(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
PART I - FINANCIAL INFORMATION | |||||||||||
INDEX | |||||||||||
Item 1. | Financial Statements | Page No. | |||||||||
Condensed Consolidated Balance Sheets (unaudited) – as of September 30, 2020 and December 31, 2019 | 2 | ||||||||||
Condensed Consolidated Statements of Operations (unaudited) – Three Months and Nine Months Ended September 30, 2020 and 2019 | 3 | ||||||||||
Condensed Consolidated Statements of Stockholders' Equity (unaudited) – Three Months and Nine Months Ended September 30, 2020 and 2019 | 4 | ||||||||||
Condensed Consolidated Statements of Cash Flows (unaudited) – Nine Months Ended September 30, 2020 and 2019 | 8 | ||||||||||
Notes to Condensed Consolidated Financial Statements (unaudited) | 10 | ||||||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 50 | |||||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 78 | |||||||||
Item 4. | Controls and Procedures | 79 | |||||||||
PART II - OTHER INFORMATION | |||||||||||
Item 1. | Legal Proceedings | 79 | |||||||||
Item 1A. | Risk Factors | 79 | |||||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 81 | |||||||||
Item 3. | Defaults Upon Senior Securities | 81 | |||||||||
Item 4. | Mine Safety Disclosures | 81 | |||||||||
Item 5. | Other Information | 81 | |||||||||
Item 6. | Exhibits | 81 | |||||||||
Preferred Apartment Communities, Inc. | ||||||||||||||
Condensed Consolidated Balance Sheets | ||||||||||||||
(Unaudited) | ||||||||||||||
(In thousands, except per-share par values) | September 30, 2020 | December 31, 2019 | ||||||||||||
Assets | ||||||||||||||
Real estate | ||||||||||||||
Land | $ | $ | ||||||||||||
Building and improvements | ||||||||||||||
Tenant improvements | ||||||||||||||
Furniture, fixtures, and equipment | ||||||||||||||
Construction in progress | ||||||||||||||
Gross real estate | ||||||||||||||
Less: accumulated depreciation | ( | ( | ||||||||||||
Net real estate | ||||||||||||||
Real estate loan investments, net of deferred fee income and allowance for expected | ||||||||||||||
loan loss of $10,480 and $1,460 | ||||||||||||||
Real estate loan investments to related parties, net of deferred fee income and allowances for expected | ||||||||||||||
loan losses and doubtful accounts of $3,548 and $1,416 | ||||||||||||||
Total real estate and real estate loan investments, net | ||||||||||||||
Cash and cash equivalents | ||||||||||||||
Restricted cash | ||||||||||||||
Notes receivable | ||||||||||||||
Note receivable and revolving lines of credit due from related parties | ||||||||||||||
Accrued interest receivable on real estate loans | ||||||||||||||
Acquired intangible assets, net of amortization of $177,348 and $149,896 | ||||||||||||||
Deferred loan costs on Revolving Line of Credit, net of amortization of $1,362 and $849 | ||||||||||||||
Deferred offering costs | ||||||||||||||
Tenant lease inducements, net of amortization of $4,902 and $3,567 | ||||||||||||||
Investment in unconsolidated joint venture | ||||||||||||||
Tenant receivables and other assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities and equity | ||||||||||||||
Liabilities | ||||||||||||||
Mortgage notes payable, net of deferred loan costs and mark-to-market adjustment of $48,376 and $42,807 | $ | $ | ||||||||||||
Revolving line of credit | ||||||||||||||
Term note payable, net of deferred loan costs of $0 and $511 | ||||||||||||||
Unearned purchase option termination fees | ||||||||||||||
Deferred revenue | ||||||||||||||
Accounts payable and accrued expenses | ||||||||||||||
Deferred liability to Former Manager | ||||||||||||||
Contingent liability due to Former Manager | ||||||||||||||
Accrued interest payable | ||||||||||||||
Dividends and partnership distributions payable | ||||||||||||||
Acquired below market lease intangibles, net of amortization of $31,511 and $23,655 | ||||||||||||||
Prepaid rent, security deposits, and other liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Commitments and contingencies (Note 11) | ||||||||||||||
Equity | ||||||||||||||
Stockholders' equity | ||||||||||||||
Series A Redeemable Preferred Stock, $0.01 par value per share; 3,050 shares authorized; 2,226 and 2,161 shares | ||||||||||||||
issued; 1,991 and 2,028 shares outstanding at September 30, 2020 and December 31, 2019, respectively | ||||||||||||||
Series A1 Redeemable Preferred Stock, $0.01 par value per share; up to 1,000 shares authorized; 103 and 5 shares | ||||||||||||||
issued and outstanding at September 30, 2020 and December 31, 2019, respectively | ||||||||||||||
Series M Redeemable Preferred Stock, $0.01 par value per share; 500 shares authorized; 106 shares issued; | ||||||||||||||
91 and 103 shares outstanding at September 30, 2020 and December 31, 2019, respectively | ||||||||||||||
Series M1 Redeemable Preferred Stock, $0.01 par value per share; up to 1,000 shares authorized; 13 and zero shares | ||||||||||||||
issued and outstanding at September 30, 2020 and December 31, 2019, respectively | ||||||||||||||
Common Stock, $0.01 par value per share; 400,067 shares authorized; 49,901 and 46,443 shares issued and | ||||||||||||||
outstanding at September 30, 2020 and December 31, 2019, respectively | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Accumulated (deficit) earnings | ( | ( | ||||||||||||
Total stockholders' equity | ||||||||||||||
Non-controlling interest | ( | |||||||||||||
Total equity | ||||||||||||||
Total liabilities and equity | $ | $ |
Preferred Apartment Communities, Inc. | |||||||||||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
(In thousands, except per-share figures) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rental and other property revenues | $ | $ | $ | $ | |||||||||||||||||||
Interest income on loans and notes receivable | |||||||||||||||||||||||
Interest income from related parties | |||||||||||||||||||||||
Miscellaneous revenues | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Property operating and maintenance | |||||||||||||||||||||||
Property salary and benefits (including reimbursements of $0, $4,681, $1,430 | |||||||||||||||||||||||
and $12,973 to related party) | |||||||||||||||||||||||
Property management costs (including $0, $2,565, $894 and $7,534 to related parties) | |||||||||||||||||||||||
Real estate taxes and insurance | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Equity compensation to directors and executives | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Asset management and general and administrative expense fees to related party | |||||||||||||||||||||||
Provision for expected credit losses | ( | ||||||||||||||||||||||
Management internalization expense | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Waived asset management and general and administrative expense fees | ( | ( | ( | ||||||||||||||||||||
Net operating expenses | |||||||||||||||||||||||
Operating (loss) income before gain on sale of real estate and loss from | |||||||||||||||||||||||
unconsolidated joint venture | ( | ||||||||||||||||||||||
Loss from unconsolidated joint venture | ( | ( | |||||||||||||||||||||
Gain on sale of real estate, net | |||||||||||||||||||||||
Operating (loss) income | ( | ||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Change in fair value of net assets of consolidated VIEs from mortgage-backed pools | |||||||||||||||||||||||
Loss on extinguishment of debt | ( | ( | ( | ( | |||||||||||||||||||
Gain on land condemnation | |||||||||||||||||||||||
Net loss | ( | ( | ( | ( | |||||||||||||||||||
Consolidated net loss (income) attributable to non-controlling interests | |||||||||||||||||||||||
Net loss attributable to the Company | ( | ( | ( | ( | |||||||||||||||||||
Dividends declared to preferred stockholders | ( | ( | ( | ( | |||||||||||||||||||
Earnings attributable to unvested restricted stock | ( | ( | ( | ( | |||||||||||||||||||
Net loss attributable to common stockholders | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Net loss per share of Common Stock available | |||||||||||||||||||||||
to common stockholders, basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Weighted average number of shares of Common Stock outstanding, | |||||||||||||||||||||||
basic and diluted | |||||||||||||||||||||||
Preferred Apartment Communities, Inc. | ||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||
For the three-month period ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except dividend per-share figures) | Redeemable Preferred Stock | Common Stock | Additional Paid in Capital | Accumulated Earnings | Total Stockholders' Equity | Non-Controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||||
Balance at July 1, 2020 | $ | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||
Issuance of Series A1/M1 preferred shares | — | — | ||||||||||||||||||||||||||||||||||||||||||
At-the-market issuance of common stock | — | — | ||||||||||||||||||||||||||||||||||||||||||
Redemptions of preferred stock | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Syndication and offering costs | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Equity compensation to executives and directors | ||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class A Units to common stock | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Current period amortization of Class B Units | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Contributions from non-controlling interests | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Reallocation of non-controlling interest to Class A Unitholders | ( | |||||||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interests | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Distributions to Class A Unitholders | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Dividends to Series A preferred stockholders | ||||||||||||||||||||||||||||||||||||||||||||
($5.00 per share per month) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Dividends to mShares preferred stockholders | ||||||||||||||||||||||||||||||||||||||||||||
($4.79 - $6.25 per share per month) | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Dividends to Series A1/M1 preferred stockholders | ||||||||||||||||||||||||||||||||||||||||||||
($5.00 and $5.08 - $5.92 per share per month, respectively) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($0.175 per share) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | $ | ( | $ | $ | ( | $ |
Preferred Apartment Communities, Inc. | ||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Stockholders' Equity, continued | ||||||||||||||||||||||||||||||||||||||||||||
For the three-month period ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except dividend per-share figures) | Redeemable Preferred Stock | Common Stock | Additional Paid in Capital | Accumulated Earnings | Total Stockholders' Equity | Non-Controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||||
Balance at July 1, 2019 | $ | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||
Issuance of Series A preferred shares | — | |||||||||||||||||||||||||||||||||||||||||||
Issuance of mShares | — | |||||||||||||||||||||||||||||||||||||||||||
Redemptions of preferred stock | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Exercises of warrants | ||||||||||||||||||||||||||||||||||||||||||||
Syndication and offering costs | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Equity compensation to executives and directors | ||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class A Units to common stock | ( | |||||||||||||||||||||||||||||||||||||||||||
Current period amortization of Class B Units | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Contributions from non-controlling interests | — | — | ||||||||||||||||||||||||||||||||||||||||||
Reallocation of non-controlling interest to Class A Unitholders | ( | |||||||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interests | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Dividends to Series A preferred stockholders | ||||||||||||||||||||||||||||||||||||||||||||
($5.00 per share per month) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Dividends to mShares preferred stockholders | ||||||||||||||||||||||||||||||||||||||||||||
($4.79 - $6.25 per share per month) | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($0.2625 per share) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | $ | $ | $ | $ | $ |
Preferred Apartment Communities, Inc. | ||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Stockholders' Equity, continued | ||||||||||||||||||||||||||||||||||||||||||||
For the nine-month period ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except dividend per-share figures) | Redeemable Preferred Stock | Common Stock | Additional Paid in Capital | Accumulated Earnings | Total Stockholders' Equity | Non-Controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | $ | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
Cumulative adjustment to reflect the adoption of ASU 2016-13 | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Issuance of Series A preferred shares | — | — | ||||||||||||||||||||||||||||||||||||||||||
Issuance of Series A1/M1 preferred shares | — | — | ||||||||||||||||||||||||||||||||||||||||||
At-the-market issuance of common stock | — | 6 | 4,608 | — | 4,614 | — | 4,614 | |||||||||||||||||||||||||||||||||||||
Exercise of warrants | ||||||||||||||||||||||||||||||||||||||||||||
Redemptions of preferred stock | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Syndication and offering costs | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Equity compensation to executives and directors | ||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class A Units to common stock | ( | |||||||||||||||||||||||||||||||||||||||||||
Current period amortization of Class B Units | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Contributions from non-controlling interests | — | — | ||||||||||||||||||||||||||||||||||||||||||
Reallocation of non-controlling interest to Class A Unitholders | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interests | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Distributions to Class A Unitholders | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Dividends to Series A preferred stockholders | ||||||||||||||||||||||||||||||||||||||||||||
($5.00 per share per month) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Dividends to mShares preferred stockholders | ||||||||||||||||||||||||||||||||||||||||||||
($4.79 - $6.25 per share per month) | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Dividends to Series A1/M1 preferred stockholders | ||||||||||||||||||||||||||||||||||||||||||||
($5.00 and $5.08 - $5.92 per share per month, respectively) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($0.6125 per share) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | $ | ( | $ | $ | ( | $ |
Preferred Apartment Communities, Inc. | ||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Stockholders' Equity, continued | ||||||||||||||||||||||||||||||||||||||||||||
For the nine-month period ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except dividend per-share figures) | Redeemable Preferred Stock | Common Stock | Additional Paid in Capital | Accumulated Earnings | Total Stockholders' Equity | Non-Controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||||
Balance at January 1, 2019 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Issuance of Series A preferred shares | — | |||||||||||||||||||||||||||||||||||||||||||
Issuance of mShares | — | |||||||||||||||||||||||||||||||||||||||||||
Redemptions of preferred stock | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Exercises of warrants | ||||||||||||||||||||||||||||||||||||||||||||
Syndication and offering costs | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Equity compensation to executives and directors | ||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class A Units to common stock | ( | |||||||||||||||||||||||||||||||||||||||||||
Current period amortization of Class B Units | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Contributions from non-controlling interests | — | — | ||||||||||||||||||||||||||||||||||||||||||
Reallocation of non-controlling interest to Class A Unitholders | ( | |||||||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interests | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Dividends to Series A preferred stockholders | ||||||||||||||||||||||||||||||||||||||||||||
($5.00 per share per month) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Dividends to mShares preferred stockholders | ||||||||||||||||||||||||||||||||||||||||||||
($4.79 - $6.25 per share per month) | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($0.785 per share) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | $ | $ | $ | $ | $ |
Preferred Apartment Communities, Inc. | |||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||
(Unaudited) | |||||||||||
(In thousands) | Nine-month periods ended September 30, | ||||||||||
2020 | 2019 | ||||||||||
Operating activities: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Reconciliation of net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization expense | |||||||||||
Amortization of above and below market leases | ( | ( | |||||||||
Deferred revenues and other noncash revenues amortization | ( | ( | |||||||||
Purchase option termination fee amortization | ( | ( | |||||||||
Amortization of equity compensation, lease incentives and other non-cash expenses | |||||||||||
Deferred loan cost amortization | |||||||||||
Non-cash accrued interest income on real estate loan investments | ( | ( | |||||||||
Receipt of accrued interest income on real estate loans | |||||||||||
Gains on sales of real estate loan investments, net | ( | ||||||||||
Gain on sale of real estate and land condemnation | ( | ||||||||||
Loss from unconsolidated joint venture | |||||||||||
Cash received for purchase option terminations | |||||||||||
Loss on extinguishment of debt | |||||||||||
Non-cash payment of interest on related party line of credit | ( | ||||||||||
Mortgage interest received from consolidated VIEs | |||||||||||
Mortgage interest paid to other participants of consolidated VIEs | ( | ||||||||||
Increase in provision for expected credit losses | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
(Increase) in tenant receivables and other assets | ( | ( | |||||||||
(Increase) in tenant lease incentives | ( | ( | |||||||||
Increase in accounts payable and accrued expenses | |||||||||||
Increase in deferred liability to Former Manager | |||||||||||
Increase in contingent liability | |||||||||||
Decrease in accrued interest, prepaid rents and other liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Investing activities: | |||||||||||
Investments in real estate loans | ( | ( | |||||||||
Repayments of real estate loans | |||||||||||
Notes receivable issued | ( | ( | |||||||||
Notes receivable repaid | |||||||||||
Note receivable issued to and draws on line of credit by related parties | ( | ( | |||||||||
Repayments of notes receivable and lines of credit by related parties | |||||||||||
Proceeds from sale of real estate loan investment, net | |||||||||||
Origination fees received on real estate loan investments | |||||||||||
Origination fees paid to Former Manager on real estate loan investments | ( | ||||||||||
Purchases of mortgage backed securities (K program), net of acquisition costs | ( | ||||||||||
Mortgage principal received from consolidated VIEs | |||||||||||
Purchases of mortgage backed securities | ( | ||||||||||
Proceeds from sales of mortgage-backed securities | |||||||||||
Acquisition of properties | ( | ( | |||||||||
Proceeds from sale of interest in unconsolidated joint venture | |||||||||||
Return of capital from investment in unconsolidated joint venture | |||||||||||
Receipt of insurance proceeds for capital improvements | |||||||||||
Proceeds from land condemnation | |||||||||||
Capital improvements to real estate assets | ( | ( | |||||||||
Investment in property development | ( | ||||||||||
Deposits paid on acquisitions | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
The accompanying notes are an integral part of these consolidated financial statements. | |||||||||||
Preferred Apartment Communities, Inc. | |||||||||||
Consolidated Statements of Cash Flows - continued | |||||||||||
(Unaudited) | |||||||||||
(In thousands) | Nine-month periods ended September 30, | ||||||||||
2020 | 2019 | ||||||||||
Financing activities: | |||||||||||
Proceeds from mortgage notes payable | |||||||||||
Repayments of mortgage notes payable | ( | ( | |||||||||
Payments for deposits and other mortgage loan costs | ( | ( | |||||||||
Debt prepayment and other debt extinguishment costs | ( | ||||||||||
Payments to real estate loan participants | ( | ||||||||||
Proceeds from lines of credit | |||||||||||
Payments on lines of credit | ( | ( | |||||||||
Repayment of the Term Loan | ( | ||||||||||
Mortgage principal paid to other participants of consolidated VIEs | ( | ||||||||||
Proceeds from repurchase agreements | |||||||||||
Repayments of repurchase agreements | ( | ||||||||||
Proceeds from the sales of Preferred Stock and Units, net of offering costs and redemptions | |||||||||||
Proceeds from exercises of Warrants | |||||||||||
Payments for redemptions of preferred stock | ( | ( | |||||||||
Proceeds from sale of Common Stock | |||||||||||
Common Stock dividends paid | ( | ( | |||||||||
Preferred stock dividends and Class A Unit distributions paid | ( | ( | |||||||||
Payments for deferred offering costs | ( | ( | |||||||||
Contributions from non-controlling interests | |||||||||||
Distributions to non-controlling interests | ( | ||||||||||
Net cash provided by financing activities | |||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash, beginning of year | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ | |||||||||
Supplemental cash flow information: | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Supplemental disclosure of non-cash investing and financing activities: | |||||||||||
Accrued capital expenditures | $ | $ | |||||||||
Writeoff of fully depreciated or amortized assets and liabilities | $ | $ | |||||||||
Writeoff of fully amortized deferred loan costs | $ | $ | |||||||||
Consolidation of assets of VIEs | $ | $ | |||||||||
Consolidation of liabilities of VIEs | $ | $ | |||||||||
Noncash extinguishment of notes receivable | $ | $ | |||||||||
Dividends payable - Common Stock | $ | $ | |||||||||
Dividends payable - Series A Preferred Stock | $ | $ | |||||||||
Dividends payable - mShares Preferred Stock | $ | $ | |||||||||
Dividends payable - A1/M1 Preferred Stock | $ | $ | |||||||||
Dividends declared but not yet due and payable | $ | $ | |||||||||
Partnership distributions payable to non-controlling interests | $ | $ | |||||||||
Accrued and payable deferred offering costs | $ | $ | |||||||||
Offering cost reimbursement to related party | $ | $ | |||||||||
Reclass of offering costs from deferred asset to equity | $ | $ | |||||||||
Loan receivables converted to equity for property acquisition | $ | $ | |||||||||
Noncash contribution of property into an unconsolidated joint venture | $ | $ | |||||||||
Fair value issuances of equity compensation | $ | $ | |||||||||
Mortgage loans assumed on acquisitions | $ | $ | |||||||||
Noncash repayment of mortgages through refinances | $ | $ | |||||||||
Operating lease liabilities assumed from Former Manager | $ | $ |
For the three-month period ended September 30, 2019 | |||||||||||||||||
(in thousands) | As reported in Quarterly Report on Form 10-Q at September 30, 2019 | Reclassification adjustments | As reported in Quarterly Report on Form 10-Q at September 30, 2020 | ||||||||||||||
Rental revenues | $ | $ | ( | $ | |||||||||||||
Other property revenues | $ | $ | ( | $ | |||||||||||||
Rental and other property revenues | $ | $ | $ | ||||||||||||||
Operating expenses: | |||||||||||||||||
Property operating and maintenance | $ | $ | $ | ||||||||||||||
Real estate taxes | $ | $ | ( | $ | |||||||||||||
Real estate taxes and insurance | $ | $ | $ | ||||||||||||||
General and administrative | $ | $ | ( | $ | |||||||||||||
Insurance, professional fees and other expenses | $ | $ | ( | $ | |||||||||||||
Management internalization expense | $ | $ | $ |
For the nine-month period ended September 30, 2019 | |||||||||||||||||
(in thousands) | As reported in Quarterly Report on Form 10-Q at September 30, 2019 | Reclassification adjustments | As reported in Quarterly Report on Form 10-Q at September 30, 2020 | ||||||||||||||
Rental revenues | $ | $ | ( | $ | |||||||||||||
Other property revenues | $ | $ | ( | $ | |||||||||||||
Rental and other property revenues | $ | $ | $ | ||||||||||||||
Operating expenses: | |||||||||||||||||
Property operating and maintenance | $ | $ | $ | ||||||||||||||
Real estate taxes | $ | $ | ( | $ | |||||||||||||
Real estate taxes and insurance | $ | $ | $ | ||||||||||||||
General and administrative | $ | $ | ( | $ | |||||||||||||
Insurance, professional fees and other expenses | $ | $ | ( | $ | |||||||||||||
Management internalization expense | $ | $ | $ |
Standard | Description | Date of Adoption | Effect on the Consolidated Financial Statements | ||||||||
Recently Adopted Accounting Guidance | |||||||||||
ASU 2016-13, Financial Instruments - Credit Losses (ASC 326) | ASU 2016-03 ("CECL") changes how entities will measure credit losses for most financial assets, including loans, which are not measured at fair value through net income. The guidance replaces the existing incurred loss model with an expected loss model for instruments measured at amortized cost, and requires entities to record credit allowances for financial assets rather than reduce the carrying amount, as they do today under the other-than temporary impairment model. | January 1, 2020 | Implementation of the new guidance on accounting for financial assets was limited to our real estate loan investments. We have developed a model that derives a reserve ratio based upon the amount of financial protection afforded each instrument. For each loan in which we are the lender, the amount of protection afforded to us is estimated to be the excess of the future estimated fair market value of the developed property over the commitment amount of each loan (including other loans senior to the Company’s), inclusive of accrued interest and other related receivables. The excess represents the amount of equity dollars in each real estate project, which are in a subordinate position to our real estate loan investments. We implemented this new guidance using the modified retrospective basis by recording a cumulative effect adjustment to retained earnings on January 1, 2020 of approximately $ |
Standard | Description | Date of Adoption | Effect on the Consolidated Financial Statements | ||||||||
Recently Issued Accounting Guidance Not Yet Adopted | |||||||||||
ASU 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting | The new standard enables affected entities to elect from a series of practical expedients designed to ease the transition from referenced base rates within contracts designated to be replaced by Reference Rate Reform. | The amendments are effective March 12, 2020 through December 31, 2022. | ASU 2020-04 will potentially be applicable to the Company's variable-rate debt instruments for which the Company is the borrower, which bear interest at a spread over the 1-month London Interbank Offer Rate (1-month LIBOR). Among the practical expedients are the option to elect prospective adjustment of the effective interest rate, foregoing reassessment of any instruments under loan modification rules. The Company is monitoring developments pertaining to Reference Rate Reform and does not currently anticipate ASU 2020-04 to have a material effect on its results of operations. |
As of: | ||||||||||||||
September 30, 2020 | December 31, 2019 | |||||||||||||
Residential properties: | ||||||||||||||
Properties (1,2) | ||||||||||||||
Units | ||||||||||||||
Beds | ||||||||||||||
New Market Properties: | ||||||||||||||
Properties (2) | ||||||||||||||
Gross leasable area (square feet) (3) | ||||||||||||||
Preferred Office Properties: | ||||||||||||||
Properties (2,4) | ||||||||||||||
Rentable square feet | ||||||||||||||
(1) The acquired second phases of CityPark View and Crosstown Walk communities are managed in combination with the initial phases and so together are considered a single property, as is the Regent at Lenox Village within the Lenox Portfolio. | ||||||||||||||
(2) One multifamily community, two student housing properties, two grocery-anchored shopping centers and two office buildings are owned through consolidated joint ventures. One grocery-anchored shopping center is an investment in an unconsolidated joint venture. | ||||||||||||||
(3) The Company also owns approximately 47,600 square feet of gross leasable area of ground floor retail space which is embedded within the Lenox Portfolio and is not included in the totals above for New Market Properties. | ||||||||||||||
(4) Excludes our 251 Armour property, comprising 35,000 rentable square feet that is under development and our 4th & Brevard land parcel, that is slated for future development. |
Acquisition date | Property | Location | Units | |||||||||||||||||
3/31/2020 | Horizon at Wiregrass | Tampa, Florida | ||||||||||||||||||
4/30/2020 | Parkside at the Beach | Panama City Beach, Florida | ||||||||||||||||||
Multifamily Community acquired during the nine-month period ended | ||||||||
(In thousands, except amortization period data) | September 30, 2020 | |||||||
Land | $ | |||||||
Buildings and improvements | ||||||||
Furniture, fixtures and equipment | ||||||||
Lease intangibles | ||||||||
Prepaids & other assets | ||||||||
Accrued taxes | ( | |||||||
Security deposits, prepaid rents, and other liabilities | ( | |||||||
Net assets acquired | $ | |||||||
Cash paid | $ | |||||||
Mortgage debt, net | ||||||||
Total consideration | $ | |||||||
Three-months ended September 30, 2020 | ||||||||
Revenue | $ | |||||||
Net income (loss) | $ | ( | ||||||
Nine-months ended September 30, 2020 | ||||||||
Revenue | $ | |||||||
Net income (loss) | $ | ( | ||||||
Capitalized acquisition costs incurred by the Company | $ | |||||||
Acquisition costs paid to related party (included above) | $ | |||||||
Remaining amortization period of intangible | ||||||||
assets and liabilities (months) | ||||||||
Student housing property acquired during the nine-month period ended | ||||||||
(In thousands, except amortization period data) | September 30, 2019 | |||||||
Land | $ | |||||||
Buildings and improvements | ||||||||
Furniture, fixtures and equipment | ||||||||
Lease intangibles | ||||||||
Accrued taxes | ( | |||||||
Security deposits, prepaid rents, and other liabilities | ( | |||||||
Net assets acquired | $ | |||||||
Satisfaction of loan receivables | $ | |||||||
Cash paid | ||||||||
Mortgage debt, net | ||||||||
Total consideration | $ | |||||||
Three-months ended September 30, 2020 | ||||||||
Revenue | $ | |||||||
Net income (loss) | $ | |||||||
Nine-months ended September 30, 2020 | ||||||||
Revenue | $ | |||||||
Net income (loss) | $ | |||||||
Capitalized acquisition costs incurred by the Company | $ | |||||||
Acquisition costs paid to related party | $ | |||||||
Remaining amortization period of intangible | ||||||||
assets and liabilities (months) |
Acquisition date | Property | Location | Gross leasable area (square feet) | |||||||||||||||||
1/29/2020 | Wakefield Crossing | Raleigh, North Carolina | ||||||||||||||||||
3/19/2020 | Midway Market | Dallas, Texas | ||||||||||||||||||
1/17/2019 | Gayton Crossing | Richmond, Virginia | ||||||||||||||||||
5/28/2019 | Free State Shopping Center | Washington, D.C. | ||||||||||||||||||
6/12/2019 | Disston Plaza | Tampa - St. Petersburg, Florida | ||||||||||||||||||
6/12/2019 | Polo Grounds Mall | West Palm Beach, Florida | ||||||||||||||||||
8/16/2019 | Fairfield Shopping Center (1) | Virginia Beach, VA | ||||||||||||||||||
(1) Property is owned through a consolidated joint venture. |
New Market Properties' acquisitions during the nine-month periods ended September 30, | ||||||||||||||
(In thousands, except amortization period data) | 2020 | 2019 | ||||||||||||
Land | $ | $ | ||||||||||||
Buildings and improvements | ||||||||||||||
Tenant improvements | ||||||||||||||
In-place leases | ||||||||||||||
Above market leases | ||||||||||||||
Leasing costs | ||||||||||||||
Below market leases | ( | ( | ||||||||||||
Prepaid taxes and other assets | ||||||||||||||
Security deposits, prepaid rents, and other | ( | ( | ||||||||||||
Net assets acquired | $ | $ | ||||||||||||
Cash paid | $ | $ | ||||||||||||
Mortgage debt | ||||||||||||||
Total consideration | $ | $ | ||||||||||||
Three-month period ended September 30, 2020 | ||||||||||||||
Revenue | $ | $ | ||||||||||||
Net income (loss) | $ | $ | ( | |||||||||||
Nine-month period ended September 30, 2020 | ||||||||||||||
Revenue | $ | $ | ||||||||||||
Net income (loss) | $ | $ | ( | |||||||||||
Capitalized acquisition costs incurred by the Company | $ | $ | ||||||||||||
Capitalized acquisition costs paid to related party (included above) | $ | $ | ||||||||||||
Remaining amortization period of intangible | ||||||||||||||
assets and liabilities (years) |
(In thousands) | Three-month periods ended September 30, | Nine-month periods ended September 30, | ||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Depreciation: | ||||||||||||||||||||||||||
Buildings and improvements | $ | $ | $ | $ | ||||||||||||||||||||||
Furniture, fixtures, and equipment | ||||||||||||||||||||||||||
Amortization: | ||||||||||||||||||||||||||
Acquired intangible assets | ||||||||||||||||||||||||||
Deferred leasing costs | ||||||||||||||||||||||||||
Website development costs | ||||||||||||||||||||||||||
Total depreciation and amortization | $ | $ | $ | $ |
(in thousands) | September 30, 2020 | |||||||
Total assets | $ | |||||||
Total liabilities | $ |
Three months ended | Nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2020 | 2020 | |||||||||||||
Rental and other property revenues | $ | $ | ||||||||||||
Total operating expenses | $ | $ | ||||||||||||
Interest expense | $ | $ | ||||||||||||
Net income (loss) | $ | ( | $ | ( | ||||||||||
Net income (loss) attributable to the Company | $ | ( | $ | ( |
September 30, 2020 | December 31, 2019 | |||||||||||||
Number of loans | ||||||||||||||
Number of underlying properties in development | ||||||||||||||
(In thousands) | ||||||||||||||
Drawn amount | $ | $ | ||||||||||||
Deferred loan origination fees | ( | ( | ||||||||||||
Allowance for loan losses | ( | ( | ||||||||||||
Carrying value | $ | $ | ||||||||||||
Unfunded loan commitments | $ | $ | ||||||||||||
Weighted average current interest, per annum (paid monthly) | % | % | ||||||||||||
Weighted average accrued interest, per annum | % | % |
(In thousands) | Principal balance | Deferred loan origination fees | Allowances and CECL Reserves | Carrying value | ||||||||||||||||||||||
Balances as of December 31, 2019 | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||
Opening CECL reserve | — | — | ( | ( | ||||||||||||||||||||||
Loan fundings | — | — | ||||||||||||||||||||||||
Loan repayments | ( | — | — | ( | ||||||||||||||||||||||
Loan origination fees collected | — | ( | — | ( | ||||||||||||||||||||||
Amortization of loan origination fees | — | — | ||||||||||||||||||||||||
Reserve increases due to loan originations | — | — | ( | ( | ||||||||||||||||||||||
Net increases in reserves on existing loans or loans repaid | — | — | ( | ( | ||||||||||||||||||||||
Balances as of September 30, 2020 | $ | $ | ( | $ | ( | $ |
Property type | Number of loans | Carrying value | Commitment amount | Percentage of portfolio | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Residential properties | $ | $ | % | |||||||||||||||||||||||
New Market Properties | % | |||||||||||||||||||||||||
Preferred Office Properties | % | |||||||||||||||||||||||||
Balances as of September 30, 2020 | $ | $ |
Final reserve ratio | Number of loans | Total receivables by project, net of reserves (in thousands) | ||||||||||||
— | % | $ | ||||||||||||
0.50 | % | |||||||||||||
1.00 | % | |||||||||||||
1.50 | % | |||||||||||||
3.00 | % | |||||||||||||
4.00 | % | |||||||||||||
5.00% + | ||||||||||||||
$ |
Borrower | Date of loan | Maturity date | Total loan commitments | Outstanding balance as of: | Interest rate | ||||||||||||||||||||||||||||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Preferred Capital Marketing Services, LLC (1) | N/A | N/A | $ | $ | $ | N/A | |||||||||||||||||||||||||||||||||||
Preferred Apartment Advisors, LLC (1) | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||
Haven Campus Communities, LLC (1,2) | 6/11/2014 | 12/31/2018 | % | ||||||||||||||||||||||||||||||||||||||
Newport Development Partners, LLC | 6/17/2014 | 6/30/2021 | % | ||||||||||||||||||||||||||||||||||||||
Oxford Capital Partners, LLC (3) | 10/5/2015 | 6/30/2021 | % | ||||||||||||||||||||||||||||||||||||||
Mulberry Development Group, LLC (4) | 3/31/2016 | 6/30/2021 | % | ||||||||||||||||||||||||||||||||||||||
360 Capital Company, LLC (4) | 5/24/2016 | 12/31/2020 | % | ||||||||||||||||||||||||||||||||||||||
360 Capital Company, LLC (1) | 7/24/2018 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||
Unamortized loan fees | — | ( | |||||||||||||||||||||||||||||||||||||||
$ | $ | $ | |||||||||||||||||||||||||||||||||||||||
(1) See related party disclosure in Note 6. | |||||||||||||||||||||||||||||||||||||||||
(2) The amount payable under the note is collateralized by one of the principals of the borrower's 49.49% interest in an unrelated shopping center located in Atlanta, Georgia and a personal guaranty of repayment by the principals of the borrower. | |||||||||||||||||||||||||||||||||||||||||
(3) The amounts payable under the terms of this revolving credit line, up to the lesser of 25% of the loan balance or $2.0 million, are collateralized by a personal guaranty of repayment by the principals of the borrower. The overall decrease in the Oxford LOC balance is a function of an approximate $5.0 million paydown on July 31, 2020, that was required as part of the LOC agreement whenever a Capital Transaction involving the Manassas Palisades property occurred. This property was sold on July 31, 2020 and the related mezz loan was repaid to PAC. Therefore, a corresponding paydown on the Oxford LOC was made to reduce the sum of the principal balance. | |||||||||||||||||||||||||||||||||||||||||
(4) The amounts payable under the terms of these revolving credit lines are collateralized by a personal guaranty of repayment by the principals of the borrower. |
Interest income | Three month periods ended September 30, | Nine-month periods ended September 30, | ||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||
Current interest | $ | $ | $ | $ | ||||||||||||||||||||||
Additional accrued interest | ||||||||||||||||||||||||||
Loan origination fee amortization | ||||||||||||||||||||||||||
Purchase option termination fee amortization | ||||||||||||||||||||||||||
Default interest | ||||||||||||||||||||||||||
Total real estate loan revenue | ||||||||||||||||||||||||||
Notes and lines of credit | ||||||||||||||||||||||||||
Bank and money market accounts | ||||||||||||||||||||||||||
Agency mortgage-backed securities | ||||||||||||||||||||||||||
Interest income on loans and notes receivable | $ | $ | $ | $ |
(In thousands) | Deferred Offering Costs | |||||||||||||||||||||||||||||||||||||||||||
Offering | Total offering | Gross proceeds as of September 30, 2020 | Reclassified as reductions of stockholders' equity | Recorded as deferred assets | Total | Specifically identifiable offering costs (3) | Total offering costs | |||||||||||||||||||||||||||||||||||||
$1.5 Billion Unit Offering (1) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Series A1/M1 Offering | ||||||||||||||||||||||||||||||||||||||||||||
2019 Shelf Offering (2) | ||||||||||||||||||||||||||||||||||||||||||||
Preferred Office Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
(In thousands) | Three-month periods ended September 30, | Nine-month periods ended September 30, | ||||||||||||||||||||||||||||||
Type of Compensation | Basis of Compensation | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||
Acquisition fees | 1.0% of the gross purchase price of real estate assets | $ | $ | $ | $ | |||||||||||||||||||||||||||
Loan origination fees | 1.0% of the maximum commitment of any real estate loan, note or line of credit receivable | |||||||||||||||||||||||||||||||
Loan coordination fees | 0.6% of any assumed, new or supplemental debt incurred in connection with an acquired property | |||||||||||||||||||||||||||||||
Asset management fees | Monthly fee equal to one-twelfth of 0.50% of the total book value of assets, as adjusted | |||||||||||||||||||||||||||||||
Property management fees | Monthly fee up to 4% of the monthly gross revenues of the properties managed | |||||||||||||||||||||||||||||||
General and administrative expense fees | Monthly fee equal to 2% of the monthly gross revenues of the Company | |||||||||||||||||||||||||||||||
Construction management fees | Quarterly fee for property renovation and takeover projects | |||||||||||||||||||||||||||||||
Disposition fees | 1% of the sale price of a real estate asset | |||||||||||||||||||||||||||||||
$ | $ | $ | $ |
Three-month periods ended September 30, | Nine-month periods ended September 30, | |||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
$ | $ | $ | $ |
Dividends and distributions declared | ||||||||||||||
For the nine-month periods ended September 30, | ||||||||||||||
(In thousands) | 2020 | 2019 | ||||||||||||
Series A Preferred Stock | $ | $ | ||||||||||||
mShares | ||||||||||||||
Series A1 Preferred Stock | ||||||||||||||
Series M1 Preferred Stock | ||||||||||||||
Common Stock | ||||||||||||||
Restricted Stock and Class A OP Units | ||||||||||||||
Total | $ | $ |
(In thousands) | Three-month periods ended September 30, | Nine-month periods ended September 30, | Unamortized expense as of September 30, | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | |||||||||||||||||||||||||||||||
Class B Unit awards to employees: | |||||||||||||||||||||||||||||||||||
2016 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
2017 | |||||||||||||||||||||||||||||||||||
2018 | |||||||||||||||||||||||||||||||||||
Restricted stock grants to Board members: | |||||||||||||||||||||||||||||||||||
2018 | |||||||||||||||||||||||||||||||||||
2019 | |||||||||||||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||||||||
Restricted stock grants for employees: | |||||||||||||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||||||||
Performance-based restricted stock units: | |||||||||||||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||||||||
Restricted stock units to employees: | |||||||||||||||||||||||||||||||||||
2017 | |||||||||||||||||||||||||||||||||||
2018 | |||||||||||||||||||||||||||||||||||
2019 | |||||||||||||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
Level | Relative TSR performance (percentile rank versus peers) | Earned PSUs (% of target) | ||||||
< Threshold | <35th Percentile | |||||||
Threshold | 35th Percentile | |||||||
Target | 55th Percentile | |||||||
Maximum | >=75th Percentile |
Stock price on grant date | $ | |||||||
Dividend yield | % | |||||||
Expected volatility | % | |||||||
Risk-free interest rate | % | |||||||
Target number of PSUs granted: | ||||||||
First vesting tranche | ||||||||
Second vesting tranche | ||||||||
Calculated fair value per PSU | $ | |||||||
Total fair value of PSUs | $ | |||||||
Service year | Shares | Fair value per share | Total compensation cost (in thousands) | |||||||||||||||||
2017 | $ | $ | ||||||||||||||||||
2018 | $ | $ | ||||||||||||||||||
2019 | $ | $ | ||||||||||||||||||
2020 | $ | $ |
Grant date | ||||||||||||||
1/2/2018 | 1/3/2017 | |||||||||||||
Units granted | ||||||||||||||
Units forfeited: | ||||||||||||||
John A. Williams (1) | ( | |||||||||||||
Voluntary forfeiture by senior executives (2) | ( | |||||||||||||
Other | ( | ( | ||||||||||||
Total forfeitures | ( | ( | ||||||||||||
Units earned and converted into Class A Units | ( | |||||||||||||
Class B Units outstanding at September 30, 2020 | ||||||||||||||
Units unearned but vested | ||||||||||||||
Units unearned and not yet vested | ||||||||||||||
Class B Units outstanding at September 30, 2020 | ||||||||||||||
(1) Pro rata modification of award on April 16, 2018, the date of Mr. Williams' passing. | ||||||||||||||
(2) Additional Class B OP units granted to senior executives other than Mr. Williams were voluntarily forfeited at the end of 2018. |
Grant date | 1/2/2018 | |||||||
Stock price | $ | |||||||
Dividend yield | % | |||||||
Expected volatility | % | |||||||
Risk-free interest rate | % | |||||||
Number of Units granted: | ||||||||
One year vesting period | ||||||||
Three year vesting period | ||||||||
Calculated fair value per Unit | $ | |||||||
Total fair value of Units | $ | |||||||
Target market threshold increase | $ |
Grant date | 1/2/2020 | 1/2/2019 | 1/2/2018 | ||||||||||||||
Service period | 2020-2022 | 2019-2021 | 2018-2020 | ||||||||||||||
RSU activity: | |||||||||||||||||
Granted | |||||||||||||||||
Forfeited | ( | ( | ( | ||||||||||||||
RSUs outstanding at September 30, 2020 | |||||||||||||||||
RSUs unearned but vested | |||||||||||||||||
RSUs unearned and not yet vested | |||||||||||||||||
RSUs outstanding at September 30, 2020 | |||||||||||||||||
Fair value per RSU | $ | $ | $ | ||||||||||||||
Total fair value of RSU grant | $ | $ | $ |
Property | Date | Initial principal amount (in thousands) | Fixed/Variable rate | Interest rate | Maturity date | |||||||||||||||||||||||||||
251 Armour Yards | 1/22/2020 | $ | Fixed | % | 1/22/2025 | |||||||||||||||||||||||||||
Wakefield Crossing | 1/29/2020 | Fixed | % | 2/1/2032 | ||||||||||||||||||||||||||||
Morrocroft Centre | 3/19/2020 | Fixed | % | 4/10/2033 | ||||||||||||||||||||||||||||
Horizon at Wiregrass Ranch | 4/23/2020 | Fixed | % | 5/1/2030 | ||||||||||||||||||||||||||||
Parkside at the Beach | 4/30/2020 | Fixed | % | 5/1/2030 | ||||||||||||||||||||||||||||
$ |
Date | Property | Previous balance (millions) | Previous interest rate / spread over 1 month LIBOR | Loan refinancing costs expensed (thousands) | New balance (millions) | New interest rate | Additional deferred loan costs from refinancing (thousands) | |||||||||||||||||||||||||||||||||||||
1/3/2020 | Ursa | $ | L + 300 | $ | $ | n/a | $ | |||||||||||||||||||||||||||||||||||||
6/25/2020 | CityPark View | % | % | |||||||||||||||||||||||||||||||||||||||||
6/29/2020 | Aster at Lely Resort | % | % | |||||||||||||||||||||||||||||||||||||||||
6/29/2020 | Avenues at Northpointe | % | % | |||||||||||||||||||||||||||||||||||||||||
6/30/2020 | Avenues at Cypress | % | % | |||||||||||||||||||||||||||||||||||||||||
6/30/2020 | Venue at Lakewood Ranch | % | % | |||||||||||||||||||||||||||||||||||||||||
6/30/2020 | Crosstown Walk | % | % | |||||||||||||||||||||||||||||||||||||||||
6/30/2020 | Summit Crossing II | % | L + 278 | |||||||||||||||||||||||||||||||||||||||||
7/10/2020 | Citrus Village | % | % | |||||||||||||||||||||||||||||||||||||||||
7/31/2020 | Village at Baldwin Park | % | % | |||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
9/17/2019 | Spring Hill Plaza | $ | % | $ | $ | % | $ | |||||||||||||||||||||||||||||||||||||
9/17/2019 | Parkway Town Centre | % | % | |||||||||||||||||||||||||||||||||||||||||
8/16/2019 | Deltona Landings | % | % | |||||||||||||||||||||||||||||||||||||||||
8/16/2019 | Barclay Crossing | % | % | |||||||||||||||||||||||||||||||||||||||||
8/16/2019 | Parkway Center | % | % | |||||||||||||||||||||||||||||||||||||||||
8/13/2019 | Powder Springs | % | % | |||||||||||||||||||||||||||||||||||||||||
7/29/2019 | Citi Lakes | L + 217 | % | |||||||||||||||||||||||||||||||||||||||||
4/12/2019 | Royal Lakes Marketplace | L + 250 | % | |||||||||||||||||||||||||||||||||||||||||
4/12/2019 | Cherokee Plaza | L + 225 | % | |||||||||||||||||||||||||||||||||||||||||
2/28/2019 | Lenox Village Town Center | % | % | |||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ |
(In thousands) | ||||||||||||||||||||
Fixed rate mortgage debt: | Principal balances due | Weighted-average interest rate | Weighted average remaining life (years) | |||||||||||||||||
Residential Properties | $ | % | ||||||||||||||||||
New Market Properties | % | |||||||||||||||||||
Preferred Office Properties | % | |||||||||||||||||||
Total fixed rate mortgage debt | % | |||||||||||||||||||
Variable rate mortgage debt: | ||||||||||||||||||||
Residential Properties | % | |||||||||||||||||||
New Market Properties | % | |||||||||||||||||||
Preferred Office Properties | % | — | ||||||||||||||||||
Total variable rate mortgage debt | % | |||||||||||||||||||
Total mortgage debt: | ||||||||||||||||||||
Residential Properties | % | |||||||||||||||||||
New Market Properties | % | |||||||||||||||||||
Preferred Office Properties | % | |||||||||||||||||||
Total principal amount | % | |||||||||||||||||||
Deferred loan costs | ( | |||||||||||||||||||
Mark to market loan adjustment | ( | |||||||||||||||||||
Mortgage notes payable, net | $ |
Covenant (1) | Requirement | Result | |||||||||||||||
Net worth | Minimum $1.7 billion | $ | (3) | ||||||||||||||
Debt yield | Minimum 8.25% | ||||||||||||||||
Payout ratio | Maximum 95% | (2) | |||||||||||||||
Total leverage ratio | Maximum 65% | ||||||||||||||||
Debt service coverage ratio | Minimum 1.50x | 1.74x |
(In thousands) | Three-month periods ended September 30, | Nine-month periods ended September 30, | ||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Residential Properties | $ | $ | $ | $ | ||||||||||||||||||||||
New Market Properties | ||||||||||||||||||||||||||
Preferred Office Properties | ||||||||||||||||||||||||||
Interest paid to real estate loan participants | ||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||
Credit Facility and Acquisition Facility | ||||||||||||||||||||||||||
Interest Expense | $ | $ | $ | $ | ||||||||||||||||||||||
Period | Future principal payments (in thousands) | |||||||
2020 (1) | $ | |||||||
2021 | ||||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
Thereafter | ||||||||
Total | $ | |||||||
(1) Includes the principal amount due on our revolving line of credit of $33.0 million as of September 30, 2020. | ||||||||
(dollars in thousands) | For the nine-month periods ended September 30, 2020 | Weighted average remaining lease term (years) | Weighted average discount rate | |||||||||||||||||||||||
Lease expense | Cash paid | |||||||||||||||||||||||||
Office space | $ | $ | % | |||||||||||||||||||||||
Ground leases | % | |||||||||||||||||||||||||
Office equipment | % | |||||||||||||||||||||||||
Total | $ | $ |
For the year ending December 31: | Future Minimum Rents as of September 30, 2020 | |||||||||||||||||||||||||
(in thousands) | Office space | Ground leases | Office equipment | Total | ||||||||||||||||||||||
2020 (1) | $ | $ | $ | $ | ||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||
2024 | ||||||||||||||||||||||||||
Thereafter | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ||||||||||||||||||||||
(1) Remaining three months |
(In thousands) | September 30, 2020 | December 31, 2019 | ||||||||||||
Assets: | ||||||||||||||
Residential properties | $ | $ | ||||||||||||
Financing | ||||||||||||||
New Market Properties | ||||||||||||||
Preferred Office Properties | ||||||||||||||
Other | ||||||||||||||
Consolidated assets | $ | $ | ||||||||||||
(In thousands) | Three-month periods ended September 30, | Nine-month periods ended September 30, | ||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Capitalized expenditures: | ||||||||||||||||||||||||||
Residential properties | $ | $ | $ | $ | ||||||||||||||||||||||
New Market Properties | ||||||||||||||||||||||||||
Preferred Office Properties | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
(In thousands) | Three-month periods ended September 30, | Nine-month periods ended September 30, | ||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||
Rental and other property revenues: | ||||||||||||||||||||||||||
Residential properties | $ | $ | $ | $ | ||||||||||||||||||||||
New Market Properties | ||||||||||||||||||||||||||
Preferred Office Properties (1) | ||||||||||||||||||||||||||
Total rental and other property revenues | ||||||||||||||||||||||||||
Financing revenues | ||||||||||||||||||||||||||
Miscellaneous revenues | ||||||||||||||||||||||||||
Consolidated revenues | $ | $ | $ | $ | ||||||||||||||||||||||
(1) Included in rental revenues for our Preferred Office Properties segment is the amortization of deferred revenue for tenant-funded leasehold improvements from a major tenant in our Three Ravinia and Westridge office buildings. As of September 30, 2020, the Company has recorded deferred revenue in an aggregate amount of $47.0 million in connection with such improvements. The remaining balance to be recognized is approximately $36.9 million which is included in the deferred revenues line on the consolidated balance sheets at September 30, 2020. These total costs will be amortized over the lesser of the useful lives of the improvements or the individual lease terms. The Company recorded non-cash revenue of approximately $2.8 million and $2.8 million for the nine-month periods ended September 30, 2020 and 2019, respectively. |
Three-month periods ended September 30, | Nine-month periods ended September 30, | |||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Segment net operating income (Segment NOI) | ||||||||||||||||||||||||||
Residential Properties | $ | $ | $ | $ | ||||||||||||||||||||||
Financing | ||||||||||||||||||||||||||
New Market Properties | ||||||||||||||||||||||||||
Preferred Office Properties | ||||||||||||||||||||||||||
Miscellaneous revenues | ||||||||||||||||||||||||||
Consolidated segment net operating income | ||||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||
Residential Properties | ||||||||||||||||||||||||||
New Market Properties | ||||||||||||||||||||||||||
Preferred Office Properties | ||||||||||||||||||||||||||
Financing | ||||||||||||||||||||||||||
Depreciation and amortization: | ||||||||||||||||||||||||||
Residential Properties | ||||||||||||||||||||||||||
New Market Properties | ||||||||||||||||||||||||||
Preferred Office Properties | ||||||||||||||||||||||||||
Equity compensation to directors and executives | ||||||||||||||||||||||||||
Management fees, net of waived fees | ||||||||||||||||||||||||||
Management Internalization | ||||||||||||||||||||||||||
Provision for expected credit losses | ( | |||||||||||||||||||||||||
Change in net assets of consolidated VIE | ( | ( | ||||||||||||||||||||||||
(Gain) / loss on sale of real estate | ( | ( | ||||||||||||||||||||||||
(Gain) / loss on trading investment, net | ( | |||||||||||||||||||||||||
(Gain) / loss on sale of real estate loan investment | ( | |||||||||||||||||||||||||
(Gain) / loss from land condemnation, net | ( | ( | ||||||||||||||||||||||||
(Gain) / loss on extinguishment of debt | ||||||||||||||||||||||||||
Loss from unconsolidated joint venture | ||||||||||||||||||||||||||
Corporate G&A and Other | ||||||||||||||||||||||||||
Net income (loss) | $ | ( | $ | ( | $ | ( | $ | ( |
(In thousands, except per-share figures) | Three-month periods ended September 30, | Nine-month periods ended September 30, | |||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||||||||
Operating (loss) income before gain on sale of real estate and loss from unconsolidated joint venture | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
Loss from unconsolidated joint venture | ( | ( | |||||||||||||||||||||||||||
Gain on sale of real estate, net | |||||||||||||||||||||||||||||
Operating (loss) income | ( | ||||||||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||||||||
Change in fair value of net assets of consolidated VIEs from mortgage-backed pools | |||||||||||||||||||||||||||||
Less: loss on extinguishment of debt | ( | ( | ( | ( | |||||||||||||||||||||||||
Gains on land condemnation | |||||||||||||||||||||||||||||
Net loss | ( | ( | ( | ( | |||||||||||||||||||||||||
Consolidated net loss attributable to non-controlling interests | |||||||||||||||||||||||||||||
Net loss attributable to the Company | ( | ( | ( | ( | |||||||||||||||||||||||||
Dividends declared to preferred stockholders | ( | ( | ( | ( | |||||||||||||||||||||||||
Net loss attributable to unvested restricted stock | ( | ( | ( | ( | |||||||||||||||||||||||||
Net loss attributable to common stockholders | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||
Weighted average number of shares of Common Stock - basic | |||||||||||||||||||||||||||||
Effect of dilutive securities: (D) | |||||||||||||||||||||||||||||
Weighted average number of shares of Common Stock - basic and diluted | |||||||||||||||||||||||||||||
Net loss per share of Common Stock attributable to | |||||||||||||||||||||||||||||
common stockholders, basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( |
As of September 30, 2020 | |||||||||||||||||||||||||||||
(In thousands) | Carrying value | Fair value measurements using fair value hierarchy | |||||||||||||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||
Real estate loans | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Notes receivable and line of credit receivable | |||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||
Mortgage notes payable | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Revolving credit facility | |||||||||||||||||||||||||||||
$ | $ | $ | $ | $ |
As of December 31, 2019 | |||||||||||||||||||||||||||||
(In thousands) | Carrying value | Fair value measurements using fair value hierarchy | |||||||||||||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||
Real estate loans | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Notes receivable and line of credit receivable | |||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||
Mortgage notes payable | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Revolving line of credit | |||||||||||||||||||||||||||||
Term note payable | |||||||||||||||||||||||||||||
$ | $ | $ | $ | $ |
2020 Cash Collections of Recurring Rental Revenues (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Unadjusted for rent deferrals: | First quarter | April | May | June | July | August | September | October | ||||||||||||||||||||||||||||||||||||||||||
Multifamily | 99.9 | % | 98.8 | % | 98.8 | % | 98.8 | % | 98.8 | % | 99.0 | % | 99.0 | % | 98.5 | % | ||||||||||||||||||||||||||||||||||
Student housing | 99.9 | % | 97.9 | % | 97.0 | % | 97.4 | % | 97.0 | % | 98.6 | % | 98.8 | % | 98.9 | % | ||||||||||||||||||||||||||||||||||
Office | 99.8 | % | 98.8 | % | 97.3 | % | 97.8 | % | 98.9 | % | 99.7 | % | 99.9 | % | 99.8 | % | ||||||||||||||||||||||||||||||||||
Grocery-anchored retail (2) | 99.4 | % | 91.5 | % | 89.7 | % | 91.5 | % | 94.1 | % | 95.0 | % | 96.4 | % | 95.6 | % | ||||||||||||||||||||||||||||||||||
2020 Cash Collections of Recurring Rental Revenues (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted for rent deferrals: | First quarter | April | May | June | July | August | September | October | ||||||||||||||||||||||||||||||||||||||||||
Multifamily | 99.9 | % | 99.7 | % | 99.5 | % | 98.9 | % | 98.9 | % | 99.0 | % | 99.0 | % | 98.5 | % | ||||||||||||||||||||||||||||||||||
Student housing | 99.9 | % | 98.4 | % | 97.4 | % | 97.4 | % | 97.0 | % | 98.6 | % | 98.8 | % | 98.9 | % | ||||||||||||||||||||||||||||||||||
Office | 99.8 | % | 99.7 | % | 99.8 | % | 99.9 | % | 99.8 | % | 99.7 | % | 99.9 | % | 99.8 | % | ||||||||||||||||||||||||||||||||||
Grocery-anchored retail (2) | 99.5 | % | 96.8 | % | 95.2 | % | 95.7 | % | 96.7 | % | 96.0 | % | 97.0 | % | 96.5 | % | ||||||||||||||||||||||||||||||||||
2020 Monthly Occupancy and Percentages Leased | ||||||||||||||||||||||||||||||||||||||||||||||||||
First quarter | April | May | June | July | August | September | October | |||||||||||||||||||||||||||||||||||||||||||
Occupancy: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Multifamily (stabilized) | 95.5 | % | 94.4 | % | 94.4 | % | 95.2 | % | 95.1 | % | 96.0 | % | 95.6 | % | 95.4 | % | ||||||||||||||||||||||||||||||||||
Student housing | 96.1 | % | 96.0 | % | 95.8 | % | 95.8 | % | 95.9 | % | 95.1 | % | 95.3 | % | 95.5 | % | ||||||||||||||||||||||||||||||||||
Percent leased: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Office | 96.7 | % | 95.9 | % | 96.2 | % | 96.2 | % | 96.1 | % | 95.9 | % | 95.5 | % | 95.4 | % | ||||||||||||||||||||||||||||||||||
Grocery-anchored retail (1) | 92.6 | % | 92.5 | % | 92.5 | % | 92.7 | % | 92.8 | % | 92.8 | % | 92.5 | % | 92.4 | % |
Total units upon | Purchase option window | |||||||||||||||||||||||||
Project/Property | Location | completion (1) | Begin | End | ||||||||||||||||||||||
Residential properties: | ||||||||||||||||||||||||||
V & Three | Charlotte, NC | 338 | S + 90 days (2) | S + 150 days (2) | ||||||||||||||||||||||
The Anson | Nashville, TN | 301 | S + 90 days (2) | S + 150 days (2) | ||||||||||||||||||||||
Southpoint | Fredericksburg, VA | 240 | S + 90 days (2) | S + 150 days (2) | ||||||||||||||||||||||
E-Town | Jacksonville, FL | 332 | S + 90 days (3) | S + 150 days (3) | ||||||||||||||||||||||
Vintage | Destin, FL | 282 | (4) | (4) | ||||||||||||||||||||||
Hidden River II | Tampa, FL | 204 | S + 90 days (2) | S + 150 days (2) | ||||||||||||||||||||||
Kennesaw Crossing | Atlanta, GA | 250 | (5) | (5) | ||||||||||||||||||||||
Vintage Horizon West | Orlando, FL | 340 | (4) | (4) | ||||||||||||||||||||||
Solis Chestnut Farm | Charlotte, NC | 256 | (5) | (5) | ||||||||||||||||||||||
Vintage Jones Franklin | Raleigh, NC | 277 | (4) | (4) | ||||||||||||||||||||||
Solis Kennesaw II | Atlanta, GA | 175 | (6) | (6) | ||||||||||||||||||||||
Solis Cumming | Atlanta, GA | 320 | (5) | (5) | ||||||||||||||||||||||
Office property: | ||||||||||||||||||||||||||
8West | Atlanta, GA | (7) | (7) | (7) | ||||||||||||||||||||||
3,315 | ||||||||||||||||||||||||||
(1) We evaluate each project individually and we make no assurance that we will acquire any of the underlying properties from our real estate loan investment portfolio. The purchase options held by us on the 464 Bishop, Haven Charlotte, Sanibel Straights, Wiregrass, Newbergh, Cameron Square, Solis Kennesaw and Falls at Forsyth projects were terminated, in exchange for an aggregate $17.2 million in termination fees from the developers. | ||||||||||||||||||||||||||
(2) The option period window begins and ends at the number of days indicated beyond the achievement of a 93% physical occupancy rate by the underlying property. | ||||||||||||||||||||||||||
(3) The option period window begins on the earlier of June 21, 2024 and the number of days indicated beyond the achievement of a 93% physical occupancy rate by the underlying property. | ||||||||||||||||||||||||||
(4) The option period window begins on the later of one year following receipt of final certificate of occupancy or 90 days beyond the achievement of a 93% physical occupancy rate by the underlying property and ends 60 days beyond the option period beginning date. | ||||||||||||||||||||||||||
(5) We hold a right of first offer on the property. | ||||||||||||||||||||||||||
(6) The option period begins on October 1 of the second academic year following project completion and ends on the following December 31. The developer may elect to expedite the option period to begin December 1, 2020 and end on December 31, 2020. | ||||||||||||||||||||||||||
(7) The project plans are for the construction of a class A office building consisting of approximately 195,000 rentable square feet; our purchase option window opens 90 days following the achievement of 90% lease commencement and ends on November 30, 2024 (subject to adjustment). Our purchase option is at the to-be-agreed-upon market value. In the event the property is sold to a third party, we would be due a fee based on a minimum multiple of 1.15 times the total commitment amount of the real estate loan investment, less the amounts actually paid by the borrower, up to and including payment of accrued interest and repayment of principal at the time of the sale. |
Preferred Apartment Communities, Inc. | Three-month periods ended September 30, | Change inc (dec) | ||||||||||||||||||||||||
2020 | 2019 | Amount | Percentage | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Rental and other property revenues | $ | 114,831 | $ | 105,049 | $ | 9,782 | 9.3 | % | ||||||||||||||||||
Interest income on loans and notes receivable | 10,649 | 12,608 | (1,959) | (15.5) | % | |||||||||||||||||||||
Interest income from related parties | 609 | 2,546 | (1,937) | (76.1) | % | |||||||||||||||||||||
Miscellaneous revenues | 608 | — | 608 | — | ||||||||||||||||||||||
Total revenues | 126,697 | 120,203 | 6,494 | 5.4 | % | |||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Property operating and maintenance | 19,278 | 16,493 | 2,785 | 16.9 | % | |||||||||||||||||||||
Property salary and benefits | 6,054 | 5,360 | 694 | 12.9 | % | |||||||||||||||||||||
Property management fees | 983 | 3,534 | (2,551) | (72.2) | % | |||||||||||||||||||||
Real estate taxes and insurance | 16,078 | 14,474 | 1,604 | 11.1 | % | |||||||||||||||||||||
General and administrative | 7,898 | 1,364 | 6,534 | 479.0 | % | |||||||||||||||||||||
Equity compensation to directors and executives | 582 | 305 | 277 | 90.8 | % | |||||||||||||||||||||
Depreciation and amortization | 51,794 | 46,239 | 5,555 | 12.0 | % | |||||||||||||||||||||
Asset management and general and administrative expense fees to related party | — | 8,611 | (8,611) | (100.0) | % | |||||||||||||||||||||
Provision for expected credit losses | (152) | — | (152) | — | ||||||||||||||||||||||
Management internalization expense | 577 | 818 | (241) | — | ||||||||||||||||||||||
Total operating expenses | 103,092 | 97,198 | 5,894 | 6.1 | % | |||||||||||||||||||||
Waived asset management and general and administrative expense fees | — | (3,081) | 3,081 | (100.0) | % | |||||||||||||||||||||
Net operating expenses | 103,092 | 94,117 | 8,975 | 9.5 | % | |||||||||||||||||||||
Operating (loss) income before gain on sale of real estate and loss from unconsolidated joint venture | 23,605 | 26,086 | (2,481) | (9.5) | % | |||||||||||||||||||||
Loss from unconsolidated joint venture | (120) | — | (120) | — | % | |||||||||||||||||||||
Gain on sale of real estate, net | 3,261 | — | 3,261 | — | ||||||||||||||||||||||
Operating income | 26,746 | 26,086 | 660 | 2.5 | % | |||||||||||||||||||||
Interest expense | 29,879 | 28,799 | 1,080 | 3.8 | % | |||||||||||||||||||||
Change in fair value of net assets of consolidated VIEs from mortgage-backed pools | — | 591 | (591) | — | ||||||||||||||||||||||
Loss on extinguishment of debt | (518) | (15) | (503) | — | ||||||||||||||||||||||
Gain on land condemnation | 49 | — | 49 | — | ||||||||||||||||||||||
Net loss | (3,602) | (2,137) | (1,465) | — | ||||||||||||||||||||||
Consolidated net loss (income) attributable to non-controlling interests | 108 | 59 | 49 | 83.1 | % | |||||||||||||||||||||
Net loss attributable to the Company | $ | (3,494) | $ | (2,078) | $ | (1,416) | — |
Preferred Apartment Communities, Inc. | Nine-month periods ended September 30, | Change inc (dec) | ||||||||||||||||||||||||
2020 | 2019 | Amount | Percentage | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Rental and other property revenues | $ | 338,271 | $ | 298,569 | $ | 39,702 | 13.3 | % | ||||||||||||||||||
Interest income on loans and notes receivable | 34,495 | 35,989 | (1,494) | (4.2) | % | |||||||||||||||||||||
Interest income from related parties | 3,750 | 9,980 | (6,230) | (62.4) | % | |||||||||||||||||||||
Miscellaneous revenues | 4,560 | 1,023 | 3,537 | 345.7 | % | |||||||||||||||||||||
Total revenues | 381,076 | 345,561 | 35,515 | 10.3 | % | |||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Property operating and maintenance | 52,919 | 43,236 | 9,683 | 22.4 | % | |||||||||||||||||||||
Property salary and benefits | 16,965 | 14,845 | 2,120 | 14.3 | % | |||||||||||||||||||||
Property management fees | 4,028 | 10,174 | (6,146) | (60.4) | % | |||||||||||||||||||||
Real estate taxes and insurance | 48,109 | 42,646 | 5,463 | 12.8 | % | |||||||||||||||||||||
General and administrative | 23,109 | 4,171 | 18,938 | 454.0 | % | |||||||||||||||||||||
Equity compensation to directors and executives | 1,058 | 922 | 136 | 14.8 | % | |||||||||||||||||||||
Depreciation and amortization | 153,096 | 137,191 | 15,905 | 11.6 | % | |||||||||||||||||||||
Asset management and general and administrative expense fees to related party | 3,099 | 24,649 | (21,550) | (87.4) | % | |||||||||||||||||||||
Provision for expected credit losses | 5,463 | — | 5,463 | — | ||||||||||||||||||||||
Management internalization expense | 179,828 | 1,143 | 178,685 | — | % | |||||||||||||||||||||
Total operating expenses | 487,674 | 278,977 | 208,697 | 74.8 | % | |||||||||||||||||||||
Waived asset management and general and administrative expense fees | (1,136) | (8,505) | 7,369 | (86.6) | % | |||||||||||||||||||||
Net operating expenses | 486,538 | 270,472 | 216,066 | 79.9 | % | |||||||||||||||||||||
Operating (loss) income before gain on sale of real estate and loss from unconsolidated joint venture | (105,462) | 75,089 | (180,551) | (240.4) | % | |||||||||||||||||||||
Loss from unconsolidated joint venture | (120) | — | (120) | — | % | |||||||||||||||||||||
Gain on sale of real estate, net | 3,261 | 4 | 3,257 | 81,425.0 | % | |||||||||||||||||||||
Operating (loss) income | (102,321) | 75,093 | (177,414) | (236.3) | % | |||||||||||||||||||||
Interest expense | 90,608 | 83,166 | 7,442 | 8.9 | % | |||||||||||||||||||||
Change in fair value of net assets of consolidated VIEs from mortgage-backed pools | — | 1,316 | (1,316) | — | ||||||||||||||||||||||
Loss on extinguishment of debt | (6,674) | (84) | (6,590) | — | ||||||||||||||||||||||
Gain on land condemnation | 528 | 747 | (219) | (29.3) | % | |||||||||||||||||||||
Net loss | (199,075) | (6,094) | (192,981) | — | ||||||||||||||||||||||
Consolidated net loss (income) attributable to non-controlling interests | 3,515 | 138 | 3,377 | 2,447.1 | % | |||||||||||||||||||||
Net loss attributable to the Company | $ | (195,560) | $ | (5,956) | $ | (189,604) | — | |||||||||||||||||||
New Market Properties, LLC | Three-month periods ended September 30, | Change inc (dec) | ||||||||||||||||||||||||
2020 | 2019 | Amount | Percentage | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Rental revenues & other property revenues | $ | 26,707 | $ | 24,826 | $ | 1,881 | 7.6 | % | ||||||||||||||||||
Interest income on notes receivable | — | 444 | (444) | (100.0) | % | |||||||||||||||||||||
Total revenues | 26,707 | 25,270 | 1,437 | 5.7 | % | |||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Property operating and maintenance | 3,291 | $ | 2,730 | 561 | 20.5 | % | ||||||||||||||||||||
Property management fees | 528 | 824 | (296) | (35.9) | % | |||||||||||||||||||||
Real estate taxes and insurance | 3,653 | 3,511 | 142 | 4.0 | % | |||||||||||||||||||||
General and administrative | 794 | 261 | 533 | 204.2 | % | |||||||||||||||||||||
Equity compensation to directors and executives | 19 | 17 | 2 | 11.8 | % | |||||||||||||||||||||
Depreciation and amortization | 12,688 | 11,677 | 1,011 | 8.7 | % | |||||||||||||||||||||
Asset management and general and administrative | ||||||||||||||||||||||||||
expense fees to related parties | — | 1,892 | (1,892) | (100.0) | % | |||||||||||||||||||||
Total operating expenses | 20,973 | 20,912 | 61 | 0.3 | % | |||||||||||||||||||||
Waived asset management and general and administrative | ||||||||||||||||||||||||||
expense fees | — | (94) | 94 | (100.0) | % | |||||||||||||||||||||
Net operating expenses | 20,973 | 20,818 | 155 | 0.7 | % | |||||||||||||||||||||
Operating income before gain on sale of real estate and loss from unconsolidated joint venture | 5,734 | 4,452 | 1,282 | 28.8 | % | |||||||||||||||||||||
Loss from unconsolidated joint venture | (120) | — | (120) | — | % | |||||||||||||||||||||
Gain on sale of real estate, net | 3,261 | — | 3,261 | — | % | |||||||||||||||||||||
Operating income | 8,875 | 4,452 | 4,423 | 99.3 | % | |||||||||||||||||||||
Interest expense | 6,539 | 6,422 | 117 | 1.8 | % | |||||||||||||||||||||
Loss on extinguishment of debt | — | (16) | 16 | (100.0) | % | |||||||||||||||||||||
Gain on land condemnation | 49 | — | 49 | 100.0 | % | |||||||||||||||||||||
Net income (loss) | $ | 2,385 | $ | (1,986) | $ | 4,371 | (220.1) | % | ||||||||||||||||||
Consolidated net loss (income) attributable to non-controlling interests | $ | (43) | $ | (12) | (31) | 258.3 | % | |||||||||||||||||||
Net income (loss) attributable to the Company | $ | 2,428 | $ | (1,974) | 4,402 | (223.0) | % |
New Market Properties, LLC | Nine-month periods ended September 30, | Change inc (dec) | ||||||||||||||||||||||||
2020 | 2019 | Amount | Percentage | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Rental revenues & other property revenues | $ | 80,651 | $ | 68,894 | $ | 11,757 | 17.1 | % | ||||||||||||||||||
Interest income on notes receivable | 164 | 1,317 | (1,153) | (87.5) | % | |||||||||||||||||||||
Total revenues | 80,815 | 70,211 | 10,604 | 15.1 | % | |||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Property operating and maintenance | 9,831 | 7,409 | 2,422 | 32.7 | % | |||||||||||||||||||||
Property management fees | 1,921 | 2,345 | (424) | (18.1) | % | |||||||||||||||||||||
Real estate taxes and insurance | 11,685 | 10,041 | 1,644 | 16.4 | % | |||||||||||||||||||||
General and administrative | 2,680 | 577 | 2,103 | 364.5 | % | |||||||||||||||||||||
Equity compensation to directors and executives | 47 | 53 | (6) | (11.3) | % | |||||||||||||||||||||
Depreciation and amortization | 39,410 | 32,644 | 6,766 | 20.7 | % | |||||||||||||||||||||
Asset management and general and administrative | ||||||||||||||||||||||||||
expense fees to related parties | 720 | 5,274 | (4,554) | (86.3) | % | |||||||||||||||||||||
Total operating expenses | 66,294 | 58,343 | 7,951 | 13.6 | % | |||||||||||||||||||||
Waived asset management and general and administrative | ||||||||||||||||||||||||||
expense fees | (17) | (296) | 279 | (94.3) | % | |||||||||||||||||||||
Net operating expenses | 66,277 | 58,047 | 8,230 | 14.2 | % | |||||||||||||||||||||
Operating income before gain on sale of real estate and loss from unconsolidated joint venture | 14,538 | 12,164 | 2,374 | 19.5 | % | |||||||||||||||||||||
Loss from unconsolidated joint venture | (120) | — | (120) | — | % | |||||||||||||||||||||
Gain on sale of real estate, net | 3,261 | — | 3,261 | — | % | |||||||||||||||||||||
Operating income | 17,679 | 12,164 | 5,515 | 45.3 | % | |||||||||||||||||||||
Interest expense | 19,876 | 18,123 | 1,753 | 9.7 | % | |||||||||||||||||||||
Loss on extinguishment of debt | — | (68) | 68 | (100.0) | % | |||||||||||||||||||||
Gain on land condemnation | 528 | — | 528 | 100.0 | % | |||||||||||||||||||||
Net income (loss) | $ | (1,669) | $ | (6,027) | $ | 4,358 | (72.3) | % | ||||||||||||||||||
Consolidated net loss (income) attributable to non-controlling interests | $ | (82) | $ | (12) | (70) | 583.3 | % | |||||||||||||||||||
Net income (loss) attributable to the Company | $ | (1,587) | $ | (6,015) | 4,428 | (73.6) | % |
Acquisition date | Property | Location | Units | Beds | Leasable square feet | |||||||||||||||||||||||||||||||||
Residential Properties: | ||||||||||||||||||||||||||||||||||||||
3/27/2019 | Haven49 | Charlotte, NC | 322 | 887 | - | |||||||||||||||||||||||||||||||||
8/8/2019 | Artisan at Viera | Melbourne, FL | 259 | - | - | |||||||||||||||||||||||||||||||||
9/18/2019 | Five Oaks at Westchase | Tampa, FL | 218 | - | - | |||||||||||||||||||||||||||||||||
3/31/2020 | Horizon at Wiregrass | Tampa, FL | 392 | - | - | |||||||||||||||||||||||||||||||||
4/30/2020 | Parkside at the Beach | Panama City Beach, FL | 288 | - | - | |||||||||||||||||||||||||||||||||
New Market Properties: | ||||||||||||||||||||||||||||||||||||||
1/17/2019 | Gayton Crossing | Richmond, VA | - | - | 158,316 | |||||||||||||||||||||||||||||||||
5/28/2019 | Free State Shopping Center | Washington, D.C. | - | - | 264,152 | |||||||||||||||||||||||||||||||||
6/12/2019 | Disston Plaza | Tampa - St. Petersburg, FL | - | - | 129,150 | |||||||||||||||||||||||||||||||||
6/12/2019 | Polo Grounds Mall | West Palm Beach, FL | - | - | 130,285 | |||||||||||||||||||||||||||||||||
8/16/2019 | Fairfield Shopping Center (1) | Virginia Beach, VA | - | - | 231,829 | |||||||||||||||||||||||||||||||||
11/14/2019 | Berry Town Center | Orlando, FL | - | - | 99,441 | |||||||||||||||||||||||||||||||||
12/19/2019 | Hanover Shopping Center (1) | Wilmington, NC | - | - | 305,346 | |||||||||||||||||||||||||||||||||
1/29/2020 | Wakefield Crossing | Raleigh, NC | - | - | 75,927 | |||||||||||||||||||||||||||||||||
3/19/2020 | Midway Market | Dallas, TX | - | - | 85,599 | |||||||||||||||||||||||||||||||||
Preferred Office Properties: | ||||||||||||||||||||||||||||||||||||||
7/25/2019 | CAPTRUST Tower (1) | Raleigh, NC | - | - | 300,000 | |||||||||||||||||||||||||||||||||
7/31/2019 | 251 Armour | Atlanta, GA | - | - | 35,000 | |||||||||||||||||||||||||||||||||
12/20/2019 | Morrocroft Centre (1) | Charlotte, NC | - | - | 291,000 | |||||||||||||||||||||||||||||||||
1,479 | 887 | 2,106,045 |
Reconciliation of FFO Attributable to Common Stockholders and Unitholders, Core FFO and AFFO | |||||||||||||||||||||||
to Net (Loss) Income Attributable to Common Stockholders (A) | |||||||||||||||||||||||
Three months ended September 30, | |||||||||||||||||||||||
(In thousands, except per-share figures) | 2020 | 2019 | |||||||||||||||||||||
Net loss attributable to common stockholders (See note 1) | $ | (39,499) | $ | (31,529) | |||||||||||||||||||
Add: | Depreciation of real estate assets | 41,282 | 37,381 | ||||||||||||||||||||
Amortization of acquired intangible assets and deferred leasing costs | 9,978 | 8,386 | |||||||||||||||||||||
Net loss attributable to Class A Unitholders (See note 2) | (50) | (59) | |||||||||||||||||||||
Gain on sale of real estate | (3,261) | — | |||||||||||||||||||||
FFO attributable to common stockholders and unitholders | 8,450 | 14,179 | |||||||||||||||||||||
Aquisition and pursuit costs | 3 | — | |||||||||||||||||||||
Loan cost amortization on acquisition term notes and loan coordination fees (See note 3) | 505 | 511 | |||||||||||||||||||||
Payment of costs related to property refinancing | 509 | 170 | |||||||||||||||||||||
Internalization costs (See note 4) | 577 | 818 | |||||||||||||||||||||
Deemed dividends for redemptions of and non-cash dividends on preferred stock | 3,061 | 152 | |||||||||||||||||||||
Expenses incurred on the potential call of preferred stock (See note 5) | 46 | — | |||||||||||||||||||||
Expenses related to the COVID-19 global pandemic (See note 6) | 138 | — | |||||||||||||||||||||
Core FFO attributable to common stockholders and unitholders | 13,289 | 15,830 | |||||||||||||||||||||
Add: | Non-cash equity compensation to directors and executives | 582 | 305 | ||||||||||||||||||||
Noncash (income) expense for current expected credit losses (See note 7) | (761) | — | |||||||||||||||||||||
Amortization of loan closing costs (See note 8) | 1,288 | 1,168 | |||||||||||||||||||||
Depreciation/amortization of non-real estate assets | 621 | 472 | |||||||||||||||||||||
Net loan origination fees received (See note 9) | 415 | 148 | |||||||||||||||||||||
Deferred interest income received (See note 10) | 375 | — | |||||||||||||||||||||
Amortization of lease inducements (See note 11) | 448 | 435 | |||||||||||||||||||||
Less: | Amortization of purchase option termination revenues in excess of cash received (See note 12) | (421) | (1,283) | ||||||||||||||||||||
Non-cash loan interest income (See note 10) | (3,317) | (3,763) | |||||||||||||||||||||
Cash received for sale of K Program securities in excess of noncash revenues | — | (281) | |||||||||||||||||||||
Cash paid for loan closing costs | (106) | (29) | |||||||||||||||||||||
Amortization of acquired real estate intangible liabilities and SLR (See note 13) | (4,887) | (4,293) | |||||||||||||||||||||
Amortization of deferred revenues (See note 14) | (940) | (940) | |||||||||||||||||||||
Normally recurring capital expenditures (See note 15) | (2,983) | (2,379) | |||||||||||||||||||||
AFFO attributable to common stockholders and Unitholders | $ | 3,603 | $ | 5,390 | |||||||||||||||||||
Common Stock dividends and distributions to Unitholders declared: | |||||||||||||||||||||||
Common Stock dividends | $ | 8,780 | $ | 11,823 | |||||||||||||||||||
Distributions to Unitholders (See note 2) | 226 | 225 | |||||||||||||||||||||
Total | $ | 9,006 | $ | 12,048 | |||||||||||||||||||
Common Stock dividends and Unitholder distributions per share | $ | 0.1750 | $ | 0.2625 | |||||||||||||||||||
FFO per weighted average basic share of Common Stock and Unit outstanding | $ | 0.17 | $ | 0.31 | |||||||||||||||||||
Core FFO per weighted average basic share of Common Stock and Unit outstanding | $ | 0.26 | $ | 0.35 | |||||||||||||||||||
AFFO per weighted average basic share of Common Stock and Unit outstanding | $ | 0.07 | $ | 0.12 | |||||||||||||||||||
Weighted average shares of Common Stock and Units outstanding: (A) | |||||||||||||||||||||||
Basic: | |||||||||||||||||||||||
Common Stock | 49,689 | 44,703 | |||||||||||||||||||||
Class A Units | 742 | 868 | |||||||||||||||||||||
Common Stock and Class A Units | 50,431 | 45,571 | |||||||||||||||||||||
Diluted Common Stock and Class A Units (B) | 50,433 | 45,768 | |||||||||||||||||||||
Actual shares of Common Stock outstanding, including 548 and 20 unvested shares | |||||||||||||||||||||||
of restricted Common Stock at September 30, 2020 and 2019, respectively. | 50,449 | 45,355 | |||||||||||||||||||||
Actual Class A Units outstanding at September 30, 2020 and 2019, respectively. | 742 | 856 | |||||||||||||||||||||
Total | 51,191 | 46,211 | |||||||||||||||||||||
(A) Units and Unitholders refer to Class A Units in our Operating Partnership (as defined in note 2), or Class A Units, and holders of Class A Units, respectively. Unitholders include recipients of awards of Class B Units in our Operating Partnership, or Class B Units, for annual service which became vested and earned and automatically converted to Class A Units. Unitholders also include the entity that contributed the Wade Green grocery-anchored shopping center. The Class A Units collectively represent an approximate 1.47% weighted average non-controlling interest in the Operating Partnership for the three-month period ended September 30, 2020. | |||||||||||||||||||||||
(B) Since our AFFO results are positive for the periods reflected above, we are presenting recalculated diluted weighted average shares of Common Stock and Class A Units for these periods for purposes of this table, which includes the dilutive effect of common stock equivalents from grants of the Class B Units, warrants included in units of Series A Preferred Stock issued, as well as annual grants of restricted Common Stock and restricted stock units. The weighted average shares of Common Stock outstanding presented on the Consolidated Statements of Operations are the same for basic and diluted for any period for which we recorded a net loss available to common stockholders. |
Reconciliation of FFO Attributable to Common Stockholders and Unitholders, Core FFO and AFFO | |||||||||||||||||||||||
to Net (Loss) Income Attributable to Common Stockholders (A) | |||||||||||||||||||||||
Nine months ended September 30, | |||||||||||||||||||||||
(In thousands, except per-share figures) | 2020 | 2019 | |||||||||||||||||||||
Net loss attributable to common stockholders (See note 1) | $ | (300,270) | $ | (88,497) | |||||||||||||||||||
Add: | Depreciation of real estate assets | 122,053 | 109,408 | ||||||||||||||||||||
Amortization of acquired intangible assets and deferred leasing costs | 28,933 | 26,402 | |||||||||||||||||||||
Net loss attributable to Class A Unitholders (See note 2) | (3,393) | (138) | |||||||||||||||||||||
Gain on sale of real estate | (3,261) | — | |||||||||||||||||||||
FFO attributable to common stockholders and unitholders | (155,938) | 47,175 | |||||||||||||||||||||
Acquisition and pursuit costs | 381 | — | |||||||||||||||||||||
Loan cost amortization on acquisition term notes and loan coordination fees (See note 3) | 1,711 | 1,491 | |||||||||||||||||||||
Payment of costs related to property refinancing | 7,372 | 594 | |||||||||||||||||||||
Internalization costs (See note 4) | 179,828 | 1,143 | |||||||||||||||||||||
Deemed dividends for redemptions of and non-cash dividends on preferred stock | 6,377 | 371 | |||||||||||||||||||||
Expenses incurred on the potential call of preferred stock (See note 5) | 46 | — | |||||||||||||||||||||
Expenses related to the COVID-19 global pandemic (See note 6) | 586 | — | |||||||||||||||||||||
Earnest money forfeited by prospective asset purchaser | (2,750) | — | |||||||||||||||||||||
Core FFO attributable to common stockholders and unitholders | 37,613 | 50,774 | |||||||||||||||||||||
Add: | Non-cash equity compensation to directors and executives | 1,058 | 922 | ||||||||||||||||||||
Noncash (income) expense for current expected credit losses (See note 7) | 3,647 | — | |||||||||||||||||||||
Amortization of loan closing costs (See note 8) | 3,631 | 3,458 | |||||||||||||||||||||
Depreciation/amortization of non-real estate assets | 1,793 | 1,381 | |||||||||||||||||||||
Net loan origination fees received (See note 9) | 882 | 674 | |||||||||||||||||||||
Deferred interest income received (See note 10) | 8,652 | 5,078 | |||||||||||||||||||||
Amortization of lease inducements (See note 11) | 1,334 | 1,295 | |||||||||||||||||||||
Amortization of purchase option termination revenues in excess of cash received (See note 12) | (96) | (2,370) | |||||||||||||||||||||
Non-operating miscellaneous revenues | 2,750 | — | |||||||||||||||||||||
Less: | Non-cash loan interest income (See note 10) | (9,445) | (10,745) | ||||||||||||||||||||
Non-cash revenues from mortgage-backed securities | — | (696) | |||||||||||||||||||||
Cash paid for loan closing costs | (106) | (37) | |||||||||||||||||||||
Amortization of acquired real estate intangible liabilities and SLR (See note 13) | (13,684) | (12,375) | |||||||||||||||||||||
Amortization of deferred revenues (See note 14) | (2,821) | (2,821) | |||||||||||||||||||||
Normally recurring capital expenditures (See note 15) | (6,525) | (5,122) | |||||||||||||||||||||
AFFO attributable to common stockholders and Unitholders | $ | 28,683 | $ | 29,416 | |||||||||||||||||||
Common Stock dividends and distributions to Unitholders declared: | |||||||||||||||||||||||
Common Stock dividends | 29,895 | 34,599 | |||||||||||||||||||||
Distributions to Unitholders (See note 2) | 559 | 683 | |||||||||||||||||||||
Total | 30,454 | 35,282 | |||||||||||||||||||||
Common Stock dividends and Unitholder distributions per share | $ | 0.6125 | $ | 0.785 | |||||||||||||||||||
FFO per weighted average basic share of Common Stock and Unit outstanding | $ | (3.17) | $ | 1.06 | |||||||||||||||||||
Core FFO per weighted average basic share of Common Stock and Unit outstanding | $ | 0.77 | $ | 1.14 | |||||||||||||||||||
AFFO per weighted average basic share of Common Stock and Unit outstanding | $ | 0.58 | $ | 0.66 | |||||||||||||||||||
Weighted average shares of Common Stock and Units outstanding: (A) | |||||||||||||||||||||||
Basic: | |||||||||||||||||||||||
Common Stock | 48,351 | 43,703 | |||||||||||||||||||||
Class A Units | 776 | 875 | |||||||||||||||||||||
Common Stock and Class A Units | 49,127 | 44,578 | |||||||||||||||||||||
Diluted Common Stock and Class A Units (B) | 49,144 | 45,235 | |||||||||||||||||||||
Actual shares of Common Stock outstanding, including 548 and 20 unvested shares | |||||||||||||||||||||||
of restricted Common Stock at September 30, 2020 and 2019, respectively. | 50,449 | 45,355 | |||||||||||||||||||||
Actual Class A Units outstanding at September 30, 2020 and 2019, respectively. | 742 | 856 | |||||||||||||||||||||
Total | 51,191 | 46,211 | |||||||||||||||||||||
(A) Units and Unitholders refer to Class A Units in our Operating Partnership (as defined in note 2), or Class A Units, and holders of Class A Units, respectively. Unitholders include recipients of awards of Class B Units in our Operating Partnership, or Class B Units, for annual service which became vested and earned and automatically converted to Class A Units. Unitholders also include the entity that contributed the Wade Green grocery-anchored shopping center. The Class A Units collectively represent an approximate 1.58% weighted average non-controlling interest in the Operating Partnership for the nine-month period ended September 30, 2020. | |||||||||||||||||||||||
(B) Since our AFFO results are positive for the periods reflected above, we are presenting recalculated diluted weighted average shares of Common Stock and Class A Units for these periods for purposes of this table, which includes the dilutive effect of common stock equivalents from grants of the Class B Units, warrants included in units of Series A Preferred Stock issued, as well as annual grants of restricted Common Stock and restricted stock units. The weighted average shares of Common Stock outstanding presented on the Consolidated Statements of Operations are the same for basic and diluted for any period for which we recorded a net loss available to common stockholders. |
(In thousands, except per-unit amounts) | Capital Expenditures | ||||||||||||||||||||||||||||||||||
Recurring | Non-recurring | Total | |||||||||||||||||||||||||||||||||
Amount | Per Unit | Amount | Per Unit | Amount | Per Unit | ||||||||||||||||||||||||||||||
Appliances | $ | 552 | $ | 51.77 | $ | — | $ | — | $ | 552 | $ | 51.77 | |||||||||||||||||||||||
Carpets | 1,246 | 116.78 | — | — | 1,246 | 116.78 | |||||||||||||||||||||||||||||
Wood flooring / vinyl | 89 | 8.36 | 368 | 34.56 | 457 | 42.92 | |||||||||||||||||||||||||||||
Blinds and ceiling fans | 158 | 14.79 | — | — | 158 | 14.79 | |||||||||||||||||||||||||||||
Fire safety | — | — | 411 | 38.57 | 411 | 38.57 | |||||||||||||||||||||||||||||
Furnace, air (HVAC) | 482 | 45.16 | — | — | 482 | 45.16 | |||||||||||||||||||||||||||||
Computers, equipment, misc. | 94 | 8.78 | 181 | 16.93 | 275 | 25.71 | |||||||||||||||||||||||||||||
Elevators | — | — | 75 | 7.00 | 75 | 7.00 | |||||||||||||||||||||||||||||
Exterior painting | — | — | 681 | 63.80 | 681 | 63.80 | |||||||||||||||||||||||||||||
Leasing office / common amenities | 78 | 7.36 | 670 | 62.80 | 748 | 70.16 | |||||||||||||||||||||||||||||
Major structural | — | — | 1,753 | 164.31 | 1,753 | 164.31 | |||||||||||||||||||||||||||||
Cabinets & countertops and unit upgrades | — | — | 770 | 72.21 | 770 | 72.21 | |||||||||||||||||||||||||||||
Landscaping & fencing | — | — | 310 | 29.07 | 310 | 29.07 | |||||||||||||||||||||||||||||
Parking lot | — | — | 84 | 7.90 | 84 | 7.90 | |||||||||||||||||||||||||||||
Signage and sanitation | — | — | 100 | 9.35 | 100 | 9.35 | |||||||||||||||||||||||||||||
$ | 2,699 | $ | 253.00 | $ | 5,403 | $ | 506.50 | $ | 8,102 | $ | 759.50 |
(In thousands, except per-unit amounts) | Capital Expenditures | ||||||||||||||||||||||||||||||||||
Recurring | Non-recurring | Total | |||||||||||||||||||||||||||||||||
Amount | Per Bed | Amount | Per Bed | Amount | Per Bed | ||||||||||||||||||||||||||||||
Appliances | $ | 93 | $ | 15.31 | $ | — | $ | — | $ | 93 | $ | 15.31 | |||||||||||||||||||||||
Carpets | 207 | 34.00 | — | — | 207 | 34.00 | |||||||||||||||||||||||||||||
Wood flooring / vinyl | 9 | 1.50 | — | — | 9 | 1.50 | |||||||||||||||||||||||||||||
Blinds and ceiling fans | 20 | 3.25 | — | — | 20 | 3.25 | |||||||||||||||||||||||||||||
Fire safety | — | — | 68 | 11.13 | 68 | 11.13 | |||||||||||||||||||||||||||||
Furnace, air (HVAC) | 148 | 24.29 | — | — | 148 | 24.29 | |||||||||||||||||||||||||||||
Computers, equipment, misc. | 46 | 7.59 | 79 | 12.94 | 125 | 20.53 | |||||||||||||||||||||||||||||
Elevators | — | — | 15 | 2.51 | 15 | 2.51 | |||||||||||||||||||||||||||||
Exterior painting | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Leasing office / common amenities | 77 | 12.56 | 118 | 19.41 | 195 | 31.97 | |||||||||||||||||||||||||||||
Major structural | — | — | 760 | 124.64 | 760 | 124.64 | |||||||||||||||||||||||||||||
Cabinets & countertops and unit upgrades | — | — | 11 | 1.78 | 11 | 1.78 | |||||||||||||||||||||||||||||
Landscaping & fencing | — | — | 53 | 8.77 | 53 | 8.77 | |||||||||||||||||||||||||||||
Parking lot | — | — | 5 | 0.88 | 5 | 0.88 | |||||||||||||||||||||||||||||
Signage and sanitation | — | — | 59 | 9.62 | 59 | 9.62 | |||||||||||||||||||||||||||||
Unit furniture | 394 | 64.63 | — | — | 394 | 64.63 | |||||||||||||||||||||||||||||
$ | 994 | $ | 163.13 | $ | 1,168 | $ | 191.68 | $ | 2,162 | $ | 354.81 |
(In thousands) | Total | Less than one year | 1-3 years | 3-5 years | More than five years | |||||||||||||||||||||||||||
Principal payments: | ||||||||||||||||||||||||||||||||
Mortgage debt | $ | 2,814,169 | $ | 106,922 | $ | 280,773 | $ | 531,271 | $ | 1,895,203 | ||||||||||||||||||||||
Line of credit | 33,000 | 33,000 | — | — | — | |||||||||||||||||||||||||||
Total principal | $ | 2,847,169 | $ | 139,922 | $ | 280,773 | $ | 531,271 | $ | 1,895,203 | ||||||||||||||||||||||
Interest payments: | ||||||||||||||||||||||||||||||||
Mortgage debt | 837,570 | 107,107 | 196,677 | 182,397 | 351,389 | |||||||||||||||||||||||||||
Line of credit | 32 | 32 | — | — | — | |||||||||||||||||||||||||||
Total interest | $ | 837,602 | $ | 107,139 | $ | 196,677 | $ | 182,397 | $ | 351,389 |
Balance (in thousands) | Percentage of total mortgage indebtedness | LIBOR Cap | All-in Cap | ||||||||||||||||||||
Avenues at Creekside | $ | 38,251 | 5.00 | % | 6.6 | % | |||||||||||||||||
The Tradition | 30,000 | 3.25 | % | 7.0 | % | ||||||||||||||||||
The Bloc | 28,966 | 3.25 | % | 6.8 | % | ||||||||||||||||||
Summit Crossing II | 20,700 | 2.47 | % | 5.3 | % | ||||||||||||||||||
Total capped floating-rate debt | 117,917 | 4.2 | % | ||||||||||||||||||||
Champions Village | 27,400 | ||||||||||||||||||||||
Fairfield Shopping Center | 19,750 | ||||||||||||||||||||||
Total uncapped floating-rate debt | 47,150 | 1.7 | % | ||||||||||||||||||||
Total floating-rate debt | $ | 165,067 | 5.9 | % |
EXHIBIT INDEX | ||||||||
Exhibit Number | Description | |||||||
10.1 | + | |||||||
10.2 | + | |||||||
10.3 | + | |||||||
10.4 | + | |||||||
10.5 | * | |||||||
10.6 | * | |||||||
10.7 | * | |||||||
31.1 | * | |||||||
31.2 | * | |||||||
32.1 | * | |||||||
32.2 | * | |||||||
101.INS | * | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||||
101.SCH | * | Inline XBRL Taxonomy Extension Schema Document | ||||||
101.CAL | * | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||||
101.DEF | * | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||||
101.LAB | * | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||||
101.PRE | * | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||||
104 | * | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | ||||||
* | Filed or Furnished herewith | |||||||
+ | Management contract or compensatory plan, contract or arrangement |
SIGNATURES | |||||||||||||||||||||||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. | |||||||||||||||||||||||
PREFERRED APARTMENT COMMUNITIES, INC. | |||||||||||||||||||||||
Date: November 9, 2020 | By: | /s/ Joel T. Murphy | |||||||||||||||||||||
Joel T. Murphy | |||||||||||||||||||||||
Chief Executive Officer | |||||||||||||||||||||||
(Principal Executive Officer) | |||||||||||||||||||||||
Date: November 9, 2020 | By: | /s/ John A. Isakson | |||||||||||||||||||||
John A. Isakson | |||||||||||||||||||||||
Chief Financial Officer | |||||||||||||||||||||||
(Principal Financial Officer) |
SELLER: |
Date: November 9, 2020 | /s/ Joel T. Murphy | ||||
Joel T. Murphy | |||||
Chief Executive Officer |
Date: November 9, 2020 | /s/ John A. Isakson | ||||
John A. Isakson | |||||
Chief Financial Officer |
Date: November 9, 2020 | /s/ Joel T. Murphy | |||||||
Joel T. Murphy | ||||||||
Chief Executive Officer |
Date: November 9, 2020 | /s/ John A. Isakson | |||||||
John A. Isakson | ||||||||
Chief Financial Officer |
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Statements of Operations - USD ($) shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Revenues: | ||||
Rental and other property revenues | $ 114,831,000 | $ 105,049,000 | $ 338,271,000 | $ 298,569,000 |
Interest income on loan and note receivable | 10,649,000 | 12,608,000 | 34,495,000 | 35,989,000 |
Revenue from Related Parties | 609,000 | 2,546,000 | 3,750,000 | 9,980,000 |
miscellaneous revenues | 608,000 | 0 | 4,560,000 | 1,023,000 |
Revenues | 126,697,000 | 120,203,000 | 381,076,000 | 345,561,000 |
Operating expenses: | ||||
Property operating and maintenance | 19,278,000 | 16,493,000 | 52,919,000 | 43,236,000 |
Payments to Employees | 6,054,000 | 5,360,000 | 16,965,000 | 14,845,000 |
Management Fee Expense | 983,000 | 3,534,000 | 4,028,000 | 10,174,000 |
Provision for Other Credit Losses | (152,000) | 0 | 5,463,000 | 0 |
Real Estate Taxes and Insurance | 16,078,000 | 14,474,000 | 48,109,000 | 42,646,000 |
Real estate taxes | 0 | 0 | ||
General and administrative | 7,898,000 | 1,364,000 | 23,109,000 | 4,171,000 |
Employee Benefits and Share-based Compensation | 582,000 | 305,000 | 1,058,000 | 922,000 |
Depreciation, Depletion and Amortization | 51,794,000 | 46,239,000 | 153,096,000 | 137,191,000 |
Asset management and G&A | 0 | 8,611,000 | 3,099,000 | 24,649,000 |
Share-based Compensation | (152,000) | 0 | 5,463,000 | 0 |
Depreciation and amortization | 51,794,000 | 46,239,000 | 153,096,000 | 137,191,000 |
Allowance for Loan and Lease Losses, Loans Acquired | 0 | (5,530,000) | (1,963,000) | (16,144,000) |
Other Expenses | 577,000 | 818,000 | 179,828,000 | 1,143,000 |
Total operating expenses | 103,092,000 | 97,198,000 | 487,674,000 | 278,977,000 |
manager's fees deferred | 0 | 3,081,000 | 1,136,000 | 8,505,000 |
Operating Expenses | 103,092,000 | 94,117,000 | 486,538,000 | 270,472,000 |
Operating Income (Loss) | 23,605,000 | 26,086,000 | (105,462,000) | 75,089,000 |
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | (120,000) | 0 | (120,000) | 0 |
Gain on Sale of Investments | 3,261,000 | 0 | 3,261,000 | 4,000 |
Interest Expense | 29,879,000 | 28,799,000 | 90,608,000 | 83,166,000 |
change in fair value of variable interest entities | 0 | 591,000 | 0 | 1,316,000 |
Gain (Loss) on Extinguishment of Debt | 518,000 | 15,000 | 6,674,000 | 84,000 |
gain on sale of financial instruments | 49,000 | 0 | 528,000 | 747,000 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (3,602,000) | (2,137,000) | (199,075,000) | (6,094,000) |
Net Income (Loss) Attributable to Noncontrolling Interest | 108,000 | 59,000 | 3,515,000 | 138,000 |
Gains (Losses) on Sales of Investment Real Estate | 0 | 0 | 0 | 4,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 26,746,000 | 26,086,000 | (102,321,000) | 75,093,000 |
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | (3,602,000) | (2,137,000) | (199,075,000) | (6,094,000) |
Net loss attributable to the Company | (3,494,000) | (2,078,000) | (195,560,000) | (5,956,000) |
Preferred Stock Dividends, Income Statement Impact | 35,909,000 | 29,446,000 | 104,601,000 | 82,527,000 |
net income attributable to unvested restricted stockholders | (96,000) | (5,000) | (109,000) | (14,000) |
Deemed noncash dividend | 499,000 | 358,000 | ||
Net Income (Loss) Available to Common Stockholders, Basic | $ (39,499,000) | $ (31,529,000) | $ (300,270,000) | $ (88,497,000) |
Income (Loss) from Continuing Operations, Per Basic and Diluted Share | $ (0.79) | $ (0.71) | $ (6.21) | $ (2.02) |
Weighted Average Number of Shares Outstanding, Basic | 49,689 | 44,703 | 48,351 | 43,703 |
Dividends, Common Stock, Cash | $ 8,876,000 | $ 11,823,000 | $ 29,991,000 | $ 34,599,000 |
Common Stock, Dividends, Per Share, Declared | $ 0.175 | $ 0.2625 | $ 0.6125 | $ 0.785 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $ 0 | $ 0 | $ 0 | $ 747,000 |
Statements of Operations (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Income Statement Parentheticals [Abstract] | ||||
property management fees paid to related party | $ 0 | $ 2,565 | $ 894 | $ 7,534 |
Related Party Transaction, Property Salary And Benefits Reimbursement Fees | $ 0 | $ 4,681 | $ 1,430 | $ 12,973 |
Statements of Equity and Accumulated Deficit - USD ($) |
Total |
Series A Preferred Stock [Member] |
Series A1/M1 Preferred Stock |
Common Stock [Member] |
Common Stock [Member]
Series A Preferred Stock [Member]
|
Common Stock [Member]
Series M Preferred Stock [Member]
|
Common Stock [Member]
Series A1/M1 Preferred Stock
|
Additional Paid-in Capital [Member] |
Additional Paid-in Capital [Member]
Series A Preferred Stock [Member]
|
Additional Paid-in Capital [Member]
Series A1/M1 Preferred Stock
|
Accumulated Deficit [Member] |
Accumulated Deficit [Member]
Series A Preferred Stock [Member]
|
Accumulated Deficit [Member]
Series A1/M1 Preferred Stock
|
Total Stockholders' Equity [Member] |
Total Stockholders' Equity [Member]
Series A Preferred Stock [Member]
|
Total Stockholders' Equity [Member]
Series A1/M1 Preferred Stock
|
Noncontrolling Interest [Member] |
Noncontrolling Interest [Member]
Series A Preferred Stock [Member]
|
Noncontrolling Interest [Member]
Series A1/M1 Preferred Stock
|
Preferred Stock [Member] |
Preferred Stock [Member]
Series A Preferred Stock [Member]
|
Preferred Stock [Member]
Series M Preferred Stock [Member]
|
Preferred Stock [Member]
Series A1/M1 Preferred Stock
|
ClassBUnits [Member] |
ClassBUnits [Member]
Common Stock [Member]
|
ClassBUnits [Member]
Additional Paid-in Capital [Member]
|
ClassBUnits [Member]
Accumulated Deficit [Member]
|
ClassBUnits [Member]
Total Stockholders' Equity [Member]
|
ClassBUnits [Member]
Noncontrolling Interest [Member]
|
ClassBUnits [Member]
Preferred Stock [Member]
Series A Preferred Stock [Member]
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 46,765,000 | $ 369,420,000 | $ 0 | $ 0 | $ 46,765,000 | $ 369,416,000 | $ 0 | $ 0 | $ 46,765,000 | $ 369,420,000 | $ 4,000 | $ 0 | ||||||||||||||||||
Proceeds from Issuance of Common Stock | 0 | |||||||||||||||||||||||||||||
Balance at Dec. 31, 2018 | 1,609,385,000 | $ 418,000 | 1,607,712,000 | 0 | 1,608,146,000 | $ 1,239,000 | 16,000 | |||||||||||||||||||||||
Stock Redeemed or Called During Period, Value | (7,988,000) | 26,000 | (8,014,000) | 0 | (7,988,000) | 0 | 0 | |||||||||||||||||||||||
exercise of warrants | 10,074,000 | 8,000 | 10,066,000 | 0 | 10,074,000 | 0 | 0 | |||||||||||||||||||||||
Stock Issued During Period, Value, Conversion of Units | 0 | 1,000 | 676,000 | 0 | 677,000 | (677,000) | 0 | |||||||||||||||||||||||
amortization of Class A Unit awards | $ 451,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 451,000 | $ 0 | |||||||||||||||||||||||
Syndication and offering costs | (43,795,000) | 0 | (43,795,000) | 0 | (43,795,000) | 0 | 0 | |||||||||||||||||||||||
Stock Issued During Period, Value, Share-based Compensation, Gross | 471,000 | 0 | 471,000 | 0 | 471,000 | 0 | 0 | |||||||||||||||||||||||
Dividends, Common Stock, Cash | (34,599,000) | 0 | (34,599,000) | 0 | (34,599,000) | 0 | $ 0 | |||||||||||||||||||||||
Balance at Sep. 30, 2019 | 1,862,930,000 | 453,000 | 1,861,446,000 | 0 | 1,861,919,000 | 1,011,000 | 20,000 | |||||||||||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (6,094,000) | 0 | 0 | (5,956,000) | (5,956,000) | (138,000) | 0 | |||||||||||||||||||||||
Other Ownership Interests, Contributed Capital | $ 2,050,000 | $ 0 | $ 0 | $ 2,050,000 | $ 0 | |||||||||||||||||||||||||
non-controlling interest equity adjustment | 0 | 0 | 1,231,000 | 0 | 1,231,000 | (1,231,000) | 0 | |||||||||||||||||||||||
Payments to Noncontrolling Interests | (683,000) | 0 | 0 | 0 | 0 | (683,000) | 0 | |||||||||||||||||||||||
Dividends, Preferred Stock | (3,176,000) | (79,351,000) | 0 | (3,405,000) | (85,078,000) | 229,000 | 5,727,000 | (3,176,000) | (79,351,000) | 0 | $ 0 | 0 | 0 | |||||||||||||||||
Proceeds from Issuance of Preferred Stock and Preference Stock | 17,156,000 | 116,828,000 | 0 | $ 0 | 17,156,000 | 116,827,000 | 0 | 0 | 17,156,000 | 116,828,000 | 1,000 | 0 | ||||||||||||||||||
Balance at Jun. 30, 2019 | 1,784,170,000 | 442,000 | 1,784,197,000 | 0 | 1,784,658,000 | (488,000) | 19,000 | |||||||||||||||||||||||
Stock Redeemed or Called During Period, Value | (2,877,000) | 9,000 | (2,886,000) | 0 | (2,877,000) | 0 | 0 | |||||||||||||||||||||||
exercise of warrants | 2,482,000 | 2,000 | 2,480,000 | 0 | 2,482,000 | 0 | 0 | |||||||||||||||||||||||
Stock Issued During Period, Value, Conversion of Units | 0 | 0 | 112,000 | 0 | 112,000 | (112,000) | 0 | |||||||||||||||||||||||
amortization of Class A Unit awards | 150,000 | 0 | 0 | 0 | 0 | 150,000 | 0 | |||||||||||||||||||||||
Syndication and offering costs | (13,553,000) | 0 | (13,553,000) | 0 | (13,553,000) | 0 | 0 | |||||||||||||||||||||||
Stock Issued During Period, Value, Share-based Compensation, Gross | 155,000 | 0 | 155,000 | 0 | 155,000 | 0 | 0 | |||||||||||||||||||||||
Dividends, Common Stock, Cash | (11,823,000) | 0 | (11,823,000) | 0 | (11,823,000) | 0 | 0 | |||||||||||||||||||||||
Balance at Sep. 30, 2019 | 1,862,930,000 | 453,000 | 1,861,446,000 | 0 | 1,861,919,000 | 1,011,000 | 20,000 | |||||||||||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (2,137,000) | 0 | 0 | (2,078,000) | (2,078,000) | (59,000) | 0 | |||||||||||||||||||||||
Other Ownership Interests, Contributed Capital | 2,050,000 | 0 | 0 | 2,050,000 | 0 | |||||||||||||||||||||||||
non-controlling interest equity adjustment | 0 | 0 | 305,000 | 0 | 305,000 | (305,000) | 0 | |||||||||||||||||||||||
Payments to Noncontrolling Interests | (225,000) | 0 | 0 | 0 | 0 | (225,000) | 0 | |||||||||||||||||||||||
Dividends, Preferred Stock | (1,335,000) | (28,111,000) | 0 | (1,430,000) | (30,094,000) | 95,000 | 1,983,000 | (1,335,000) | (28,111,000) | 0 | 0 | 0 | 0 | |||||||||||||||||
Proceeds from Issuance of Preferred Stock and Preference Stock | 64,484,000 | 110,947,000 | 0 | 0 | 64,483,000 | $ 110,946,000 | 64,484,000 | 110,947,000 | 1,000 | 1,000 | ||||||||||||||||||||
Proceeds from Issuance of Common Stock | 4,522,000 | |||||||||||||||||||||||||||||
Balance at Dec. 31, 2019 | 1,934,116,000 | 464,000 | 1,938,057,000 | (7,244,000) | 1,931,298,000 | 2,818,000 | 21,000 | |||||||||||||||||||||||
Balance (Accounting Standards Update 2016-13) at Dec. 31, 2019 | (7,414,000) | (7,414,000) | (7,414,000) | |||||||||||||||||||||||||||
Stock Redeemed or Called During Period, Value | (82,032,000) | 28,000 | (82,058,000) | 0 | (82,032,000) | 0 | (2,000) | |||||||||||||||||||||||
exercise of warrants | 8,000 | 0 | 8,000 | 0 | 8,000 | 0 | 0 | |||||||||||||||||||||||
Stock Issued During Period, Value, Conversion of Units | 0 | 1,000 | 1,381,000 | 0 | 1,382,000 | (1,382,000) | 0 | |||||||||||||||||||||||
amortization of Class A Unit awards | 194,000 | 0 | 0 | 0 | 0 | 194,000 | 0 | |||||||||||||||||||||||
Syndication and offering costs | (20,775,000) | 0 | (20,775,000) | 0 | (20,775,000) | 0 | 0 | |||||||||||||||||||||||
Stock Issued During Period, Value, Share-based Compensation, Gross | 864,000 | 0 | 864,000 | 0 | 864,000 | 0 | 0 | |||||||||||||||||||||||
Dividends, Common Stock, Cash | (29,991,000) | 0 | (29,991,000) | 0 | (29,991,000) | 0 | 0 | |||||||||||||||||||||||
Balance at Sep. 30, 2020 | 1,670,858,000 | 499,000 | 1,882,149,000 | (210,218,000) | 1,672,451,000 | (1,593,000) | 21,000 | |||||||||||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (199,075,000) | 0 | 0 | (195,560,000) | (195,560,000) | (3,515,000) | 0 | |||||||||||||||||||||||
Other Ownership Interests, Contributed Capital | 103,000 | 0 | 0 | 103,000 | 0 | |||||||||||||||||||||||||
non-controlling interest equity adjustment | 0 | 0 | (773,000) | 0 | (773,000) | 773,000 | 0 | |||||||||||||||||||||||
Payments to Noncontrolling Interests | (119,000) | 0 | 0 | 0 | 0 | (119,000) | 0 | |||||||||||||||||||||||
us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | 465,000 | 0 | 0 | 0 | 0 | 465,000 | 0 | |||||||||||||||||||||||
Dividends, Preferred Stock | (4,903,000) | (97,272,000) | (2,426,000) | 0 | 0 | (4,903,000) | (97,272,000) | (2,426,000) | 0 | 0 | $ 0 | (4,903,000) | (97,272,000) | (2,426,000) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Proceeds from Issuance of Preferred Stock and Preference Stock | 42,352,000 | 0 | 42,352,000 | 42,352,000 | 0 | |||||||||||||||||||||||||
Proceeds from Issuance of Common Stock | 4,614,000 | 6,000 | 4,608,000 | 4,614,000 | 0 | |||||||||||||||||||||||||
Balance at Jun. 30, 2020 | 1,709,996,000 | 493,000 | 1,917,212,000 | (206,724,000) | 1,711,002,000 | (1,006,000) | 21,000 | |||||||||||||||||||||||
Stock Redeemed or Called During Period, Value | (33,823,000) | 0 | (33,823,000) | 0 | (33,823,000) | 0 | ||||||||||||||||||||||||
Stock Issued During Period, Value, Conversion of Units | 0 | 0 | (2,000) | 0 | (2,000) | 2,000 | 0 | |||||||||||||||||||||||
amortization of Class A Unit awards | $ 70,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 70,000 | $ 0 | |||||||||||||||||||||||
Syndication and offering costs | 4,127,000 | 4,127,000 | 4,127,000 | |||||||||||||||||||||||||||
Stock Issued During Period, Value, Share-based Compensation, Gross | 512,000 | 0 | 512,000 | 0 | 512,000 | 0 | 0 | |||||||||||||||||||||||
Dividends, Common Stock, Cash | (8,876,000) | 0 | (8,876,000) | 0 | (8,876,000) | 0 | $ 0 | |||||||||||||||||||||||
Balance at Sep. 30, 2020 | 1,670,858,000 | 499,000 | 1,882,149,000 | (210,218,000) | 1,672,451,000 | (1,593,000) | 21,000 | |||||||||||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (3,602,000) | 0 | 0 | (3,494,000) | (3,494,000) | (108,000) | 0 | |||||||||||||||||||||||
Other Ownership Interests, Contributed Capital | (98,000) | 0 | 0 | (98,000) | 0 | |||||||||||||||||||||||||
non-controlling interest equity adjustment | 0 | 0 | 202,000 | 0 | 202,000 | (202,000) | 0 | |||||||||||||||||||||||
Payments to Noncontrolling Interests | (119,000) | 0 | 0 | 0 | 0 | (119,000) | 0 | |||||||||||||||||||||||
us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | 132,000 | $ 0 | 0 | 0 | 0 | 132,000 | 0 | |||||||||||||||||||||||
Dividends, Preferred Stock | $ (1,547,000) | $ (32,964,000) | $ (1,398,000) | $ 0 | $ 0 | $ (1,547,000) | $ (32,964,000) | $ (1,398,000) | $ 0 | $ 0 | $ 0 | $ (1,547,000) | $ (32,964,000) | $ (1,398,000) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Statements of Equity and Accumulated Deficit Parenthetical - $ / shares |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
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Common Stock, Dividends, Per Share, Declared | $ 0.175 | $ 0.2625 | $ 0.6125 | $ 0.785 |
Series A Preferred Stock [Member] | ||||
Preferred Stock, Dividends Per Share, Declared | 5.00 | 5.00 | 5.00 | 5.00 |
Series A1 Preferred Stock | ||||
Preferred Stock, Dividends Per Share, Declared | 5.00 | 5.00 | ||
Minimum [Member] | Series M Preferred Stock [Member] | ||||
Preferred Stock, Dividends Per Share, Declared | 4.79 | 4.79 | 4.79 | 4.79 |
Minimum [Member] | Series M1 Preferred Stock | ||||
Preferred Stock, Dividends Per Share, Declared | 5.08 | 5.08 | ||
Maximum [Member] | Series M Preferred Stock [Member] | ||||
Preferred Stock, Dividends Per Share, Declared | 6.25 | $ 6.25 | 6.25 | $ 6.25 |
Maximum [Member] | Series M1 Preferred Stock | ||||
Preferred Stock, Dividends Per Share, Declared | $ 5.92 | $ 5.92 |
Pro Forma Financial Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
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Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Revenues | $ 126,697 | $ 120,203 | $ 381,076 | $ 345,561 |
Quarterly Financial Data (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
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Income Statement [Abstract] | ||||
Revenues | $ 126,697 | $ 120,203 | $ 381,076 | $ 345,561 |
Operating Income (Loss) | 23,605 | 26,086 | (105,462) | 75,089 |
Net Income (Loss) Attributable to Parent | (3,494) | (2,078) | (195,560) | (5,956) |
Net Income (Loss) Available to Common Stockholders, Basic | $ (39,499) | $ (31,529) | $ (300,270) | $ (88,497) |
Organization |
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Organization [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Organization and Basis of Presentation Preferred Apartment Communities, Inc. (NYSE: APTS) is a real estate investment trust engaged primarily in the ownership and operation of Class A multifamily properties, with select investments in grocery anchored shopping centers, Class A office buildings, and student housing properties. Preferred Apartment Communities’ investment objective is to generate attractive, stable returns for stockholders by investing in income-producing properties and acquiring or originating real estate loans. As of September 30, 2020, the Company owned or was invested in 125 properties in 15 states, predominantly in the Southeast region of the United States. Preferred Apartment Communities, Inc. has elected to be taxed as a real estate investment trust under the Internal Revenue Code of 1986, as amended, commencing with its tax year ended December 31, 2011. The Company was externally managed and advised by Preferred Apartment Advisors, LLC, or its Former Manager, a Delaware limited liability company and related party until the Company acquired the Former Manager and NMP Advisors, LLC, or the Sub-Manager, or the Internalization, on January 31, 2020. Prior to the Internalization transaction, according to the Sixth Amended and Restated Management Agreement, effective as of June 3, 2016, among the Company, the Operating Partnership (as defined below), and the Former Manager, or the Former Management Agreement, the Company paid acquisition fees and other fees and expense reimbursements to the Former Manager. Following the Internalization transaction that closed on January 31, 2020, the Company no longer pays any fees or expense reimbursements to its Former Manager or Sub-Manager (see Note 6). As of September 30, 2020, the Company had 49,900,555 shares of common stock, par value $0.01 per share, or Common Stock, issued and outstanding and was the approximate 98.5% owner of the Preferred Apartment Communities Operating Partnership, L.P., the Company's operating partnership, at that date. The number of partnership units not owned by the Company totaled 742,413 at September 30, 2020 and represented Class A OP Units of the Operating Partnership, or Class A OP Units. The Class A OP Units are convertible at any time at the option of the holder into the Operating Partnership's choice of either cash or Common Stock. In the case of cash, the value is determined based upon the trailing 20-day volume weighted average price of the Company's Common Stock. The Company controlled the Operating Partnership through its sole general partner interest and conducted substantially all of its business through the Operating Partnership until January 31, 2020. Beginning February 1, 2020, the Company conducts substantially all of its business through PAC Carveout, LLC, or Carveout, a wholly-owned subsidiary of the Operating Partnership. Carveout intends to elect to be taxed as a real estate investment trust under the Internal Revenue Code of 1986, as amended, commencing with its tax year ended December 31, 2020. The Company has determined the Operating Partnership is a variable interest entity, or VIE, of which the Company is the primary beneficiary. The Company is involved with other VIEs as discussed in Note 4. New Market Properties, LLC owns and conducts the business of our portfolio of grocery-anchored shopping centers. Preferred Office Properties, LLC owns and conducts the business of our portfolio of office buildings. Preferred Campus Communities, LLC owns and conducts the business of our portfolio of off-campus student housing communities. Each of these entities are indirect wholly-owned subsidiaries of the Operating Partnership. Basis of Presentation These consolidated financial statements include all of the accounts of the Company and the Operating Partnership presented in accordance with accounting principles generally accepted in the United States of America, or GAAP. These condensed financial statements were derived from audited financial statements, but do not contain all the disclosures required by GAAP. These condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the company’s Annual Report on Form 10-K for the year ended December 31, 2019. All significant intercompany transactions have been eliminated in consolidation. Certain adjustments have been made consisting of normal recurring accruals, which, in the opinion of management, are necessary for a fair presentation of the Company's financial condition and results of operations. The results of operations for the three and nine months ended September 30, 2020 and 2019, are not necessarily indicative of the results that may be expected for the full year. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. During the first quarter of 2020, there was a global outbreak of a novel coronavirus, or COVID-19, that has had and will continue to have an adverse impact on economic and market conditions and trigger a period of economic slowdown in the United States and globally. The potential reach, severity and duration of impacts of the COVID-19 pandemic will cause our estimates and forecasts of future events to be inherently less certain. Actual results could differ from those estimates. Amounts are presented in thousands where indicated. Reclassification Adjustments The Company recorded certain reclassification adjustments on its Condensed Consolidated Statement of Operations for the three-month and nine-month periods ended September 30, 2019, to conform prior period presentation to the current presentation reflective of the internalized structure as shown in the table below. None of these reclassification adjustments were due to error or misstatement.
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Significant Accounting Policies |
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Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Impairment Assessment The Company evaluates its tangible and identifiable intangible real estate assets for impairment when events such as declines in a property’s operating performance, deteriorating market conditions, or environmental or legal concerns bring recoverability of the carrying value of one or more assets into question. When qualitative factors indicate the possibility of impairment, the total undiscounted cash flows of the property, including proceeds from disposition, are compared to the net book value of the property. If this test indicates that impairment exists, an impairment loss is recorded in earnings equal to the shortage of the book value to fair value, calculated as the discounted net cash flows of the property. Current expected credit losses on real estate loan investments The Company carries its investments in real estate loans at amortized cost that consists of drawn amounts on the loans, net of unamortized deferred loan origination fees and current expected credit losses. On January 1, 2020, the Company adopted ASU 2016-13, that replaced the incurred loss model with an expected loss model for instruments measured at amortized cost, and requires entities to record credit allowances for total expected future losses on financial assets at the outset of each loan. For each loan in which the Company is the lender, the amount of protection afforded to the Company is estimated to be the excess of the future estimated fair market value of the developed property over the developer’s related obligations (including the Company’s mezzanine or member loan(s)), other loans senior to the Company's, the expected future balance of accrued interest and any other obligations related to the project’s funding. The excess represents the amount of equity dollars in each real estate project plus profit expected to be realized by the developer on the project, both of which are in a subordinate position to the Company's real estate loan investments. This numeric result is expressed as a percentage of the property's expected future fair value (a "loss reserve ratio"), which is then pooled into ranges of loss percentages that was derived from company-specific loss experience. The product of this indicated loss reserve ratio and the expected fully-funded balance (inclusive of an expected future balance of accrued interest) is the initial total expected credit loss reserve. Over the life of the loan, the initial reserve is reevaluated for potential reduction at the achievement of certain milestones in construction and lease-up progress as the project approaches completion and the loan approaches maturity, given no unforeseen degradation in project performance or failure to adhere to the terms of the loan by the borrower/developer. Finally, the loss reserve may be further refined by the Company due to any subjective qualitative factors deemed pertinent and worthy of reflection. The Company implemented this new guidance by applying this model to its existing portfolio of real estate loan investments using the modified retrospective method and in doing so, recorded a cumulative effect adjustment to retained earnings on January 1, 2020. See note 4. The Company's notes and lines of credit receivable are unsecured and so are assessed for expected future credit loss by individually assessing the expected profit from current development projects in progress, as well as the viability of the personal guarantees of the borrowers. The Company's real estate loan investments are collateralized by real estate development projects and secured further by guaranties of repayment from one or more of the borrowers. The Company's lines of credit receivable are typically only collateralized by personal guaranties, but occasionally may be cross-collateralized by interests in other real estate projects. As a result, the Company regularly evaluates the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property, as well as the financial and operating capability of the borrower. Specifically, a property’s operating results and any cash reserves are analyzed and used to assess (i) whether cash from operations is sufficient to cover the debt service requirements currently and into the future, (ii) the ability of the borrower to refinance the loan, and/or (iii) the property’s liquidation value. The Company also evaluates the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the properties. In addition, the overall economic environment, real estate sector, and geographic sub-market in which the borrower operates are considered. Such analyses are completed and reviewed by management, utilizing various data sources, including periodic financial data such as property operating statements, occupancy, tenant profile, rental rates, operating expenses, the borrower’s exit plan, capitalization and discount rates and site inspections. See the Revenue Recognition section of this Note for other loan-related policy disclosures required by ASC 310-10-50-6. Purchase Option Terminations The Company will occasionally receive a purchase option and/or a right of first refusal on the underlying property in conjunction with extending a real estate loan investment to the developer of the property. The purchase option is in some instances at a discount to the to-be-agreed-upon market value of the property, once stabilized. If the Company elects not to exercise the purchase option and acquire the property, it may negotiate to sell the purchase option back to the developer and receive a termination fee in consideration. The amount of the termination fee is accounted for as additional interest on the real estate loan investment and is recognized as interest revenue utilizing the effective interest method over the period beginning from the date of election until the earlier of (i) the maturity of the real estate loan investment and (ii) the sale of the property. Revenue Recognition Residential properties Rental revenue is recognized when earned from residents of the Company's residential properties, which is over the terms of the rental agreements, typically of to fifteen months’ duration. The Company evaluates the collectability of amounts due from residents and recognizes revenue from residents when collectability is deemed probable, in accordance with ASC 842-30-25-12. The Company evaluated the various ancillary revenues within its multifamily leases, including resident utility reimbursements. Having met the criteria that (i) the timing and pattern of transfer for the lease component and associated non-lease components are the same and (ii) that the lease component, if accounted for separately would be classified as an operating lease, the Company has elected the practical expedient under ASC 842, Leases, paragraph 10-15-42A, to elect reporting the lease component and non-lease components as one single component within the rental and other property revenues line on the Consolidated Statements of Operations. Revenue from utility reimbursements are considered variable lease payments and are recognized in the period in which the related expenses are incurred. Grocery-anchored shopping centers and office properties Our retail leases have original lease terms which generally range from to seven years for spaces under 5,000 square feet and from to twenty years for spaces over 10,000 square feet. Anchor leases generally contain renewal options for one or more additional periods whereas in-line tenant leases may or may not have renewal options. With the exception of anchor leases, the leases generally contain contractual increases in base rent rates over the lease term and the base rent rates for renewal periods are generally based upon the rental rate for the primary term, which may be adjusted for inflation or market conditions. Anchor leases generally do not contain contractual increases in base rent rates over the lease term and the renewal periods. Our leases generally provide for the payment of fixed monthly rentals and may also provide for the payment of additional rent based upon a percentage of the tenant’s gross sales above a certain threshold level (“percentage rent”). Our leases also generally include tenant reimbursements for common area expenses, insurance, and real estate taxes. Utilities are generally paid by tenants either directly through separate meters or through payment of tenant reimbursements. The foregoing general description of the characteristics of the leases in our centers is not intended to describe all leases and material variations in lease terms may exist. Our office building leases have original lease terms which generally range from to fifteen years and generally contain contractual, annual base rental rate escalations ranging from 2% to 3%. These leases may be structured as gross where the tenant’s base rental rate is all inclusive and there is no additional obligation to reimburse building operating expenses, net or NNN where in addition to base rent the tenant is also responsible for its pro rata share of reimbursable building operating expenses, or modified gross where in addition to base rent the tenant is also responsible for its pro rata share of reimbursable building operating expense increases over a base year amount (typically calculated as the actual reimbursable operating expenses in year one of the original lease term). Base rental revenue from tenants' operating leases is a lease component revenue in the Company's grocery-anchored shopping centers and office properties and is recognized on a straight-line basis over the term of the lease. Revenue based on "percentage rent" provisions that provide for additional rents that become due upon achievement of specified sales revenue targets (as specified in each lease agreement) is recognized only after the tenant exceeds its specified sales revenue target. Revenue from reimbursements of the tenants' share of real estate taxes, insurance and common area maintenance, or CAM, costs represent non-lease component revenue. Having met the criteria that (i) the timing and pattern of transfer for the lease component and associated non-lease components are the same and (ii) that the lease component, if accounted for separately would be classified as an operating lease, the Company has elected the practical expedient under ASC 842, Leases, paragraph 10-15-42A, to elect reporting the lease component and non-lease components as one single component under rental and other property revenues recognized in accordance with ASC 842. Revenue from reimbursements are considered variable lease payments and are recognized in the period in which the related expenses are incurred. The Company does not record income and offsetting expense for certain variable costs paid directly to third parties by lessees on behalf of lessors. Non-lease components which do not qualify under the practical expedient primarily include lease termination income and other ancillary revenue (e.g. application fees, license fees, late fees and tenant billbacks). Lease termination revenues are recognized ratably over the revised remaining lease term after giving effect to the termination notice or when tenant vacates and the Company has no further obligations under the lease. Rents and tenant reimbursements collected in advance are recorded as prepaid rent within other liabilities in the accompanying consolidated balance sheets. The Company evaluated the collectability of the tenant receivable related to rental and reimbursement billings due from tenants and straight-line rent receivables, which represent the cumulative amount of future adjustments necessary to present rental revenue on a straight-line basis, by taking into consideration the Company's historical write-off experience, tenant credit-worthiness, current economic trends, and remaining lease terms. In performing a detailed review of each tenant, we determined if the balances were paid in the subsequent month, if if the tenant had requested rent relief in the subsequent month due to COVID-19 circumstances, if the tenant was a credit tenant that was not typically late, and if the tenant had a security deposit on hand. If collection of substantially all of the outstanding balance is not probable, the tenant's rental revenue is recognized on a cash basis and all accrued balances are written off to rental revenue. The Company evaluates the collectability of these amounts and recognizes revenue related to tenants where collectability is deemed probable, in accordance with ASC 842-30-25-12. Upon adoption of ASC 842, the Company began recording amounts not deemed probable of collection as a reduction of rental and other property revenues, as applicable. In April 2020, the FASB issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under existing lease guidance, the Company would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated with the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A clarifies that entities may elect to not evaluate whether lease-related relief that lessors provide to mitigate the economic effects of COVID-19 on lessees is a lease modification under Topic 842, Leases. Instead, an entity that elects not to evaluate whether a concession directly related to COVID-19 is a modification can then elect whether to apply the modification guidance (i.e. assume the relief was always contemplated by the contract or assume the relief was not contemplated by the contract). Both lessees and lessors may make this election. The Company is evaluating its election on a disaggregated basis, with such election applied consistently to leases with similar characteristics and similar circumstances. The future impact of the Lease Modification Q&A is dependent upon the extent of lease concessions granted to tenants as a result of COVID-19 in future periods and the elections made by the Company at the time of entering into such concessions. The Company elected to account for rent deferments provided to our residents and tenants, which were primarily related to a change of timing of rent payments with no significant changes to total payments or term, as a deferred payment in which we continue to recognize rental revenue on the existing straight-line basis over the remaining lease term and recognize any changes in payment through lease receivables, which is recorded in tenant receivables and other assets in our condensed consolidated balance sheet. Any deferment agreements which resulted in a significant change in lease term were accounted for as a modification under ASC 842. The Company may provide grocery-anchored shopping center and office building tenants an allowance for the construction of leasehold improvements. These leasehold improvements are capitalized and depreciated over the shorter of the useful life of the improvements or the remaining lease term. If the allowance represents a payment for a purpose other than funding leasehold improvements, or in the event the Company is not considered the owner of the improvements, the allowance is considered to be a lease incentive and is recognized over the lease term as a reduction of rental revenue. Determination of the appropriate accounting for the payment of a tenant allowance is made on a lease-by-lease basis, considering the facts and circumstances of the individual tenant lease. When the Company is the owner of the leasehold improvements, recognition of rental revenue commences when the lessee is given possession of the leased space upon completion of tenant improvements. However, when the leasehold improvements are owned by the tenant, the lease inception date is the date the tenant obtains possession of the leased space for purposes of constructing its leasehold improvements. For our office properties, if the improvement is deemed to be a “landlord asset,” and the tenant funded the tenant improvements, the cost is amortized over the term of the underlying lease with a corresponding recognition of rental revenues. In order to qualify as a landlord asset, the specifics of the tenant’s assets are reviewed, including the Company's approval of the tenant’s detailed expenditures, whether such assets may be usable by other future tenants, whether the Company has consent to alter or remove the assets from the premises and generally remain the Company's property at the end of the lease. Gains on sales of real estate assets The Company recognizes gains on sales of real estate based on the difference between the consideration received and the carrying amount of the distinct asset, including the carrying amount of any liabilities relieved or assumed by the purchasing counterparty and net of disposition expenses. Lessee accounting The Company has evaluated its leases for which it is the lessee to determine the value of any right of use assets and related lease liabilities. All of these leases qualify as operating leases. The Company has three ground leases related to our office and grocery-anchored shopping center assets, one of which had been recorded at fair value on the Company's balance sheet at acquisition due to a purchase option the Company deemed probable of exercising. These ground leases generally have extended terms (e.g. over twenty years with multiple renewal options) and generally have base rent with CPI-based increases. The Company evaluated its renewal option periods in quantifying its asset and liability related to these ground leases. In determining the value of its right of use asset and lease liability, the Company used discount rates comparable to recent loan rates obtained on comparative properties within its portfolio. The Company is also the lessee of office space for its corporate headquarters and of furniture and office equipment, which generally are to five years in duration with minimal rent increases. The Company’s right of use asset and related lease liability in accordance with ASC 842-20-30 related to these leases are recorded within the Tenant Receivables and Other Assets and the Security Deposits and Other Liabilities line items of the balance sheet, respectively. Lease expense for ground leases and furniture and office equipment located at the Company's properties is included in the consolidated statements of operations within property operations and maintenance and expense for office rent and furniture and office equipment in the Company's corporate headquarters are included in general and administrative expense. See note 12 for more disclosures related to the Company's right of use assets and lease liabilities. Investments in joint ventures The Company’s joint ventures primarily consist of co-investments with institutional and other real estate operators, consistent with its core business. These joint ventures typically obtain non-recourse third-party financing on their property investments, thus contractually limiting the Company’s exposure to losses primarily to the amount of its equity investment; and due to the lender’s exposure to losses, a lender typically will require a minimum level of equity in order to mitigate its risk. As of September 30, 2020, the Company has a partial ownership interest in one multifamily community, two student housing properties, three grocery-anchored shopping centers and two office buildings. Of these investments in joint venture, only one grocery-anchored shopping center is accounted for as an investment in an unconsolidated joint venture. The Company evaluates its investments in joint venture and consolidates those in which it has controlling financial interest and records limited partners’ ownership interest and share of net income as non-controlling interest, under the voting interest model. The Company accounts for its investments for which it does not have a controlling financial interest as an investment in an unconsolidated joint venture under the equity method of accounting. All investments in joint venture have been evaluated for factors which may indicate a variable interest entity and determined none met such criteria. Investments in unconsolidated joint venture are recorded initially at cost and subsequently adjusted for cash contributions, distributions and our share of earnings and losses. To recognize the character of distributions from equity investees within its Condensed Consolidated Statements of Cash Flows, all distributions received are presumed to be returns on investment and classified as cash inflows from operating activities unless the Company’s cumulative distributions received less distributions received in prior periods that were determined to be returns of investment exceed its cumulative equity in earnings recognized by the investor (as adjusted for amortization of basis differences). When such an excess occurs, the current-period distribution up to this excess is considered a return of investment and classified as cash inflows from investing. Cash from loan proceeds received from the placement of debt on a property included in investments in unconsolidated joint venture are presented in cash flows provided by investing activities in the accompanying Condensed Consolidated Statements of Cash Flows. On a continuous basis, management assesses whether there are any indicators, including the underlying investment property operating performance and general market conditions, that the value of the Company’s investments in unconsolidated joint ventures may be impaired. An investment’s value is impaired only if management’s estimate of the fair value of the investment is less than the carrying value of the investment and such difference is deemed to be other-than-temporary. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the investment over the estimated fair value of the investment. Estimated fair values which are based on discounted cash flow models include all estimated cash inflows and outflows over a specified holding period, capitalization rates and discount rates utilized in these models are based upon unobservable rates that the Company believes to be within a reasonable range of current market rates. New Accounting Pronouncements
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Real Estate Assets (Notes) |
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Real Estate Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination Disclosure | The Company allocated the purchase prices and capitalized acquisition costs to the acquired assets and liabilities based upon their fair values, as shown in the following table. The purchase price allocations were based upon the Company's best estimates of the fair values of the acquired assets and liabilities.
The Company had no acquisitions of student housing property assets during the nine-month period ended September 30, 2020. During the nine-month period ended September 30, 2019, the Company completed the acquisition of Haven49, a 322-unit, 887-bed student housing property adjacent to the University of North Carolina at Charlotte. The Company effectuated the acquisition via a negotiated agreement whereby the Company accepted the membership interest in the Haven49 project entity in satisfaction of the project indebtedness owed to the Company. See Note 4. The Company allocated the asset's fair value and capitalized acquisition costs to the acquired assets and liabilities based upon their fair values, as shown in the following table. The purchase price allocations were based upon the Company's best estimates of the fair values of the acquired assets and liabilities.
On March 20, 2020, we delivered a written termination notice to the prospective purchaser of six of our student housing properties for their failure to consummate the purchase. Accordingly, we received an additional $2.75 million of forfeited earnest money as liquidated damages. New Market Properties assets acquired During the nine-month periods ended September 30, 2020 and 2019, the Company completed the acquisition of the following grocery-anchored shopping centers:
The aggregate purchase price of the New Market Properties acquisitions for the nine-month periods ended September 30, 2020 and 2019 was approximately $27.7 million and $178.5 million respectively, exclusive of acquired escrows, security deposits, prepaid assets, capitalized acquisition costs and other miscellaneous assets and assumed liabilities. The Company allocated the purchase prices to the acquired assets and liabilities based upon their fair values, as shown in the following table. The purchase price allocation was based upon the Company's best estimates of the fair values of the acquired assets and liabilities.
The Company recorded aggregate amortization and depreciation expense of:
At September 30, 2020, the Company had recorded acquired gross intangible assets of $310.6 million, accumulated amortization of $177.3 million, gross intangible liabilities of $86.0 million and accumulated amortization of $31.5 million. Net intangible assets and liabilities as of September 30, 2020 will be amortized over the weighted average remaining amortization periods of approximately 7.2 and 8.7 years, respectively. At September 30, 2020, included in the Company's total restricted cash was approximately $18.8 million that was contractually restricted to fund capital expenditures and other property-level commitments such as tenant improvements and leasing commissions. Our lenders also require us to escrow balances for future real estate tax and insurance payments. Through our property-level mortgage refinances executed in the second and third quarters of 2020, our lenders also required us to escrow funds for potential effects from the COVID-19 pandemic. At September 30, 2020, our restricted cash for real estate taxes, insurance premiums and COVID-19 reserves was $33.6 million and $6.8 million, respectively. The remainder of the Company's restricted cash consisted primarily of resident and tenant security deposits. Purchase Options In the course of extending real estate loan investments for property development, the Company will often receive an exclusive option to purchase the property once development and stabilization are complete. If the Company determines that it does not wish to acquire the property, it has the right to sell its purchase option back to the borrower for a termination fee in the amount of the purchase option discount. Effective May 7, 2018, the Company terminated its purchase options on the Bishop Street multifamily community and the Haven Charlotte student housing property, both of which were partially supported by real estate loan investments held by the Company, in exchange for termination fees aggregating approximately $5.6 million from the developers. Effective January 1, 2019, the Company terminated its purchase options on the Sanibel Straits, Newbergh, Wiregrass and Cameron Square multifamily communities and the Solis Kennesaw student housing property, all of which are partially supported by real estate loan investments held by the Company, in exchange for termination fees aggregating approximately $9.1 million from the developers. Effective March 6, 2020, the Company terminated its purchase option on the Falls at Forsyth multifamily community for $2.5 million. These fees are treated as additional interest revenue and are amortized over the period ending with the earlier of (i) the sale of the underlying property and (ii) the maturity of the real estate loans. The Company recorded approximately $4.9 million and $6.9 million of interest revenue related to these purchase option terminations for the nine-month periods ended September 30, 2020 and 2019, respectively. Joint Venture Investment On July 15, 2020, we contributed our Neapolitan Way grocery-anchored shopping center that was previously wholly-owned and consolidated into a joint venture in exchange for approximately $19.2 million and 50% interest in the joint venture. We realized a gain on the transaction of approximately $3.3 million. We now hold our remaining interest in the property via an unconsolidated joint venture and retain a 50% voting and financial interest. The following tables summarize the balance sheet and statements of income data for Neapolitan Way shopping center subsequent to its contribution into the joint venture as of and for the periods presented:
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Real Estate Disclosure | Real Estate Assets The Company's real estate assets consisted of:
Impacts of COVID-19 Pandemic The COVID-19 pandemic emerged in December 2019 and has since spread globally, including to every state in the United States. On March 13, 2020, the United States declared a national emergency. Since that time, efforts to contain the spread of COVID-19 have intensified. Several countries, including the United States, have taken steps to restrict travel, temporarily close businesses and issue quarantine orders. The restrictions have resulted in impacts to earnings for commercial real estate, which in turn is expected to affect asset valuations to some degree. The Company does not consider this event to be a triggering event for purposes of impairment, since no evidence of declining valuations of any consequence have emerged to cause a triggering event, as evidenced by step one analyses performed on a sample of its properties from each segment. The Company found a significant amount of cushion between the asset’s book value and the undiscounted cash flows for the properties evaluated. The Company's monthly rent collections for the three-month period ended September 30, 2020 continue to improve across the Company's segments compared to the three-month period ended June 30, 2020, with a more pronounced improvement in collections for in-line retail tenants, whose businesses were closed during periods with state or local operating restrictions. Many tenants have reopened as restrictions were lifted and monthly rent collections are beginning to increase. Within our multifamily communities, the Company offered rent deferral plans for the months of April, May, June and July 2020. Any deferred rents would be due over the remaining lease term of the individual tenants. For retail and office tenants, the company evaluated all delinquent receivable balances by performing a detailed review of each tenant. In this review, we determined if the balances were paid in the subsequent month, if tenant had requested rent relief in the subsequent month due to COVID-19 circumstances, if the tenant was a credit tenant that was not typically late, and if the tenant had a security deposit on hand. If the likelihood of the tenant submitting payment was deemed to be less than probable based on the aforementioned criteria, we determined the tenant as being an “at risk” tenant and revenue would be recognized on a cash basis. The Company's average recurring rental revenue collections before and after any effect of rent deferrals for the third quarter 2020 were approximately 99.0% and 99.0% respectively for multifamily communities, 99.5% and 99.8% for office properties and 95.2% and 96.6% for grocery-anchored retail properties, respectively. Rent deferments provided to residents and tenants primarily related to a change of timing of rent payments with no significant changes to total payments or term. The Company has deferred approximately $0.8 million, or 0.7% of total rental and other revenues for the three-month period ended September 30, 2020. In addition, the Company’s revenues were reduced by approximately $1.7 million, or 1.4% of rental and other revenues for the three-month period ended September 30, 2020 due to additional bad debt reserves related to the COVID-19 pandemic. Residential properties acquired During the nine-month period ended September 30, 2020, the Company completed the acquisition of the following multifamily communities:
The aggregate purchase prices of the multifamily acquisitions for the nine-month period ended September 30, 2020 were approximately $141.2 million, exclusive of acquired escrows, security deposits, prepaids, capitalized acquisition costs and other miscellaneous assets and assumed liabilities. The Company acquired no multifamily communities during the nine-month period ended September 30, 2019.
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Loans, Notes Receivable, and Line of Credit | Real Estate Loans, Notes Receivable, and Line of Credit Our portfolio of fixed rate, interest-only real estate loans consisted of:
On September 3, 2020, we closed on a real estate loan investment of up to approximately $20.7 million to partially finance the development and construction of a 320-unit multifamily community to be located in suburban Atlanta, Georgia. The loan pays a current monthly interest rate of 8.5% per annum and accrues additional deferred interest of 5.5% per annum and matures on September 3, 2024. On May 14, 2020, the Company closed on a real estate loan investment of up to $10.0 million in partial support of a 277-unit multifamily community to be located in Raleigh, North Carolina. The loan pays a current monthly interest rate of 8.5% per annum and accrues additional deferred interest of 5.5% per annum and matures on November 14, 2023. On February 28, 2020, the Company closed on a real estate loan investment of up to approximately $13.4 million in partial support of a 256-unit multifamily community to be located in Charlotte, North Carolina. The loan pays a current monthly interest rate of 8.5% per annum and accrues additional deferred interest of 5.5% per annum and matures on February 28, 2025. The Company's real estate loan investments are primarily collateralized by 100% of the membership interests of the underlying project entity, and, where considered necessary, by unconditional joint and several repayment guaranties and performance guaranties by the principal(s) of the borrowers. These guaranties generally remain in effect until the receipt of a final certificate of occupancy. All of the guaranties are subject to the rights held by the senior lender pursuant to a standard intercreditor agreement. Prepayment of the real estate loans are permitted in whole, but not in part, without the Company's consent. As discussed in note 2, the Company established total expected credit losses against its existing portfolio of real estate loan investments on January 1, 2020. In doing so, it recorded a cumulative effect reduction adjustment to retained earnings of approximately $7.4 million. For the quarter ended September 30, 2020, the Company recorded an aggregate net decrease in its provision for expected credit losses of approximately $0.8 million, primarily related to development projects achieving construction and leasing milestones. As described in note 2, the Company assesses the credit quality of its real estate loan investments by a calculated loss reserve ratio, which is an internally-developed credit quality indicator. Loss reserve ratios reflect the amount of protection afforded by the amount of equity and debt financing subordinate to the Company's position in the project; higher reserve ratios reflect a lower amount of invested dollars junior to the Company's position. The following table presents the Company's aggregation of loan amounts by final reserve ratio as of September 30, 2020:
The COVID-19 pandemic has, and will continue to have, impacts upon the development activity underlying our real estate loan investments, including the availability of labor, the supply and availability of construction materials and the ability to achieve leased stabilization. The Company's Berryessa real estate loan investment carried a 4.0% final reserve ratio at September 30, 2020. The project experienced a temporary construction delay due to effects of the COVID-19 pandemic but resumed in the second quarter of 2020 when the force majeure order was lifted. The Company assesses its real estate loan investment portfolio for impacts from COVID-19 at the outset of the project, as well as both quantitatively and qualitatively at the achievement of construction and leasing milestones during the projects' lives. The Company can make no assurances that economic or industry conditions or other circumstances will not lead to increases in allowances for credit losses. Management monitors the credit quality of the obligors under each of the Company's real estate loans by tracking the timeliness of scheduled interest and principal payments relative to the due dates as specified in the loan documents, as well as draw requests on the loans relative to the project budgets. In addition, management monitors the actual progress of development and construction relative to the construction plan, as well as local, regional and national economic conditions that may bear on our current and target markets. The Company's Starkville loan has been in default since August 20, 2019 under the terms of the underlying mezzanine loan agreement. During the fourth quarter of 2019, the Company recorded a specific loan loss reserve related to this loan totaling $1.4 million, reducing its net investment in the Starkville loan from $7.3 million, including accrued interest of $1.2 million, to a carrying amount of $5.9 million. In the first quarter of 2020, the Company recorded an additional $2.1 million in reserves pertaining to this loan under ASU 2016-03, reducing its carrying amount to $3.8 million as of September 30, 2020. No additional reserves were recorded in the second or third quarters of 2020. See note 16. At September 30, 2020, the Company's portfolio of notes and lines of credit receivable consisted of:
On November 20, 2018, the borrower on the Haven Campus Communities, LLC line of credit defaulted on the loan, triggering the accrual of an additional 10% default interest rate, which is incremental to the original 8% current interest rate. The amount of default interest recorded from the default date through September 30, 2020 was approximately $1.8 million. Under the terms of the loan, amounts collected are applied first to any legal costs incurred by the Company to collect amounts due on the loan; second, to pay any accrued default and current interest on the loan; and third, to repay the principal amount owed. Based on the negotiated agreement between the Company and the borrowers, on March 27, 2019, the Company received the membership interests of the Haven49 student housing project in exchange for the complete settlement of the related Haven49 loans, which include the Haven Campus Communities Charlotte Member, LLC line of credit, the Haven49 real estate loan investment and the Haven49 member loan. Additionally, under the same agreement, the Company received payouts and credits totaling approximately $3.75 million towards the Haven Campus Communities, LLC line of credit. These amounts were applied in accordance with the terms of the line of credit. The Company retains a pledge of a 49.49% interest in an unrelated shopping center located in Atlanta, Georgia as collateral on the Haven Campus Communities, LLC line of credit, as well as personal guaranties of repayment from the principals of the borrower. In January 2019 the Company filed a lawsuit to collect the amounts owed under the line of credit it provided to Haven Campus Communities, LLC. In September 2019, Haven Campus Communities, LLC answered the lawsuit and filed counterclaims against the Company and its affiliates. At this time, the case is in discovery, so the Company is unable to make any estimates on timing or amounts that may be collected by the Company on its Haven Campus Communities, LLC line of credit. The Company recorded interest income and other revenue from these instruments as follows:
The Company extends loans for purposes such as to partially finance the development of multifamily residential communities, to acquire land in anticipation of developing and constructing multifamily residential communities, and for other real estate or real estate related projects. Certain of these loans include characteristics such as exclusive options to purchase the project within a specific time window following project completion and stabilization, the sufficiency of the borrowers' investment at risk and the existence of payment and performance guaranties provided by the borrowers, any of which can cause the loans to create variable interests to the Company and require further evaluation as to whether the variable interest creates a VIE, which would necessitate consolidation of the project. The Company considers the facts and circumstances pertinent to each entity borrowing under the loan, including the relative amount of financing the Company is contributing to the overall project cost, decision making rights or control held by the Company, guarantees provided by third parties, and rights to expected residual gains or obligations to absorb expected residual losses that could be significant from the project. If the Company is deemed to be the primary beneficiary of a VIE, consolidation treatment would be required. The Company has no decision making authority or power to direct activity, except normal lender rights, which are subordinate to the rights of the senior lenders on the projects. The Company has concluded that it is not the primary beneficiary of the borrowing entities and therefore it has not consolidated these entities in its consolidated financial statements. The Company's maximum exposure to loss from these loans is their drawn amount as of September 30, 2020 of approximately $323.6 million. The maximum aggregate amount of loans to be funded as of September 30, 2020 was approximately $386.6 million, which includes approximately $63.0 million of loan committed amounts not yet funded. The Company has evaluated its real estate loans, where appropriate, for accounting treatment as loans versus real estate development projects, as required by ASC 310. The Company evaluates the expected residual profit it expects to collect under the terms of the loan versus the expected residual profit expected to be collected by the developer (in conjunction with any equity investors, if applicable), along with the "loan versus investment" characteristics as set forth by ASC 310-25. For each loan, the characteristics and the facts and circumstances indicate that loan accounting treatment is appropriate in cases where (i) the majority of the expected residual profit is expected to be due the developer and (ii) the majority of "loan versus investment" tests indicate that the instrument is a loan. The Company is subject to a geographic concentration of risk that could be considered significant with regard to the Newbergh, Newbergh Capital, Solis Kennesaw II, 8West, Kennesaw Crossing and Solis Cumming Town Center real estate loan investments, all of which are partially supporting various real estate projects in or near Atlanta, Georgia. The drawn amount, in addition to outstanding accrued interest, for these loans as of September 30, 2020 totaled approximately $56.5 million (with a total commitment amount of approximately $86.2 million). The Company is also subject to a geographic concentration of risk that could be considered significant with regard to the Sanibel Straits, Sanibel Straits Capital, E-Town, Vintage Destin, Hidden River II, Hidden River II Capital and Vintage Horizon West real estate loan investments, all of which are partially supporting various real estate projects in Florida. The drawn amount, in addition to outstanding accrued interest, for these loans as of September 30, 2020 totaled approximately $56.4 million (with a total commitment amount of approximately $61.2 million). The event of a total failure to perform by the borrowers and guarantors would subject the Company to a total possible loss of the drawn amount and all outstanding accrued interest. Freddie Mac K Program investments On May 23, 2018, the Company purchased a subordinate tranche of Series 2018-ML04, a pool of 20 multifamily mortgages with a total pool size of approximately $276.3 million, from Freddie Mac. The purchase price of the subordinate tranche was approximately $4.7 million. On December 10, 2019, the Company sold its investment in Series 2018-ML04 for $6.2 million. On March 28, 2019, the Company purchased a subordinate tranche of Series 2019-ML05, a pool of 21 multifamily mortgages with a total pool size of approximately $295.7 million, from Freddie Mac. The Company's tranche of the 2019-ML05 pool paid monthly interest of approximately $103,000. The purchase price of the subordinate tranche was approximately $18.4 million. On December 17, 2019, the Company sold its investment in Series 2019-ML05 for $20.4 million.
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Preferred Stock [Text Block] | Redeemable Preferred Stock and Equity Offerings On February 14, 2020, the Company's offering of a maximum of 1,500,000 Units, with each Unit consisting of one share of Series A Redeemable Preferred Stock, par value $0.01 per share, and one Warrant to purchase up to 20 shares of Common Stock (the "$1.5 Billion Unit Offering") expired. See note 6 for discussion regarding a termination fee agreement with and payment to Preferred Capital Securities, LLC, or PCS, an affiliate of the Company, in conjunction with the Company's winding down of the $1.5 Billion Unit Offering. At September 30, 2020, the Company's active equity offerings consisted of: •an offering of up to 1,000,000 Shares of Series A1 Redeemable Preferred Stock ("Series A1 Preferred Stock"), Series M1 Redeemable Preferred Stock ("Series M1 Preferred Stock"), or a combination of both (collectively the "Series A1/M1 Offering"); •an offering of up to $400 million of equity or debt securities (the "2019 Shelf Offering"), including an offering of up to $125 million of Common Stock from time to time in an "at the market" offering (the "2019 ATM Offering"); and •an offering of up to $100 million of equity securities for the Preferred Office Growth Fund, a consolidated entity (the “Preferred Office Growth Fund Offering”). Certain offering costs are not related to specific closing transactions and are recognized as a reduction of stockholders' equity in the proportion of the number of instruments issued to the maximum number of shares of Preferred Stock anticipated to be issued. Any offering costs not yet reclassified as reductions of stockholders' equity are are reflected in the asset section of the consolidated balance sheets as deferred offering costs. Cumulative gross proceeds and offering costs for our active equity offerings consisted of:
(1) The Series A $1.5 billion unit offering expired in Q1 2020 and therefore all remaining deferred offering costs were reclassified as reductions of stockholder's equity in Q1 2020. (2) The $125 million ATM Offering is a part of the $400 million Shelf Offering and therefore it is not included in the total. (3) These offering costs specifically identifiable to Unit offering closing transactions, such as commissions, dealer manager fees, and other registration fees, are reflected as a reduction of stockholders' equity at the time of closing. Series A1/M1 Preferred Stock Offering On September 27, 2019, the Company’s registration statement on Form S-3 (Registration No. 333-233576) (the “Series A1/M1 Registration Statement”) was declared effective by the SEC. Shares of Series A1 Preferred Stock and Series M1 Preferred Stock issued under the Series A1/M1 Registration Statement are each offered at a price of $1,000 per share, subject to adjustment under certain conditions. Aggregate offering expenses of the Series A1/M1 Preferred Stock Offering, including selling commissions and dealer manager fees for the Series A1 Preferred Stock and only dealer manager fees for the Series M1 Preferred Stock, are capped at 12.0% of aggregate gross proceeds of the offering. Dealer manager fees and sales commissions for the Series A1/M1 Preferred Stock Offering are not reimbursable.
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Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions Disclosure [Text Block] | Related Party Transactions On January 31, 2020, the Company internalized the functions performed by the Former Manager and Sub-Manager by acquiring the entities that owned the Former Manager and the Sub-Manager for an aggregate purchase price of $154 million, plus up to $25 million of additional consideration to be paid within 36 months, due upon the earlier of (i) if, for the immediately preceding fiscal year beginning on January 1, funds from operations ("FFO") of the Company per weighted average basic share of the Company’s common stock and Class A Unit (as defined in the limited partnership agreement of PAC OP) outstanding for such fiscal year is determined to be greater than or equal to $1.55 or (ii) on the thirty-six (36) month anniversary of the closing of the Internalization. Pursuant to the Stock Purchase Agreement, the sellers sold all of the outstanding shares of capital stock of NELL Partners, Inc. ("NELL") and NMA Holdings, Inc. ("NMA") to PAC Carveout, LLC ("PAC Sub") in exchange for an aggregate of approximately $111.1 million in cash paid at the closing which reflects the satisfaction of certain indebtedness of NELL, the estimated net working capital adjustment, and a hold back of $15 million for certain specified matters (the "Specified Matters Holdback Amount"). The Specified Matters Holdback Amount is payable to the NELL sellers less certain losses following final resolution of any such specified matters. Daniel M. DuPree and Leonard A. Silverstein were executive directors of NELL Partners, Inc., which controlled the Former Manager through the date of the Internalization. Daniel M. DuPree was the Chief Executive Officer and Leonard A. Silverstein was the President and Chief Operating Officer of the Former Manager. Trusts established, or entities owned, by the family of John A. Williams, Daniel M. DuPree, the family of Leonard A. Silverstein, the Company’s former Vice Chairman of the Board, and former President and Chief Operating Officer, were the owners of NELL. Trusts established, or entities owned, by Joel T. Murphy, the Company’s Chief Executive Officer and a member of the Board, the family of Mr. Williams, Mr. DuPree and the family of Mr. Silverstein were the owners of the Sub-Manager. The Company's Haven 12 real estate loan investment and Haven Campus Communities LLC line of credit are both supported in part by a guaranty of repayment and performance by John A. Williams, Jr., the son of the late John A. Williams, the Company's former Chief Executive Officer and Chairman of the Board. Because the terms of these loans were negotiated and agreed upon while John A. Williams was the Chief Executive Officer of the Company, these instruments will continue to be reported as related party transactions until the loans are repaid. The Company's Wiregrass and Wiregrass Capital real estate loan investments partially financed the development of a multifamily community in Tampa, Florida by the Altman Companies. Timothy A. Peterson is a member of management of the Altman Companies as well as Chairman of the Audit Committee of the Company's Board of Directors. The Wiregrass loans and the acquisition of the underlying property on March 31, 2020 as described in note 3, therefore qualify as related party transactions. The Management Agreement entitled the Former Manager to receive compensation for various services it performed related to acquiring assets and managing properties on the Company's behalf:
The Former Manager waived some of the asset management, property management, or general and administrative fees for properties owned by the Company. A cumulative total of approximately $25.6 million of combined asset management and general and administrative fees related to acquired properties had been waived by the Former Manager; at the date of Internalization, all of the remaining contingent fees of $24.1 million were eliminated in conjunction with the Company's Internalization transaction. In addition to property management fees, the Company incurred the following reimbursable on-site personnel salary and related benefits expenses at the properties, which are listed on the Consolidated Statements of Operations:
The Former Manager utilized its own and its affiliates' personnel to accomplish certain tasks related to raising capital that would typically be performed by third parties, including, but not limited to, legal and marketing functions. As permitted under the Management Agreement, the Former Manager was reimbursed $40,451 and $384,243 for the nine-month periods ended September 30, 2020 and 2019, respectively and Preferred Capital Securities, LLC, or PCS, was reimbursed $0 and $1,022,855 for the nine-month periods ended September 30, 2020 and 2019, respectively. These costs are recorded as deferred offering costs until such time as additional closings occur on the Series A1/M1 Preferred Stock Offering or the 2019 Shelf Offering, at which time they are reclassified on a pro-rata basis as a reduction of offering proceeds within stockholders’ equity. In conjunction with the winding down of the $1.5 Billion Unit Offering, the Company has engaged PCS to perform certain termination-related services. These services began in October 2019 and continued through April 2020. For the nine-month period ended September 30, 2020, the Company paid an additional $3.1 million for these services, which were recorded as deferred offering costs. Prior to the Internalization, the Company held a promissory note in the amount of approximately $650,000 due from Preferred Capital Marketing Services, LLC, or PCMS, which is a wholly-owned subsidiary of NELL Partners and a revolving line of credit with a maximum borrowing amount of $24.0 million to its Manager. Both of these instruments were extinguished in connection with the Internalization transaction. Of the Company’s $24.8 million accrued interest receivable on real estate loans balance on the Consolidated Balance Sheet, interest receivable of approximately $1.2 million relates to the Haven 12 real estate loan investment, which is to a related party. Interest receivable of approximately $2.0 million on its Haven Campus Communities, LLC line of credit is included in the tenant receivables and other assets line.
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Dividends |
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Dividends [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends and Distributions | Dividends and Distributions The Company declares and pays monthly cash dividend distributions in the amount of $5.00 per share per month on its Series A Preferred Stock and its Series A1 Preferred Stock. For the Company's Series M Preferred Stock, or mShares, dividends are paid on an escalating scale of $4.79 per month in the first year following share issuance, increasing each year to $6.25 per month in year eight and beyond. Similarly, for the Company's Series M1 Preferred Stock, dividends are paid on an escalating scale of $5.08 per month in the first year following share issuance, increasing each year to $5.92 per month in year ten and beyond. All preferred stock dividends are prorated for partial months at issuance as necessary. Given the nature of the escalating dividends associated with the Company’s mShares and Series M1 Preferred Stock, the Company accrues dividends at the effective dividend rate in accordance with GAAP. This results in the Company recording larger dividends declared to preferred stockholders in the Company’s Consolidated Statements of Operations than dividends required to be paid for the first four years after issuance with respect to the mShares and the first five years after issuance with respect to the Series M1 Preferred Stock. Similarly, this will result in the Company recording smaller dividends declared to preferred stockholders in the Company’s Consolidated Statements of Operations than dividends required to be paid for the fifth through the eighth year after issuance with respect to the mShares and the sixth through the tenth year after issuance with respect to the Series M1 Preferred Stock. Following the escalation period (year eight for the mShares and year ten for the Series M1 Preferred Stock), the dividends declared to preferred stockholders in the Company’s Consolidated Statements of Operations will equal the dividend paid. The Company declared aggregate quarterly cash dividends on its Common Stock of $0.175 and $0.2625 per share for the three-month periods ended September 30, 2020 and 2019 respectively and $0.6125 and $0.7850 per share for the nine-month periods ended September 30, 2020 and 2019, respectively. The holders of Class A OP Units of the Operating Partnership are entitled to equivalent distributions as the dividends declared on the Common Stock. At September 30, 2020, the Company had 742,413 Class A OP Units outstanding, which are exchangeable on a one-for-one basis for shares of Common Stock or the equivalent amount of cash. The Company's dividend and distribution activity consisted of:
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Equity Compensation |
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Equity Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Equity Compensation Stock Incentive Plan On May 2, 2019, the Company’s board of directors adopted, and the Company’s Common stockholders approved, the Preferred Apartment Communities, Inc. 2019 Stock Incentive Plan, or the 2019 Plan, to incentivize, compensate and retain eligible officers, consultants, and non-employee directors. The 2019 Plan increased the aggregate number of shares of Common Stock authorized for issuance under the 2011 Plan from 2,617,500 to 3,617,500. The 2019 Plan does not have a stated expiration date. Equity compensation expense by award type for the Company was:
Performance-based Restricted Stock Unit Grants On July 31, 2020, the Company awarded performance-based restricted stock units (“PSUs”) to certain of its senior executives. Each PSU represents the right to receive one share of APTS common stock upon satisfaction of both (i) the market condition, at which time the PSUs become earned PSUs, and (ii) the service requirement, beyond which point the PSUs become vested PSUs. The market condition requirement of the PSUs consists of a relative measure of total shareholder return (“TSR”) of the Company's Common Stock versus the average TSR of a select group of publicly-traded peer companies. TSR is calculated by dividing the sum of price appreciation and cumulative dividends over the performance period divided by the beginning value of the common stock at the performance period commencement date (July 1, 2020), where the determining values are derived by calculating the 20-day volume weighted average stock price preceding both the performance period commencement date and the performance period end date (June 30, 2023). PSUs will become earned PSUs according to the percentile rank of the TSR of Company's Common Stock versus the peer group’s average TSR, as shown in the following table:
The number of PSUs that become earned PSUs can range between 0% and 200% of the original (target) number of PSUs awarded and actual percentile ranking results between the 35th and 75th percentile are to be interpolated between the percentage earned values shown. In order for earned PSUs to become vested PSUs, the participant must remain continuously employed by the Company or an affiliate company (i) from the grant date through the payout determination date (expected to be no more than 5 days following the performance period end date) for 50% of the PSU award and (ii) from the grant date through the first anniversary of the performance period end date for the remaining 50% of the PSU award. Since the PSUs vest in part based upon achievement of a market condition, they were valued utilizing a Monte-Carlo simulation, that excludes the value of Common Stock dividends since dividend equivalents accrue separately to the award holders. The underlying valuation assumptions and result for the Performance RSU award was:
The expected dividend yield assumptions were derived from the Company’s closing prices of the Common Stock and historical dividend amounts over the trailing five-year period from the grant date. The Company's own stock price history over the 2.91 year period trailing the grant date was utilized as the expected volatility assumption. The risk-free rate assumptions were obtained from the grant date yields on zero coupon U.S. Treasury STRIPS that have a term equal to the length of the remaining Performance Period and were calculated as the interpolated rate between the -year and -year yield percentages. Restricted Stock Grants The following annual grants of restricted stock were made to members of the Company's independent directors, as payment of the annual retainer fees. The restricted stock grants for service years 2017-2019 vested (or are scheduled to vest) on a pro-rata basis over the four consecutive 90-day periods following the date of grant. The restricted stock grant for service year 2020 is scheduled to vest on the -year anniversary of the date of grant.
On June 17, 2020, the Company granted Restricted Stock to certain of its executives and employees. The fair value per share of $8.05 was based upon the closing price of the Company's Common Stock on the business day preceding the grant date. A total of 137,741 shares representing a fair value of approximately $1.1 million will vest on the year anniversary of the grant date and 344,356 shares representing a fair value of approximately $2.8 million will vest on a pro-rata basis on each of the succeeding anniversaries of the grant date. Class B OP Units As of September 30, 2020, cumulative activity of grants of Class B Units of the Operating Partnership, or Class B OP units, was:
There were no grants of Class B OP Units for 2019 or 2020. The underlying valuation assumptions and results for the 2018 Class B OP Unit awards were:
The expected dividend yield assumptions were derived from the Company’s closing prices of the Common Stock on the grant dates and the projected future quarterly dividend payments per share of $0.25 for the 2018 awards. For the 2018 awards, the Company's own stock price history was utilized as the basis for deriving the expected volatility assumption. The risk-free rate assumptions were obtained from the Federal Reserve yield table and were calculated as the interpolated rate between the 20 and 30 year yield percentages on U. S. Treasury securities on the grant date. Since the Class B OP Units have no expiration date, a derived service period of one year was utilized, which equals the period of time from the grant date to the initial valuation date. Restricted Stock Units The Company, made grants of restricted stock units, or RSUs, to its employees under the 2019 Plan, and prior to Internalization, made grants of RSUs to certain employees of affiliates of the Company under the 2011 Plan, as shown in the following table:
The RSUs vest in three equal consecutive -year tranches from the date of grant. For each grant, on the Initial Valuation Date, the market capitalization of the number of shares of Common Stock at the date of grant is compared to the market capitalization of the same number of shares of Common Stock at the Initial Valuation Date. If the market capitalization measure results in an increase which exceeds the target market threshold, the Vested RSUs become earned RSUs and are settled in shares of Common Stock on a one-to-one basis. Vested RSUs may become Earned RSUs on a pro-rata basis should the result of the market capitalization test be an increase of less than the target market threshold. Any Vested RSUs that do not become Earned RSUs on the Initial Valuation Date are subsequently remeasured on a quarterly basis until such time as all Vested RSUs become Earned RSUs or are forfeited due to termination of continuous service due to an event other than as a result of a qualified event, which is generally the death or disability of the holder. Continuous service through the final valuation date is required for the Vested RSUs to qualify to become fully Earned RSUs. Because RSUs are valued using the identical market condition vesting requirement that determines the transition of the Vested Class B Units to Earned Class B Units, the same valuation assumptions per RSU were utilized to calculate the total fair values of the RSUs. The total fair value amounts pertaining to grants of RSUs, net of forfeitures, are amortized as compensation expense over the three one-year periods ending on the three successive anniversaries of the grant dates.
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Indebtedness |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Text Block] | Indebtedness Mortgage Notes Payable Mortgage financing of property acquisitions During the nine-month period ended September 30, 2020, the Company obtained original mortgage financing on the following properties as shown in the following table:
Repayments and refinancings The following table summarizes our mortgage debt refinancing and repayment activity for the nine-month periods ended September 30, 2020 and 2019:
The following table summarizes our mortgage notes payable at September 30, 2020:
The Company has placed interest rate caps on the variable rate mortgages on its Avenues at Creekside, Summit Crossing II, Tradition and Bloc residential properties. Under guidance provided by ASC 815-10, these interest rate caps are derivatives that are embedded in the debt hosts. Because the interest rate caps are deemed to be clearly and closely related to the debt hosts, bifurcation and fair value accounting treatment is not required. The mortgage note secured by our Independence Square property is a year term with an anticipated repayment date of September 1, 2022. If the Company elects not to pay its principal balance at the anticipated repayment date, the term will be extended for an additional years, maturing on September 1, 2027. The interest rate from September 1, 2022 to September 1, 2027 will be the greater of (i) the Initial Interest Rate of 3.93% plus 200 basis points or (ii) the yield on the year U.S. treasury security rate plus approximately 400 basis points. As of September 30, 2020, the weighted-average remaining life of deferred loan costs related to the Company's mortgage indebtedness was approximately 9.3 years. Our mortgage notes have maturity dates between June 6, 2021 and June 1, 2054. Credit Facility The Company has a credit facility, or Credit Facility, with KeyBank National Association, or KeyBank, which includes a revolving line of credit, or Revolving Line of Credit, which is used to fund investments, capital expenditures, dividends (with consent of KeyBank), working capital and other general corporate purposes on an as needed basis. On March 23, 2018, the maximum borrowing capacity on the Revolving Line of Credit was increased to $200 million pursuant to an accordion feature. The accordion feature permits the maximum borrowing capacity to be expanded or contracted without amending any further terms of the instrument. On December 12, 2018, the Fourth Amended and Restated Credit Agreement, or the Amended and Restated Credit Agreement, was amended to extend the maturity to December 12, 2021, with an option to extend the maturity date to December 12, 2022, subject to certain conditions described therein. The Revolving Line of Credit accrues interest at a variable rate of one month LIBOR plus an applicable margin of 2.75% to 3.50% per annum, depending upon the Company’s leverage ratio. The weighted average interest rate for the Revolving Line of Credit was 3.91% for the nine-month period ended September 30, 2020. The Amended and Restated Credit Agreement also reduced the commitment fee on the average daily unused portion of the Revolving Line of Credit to 0.25% or 0.30% per annum, depending upon the Company’s outstanding Credit Facility balance. On December 20, 2019, the Company entered into a $70.0 million interim term loan with KeyBank, or the 2019 Term Loan, to partially finance the acquisition of Morrocroft Centre, an office building located in Charlotte, North Carolina. The 2019 Term Loan accrues interest at a rate of LIBOR plus 1.7% per annum. The 2019 Term Loan was repaid in conjunction with the closing of permanent mortgage financing for Morrocroft Centre on March 19, 2020. The Fourth Amended and Restated Credit Agreement contains certain affirmative and negative covenants, including negative covenants that limit or restrict secured and unsecured indebtedness, mergers and fundamental changes, investments and acquisitions, liens and encumbrances, dividends, transactions with affiliates, burdensome agreements, changes in fiscal year and other matters customarily restricted in such agreements. The amount of dividends that may be paid out by the Company is restricted to a maximum of 95% of AFFO for the trailing four quarters without the lender's consent; solely for purposes of this covenant, AFFO is calculated as earnings before interest, taxes, depreciation and amortization expense, plus reserves for capital expenditures, less normally recurring capital expenditures, less consolidated interest expense. As of September 30, 2020, the Company was in compliance with all covenants related to the Revolving Line of Credit, as shown in the following table:
(1) All covenants are as defined in the credit agreement for the Revolving Line of Credit. (2) Calculated on a trailing four-quarter basis, except for Common Stock dividends, which are annualized off of the trailing two quarters' dividend. For the year ended September 30, 2020, the maximum dividends and distributions allowed under this covenant was approximately $179.8 million. (3) Adjusted to exclude the effect of costs incurred with internalization. Loan fees and closing costs for the establishment and subsequent amendments of the Credit Facility are amortized utilizing the straight line method over the life of the Credit Facility. At September 30, 2020, unamortized loan fees and closing costs for the Credit Facility were approximately $0.8 million, which will be amortized over a remaining loan life of approximately 1.3 years. Loan fees and closing costs for the mortgage debt on the Company's properties are amortized utilizing the effective interest rate method over the lives of the loans. Acquisition Facility On February 28, 2017, the Company entered into a credit agreement, or Acquisition Credit Agreement, with Freddie Mac through KeyBank to obtain an acquisition revolving credit facility, or Acquisition Facility, with a maximum borrowing capacity of $200 million. The purpose of the Acquisition Facility is to finance acquisitions. The maximum borrowing capacity on the Acquisition Facility may be increased at the Company's request up to $300 million at any time prior to March 1, 2021. On March 25, 2019, the maximum borrowing capacity was decreased to $90 million by agreement between the Company and KeyBank.The Acquisition Facility accrues interest at a variable rate of one month LIBOR plus a margin of between 1.75% per annum and 2.20% per annum, depending on the type of assets acquired and the resulting property debt service coverage ratio. The Acquisition Facility has a maturity date of March 1, 2022 and has two -year extension options, subject to certain conditions described therein. At September 30, 2020, unamortized loan fees and closing costs for the establishment of the Acquisition Facility were approximately $0.1 million, which will be amortized over a remaining loan life of approximately 1.4 years. Interest Expense Interest expense, including amortization of deferred loan costs was:
Future Principal Payments The Company’s estimated future principal payments due on its debt instruments as of September 30, 2020 were:
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Income Taxes |
9 Months Ended |
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Sep. 30, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | Income TaxesThe Company elected to be taxed as a REIT effective with its tax year ended December 31, 2011, and therefore, the Company will not be subject to federal and state income taxes, so long as it distributes 100% of the Company's annual REIT taxable income (which does not equal net income as calculated in accordance with GAAP and determined without regard for the deduction for dividends paid and excluding net capital gains) to its stockholders. For the Company's tax years prior to its REIT election year, its operations resulted in a tax loss. As of December 31, 2010, the Company had deferred federal and state tax assets totaling approximately $298,100, none of which were based upon tax positions deemed to be uncertain. These deferred tax assets will most likely not be used since the Company elected REIT status; therefore, management has determined that a 100% valuation allowance is appropriate as of September 30, 2020 and December 31, 2019. |
Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesOn January 31, 2020, the Company assumed its Former Manager's -year office lease as amended, which began on October 9, 2014. As of September 30, 2020, the amount of rent due from the Company was $15.3 million over the remaining term of the lease. A total of approximately $24.1 million of asset management and general and administrative fees related to acquired properties as of September 30, 2020 that have been waived by the Former Manager were eliminated in conjunction with the Company's Internalization transaction. At September 30, 2020, the Company had unfunded commitments on its real estate loan portfolio of approximately $63.0 million. At September 30, 2020, the Company had unfunded contractual commitments for tenant, leasing, and capital improvements of approximately $6.2 million. The Company is otherwise currently subject to neither any known material commitments or contingencies from its business operations, nor any material known or threatened litigation.
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Segment information |
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Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company's Chief Operating Decision Maker, or CODM, evaluates the performance of the Company's business operations and allocates financial and other resources by assessing the financial results and outlook for future performance across four distinct segments: residential properties, real estate related financing, New Market Properties and Preferred Office Properties. Residential Properties - consists of the Company's portfolio of residential multifamily communities and student housing properties. Multifamily Communities and Student Housing Properties were previously presented as separate reporting segments. The Company has combined these two segments into the Residential Properties reportable segment. Financing - consists of the Company's portfolio of real estate loans, bridge loans, and other instruments deployed by the Company to partially finance the development, construction, and prestabilization carrying costs of new multifamily communities and other real estate and real estate related assets. Excluded from the financing segment are consolidated assets of VIEs and financial results of the Company's Dawson Marketplace grocery-anchored shopping center real estate loan, which are included in the New Market Properties segment. New Market Properties - consists of the Company's portfolio of grocery-anchored shopping centers, which are owned by New Market Properties, LLC, a subsidiary of the Company, as well as the financial results from the Company's Dawson Marketplace real estate loan, that was repaid and extinguished on February 3, 2020. Preferred Office Properties - consists of the Company's portfolio of office buildings, which are owned by Preferred Office Properties, LLC, a wholly-owned subsidiary of the Company. The CODM monitors net operating income (“NOI”) on a segment and a consolidated basis as a key performance measure for its operating segments. NOI is a non-GAAP measure that is defined as rental and other property revenue from real estate assets plus interest income from its loan portfolio less total property operating and maintenance expenses, property management fees, real estate taxes, property insurance, and general and administrative expenses. The CODM uses NOI as a measure of operating performance because it provides a measure of the core operations, rather than factoring in depreciation and amortization, financing costs, acquisition expenses, and other expenses generally incurred at the corporate level. The following tables present the Company's assets, revenues, and NOI results by reportable segment, as well as a reconciliation from NOI to net income (loss). The assets attributable to 'Other' primarily consist of deferred offering costs recorded but not yet reclassified as reductions of stockholders' equity and cash balances at the Company and Operating Partnership levels.
Total capitalized expenditures (inclusive of additions to construction in progress, but exclusive of the purchase price of acquisitions) for the three-month and nine-month periods ended September 30, 2020 and 2019 were as follows:
Second-generation capital expenditures exclude those expenditures made in our office building portfolio (i) to lease space to "first generation" tenants (i.e. leasing capital for existing vacancies and known move-outs at the time of acquisition), (ii) to bring recently acquired properties up to our Class A ownership standards (and which amounts were underwritten into the total investment at the time of acquisition), (iii) for property redevelopments and repositionings (iv) to newly leased space which had been vacant for more than one year and (v) for building improvements that are recoverable from future operating cost savings. Total revenues by reportable segment of the Company were:
The Company expects that negative impacts from the COVID-19 pandemic affecting its in-line retail tenants within its New Market Properties segment may continue throughout 2020. Of our over 900 retail tenants, the Company has 11 leases with six companies that have entered bankruptcy proceedings and in the aggregate this constitutes approximately 1% of the total recurring rental revenue for the New Market Properties segment. The chief operating decision maker utilizes segment net operating income, or Segment NOI, in evaluating the performance of its operating segments. Segment NOI represents total property revenues less total property operating expenses, excluding depreciation and amortization, for all properties held during the period. Segment NOI for the Company's financing segment consists of interest revenues from the Company's real estate loan investments and notes and lines of credit receivable, as well as revenues from terminated property purchase options. Management believes that Segment NOI is a helpful tool in evaluating the operating performance of the segments because it measures the core operations of property performance by excluding corporate level expenses and other items not directly related to property operating performance. Segment NOI for each reportable segment for the three-month and nine-month periods ended September 30, 2020 and 2019 were as follows:
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Loss per Share |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss per share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (Loss) per Share | Income (Loss) Per Share The following is a reconciliation of weighted average basic and diluted shares outstanding used in the calculation of income (loss) per share of Common Stock:
(A) The Company's outstanding Class A Units of the Operating Partnership (742 and 856 Units at September 30, 2020, and 2019, respectively) contain rights to distributions in the same amount per unit as for dividends declared on the Company's Common Stock. The impact of the Class A Unit distributions on earnings per share has been calculated using the two-class method whereby earnings are allocated to the Class A Units based on dividends declared and the Class A Units' participation rights in undistributed earnings. (B) The Company’s shares of Series A Preferred Stock outstanding accrue dividends at an annual rate of 6% of the stated value of $1,000 per share, payable monthly. The Company had 1,991 and 1,932 outstanding shares of Series A Preferred Stock at September 30, 2020 and 2019, respectively and 103 outstanding shares of Series A1 Preferred Stock at September 30, 2020. The Company's shares of Series M preferred stock, or mShares, accrue dividends at an escalating rate of 5.75% in year one to 7.50% in year eight and thereafter. The Company had 91 and 90 mShares outstanding at September 30, 2020 and 2019, respectively. The Company's shares of Series M1 preferred stock accrue dividends at an escalating rate of 6.1% in year one to 7.1% in year ten and thereafter. The Company had 13 shares of Series M1 preferred stock outstanding at September 30, 2020. (C) The Company's outstanding unvested restricted share awards (548 and 20 shares of Common Stock at September 30, 2020 and 2019, respectively) contain non-forfeitable rights to distributions or distribution equivalents. The impact of the unvested restricted share awards on earnings per share has been calculated using the two-class method whereby earnings are allocated to the unvested restricted share awards based on dividends declared and the unvested restricted shares' participation rights in undistributed earnings. Given the Company's unvested restricted share awards are defined as participating securities, the dividends declared for that period are adjusted in determining the calculation of loss per share of Common Stock. (D) Potential dilution from (i) warrants outstanding from issuances of Units from our Series A Preferred Stock offerings that are potentially exercisable into 27,767 shares of Common Stock; (ii) 65 Class B Units; (iii) 548 shares of unvested restricted common stock; (iv) 54 outstanding Restricted Stock Units; and (v) 273 Performance-based Restricted Stock Units are excluded from the diluted shares calculations because the effect was antidilutive. Class A Units were excluded from the denominator because earnings were allocated to non-controlling interests in the calculation of the numerator.
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Fair Values of Financial Instruments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Values of Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Financial Instruments | Fair Values of Financial Instruments Fair value is defined as the price at which an asset or liability is exchanged between market participants in an orderly transaction at the reporting date. The Company’s cash equivalents, notes receivable, accounts receivable and payables and accrued expenses all approximate fair value due to their short term nature. The following tables provide estimated fair values of the Company’s financial instruments. The carrying values of the Company's real estate loans include accrued interest receivable from additional interest or exit fee provisions and are presented net of deferred loan fee revenue and credit losses reserves, where applicable.
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Subsequent Events |
9 Months Ended |
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Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Between October 1, 2020 and October 31, 2020, the Company issued 13,986 shares of Series A1 Redeemable Preferred Stock and collected net proceeds of approximately $12.6 million after commissions and fees and issued 2,914 shares of Series M1 Redeemable Preferred Stock and collected net proceeds of approximately $2.8 million after commissions and fees. During the same period, the Company redeemed 23,468 shares of Series A Preferred Stock and 862 shares of Series M1 Preferred Stock, or mShares. On November 2, 2020, the Company closed on the acquisition of The Blake, a 281-unit multifamily community located in Orlando, Florida. On November 3, 2020, the Company announced via a press release the closing on that day of the sale of student housing assets to an unrelated third party for a sales price of approximately $478.7 million. On November 5, 2020, the Company's board of directors declared a quarterly dividend on our Common Stock of $0.175 per share, payable on January 15, 2021 to stockholders of record on December 15, 2020. Even though this dividend will be paid in 2021, if and to the extent this dividend is taxable, the Company intends for this dividend to be taxable in 2020.
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Operating Leases (Notes) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Leases | Operating Leases Company as Lessor For the nine months ended September 30, 2020 and 2019, the Company recognized rental property revenues of $330.4 million and $290.0 million, respectively, of which $31.2 million and $29.2 million, respectively, represented variable rental revenue. Company as Lessee The Company has three ground leases related to our office and grocery-anchored shopping center assets that generally have extended terms (e.g. over twenty years with multiple renewal options) and generally have base rent with CPI-based increases. The Company evaluated its renewal option periods in quantifying its asset and liability related to these ground leases. In determining the value of its right of use asset and lease liability, the Company used discount rates comparable to recent loan rates obtained on comparative properties within its portfolio. The Company is also, as of January 31, 2020 following the Internalization, the lessee of office space for its property support center which expires in May 2026, and of furniture and office equipment, which leases generally are to five years in duration with minimal rent increases. The Company recorded lease expense as follows:
Future minimum rent expense for office space, ground leases and office equipment were:
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Operating Leases | Operating Leases Company as Lessor For the nine months ended September 30, 2020 and 2019, the Company recognized rental property revenues of $330.4 million and $290.0 million, respectively, of which $31.2 million and $29.2 million, respectively, represented variable rental revenue. Company as Lessee The Company has three ground leases related to our office and grocery-anchored shopping center assets that generally have extended terms (e.g. over twenty years with multiple renewal options) and generally have base rent with CPI-based increases. The Company evaluated its renewal option periods in quantifying its asset and liability related to these ground leases. In determining the value of its right of use asset and lease liability, the Company used discount rates comparable to recent loan rates obtained on comparative properties within its portfolio. The Company is also, as of January 31, 2020 following the Internalization, the lessee of office space for its property support center which expires in May 2026, and of furniture and office equipment, which leases generally are to five years in duration with minimal rent increases. The Company recorded lease expense as follows:
Future minimum rent expense for office space, ground leases and office equipment were:
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Significant Accounting Policies Basis of Presentation (Policies) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment Assessment The Company evaluates its tangible and identifiable intangible real estate assets for impairment when events such as declines in a property’s operating performance, deteriorating market conditions, or environmental or legal concerns bring recoverability of the carrying value of one or more assets into question. When qualitative factors indicate the possibility of impairment, the total undiscounted cash flows of the property, including proceeds from disposition, are compared to the net book value of the property. If this test indicates that impairment exists, an impairment loss is recorded in earnings equal to the shortage of the book value to fair value, calculated as the discounted net cash flows of the property. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | s | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements
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Organization (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Error Corrections and Prior Period Adjustments | The Company recorded certain reclassification adjustments on its Condensed Consolidated Statement of Operations for the three-month and nine-month periods ended September 30, 2019, to conform prior period presentation to the current presentation reflective of the internalized structure as shown in the table below. None of these reclassification adjustments were due to error or misstatement.
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Real Estate Assets (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
real estate owned [Table Text Block] | The Company's real estate assets consisted of:
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The Company allocated the purchase prices to the acquired assets and liabilities based upon their fair values, as shown in the following table. The purchase price allocation was based upon the Company's best estimates of the fair values of the acquired assets and liabilities.
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schedule of depreciation and amortization expense [Table Text Block] | The Company recorded aggregate amortization and depreciation expense of:
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Schedule of Joint Venture Activity | The following tables summarize the balance sheet and statements of income data for Neapolitan Way shopping center subsequent to its contribution into the joint venture as of and for the periods presented:
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multifamily community [Domain] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Table of Properties Acquired | During the nine-month period ended September 30, 2020, the Company completed the acquisition of the following multifamily communities:
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The Company allocated the purchase prices and capitalized acquisition costs to the acquired assets and liabilities based upon their fair values, as shown in the following table. The purchase price allocations were based upon the Company's best estimates of the fair values of the acquired assets and liabilities.
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student housing community [Domain] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The Company allocated the asset's fair value and capitalized acquisition costs to the acquired assets and liabilities based upon their fair values, as shown in the following table. The purchase price allocations were based upon the Company's best estimates of the fair values of the acquired assets and liabilities.
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Retail Segment [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Table of Properties Acquired | During the nine-month periods ended September 30, 2020 and 2019, the Company completed the acquisition of the following grocery-anchored shopping centers:
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Real Estate Loans, Notes Receivable, and Lines of Credit (Tables) |
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Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] |
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Notes receivable [Table Text Block] | portfolio of notes and lines of credit receivable consisted of:
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interest income [Table Text Block] | The Company recorded interest income and other revenue from these instruments as follows:
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Real Estate Loan Investments Receivable, By Final Reserve Ratio | The following table presents the Company's aggregation of loan amounts by final reserve ratio as of September 30, 2020:
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Redeemable Preferred Stock Proceeds and offering costs (Tables) |
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Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stockholders Equity [Table Text Block] | Cumulative gross proceeds and offering costs for our active equity offerings consisted of:
(1) The Series A $1.5 billion unit offering expired in Q1 2020 and therefore all remaining deferred offering costs were reclassified as reductions of stockholder's equity in Q1 2020. (2) The $125 million ATM Offering is a part of the $400 million Shelf Offering and therefore it is not included in the total. (3) These offering costs specifically identifiable to Unit offering closing transactions, such as commissions, dealer manager fees, and other registration fees, are reflected as a reduction of stockholders' equity at the time of closing.
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Related Party Transactions (Tables) |
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Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions [Table Text Block] |
In addition to property management fees, the Company incurred the following reimbursable on-site personnel salary and related benefits expenses at the properties, which are listed on the Consolidated Statements of Operations:
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Dividends (Tables) |
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Dividends [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Dividends Payable | The Company's dividend and distribution activity consisted of:
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Equity Compensation (Tables) |
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Equity Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
equity compensation expense [Table Text Block] | Equity compensation expense by award type for the Company was:
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Performance Shares, Schedule of Percentile Rank [Table Text Block] | PSUs will become earned PSUs according to the percentile rank of the TSR of Company's Common Stock versus the peer group’s average TSR, as shown in the following table:
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Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Restricted Stock Grants The following annual grants of restricted stock were made to members of the Company's independent directors, as payment of the annual retainer fees. The restricted stock grants for service years 2017-2019 vested (or are scheduled to vest) on a pro-rata basis over the four consecutive 90-day periods following the date of grant. The restricted stock grant for service year 2020 is scheduled to vest on the -year anniversary of the date of grant.
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Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The underlying valuation assumptions and result for the Performance RSU award was:
The underlying valuation assumptions and results for the 2018 Class B OP Unit awards were:
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Indebtedness (Tables) |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | Mortgage financing of property acquisitions During the nine-month period ended September 30, 2020, the Company obtained original mortgage financing on the following properties as shown in the following table:
The following table summarizes our mortgage notes payable at September 30, 2020:
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debt covenant [Table Text Block] | As of September 30, 2020, the Company was in compliance with all covenants related to the Revolving Line of Credit, as shown in the following table:
(1) All covenants are as defined in the credit agreement for the Revolving Line of Credit. (2) Calculated on a trailing four-quarter basis, except for Common Stock dividends, which are annualized off of the trailing two quarters' dividend. For the year ended September 30, 2020, the maximum dividends and distributions allowed under this covenant was approximately $179.8 million. (3) Adjusted to exclude the effect of costs incurred with internalization.
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mortgage interest [Table Text Block] | c | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | The Company’s estimated future principal payments due on its debt instruments as of September 30, 2020 were:
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Schedule of Debt [Table Text Block] | Interest expense, including amortization of deferred loan costs was:
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Segment information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
segment assets [Table Text Block] | The following tables present the Company's assets, revenues, and NOI results by reportable segment, as well as a reconciliation from NOI to net income (loss). The assets attributable to 'Other' primarily consist of deferred offering costs recorded but not yet reclassified as reductions of stockholders' equity and cash balances at the Company and Operating Partnership levels.
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Capital Expenditures By Segment | Total capitalized expenditures (inclusive of additions to construction in progress, but exclusive of the purchase price of acquisitions) for the three-month and nine-month periods ended September 30, 2020 and 2019 were as follows:
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Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Total revenues by reportable segment of the Company were:
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Schedule of Segment Reporting Information, by Segment [Table Text Block] | Segment NOI for each reportable segment for the three-month and nine-month periods ended September 30, 2020 and 2019 were as follows:
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Income (Loss) per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method | The following is a reconciliation of weighted average basic and diluted shares outstanding used in the calculation of income (loss) per share of Common Stock:
(A) The Company's outstanding Class A Units of the Operating Partnership (742 and 856 Units at September 30, 2020, and 2019, respectively) contain rights to distributions in the same amount per unit as for dividends declared on the Company's Common Stock. The impact of the Class A Unit distributions on earnings per share has been calculated using the two-class method whereby earnings are allocated to the Class A Units based on dividends declared and the Class A Units' participation rights in undistributed earnings. (B) The Company’s shares of Series A Preferred Stock outstanding accrue dividends at an annual rate of 6% of the stated value of $1,000 per share, payable monthly. The Company had 1,991 and 1,932 outstanding shares of Series A Preferred Stock at September 30, 2020 and 2019, respectively and 103 outstanding shares of Series A1 Preferred Stock at September 30, 2020. The Company's shares of Series M preferred stock, or mShares, accrue dividends at an escalating rate of 5.75% in year one to 7.50% in year eight and thereafter. The Company had 91 and 90 mShares outstanding at September 30, 2020 and 2019, respectively. The Company's shares of Series M1 preferred stock accrue dividends at an escalating rate of 6.1% in year one to 7.1% in year ten and thereafter. The Company had 13 shares of Series M1 preferred stock outstanding at September 30, 2020. (C) The Company's outstanding unvested restricted share awards (548 and 20 shares of Common Stock at September 30, 2020 and 2019, respectively) contain non-forfeitable rights to distributions or distribution equivalents. The impact of the unvested restricted share awards on earnings per share has been calculated using the two-class method whereby earnings are allocated to the unvested restricted share awards based on dividends declared and the unvested restricted shares' participation rights in undistributed earnings. Given the Company's unvested restricted share awards are defined as participating securities, the dividends declared for that period are adjusted in determining the calculation of loss per share of Common Stock. (D) Potential dilution from (i) warrants outstanding from issuances of Units from our Series A Preferred Stock offerings that are potentially exercisable into 27,767 shares of Common Stock; (ii) 65 Class B Units; (iii) 548 shares of unvested restricted common stock; (iv) 54 outstanding Restricted Stock Units; and (v) 273 Performance-based Restricted Stock Units are excluded from the diluted shares calculations because the effect was antidilutive. Class A Units were excluded from the denominator because earnings were allocated to non-controlling interests in the calculation of the numerator.
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Fair Values of Financial Instruments (Tables) |
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Fair Values of Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements, Nonrecurring [Table Text Block] | The following tables provide estimated fair values of the Company’s financial instruments. The carrying values of the Company's real estate loans include accrued interest receivable from additional interest or exit fee provisions and are presented net of deferred loan fee revenue and credit losses reserves, where applicable.
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Operating Leases (Tables) |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum rent expense for office space, ground leases and office equipment were:
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Lease, Cost | The Company recorded lease expense as follows:
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Organization (Details) |
Sep. 30, 2020
state
number_of_properties
$ / shares
shares
|
Dec. 31, 2019
$ / shares
shares
|
---|---|---|
Class of Stock [Line Items] | ||
Number of Real Estate Properties | number_of_properties | 125 | |
Number Of States With Real Estate Properties | state | 15 | |
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | |
Common Stock, Shares, Outstanding | 49,900,555 | |
Noncontrolling Interest, Ownership Percentage by Parent | 98.50% | |
minority interest partnership units outstanding | 742,413 | |
daycountvolweightedavgcalcformarketvalue | 20 | |
Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 |
Common Stock, Shares, Outstanding | 49,901,000 | 46,443,000 |
Real Estate Assets - Table of Properties Acquired (Details) |
Sep. 30, 2020
ft²
|
Sep. 30, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019
ft²
|
---|---|---|---|---|
Business Acquisition | ||||
Number of units in real estate property | 680 | 12,936 | 12,256 | |
Net Rentable Area | 161,526 | 913,732 | ||
Parkside at the Beach [Member] | ||||
Business Acquisition | ||||
Number of units in real estate property | 288 | |||
Horizon At Wiregrass [Member] | ||||
Business Acquisition | ||||
Number of units in real estate property | 392 | |||
wakefield crossing [Domain] | ||||
Business Acquisition | ||||
Net Rentable Area | 75,927 | |||
Midway Market | ||||
Business Acquisition | ||||
Net Rentable Area | 85,599 | |||
Gayton Crossing | ||||
Business Acquisition | ||||
Net Rentable Area | 158,316 | |||
Free State Shopping Center | ||||
Business Acquisition | ||||
Net Rentable Area | 264,152 | |||
Disston Plaza | ||||
Business Acquisition | ||||
Net Rentable Area | 129,150 | |||
Polo Grounds Mall | ||||
Business Acquisition | ||||
Net Rentable Area | 130,285 | |||
Fairfield Shopping Center [Member] | ||||
Business Acquisition | ||||
Net Rentable Area | 231,829 |
Real Estate Assets - Depreciation and Amortization (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Depreciation: | ||||
Depreciation | $ 41,867,000 | $ 37,805,000 | $ 123,943,000 | $ 110,647,000 |
Depreciation and amortization | 51,794,000 | 46,239,000 | 153,096,000 | 137,191,000 |
Building and Building Improvements [Member] | ||||
Depreciation: | ||||
Depreciation | 29,050,000 | 25,509,000 | 85,811,000 | 72,686,000 |
Furniture and Fixtures [Member] | ||||
Depreciation: | ||||
Depreciation | 12,817,000 | 12,296,000 | 38,132,000 | 37,961,000 |
Finite-Lived Intangible Assets [Member] | ||||
Depreciation: | ||||
Amortization of Intangible Assets | 9,510,000 | 8,169,000 | 27,873,000 | 25,732,000 |
Lease Agreements [Member] | ||||
Depreciation: | ||||
Amortization of Deferred Leasing Fees | 368,000 | 217,000 | 1,132,000 | 670,000 |
Website Development [Member] | ||||
Depreciation: | ||||
amortization website development costs | $ 49,000 | $ 48,000 | $ 148,000 | $ 142,000 |
Real Estate Loans, Notes Receivable, and Lines of Credit Interest income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Receivables [Abstract] | ||||
interest revenue current pay | $ 6,921 | $ 8,083 | $ 21,070 | $ 23,031 |
Accrued exit fee revenue | 3,052 | 3,471 | 9,208 | 10,040 |
Deferred Revenue, Revenue Recognized | 264 | 283 | 791 | 1,063 |
amortization of purchase option termination fee income | 421 | 1,283 | 4,896 | 6,900 |
default interest accrued | 63 | 0 | 186 | 0 |
Net loan fee revenue | 10,721 | 13,120 | 36,151 | 41,034 |
interest revenue notes receivable | 536 | 1,865 | 2,056 | 4,278 |
Interest Income, Deposit Accounts | 1 | 169 | 38 | 562 |
Interest Income, Securities, Mortgage Backed | 0 | 0 | 0 | 95 |
Interest income on loans and notes receivable | $ 11,258 | $ 15,154 | $ 38,245 | $ 45,969 |
Acquired Intangible Assets amortization (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Liabilities | $ 86,000,000.0 | |||
Total consideration | $ 90,664,000 | |||
Revenues | $ 126,697,000 | $ 120,203,000 | 381,076,000 | 345,561,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 26,746,000 | 26,086,000 | (102,321,000) | 75,093,000 |
Business Acquisition, Transaction Costs | $ 1,016,000 | $ 1,016,000 | ||
Multifamily communities [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total consideration | $ 141,200,000 |
Dividends Series A Preferred Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Dividends Payable [Line Items] | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.175 | $ 0.2625 | $ 0.6125 | $ 0.785 |
Dividends, Preferred Stock, Cash | $ 135,055 | $ 117,809 | ||
Distribution Made to Limited Partner, Cash Distributions Declared | 559 | 683 | ||
dividends common stock declared | 29,895 | 34,599 | ||
Series A Preferred Stock [Member] | ||||
Dividends Payable [Line Items] | ||||
Dividends, Preferred Stock, Cash | 97,272 | 79,351 | ||
Series M Preferred Stock [Member] | ||||
Dividends Payable [Line Items] | ||||
Dividends, Preferred Stock, Cash | 4,903 | 3,176 | ||
Series A1 Preferred Stock | ||||
Dividends Payable [Line Items] | ||||
Dividends, Preferred Stock, Cash | 2,209 | 0 | ||
Series M1 Preferred Stock | ||||
Dividends Payable [Line Items] | ||||
Dividends, Preferred Stock, Cash | $ 217 | $ 0 |
Dividends NCI (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Equity [Abstract] | ||
Distribution Made to Limited Partner, Cash Distributions Declared | $ 559 | $ 683 |
Equity Compensation Committee Fee Grants (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jan. 02, 2018 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation | $ (152,000) | $ 0 | $ 5,463,000 | $ 0 | ||
ClassBUnits [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 256,087 | |||||
Share-based Compensation | $ 65,000 | |||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation | $ 548,000 | |||||
Performance based restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 272,929 |
Equity Compensation Warrant (Details) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.175 | $ 0.2625 | $ 0.6125 | $ 0.785 |
Indebtedness debt covenants (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Mar. 23, 2018 |
|
debt covenants [Line Items] | ||
dividend restriction AFFO | 95.00% | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000,000 | |
maximum dividends debt covenant | $ 179,800,000 | |
Minimum Net Worth Required for Compliance | $ 1,900,000,000 | |
debt yield | 9.89% | |
payout ratio | 88.10% | |
Total leverage ratio | 63.70% |
Income Taxes (Details) - USD ($) |
Sep. 30, 2020 |
Dec. 31, 2010 |
---|---|---|
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets, Net of Valuation Allowance | $ 298,100 | |
DeferredTaxAssetsValuationAllowancePercentage | 100.00% |
Commitments and Contingencies (Details) - USD ($) $ in Millions |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Jan. 31, 2020 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
Lease term | 11 years | ||
Rent | $ 15.3 | ||
cumulative manager's fees deferred | 25.6 | $ 24.1 | |
Unfunded Tenant Leasing Commissions and Tenant Allowances | 6.2 | ||
real estate loan balances unfunded | $ 63.0 |
Schedule IV (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Mar. 31, 2020 |
Sep. 30, 2020 |
|
Mortgage Loans on Real Estate [Line Items] | ||
current interest rate | 8.48% | 8.50% |
Deferred interest rate | 3.85% | 3.84% |
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 309,601 |
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