Stock Stated Value, as applicable, plus accrued and unpaid dividends. The applicable redemption price payable upon redemption of any Series A Preferred Stock is payable in cash or, on or after the first anniversary of the issuance of such shares of Series A Preferred Stock to be redeemed, in the Company's sole discretion, in cash or in equal value through the issuance of shares of Common Stock, based on the volume weighted average price of our Common Stock for the 20 trading days prior to the redemption. The applicable redemption price payable upon redemption of any Series D Preferred Stock is payable in cash or, in the Company's sole discretion, in equal value through the issuance of shares of Common Stock, based on the volume weighted average price of our Common Stock for the 20 trading days prior to the redemption. Since a holder of Series A Preferred Stock has the right to request redemption of such shares and redemptions prior to the first anniversary are to be paid in cash, we have recorded the activity related to our Series A Preferred Stock in temporary equity. We recorded the activity related to our Series A Preferred Warrants (Note 10) in permanent equity. We will record the activity related to our Series D Preferred Stock (Note 10) in permanent equity. On the first anniversary of the date of original issuance of a particular share of Series A Preferred Stock, we reclassify such share of Series A Preferred Stock from temporary equity to permanent equity because the feature giving rise to temporary equity classification, the requirement to satisfy redemption requests in cash, lapses on the first anniversary date. From and after the fifth anniversary of the date of original issuance of the Series L Preferred Stock, each holder will have the right to require the Company to redeem, and the Company will also have the option to redeem (subject to certain conditions), such shares of Series L Preferred Stock at a redemption price equal to the Series L Preferred Stock Stated Value (as defined in Note 10), plus, provided certain conditions are met, all accrued and unpaid distributions. Notwithstanding the foregoing, a holder of shares of our Series L Preferred Stock may require us to redeem such shares at any time prior to the fifth anniversary of the date of original issuance of the Series L Preferred Stock if (1) we do not declare and pay in full the distributions on the Series L Preferred Stock for any annual period prior to such fifth anniversary or (2) we do not declare and pay all accrued and unpaid distributions on the Series L Preferred Stock for all past dividend periods prior to the applicable holder redemption date. The applicable redemption price payable upon redemption of any Series L Preferred Stock will be made, in the Company's sole discretion, in the form of (A) cash in Israeli New Shekels ("ILS") at the then-current currency exchange rate determined in accordance with the Articles Supplementary defining the terms of the Series L Preferred Stock, (B) in equal value through the issuance of shares of Common Stock, with the value of such Common Stock to be deemed the lower of (i) our net asset value ("NAV") per share of our Common Stock as most recently published by the Company as of the effective date of redemption and (ii) the volume-weighted average price of our Common Stock, determined in accordance with the Articles Supplementary defining the terms of the Series L Preferred Stock, or (C) in a combination of cash in ILS and our Common Stock, based on the conversion mechanisms set forth in (A) and (B), respectively. We recorded the activity related to our Series L Preferred Stock in permanent equity. |
Purchase Accounting for Acquisition of Investments in Real Estate | Purchase Accounting for Acquisition of Investments in Real Estate —We apply the acquisition method to all acquired real estate assets. The purchase consideration of the real estate, which for real estate acquired on or after October 1, 2017 includes the transaction costs incurred in connection with such acquisitions, is recorded at fair value to the acquired tangible assets, consisting primarily of land, land improvements, building and improvements, tenant improvements, and furniture, fixtures, and equipment, and identified intangible assets and liabilities, consisting of the value of acquired above-market and below-market leases, in-place leases and ground leases, if any, based in each case on their respective fair values. Loan premiums, in the case of above-market rate loans, or loan discounts, in the case of below-market rate loans, are recorded based on the fair value of any loans assumed in connection with acquiring the real estate. The fair value of the tangible assets of an acquired property is determined by valuing the property as if it were vacant, and the "as-if-vacant" value is then allocated to land (or acquired ground lease if the land is subject to a ground lease), land improvements, building and improvements, and tenant improvements based on management's determination of the relative fair values of these assets. Management determines the as-if-vacant fair value of a property using methods similar to those used by independent appraisers. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses, and estimates of lost rental revenue during the expected lease-up periods based on current market demand. Management also estimates costs to execute similar leases, including leasing commissions, legal, and other related costs. In allocating the purchase consideration of the identified intangible assets and liabilities of an acquired property, above-market, below-market, and in-place lease values are recorded based on the present value (using an interest rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management's estimate of fair market lease rates for the corresponding in-place leases measured over a period equal to the remaining non-cancelable term of the lease, and for below-market leases, over a period equal to the initial term plus any below-market fixed-rate renewal periods. Acquired above-market and below-market leases are amortized and recorded to rental and other property income over the initial terms of the respective leases. The aggregate value of other acquired intangible assets, consisting of in-place leases and tenant relationships, is measured by the estimated cost of operations during a theoretical lease-up period to replace in-place leases, including lost revenues and any unreimbursed operating expenses, plus an estimate of deferred leasing commissions for in-place leases. The value of in-place leases is amortized to expense over the remaining non-cancelable periods of the respective leases. If a lease is terminated prior to its stated expiration, all unamortized amounts relating to that lease are written-off. A tax abatement intangible asset was recorded for a property acquired in 2011 and sold in 2017, based on an approval for a property tax abatement, due to the location of the property. The tax abatement intangible asset was amortized over eight years and was written off in connection with the disposition. |
Revenue Recognition | Revenue Recognition —We use a five-step model to recognize revenue for contracts with customers. The five-step model requires that we (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) we satisfy the performance obligation. Revenue from leasing activities We operate as a lessor of real estate assets, primarily in Class A and creative office assets. In determining whether our contracts with our tenants constitute leases, we determined that our contracts explicitly identify the premises and that any substitution rights to relocate the tenant to other premises within the same building stated in the contract are not substantive. Additionally, so long as payments are made timely under these contracts, our tenants have the right to obtain substantially all the economic benefits from the use of this identified asset and can direct how and for what purpose the premises are used to conduct their operations. Therefore, our contracts with our tenants constitute leases. All leases are classified as operating leases and minimum rents are recognized on a straight-line basis over the terms of the leases when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased asset. The excess of rents recognized over amounts contractually due pursuant to the underlying leases is recorded as deferred rent. If the lease provides for tenant improvements, we determine whether the tenant improvements, for accounting purposes, are owned by the tenant or us. When we are the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is considered the owner of the improvements, any tenant improvement allowance that is funded is treated as an incentive. Lease incentives paid to tenants are included in other assets and amortized as a reduction to rental revenue on a straight-line basis over the term of the related lease. Lease incentives of $3,976,000 and $12,958,000 are presented net of accumulated amortization of $2,029,000 and $6,188,000 at December 31, 2019 and 2018 , respectively. Reimbursements from tenants, consisting of amounts due from tenants for common area maintenance, real estate taxes, insurance, and other recoverable costs, are recognized as revenue in the period the expenses are incurred. Tenant reimbursements are recognized and presented on a gross basis when we are primarily responsible for fulfilling the promise to provide the specified good or service and control that specified good or service before it is transferred to the tenant. We have elected not to separate lease and non-lease components as the pattern of revenue recognition does not differ for the two components, and the non-lease component is not the primary component in our leases. In addition to minimum rents, certain leases provide for additional rents based upon varying percentages of tenants' sales in excess of annual minimums. Percentage rent is recognized once lessees' specified sales targets have been met. Included in rental and other property income for the years ended December 31, 2019 , 2018 and 2017 , is $40,000 , $65,000 and $304,000 , respectively, of percentage rent. We derive parking revenues from leases with third-party operators. Our parking leases provide for additional rents based upon varying percentages of tenants' sales in excess of annual minimums. Parking percentage rent is recognized once lessees' specific sales targets have been met. Included in rental and other property income for the years ended December 31, 2019 , 2018 and 2017 , is $160,000 , $1,509,000 and $1,881,000 , respectively, of parking percentage rent. Included in hotel income for the years ended December 31, 2019 , 2018 and 2017 , is $0 , $0 , and $733,000 , respectively, of parking percentage rent. For the years ended December 31, 2019 , 2018 and 2017 , we recognized rental income as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Rental and other property income Fixed lease payments (1) $ 80,205 $ 136,145 $ 162,479 Variable lease payments (2) 8,126 10,950 13,055 Rental and other property income $ 88,331 $ 147,095 $ 175,534 (1) Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the lease term, including amortization of acquired above-market leases, below-market leases and lease incentives. (2) Variable lease payments include expense reimbursements billed to tenants and percentage rent, net of bad debt expense from our operating leases. Revenue from lending activities Interest income included in interest and other income is comprised of interest earned on loans and our short-term investments and the accretion of net loan origination fees and discounts. Interest income on loans is accrued as earned with the accrual of interest suspended when the related loan becomes a Non-Accrual Loan. Revenue from hotel activities Hotel revenue is recognized upon establishment of a contract with a customer. At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or implied by customary business practices. Various performance obligations of hotel revenues can be categorized as follows: • cancellable and noncancelable room revenues from reservations and • ancillary services including facility usage and food or beverage. Cancellable reservations represent a single performance obligation of providing lodging services at the hotel. The Company satisfies its performance obligation and recognizes revenues associated with these reservations over time as services are rendered to the customer. The Company satisfies its performance obligation and recognizes revenues associated with noncancelable reservations at the earlier of (i) the date on which the customer cancels the reservation or (ii) over time as services are rendered to the customer. Ancillary services include facilities usage and providing food and beverage. The Company satisfies its performance obligation and recognizes revenues associated with these services at a point in time as the good or service is delivered to the customer. At inception of these contracts with customers for hotel revenues, the contractual price is equivalent to the transaction price as there are no elements of variable consideration to estimate. We recognized hotel income of $35,633,000 , $35,672,000 and $35,576,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Below is a reconciliation of the hotel revenue from contracts with customers to the total hotel segment revenue disclosed in Note 19: Year Ended December 31, 2019 2018 2017 (in thousands) Hotel properties Hotel income $ 35,633 $ 35,672 $ 35,576 Rental and other property income 2,947 2,922 2,877 Interest and other income 168 195 132 Hotel revenues $ 38,748 $ 38,789 $ 38,585 Tenant recoveries outside of the lease agreements Tenant recoveries outside of the lease agreements are related to construction projects in which our tenants have agreed to fully reimburse us for all costs related to construction. These services include architectural, permit expediter and construction services. At inception of the contract with the customer, the contractual price is equivalent to the transaction price as there are no elements of variable consideration to estimate. While these individual services are distinct, in the context of the arrangement with the customer, all of these services are bundled together and represent a single package of construction services requested by the customer. The Company satisfies its performance obligation and recognizes revenues associated with these services over time as the construction is completed. |
Premiums and Discounts on Debt | Premiums and Discounts on Debt — Premiums and discounts on debt are accreted or amortized to interest expense using the effective interest method or on a straight-line basis over the respective term of the loan, which approximates the effective interest method. |
Stock-Based Compensation Plans | Stock-Based Compensation Plans —We have issued and continue to issue restricted shares under stock-based compensation plans described more fully in Note 8. We use fair value recognition provisions to account for all awards granted, modified or settled. |
Earnings per Share ("EPS") | Earnings per Share ("EPS") —Basic EPS is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of Common Stock outstanding for the period. Net income attributable to common stockholders includes a deduction for dividends due to preferred stockholders. Diluted EPS is computed by dividing net income attributable to common stockholders by the weighted average number of shares of Common Stock outstanding adjusted for the dilutive effect, if any, of securities such as stock-based compensation awards, warrants, including the Series A Preferred Warrants (Note 11) and preferred stock, including the Series A Preferred Stock (Note 10), Series D Preferred Stock (Note 10) and Series L Preferred Stock (Note 10), whose redemption is payable in shares of Common Stock or cash, at the discretion of the Company. The dilutive effect of stock-based compensation awards and warrants, including the Series A Preferred Warrants, is reflected in the weighted average diluted shares calculation by application of the treasury stock method. The dilutive effect of preferred stock, including the Series A Preferred Stock, Series D Preferred Stock and Series L Preferred Stock, whose redemption is payable in shares of Common Stock or cash, at the discretion of the Company, is reflected in the weighted average diluted shares calculation by application of the if-converted method. |
Distributions | Distributions —Distributions on our Series A Preferred Stock (as defined in Note 10), Series D Preferred Stock (as defined in Note 10), Series L Preferred Stock (as defined in Note 10) and Common Stock are recorded when they are authorized by our Board of Directors and declared by the Company. |
Assets Held for Sale and Discontinued Operations | Assets Held for Sale and Discontinued Operations —In the ordinary course of business, we may periodically enter into agreements to dispose of our assets. Some of these agreements are non-binding because either they do not obligate either party to pursue any transactions until the execution of a definitive agreement or they provide the potential buyer with the ability to terminate without penalty or forfeiture of any material deposit, subject to certain specified contingencies, such as completion of due diligence at the discretion of such buyer. We do not classify assets that are subject to such non-binding agreements as held for sale. We classify assets as held for sale, if material, when they meet the necessary criteria, which include: a) management commits to and actively embarks upon a plan to sell the assets, b) the assets to be sold are available for immediate sale in their present condition, c) the sale is expected to be completed within one year under terms usual and customary for such sales and d) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. We generally believe that we meet these criteria when the plan for sale has been approved by our management, having the authority to approve the sale, there are no known significant contingencies related to the sale and management believes it is probable that the sale will be completed within one year. Assets held for sale are recorded at the lower of cost or estimated fair value less cost to sell. In addition, if we were to determine that the asset disposal associated with assets held for sale or disposed of represents a strategic shift, the revenues, expenses and net gain (loss) on dispositions would be recorded in discontinued operations for all periods presented through the date of the applicable disposition. We sold all of our multifamily properties during the year ended December 31, 2017. We assessed the sale of these properties (Note 3) in accordance with ASC 205-20, Discontinued Operations . In our assessment, we considered, among other factors, the materiality of the revenue, net operating income, and total assets of our multifamily segment. Based on our qualitative and quantitative assessment, we concluded the disposals did not represent a strategic shift that would have a major effect on our operations and financial results and therefore should not be classified as discontinued operations on our consolidated financial statements. |
Derivative Financial Instruments | Derivative Financial Instruments —As part of risk management and operational strategies, from time to time, we may enter into derivative contracts with various counterparties. All derivatives are recognized on the balance sheet at their estimated fair value. On the date that we enter into a derivative contract, we designate the derivative as a fair value hedge, a cash flow hedge, a foreign currency fair value or cash flow hedge, a hedge of a net investment in a foreign operation, or a trading or non-hedging instrument. Changes in the estimated fair value of a derivative (effective and ineffective components) that is highly effective and that is designated and qualifies as a cash flow hedge are initially recorded in other comprehensive income ("OCI"), and are subsequently reclassified into earnings as a component of interest expense when the variability of cash flows of the hedged transaction affects earnings (e.g., when periodic settlements of a variable-rate asset or liability are recorded in earnings). When an interest rate swap designated as a cash flow hedge no longer qualifies for hedge accounting, we recognize changes in the estimated fair value of the hedge previously deferred to accumulated other comprehensive income ("AOCI"), along with any changes in estimated fair value occurring thereafter, through earnings. We classify cash flows from interest rate swap agreements as net cash provided by operating activities on the consolidated statements of cash flows as our accounting policy is to present the cash flows from the hedging instruments in the same category in the consolidated statements of cash flows as the category for the cash flows from the hedged items. |
Income Taxes | Income Taxes —We have elected to be taxed as a REIT under the provisions of the Code. To the extent we qualify for taxation as a REIT, we generally will not be subject to a federal corporate income tax on our taxable income that is distributed to our stockholders. We may, however, be subject to certain federal excise taxes and state and local taxes on our income and property. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income taxes at regular corporate rates and will not be able to qualify as a REIT for four subsequent taxable years. In order to remain qualified as a REIT under the Code, we must satisfy various requirements in each taxable year, including, among others, limitations on share ownership, asset diversification, sources of income, and the distribution of at least 90% of our taxable income within the specified time in accordance with the Code. We have wholly-owned taxable REIT subsidiaries ("TRS's") which are subject to federal income taxes. The income generated from the taxable REIT subsidiaries is taxed at normal corporate rates. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases. We have established a policy on classification of penalties and interest related to audits of our federal and state income tax returns. If incurred, our policy for recording interest and penalties associated with audits will be to record such items as a component of general and administrative expense. Penalties, if incurred, will be recorded in general and administrative expense and interest paid or received will be recorded in interest expense or interest income, respectively, in our consolidated statements of operations. ASC 740, Income Taxes , provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are "more likely than not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current period. We have reviewed all open tax years and concluded that the application of ASC 740 resulted in no material effect to our consolidated financial position or results of operations. |
Consolidation Considerations for Our Investments in Real Estate | Consolidation Considerations for Our Investments in Real Estate —ASC 810-10, Consolidation , addresses how a business enterprise should evaluate whether it has a controlling interest in an entity through means other than voting rights that would require the entity to be consolidated. We analyze our investments in real estate in accordance with this accounting standard to determine whether they are variable interest entities, and if so, whether we are the primary beneficiary. Our judgment with respect to our level of influence or control over an entity and whether we are the primary beneficiary of a variable interest entity involves consideration of various factors, including the form of our ownership interest, our voting interest, the size of our investment (including loans), and our ability to participate in major policy-making decisions. Our ability to correctly assess our influence or control over an entity affects the presentation of these investments in real estate on our consolidated financial statements. |
Use of Estimates | Use of Estimates —The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Reclassifications | Reclassifications —Certain prior period amounts have been reclassified to conform with the current period presentation. With the adoption of Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) and the election of the lessor practical expedient not to separate lease and non-lease components, $9,039,000 and $9,264,000 of expense reimbursements were reclassified as rental and other property income on the consolidated statements of operations for the years ended December 31, 2018 and 2017 , respectively, and $984,000 and $7,382,000 of non-lease component expense reimbursements recognized under the revenue recognition guidance were reclassified as interest and other income on the consolidated statements of operations for the years ended December 31, 2018 and 2017 , respectively. Under the new leasing guidance, bad debt expense associated with changes in the collectability assessment for operating leases shall be recorded as adjustments to rental and other property income rather than rental and other property operating expenses. The impact of this reclassification resulted in a $254,000 and $317,000 reclassification from rental and other property expenses to rental and other property income on the consolidated statements of operations for the years ended December 31, 2018 and 2017 , respectively. Additionally, to conform with the current period presentation, we reclassified $808,000 and $1,854,000 from interest expense to loss on early extinguishment of debt on the consolidated statements of operations for the years ended December 31, 2018 and 2017 , respectively, and $6,361,000 from gain on sale of real estate to loss on early extinguishment of debt on the consolidated statement of operations for the year ended December 31, 2017 . In accordance with ASU 2016-15, we changed previously reported amounts within the accompanying consolidated statement of cash flows for the year ended December 31, 2017 to reclassify $6,361,000 of prepayment penalties and other payments for early extinguishment of debt from net cash provided by investing activities to net cash used in financing activities. |
Concentration of Credit Risk | Concentration of Credit Risk —Financial instruments that subject us to credit risk consist primarily of cash and cash equivalents and interest rate swap agreements. We have our cash and cash equivalents on deposit with what we believe to be high-quality financial institutions. Accounts at each institution are insured by the Federal Deposit Insurance Corporation up to $250,000. Management routinely assesses the financial strength of its tenants and, as a consequence, believes that its accounts receivable credit risk exposure is limited. The majority of our revenues are earned from properties located in California. We are subject to risks incidental to the ownership and operation of commercial real estate. These include, among others, the risks normally associated with changes in the general economic climate in the communities in which we operate, trends in the real estate industry, changes in tax laws, interest rate levels, availability of financing, and the potential liability under environmental and other laws. |
Fair Value Measurements | Fair Value Measurements —The fair value of our financial assets and liabilities are disclosed in Note 13. We determine the estimated fair value of financial assets and liabilities utilizing a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. The hierarchy for inputs used in measuring fair value is as follows: Level 1 Inputs —Quoted prices in active markets for identical assets or liabilities Level 2 Inputs —Observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 Inputs —Unobservable inputs In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. We disclose the fair value of our debt. We determine the fair value of mortgage notes payable and junior subordinated notes by performing discounted cash flow analyses using an appropriate market discount rate. We calculate the market discount rate for our mortgage notes payable by obtaining period-end treasury or swap rates, as applicable, for maturities that correspond to the maturities of our debt and then adding an appropriate credit spread. These credit spreads take into account factors such as our credit standing, the maturity of the debt, whether the debt is secured or unsecured, and the loan-to-value ratios of the debt. We disclose the fair value of our loans receivable. We determine the fair value of loans receivable by performing a present value analysis for the anticipated future cash flows using an appropriate market discount rate taking into consideration the credit risk and using an anticipated prepayment rate. We estimated the fair value of our interest rate swaps by calculating the credit-adjusted present value of the expected future cash flows of each swap. The calculation incorporated the contractual terms of the derivatives, observable market interest rates, and credit risk adjustments, if any, to reflect the counterparty's as well as our own nonperformance risk. The carrying amounts of our cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued expenses approximate their fair values due to their short-term maturities at December 31, 2019 and 2018 . The carrying amounts of our secured borrowings—government guaranteed loans, SBA 7(a) loan-backed notes and revolving credit facility approximate their fair values, as the interest rates on these securities are variable and approximate current market interest rates. |
Segment Information | Segment Information —Segment information is prepared on the same basis that our management reviews information for operational decision-making purposes. Our reportable segments for the years ended December 31, 2019 and 2018 consist of two types of commercial real estate properties, namely office and hotel, as well as a segment for our lending business. Our reportable segments for the year ended December 31, 2017 consist of three types of commercial real estate properties, namely, office, hotel and multifamily, as well as a segment for our lending business. The products for our office segment primarily include rental of office space and other tenant services, including tenant reimbursements, parking, and storage space rental. The products for our multifamily segment include rental of apartments and other tenant services. The products for our hotel segment include revenues generated from the operations of hotel properties and rental income generated from a garage located directly across the street from one of the hotels. The income from our lending segment includes income from the yield and other related fee income earned on our loans receivable. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements— In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-02, Leases (Topic 842) , which was intended to improve financial reporting about leasing transactions. Under the new guidance, a lessee was required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with previous GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily depended on its classification as a finance or operating lease. However, unlike previous GAAP, which required a lessee to recognize only capital leases on the balance sheet, the new ASU required a lessee to recognize both types of leases on the balance sheet. The lessor accounting remained largely unchanged from previous GAAP. However, the ASU contained some targeted improvements that were intended to align, where necessary, lessor accounting with the lessee accounting model and with the updated revenue recognition guidance issued in 2014. In July 2018, the FASB issued ASU No. 2018-10, Leases (Topic 842) , which contained targeted improvements to amend inconsistencies and clarified guidance that was brought about by stakeholders. Furthermore, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) , which provided the following practical expedients to entities: (1) a transition method that allowed entities to apply the new standard at the adoption date and to recognize a cumulative-effect adjustment to the opening balance of retained earnings effective at the adoption date; and (2) the option for lessors to not separate lease and non-lease components provided that certain criteria were met. In December 2018, the FASB issued ASU 2018-20, Leases (Topic 842) , which provided lessors the option to elect to account for sales and other similar taxes in which the lessee directly pays third-parties to be excluded from the measurement of the contract consideration. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842) , which provided narrow amendments, including clarification on transition disclosures to certain aspects of ASU 2016-02. For public entities, these ASUs were effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2018. The guidance provided a package of transition practical expedients, which must be elected as a package and applied consistently by an entity to all of its leases (including those for which the entity is a lessee or a lessor) when applying this guidance to leases that commenced before the effective date of January 1, 2019: (1) An entity need not reassess whether any expired or existing contracts are or contain leases; (2) an entity need not reassess the lease classification for any expired or existing leases (that is, all leases that were classified as operating leases prior to January 1, 2019 remain classified as operating leases); and (3) an entity need not reassess initial direct costs for any existing leases. The Company elected all the aforementioned transition practical expedients, including the expedients provided under ASU 2018-11. From a lessee's perspective, the Company determined that there is one office lease for our lending segment that is material to the consolidated balance sheet. Based on our assessment, the lease had been classified as an operating lease and the Company recorded approximately $362,000 as a right-of-use asset and lease liability on the consolidated balance sheet on the effective date of January 1, 2019. As of December 31, 2019 , the right-of-use asset and lease liability balance were each approximately $106,000 . From a lessor's perspective, the Company did not record a cumulative effect adjustment on January 1, 2019 as the aforementioned package of practical expedients allowed us to continue accounting for our then-existing or expired leases under the previous accounting guidance, and we applied the new lease accounting guidance to leases that commenced or are modified after the effective date of January 1, 2019. Leases commenced or modified after the effective date have been, and we expect future commencements and modifications of leases in the future will continue to be, classified as operating leases and that we will qualify for the lessor practical expedient provided under ASU 2018-11 to not separate lease and non-lease components. Additionally, if following the effective date, our tenants have made or make payments for taxes or insurance directly to a third-party on behalf of the Company as the lessor, we have excluded and will exclude these amounts from the measurement of the contract consideration and consider these lessee costs. Otherwise, any recoveries of these costs are and will be recognized as lease revenue on a gross basis in our consolidated income statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity. The amendments in the ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. In November 2018, the FASB issued ASU No. 2018-19, Financial Instruments-Credit Losses (Topic 326): Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which clarified that receivables arising from operating leases are not within the scope of the credit losses standards. In April 2019, the FASB issued ASU 2019-04, Financial Instruments-Credit Losses (Topic 326): Codification Improvements to Topic 326, Financial Instruments-Credit Losses , which clarified the following: (i) an entity’s estimate of expected credit losses should include expected recoveries of financial assets, including recoveries of amounts expected to be written off and those previously written off, and (ii) an entity should consider contractual extension or renewal options that it cannot unconditionally cancel when determining the contractual term over which expected credit losses are measured. In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief , which allows entities to irrevocably elect the fair value option for existing financial assets on an instrument-by-instrument basis upon adoption of ASU 2016-13. Except for existing held-to-maturity debt securities, the alternative is available for all instruments in the scope of ASC 326-20 that are eligible for the fair value option in ASC 825-10. If an entity elects the fair value option, it will recognize a cumulative-effect adjustment for the difference between the fair value of the instrument and its carrying value. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments-Credit Losses (Topic 326) , which deferred the effective date of Topic 326 for certain entities, including smaller reporting companies, public entities that are not SEC filers, and entities that are not public business entities. For public entities, the ASU is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2019. For smaller reporting companies, public entities that are not SEC filers, and entities that are not public business entities, the ASU is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2022. Early adoption is permitted for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2018. In November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses , which made narrow-scope improvements to the credit losses standard, including, but not limited to, adjustments for transition relief for troubled debt restructurings and disclosures related to accrued interest receivables. We are currently in the process of evaluating the impact of adoption of this new accounting guidance on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities , which simplified and expanded the eligible hedging strategies for financial and nonfinancial risks by more closely aligning hedge accounting with a company’s risk management activities, and also simplified the application of Topic 815, Derivatives and Hedging , through targeted improvements in key practice areas. In addition, the ASU prescribed how hedging results should be presented and required incremental disclosures. Further, the ASU provided partial relief on the timing of certain aspects of hedge documentation and eliminated the requirement to recognize hedge ineffectiveness separately in earnings in the current period. For public entities, the ASU was effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2018. The Company has evaluated the guidance and determined that the effects of ASU 2017-12 did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement , which eliminates, adds and modifies certain disclosure requirements for fair value measurements. Entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public entities will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. For public entities, the ASU is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2019. Early adoption is permitted in any interim period after issuance of the ASU. The Company has evaluated the guidance and determined that the effects of ASU 2018-13 is not expected to have a material impact on our consolidated financial statements. In October 2018, the FASB issued ASU No. 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (the “SOFR”) Overnight Index Swap (“OIS”) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes . The guidance permits the use of the OIS rate based on the SOFR as a U.S. benchmark rate for purposes of applying hedge accounting. The SOFR is a volume-weighted median interest rate that is calculated daily based on overnight transactions from the prior day’s activity in specified segments of the U.S. Treasury repo market. It has been selected as the preferred replacement for the U.S. dollar London Interbank Offered Rate ("LIBOR"), which will be phased out by the end of 2021. For public entities, the ASU is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2019. Early adoption is permitted in any interim period after issuance of the ASU. The Company has evaluated the guidance and determined that the effects of ASU 2018-16 is not expected to have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. For public entities, the ASU is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2020. Early adoption is permitted in any interim period after the issuance of the ASU. The Company has evaluated the guidance and determined the effects of ASU 2019-12 is not expected to have a material impact on our consolidated financial statements. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Estimated Useful Lives of Real Estate Investment Assets | Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives as follows: Buildings and improvements 15 - 40 years Furniture, fixtures, and equipment 3 - 5 years Tenant improvements Shorter of the useful lives or the terms of the related leases |
Schedule of Recognized Rental Income | For the years ended December 31, 2019 , 2018 and 2017 , we recognized rental income as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Rental and other property income Fixed lease payments (1) $ 80,205 $ 136,145 $ 162,479 Variable lease payments (2) 8,126 10,950 13,055 Rental and other property income $ 88,331 $ 147,095 $ 175,534 (1) Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the lease term, including amortization of acquired above-market leases, below-market leases and lease incentives. (2) Variable lease payments include expense reimbursements billed to tenants and percentage rent, net of bad debt expense from our operating leases. |
Reconciliation of Hotel Revenue | Below is a reconciliation of the hotel revenue from contracts with customers to the total hotel segment revenue disclosed in Note 19: Year Ended December 31, 2019 2018 2017 (in thousands) Hotel properties Hotel income $ 35,633 $ 35,672 $ 35,576 Rental and other property income 2,947 2,922 2,877 Interest and other income 168 195 132 Hotel revenues $ 38,748 $ 38,789 $ 38,585 |
ACQUISITIONS AND DISPOSITIONS (
ACQUISITIONS AND DISPOSITIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Assets Sold and Held for Sale | We sold 100% fee-simple interests in the following properties to unrelated third-parties during the year ended December 31, 2019 . Transaction costs related to these sales were expensed as incurred. Property Asset Type Date of Sale Square Feet Sales Price Transaction Costs Gain on Sale (in thousands) March Oakland Properties, Office / Parking Garage March 1, 2019 975,596 $ 512,016 $ 8,971 $ 289,779 830 1st Street, Office March 1, 2019 247,337 116,550 2,438 45,710 260 Townsend Street, Office March 14, 2019 66,682 66,000 2,539 42,092 1333 Broadway, Office May 16, 2019 254,523 115,430 658 55,221 Union Square Properties, Office / Land July 30, 2019 630,650 181,000 3,744 302 $ 990,996 $ 18,350 $ 433,104 (1) The "March Oakland Properties" consist of 1901 Harrison Street, 2100 Franklin Street, 2101 Webster Street, and 2353 Webster Street Parking Garage. (2) The "Union Square Properties" consist of 899 North Capitol Street, 901 North Capitol Street and 999 North Capitol Street. Prior to the sale, we determined that the book values of such properties exceeded their estimated fair values and recognized an impairment charge of $69,000,000 for the year ended December 31, 2019 (Note 2). Our determination of the fair values of these properties was based on negotiations with the third-party buyer and the contract sales price. The gain on sale includes $113,000 of extinguishment of noncontrolling interests as a result of the sale. Property Asset Type Date of Sale Square Sales Price Transaction Costs Gain on Sale (in thousands) 211 Main Street, Office March 28, 2017 417,266 $ 292,882 $ 1,435 $ 189,242 3636 McKinney Avenue, Multifamily May 30, 2017 103 $ 20,000 $ 177 $ 6,631 3839 McKinney Avenue, Multifamily May 30, 2017 75 $ 14,100 $ 180 $ 4,982 200 S College Street, Office June 8, 2017 567,865 $ 148,500 $ 833 $ 45,906 980 9th and 1010 8th Street, Office & Parking Garage June 20, 2017 485,926 $ 120,500 $ 1,119 $ 34,559 4649 Cole Avenue, Multifamily June 23, 2017 334 $ 64,000 $ 499 $ 28,648 800 N Capitol Street, Office August 31, 2017 311,593 $ 119,750 $ 2,388 $ 34,456 7083 Hollywood Boulevard, Office September 21, 2017 82,193 $ 42,300 $ 584 $ 23,810 47 E 34th Street, Multifamily September 26, 2017 110 $ 80,000 $ 3,157 $ 16,556 370 L'Enfant Promenade, Office October 17, 2017 409,897 $ 126,680 $ 2,451 $ 2,994 4200 Scotland Street, Multifamily December 15, 2017 308 $ 64,025 $ 597 $ 20,314 $ 1,092,737 $ 13,420 $ 408,098 (1) Reflects the square footage of office properties and number of units of multifamily properties. (2) A mortgage collateralized by this property was prepaid in connection with our sale of the property (Note 7). (3) A mortgage collateralized by this property was assumed by the buyer in connection with our sale of the property (Note 7). (4) In August 2017, we negotiated an agreement with an unrelated third-party for the sale of this property. We determined that the book value of this property exceeded its estimated fair value less costs to sell, and recognized an impairment charge of $13,100,000 for the year ended December 31, 2017 (Note 2). Our determination of fair value was based on the sales price negotiated with the third-party buyer. The following is the detail of the carrying amounts of assets and liabilities for the office properties that are classified as held for sale on our consolidated balance sheet as of December 31, 2018 : December 31, 2018 (in thousands) Assets Investments in real estate, net (1) $ 17,123 Cash and cash equivalents 755 Accounts receivable, net 41 Deferred rent receivable and charges, net (2) 4,009 Other intangible assets, net (3) 220 Other assets 27 Total assets held for sale, net $ 22,175 Liabilities Debt, net (4) $ 28,018 Accounts payable and accrued expenses 370 Due to related parties 81 Other liabilities 297 Total liabilities associated with assets held for sale, net $ 28,766 (1) Investments in real estate of $24,832,000 are presented net of accumulated depreciation of $7,709,000 . (2) Deferred rent receivable and charges consist of deferred rent receivable of $2,909,000 and deferred leasing costs of $1,669,000 net of accumulated amortization of $569,000 . (3) Other intangible assets, net, represent acquired in-place leases of $1,778,000 , which are presented net of accumulated amortization of $1,558,000 . (4) Debt, net, includes the outstanding principal balance of 260 Townsend Street of $28,200,000 , net of deferred loan costs of $243,000 and accumulated amortization of $61,000 . The following is the detail of the carrying amounts of assets and liabilities at the time of the sales of the properties that occurred during the years ended December 31, 2019 , 2018 and 2017 : Year Ended December 31, 2019 2018 2017 (in thousands) Assets Investments in real estate, net $ 476,532 $ — $ 631,740 Deferred rent receivable and charges, net 55,297 — 34,071 Other intangible assets, net 316 — 11,283 Other assets 4,096 — 38 Total assets $ 536,241 $ — $ 677,132 Liabilities Debt, net (1) (2) $ 318,072 $ — $ 115,037 Other liabilities — — 14,029 Intangible liabilities, net — — 1,800 Total liabilities $ 318,072 $ — $ 130,866 (1) Debt, net for the year ended December 31, 2019 is presented net of deferred loan costs of $1,704,000 and accumulated amortization of $576,000 . Additionally, a mortgage loan with an outstanding principal balance of $28,200,000 was assumed by the buyer in connection with the sale of our property in San Francisco, California. A mortgage loan with an outstanding principal balance of $46,000,000 was prepaid in connection with the sale in March 2019 of our property in Washington, D.C. that was collateral for the loan. Mortgage loans with an aggregate outstanding principal balance of $205,500,000 were legally defeased in connection with the sale of the March Oakland Properties that were collateral for the loans. A mortgage loan with an outstanding principal balance of $39,500,000 was legally defeased in connection with the sale in May 2019 of our property in Oakland, California that was collateral for the loan. (2) Debt, net for the year ended December 31, 2017 is presented net of $665,000 of premium on assumed mortgage. Additionally, debt of $50,260,000 was assumed by certain buyers in connection with sales of certain properties. |
Schedule of Asset Acquisitions | Asset Date of Purchase Property Type Acquisition Square Feet Price (1) (in thousands) 9460 Wilshire Boulevard, Beverly Hills, CA Office January 18, 2018 91,750 $ 132,000 (1) In December 2017, at the time we entered into the purchase and sale agreement, we made a $20,000,000 non-refundable deposit to an escrow account that was included in other assets on our consolidated balance sheet at December 31, 2017. Transaction costs that were capitalized in connection with the acquisition of this property totaled $48,000 , which are not included in the purchase price above. Asset Date of Purchase Property Type Acquisition Square Feet Price (1) (in thousands) 1130 Howard Street, San Francisco, CA Office December 29, 2017 21,194 $ 17,717 (1) Transaction costs that were capitalized and assumption of liabilities totaled $1,915,000 , which are excluded from the purchase price above. |
Schedule of the Fair Value of the Assets Acquired and Liabilities Assumed | The fair value of the net assets acquired for the aforementioned acquisitions during the years ended December 31, 2019 , 2018 and 2017 are as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Land $ — $ 52,199 $ 8,290 Land improvements — 756 — Buildings and improvements — 74,522 10,109 Tenant improvements — 1,451 371 Acquired in-place leases (1) — 7,003 1,184 Acquired above-market leases (2) — 109 37 Acquired below-market leases (3) — (3,992 ) (360 ) Net assets acquired $ — $ 132,048 $ 19,631 (1) Acquired in-place leases have a weighted average amortization period of 3 years and 5 years , respectively, for the 2018 and 2017 acquisitions. (2) Acquired above-market leases have a weighted average amortization period of 2 years and 7 years , respectively, for the 2018 and 2017 acquisitions. (3) Acquired below-market leases have a weighted average amortization period of 3 years and 2 years , respectively, for the 2018 and 2017 acquisitions. |
INVESTMENTS IN REAL ESTATE (Tab
INVESTMENTS IN REAL ESTATE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
Schedule of Investments in Real Estate | Investments in real estate consist of the following: December 31, 2019 2018 (in thousands) Land $ 134,421 $ 266,410 Land improvements 2,713 18,368 Buildings and improvements 438,349 912,892 Furniture, fixtures, and equipment 4,628 4,245 Tenant improvements 35,667 133,487 Work in progress 13,484 9,234 Investments in real estate 629,262 1,344,636 Accumulated depreciation (120,555 ) (303,699 ) Net investments in real estate $ 508,707 $ 1,040,937 |
LOANS RECEIVABLE (Tables)
LOANS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Loans Receivable | Loans receivable consist of the following: December 31, 2019 2018 (in thousands) SBA 7(a) loans receivable, subject to loan-backed notes $ 27,598 $ 36,847 SBA 7(a) loans receivable, subject to credit risk 27,290 29,385 SBA 7(a) loans receivable, subject to secured borrowings 12,644 16,409 Loans receivable 67,532 82,641 Deferred capitalized costs 1,145 1,309 Loan loss reserves (598 ) (702 ) Loans receivable, net $ 68,079 $ 83,248 |
OTHER INTANGIBLE ASSETS (Tables
OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Liabilities and Related Accumulated Amortization and Accretion | A schedule of our intangible assets and liabilities and related accumulated amortization and accretion as of December 31, 2019 and 2018 , is as follows: Assets Liabilities December 31, 2019 Acquired Above-Market Leases Acquired In-Place Leases Trade Name and License Acquired Below-Market Leases (in thousands) Gross balance $ 74 $ 13,653 $ 2,957 $ (3,521 ) Accumulated amortization (42 ) (9,382 ) — 2,239 $ 32 $ 4,271 $ 2,957 $ (1,282 ) Average useful life (in years) 5 8 Indefinite 4 Assets Liabilities December 31, 2018 Acquired Above-Market Leases Acquired In-Place Leases Trade Name and License Acquired Below-Market Leases (in thousands) Gross balance $ 146 $ 16,210 $ 2,957 $ (6,618 ) Accumulated amortization (51 ) (9,731 ) — 3,746 $ 95 $ 6,479 $ 2,957 $ (2,872 ) Average useful life (in years) 3 8 Indefinite 4 |
Schedule of Future Amortization and Accretion of Acquisition Related Intangible Assets and Liabilities | A schedule of future amortization and accretion of acquisition related intangible assets and liabilities as of December 31, 2019 , is as follows: Assets Liabilities Acquired Acquired Acquired Above-Market In-Place Below-Market Years Ending December 31, Leases Leases Leases (in thousands) 2020 $ 9 $ 1,349 $ (701 ) 2021 5 899 (347 ) 2022 5 663 (234 ) 2023 6 375 — 2024 6 375 — Thereafter 1 610 — $ 32 $ 4,271 $ (1,282 ) |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Information on our debt is as follows: December 31, 2019 2018 (in thousands) Mortgage loan with a fixed interest rate of 4.14% per annum, with monthly payments of interest only, and a balance of $97,100,000 due on July 1, 2026. The loan is nonrecourse. On March 1, 2019, mortgage loans with an aggregate outstanding principal balance of $205,500,000 were legally defeased in connection with the sale of the properties that were collateral for the loans. On May 16, 2019, one loan with an outstanding principal balance of $39,500,000 was legally defeased in connection with the sale of the property that was collateral for the loan. $ 97,100 $ 342,100 Mortgage loan with a fixed interest rate of 4.50% per annum, with monthly payments of interest only for 10 years, and payments of interest and principal starting in February 2022. The loan had a $42,008,000 balance due on January 5, 2027. The loan was nonrecourse. On March 1, 2019, the mortgage loan was prepaid in connection with the sale of the property that was collateral for the loan. — 46,000 97,100 388,100 Deferred loan costs related to mortgage loans (174 ) (1,177 ) Total Mortgages Payable 96,926 386,923 Secured borrowing principal on SBA 7(a) loans sold for a premium and excess spread—variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 5.68% and 5.89% at December 31, 2019 and 2018, respectively. 7,845 11,283 Secured borrowing principal on SBA 7(a) loans sold for excess spread—variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 3.32% and 3.57% at December 31, 2019 and 2018, respectively. 4,307 4,482 12,152 15,765 Unamortized premiums 629 940 Total Secured Borrowings—Government Guaranteed Loans 12,781 16,705 Revolving credit facility 153,000 130,000 SBA 7(a) loan-backed notes with a variable interest rate which resets monthly based on the lesser of the one-month LIBOR plus 1.40% or the prime rate less 1.08%, with payments of interest and principal due monthly. Balance due at maturity in March 20, 2043. 22,282 33,769 Junior subordinated notes with a variable interest rate which resets quarterly based on the three-month LIBOR plus 3.25%, with quarterly interest only payments. Balance due at maturity on March 30, 2035. 27,070 27,070 202,352 190,839 Deferred loan costs related to other debt (2,867 ) (3,941 ) Discount on junior subordinated notes (1,771 ) (1,855 ) Total Other Debt 197,714 185,043 Total Debt $ 307,421 $ 588,671 |
Future Principal Payments on Debt | Future principal payments on our debt (face value) at December 31, 2019 are as follows: Years Ending December 31, Mortgages Payable Secured Borrowings Principal (1) Other (1) (2) Total (in thousands) 2020 $ — $ 1,893 $ 2,650 $ 4,543 2021 — 459 1,349 1,808 2022 — 482 154,391 154,873 2023 — 506 1,656 2,162 2024 — 532 1,036 1,568 Thereafter 97,100 8,280 41,270 146,650 $ 97,100 $ 12,152 $ 202,352 $ 311,604 (1) Principal payments on secured borrowings and SBA 7(a) loan-backed notes, which are included in Other, are generally dependent upon cash flows received from the underlying loans. Our estimate of their repayment is based on scheduled payments on the underlying loans. Our estimate will differ from actual amounts to the extent we experience prepayments and or loan liquidations or charge-offs. No payment is due unless payments are received from the borrowers on the underlying loans. (2) Represents the junior subordinated notes, SBA 7(a) loan-backed notes, and revolving credit facility. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of restricted shares and the changes during the year | A summary of our restricted shares as of December 31, 2019 , 2018 and 2017 and the changes during the years ended is as follows: 2019 Weighted Average Grant Number of Date Fair Value Shares Per Share Balance, January 1 3,378 $ 44.40 Granted 3,880 $ 56.66 Vested (3,378 ) $ 44.40 Balance, December 31 3,880 $ 56.66 2018 Weighted Average Grant Number of Date Fair Value Shares Per Share Balance, January 1 3,195 $ 46.95 Granted 3,378 $ 44.40 Vested (3,195 ) $ 46.95 Balance, December 31 3,378 $ 44.40 2017 Weighted Average Grant Number of Date Fair Value Shares Per Share Balance, January 1 3,615 $ 56.26 Granted 3,195 $ 46.95 Vested (3,615 ) $ 56.26 Balance, December 31 3,195 $ 46.95 |
EARNINGS PER SHARE (''EPS'') EA
EARNINGS PER SHARE (''EPS'') EARNINGS PER SHARE ("EPS") (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings (Loss) Per Common Share | The following table reconciles the numerator and denominator used in computing our basic and diluted per-share amounts for net income (loss) attributable to common stockholders for the years ended December 31, 2019 , 2018 and 2017 : Year Ended December 31, 2019 2018 2017 (in thousands, except per share amounts) Numerator: Net income (loss) attributable to common stockholders $ 322,696 $ (14,298 ) $ 377,813 Redeemable preferred stock dividends declared on dilutive shares 2,804 — 9 Diluted net income (loss) attributable to common stockholders $ 325,500 $ (14,298 ) $ 377,822 Denominator: Basic weighted average shares of Common Stock outstanding 14,598 14,597 23,021 Effect of dilutive securities—contingently issuable shares 1,895 — 2 Diluted weighted average shares and common stock equivalents outstanding 16,493 14,597 23,023 Net income (loss) attributable to common stockholders per share: Basic $ 22.11 $ (0.98 ) $ 16.41 Diluted $ 19.74 $ (0.98 ) $ 16.41 |
REDEEMABLE PREFERRED STOCK (Tab
REDEEMABLE PREFERRED STOCK (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Dividends Declared | Cash dividends on our Series A Preferred Stock paid in respect of the years ended December 31, 2019 and 2018 consist of the following: Declaration Date Payment Date Number of Shares Cash Dividends (in thousands) December 3, 2019 January 15, 2020 4,468,315 $ 1,467 August 8, 2019 October 15, 2019 4,091,980 $ 1,318 June 4, 2019 July 15, 2019 3,601,721 $ 1,150 February 20, 2019 April 15, 2019 3,149,924 $ 1,010 December 4, 2018 January 15, 2019 2,847,150 $ 890 August 22, 2018 October 15, 2018 2,457,119 $ 769 June 4, 2018 July 16, 2018 2,149,863 $ 662 March 6, 2018 April 16, 2018 1,674,841 $ 493 Cash dividends on our Series L Preferred Stock paid in respect of the year ended December 31, 2019 and 2018 consist of the following: Declaration Date Payment Date Number of Shares Cash Dividends (in thousands) December 3, 2019 January 16, 2020 5,387,160 $ 8,406 (1) December 4, 2018 January 17, 2019 8,080,740 $ 14,045 (2) (1) Excludes $3,744,000 , which represents a prorated cash dividend from January 1, 2019 to November 20, 2019 related to the 2,693,580 shares of Series L Preferred Stock that were repurchased in connection with the Series L Preferred Stock Tender Offer on November 20, 2019. (2) Includes $1,436,000 , which represents a prorated cash dividend from November 20, 2017 to December 31, 2017. For the year ended December 31, 2017, the accumulated dividends of $1,436,000 are included in the numerator for purposes of calculating basic and diluted net income (loss) attributable to common stockholders per share (Note 9). Cash dividends per share of Common Stock paid in respect of the years ended December 31, 2019 and 2018 consist of the following: Declaration Date Payment Date Type Cash Dividend Per December 3, 2019 December 27, 2019 Regular Quarterly $ 0.075 August 8, 2019 September 18, 2019 Regular Quarterly $ 0.075 August 8, 2019 August 30, 2019 Special Cash $ 42.000 June 4, 2019 June 27, 2019 Regular Quarterly $ 0.375 February 20, 2019 March 25, 2019 Regular Quarterly $ 0.375 December 4, 2018 December 27, 2018 Regular Quarterly $ 0.375 August 22, 2018 September 25, 2018 Regular Quarterly $ 0.375 June 4, 2018 June 28, 2018 Regular Quarterly $ 0.375 March 6, 2018 March 29, 2018 Regular Quarterly $ 0.375 (1) Amounts have been adjusted to give retroactive effect to the Reverse Stock Split. |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Dividends Declared | Cash dividends on our Series A Preferred Stock paid in respect of the years ended December 31, 2019 and 2018 consist of the following: Declaration Date Payment Date Number of Shares Cash Dividends (in thousands) December 3, 2019 January 15, 2020 4,468,315 $ 1,467 August 8, 2019 October 15, 2019 4,091,980 $ 1,318 June 4, 2019 July 15, 2019 3,601,721 $ 1,150 February 20, 2019 April 15, 2019 3,149,924 $ 1,010 December 4, 2018 January 15, 2019 2,847,150 $ 890 August 22, 2018 October 15, 2018 2,457,119 $ 769 June 4, 2018 July 16, 2018 2,149,863 $ 662 March 6, 2018 April 16, 2018 1,674,841 $ 493 Cash dividends on our Series L Preferred Stock paid in respect of the year ended December 31, 2019 and 2018 consist of the following: Declaration Date Payment Date Number of Shares Cash Dividends (in thousands) December 3, 2019 January 16, 2020 5,387,160 $ 8,406 (1) December 4, 2018 January 17, 2019 8,080,740 $ 14,045 (2) (1) Excludes $3,744,000 , which represents a prorated cash dividend from January 1, 2019 to November 20, 2019 related to the 2,693,580 shares of Series L Preferred Stock that were repurchased in connection with the Series L Preferred Stock Tender Offer on November 20, 2019. (2) Includes $1,436,000 , which represents a prorated cash dividend from November 20, 2017 to December 31, 2017. For the year ended December 31, 2017, the accumulated dividends of $1,436,000 are included in the numerator for purposes of calculating basic and diluted net income (loss) attributable to common stockholders per share (Note 9). Cash dividends per share of Common Stock paid in respect of the years ended December 31, 2019 and 2018 consist of the following: Declaration Date Payment Date Type Cash Dividend Per December 3, 2019 December 27, 2019 Regular Quarterly $ 0.075 August 8, 2019 September 18, 2019 Regular Quarterly $ 0.075 August 8, 2019 August 30, 2019 Special Cash $ 42.000 June 4, 2019 June 27, 2019 Regular Quarterly $ 0.375 February 20, 2019 March 25, 2019 Regular Quarterly $ 0.375 December 4, 2018 December 27, 2018 Regular Quarterly $ 0.375 August 22, 2018 September 25, 2018 Regular Quarterly $ 0.375 June 4, 2018 June 28, 2018 Regular Quarterly $ 0.375 March 6, 2018 March 29, 2018 Regular Quarterly $ 0.375 (1) Amounts have been adjusted to give retroactive effect to the Reverse Stock Split. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Changes in the Balance of Each Component of AOCI Related to Our Cash Flow Hedges | The changes in the balance of each component of AOCI related to our interest rate swaps designated as cash flow hedges are as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Accumulated other comprehensive income (loss), at beginning of period $ 1,806 $ 1,631 $ (509 ) Other comprehensive income before reclassifications — 1,973 361 Amounts reclassified (to) from accumulated other comprehensive income (loss) (1) (1,806 ) (1,798 ) 1,779 Net current period other comprehensive income (loss) (1,806 ) 175 2,140 Accumulated other comprehensive income, at end of period $ — $ 1,806 $ 1,631 (1) The amounts from AOCI were reclassified as a (decrease) increase to interest expense in our consolidated statements of operations. |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of derivatives and their classification on consolidated balance sheets | The table below presents the fair value of our derivative financial instruments as well as their classification on our consolidated balance sheets: December 31, Balance Sheet 2019 2018 Level Location (in thousands) Assets: Interest rate swaps $ — $ 1,630 2 Other assets |
Schedule of estimated fair values of financial instruments not recorded at fair value on consolidated balance sheets | The estimated fair values of those financial instruments which are not recorded at fair value on a recurring basis on our consolidated balance sheets are as follows: December 31, 2019 December 31, 2018 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Level (in thousands) Assets: SBA 7(a) loans receivable, subject to loan-backed notes $ 27,595 $ 30,076 $ 37,031 $ 38,357 3 SBA 7(a) loans receivable, subject to credit risk 27,802 29,794 29,748 30,630 3 SBA 7(a) loans receivable, subject to secured borrowings 12,682 12,780 16,469 16,706 3 Liabilities: Mortgages payable (1) 96,926 99,764 386,923 377,364 3 Junior subordinated notes 25,299 24,406 25,215 24,462 3 (1) The December 31, 2018 carrying amount and estimated fair value of mortgages payable exclude one mortgage loan with a carrying value of $28,018,000 that had been classified as liabilities associated with assets held for sale, net, on our consolidated balance sheet at December 31, 2018 (Notes 3 and 7). |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of calculation of asset management fees payable to related party as a percentage of the daily average gross fair value of investments | The fee is calculated as a percentage of the daily average adjusted fair value of CIM Urban's assets: Daily Average Adjusted Fair Value of CIM Urban's Assets Quarterly Fee From Greater of To and Including Percentage (in thousands) $ — $ 500,000 0.2500% 500,000 1,000,000 0.2375% 1,000,000 1,500,000 0.2250% 1,500,000 4,000,000 0.2125% 4,000,000 20,000,000 0.1000% |
FUTURE MINIMUM LEASE RENTALS (T
FUTURE MINIMUM LEASE RENTALS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases, Operating [Abstract] | |
Summary of future minimum rental revenues under long-term operating leases excluding tenant reimbursements of certain costs | Future minimum rental revenue under long-term operating leases at December 31, 2019 , excluding tenant reimbursements of certain costs, are as follows: Years Ending December 31, Total (in thousands) 2020 $ 47,459 2021 41,978 2022 38,691 2023 35,201 2024 33,929 Thereafter 50,809 $ 248,067 |
CONCENTRATIONS (Tables)
CONCENTRATIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Schedule of concentration risk from properties | Our revenue concentrations from properties are as follows: Year Ended December 31, 2019 2018 2017 California 80.6 % 76.0 % 63.3 % Texas 5.5 3.3 6.9 Washington, D.C. 13.9 20.7 25.1 North Carolina — — 3.1 New York — — 1.6 100.0 % 100.0 % 100.0 % Our real estate investments concentrations from properties are as follows: December 31, 2019 2018 California (1) 94.4 % 70.6 % Texas 5.6 2.2 Washington, D.C. — 27.2 100.0 % 100.0 % (1) The December 31, 2018 percentage for California includes the assets of 260 Townsend Street, which was classified as held for sale on our consolidated balance sheet at December 31, 2018 and sold in March 2019 (Note 3). |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of our net income to REIT taxable income | A reconciliation of the provision for income tax attributable to the TRSs' income from continuing operations computed at federal statutory rates to the income tax provision reported in the financial statements is as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Income from continuing operations before income taxes for TRSs $ 4,414 $ 4,962 $ 4,878 Expected federal income tax provision $ 927 $ 1,042 $ 1,658 State income taxes 21 35 27 Change in valuation allowance — — (37 ) Other (66 ) (152 ) (272 ) Income tax provision $ 882 $ 925 $ 1,376 |
Components of our net deferred tax asset | The components of our net deferred tax asset, which are included in other assets, are as follows: December 31, 2019 2018 (in thousands) Deferred tax assets: Net operating losses $ 39 $ 37 Secured borrowings—government guaranteed loans 132 198 Other 166 185 Total gross deferred tax assets 337 420 Valuation allowance (38 ) (38 ) 299 382 Deferred tax liabilities: Loans receivable (210 ) (255 ) (210 ) (255 ) Deferred tax asset, net $ 89 $ 127 |
SEGMENT DISCLOSURE (Tables)
SEGMENT DISCLOSURE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of net operating income of reportable segments | The net operating income of our segments for the years ended December 31, 2019 , 2018 and 2017 is as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Office: Revenues $ 86,948 $ 147,811 $ 173,853 Property expenses: Operating 36,638 54,654 68,650 General and administrative 521 2,350 981 Total property expenses 37,159 57,004 69,631 Segment net operating income—office 49,789 90,807 104,222 Hotel: Revenues 38,748 38,789 38,585 Property expenses: Operating 26,290 25,263 25,059 General and administrative 134 32 77 Total property expenses 26,424 25,295 25,136 Segment net operating income—hotel 12,324 13,494 13,449 Multifamily: Revenues — — 13,400 Property expenses: Operating — — 7,559 General and administrative — — 393 Total property expenses — — 7,952 Segment net operating income—multifamily — — 5,448 Lending: Revenues 10,964 10,870 10,221 Lending expenses: Interest expense 1,814 1,412 414 Fees to related party 2,382 2,445 3,464 General and administrative 1,630 1,857 1,010 Total lending expenses 5,826 5,714 4,888 Segment net operating income—lending 5,138 5,156 5,333 Total segment net operating income $ 67,251 $ 109,457 $ 128,452 |
Schedule of reconciliation of segment net operating income to net income attributable to stockholders | A reconciliation of our segment net operating income to net income attributable to the Company for the years ended December 31, 2019 , 2018 and 2017 is as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Total segment net operating income $ 67,251 $ 109,457 $ 128,452 Interest and other income 3,329 — — Asset management and other fees to related parties (15,921 ) (22,006 ) (26,787 ) Interest expense (10,361 ) (25,482 ) (34,070 ) General and administrative (4,069 ) (4,928 ) (3,018 ) Transaction costs (574 ) (938 ) (11,862 ) Depreciation and amortization (27,374 ) (53,228 ) (58,364 ) Loss on early extinguishment of debt (29,982 ) (808 ) (8,215 ) Impairment of real estate (69,000 ) — (13,100 ) Gain on sale of real estate 433,104 — 408,098 Income before provision for income taxes 346,403 2,067 381,134 Provision for income taxes (882 ) (925 ) (1,376 ) Net income 345,521 1,142 379,758 Net loss (income) attributable to noncontrolling interests 152 (21 ) (21 ) Net income attributable to the Company $ 345,673 $ 1,121 $ 379,737 |
Schedule of segment condensed assets | The condensed assets for each of the segments as of December 31, 2019 and 2018 , along with capital expenditures and loan originations for the years ended December 31, 2019 , 2018 , and 2017 are as follows: December 31, 2019 2018 (in thousands) Condensed assets: Office (1) $ 460,951 $ 1,094,269 Hotel 104,029 105,845 Lending 82,140 97,465 Non-segment assets 20,472 44,822 Total assets $ 667,592 $ 1,342,401 |
Schedule of capital expenditures | Year Ended December 31, 2019 2018 2017 (in thousands) Capital expenditures (2): Office (1) $ 16,006 $ 12,669 $ 24,907 Hotel 2,382 2,237 478 Multifamily — — 693 Total capital expenditures 18,388 14,906 26,078 Loan originations 39,592 74,234 76,316 Total capital expenditures and loan originations $ 57,980 $ 89,140 $ 102,394 (1) The December 31, 2018 balances include the assets of 260 Townsend Street, which was classified as held for sale on our consolidated balance sheet at December 31, 2018 and sold in March 2019 (Note 3). (2) Represents additions and improvements to real estate investments, excluding acquisitions. Includes the activity for dispositions through their respective disposition dates. |
QUARTERLY FINANCIAL INFORMATI_2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of quarterly financial information | The following is a summary of quarterly financial information for the year ended December 31, 2019 : Three Months Ended March 31, June 30, September 30, December 31, (in thousands, except per share amounts) 2019 Revenues $ 47,277 $ 36,856 $ 29,215 $ 26,641 Loss on early extinguishment of debt 25,071 4,911 — — Impairment of real estate 66,200 2,800 — — Gain on sale of real estate 377,581 55,221 302 — Net income (loss) 291,623 52,567 2,856 (1,525 ) Net income (loss) attributable to the Company 291,797 52,566 2,848 (1,538 ) Redeemable preferred stock dividends declared or accumulated (4,162 ) (4,302 ) (4,470 ) (4,161 ) Redeemable preferred stock redemptions (4 ) (4 ) — (5,874 ) Net income (loss) attributable to common stockholders 287,631 48,260 (1,622 ) (11,573 ) NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS PER SHARE (1) (2): Basic $ 19.70 $ 3.31 $ (0.11 ) $ (0.79 ) Diluted $ 18.90 $ 3.20 $ (0.11 ) $ (0.79 ) Weighted average shares of common stock outstanding - basic 14,598 14,597 14,598 14,598 Weighted average shares of common stock outstanding - diluted 15,245 15,284 14,599 14,599 (1) EPS for the year-to-date period may differ from the sum of quarterly EPS amounts due to the required method for computing EPS in the respective periods. In addition, EPS is calculated independently for each component and may not be additive due to rounding. (2) Amounts have been adjusted to give retroactive effect to the Reverse Stock Split. The following is a summary of quarterly financial information for the year ended December 31, 2018 : Three Months Ended March 31, June 30, September 30, December 31, (in thousands except per share amounts) 2018 Revenues as previously reported (1) $ 48,398 $ 51,559 $ 47,640 $ 50,127 Bad debt expense recorded as adjustment to revenues (1) (104 ) (15 ) (33 ) (102 ) Revenues 48,294 51,544 47,607 50,025 Loss on early extinguishment of debt — — — 808 Net income (loss) 622 1,949 (529 ) (900 ) Net income (loss) attributable to the Company 618 1,937 (528 ) (906 ) Redeemable preferred stock dividends declared or accumulated (3,645 ) (3,814 ) (3,921 ) (4,043 ) Redeemable preferred stock redemptions 1 1 1 1 Net loss attributable to common stockholders (3,026 ) (1,876 ) (4,448 ) (4,948 ) NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS PER SHARE (2) (3): Basic $ (0.21 ) $ (0.13 ) $ (0.30 ) $ (0.34 ) Diluted $ (0.21 ) $ (0.13 ) $ (0.30 ) $ (0.34 ) Weighted average shares of common stock outstanding - basic 14,595 14,597 14,598 14,598 Weighted average shares of common stock outstanding - diluted 14,595 14,597 14,598 14,598 (1) Represents revenues for the three months ended March 31, June 30, September 30, and December 31, 2018 , as previously reported in the Annual Report on Form 10-K for the year ended December 31, 2018 . Under the new leasing guidance, bad debt expense associated with changes in the collectability assessment for operating leases shall be recorded as adjustments to rental and other property income rather than other property operating expense (Note 2). (2) EPS for the year-to-date period may differ from the sum of quarterly EPS amounts due to the required method for computing EPS in the respective periods. In addition, EPS is calculated independently for each component and may not be additive due to rounding. (3) Amounts have been adjusted to give retroactive effect to the Reverse Stock Split. |
ORGANIZATION AND OPERATIONS (De
ORGANIZATION AND OPERATIONS (Details) | Sep. 03, 2019$ / shares | Mar. 16, 2020USD ($) | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares |
Class of Stock [Line Items] | ||||
Common stock, par value (in usd per share) | $ / shares | $ 0.003 | $ 0.001 | $ 0.003 | |
Common stock, shares authorized (in shares) | shares | 900,000,000 | 900,000,000 | ||
Preferred stock, shares authorized (in shares) | shares | 100,000,000 | |||
Reverse stock split ratio, common stock | 0.3333 | |||
Subsequent event | ||||
Class of Stock [Line Items] | ||||
Sale of stock, maximum aggregate offering price | $ | $ 25,000,000 | |||
Series L Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.001 | $ 0.001 |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments in Real Estate | |||||||
Impairment of real estate | $ 0 | $ 0 | $ 2,800 | $ 66,200 | $ 69,000 | $ 0 | $ 13,100 |
Buildings and improvements | Minimum | |||||||
Investments in Real Estate | |||||||
Estimated useful lives | 15 years | ||||||
Buildings and improvements | Maximum | |||||||
Investments in Real Estate | |||||||
Estimated useful lives | 40 years | ||||||
Furniture, fixtures, and equipment | Minimum | |||||||
Investments in Real Estate | |||||||
Estimated useful lives | 3 years | ||||||
Furniture, fixtures, and equipment | Maximum | |||||||
Investments in Real Estate | |||||||
Estimated useful lives | 5 years |
BASIS OF PRESENTATION AND SUM_5
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loans Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 | Mar. 11, 2014 | |
Loans receivable | |||||
Unamortized retained loan discounts | $ 7,631 | $ 7,234 | |||
Loan receivable, nonaccrual, past due period (more than) | 60 days | ||||
Impairment (recovery) on loans receivable | $ 66 | 147 | $ 97 | ||
PMC Commercial | |||||
Loans receivable | |||||
Discount on acquisition | $ 33,907 | ||||
Acquisition discounts | $ 624 | $ 884 | |||
Commercial mortgage loans receivable | |||||
Loans receivable | |||||
Unamortized acquisition discounts | $ 15,951 |
BASIS OF PRESENTATION AND SUM_6
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Allowance for uncollectible accounts receivable | $ 45 | $ 160 |
BASIS OF PRESENTATION AND SUM_7
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Deferred Rent Receivable and Charges (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Deferred rent receivable | $ 19,988 | $ 52,366 |
Deferred leasing costs, gross | 16,881 | 51,152 |
Deferred leasing costs, accumulated amortization | 7,438 | 23,910 |
Deferred offering costs | 5,275 | 4,213 |
Other deferred costs | $ 151 | $ 409 |
BASIS OF PRESENTATION AND SUM_8
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Redeemable Preferred Stock (Details) - Series A Preferred Stock | 12 Months Ended |
Dec. 31, 2019 | |
Class of Stock [Line Items] | |
Preferred stock, percentage of stated value | 100.00% |
Preferred stock redemption, trading days prior to redemption | 20 days |
BASIS OF PRESENTATION AND SUM_9
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Purchase Accounting for Acquisition of Investments in Real Estate (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Tax Abatement | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 8 years |
BASIS OF PRESENTATION AND SU_10
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Lease incentives | $ 3,976,000 | $ 12,958,000 | |
Lease incentives, accumulated amortization | 2,029,000 | 6,188,000 | |
Percentage rent | 40,000 | ||
Percentage rent | 65,000 | $ 304,000 | |
Fixed lease payments | 80,205,000 | 136,145,000 | 162,479,000 |
Variable lease payments | 8,126,000 | 10,950,000 | 13,055,000 |
Rental and other property income | 88,331,000 | 147,095,000 | 175,534,000 |
Hotel revenues | 35,633,000 | 35,672,000 | 35,576,000 |
Tenant recoveries outside of lease agreements | 205,000 | 399,000 | 6,822,000 |
Performance obligations | 0 | ||
Other Lease and Other Property Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Parking percentage rent | 160,000 | 1,509,000 | 1,881,000 |
Revenue from Contract with Customer | |||
Disaggregation of Revenue [Line Items] | |||
Parking percentage rent | 0 | 0 | 733,000 |
Rental and other property income | |||
Disaggregation of Revenue [Line Items] | |||
Hotel revenues | 2,947,000 | 2,922,000 | 2,877,000 |
Interest and other income | |||
Disaggregation of Revenue [Line Items] | |||
Hotel revenues | 168,000 | 195,000 | 132,000 |
Hotel revenues | |||
Disaggregation of Revenue [Line Items] | |||
Hotel revenues | $ 38,748,000 | $ 38,789,000 | $ 38,585,000 |
BASIS OF PRESENTATION AND SU_11
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reclassifications (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Rental and other property operating | $ (62,928,000) | $ (79,917,000) | $ (101,268,000) |
Other assets | 9,222,000 | 18,469,000 | |
Increase to net cash provided by (used in) operating activities | $ 40,985,000 | 61,456,000 | (2,724,000) |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Tenant reimbursements | 9,039,000 | 9,264,000 | |
Tenant reimbursements, non-lease | 984,000 | 7,382,000 | |
Rental and other property operating | 254,000 | 317,000 | |
Interest expense to loss on early extinguishment of debt | 808,000 | 1,854,000 | |
Accounting Standards Update 2016-15 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Gain on sale of real estate to loss on early extinguishment of debt | 6,361,000 | ||
Other assets | 272,000 | 1,579,000 | |
Increase to net cash provided by (used in) operating activities | $ 1,307,000 | $ 1,579,000 |
BASIS OF PRESENTATION AND SU_12
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segment (Details) - property | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Number of types of commercial real estate properties | 2 | 2 | 3 |
BASIS OF PRESENTATION AND SU_13
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Accounting Pronouncements (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)contract | Jan. 01, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of lease contracts | contract | 1 | |
Operating lease, right-of-use asset | $ 106,000 | |
Operating lease, liability | $ 106,000 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, right-of-use asset | $ 362,000 | |
Operating lease, liability | $ 362,000 |
ACQUISITIONS AND DISPOSITIONS -
ACQUISITIONS AND DISPOSITIONS - 2019 Disposals (Details) $ in Thousands | Jul. 30, 2019USD ($)ft² | May 16, 2019USD ($)ft² | Mar. 14, 2019USD ($)ft² | Mar. 01, 2019USD ($)ft² | Mar. 31, 2019 | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)acquistion | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Number of acquisitions | acquistion | 0 | |||||||||||
Percentage of ownership sold | 100.00% | |||||||||||
Sales Price | $ 941,032 | $ 0 | $ 1,018,476 | |||||||||
Gain on Sale | $ 0 | $ 302 | $ 55,221 | $ 377,581 | 433,104 | 0 | 408,098 | |||||
Impairment of real estate (Note 2) | $ 0 | $ 0 | $ 2,800 | $ 66,200 | 69,000 | $ 0 | $ 13,100 | |||||
Extinguishment of noncontrolling interests as a result of the sale | 113 | |||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Percentage of ownership sold | 100.00% | 100.00% | ||||||||||
Sales Price | 990,996 | $ 1,092,737 | ||||||||||
Transaction Costs | 18,350 | 13,420 | ||||||||||
Gain on Sale | $ 433,104 | $ 408,098 | ||||||||||
March Oakland Properties, Oakland, CA | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Square Feet | ft² | 975,596 | |||||||||||
Sales Price | $ 512,016 | |||||||||||
Transaction Costs | 8,971 | |||||||||||
Gain on Sale | $ 289,779 | |||||||||||
830 1st Street, Washington, D.C. | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Square Feet | ft² | 247,337 | |||||||||||
Sales Price | $ 116,550 | |||||||||||
Transaction Costs | 2,438 | |||||||||||
Gain on Sale | $ 45,710 | |||||||||||
260 Townsend Street, San Francisco, CA | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Square Feet | ft² | 66,682 | |||||||||||
Sales Price | $ 66,000 | |||||||||||
Transaction Costs | 2,539 | |||||||||||
Gain on Sale | $ 42,092 | |||||||||||
1333 Broadway, Oakland, CA | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Square Feet | ft² | 254,523 | |||||||||||
Sales Price | $ 115,430 | |||||||||||
Transaction Costs | 658 | |||||||||||
Gain on Sale | $ 55,221 | |||||||||||
Union Square Properties,Washington, D.C. | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Square Feet | ft² | 630,650 | |||||||||||
Sales Price | $ 181,000 | |||||||||||
Transaction Costs | 3,744 | |||||||||||
Gain on Sale | $ 302 |
ACQUISITIONS AND DISPOSITIONS_2
ACQUISITIONS AND DISPOSITIONS - 2018 Disposals (Details) $ in Thousands | Jan. 18, 2018USD ($)ft² | Dec. 29, 2017USD ($)ft² | Dec. 31, 2017USD ($) |
9460 Wilshire Boulevard, Beverly Hills, CA | |||
Business Acquisition [Line Items] | |||
Percentage of ownership acquired | 100.00% | ||
Square Feet | ft² | 91,750 | ||
Purchase price | $ 132,000 | ||
Escrow deposit | $ 20,000 | ||
Closing costs and assumption of liabilities | $ 48 | ||
9460 Wilshire Boulevard in Los Angeles, California - Office Space | |||
Business Acquisition [Line Items] | |||
Square Feet | ft² | 68,866 | ||
9460 Wilshire Boulevard in Los Angeles, California - Retail Space | |||
Business Acquisition [Line Items] | |||
Square Feet | ft² | 22,884 | ||
1130 Howard Street, San Francisco, CA | |||
Business Acquisition [Line Items] | |||
Percentage of ownership acquired | 100.00% | ||
Square Feet | ft² | 21,194 | ||
Purchase price | $ 17,717 | ||
Closing costs and assumption of liabilities | $ 1,915 |
ACQUISITIONS AND DISPOSITIONS_3
ACQUISITIONS AND DISPOSITIONS - 2017 Disposals (Details) $ in Thousands | Dec. 29, 2017USD ($)ft² | Dec. 15, 2017USD ($)apartment | Oct. 17, 2017USD ($)ft² | Sep. 26, 2017USD ($)apartment | Sep. 21, 2017USD ($)ft² | Aug. 31, 2017USD ($)ft² | Jun. 23, 2017USD ($)apartment | Jun. 20, 2017USD ($)ft² | Jun. 08, 2017USD ($)ft² | May 30, 2017USD ($)apartment | Mar. 28, 2017USD ($)ft² | Mar. 31, 2019 | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Percentage of ownership sold | 100.00% | ||||||||||||||||||
Sales Price | $ 941,032 | $ 0 | $ 1,018,476 | ||||||||||||||||
Gain on Sale | $ 0 | $ 302 | $ 55,221 | $ 377,581 | 433,104 | 0 | 408,098 | ||||||||||||
Impairment of real estate | $ 0 | $ 0 | $ 2,800 | $ 66,200 | 69,000 | $ 0 | $ 13,100 | ||||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Percentage of ownership sold | 100.00% | 100.00% | |||||||||||||||||
Sales Price | 990,996 | $ 1,092,737 | |||||||||||||||||
Transaction Costs | 18,350 | 13,420 | |||||||||||||||||
Gain on Sale | $ 433,104 | $ 408,098 | |||||||||||||||||
211 Main Street, San Francisco, CA (2) | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Square Feet | ft² | 417,266 | ||||||||||||||||||
Sales Price | $ 292,882 | ||||||||||||||||||
Transaction Costs | 1,435 | ||||||||||||||||||
Gain on Sale | $ 189,242 | ||||||||||||||||||
3636 McKinney Avenue, Dallas, TX (2) | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Number of units (in apartments) | apartment | 103 | ||||||||||||||||||
Sales Price | $ 20,000 | ||||||||||||||||||
Transaction Costs | 177 | ||||||||||||||||||
Gain on Sale | $ 6,631 | ||||||||||||||||||
3839 McKinney Avenue, Dallas, TX (2) | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Number of units (in apartments) | apartment | 75 | ||||||||||||||||||
Sales Price | $ 14,100 | ||||||||||||||||||
Transaction Costs | 180 | ||||||||||||||||||
Gain on Sale | $ 4,982 | ||||||||||||||||||
200 S College Street, Charlotte, NC | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Square Feet | ft² | 567,865 | ||||||||||||||||||
Sales Price | $ 148,500 | ||||||||||||||||||
Transaction Costs | 833 | ||||||||||||||||||
Gain on Sale | $ 45,906 | ||||||||||||||||||
980 9th and 1010 8th Street, Sacramento, CA | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Square Feet | ft² | 485,926 | ||||||||||||||||||
Sales Price | $ 120,500 | ||||||||||||||||||
Transaction Costs | 1,119 | ||||||||||||||||||
Gain on Sale | $ 34,559 | ||||||||||||||||||
4649 Cole Avenue, Dallas, TX (2) | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Number of units (in apartments) | apartment | 334 | ||||||||||||||||||
Sales Price | $ 64,000 | ||||||||||||||||||
Transaction Costs | 499 | ||||||||||||||||||
Gain on Sale | $ 28,648 | ||||||||||||||||||
800 N Capitol Street, Washington, D.C. | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Square Feet | ft² | 311,593 | ||||||||||||||||||
Percentage of ownership sold | 100.00% | ||||||||||||||||||
Sales Price | $ 119,750 | ||||||||||||||||||
Transaction Costs | 2,388 | ||||||||||||||||||
Gain on Sale | $ 34,456 | ||||||||||||||||||
7083 Hollywood Boulevard | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Square Feet | ft² | 82,193 | ||||||||||||||||||
Sales Price | $ 42,300 | ||||||||||||||||||
Transaction Costs | 584 | ||||||||||||||||||
Gain on Sale | $ 23,810 | ||||||||||||||||||
47 E 34th Street, New York, NY | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Number of units (in apartments) | apartment | 110 | ||||||||||||||||||
Sales Price | $ 80,000 | ||||||||||||||||||
Transaction Costs | 3,157 | ||||||||||||||||||
Gain on Sale | $ 16,556 | ||||||||||||||||||
370 L'Enfant Promenade, Washington, D.C. (4) | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Square Feet | ft² | 409,897 | ||||||||||||||||||
Sales Price | $ 126,680 | ||||||||||||||||||
Transaction Costs | 2,451 | ||||||||||||||||||
Gain on Sale | $ 2,994 | ||||||||||||||||||
4200 Scotland Street, Houston, TX | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Number of units (in apartments) | apartment | 308 | ||||||||||||||||||
Sales Price | $ 64,025 | ||||||||||||||||||
Transaction Costs | 597 | ||||||||||||||||||
Gain on Sale | $ 20,314 | ||||||||||||||||||
1130 Howard Street, San Francisco, CA | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Percentage of ownership acquired | 100.00% | ||||||||||||||||||
Square Feet | ft² | 21,194 | ||||||||||||||||||
Purchase price | $ 17,717 | ||||||||||||||||||
Closing costs and assumption of liabilities | $ 1,915 |
ACQUISITIONS AND DISPOSITIONS_4
ACQUISITIONS AND DISPOSITIONS - Carrying Value of Assets and Liabilities at Time of Sale and Held for Sale (Details) - USD ($) $ in Thousands | Mar. 14, 2019 | Mar. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 16, 2019 |
Assets | ||||||
Total assets, net | $ 0 | $ 22,175 | ||||
Liabilities | ||||||
Total liabilities | 0 | 28,766 | ||||
Deferred loan costs | 1,704 | |||||
Debt, accumulated amortization | 576 | |||||
Payment of mortgages payable | 46,000 | 0 | $ 65,877 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Assets | ||||||
Investments in real estate, net | 476,532 | 0 | 631,740 | |||
Deferred rent receivable and charges, net | 55,297 | 0 | 34,071 | |||
Other intangible assets, net | 316 | 0 | 11,283 | |||
Other assets | 4,096 | 0 | 38 | |||
Total assets, net | 536,241 | 0 | 677,132 | |||
Liabilities | ||||||
Debt, net | 318,072 | 0 | 115,037 | |||
Other liabilities | 0 | 0 | 14,029 | |||
Intangible liabilities, net | 0 | 0 | 1,800 | |||
Total liabilities | $ 318,072 | 0 | 130,866 | |||
Premium on assumed mortgage | 665 | |||||
Debt assumed by buyers | $ 50,260 | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||
Assets | ||||||
Investments in real estate, net | 17,123 | |||||
Cash and cash equivalents | 755 | |||||
Accounts receivable, net | 41 | |||||
Deferred rent receivable and charges, net | 4,009 | |||||
Other intangible assets, net | 220 | |||||
Other assets | 27 | |||||
Total assets, net | 22,175 | |||||
Liabilities | ||||||
Debt, net | 28,018 | |||||
Accounts payable and accrued expenses | 370 | |||||
Due to related parties | 81 | |||||
Other liabilities | 297 | |||||
Total liabilities | 28,766 | |||||
Deferred loan costs | 243 | |||||
Debt, accumulated amortization | 61 | |||||
Investments in real estate | 24,832 | |||||
Investments in real estate, accumulated depreciation | 7,709 | |||||
Deferred rent receivable | 2,909 | |||||
Deferred leasing costs | 1,669 | |||||
Deferred leasing cost, accumulated amortization | 569 | |||||
Debt, gross | 28,200 | |||||
Acquired in-place Leases | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||
Assets | ||||||
Other intangible assets, net | 1,778 | |||||
Liabilities | ||||||
Other intangible assets, accumulated amortization | $ 1,558 | |||||
Office Property, San Fransisco California | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Liabilities | ||||||
Outstanding amount | $ 28,200 | |||||
Office Property, Washington, D.C | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Liabilities | ||||||
Payment of mortgages payable | $ 46,000 | |||||
Mortgage Loan4.14 Percent Due On1 July2026 | Properties Used As Collateral For Loans | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Liabilities | ||||||
Defeased amount | $ 205,500 | $ 39,500 | ||||
Mortgage Loan4.14 Percent Due On1 July2026 | 1333 Broadway, Oakland, CA | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Liabilities | ||||||
Defeased amount | $ 39,500 |
ACQUISITIONS AND DISPOSITIONS_5
ACQUISITIONS AND DISPOSITIONS - Fair Value of Net Assets Acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||
Percentage represent aggregate of assets, less than | 10.00% | 10.00% | |
Net assets acquired | $ 0 | $ 132,048 | $ 19,631 |
Land | |||
Business Acquisition [Line Items] | |||
Property, plant and equipment | 0 | 52,199 | 8,290 |
Land improvements | |||
Business Acquisition [Line Items] | |||
Property, plant and equipment | 0 | 756 | 0 |
Buildings and improvements | |||
Business Acquisition [Line Items] | |||
Property, plant and equipment | 0 | 74,522 | 10,109 |
Tenant improvements | |||
Business Acquisition [Line Items] | |||
Property, plant and equipment | 0 | 1,451 | 371 |
Acquired in-place Leases | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 0 | $ 7,003 | 1,184 |
Weighted average amortization period | 8 years | 8 years | |
Acquired above-market leases | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 0 | $ 109 | $ 37 |
Weighted average amortization period | 2 years | 7 years | |
Acquired below-market leases | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 0 | $ 3,992 | $ 360 |
Weighted average amortization period | 3 years | 2 years | |
2018 Acquisitions | Acquired in-place Leases | |||
Business Acquisition [Line Items] | |||
Weighted average amortization period | 3 years | ||
2017 Acquisitions | Acquired in-place Leases | |||
Business Acquisition [Line Items] | |||
Weighted average amortization period | 5 years |
INVESTMENTS IN REAL ESTATE (Det
INVESTMENTS IN REAL ESTATE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Real Estate [Abstract] | |||
Land | $ 134,421 | $ 266,410 | |
Land improvements | 2,713 | 18,368 | |
Buildings and improvements | 438,349 | 912,892 | |
Furniture, fixtures, and equipment | 4,628 | 4,245 | |
Tenant improvements | 35,667 | 133,487 | |
Work in progress | 13,484 | 9,234 | |
Investments in real estate | 629,262 | 1,344,636 | |
Accumulated depreciation | (120,555) | (303,699) | |
Net investments in real estate | 508,707 | 1,040,937 | |
Depreciation expense | $ 22,209 | $ 43,499 | $ 49,427 |
LOANS RECEIVABLE (Details)
LOANS RECEIVABLE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loans receivable | ||
Loans receivable | $ 67,532 | $ 82,641 |
Deferred capitalized costs | 1,145 | 1,309 |
Loan loss reserves | (598) | (702) |
Loans receivable, net | 68,079 | 83,248 |
SBA 7(a) loans receivable, subject to loan-backed notes | ||
Loans receivable | ||
Loans receivable | 27,598 | 36,847 |
SBA 7(a) loans receivable, subject to credit risk | ||
Loans receivable | ||
Loans receivable | $ 27,290 | $ 29,385 |
Loans, percent current | 99.60% | 99.70% |
SBA 7(a) loans receivable, subject to secured borrowings | ||
Loans receivable | ||
Loans receivable | $ 12,644 | $ 16,409 |
Substandard | SBA 7(a) loans receivable, subject to credit risk | ||
Loans receivable | ||
Loans receivable | $ 1,362 | $ 235 |
Hospitality Industry | Loans subject to credit risk | ||
Loans receivable | ||
Concentration risk, percent | 98.70% | 98.30% |
OTHER INTANGIBLE ASSETS (Detail
OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible liabilities | |||
Net | $ (1,282) | $ (2,872) | |
Future accretion of acquisition related intangible liabilities | |||
Net | (1,282) | (2,872) | |
Acquired Below-Market Leases | |||
Intangible liabilities | |||
Gross balance | (3,521) | (6,618) | |
Accumulated amortization | 2,239 | 3,746 | |
Net | $ (1,282) | $ (2,872) | |
Average useful life (in years) | 4 years | 4 years | |
Amortization | |||
Amortization expenses, above and below market leases | $ 1,590 | $ 2,190 | $ 1,066 |
Future accretion of acquisition related intangible liabilities | |||
2020 | (701) | ||
2021 | (347) | ||
2022 | (234) | ||
2023 | 0 | ||
2024 | 0 | ||
Thereafter | 0 | ||
Net | (1,282) | (2,872) | |
Acquired Above-Market Leases | |||
Intangible assets | |||
Gross balance | 74 | 146 | |
Accumulated amortization | (42) | (51) | |
Net | $ 32 | $ 95 | |
Average useful life (in years) | 5 years | 3 years | |
Amortization | |||
Amortization expenses, above and below market leases | $ 63 | $ 51 | 3 |
Future amortization of acquisition related intangible assets | |||
2020 | 9 | ||
2021 | 5 | ||
2022 | 5 | ||
2023 | 6 | ||
2024 | 6 | ||
Thereafter | 1 | ||
Net | 32 | 95 | |
Acquired In-Place Leases | |||
Intangible assets | |||
Gross balance | 13,653 | 16,210 | |
Accumulated amortization | (9,382) | (9,731) | |
Net | $ 4,271 | $ 6,479 | |
Average useful life (in years) | 8 years | 8 years | |
Amortization | |||
Amortization expenses | $ 2,112 | $ 3,691 | 808 |
Future amortization of acquisition related intangible assets | |||
2020 | 1,349 | ||
2021 | 899 | ||
2022 | 663 | ||
2023 | 375 | ||
2024 | 375 | ||
Thereafter | 610 | ||
Net | 4,271 | 6,479 | |
Trade Name and License | |||
Intangible assets | |||
Gross balance | 2,957 | 2,957 | |
Accumulated amortization | 0 | 0 | |
Net | 2,957 | 2,957 | |
Future amortization of acquisition related intangible assets | |||
Net | 2,957 | 2,957 | |
Tax Abatement | |||
Amortization | |||
Amortization expenses | 0 | 0 | 276 |
Acquired Below-Market Ground Lease | |||
Amortization | |||
Amortization expenses | $ 0 | $ 0 | $ 93 |
DEBT - Schedule (Details)
DEBT - Schedule (Details) - USD ($) | May 30, 2018 | Dec. 31, 2019 | May 16, 2019 | Mar. 01, 2019 | Dec. 31, 2018 |
Debt | |||||
Total Debt | $ 307,421,000 | $ 588,671,000 | |||
Mortgages Payable | |||||
Debt | |||||
Gross debt | 97,100,000 | 388,100,000 | |||
Deferred loan costs | (174,000) | (1,177,000) | |||
Total Debt | 96,926,000 | 386,923,000 | |||
Mortgage loans with a fixed interest rate of 4.14% per annum | |||||
Debt | |||||
Gross debt | $ 97,100,000 | 342,100,000 | |||
Fixed interest rate | 4.14% | ||||
Amount of balance due on maturity | $ 97,100,000 | ||||
Mortgage loan with a fixed interest rate of 4.50% per annum | |||||
Debt | |||||
Gross debt | $ 0 | 46,000,000 | |||
Fixed interest rate | 4.50% | ||||
Amount of balance due on maturity | $ 42,008,000 | ||||
Period of amortization schedule | 10 years | ||||
Secured Borrowings - Government Guaranteed Loans | |||||
Debt | |||||
Gross debt | $ 12,152,000 | 15,765,000 | |||
Premiums and discounts | 629,000 | 940,000 | |||
Total Debt | 12,781,000 | 16,705,000 | |||
Secured borrowing principal on SBA 7(a) loans sold for a premium and excess spread | |||||
Debt | |||||
Gross debt | $ 7,845,000 | $ 11,283,000 | |||
Weighted average rate | 5.68% | 5.89% | |||
Secured borrowing principal on SBA 7(a) loans sold for excess spread | |||||
Debt | |||||
Gross debt | $ 4,307,000 | $ 4,482,000 | |||
Weighted average rate | 3.32% | 3.57% | |||
Loan Backed Notes | |||||
Debt | |||||
Gross debt | $ 22,282,000 | $ 33,769,000 | |||
Loan Backed Notes | LIBOR | |||||
Debt | |||||
Interest rate margin | 1.40% | 1.40% | |||
Loan Backed Notes | Prime Rate | |||||
Debt | |||||
Interest rate margin | 1.08% | 1.08% | |||
Junior subordinated notes | |||||
Debt | |||||
Gross debt | $ 27,070,000 | 27,070,000 | |||
Premiums and discounts | $ (1,771,000) | (1,855,000) | |||
Junior subordinated notes | LIBOR | |||||
Debt | |||||
Interest rate margin | 3.25% | ||||
Other debt | |||||
Debt | |||||
Gross debt | $ 202,352,000 | 190,839,000 | |||
Total Debt | 197,714,000 | 185,043,000 | |||
Unsecured term loan and credit facilities | |||||
Debt | |||||
Deferred loan costs | (2,867,000) | (3,941,000) | |||
Revolving Credit Facility | Line of Credit | |||||
Debt | |||||
Gross debt | $ 153,000,000 | $ 130,000,000 | |||
Properties Used As Collateral For Loans | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Mortgage loans with a fixed interest rate of 4.14% per annum | |||||
Debt | |||||
Defeased amount | $ 39,500,000 | $ 205,500,000 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | May 16, 2019USD ($)mortgage_loan | Mar. 14, 2019USD ($)mortgage_loan | Mar. 11, 2019USD ($)swap | Mar. 01, 2019USD ($) | Feb. 28, 2019USD ($) | Dec. 28, 2018USD ($)swap | Oct. 30, 2018USD ($) | May 30, 2018USD ($) | Dec. 15, 2017USD ($) | Sep. 21, 2017USD ($)mortgage_loan | Jun. 23, 2017USD ($) | May 30, 2017USD ($)propertymortgage_loan | Mar. 28, 2017USD ($) | Oct. 31, 2018USD ($)extension_option | Jun. 30, 2016USD ($)agreement | May 31, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)property | Dec. 31, 2017USD ($)swap | Aug. 13, 2015USD ($) |
Debt | |||||||||||||||||||||||||||||
Deferred loan costs, gross | $ 4,535,000 | $ 5,994,000 | $ 4,535,000 | $ 5,994,000 | |||||||||||||||||||||||||
Deferred loan costs, accumulated amortization | 1,494,000 | 876,000 | 1,494,000 | 876,000 | |||||||||||||||||||||||||
Loss on early extinguishment of debt | 0 | $ 0 | $ 4,911,000 | $ 25,071,000 | 808,000 | $ 0 | $ 0 | $ 0 | 29,982,000 | 808,000 | $ 8,215,000 | ||||||||||||||||||
Issuance of notes | 0 | 38,200,000 | 0 | ||||||||||||||||||||||||||
Restricted cash | 12,146,000 | 22,512,000 | 12,146,000 | 22,512,000 | $ 27,008,000 | ||||||||||||||||||||||||
Number of swaps terminated | swap | 2 | 1 | 7 | ||||||||||||||||||||||||||
Notional amount of terminated swaps | $ 120,000,000 | $ 50,000,000 | $ 215,000,000 | ||||||||||||||||||||||||||
Payment of mortgages payable | 46,000,000 | 0 | 65,877,000 | ||||||||||||||||||||||||||
Mortgage prepayment penalty | 5,660,000 | $ 0 | 6,361,000 | ||||||||||||||||||||||||||
Number of multifamily properties sold | property | 0 | ||||||||||||||||||||||||||||
Number of mortgage loans paid off | mortgage_loan | 2 | ||||||||||||||||||||||||||||
Accrued interest and unused commitment fee payable | 650,000 | 1,574,000 | 650,000 | $ 1,574,000 | |||||||||||||||||||||||||
Unsecured credit facility entered into in September 2014 | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 850,000,000 | ||||||||||||||||||||||||||||
Unsecured credit facility entered into in September 2014, revolver | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 450,000,000 | ||||||||||||||||||||||||||||
Unsecured credit facility entered into in September 2014, revolver | Base rate | Minimum | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Interest rate margin | 0.20% | ||||||||||||||||||||||||||||
Unsecured credit facility entered into in September 2014, revolver | Base rate | Maximum | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Interest rate margin | 1.00% | ||||||||||||||||||||||||||||
Unsecured credit facility entered into in September 2014, revolver | LIBOR | Minimum | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Interest rate margin | 1.20% | ||||||||||||||||||||||||||||
Unsecured credit facility entered into in September 2014, revolver | LIBOR | Maximum | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Interest rate margin | 2.00% | ||||||||||||||||||||||||||||
Unsecured credit facility entered into in September 2014, term loan | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 325,000,000 | ||||||||||||||||||||||||||||
Unsecured credit facility entered into in September 2014, term loan | Base rate | Minimum | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Interest rate margin | 0.15% | ||||||||||||||||||||||||||||
Unsecured credit facility entered into in September 2014, term loan | Base rate | Maximum | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Interest rate margin | 0.95% | ||||||||||||||||||||||||||||
Unsecured credit facility entered into in September 2014, term loan | LIBOR | Minimum | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Interest rate margin | 1.15% | ||||||||||||||||||||||||||||
Unsecured credit facility entered into in September 2014, term loan | LIBOR | Maximum | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Interest rate margin | 1.95% | ||||||||||||||||||||||||||||
Unsecured credit facility entered into in September 2014, delayed-draw term loan | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 75,000,000 | ||||||||||||||||||||||||||||
Unsecured term facility entered into in May 2015 | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Deferred loan costs, accumulated amortization | 705,000 | ||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 385,000,000 | ||||||||||||||||||||||||||||
Effective interest rate | 3.16% | ||||||||||||||||||||||||||||
Repayments of debt | 215,000,000 | ||||||||||||||||||||||||||||
Write off of deferred loan costs | $ 1,872,000 | 1,988,000 | |||||||||||||||||||||||||||
Write off of deferred debt issuance cost amortization | 1,064,000 | ||||||||||||||||||||||||||||
Unsecured term facility entered into in May 2015 | Base rate | Minimum | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Interest rate margin | 0.60% | ||||||||||||||||||||||||||||
Unsecured term facility entered into in May 2015 | Base rate | Maximum | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Interest rate margin | 1.25% | ||||||||||||||||||||||||||||
Unsecured term facility entered into in May 2015 | LIBOR | Minimum | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Interest rate margin | 1.60% | ||||||||||||||||||||||||||||
Unsecured term facility entered into in May 2015 | LIBOR | Maximum | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Interest rate margin | 2.25% | ||||||||||||||||||||||||||||
Mortgages Payable | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Number of mortgage loan agreements | agreement | 6 | ||||||||||||||||||||||||||||
Amount of loan | $ 392,000,000 | ||||||||||||||||||||||||||||
Outstanding balance | 97,100,000 | 388,100,000 | 97,100,000 | 388,100,000 | |||||||||||||||||||||||||
Mortgage loans with a fixed interest rate of 4.14% per annum | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Outstanding balance | $ 97,100,000 | 342,100,000 | $ 97,100,000 | 342,100,000 | |||||||||||||||||||||||||
Revolving Credit Facility | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 250,000,000 | ||||||||||||||||||||||||||||
Effective interest rate | 3.29% | 3.29% | |||||||||||||||||||||||||||
Proceeds from issuance of debt | $ 170,000,000 | ||||||||||||||||||||||||||||
Number of extension options | extension_option | 1 | ||||||||||||||||||||||||||||
Extension term | 1 year | ||||||||||||||||||||||||||||
Revolving Credit Facility | Minimum | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Unused commitment fee | 0.15% | ||||||||||||||||||||||||||||
Revolving Credit Facility | Maximum | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Unused commitment fee | 0.25% | ||||||||||||||||||||||||||||
Revolving Credit Facility | Base rate | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Interest rate margin | 0.55% | ||||||||||||||||||||||||||||
Revolving Credit Facility | LIBOR | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Interest rate margin | 1.55% | ||||||||||||||||||||||||||||
Loan Backed Notes | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Issuance of notes | $ 38,200,000 | ||||||||||||||||||||||||||||
Weighted average life of notes | 2 years | ||||||||||||||||||||||||||||
Restricted cash | $ 3,306,000 | 3,174,000 | $ 3,306,000 | 3,174,000 | |||||||||||||||||||||||||
Outstanding balance | 22,282,000 | 33,769,000 | $ 22,282,000 | 33,769,000 | |||||||||||||||||||||||||
Loan Backed Notes | LIBOR | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Interest rate margin | 1.40% | 1.40% | |||||||||||||||||||||||||||
Loan Backed Notes | Prime Rate | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Interest rate margin | 1.08% | 1.08% | |||||||||||||||||||||||||||
7083 Hollywood Boulevard | Disposal Group, Held-for-sale, Not Discontinued Operations | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Write off of deferred loan costs | $ 259,000 | ||||||||||||||||||||||||||||
Write off of deferred debt issuance cost amortization | 32,000 | ||||||||||||||||||||||||||||
Mortgage assumed by buyer | 21,700,000 | ||||||||||||||||||||||||||||
Loss on early extinguishment of debt | 367,000 | ||||||||||||||||||||||||||||
Transaction costs | $ 140,000 | ||||||||||||||||||||||||||||
Number of mortgage loans assumed by buyer | mortgage_loan | 1 | ||||||||||||||||||||||||||||
Properties Used As Collateral For Loans | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Mortgage loans with a fixed interest rate of 4.14% per annum | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Write off of deferred loan costs | $ 637,000 | ||||||||||||||||||||||||||||
Write off of deferred debt issuance cost amortization | 170,000 | ||||||||||||||||||||||||||||
Loss on early extinguishment of debt | $ 19,290,000 | ||||||||||||||||||||||||||||
Transaction costs | 237,000 | ||||||||||||||||||||||||||||
Defeased amount | $ 39,500,000 | 205,500,000 | |||||||||||||||||||||||||||
Cash outlay required for defeasance | 224,086,000 | ||||||||||||||||||||||||||||
Office Property, San Fransisco California | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Write off of deferred loan costs | 243,000 | ||||||||||||||||||||||||||||
Write off of deferred debt issuance cost amortization | 65,000 | ||||||||||||||||||||||||||||
Mortgage assumed by buyer | $ 28,200,000 | ||||||||||||||||||||||||||||
Loss on early extinguishment of debt | 178,000 | ||||||||||||||||||||||||||||
Number of mortgage loans assumed by buyer | mortgage_loan | 1 | ||||||||||||||||||||||||||||
1333 Broadway, Oakland, CA | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Mortgage loans with a fixed interest rate of 4.14% per annum | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Write off of deferred loan costs | 287,000 | ||||||||||||||||||||||||||||
Write off of deferred debt issuance cost amortization | 82,000 | ||||||||||||||||||||||||||||
Loss on early extinguishment of debt | 4,911,000 | ||||||||||||||||||||||||||||
Transaction costs | 98,000 | ||||||||||||||||||||||||||||
Defeased amount | 39,500,000 | ||||||||||||||||||||||||||||
Cash outlay required for defeasance | $ 44,108,000 | ||||||||||||||||||||||||||||
Number of mortgage loans defeased | mortgage_loan | 1 | ||||||||||||||||||||||||||||
211 Main Street, San Francisco, CA (2) | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Write off of deferred loan costs | $ 165,000 | ||||||||||||||||||||||||||||
Write off of deferred debt issuance cost amortization | 139,000 | ||||||||||||||||||||||||||||
Loss on early extinguishment of debt | 1,534,000 | ||||||||||||||||||||||||||||
Payment of mortgages payable | 25,331,000 | ||||||||||||||||||||||||||||
Mortgage prepayment penalty | $ 1,508,000 | ||||||||||||||||||||||||||||
3636 McKinney Avenue and 3839 McKinney Avenue, Dallas, Texas | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Write off of deferred loan costs | $ 298,000 | ||||||||||||||||||||||||||||
Write off of deferred debt issuance cost amortization | 185,000 | ||||||||||||||||||||||||||||
Loss on early extinguishment of debt | 2,014,000 | ||||||||||||||||||||||||||||
Payment of mortgages payable | 15,448,000 | ||||||||||||||||||||||||||||
Mortgage prepayment penalty | $ 1,901,000 | ||||||||||||||||||||||||||||
4649 Cole Avenue, Dallas, TX (2) | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Write off of deferred loan costs | $ 304,000 | ||||||||||||||||||||||||||||
Write off of deferred debt issuance cost amortization | 191,000 | ||||||||||||||||||||||||||||
Loss on early extinguishment of debt | 2,925,000 | ||||||||||||||||||||||||||||
Payment of mortgages payable | 23,333,000 | ||||||||||||||||||||||||||||
Mortgage prepayment penalty | $ 2,812,000 | ||||||||||||||||||||||||||||
4200 Scotland Street, Houston, TX | Disposal Group, Held-for-sale, Not Discontinued Operations | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Write off of deferred loan costs | $ 264,000 | ||||||||||||||||||||||||||||
Write off of deferred debt issuance cost amortization | 172,000 | ||||||||||||||||||||||||||||
Mortgage assumed by buyer | $ 28,560,000 | ||||||||||||||||||||||||||||
Loss on early extinguishment of debt | $ 92,000 | ||||||||||||||||||||||||||||
Office Property, Washington, D.C | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Write off of deferred loan costs | 537,000 | ||||||||||||||||||||||||||||
Write off of deferred debt issuance cost amortization | 259,000 | ||||||||||||||||||||||||||||
Loss on early extinguishment of debt | 5,603,000 | ||||||||||||||||||||||||||||
Payment of mortgages payable | 46,000,000 | ||||||||||||||||||||||||||||
Mortgage prepayment penalty | $ 5,325,000 | ||||||||||||||||||||||||||||
Interest rate swaps | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Derivative, notional amount | $ 385,000,000 | ||||||||||||||||||||||||||||
Interest rate swaps | Cash flow hedges | Designated as hedging instrument | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Derivative, notional amount | $ 120,000,000 | $ 120,000,000 | |||||||||||||||||||||||||||
Interest rate swaps | Cash flow hedges | Designated as hedging instrument | Weighted Average | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
All-in rate percentage | 3.11% | 3.11% | |||||||||||||||||||||||||||
Revolving Credit Facility | Line of Credit | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Repayments of debt | $ 120,000,000 | $ 10,000,000 | $ 40,000,000 | ||||||||||||||||||||||||||
Outstanding balance | $ 153,000,000 | 130,000,000 | $ 153,000,000 | 130,000,000 | |||||||||||||||||||||||||
Amount available for future borrowings | $ 73,900,000 | $ 91,000,000 | $ 73,900,000 | $ 91,000,000 | |||||||||||||||||||||||||
Multifamily | |||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Number of multifamily properties sold | property | 2 |
DEBT - Schedule of Future Princ
DEBT - Schedule of Future Principal Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt | |
2020 | $ 4,543 |
2021 | 1,808 |
2022 | 154,873 |
2023 | 2,162 |
2024 | 1,568 |
Thereafter | 146,650 |
Total Debt | 311,604 |
Mortgages Payable | |
Debt | |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 97,100 |
Total Debt | 97,100 |
Secured Borrowings Principal | |
Debt | |
2020 | 1,893 |
2021 | 459 |
2022 | 482 |
2023 | 506 |
2024 | 532 |
Thereafter | 8,280 |
Total Debt | 12,152 |
Other | |
Debt | |
2020 | 2,650 |
2021 | 1,349 |
2022 | 154,391 |
2023 | 1,656 |
2024 | 1,036 |
Thereafter | 41,270 |
Total Debt | $ 202,352 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS - Narrative (Details) - Restricted share awards $ in Thousands | Mar. 06, 2015officershares | Jul. 31, 2019shares | May 31, 2019shares | May 31, 2018shares | Jun. 30, 2017shares | May 31, 2016shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares |
Share-based compensation plans | |||||||||
Granted (in shares) | shares | 3,880 | 3,378 | 3,195 | ||||||
Unrecognized compensation expense | $ | $ 75 | ||||||||
Fair value of shares vested | $ | 150 | $ 150 | $ 203 | ||||||
Directors Independent | |||||||||
Share-based compensation plans | |||||||||
Award granted to each independent members of the board of directors (in shares) | shares | 81 | 889 | 1,126 | 1,065 | 1,131 | ||||
Granted (in shares) | shares | 324 | 3,556 | 3,378 | 3,195 | 3,393 | ||||
Award vesting period | 1 year | ||||||||
Board of directors | |||||||||
Share-based compensation plans | |||||||||
Award vesting period | 1 year | 1 year | 1 year | ||||||
Stock-based compensation expense | $ | 194 | 162 | 153 | ||||||
Executive officers | |||||||||
Share-based compensation plans | |||||||||
Stock-based compensation expense | $ | $ 0 | $ 0 | $ 1 | ||||||
Number of executive officers | officer | 2 | ||||||||
Common stock issued (in shares) | shares | 666 | ||||||||
Share-based Compensation Award, Tranche One | Executive officers | |||||||||
Share-based compensation plans | |||||||||
Award vesting period | 2 years | ||||||||
Vesting rights | 33.00% | ||||||||
Share-based Compensation Award, Tranche Two | Executive officers | |||||||||
Share-based compensation plans | |||||||||
Award vesting period | 2 years | ||||||||
Vesting rights | 33.00% |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - Tables (Details) - Restricted share awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares Restricted Stock | |||
Balance, January 1 (in shares) | 3,378 | 3,195 | 3,615 |
Granted (in shares) | 3,880 | 3,378 | 3,195 |
Vested (in shares) | (3,378) | (3,195) | (3,615) |
Balance, December 1 (in shares) | 3,880 | 3,378 | 3,195 |
Weighted Average Grant Date Fair Value Per Share | |||
Balance, January 1 (in dollars per share) | $ 44.40 | $ 46.95 | $ 56.26 |
Granted (in dollars per share) | 56.66 | 44.40 | 46.95 |
Vested (in dollars per share) | 44.40 | 46.95 | 56.26 |
Balance, December 31 (in dollars per share) | $ 56.66 | $ 44.40 | $ 46.95 |
EARNINGS PER SHARE (''EPS'') (D
EARNINGS PER SHARE (''EPS'') (Details) - shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Earnings Per Share [Abstract] | ||||
Weighted average shares outstanding (in shares) | [1] | 14,598 | 14,597 | 23,021 |
Increase in weighted average shares outstanding to reflect the dilutive effect of share options (in shares) | 1,895 | 0 | 2 | |
[1] | All share and per share amounts have been adjusted to give retroactive effect to the one-for-three reverse stock split of our common stock effected on September 3, 2019. |
EARNINGS PER SHARE ("EPS") - Co
EARNINGS PER SHARE ("EPS") - Computation of Basic and Diluted Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Numerator: | |||||||||||||||
Net income (loss) attributable to common stockholders | $ 322,696 | $ (14,298) | $ 377,813 | ||||||||||||
Redeemable preferred stock dividends declared on dilutive shares | 2,804 | 0 | 9 | ||||||||||||
Diluted net income (loss) attributable to common stockholders | $ 325,500 | $ (14,298) | $ 377,822 | ||||||||||||
Denominator: | |||||||||||||||
Basic weighted average shares of common stock outstanding (in shares) | [1] | 14,598 | 14,597 | 23,021 | |||||||||||
Effect of dilutive securities—contingently issuable shares (in shares) | 1,895 | 0 | 2 | ||||||||||||
Diluted weighted average shares and common stock equivalents outstanding (in shares) | 14,599 | 14,599 | 15,284 | 15,245 | 14,598 | 14,598 | 14,597 | 14,595 | 16,493 | [1] | 14,597 | [1] | 23,023 | [1] | |
Net income (loss) attributable to common stockholders per share: | |||||||||||||||
Basic (in usd per share) | [1] | $ 22.11 | $ (0.98) | $ 16.41 | |||||||||||
Diluted (in usd per share) | [1] | $ 19.74 | $ (0.98) | $ 16.41 | |||||||||||
[1] | All share and per share amounts have been adjusted to give retroactive effect to the one-for-three reverse stock split of our common stock effected on September 3, 2019. |
REDEEMABLE PREFERRED STOCK (Det
REDEEMABLE PREFERRED STOCK (Details) - USD ($) | Mar. 03, 2020 | Mar. 02, 2020 | Feb. 18, 2020 | Jan. 28, 2020 | Dec. 20, 2019 | Oct. 22, 2019 | Nov. 21, 2017 | Feb. 29, 2020 | Jan. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Nov. 20, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 15, 2020 | Jun. 15, 2020 | May 15, 2020 | Apr. 15, 2020 | Mar. 16, 2020 | Mar. 12, 2020 | Feb. 28, 2020 |
Class of Stock [Line Items] | ||||||||||||||||||||||||
Deferred offering costs | $ 5,275,000 | $ 5,275,000 | $ 4,213,000 | |||||||||||||||||||||
Offering costs allocated to temporary equity | $ 64,953,000 | |||||||||||||||||||||||
Outstanding common stock available for purchase (in shares) | 1,164,432 | 1,164,432 | ||||||||||||||||||||||
Redeemable preferred stock redemptions | $ 5,874,000 | $ 0 | $ 4,000 | $ 4,000 | $ 5,882,000 | |||||||||||||||||||
Initial dividend on common stock | $ 4,380,644.70 | |||||||||||||||||||||||
Series A Preferred Stock | ||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||||||||||
Preferred stock stated value (in usd per share) | $ 25 | $ 25 | $ 25 | |||||||||||||||||||||
Preferred stock redemption, trading days prior to redemption | 20 days | |||||||||||||||||||||||
Proceeds from issuance of preferred stock | $ 111,377,000 | |||||||||||||||||||||||
Offering costs | 8,697,000 | |||||||||||||||||||||||
Deferred offering costs | $ 5,980,000 | 5,980,000 | ||||||||||||||||||||||
Offering costs allocated to temporary equity | $ 701,000 | |||||||||||||||||||||||
Preferred stock, including temporary equity, shares outstanding (in shares) | 4,468,315 | 4,468,315 | ||||||||||||||||||||||
Preferred stock, shares outstanding (in shares) | 1,630,421 | 1,630,421 | 1,565,346 | |||||||||||||||||||||
Preferred stock, shares redeemed (in shares) | 16,061 | |||||||||||||||||||||||
Cumulative dividend rate | 5.50% | |||||||||||||||||||||||
Preferred stock, dividend rate (in usd per share) | $ 0.34375 | |||||||||||||||||||||||
Preferred dividends, per share amount (in usd per share) | $ 1.375 | $ 1.375 | $ 1.375 | |||||||||||||||||||||
Preferred stock, shares issued (in shares) | 1,630,821 | 1,630,821 | 1,566,386 | |||||||||||||||||||||
Series A Preferred Stock | Scenario, Forecast | ||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||
Dividends to be paid per share (in usd per share) | $ 0.114583 | $ 0.114583 | $ 0.114583 | $ 0.114583 | $ 0.114583 | |||||||||||||||||||
Series A Preferred Stock | Subsequent event | ||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||
Preferred stock, shares redeemed (in shares) | 800 | |||||||||||||||||||||||
Preferred stock, dividends per share, declared (in usd per share) | $ 0.34375 | $ 0.34375 | ||||||||||||||||||||||
Preferred dividends, per share amount (in usd per share) | $ 0.114583 | |||||||||||||||||||||||
Series A Preferred Unit | ||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||
Preferred stock, shares issued (in shares) | 4,484,376 | 4,484,376 | ||||||||||||||||||||||
Proceeds from issuance of preferred stock | $ 112,106,000 | |||||||||||||||||||||||
Offering costs | 8,836,000 | |||||||||||||||||||||||
Warrant | ||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||
Proceeds from issuance of preferred stock | 729,000 | |||||||||||||||||||||||
Offering costs | 139,000 | |||||||||||||||||||||||
Offering costs allocated to temporary equity | $ 4,000 | |||||||||||||||||||||||
Preferred stock, shares outstanding (in shares) | 4,484,376 | 4,484,376 | ||||||||||||||||||||||
Series D Preferred Stock | Scenario, Forecast | ||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||
Dividends to be paid per share (in usd per share) | $ 0.117708 | $ 0.117708 | $ 0.117708 | $ 0.117708 | $ 0.117708 | |||||||||||||||||||
Series D Preferred Stock | Subsequent event | ||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||
Preferred stock, par value (in usd per share) | $ 25 | |||||||||||||||||||||||
Preferred stock redemption, trading days prior to redemption | 20 days | |||||||||||||||||||||||
Preferred stock, shares outstanding (in shares) | 5,600 | |||||||||||||||||||||||
Cumulative dividend rate | 5.65% | |||||||||||||||||||||||
Preferred stock, dividend rate (in usd per share) | $ 0.35313 | |||||||||||||||||||||||
Series L Preferred Stock | ||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||||||||||
Preferred stock stated value (in usd per share) | $ 28.37 | $ 28.37 | $ 23.87 | |||||||||||||||||||||
Proceeds from issuance of preferred stock | $ 229,251,000 | |||||||||||||||||||||||
Preferred stock, shares outstanding (in shares) | 5,387,160 | 5,387,160 | 8,080,740 | |||||||||||||||||||||
Cumulative dividend rate | 5.50% | |||||||||||||||||||||||
Preferred stock, dividend rate (in usd per share) | $ 1.56035 | |||||||||||||||||||||||
Preferred dividends, per share amount (in usd per share) | $ 1.560 | $ 1.738 | ||||||||||||||||||||||
Preferred stock, shares issued (in shares) | 8,080,740 | 8,080,740 | 8,080,740 | 8,080,740 | ||||||||||||||||||||
Offering costs | $ 15,928,000 | |||||||||||||||||||||||
Discount on shares issued | 2,946,000 | |||||||||||||||||||||||
Offering costs, non-issuance specific | $ 2,532,000 | |||||||||||||||||||||||
Dividend increase per year for failure to timely declare or pay dividends | 1.00% | |||||||||||||||||||||||
Dividend increase per year for failure to timely declare or pay dividends, maximum increase | 8.50% | |||||||||||||||||||||||
Minimum fixed charge coverage ratio | 125.00% | |||||||||||||||||||||||
Registration statement | ||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||
Warrant right to purchase a share of common stock (in shares) | 0.25 | 0.25 | ||||||||||||||||||||||
Registration statement | Series L Preferred Stock | ||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||
Preferred stock stated value (in usd per share) | $ 28.37 | |||||||||||||||||||||||
Tender Offer | Series L Preferred Stock | ||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||
Preferred stock, dividends per share, declared (in usd per share) | $ 1.39 | |||||||||||||||||||||||
Authorized shares for repurchase (in shares) | 2,693,580 | |||||||||||||||||||||||
Authorized shares for repurchase, percentage of share outstanding | 33.00% | |||||||||||||||||||||||
Purchase price (in usd per share) | $ 29.12 | |||||||||||||||||||||||
Dividends, preferred stock, aggregate value | $ 3,744,000 | |||||||||||||||||||||||
Professional fees | $ 462,000 | |||||||||||||||||||||||
Cost to repurchase tendered shares | $ 75,155,000 | |||||||||||||||||||||||
Redeemable preferred stock redemptions | $ 5,873,000 | |||||||||||||||||||||||
Dividends Declared, Tier One | Series D Preferred Stock | Subsequent event | ||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||
Preferred stock, dividends per share, declared, coverage period | 2 months | |||||||||||||||||||||||
Preferred stock, dividends per share, declared (in usd per share) | $ 0.23542 | |||||||||||||||||||||||
Dividends Declared, Tier Two | Series D Preferred Stock | Subsequent event | ||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||
Preferred stock, dividends per share, declared, coverage period | 3 months | |||||||||||||||||||||||
Preferred stock, dividends per share, declared (in usd per share) | $ 0.35313 |
REDEEMABLE PREFERRED STOCK - Di
REDEEMABLE PREFERRED STOCK - Dividends (Details) - USD ($) $ in Thousands | Dec. 03, 2019 | Aug. 08, 2019 | Jun. 04, 2019 | Feb. 20, 2019 | Dec. 04, 2018 | Aug. 22, 2018 | Jun. 04, 2018 | Mar. 06, 2018 | Dec. 31, 2017 | Nov. 20, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||||||||||||
Cash Dividends | $ 490 | ||||||||||||
Series A Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of Shares (in shares) | 4,468,315 | 4,091,980 | 3,601,721 | 3,149,924 | 2,847,150 | 2,457,119 | 2,149,863 | 1,674,841 | |||||
Cash Dividends | $ 1,467 | $ 1,318 | $ 1,150 | $ 1,010 | $ 890 | $ 769 | $ 662 | $ 493 | $ 4,945 | $ 2,814 | |||
Series L Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of Shares (in shares) | 5,387,160 | 8,080,740 | |||||||||||
Cash Dividends | $ 8,406 | $ 14,045 | $ 12,150 | $ 14,045 | |||||||||
Redeemable preferred stock prorated cash dividend | $ 1,436 | ||||||||||||
Redeemable preferred stock dividends accumulated | $ 1,436 | ||||||||||||
Tender Offer | Series L Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Dividends, preferred stock, aggregate value | $ 3,744 | ||||||||||||
Authorized shares for repurchase (in shares) | 2,693,580 |
STOCKHOLDERS' EQUITY - Dividend
STOCKHOLDERS' EQUITY - Dividends (Details) | Mar. 02, 2020$ / shares | Dec. 03, 2019$ / shares | Aug. 30, 2019USD ($)$ / shares | Aug. 08, 2019$ / shares | Jun. 04, 2019$ / shares | Feb. 20, 2019$ / shares | Dec. 04, 2018$ / shares | Aug. 22, 2018$ / shares | Jun. 04, 2018$ / shares | Mar. 06, 2018$ / shares | Dec. 18, 2017USD ($)$ / shares | Jun. 27, 2017USD ($) | Jun. 12, 2017$ / shares | Apr. 24, 2017USD ($) | Apr. 05, 2017$ / shares | Dec. 31, 2019USD ($)property$ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares |
Dividend declared | ||||||||||||||||||
Payment of special cash dividends | $ | $ 613,294,000 | $ 1,575,000 | $ 4,872,000 | |||||||||||||||
Dividends paid per common share (in usd per share) | $ 0.900 | $ 1.500 | $ 1.782 | |||||||||||||||
Subsequent event | ||||||||||||||||||
Dividend declared | ||||||||||||||||||
Dividends declared, common (in usd per share) | $ 0.075 | |||||||||||||||||
Special Cash | ||||||||||||||||||
Dividend declared | ||||||||||||||||||
Dividends paid per common share (in usd per share) | $ 42 | $ 8.970 | ||||||||||||||||
Common Stock, Excluding Private Repurchase Participants | ||||||||||||||||||
Dividend declared | ||||||||||||||||||
Dividends declared, common (in usd per share) | $ 2.19 | $ 5.94 | $ 0.84 | |||||||||||||||
Dividends declared, prior to reverse stock split (in usd per share) | $ 0.73 | $ 1.98 | $ 0.28 | |||||||||||||||
Payment of special cash dividends | $ | $ 1,575,000 | $ 4,271,000 | $ 601,000 | |||||||||||||||
Common Stock | ||||||||||||||||||
Dividend declared | ||||||||||||||||||
Dividends declared, common (in usd per share) | $ 0.075 | $ 0.075 | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.375 | ||||||||||
Common Stock | Special Cash | ||||||||||||||||||
Dividend declared | ||||||||||||||||||
Dividends declared, common (in usd per share) | $ 14 | $ 42 | ||||||||||||||||
Payment of special cash dividends | $ | $ 613,294,000 | |||||||||||||||||
Dividends paid per common share (in usd per share) | $ 42 | |||||||||||||||||
Ten Real Estate Properties Sold In 2019 | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||||||||||
Dividend declared | ||||||||||||||||||
Number of real estate properties sold | property | 10 |
STOCKHOLDERS' EQUITY - Share Re
STOCKHOLDERS' EQUITY - Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 18, 2017 | Jun. 12, 2017 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||
Aggregate purchase price, repurchase of common stock | $ 886,010 | ||
Urban Partners II, LLC | June 2017 Share Repurchase | Common Stock | |||
Class of Stock [Line Items] | |||
Repurchase of common stock (in shares) | 8,727,272 | ||
Repurchase of common stock, prior to Reverse Stock Split (in shares) | 26,181,818 | ||
Aggregate purchase price, repurchase of common stock | $ 576,000 | ||
Share price of stock repurchased (in usd per share) | $ 66 | ||
Share price of stock repurchased, prior to reverse stock split (in usd per share) | $ 22 | ||
Urban Partners II, LLC | December 2017 Share Repurchase | Common Stock | |||
Class of Stock [Line Items] | |||
Repurchase of common stock (in shares) | 4,696,969 | ||
Repurchase of common stock, prior to Reverse Stock Split (in shares) | 14,090,909 | ||
Aggregate purchase price, repurchase of common stock | $ 310,000 | ||
Share price of stock repurchased (in usd per share) | $ 66 | ||
Share price of stock repurchased, prior to reverse stock split (in usd per share) | $ 22 |
STOCKHOLDERS' EQUITY - Warrants
STOCKHOLDERS' EQUITY - Warrants (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||
Net proceeds from issuance of Series A Preferred Warrants | $ 385 | $ 73 | $ 127 |
Registration statement | |||
Class of Stock [Line Items] | |||
Warrant right to purchase a share of common stock (in shares) | 0.25 | ||
Premium of the exercise price of the warrant as a percent to net asset value of common stock | 15.00% | ||
Series A Preferred Unit | |||
Class of Stock [Line Items] | |||
Preferred stock, shares issued (in shares) | 4,484,376 | ||
Net proceeds from issuance of Series A Preferred Warrants | $ 586 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) | Mar. 11, 2019USD ($)swap | Feb. 28, 2019USD ($) | Dec. 28, 2018USD ($)swap | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)swap | Aug. 13, 2015USD ($)swap |
Derivative [Line Items] | |||||||
Number of swaps terminated | swap | 2 | 1 | 7 | ||||
Proceeds from termination payments, net of fees | $ 1,302,000 | $ 684,000 | $ 973,000 | ||||
Notional amount of terminated swaps | 120,000,000 | 50,000,000 | 215,000,000 | ||||
Amounts reclassified to interest expense upon interest rate hedge termination | $ 1,806,000 | $ 1,552,000 | 0 | ||||
Write-off of terminated interest rate swaps | 1,580,000 | ||||||
Change in fair value of swaps | 209,000 | 1,728,000 | 0 | ||||
Increase in interest expense related to change in fair value of interest rate swaps | $ 1,728,000 | ||||||
Interest rate swaps | |||||||
Derivative [Line Items] | |||||||
Number of interest rate swaps | swap | 10 | ||||||
Derivative, notional amount | $ 385,000,000 | ||||||
Derivative, fair value | 1,421,000 | ||||||
Derivative, gain (loss) on derivative, net | $ (119,000) | ||||||
Unsecured term facility entered into in May 2015 | |||||||
Derivative [Line Items] | |||||||
Repayments of debt | $ 215,000,000 | ||||||
Revolving Credit Facility | Line of Credit | |||||||
Derivative [Line Items] | |||||||
Repayments of debt | $ 120,000,000 | $ 10,000,000 | $ 40,000,000 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - AOCI (Details) $ in Thousands | Mar. 11, 2019swap | Dec. 28, 2018swap | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)swap |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | $ 617,275 | $ 626,705 | $ 966,589 | ||
Other comprehensive income before reclassifications | 0 | 1,973 | 361 | ||
Amounts reclassified (to) from accumulated other comprehensive income (loss) | (1,806) | (1,798) | 1,779 | ||
Net current period other comprehensive income (loss) | (1,806) | 175 | 2,140 | ||
Ending balance | 278,195 | 617,275 | $ 626,705 | ||
Number of swaps terminated | swap | 2 | 1 | 7 | ||
AOCI Including Portion Attributable to Noncontrolling Interest | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 1,806 | 1,631 | $ (509) | ||
Ending balance | $ 0 | $ 1,806 | $ 1,631 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Interest rate swaps | Level 2 | Other assets | ||
Fair value of financial instruments | ||
Assets: | $ 0 | $ 1,630 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Unobservable Inputs (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)mortgage_loan | |
SBA 7(a) loans receivable, subject to loan-backed notes | Minimum | ||
Liabilities: | ||
Rate of prepayment | 13.41% | 9.59% |
SBA 7(a) loans receivable, subject to loan-backed notes | Maximum | ||
Liabilities: | ||
Rate of prepayment | 16.80% | 17.50% |
SBA 7(a) loans receivable, subject to secured borrowings | Minimum | ||
Liabilities: | ||
Rate of prepayment | 11.77% | 10.29% |
SBA 7(a) loans receivable, subject to secured borrowings | Maximum | ||
Liabilities: | ||
Rate of prepayment | 16.80% | 17.50% |
Loans receivable and commercial mortgage loans | Minimum | ||
Liabilities: | ||
Rate of prepayment | 9.85% | 4.91% |
Loans receivable and commercial mortgage loans | Maximum | ||
Liabilities: | ||
Rate of prepayment | 17.50% | 17.50% |
Carrying Amount | ||
Liabilities: | ||
Mortgages payable | $ 96,926 | $ 386,923 |
Junior subordinated notes | 25,299 | 25,215 |
Carrying Amount | SBA 7(a) loans receivable, subject to loan-backed notes | ||
Assets: | ||
Loans receivable | 27,595 | 37,031 |
Carrying Amount | SBA 7(a) loans receivable, subject to credit risk | ||
Assets: | ||
Loans receivable | 27,802 | 29,748 |
Carrying Amount | SBA 7(a) loans receivable, subject to secured borrowings | ||
Assets: | ||
Loans receivable | 12,682 | 16,469 |
Estimated Fair Value | Level 3 | ||
Liabilities: | ||
Mortgages payable | 99,764 | 377,364 |
Junior subordinated notes | 24,406 | 24,462 |
Estimated Fair Value | Level 3 | SBA 7(a) loans receivable, subject to loan-backed notes | ||
Assets: | ||
Loans receivable | 30,076 | 38,357 |
Estimated Fair Value | Level 3 | SBA 7(a) loans receivable, subject to credit risk | ||
Assets: | ||
Loans receivable | 29,794 | 30,630 |
Estimated Fair Value | Level 3 | SBA 7(a) loans receivable, subject to secured borrowings | ||
Assets: | ||
Loans receivable | $ 12,780 | $ 16,706 |
Measurement Input, Discount Rate | SBA 7(a) loans receivable, subject to loan-backed notes | Minimum | ||
Liabilities: | ||
Measurement input for loans receivable | 0.0525 | 0.0675 |
Measurement Input, Discount Rate | SBA 7(a) loans receivable, subject to loan-backed notes | Maximum | ||
Liabilities: | ||
Measurement input for loans receivable | 0.0725 | 0.0925 |
Measurement Input, Discount Rate | SBA 7(a) loans receivable, subject to secured borrowings | Minimum | ||
Liabilities: | ||
Measurement input for loans receivable | 0.0675 | 0.0875 |
Measurement Input, Discount Rate | SBA 7(a) loans receivable, subject to secured borrowings | Maximum | ||
Liabilities: | ||
Measurement input for loans receivable | 0.0750 | 0.0950 |
Measurement Input, Discount Rate | Loans receivable and commercial mortgage loans | Minimum | ||
Liabilities: | ||
Measurement input for loans receivable | 0.0525 | 0.0675 |
Measurement Input, Discount Rate | Loans receivable and commercial mortgage loans | Maximum | ||
Liabilities: | ||
Measurement input for loans receivable | 0.0775 | 0.0975 |
Measurement Input, Discount Rate | Mortgages Payable | ||
Liabilities: | ||
Measurement input for debt | 0.0367 | |
Measurement Input, Discount Rate | Mortgages Payable | Minimum | ||
Liabilities: | ||
Measurement input for debt | 0.0462 | |
Measurement Input, Discount Rate | Mortgages Payable | Maximum | ||
Liabilities: | ||
Measurement input for debt | 0.0464 | |
Measurement Input, Discount Rate | Junior subordinated notes | ||
Liabilities: | ||
Measurement input for debt | 0.0616 | 0.0705 |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Liabilities: | ||
Number of mortgage loans excluded | mortgage_loan | 1 | |
Debt classified as liabilities associated with assets held for sale | $ 28,018 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ / shares in Units, ft² in Thousands | Jan. 01, 2019sudsidiary | May 10, 2018 | Dec. 18, 2017USD ($)$ / sharesshares | Jun. 12, 2017USD ($)$ / sharesshares | Oct. 31, 2019$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 12, 2020 | Aug. 07, 2019ft² | May 15, 2019ft² | Oct. 01, 2015 | Mar. 11, 2014USD ($) |
Related-party transactions | |||||||||||||
Due to related parties | $ 9,431,000 | $ 10,951,000 | |||||||||||
Wholesaling agreement, percent of selling price fee per share | 2.75% | ||||||||||||
Payment of deferred preferred stock offering costs | 1,320,000 | 1,136,000 | $ 3,832,000 | ||||||||||
Aggregate purchase price, repurchase of common stock | 886,010,000 | ||||||||||||
C I M Urban REIT Management L P | Asset management fees | |||||||||||||
Related-party transactions | |||||||||||||
Fees | 12,019,000 | 17,880,000 | 22,229,000 | ||||||||||
Due to related parties | 2,356,000 | 4,540,000 | |||||||||||
C I M Urban REIT Management L P | Property management fees | |||||||||||||
Related-party transactions | |||||||||||||
Fees | $ 2,562,000 | 4,365,000 | 5,034,000 | ||||||||||
C I M Urban REIT Management L P | 0 - 500,000 | |||||||||||||
Related-party transactions | |||||||||||||
Quarterly fee percentage | 0.25% | ||||||||||||
C I M Urban REIT Management L P | 0 - 500,000 | Minimum | |||||||||||||
Related-party transactions | |||||||||||||
Daily average adjusted fair value of investments | $ 0 | ||||||||||||
C I M Urban REIT Management L P | 0 - 500,000 | Maximum | |||||||||||||
Related-party transactions | |||||||||||||
Daily average adjusted fair value of investments | $ 500,000,000 | ||||||||||||
C I M Urban REIT Management L P | 500,000 - 1,000,000 | |||||||||||||
Related-party transactions | |||||||||||||
Quarterly fee percentage | 0.2375% | ||||||||||||
C I M Urban REIT Management L P | 500,000 - 1,000,000 | Minimum | |||||||||||||
Related-party transactions | |||||||||||||
Daily average adjusted fair value of investments | $ 500,000,000 | ||||||||||||
C I M Urban REIT Management L P | 500,000 - 1,000,000 | Maximum | |||||||||||||
Related-party transactions | |||||||||||||
Daily average adjusted fair value of investments | $ 1,000,000,000 | ||||||||||||
C I M Urban REIT Management L P | 1,000,000 - 1,500,000 | |||||||||||||
Related-party transactions | |||||||||||||
Quarterly fee percentage | 0.225% | ||||||||||||
C I M Urban REIT Management L P | 1,000,000 - 1,500,000 | Minimum | |||||||||||||
Related-party transactions | |||||||||||||
Daily average adjusted fair value of investments | $ 1,000,000,000 | ||||||||||||
C I M Urban REIT Management L P | 1,000,000 - 1,500,000 | Maximum | |||||||||||||
Related-party transactions | |||||||||||||
Daily average adjusted fair value of investments | $ 1,500,000,000 | ||||||||||||
C I M Urban REIT Management L P | 1,500,000 - 4,000,000 | |||||||||||||
Related-party transactions | |||||||||||||
Quarterly fee percentage | 0.2125% | ||||||||||||
C I M Urban REIT Management L P | 1,500,000 - 4,000,000 | Minimum | |||||||||||||
Related-party transactions | |||||||||||||
Daily average adjusted fair value of investments | $ 1,500,000,000 | ||||||||||||
C I M Urban REIT Management L P | 1,500,000 - 4,000,000 | Maximum | |||||||||||||
Related-party transactions | |||||||||||||
Daily average adjusted fair value of investments | $ 4,000,000,000 | ||||||||||||
C I M Urban REIT Management L P | 4,000,000 - 20,000,000 | |||||||||||||
Related-party transactions | |||||||||||||
Quarterly fee percentage | 0.10% | ||||||||||||
C I M Urban REIT Management L P | 4,000,000 - 20,000,000 | Minimum | |||||||||||||
Related-party transactions | |||||||||||||
Daily average adjusted fair value of investments | $ 4,000,000,000 | ||||||||||||
C I M Urban REIT Management L P | 4,000,000 - 20,000,000 | Maximum | |||||||||||||
Related-party transactions | |||||||||||||
Daily average adjusted fair value of investments | 20,000,000,000 | ||||||||||||
C I M Management Entities | |||||||||||||
Related-party transactions | |||||||||||||
Due to related parties | 4,107,000 | 3,202,000 | |||||||||||
C I M Management Entities | Personnel | |||||||||||||
Related-party transactions | |||||||||||||
Fees | 5,852,000 | 6,065,000 | 8,465,000 | ||||||||||
C I M Management Entities | Lease commission fees | |||||||||||||
Related-party transactions | |||||||||||||
Fees | 658,000 | 1,548,000 | 982,000 | ||||||||||
C I M Management Entities | Construction management fees | |||||||||||||
Related-party transactions | |||||||||||||
Fees | 525,000 | 580,000 | 1,654,000 | ||||||||||
C I M Management Entities and Related Parties | |||||||||||||
Related-party transactions | |||||||||||||
Due from related parties | 97,000 | 315,000 | |||||||||||
C I M Service Provider LLC | Master services agreement | |||||||||||||
Related-party transactions | |||||||||||||
Due to related parties | 1,673,000 | 1,490,000 | |||||||||||
Fees payable per year under agreement | $ 1,000,000 | ||||||||||||
Compensation expensed for performing other services | 2,577,000 | 2,783,000 | 3,065,000 | ||||||||||
C I M Service Provider LLC | Base service fee | |||||||||||||
Related-party transactions | |||||||||||||
Fees | 1,102,000 | 1,079,000 | 1,060,000 | ||||||||||
C I M SBA Staffing LLC | Personnel | |||||||||||||
Related-party transactions | |||||||||||||
Due to related parties | 1,029,000 | 1,347,000 | |||||||||||
Fees for services deferred | 112,000 | 330,000 | 429,000 | ||||||||||
C I M SBA Staffing LLC | Expenses related to lending segment subject to reimbursement | |||||||||||||
Related-party transactions | |||||||||||||
Fees | 2,382,000 | 2,445,000 | 3,464,000 | ||||||||||
C I M SBA Staffing LLC | Expenses related to corporate services subject to reimbursement | |||||||||||||
Related-party transactions | |||||||||||||
Fees | 223,000 | 264,000 | 433,000 | ||||||||||
C I M Management Entities Affiiate | |||||||||||||
Related-party transactions | |||||||||||||
Lease renewal term | 5 years | ||||||||||||
Revenue from related parties | 112,000 | 108,000 | 108,000 | ||||||||||
CIM Group | Eleven year lease | |||||||||||||
Related-party transactions | |||||||||||||
Revenue from related parties | 932,000 | 0 | $ 0 | ||||||||||
Operating lease term | 11 years | ||||||||||||
Square Feet | ft² | 30 | 32 | |||||||||||
Administrator | |||||||||||||
Related-party transactions | |||||||||||||
Shares acquired (in shares) | shares | 2,468,390 | ||||||||||||
Percent of common stock outstanding | 16.90% | ||||||||||||
Per share amount (in usd per share) | $ / shares | $ 19.1685 | ||||||||||||
CCO Capital, LLC | Wholesaling agreement | |||||||||||||
Related-party transactions | |||||||||||||
Due to related parties | 169,000 | 138,000 | |||||||||||
Deferred costs | 621,000 | $ 200,000 | |||||||||||
Payment of deferred preferred stock offering costs | $ 700,000 | ||||||||||||
June 2017 Share Repurchase | Urban Partners II, LLC | Common Stock | |||||||||||||
Related-party transactions | |||||||||||||
Repurchase of common stock (in shares) | shares | 8,727,272 | ||||||||||||
Aggregate purchase price, repurchase of common stock | $ 576,000,000 | ||||||||||||
Share price of stock repurchased (in usd per share) | $ / shares | $ 66 | ||||||||||||
December 2017 Share Repurchase | Urban Partners II, LLC | Common Stock | |||||||||||||
Related-party transactions | |||||||||||||
Repurchase of common stock (in shares) | shares | 4,696,969 | ||||||||||||
Aggregate purchase price, repurchase of common stock | $ 310,000,000 | ||||||||||||
Share price of stock repurchased (in usd per share) | $ / shares | $ 66 | ||||||||||||
CIM Capital, LLC | |||||||||||||
Related-party transactions | |||||||||||||
Number of subsidiaries | sudsidiary | 4 | ||||||||||||
Subsequent event | CIM Group and CIM Commercial Trust Corporation Officers And Directors | |||||||||||||
Related-party transactions | |||||||||||||
Percent of common stock outstanding | 19.60% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2017USD ($) | Dec. 31, 2019USD ($)officer | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Commitments and contingencies | ||||
Outstanding loan commitments and approvals to fund loans | $ 9,696,000 | |||
Future obligations under leases to fund tenant improvements and in other future construction obligation | 7,747,000 | |||
Restricted cash | 12,146,000 | $ 22,512,000 | $ 27,008,000 | |
Operating lease, right-of-use asset | 106,000 | |||
Operating lease, liability | 106,000 | |||
Ground lease for one of the project | ||||
Commitments and contingencies | ||||
Rent expense | 0 | |||
Rent expense | 0 | 1,168,000 | ||
Office space in Dallas, Texas | ||||
Commitments and contingencies | ||||
Rent expense | 294,000 | |||
Rent expense | $ 253,000 | $ 228,000 | ||
Noncancelable minimum lease payments | $ 106,000 | |||
Pending litigation | City and County of San Francisco Real Property Transfer Tax Case | ||||
Commitments and contingencies | ||||
Penalties, interest, and legal fees paid | $ 11,845,000 | |||
Executive officers | Employment agreements | ||||
Commitments and contingencies | ||||
Multiplier to annual base salary paid in event of death | 2 | |||
Multiplier to annual base salary paid in event of disability | 1 | |||
Executive officers | 2015 Equity Incentive Plan | ||||
Commitments and contingencies | ||||
Number of officers covered under employment agreement | officer | 2 | |||
Restricted cash for tenant improvement allowance | ||||
Commitments and contingencies | ||||
Restricted cash | $ 2,814,000 |
FUTURE MINIMUM LEASE RENTALS (D
FUTURE MINIMUM LEASE RENTALS (Details) - Governmental Tenants $ in Thousands | Dec. 31, 2019USD ($) |
Future minimum lease rentals | |
2020 | $ 47,459 |
2021 | 41,978 |
2022 | 38,691 |
2023 | 35,201 |
2024 | 33,929 |
Thereafter | 50,809 |
Total | $ 248,067 |
CONCENTRATIONS (Details)
CONCENTRATIONS (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)propertystate | Dec. 31, 2018USD ($)property | Dec. 31, 2017property | |
Concentrations | |||
Number of states in which properties are owned | state | 2 | ||
Office properties | |||
Concentrations | |||
Number of real estate properties owned | 8 | 16 | 15 |
Hotel properties | |||
Concentrations | |||
Number of real estate properties owned | 1 | 1 | 1 |
Parking garages | |||
Concentrations | |||
Number of real estate properties owned | 1 | 2 | 2 |
Development site | |||
Concentrations | |||
Number of real estate properties owned | 1 | 2 | 2 |
Parking lot | |||
Concentrations | |||
Number of real estate properties owned | 1 | 1 | 1 |
Kaiser Foundation Health Plan, Inc. | |||
Concentrations | |||
Number of properties occupied | 2 | ||
Revenues | Tenant revenue concentrations | Kaiser Foundation Health Plan, Inc. | |||
Concentrations | |||
Concentration risk, percent | 17.30% | 12.90% | 10.80% |
Accounts receivable | $ | $ 23 | $ 331 | |
Revenues | Tenant revenue concentrations | Governmental Tenants | |||
Concentrations | |||
Concentration risk, percent | 17.10% | 24.60% | 29.40% |
Accounts receivable | $ | $ 282 | $ 2,899 | |
Revenues | Geographical concentrations | |||
Concentrations | |||
Concentration risk, percent | 100.00% | 100.00% | 100.00% |
Revenues | Geographical concentrations | California | |||
Concentrations | |||
Concentration risk, percent | 80.60% | 76.00% | 63.30% |
Revenues | Geographical concentrations | Texas | |||
Concentrations | |||
Concentration risk, percent | 5.50% | 3.30% | 6.90% |
Revenues | Geographical concentrations | Washington, D.C. | |||
Concentrations | |||
Concentration risk, percent | 13.90% | 20.70% | 25.10% |
Revenues | Geographical concentrations | North Carolina | |||
Concentrations | |||
Concentration risk, percent | 0.00% | 0.00% | 3.10% |
Revenues | Geographical concentrations | New York | |||
Concentrations | |||
Concentration risk, percent | 0.00% | 0.00% | 1.60% |
Real estate investments | Geographical concentrations | |||
Concentrations | |||
Concentration risk, percent | 100.00% | 100.00% | |
Real estate investments | Geographical concentrations | California | |||
Concentrations | |||
Concentration risk, percent | 94.40% | 70.60% | |
Real estate investments | Geographical concentrations | Texas | |||
Concentrations | |||
Concentration risk, percent | 5.60% | 2.20% | |
Real estate investments | Geographical concentrations | Washington, D.C. | |||
Concentrations | |||
Concentration risk, percent | 0.00% | 27.20% |
INCOME TAXES - Deferred Taxes (
INCOME TAXES - Deferred Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of the income tax computed at federal statutory rates to the income tax provision reported | |||
Income from continuing operations before income taxes for TRSs | $ 346,403,000 | $ 2,067,000 | $ 381,134,000 |
Income tax provision | 882,000 | 925,000 | 1,376,000 |
Deferred tax liabilities: | |||
Reserve for uncertain tax positions | 0 | 0 | |
TRS | |||
Reconciliation of the income tax computed at federal statutory rates to the income tax provision reported | |||
Income from continuing operations before income taxes for TRSs | 4,414,000 | 4,962,000 | 4,878,000 |
Expected federal income tax provision | 927,000 | 1,042,000 | 1,658,000 |
State income taxes | 21,000 | 35,000 | 27,000 |
Change in valuation allowance | 0 | 0 | (37,000) |
Other | (66,000) | (152,000) | (272,000) |
Income tax provision | 882,000 | 925,000 | $ 1,376,000 |
Deferred tax assets: | |||
Net operating losses | 39,000 | 37,000 | |
Secured borrowings—government guaranteed loans | 132,000 | 198,000 | |
Other | 166,000 | 185,000 | |
Total gross deferred tax assets | 337,000 | 420,000 | |
Valuation allowance | (38,000) | (38,000) | |
Deferred tax asset, net of valuation allowance | 299,000 | 382,000 | |
Deferred tax liabilities: | |||
Loans receivable | (210,000) | (255,000) | |
Deferred tax liabilities | (210,000) | (255,000) | |
Deferred tax asset, net | $ 89,000 | $ 127,000 |
SEGMENT DISCLOSURE (Details)
SEGMENT DISCLOSURE (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)property | Dec. 31, 2018USD ($)property | Dec. 31, 2017USD ($)property | |
Segment disclosure | |||||||||||
Number of types of commercial real estate properties | property | 2 | 2 | 3 | ||||||||
Revenues | $ 26,641 | $ 29,215 | $ 36,856 | $ 47,277 | $ 50,025 | $ 47,607 | $ 51,544 | $ 48,294 | $ 139,989 | $ 197,470 | $ 236,059 |
Revenues | 35,633 | 35,672 | 35,576 | ||||||||
Property and Lending expenses: | |||||||||||
Interest expense | 12,175 | 26,894 | 34,484 | ||||||||
General and administrative | 6,354 | 9,167 | 5,479 | ||||||||
EXPENSES | 226,690 | 195,403 | 263,023 | ||||||||
Reportable segments | |||||||||||
Property and Lending expenses: | |||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES | 67,251 | 109,457 | 128,452 | ||||||||
Reportable segments | Office | |||||||||||
Segment disclosure | |||||||||||
Revenues | 86,948 | 147,811 | 173,853 | ||||||||
Property and Lending expenses: | |||||||||||
Operating | 36,638 | 54,654 | 68,650 | ||||||||
General and administrative | 521 | 2,350 | 981 | ||||||||
EXPENSES | 37,159 | 57,004 | 69,631 | ||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES | 49,789 | 90,807 | 104,222 | ||||||||
Reportable segments | Hotel | |||||||||||
Segment disclosure | |||||||||||
Revenues | 38,748 | 38,789 | 38,585 | ||||||||
Property and Lending expenses: | |||||||||||
Operating | 26,290 | 25,263 | 25,059 | ||||||||
General and administrative | 134 | 32 | 77 | ||||||||
EXPENSES | 26,424 | 25,295 | 25,136 | ||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES | 12,324 | 13,494 | 13,449 | ||||||||
Reportable segments | Multifamily | |||||||||||
Segment disclosure | |||||||||||
Revenues | 0 | 0 | 13,400 | ||||||||
Property and Lending expenses: | |||||||||||
Operating | 0 | 0 | 7,559 | ||||||||
General and administrative | 0 | 0 | 393 | ||||||||
EXPENSES | 0 | 0 | 7,952 | ||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES | 0 | 0 | 5,448 | ||||||||
Reportable segments | Lending | |||||||||||
Segment disclosure | |||||||||||
Revenues | 10,964 | 10,870 | 10,221 | ||||||||
Property and Lending expenses: | |||||||||||
Interest expense | 1,814 | 1,412 | 414 | ||||||||
Fees to related party | 2,382 | 2,445 | 3,464 | ||||||||
General and administrative | 1,630 | 1,857 | 1,010 | ||||||||
EXPENSES | 5,826 | 5,714 | 4,888 | ||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES | $ 5,138 | $ 5,156 | $ 5,333 |
SEGMENT DISCLOSURE - Results of
SEGMENT DISCLOSURE - Results of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment disclosure | |||||||||||
Interest and other income | $ 16,025 | $ 14,703 | $ 24,949 | ||||||||
Asset management and other fees to related parties | (18,303) | (24,451) | (30,251) | ||||||||
Interest expense | (12,175) | (26,894) | (34,484) | ||||||||
General and administrative | (6,354) | (9,167) | (5,479) | ||||||||
Transaction costs | (574) | (938) | (11,862) | ||||||||
Depreciation and amortization | (27,374) | (53,228) | (58,364) | ||||||||
Loss on early extinguishment of debt | $ 0 | $ 0 | $ (4,911) | $ (25,071) | $ (808) | $ 0 | $ 0 | $ 0 | (29,982) | (808) | (8,215) |
Impairment of real estate | 0 | 0 | (2,800) | (66,200) | (69,000) | 0 | (13,100) | ||||
Gain on sale of real estate | 0 | 302 | 55,221 | 377,581 | 433,104 | 0 | 408,098 | ||||
Provision for income taxes | (882) | (925) | (1,376) | ||||||||
NET INCOME | (1,525) | 2,856 | 52,567 | 291,623 | (900) | (529) | 1,949 | 622 | 345,521 | 1,142 | 379,758 |
Net loss (income) attributable to noncontrolling interests | 152 | (21) | (21) | ||||||||
NET INCOME ATTRIBUTABLE TO THE COMPANY | $ (1,538) | $ 2,848 | $ 52,566 | $ 291,797 | $ (906) | $ (528) | $ 1,937 | $ 618 | 345,673 | 1,121 | 379,737 |
Reportable segments | |||||||||||
Segment disclosure | |||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES | 67,251 | 109,457 | 128,452 | ||||||||
Reconciliation | |||||||||||
Segment disclosure | |||||||||||
Interest and other income | 3,329 | 0 | 0 | ||||||||
Asset management and other fees to related parties | (15,921) | (22,006) | (26,787) | ||||||||
Interest expense | (10,361) | (25,482) | (34,070) | ||||||||
General and administrative | (4,069) | (4,928) | (3,018) | ||||||||
Transaction costs | (574) | (938) | (11,862) | ||||||||
Depreciation and amortization | (27,374) | (53,228) | (58,364) | ||||||||
Loss on early extinguishment of debt | (29,982) | (808) | (8,215) | ||||||||
Impairment of real estate | (69,000) | 0 | (13,100) | ||||||||
Gain on sale of real estate | 433,104 | 0 | 408,098 | ||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES | $ 346,403 | $ 2,067 | $ 381,134 |
SEGMENT DISCLOSURE - Capital Ex
SEGMENT DISCLOSURE - Capital Expenditures and Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment disclosure | |||
Total assets | $ 667,592 | $ 1,342,401 | |
Total capital expenditures | 18,388 | 14,906 | $ 26,078 |
Loan originations | 39,592 | 74,234 | 76,316 |
Total capital expenditures and loan originations | 57,980 | 89,140 | 102,394 |
Office | |||
Segment disclosure | |||
Total assets | 460,951 | 1,094,269 | |
Total capital expenditures | 16,006 | 12,669 | 24,907 |
Hotel | |||
Segment disclosure | |||
Total assets | 104,029 | 105,845 | |
Total capital expenditures | 2,382 | 2,237 | 478 |
Lending | |||
Segment disclosure | |||
Total assets | 82,140 | 97,465 | |
Multifamily | |||
Segment disclosure | |||
Total capital expenditures | 0 | 0 | $ 693 |
Non-segment | |||
Segment disclosure | |||
Total assets | $ 20,472 | $ 44,822 |
QUARTERLY FINANCIAL INFORMATI_3
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||||
Revenues | $ 26,641 | $ 29,215 | $ 36,856 | $ 47,277 | $ 50,025 | $ 47,607 | $ 51,544 | $ 48,294 | $ 139,989 | $ 197,470 | $ 236,059 | |||
Loss on early extinguishment of debt | 0 | 0 | 4,911 | 25,071 | 808 | 0 | 0 | 0 | 29,982 | 808 | 8,215 | |||
Impairment of real estate | 0 | 0 | 2,800 | 66,200 | 69,000 | 0 | 13,100 | |||||||
Gain on sale of real estate | 0 | 302 | 55,221 | 377,581 | 433,104 | 0 | 408,098 | |||||||
Net income (loss) | (1,525) | 2,856 | 52,567 | 291,623 | (900) | (529) | 1,949 | 622 | 345,521 | 1,142 | 379,758 | |||
Net income (loss) attributable to the Company | (1,538) | 2,848 | 52,566 | 291,797 | (906) | (528) | 1,937 | 618 | 345,673 | 1,121 | 379,737 | |||
Redeemable preferred stock dividends declared or accumulated | (4,161) | (4,470) | (4,302) | (4,162) | (4,043) | (3,921) | (3,814) | (3,645) | (17,095) | (15,423) | (1,926) | |||
Redeemable preferred stock redemptions (Note 10) | (5,874) | 0 | (4) | (4) | $ (5,882) | |||||||||
Redeemable preferred stock redemptions | 1 | 1 | 1 | 1 | $ 4 | $ 2 | ||||||||
Net income (loss) attributable to common stockholders | $ (11,573) | $ (1,622) | $ 48,260 | $ 287,631 | $ (4,948) | $ (4,448) | $ (1,876) | $ (3,026) | ||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS PER SHARE (1) (2): | ||||||||||||||
Continuing operations (in usd per share) | $ (0.79) | $ (0.11) | $ 3.31 | $ 19.70 | $ (0.34) | $ (0.30) | $ (0.13) | $ (0.21) | ||||||
Net income (in usd per share) | $ (0.79) | $ (0.11) | $ 3.20 | $ 18.90 | $ (0.34) | $ (0.30) | $ (0.13) | $ (0.21) | ||||||
Weighted average shares of common stock outstanding - basic (in shares) | 14,598 | 14,598 | 14,597 | 14,598 | 14,598 | 14,598 | 14,597 | 14,595 | ||||||
Weighted average shares of common stock outstanding - diluted (in shares) | 14,599 | 14,599 | 15,284 | 15,245 | 14,598 | 14,598 | 14,597 | 14,595 | 16,493 | [1] | 14,597 | [1] | 23,023 | [1] |
Previously reported | ||||||||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||||
Revenues | $ 50,127 | $ 47,640 | $ 51,559 | $ 48,398 | ||||||||||
Adjustment | ||||||||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||||
Revenues | $ (102) | $ (33) | $ (15) | $ (104) | ||||||||||
[1] | All share and per share amounts have been adjusted to give retroactive effect to the one-for-three reverse stock split of our common stock effected on September 3, 2019. |
SCHEDULE III - REAL ESTATE AN_2
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | $ 97,100,000 | |||
Initial Cost | ||||
Land | 134,421,000 | |||
Building and Improvements | 449,049,000 | |||
Net Improvements (Write-Offs) Since Acquisition | 45,792,000 | |||
Gross Amount at Which Carried | ||||
Land | 134,421,000 | |||
Building and Improvements | 494,841,000 | |||
Investments in real estate | 629,262,000 | $ 1,344,636,000 | ||
Accumulated Depreciation | 120,555,000 | 303,699,000 | $ 271,055,000 | $ 414,552,000 |
Other disclosures | ||||
Federal tax cost basis (unaudited) | 661,503,000 | |||
Office | 3601 S Congress Avenue Austin, TX | ||||
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 9,569,000 | |||
Building and Improvements | 18,593,000 | |||
Net Improvements (Write-Offs) Since Acquisition | 9,833,000 | |||
Gross Amount at Which Carried | ||||
Land | 9,569,000 | |||
Building and Improvements | 28,426,000 | |||
Investments in real estate | 37,995,000 | |||
Accumulated Depreciation | 9,041,000 | |||
Office | 1 Kaiser Plaza Oakland, CA | ||||
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 97,100,000 | |||
Initial Cost | ||||
Land | 9,261,000 | |||
Building and Improvements | 113,619,000 | |||
Net Improvements (Write-Offs) Since Acquisition | 19,802,000 | |||
Gross Amount at Which Carried | ||||
Land | 9,261,000 | |||
Building and Improvements | 133,421,000 | |||
Investments in real estate | 142,682,000 | |||
Accumulated Depreciation | 44,659,000 | |||
Office | 2 Kaiser Plaza Parking Lot Oakland, CA | ||||
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 10,931,000 | |||
Building and Improvements | 110,000 | |||
Net Improvements (Write-Offs) Since Acquisition | 1,735,000 | |||
Gross Amount at Which Carried | ||||
Land | 10,931,000 | |||
Building and Improvements | 1,845,000 | |||
Investments in real estate | 12,776,000 | |||
Accumulated Depreciation | 117,000 | |||
Office | 11600 Wilshire Blvd Los Angeles, CA | ||||
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 3,477,000 | |||
Building and Improvements | 18,522,000 | |||
Net Improvements (Write-Offs) Since Acquisition | 2,304,000 | |||
Gross Amount at Which Carried | ||||
Land | 3,477,000 | |||
Building and Improvements | 20,826,000 | |||
Investments in real estate | 24,303,000 | |||
Accumulated Depreciation | 5,672,000 | |||
Office | 11620 Wilshire Blvd Los Angeles, CA | ||||
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 7,672,000 | |||
Building and Improvements | 51,999,000 | |||
Net Improvements (Write-Offs) Since Acquisition | 7,242,000 | |||
Gross Amount at Which Carried | ||||
Land | 7,672,000 | |||
Building and Improvements | 59,241,000 | |||
Investments in real estate | 66,913,000 | |||
Accumulated Depreciation | 15,731,000 | |||
Office | 4750 Wilshire Blvd Los Angeles, CA | ||||
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 16,633,000 | |||
Building and Improvements | 28,985,000 | |||
Net Improvements (Write-Offs) Since Acquisition | 3,897,000 | |||
Gross Amount at Which Carried | ||||
Land | 16,633,000 | |||
Building and Improvements | 32,882,000 | |||
Investments in real estate | 49,515,000 | |||
Accumulated Depreciation | 4,170,000 | |||
Office | Lindblade Media Center Los Angeles, CA | ||||
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 6,342,000 | |||
Building and Improvements | 11,568,000 | |||
Net Improvements (Write-Offs) Since Acquisition | 24,000 | |||
Gross Amount at Which Carried | ||||
Land | 6,342,000 | |||
Building and Improvements | 11,592,000 | |||
Investments in real estate | 17,934,000 | |||
Accumulated Depreciation | 1,480,000 | |||
Office | 1130 Howard Street San Francisco, CA | ||||
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 8,290,000 | |||
Building and Improvements | 10,480,000 | |||
Net Improvements (Write-Offs) Since Acquisition | 5,000 | |||
Gross Amount at Which Carried | ||||
Land | 8,290,000 | |||
Building and Improvements | 10,485,000 | |||
Investments in real estate | 18,775,000 | |||
Accumulated Depreciation | 638,000 | |||
Office | 9460 Wilshire Boulevard Los Angeles, CA | ||||
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 52,199,000 | |||
Building and Improvements | 76,730,000 | |||
Net Improvements (Write-Offs) Since Acquisition | 620,000 | |||
Gross Amount at Which Carried | ||||
Land | 52,199,000 | |||
Building and Improvements | 77,350,000 | |||
Investments in real estate | 129,549,000 | |||
Accumulated Depreciation | 4,644,000 | |||
Hotel | Sheraton Grand Hotel Sacramento, CA | ||||
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 3,497,000 | |||
Building and Improvements | 107,447,000 | |||
Net Improvements (Write-Offs) Since Acquisition | 122,000 | |||
Gross Amount at Which Carried | ||||
Land | 3,497,000 | |||
Building and Improvements | 107,569,000 | |||
Investments in real estate | 111,066,000 | |||
Accumulated Depreciation | 31,158,000 | |||
Hotel | Sheraton Grand Hotel Parking & Retail Sacramento, CA | ||||
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 6,550,000 | |||
Building and Improvements | 10,996,000 | |||
Net Improvements (Write-Offs) Since Acquisition | 208,000 | |||
Gross Amount at Which Carried | ||||
Land | 6,550,000 | |||
Building and Improvements | 11,204,000 | |||
Investments in real estate | 17,754,000 | |||
Accumulated Depreciation | 3,245,000 | |||
Line of Credit | Revolving Credit Facility | ||||
Other disclosures | ||||
Outstanding balance | $ 153,000,000 | $ 130,000,000 |
SCHEDULE III - REAL ESTATE AN_3
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION - Property Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments in Real Estate | |||
Balance, beginning of period | $ 1,344,636 | $ 1,228,780 | $ 2,021,494 |
Additions: | |||
Improvements | 18,388 | 14,906 | 26,078 |
Property acquisitions | 0 | 128,928 | 18,770 |
Deductions: | |||
Assets held for sale | 0 | (24,832) | 0 |
Asset sales | (659,849) | 0 | (815,357) |
Impairment | (69,000) | 0 | (13,100) |
Retirements | (4,913) | (3,146) | (9,105) |
Balance, end of period | 629,262 | 1,344,636 | 1,228,780 |
Accumulated Depreciation | |||
Balance, beginning of period | (303,699) | (271,055) | (414,552) |
Additions: depreciation | (22,209) | (43,499) | (49,427) |
Assets held for sale | 0 | 7,709 | 0 |
Asset sales | 200,440 | 0 | 183,819 |
Retirements | 4,913 | 3,146 | 9,105 |
Balance, end of period | $ (120,555) | $ (303,699) | $ (271,055) |
SCHEDULE IV - MORTGAGE LOANS _2
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)itemloan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Carrying amount of mortgages | $ 68,079 | $ 83,248 | $ 81,056 | $ 75,740 |
SBA 7(a) Loans | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Number of loans | loan | 175 | |||
Carrying amount of mortgages | $ 68,079 | |||
Principal amount of loans subject to deliquent principal or interest | 364 | |||
Loans not secured by real estate | 242 | |||
Federal income tax cost basis of mortgage loans (unaudited) | 54,925 | |||
SBA 7(a) Loans | Government guaranteed portions | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Carrying amount of mortgages | 1,601 | |||
Principal amount of loans subject to deliquent principal or interest | 0 | |||
SBA 7(a) Loans | SBA 7(a) loans receivable, subject to secured borrowings | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Carrying amount of mortgages | 12,152 | |||
Principal amount of loans subject to deliquent principal or interest | 0 | |||
SBA 7(a) Loans | General reserves | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Principal amount of loans subject to deliquent principal or interest | 0 | |||
Reserves | $ 450 | |||
SBA 7(a) Loans | Indiana | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Number of loans | loan | 17 | |||
Carrying amount of mortgages | $ 8,620 | |||
Principal amount of loans subject to deliquent principal or interest | 0 | |||
SBA 7(a) Loans | Indiana | Minimum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 110 | |||
Interest Rate | 6.50% | |||
SBA 7(a) Loans | Indiana | Maximum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 1,000 | |||
Interest Rate | 7.75% | |||
SBA 7(a) Loans | Texas | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Number of loans | loan | 25 | |||
Size of loans | $ 0 | |||
Carrying amount of mortgages | 8,086 | |||
Principal amount of loans subject to deliquent principal or interest | $ 0 | |||
SBA 7(a) Loans | Texas | Minimum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Interest Rate | 5.88% | |||
SBA 7(a) Loans | Texas | Maximum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 1,020 | |||
Interest Rate | 7.75% | |||
SBA 7(a) Loans | Ohio | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Number of loans | loan | 24 | |||
Carrying amount of mortgages | $ 7,000 | |||
Principal amount of loans subject to deliquent principal or interest | 0 | |||
SBA 7(a) Loans | Ohio | Minimum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 0 | |||
Interest Rate | 6.75% | |||
SBA 7(a) Loans | Ohio | Maximum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 800 | |||
Interest Rate | 7.75% | |||
SBA 7(a) Loans | Michigan | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Number of loans | loan | 17 | |||
Carrying amount of mortgages | $ 5,138 | |||
Principal amount of loans subject to deliquent principal or interest | 0 | |||
SBA 7(a) Loans | Michigan | Minimum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 10 | |||
Interest Rate | 6.25% | |||
SBA 7(a) Loans | Michigan | Maximum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 1,000 | |||
Interest Rate | 7.75% | |||
SBA 7(a) Loans | Florida | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Number of loans | loan | 10 | |||
Carrying amount of mortgages | $ 4,007 | |||
Principal amount of loans subject to deliquent principal or interest | 0 | |||
SBA 7(a) Loans | Florida | Minimum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 80 | |||
Interest Rate | 6.75% | |||
SBA 7(a) Loans | Florida | Maximum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 1,110 | |||
Interest Rate | 7.75% | |||
SBA 7(a) Loans | Pennsylvania | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Number of loans | loan | 5 | |||
Carrying amount of mortgages | $ 2,388 | |||
Principal amount of loans subject to deliquent principal or interest | 284 | |||
SBA 7(a) Loans | Pennsylvania | Minimum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 170 | |||
Interest Rate | 6.75% | |||
SBA 7(a) Loans | Pennsylvania | Maximum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 760 | |||
Interest Rate | 7.75% | |||
SBA 7(a) Loans | Illinois | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Number of loans | loan | 7 | |||
Carrying amount of mortgages | $ 1,779 | |||
Principal amount of loans subject to deliquent principal or interest | 0 | |||
SBA 7(a) Loans | Illinois | Minimum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 50 | |||
Interest Rate | 6.75% | |||
SBA 7(a) Loans | Illinois | Maximum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 550 | |||
Interest Rate | 7.75% | |||
SBA 7(a) Loans | Louisiana | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Number of loans | loan | 4 | |||
Carrying amount of mortgages | $ 1,551 | |||
Principal amount of loans subject to deliquent principal or interest | 0 | |||
SBA 7(a) Loans | Louisiana | Minimum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 110 | |||
Interest Rate | 6.75% | |||
SBA 7(a) Loans | Louisiana | Maximum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 610 | |||
Interest Rate | 7.75% | |||
SBA 7(a) Loans | South Carolina | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Number of loans | loan | 4 | |||
Carrying amount of mortgages | $ 1,358 | |||
Principal amount of loans subject to deliquent principal or interest | 0 | |||
SBA 7(a) Loans | South Carolina | Minimum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 280 | |||
Interest Rate | 6.75% | |||
SBA 7(a) Loans | South Carolina | Maximum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 400 | |||
Interest Rate | 7.75% | |||
SBA 7(a) Loans | Wisconsin | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Number of loans | loan | 7 | |||
Carrying amount of mortgages | $ 1,355 | |||
Principal amount of loans subject to deliquent principal or interest | 80 | |||
SBA 7(a) Loans | Wisconsin | Minimum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 0 | |||
Interest Rate | 6.75% | |||
SBA 7(a) Loans | Wisconsin | Maximum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 530 | |||
Interest Rate | 8.25% | |||
SBA 7(a) Loans | North Carolina | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Number of loans | loan | 4 | |||
Carrying amount of mortgages | $ 1,319 | |||
Principal amount of loans subject to deliquent principal or interest | 0 | |||
SBA 7(a) Loans | North Carolina | Minimum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 70 | |||
Interest Rate | 6.75% | |||
SBA 7(a) Loans | North Carolina | Maximum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 630 | |||
Interest Rate | 7.75% | |||
SBA 7(a) Loans | Colorado | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Number of loans | loan | 4 | |||
Carrying amount of mortgages | $ 1,309 | |||
Principal amount of loans subject to deliquent principal or interest | 0 | |||
SBA 7(a) Loans | Colorado | Minimum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 60 | |||
Interest Rate | 6.50% | |||
SBA 7(a) Loans | Colorado | Maximum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 540 | |||
Interest Rate | 7.75% | |||
SBA 7(a) Loans | Virginia | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Number of loans | loan | 4 | |||
Carrying amount of mortgages | $ 1,283 | |||
Principal amount of loans subject to deliquent principal or interest | 0 | |||
SBA 7(a) Loans | Virginia | Minimum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 240 | |||
Interest Rate | 7.00% | |||
SBA 7(a) Loans | Virginia | Maximum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 470 | |||
Interest Rate | 7.75% | |||
SBA 7(a) Loans | Mississippi | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Number of loans | item | 4 | |||
Carrying amount of mortgages | $ 1,206 | |||
Principal amount of loans subject to deliquent principal or interest | 0 | |||
SBA 7(a) Loans | Mississippi | Minimum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 150 | |||
Interest Rate | 7.00% | |||
SBA 7(a) Loans | Mississippi | Maximum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 520 | |||
Interest Rate | 7.75% | |||
SBA 7(a) Loans | Alabama | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Number of loans | item | 5 | |||
Carrying amount of mortgages | $ 1,130 | |||
Principal amount of loans subject to deliquent principal or interest | 0 | |||
SBA 7(a) Loans | Alabama | Minimum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 30 | |||
Interest Rate | 6.75% | |||
SBA 7(a) Loans | Alabama | Maximum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 490 | |||
Interest Rate | 7.75% | |||
SBA 7(a) Loans | Kentucky | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Number of loans | item | 5 | |||
Carrying amount of mortgages | $ 1,099 | |||
Principal amount of loans subject to deliquent principal or interest | 0 | |||
SBA 7(a) Loans | Kentucky | Minimum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 100 | |||
Interest Rate | 7.00% | |||
SBA 7(a) Loans | Kentucky | Maximum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 430 | |||
Interest Rate | 7.75% | |||
SBA 7(a) Loans | Other | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Number of loans | loan | 29 | |||
Carrying amount of mortgages | $ 6,148 | |||
Principal amount of loans subject to deliquent principal or interest | 0 | |||
SBA 7(a) Loans | Other | Minimum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 10 | |||
Interest Rate | 6.25% | |||
SBA 7(a) Loans | Other | Maximum | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 550 | |||
Interest Rate | 7.75% | |||
Mortgage Loans - $284,000 | SBA 7(a) Loans | Pennsylvania | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 284 | |||
Interest Rate | 7.75% | |||
Reserves | $ 116 | |||
Mortgage Loans - $80,000 | SBA 7(a) Loans | Wisconsin | ||||
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | ||||
Size of loans | $ 80 | |||
Interest Rate | 8.25% | |||
Reserves | $ 32 |
SCHEDULE IV - MORTGAGE LOANS _3
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE - Mortgage Loan Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Mortgage Loans on Real Estate | |||
Balance, beginning of period | $ 83,248 | $ 81,056 | $ 75,740 |
Additions during period: | |||
New loans | 39,592 | 74,234 | 76,316 |
Other - deferral for collection of commitment fees, net of costs | 802 | 1,587 | 1,706 |
Other - deferral for collection of commitment fees, net of costs | 1,303 | 1,026 | 676 |
Deductions during period: | |||
Collections of principal | (13,886) | (16,468) | (17,557) |
Foreclosures | (241) | 0 | (127) |
Cost of mortgages sold, net | (42,663) | (57,947) | (54,973) |
Other - reclassification from secured borrowings | 0 | 0 | (534) |
Other - bad debt expense | (76) | (240) | (191) |
Balance, end of period | $ 68,079 | $ 83,248 | $ 81,056 |