(State or other jurisdiction of | (I.R.S. Employer Identification No.) | |||||||
incorporation or organization) |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Large accelerated filer ☐ | ||||||||
Non-accelerated filer ☐ | Smaller reporting company | |||||||
Page No. | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 2. | ||||||||
Item 6. |
September 30, 2019 | December 31, 2018 | ||||||||||
ASSETS | |||||||||||
Real estate properties, net of accumulated depreciation and amortization of $117,534 and $91,715 | $ | $ | |||||||||
Real estate loan | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Deposits and escrows | |||||||||||
Investments in unconsolidated joint ventures | |||||||||||
Other assets | |||||||||||
Total Assets (a) | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Liabilities: | |||||||||||
Mortgages payable, net of deferred costs of $6,550 and $6,289 | $ | $ | |||||||||
Junior subordinated notes, net of deferred costs of $342 and $357 | |||||||||||
Credit facility, net of deferred costs of $70 and $0 | |||||||||||
Accounts payable and accrued liabilities | |||||||||||
Total Liabilities (a) | |||||||||||
Commitments and contingencies | |||||||||||
Equity: | |||||||||||
BRT Apartments Corp. stockholders' equity: | |||||||||||
Preferred shares $.01 par value 2,000 shares authorized, none outstanding | |||||||||||
Common stock, $.01 par value, 300,000 shares authorized; | |||||||||||
15,227 and 15,038 shares outstanding | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive (loss) income | ( | ||||||||||
Accumulated deficit | ( | ( | |||||||||
Total BRT Apartments Corp. stockholders’ equity | |||||||||||
Non-controlling interests | |||||||||||
Total Equity | |||||||||||
Total Liabilities and Equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rental revenue | $ | $ | $ | $ | |||||||||||||||||||
Other income | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Real estate operating expenses - including $960 and $896 to related parties for the three months ended and $2,877 and $2,583 for the nine months ended | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
General and administrative - including $105 and $109 to related parties for the three months ended and $403 and $416 for the nine months ended | |||||||||||||||||||||||
Depreciation | |||||||||||||||||||||||
Total expenses | |||||||||||||||||||||||
Total revenues less total expenses | ( | ( | ( | ( | |||||||||||||||||||
Equity in loss of unconsolidated joint ventures | ( | ( | ( | ( | |||||||||||||||||||
Gain on sale of real estate | |||||||||||||||||||||||
Gain on insurance recoveries | |||||||||||||||||||||||
Loss on extinguishment of debt | ( | ( | ( | ||||||||||||||||||||
Income (loss) from continuing operations | ( | ( | |||||||||||||||||||||
Income tax provision (benefit) | ( | ||||||||||||||||||||||
Net income (loss) from continuing operations, net of taxes | ( | ( | |||||||||||||||||||||
Net (income) loss attributable to non-controlling interests | ( | ( | |||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | $ | ( | $ | ( | $ | |||||||||||||||||
Weighted average number of shares of common stock outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Per share amounts attributable to common stockholders: | |||||||||||||||||||||||
Basic | $ | $ | ( | $ | ( | $ | |||||||||||||||||
Diluted | $ | $ | ( | $ | ( | $ | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | ( | $ | |||||||||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||
Unrealized (loss) gain on derivative instruments | ( | ( | |||||||||||||||||||||
Other comprehensive (loss) income | ( | ( | |||||||||||||||||||||
Comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Comprehensive loss (income) attributable to non-controlling interests | ( | ||||||||||||||||||||||
Comprehensive income (loss) attributable to common stockholders | $ | $ | ( | $ | ( | $ |
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (loss) | Accumulated Deficit | Non- Controlling Interest | Total | ||||||||||||||||||||||||||||||
Balances, December 31, 2018 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Distributions - common stock - $0.20 per share | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Restricted stock vesting | ( | — | — | — | |||||||||||||||||||||||||||||||
Compensation expense - restricted stock and restricted stock units | — | — | — | — | |||||||||||||||||||||||||||||||
Consolidation of investment in limited partnership | — | — | — | — | |||||||||||||||||||||||||||||||
Contributions from non-controlling interests | — | — | — | — | |||||||||||||||||||||||||||||||
Distributions to non-controlling interests | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Net loss | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||
Comprehensive loss | ( | ||||||||||||||||||||||||||||||||||
Balances, March 31, 2019 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Distributions - common stock - $0.20 per share | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Compensation expense - restricted stock and restricted stock units | — | — | — | — | |||||||||||||||||||||||||||||||
Contributions from non-controlling interests | — | — | — | — | |||||||||||||||||||||||||||||||
Distributions to non-controlling interests | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Shares repurchased | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||
Net loss | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||
Comprehensive loss | ( | ||||||||||||||||||||||||||||||||||
Balances, June 30, 2019 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Distributions - common stock - $0.22 per share | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Compensation expense - restricted stock and restricted stock units | — | — | — | — | |||||||||||||||||||||||||||||||
Contributions from non-controlling interests | — | — | — | — | |||||||||||||||||||||||||||||||
Distributions to non-controlling interests | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Shares issued through equity offering program, net | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||
Comprehensive loss | |||||||||||||||||||||||||||||||||||
Balances, September 30, 2019 | $ | $ | $ | ( | $ | ( | $ | $ |
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Non- Controlling Interest | Total | ||||||||||||||||||||||||||||||
Balances, December 31, 2017 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Distributions - common stock - $0.20 per share | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Restricted stock vesting | ( | — | — | — | |||||||||||||||||||||||||||||||
Compensation expense - restricted stock and restricted stock units | — | — | — | — | |||||||||||||||||||||||||||||||
Consolidation of investment in limited partnership | — | — | — | — | |||||||||||||||||||||||||||||||
Contributions from non-controlling interests | — | — | — | — | |||||||||||||||||||||||||||||||
Distributions to non-controlling interests | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Purchase of non-controlling interest | — | ( | — | — | ( | ( | |||||||||||||||||||||||||||||
Shares issued through equity offering program, net | — | — | — | ||||||||||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | ||||||||||||||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||||||||||||||
Balances, March 31, 2018 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Distributions - common stock - $0.20 per share | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Compensation expense - restricted stock and restricted stock units | — | — | — | — | |||||||||||||||||||||||||||||||
Contributions from non-controlling interests | — | — | — | — | |||||||||||||||||||||||||||||||
Distributions to non-controlling interests | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Shares issued through equity offering program, net | — | — | — | ||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | ||||||||||||||||||||||||||||||||
Comprehensive loss | ( | ||||||||||||||||||||||||||||||||||
Balances, June 30, 2018 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Distributions - common stock - $0.20 per share | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Compensation expense - restricted stock and restricted stock units | — | — | — | — | |||||||||||||||||||||||||||||||
Distributions to non-controlling interests | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Purchase of non-controlling interest | — | ( | — | — | ( | ( | |||||||||||||||||||||||||||||
Shares issued through equity offering program, net | — | — | — | ||||||||||||||||||||||||||||||||
Shares repurchased | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||
Net loss | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | ||||||||||||||||||||||||||||||||
Comprehensive loss | ( | ||||||||||||||||||||||||||||||||||
Balances, September 30, 2018 | $ | $ | $ | $ | ( | $ | $ |
Nine Months Ended September 30, | |||||||||||
2019 | 2018 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net (loss) income | $ | ( | $ | ||||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||
Depreciation | |||||||||||
Amortization of deferred financing costs | |||||||||||
Amortization of restricted stock and restricted stock units | |||||||||||
Equity in loss of unconsolidated joint ventures | |||||||||||
Gain on sale of real estate | ( | ( | |||||||||
Gain on insurance recovery | ( | ( | |||||||||
Loss on extinguishment of debt | |||||||||||
Increases and decreases from changes in other assets and liabilities: | |||||||||||
Decrease in deposits and escrows | |||||||||||
(Increase) decrease in other assets | ( | ||||||||||
Decrease in accounts payable and accrued liabilities | |||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Collections from real estate loan | |||||||||||
Additions to real estate properties | ( | ( | |||||||||
Improvements to real estate properties | ( | ( | |||||||||
Investment in joint venture | ( | ( | |||||||||
Purchase of non-controlling interests | ( | ||||||||||
Consolidation of investment in joint venture | |||||||||||
Net proceeds from the sale of real estate properties | |||||||||||
Distributions from unconsolidated joint ventures | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from mortgages payable | |||||||||||
Mortgage payoffs | ( | ( | |||||||||
Mortgage principal payments | ( | ( | |||||||||
Proceeds from credit facility | |||||||||||
Repayment of credit facility | ( | ||||||||||
Increase in deferred financing costs | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Contributions from non-controlling interests | |||||||||||
Distributions to non-controlling interests | ( | ( | |||||||||
Proceeds from the sale of common stock | |||||||||||
Repurchase of shares of common stock | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ |
Nine Months Ended September 30, | |||||||||||
2019 | 2018 | ||||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid during the period for interest, net of capitalized interest of $860 and $174, respectively | $ | $ | |||||||||
Taxes paid | $ | $ | |||||||||
Acquisition of real estate through assumption of debt | $ | $ | |||||||||
Consolidation of investment in joint venture: | |||||||||||
Increase in real estate assets | $ | ( | $ | ||||||||
Increase in deposits and escrows | ( | ||||||||||
Increase in other assets | ( | ||||||||||
Increase in mortgage payable | |||||||||||
Increase in deferred financing costs | ( | ||||||||||
Increase in accounts payable and accrued liabilities | |||||||||||
Increase in non controlling interest | |||||||||||
Decrease in investment in joint venture | |||||||||||
Increase in cash upon consolidation of joint venture | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Numerator for basic and diluted earnings (loss) per share attributable to common stockholders: | |||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | $ | ( | ( | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Denominator for basic earnings per share—weighted average number of shares | |||||||||||||||||||||||
Effect of diluted securities | |||||||||||||||||||||||
Denominator for diluted earnings per share—adjusted weighted average number of shares and assumed conversions | |||||||||||||||||||||||
Basic earnings (loss) per share | $ | $ | ( | $ | ( | $ | |||||||||||||||||
Diluted earnings (loss) per share | $ | $ | ( | $ | ( | $ |
September 30, 2019 | December 31, 2018 | |||||||||||||
Land | $ | $ | ||||||||||||
Building | ||||||||||||||
Building improvements | ||||||||||||||
Real estate properties | ||||||||||||||
Accumulated depreciation | ( | ( | ||||||||||||
Total real estate properties, net | $ | $ |
| December 31, 2018 Balance | Additions | Capitalized Costs and Improvements | Depreciation | Sales | September 30, 2019 Balance | ||||||||||||||||||||||||||||||||
Multi-family | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||
Multi-family lease-up -West Nashville, TN | ( | |||||||||||||||||||||||||||||||||||||
Land - Daytona, FL | ||||||||||||||||||||||||||||||||||||||
Shopping centers/Retail - Yonkers, NY | ( | |||||||||||||||||||||||||||||||||||||
Total real estate properties | $ | $ | $ | $ | ( | $ | ( | $ |
Allocation of Purchase Price | ||||||||
Land | $ | |||||||
Building and improvements | ||||||||
Acquisition-related intangible assets | ||||||||
Total consideration | $ |
Location | Purchase Date | No. of Units | Purchase Price | Acquisition Mortgage Debt | Initial BRT Equity | Ownership Percentage | Capitalized Acquisition Costs | |||||||||||||||||||||||||||||||||||||
Kannapolis, North Carolina | 3/12/2019 | $ | $ | $ | % | $ | ||||||||||||||||||||||||||||||||||||||
Birmingham, Alabama | 5/7/2019 | % | ||||||||||||||||||||||||||||||||||||||||||
Auburn, Alabama | 8/8/2019 | % | ||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ |
Location | Purchase Date | No. of Units | Purchase Price | Acquisition Mortgage Debt | Initial BRT Equity | Ownership Percentage | Capitalized Acquisition Costs | |||||||||||||||||||||||||||||||||||||
Ocoee, FL | 2/7/2018 | $ | $ | $ | % | $ | ||||||||||||||||||||||||||||||||||||||
Lawrenceville, GA | 2/15/2018 | % | ||||||||||||||||||||||||||||||||||||||||||
Daytona, FL | 4/30/2018 | % | ||||||||||||||||||||||||||||||||||||||||||
Grand Prairie, TX | 5/17/2018 | % | ||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ |
Location | Sale Date | No. of Units | Sales Price | Gain on Sale | Non-controlling partner's portion of the gain | ||||||||||||||||||||||||
Houston, TX (two properties) | 7/11/2019 | $ | $ | $ |
Location | Sale Date | No. of Units | Sales Price | Gain on Sale | Non-controlling partner's portion of the gain | ||||||||||||||||||||||||
New York, NY | 1/18/2018 | $ | $ | $ | |||||||||||||||||||||||||
Valley, AL | 2/23/2018 | ||||||||||||||||||||||||||||
Palm Beach Gardens, FL | 2/25/2018 | $ | |||||||||||||||||||||||||||
New York, NY | 8/15/2018 | ||||||||||||||||||||||||||||
$ | $ | $ |
September 30, 2019 (unaudited) | December 31, 2018 (unaudited) | |||||||||||||
ASSETS | ||||||||||||||
Real estate properties, net of accumulated depreciation of $67,264 and $53,637 | $ | $ | ||||||||||||
Cash and cash equivalents | ||||||||||||||
Deposits and escrows | ||||||||||||||
Other assets | ||||||||||||||
Total Assets | $ | $ | ||||||||||||
LIABILITIES | ||||||||||||||
Mortgages payable, net of deferred costs of $4,209 and $3,786 | $ | $ | ||||||||||||
Accounts payable and accrued liabilities | ||||||||||||||
Total Liabilities | $ | $ |
Location | Number of Units | Carrying Value of Investment | Mortgage Balance | Percent Ownership | ||||||||||||||||||||||
Columbia, SC | $ | $ | % | |||||||||||||||||||||||
Columbia, SC (a) | % | |||||||||||||||||||||||||
Forney, TX (b) | % | |||||||||||||||||||||||||
Other investments | N/A | N/A | N/A | |||||||||||||||||||||||
$ | $ |
September 30, 2019 | December 31, 2018 | |||||||||||||
Mortgages payable | $ | $ | ||||||||||||
Junior subordinated notes | ||||||||||||||
Credit facility | ||||||||||||||
Deferred financing costs | ( | ( | ||||||||||||
Total debt obligations, net of deferred costs | $ | $ |
Location | Closing Date | Acquisition Mortgage Debt | Interest Rate | Interest only period | Maturity Date | |||||||||||||||||||||||||||
Kannapolis, NC | 3/12/19 | $ | % | — | 3/1/2052 | |||||||||||||||||||||||||||
Birmingham, AL | 5/7/19 | % | 6/1/2029 | |||||||||||||||||||||||||||||
Auburn, AL | 8/8/19 | % | 9/1/2031 | |||||||||||||||||||||||||||||
$ | ||||||||||||||||||||||||||||||||
Location | Closing Date | Maximum Loan Amount | Amount outstanding | Interest Rate | Maturity Date | Extension Option | ||||||||||||||||||||||||||||||||
West Nashville,TN | 6/2/2017 | $ | $ | 30 day LIBOR + 2.85% | 6/2/2022 | N/A | ||||||||||||||||||||||||||||||||
Carrying and Fair Value | Fair Value Measurements Using Fair Value Hierarchy | ||||||||||||||||
Level 1 | Level 2 | ||||||||||||||||
Financial Assets: | |||||||||||||||||
Interest rate swaps | $ | $ | |||||||||||||||
Total Financial Assets | $ | $ | |||||||||||||||
Financial Liabilities: | |||||||||||||||||
Interest rate swap | $ | $ | |||||||||||||||
Interest Rate Derivative | Current Notional Amount | Fixed Rate | Maturity | |||||||||||||||||
Interest rate swap | $ | % | April 1, 2022 | |||||||||||||||||
Interest rate swap | % | May 6, 2023 |
Derivatives as of: | ||||||||||||||||||||
September 30, 2019 | December 31, 2018 | |||||||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||||||
Other Assets | $ | Other Assets | $ | |||||||||||||||||
Accounts payable and accrued liabilities | $ | Accounts payable and accrued liabilities | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
Amount of (loss) gain recognized on derivative in Other Comprehensive Income | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
Amount of (loss) gain reclassified from Accumulated Other Comprehensive Income into Interest expense | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
Total amount of Interest expense presented in the Consolidated Statement of Operations | $ | $ | $ | $ |
Three Months Ended September 30, | ||||||||||||||||||||||||||
(Dollars in thousands): | 2019 | 2018 | Increase (Decrease) | % Change | ||||||||||||||||||||||
Rental revenue | $ | 33,875 | $ | 31,283 | $ | 2,592 | 8.3 | |||||||||||||||||||
Other income | 161 | 198 | (37) | (18.7) | ||||||||||||||||||||||
Total revenues | $ | 34,036 | $ | 31,481 | $ | 2,555 | 8.1 |
Three Months Ended September 30, | ||||||||||||||||||||||||||
(Dollars in thousands) | 2019 | 2018 | Increase (Decrease) | % Change | ||||||||||||||||||||||
Real estate operating expenses | $ | 16,281 | $ | 15,661 | $ | 620 | 4.0 | |||||||||||||||||||
Interest expense | 9,845 | 8,965 | 880 | 9.8 | ||||||||||||||||||||||
General and administrative | 2,430 | 2,002 | 428 | 21.4 | ||||||||||||||||||||||
Depreciation | 9,950 | 10,416 | (466) | (4.5) | ||||||||||||||||||||||
Total expenses | $ | 38,506 | $ | 37,044 | $ | 1,462 | 3.9 |
Three Months Ended September 30, | ||||||||||||||||||||||||||
(Dollars in thousands) | 2019 | 2018 | Increase (Decrease) | % Change | ||||||||||||||||||||||
Equity in loss of unconsolidated joint ventures | (259) | $ | (174) | $ | (85) | 48.9 | ||||||||||||||||||||
Gain on sale of real estate | 9,938 | 424 | 9,514 | 2243.9 | ||||||||||||||||||||||
Gain on insurance recoveries | — | 1,272 | (1,272) | N/A | ||||||||||||||||||||||
Loss on extinguishment of debt | (1,766) | — | (1,766) | N/A | ||||||||||||||||||||||
Total other income and expenses | $ | 7,913 | $ | 1,522 | $ | 6,391 | 419.9 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
(Dollars in thousands): | 2019 | 2018 | Increase (Decrease) | % Change | ||||||||||||||||||||||
Rental revenue | $ | 97,507 | $ | 90,710 | $ | 6,797 | 7.5 | |||||||||||||||||||
Other income | 595 | 576 | 19 | 3.3 | ||||||||||||||||||||||
Total revenues | $ | 98,102 | $ | 91,286 | $ | 6,816 | 7.5 |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
(Dollars in thousands) | 2019 | 2018 | Increase (Decrease) | % Change | ||||||||||||||||||||||
Real estate operating expenses | $ | 47,195 | $ | 44,318 | $ | 2,877 | 6.5 | |||||||||||||||||||
Interest expense | 28,353 | 26,408 | 1,945 | 7.4 | ||||||||||||||||||||||
General and administrative | 7,455 | 6,907 | 548 | 7.9 | ||||||||||||||||||||||
Depreciation | 29,914 | 29,856 | 58 | 0.2 | ||||||||||||||||||||||
Total expenses | $ | 112,917 | $ | 107,489 | $ | 5,428 | 5.0 |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
(Dollars in thousands) | 2019 | 2018 | Increase (Decrease) | % Change | ||||||||||||||||||||||
Equity in loss of unconsolidated joint ventures | (643) | $ | (364) | $ | (279) | 76.6 | ||||||||||||||||||||
Gain on sale of real estate | 9,938 | 52,405 | (42,467) | (81.0) | ||||||||||||||||||||||
Gain on insurance recoveries | 517 | 4,499 | (3,982) | (88.5) | ||||||||||||||||||||||
Loss on extinguishment of debt | (1,766) | (593) | (1,173) | 197.8 | ||||||||||||||||||||||
Total other income and expenses | $ | 8,046 | $ | 55,947 | $ | (47,901) | (85.6) | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
GAAP Net (loss) income attributable to common stockholders | $ | 3,272 | $ | (3,111) | $ | (5,292) | $ | 17,422 | ||||||||||||||||||
Add: depreciation of properties | 9,950 | 10,416 | 29,914 | 29,856 | ||||||||||||||||||||||
Add: our share of depreciation in unconsolidated joint ventures | 562 | 386 | 1,496 | 1,218 | ||||||||||||||||||||||
Deduct: gain on sale of real estate | (9,938) | (424) | (9,938) | (52,405) | ||||||||||||||||||||||
Adjustments for non-controlling interests | (1,884) | (3,187) | (7,677) | 16,059 | ||||||||||||||||||||||
NAREIT Funds from operations attributable to common stockholders | 1,962 | 4,080 | 8,503 | 12,150 | ||||||||||||||||||||||
Adjustments for: straight-line rent accruals | (10) | (10) | (30) | (30) | ||||||||||||||||||||||
Add: loss on extinguishment of debt | 1,766 | — | 1,766 | 593 | ||||||||||||||||||||||
Add: amortization of restricted stock and restricted stock units | 372 | 15 | 1,110 | 673 | ||||||||||||||||||||||
Add: amortization of deferred mortgage costs | 408 | 317 | 1,345 | 1,073 | ||||||||||||||||||||||
Deduct gain on insurance recovery | — | (1,272) | (517) | (4,498) | ||||||||||||||||||||||
Adjustments for non-controlling interests | (321) | 250 | (410) | 597 | ||||||||||||||||||||||
Adjusted funds from operations attributable to common stockholders | $ | 4,177 | $ | 3,380 | $ | 11,767 | $ | 10,558 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
GAAP Net (loss) income attributable to common stockholders | $ | 0.20 | $ | (0.20) | $ | (0.33) | $ | 1.16 | ||||||||||||||||||
Add: depreciation of properties | 0.63 | 0.66 | 1.89 | 1.99 | ||||||||||||||||||||||
Add: our share of depreciation in unconsolidated joint ventures | 0.03 | 0.03 | 0.09 | 0.08 | ||||||||||||||||||||||
Deduct: gain on sale of real estate | (0.62) | (0.03) | (0.63) | (3.50) | ||||||||||||||||||||||
Adjustment for non-controlling interests | (0.12) | (0.20) | (0.48) | 1.07 | ||||||||||||||||||||||
NAREIT Funds from operations per common stock basic and diluted | 0.12 | 0.26 | 0.54 | 0.80 | ||||||||||||||||||||||
Adjustments for: straight line rent accruals | — | — | — | — | ||||||||||||||||||||||
Add: loss on extinguishment of debt | 0.11 | — | 0.11 | 0.04 | ||||||||||||||||||||||
Add: amortization of restricted stock and restricted stock units | 0.02 | — | 0.07 | 0.04 | ||||||||||||||||||||||
Add: amortization of deferred mortgage costs | 0.03 | 0.01 | 0.08 | 0.07 | ||||||||||||||||||||||
Deduct gain on insurance recovery | — | (0.08) | (0.03) | (0.30) | ||||||||||||||||||||||
Adjustments for non-controlling interests | (0.02) | 0.02 | (0.03) | 0.04 | ||||||||||||||||||||||
Adjusted funds from operations per common stock basic and diluted | $ | 0.26 | $ | 0.21 | $ | 0.74 | $ | 0.69 |
Exhibit No. | Title of Exhibits | |||||||
Certification of President and Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certification of Senior Vice President—Finance pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certification of Vice President and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certification of President and Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certification of Senior Vice President—Finance pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certification of Vice President and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||
101 | The following financial information from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, formatted in Inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Equity, (v) Consolidated Statements of Cash Flows and (vi) Notes to Consolidated Financial Statements. 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. | |||||||
104 | Cover Page Interactive Date File (formatted as inline XBRL and contained in Exhibit 101) |
November 7, 2019 | /s/ Jeffrey A. Gould | |||||||
Jeffrey A. Gould, President and | ||||||||
Chief Executive Officer | ||||||||
November 7, 2019 | /s/ George Zweier | |||||||
George Zweier, Vice President | ||||||||
and Chief Financial Officer | ||||||||
(principal financial officer) |
Date: | November 7, 2019 | /s/ Jeffrey A. Gould | ||||||||||||
Jeffrey A. Gould | ||||||||||||||
President and | ||||||||||||||
Chief Executive Officer |
Date: | November 7, 2019 | /s/ David W. Kalish | ||||||||||||
David W. Kalish | ||||||||||||||
Senior Vice President - Finance |
Date: | November 7, 2019 | /s/ George Zweier | ||||||||||||
George Zweier | ||||||||||||||
Vice President and | ||||||||||||||
Chief Financial Officer |
Date: | November 7, 2019 | /s/ Jeffrey A. Gould | ||||||||||||
Jeffrey A. Gould | ||||||||||||||
President and | ||||||||||||||
Chief Executive Officer |
Date: | November 7, 2019 | /s/ David W. Kalish | ||||||||||||
David W. Kalish | ||||||||||||||
Senior Vice President - Finance | ||||||||||||||
Date: | November 7, 2019 | /s/ George Zweier | ||||||||||||
George Zweier | ||||||||||||||
Vice President and | ||||||||||||||
Chief Financial Officer |
New Accounting Pronouncements |
9 Months Ended |
---|---|
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which prescribes a single, common revenue standard that supersedes nearly all existing revenue recognition guidance under U.S. GAAP, including most industry-specific requirements. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 outlines a five step model to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein. The Company's revenues are primarily derived from rental income, which is scoped out from this standard and is currently accounted for in accordance with ASC Topic 840, Leases. The Company adopted this standard effective October 1, 2018, using the modified retrospective approach, applying the provisions to open contracts as of the date of adoption. Certain revenues, such as tenant reimbursements, tenant fees, and other property income, are subject to the new guidance. The adoption of the new revenue recognition standard did not have a material impact on the consolidated financial statements and no cumulative effect adjustment was recorded upon adoption as there was no change in the amount or timing of revenue recognized. In February 2016, the FASB issued ASU 2016-02, Leases. ASU 2016-02 supersedes the current accounting for leases and while retaining two distinct types of leases, finance and operating, and requires lessees to recognize most leases on their balance sheets and makes targeted changes to lessor accounting. Further, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. This amendment provides a new practical expedient that allows lessors, by class of underlying asset, to avoid separating lease and associated non-lease components within a contract if the following criteria are met: (i) the timing and pattern of transfer for the non-lease component and the associated lease component are the same, and (ii) the stand-alone lease component would be classified as an operating lease if accounted for separately. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and early adoption is permitted. The Company adopted this standard effective January 1, 2019, and its adoption did not have a material effect on the consolidated financial statements. As a lessor, the adoption of ASU 2016-02 (as amended by subsequent ASUs) did not change the timing of revenue recognition of the Company’s rental revenues. As a lessee, the Company is party to a ground lease, and an operating lease with future payment obligations for which the Company recorded right-of-use assets and lease liabilities at the present value of the remaining minimum rental payments upon adoption of this standard. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which provides specific guidance on eight cash flow classification issues and how to reduce diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The effective date of the standard will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company adopted this standard effective October 1, 2018, using the “cumulative earnings approach” whereby distributions received from equity method investments are classified as cash flows from operations to the extent of equity earnings and then as cash flows from investing activities thereafter. The adoption of this guidance did not have a material effect on the consolidated financial statements. In November 2016, the FASB issued ASU Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The new standard requires that the statement of cash flows explain the change during the period in the combined total of cash, cash equivalents, and amounts generally described as restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose relevant information about the nature of the restrictions on the basis of their individual facts and circumstances. The Company adopted this standard effective October 1, 2018 using the retrospective approach. The adoption of this update did not have a material effect on the consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which amends the guidance on nonfinancial assets in ASC 610-20. The amendments clarify that (i) a financial asset is within the scope of ASC 610-20 if it meets the definition of an in substance nonfinancial asset and may include nonfinancial assets transferred within a legal entity to a counter-party, (ii) an entity should identify each distinct nonfinancial asset or in substance nonfinancial asset promised to a counter-party and de-recognize each asset when a counter-party obtains control of it, and (iii) an entity should allocate consideration to each distinct asset by applying the guidance in ASC 606 on allocating the transaction price to performance obligations. Further, ASU 2017-05 provides guidance on accounting for partial sales of nonfinancial assets. The amendments are effective at the same time as the amendments in ASU 2014-09. The Company adopted this standard effective October 1, 2018. The adoption of this guidance did not have a material effect on the consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. The update better aligns a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. The Company adopted this standard effective January 1, 2019. The adoption of this guidance did not have a material effect on the consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This update provides specific guidance for transactions for acquiring goods and services from nonemployees and specifies that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (i) financing to the issuer or (ii) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC Topic 606, Revenue from Contracts with Customers. This guidance is effective for fiscal years beginning after December 15, 2019, and interim periods beginning after December 15, 2020. Early adoption is permitted but not earlier than the adoption of ASC Topic 606. The Company does not believe that this guidance will have a material effect on its consolidated financial statements as it has not historically issued share-based payments in exchange for goods or services to be consumed within its operations. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement, which removes, modifies, and adds certain disclosure requirements related to fair value measurements in ASC Topic 820. This guidance is effective for public companies in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. In October 2018, the FASB issued ASU 2018-16, (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) as a Benchmark Interest Rate for Hedging Purposes. The amendments in this update permit the OIS rate based on SOFR as an eligible benchmark interest rate. The amendments in this update are effective for fiscal years beginning after December 15, 2018. The Company adopted this guidance on January 1, 2019. The Company does not believe this guidance will have a material effect on its consolidated financial statements.
|
Real Estate Properties (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of real estate properties owned | Real estate properties consist of the following (dollars in thousands):
A summary of real estate properties owned is as follows (dollars in thousands):
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Summary of the allocation of purchase price | The following table summarizes the allocation of the purchase price with respect to three properties purchased during the nine months ended September 30, 2019 (dollars in thousands):
|
Debt Obligations - Mortgage Payable (Details) |
9 Months Ended |
---|---|
Sep. 30, 2019
USD ($)
| |
Debt Obligations | |
Acquisition Mortgage Debt | $ 80,097,000 |
Mortgages | Mortgages maturing in March 2052 | Kannapolis, NC | |
Debt Obligations | |
Acquisition Mortgage Debt | $ 33,347,000 |
Interest Rate | 3.52% |
Mortgages | Mortgages maturing in June 2029 | Birmingham, AL | |
Debt Obligations | |
Acquisition Mortgage Debt | $ 32,250,000 |
Interest Rate | 4.19% |
Interest only period | 72 months |
Mortgages | Mortgages maturing in September 2031 | Auburn, AL | |
Debt Obligations | |
Acquisition Mortgage Debt | $ 14,500,000 |
Interest Rate | 3.79% |
Interest only period | 48 months |
Acquisitions and Dispositions - Additional Information (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2018 |
|
Business Combinations [Abstract] | |||
Impairment charges | $ 0 | $ 0 | $ 0 |
Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value (Details) $ in Thousands |
Sep. 30, 2019
USD ($)
|
---|---|
Financial Assets: | |
Total Financial Assets | $ 0 |
Interest rate swaps | |
Financial Assets: | |
Total Financial Assets | 0 |
Financial Liabilities: | |
Total Financial Liabilities | 112 |
Level 1 | |
Financial Assets: | |
Total Financial Assets | 0 |
Level 1 | Interest rate swaps | |
Financial Assets: | |
Total Financial Assets | 0 |
Financial Liabilities: | |
Total Financial Liabilities | 0 |
Level 2 | |
Financial Assets: | |
Total Financial Assets | 0 |
Level 2 | Interest rate swaps | |
Financial Assets: | |
Total Financial Assets | 0 |
Financial Liabilities: | |
Total Financial Liabilities | $ 112 |
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Income Statement [Abstract] | ||||
Related party - real estate operating expenses | $ 960 | $ 896 | $ 2,877 | $ 2,583 |
Related party - general and administrative | $ 105 | $ 109 | $ 403 | $ 416 |
Equity - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
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Numerator for basic and diluted earnings (loss) per share attributable to common stockholders: | ||||
Net income (loss) attributable to common stockholders | $ 3,272 | $ (3,111) | $ (5,292) | $ 17,422 |
Denominator: | ||||
Denominator for basic earnings per share—weighted average number of shares (in shares) | 15,913,975 | 15,635,953 | 15,900,362 | 14,768,429 |
Effect of diluted securities (in shares) | 200,000 | 0 | 0 | 200,000 |
Denominator for diluted earnings per share—adjusted weighted average number of shares and assumed conversions (in shares) | 16,113,975 | 15,635,953 | 15,900,362 | 14,968,429 |
Basic earnings (loss) per share (in dollars per share) | $ 0.21 | $ (0.20) | $ (0.33) | $ 1.18 |
Diluted earnings (loss) per share (in dollars per share) | $ 0.20 | $ (0.20) | $ (0.33) | $ 1.16 |
Fair Value of Financial Instruments (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of financial assets measured at fair value | Set forth below is information regarding the Company’s financial assets and liabilities measured at fair value as of September 30, 2019 (dollars in thousands):
|
Debt Obligations |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Obligations | Debt Obligations Debt obligations consist of the following (dollars in thousands):
Mortgages Payable During the nine months ended September 30, 2019, the Company obtained the following mortgage debt in connection with the acquisition of the following properties (dollars in thousands):
On September 6, 2019, the Company obtained a $1,100,000 supplemental loan on its Macon, GA property. The loan bears interest at a rate of 4.21% and matures February 1, 2026. The Company has a construction loan financing a project with 402 units, which property is in lease-up. Information regarding this loan at September 30, 2019 is set forth below (dollars in thousand):
In the three months ended September 30, 2019, $569,000 of interest was incurred on this loan, of which $165,000 was capitalized. In the nine months ended September 30, 2019, $1,528,000 of interest was incurred on this loan, of which $860,000 was capitalized. On September 19, 2019, the Company refinanced a $27,000,000 adjustable rate loan on its San Antonio, TX property with a fixed rate loan in the amount of $27,000,000. The mortgage debt bears interest at a fixed rate of 3.64%, matures in October 2029, is interest only for five years, amortizes on a 30 year schedule with a balloon payment of the unpaid principal balance and interest due at maturity. Credit Facility The Company entered into a credit facility dated April 18, 2019, as subsequently amended, with an affiliate of Valley National Bank. The facility allows the Company to borrow, subject to compliance with borrowing base requirements and other conditions, up to $10,000,000 to facilitate the acquisition of multi-family properties, and is secured by the cash available in certain cash accounts maintained by the Company at Valley National Bank. The facility matures April 2021 and bears an adjustable interest rate of 50 basis points over the prime rate, with a floor of 5%. The interest rate in effect as of September 30, 2019 is 5%. There is an unused facility fee of 0.25% per annum on the difference between the outstanding loan balance and maximum amount then available under the facility. At September 30, 2019, the outstanding balance on the facility was $3,600,000. Interest expense for the three and nine months ended September 30, 2019, which includes amortization of deferred costs, was $57,000 and $153,000, respectively. At November 1, 2019, the outstanding balance on the credit facility was $2,800,000. Junior Subordinated Notes At September 30, 2019 and December 31, 2018, the Company's junior subordinated notes had an outstanding principal balance of $37,400,000, before deferred financing costs of $342,000 and $357,000, respectively. At September 30, 2019, the interest rate on the outstanding balance is three month LIBOR + 2.00% or 4.26%. The junior subordinated notes require interest - only payments through the maturity date of April 30, 2036, at which time repayment of the outstanding principal and unpaid interest become due. Interest expense for the three months ended September 30, 2019 and 2018, which includes amortization of deferred costs, was $438,000 and $416,000, respectively, and for the nine months ended September 30, 2019 and 2018 was $1,326,000 and $1,159,000, respectively.
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Organization and Background |
9 Months Ended |
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Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Background | Organization and Background BRT Apartments Corp. (the "Company"), a Maryland corporation, owns, operates and develops multi-family properties. The Company conducts its operations to qualify as a real estate investment trust, or REIT, for federal income tax purposes. Generally, the multi-family properties are acquired with joint venture partners in transactions in which the Company contributes a significant portion of the equity. At September 30, 2019, the Company owns: (a) 36 multi-family properties with 10,152 units (including 402 units in lease-up), located in 12 states with a carrying value of $1,102,619,000; and (b) interests in three unconsolidated multi-family joint ventures with 1,026 units (including 339 units in lease-up) located in two states with a carrying value of $17,964,000.
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Acquisitions and Dispositions |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | Acquisitions and Dispositions Property Acquisitions The table below provides information regarding the Company's purchase of multi-family properties during the nine months ended September 30, 2019 (dollars in thousands):
The table below provides information regarding the Company's purchases of multi-family properties during the nine months ended September 30, 2018 (dollars in thousands):
Property Dispositions The following table is a summary of the real estate properties disposed of by the Company during the nine months ended September 30, 2019 (dollars in thousands):
The following table is a summary of the real estate properties disposed of by the Company during the nine months ended September 30, 2018 (dollars in thousands):
Impairment Charges The Company reviews each real estate asset owned, including those held through investments in unconsolidated joint ventures, for impairment when there is an event or a change in circumstances indicating that the carrying amount may not be recoverable. The Company measures and records impairment losses, and reduces the carrying value of properties, when indicators of impairment are present and the expected undiscounted cash flows related to those properties are less than their carrying amounts. In cases where the Company does not expect to recover its carrying costs on properties held for use, the Company reduces its carrying costs to fair value, and for properties held for sale, the Company reduces its carrying value to the fair value less costs to sell. During the three and nine months ended September 30, 2019 and 2018, no impairment charges were recorded.
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Fair Value of Financial Instruments - Narrative (Details) - Level 2 - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
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Sep. 30, 2019 |
Dec. 31, 2018 |
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Market Approach Valuation Technique | Junior subordinated notes | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate (as a percent) | 6.63% | 7.79% |
Market Approach Valuation Technique | Mortgages | Minimum | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate (as a percent) | 2.87% | 3.94% |
Market Approach Valuation Technique | Mortgages | Maximum | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate (as a percent) | 4.65% | 5.61% |
Carrying and Fair Value | Junior subordinated notes | ||
Financial Instruments Not Measured at Fair Value | ||
Estimated fair value (lower) higher than carrying value | $ 9,520 | $ 11,974 |
Carrying and Fair Value | Mortgages | ||
Financial Instruments Not Measured at Fair Value | ||
Estimated fair value (lower) higher than carrying value | $ 29,153 | $ 19,334 |
CONSOLIDATED STATEMENT OF EQUITY (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | |||||
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Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
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Statement of Stockholders' Equity [Abstract] | ||||||
Dividends paid (in dollars per share) | $ 0.22 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 |
Real Estate Properties - Schedule of Real Estate Properties (Including Properties Held For Sale) (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
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Real Estate [Abstract] | ||
Land | $ 157,252 | $ 155,573 |
Building | 1,025,689 | 924,378 |
Building improvements | 47,489 | 41,003 |
Real estate properties | 1,230,430 | 1,120,954 |
Accumulated depreciation | (117,534) | (91,715) |
Total real estate properties, net | $ 1,112,896 | $ 1,029,239 |
Derivative Financial Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of outstanding interest rate derivatives | As of September 30, 2019, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollars in thousands):
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Schedule of fair value of derivative financial instruments and classification on consolidated balance sheets | The table below presents the fair value of the Company’s derivative financial instruments as well as its classification on the consolidated balance sheets as of the dates indicated (dollars in thousands):
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Schedule of effect of derivative financial instrument on consolidated statements of comprehensive (loss) income | The following table presents the effect of the Company’s interest rate swaps on the consolidated statements of comprehensive (loss) income for the dates indicated (dollars in thousands):
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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
9 Months Ended | |
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Sep. 30, 2019 |
Sep. 30, 2018 |
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Statement of Cash Flows [Abstract] | ||
Capitalized interest | $ 860 | $ 174 |
Real Estate Properties |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Properties | Real Estate Properties Real estate properties consist of the following (dollars in thousands):
A summary of real estate properties owned is as follows (dollars in thousands):
The following table summarizes the allocation of the purchase price with respect to three properties purchased during the nine months ended September 30, 2019 (dollars in thousands):
The purchase price of the properties acquired, inclusive of acquisition costs, was allocated to the acquired assets based on their estimated relative fair values on the acquisition date.
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Investment in Unconsolidated Ventures |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Unconsolidated Ventures | Investment in Unconsolidated Ventures The Company has interests in unconsolidated joint ventures that own multi-family properties. The table below provides information regarding these joint ventures at September 30, 2019 (dollars in thousands):
________________________ (a) Property is currently in lease-up. Construction financing for this project of up to $42,019 has been secured. Such financing bears interest at 4.95% and matures in June 2020. (b) This interest is held through a tenancy-in-common. The net loss from these ventures was $259,000 and $174,000 for the three months ended September 30, 2019 and 2018, respectively, and $643,000 and $364,000 for the nine months ended September 30, 2019 and 2018, respectively.
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Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments Cash Flow Hedges of Interest Rate Risk The Company's objective in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated Other Comprehensive Income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the three months ended September 30, 2019, the Company accelerated the reclassification of amounts in Other comprehensive Income to earnings as a result of a hedged forecasted transaction becoming probable not to occur. The acceleration amount was a loss of $391,000. As of September 30, 2019, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollars in thousands):
Non-designated Derivatives Derivatives not designated as hedges are not speculative and are used to manage the Company's exposure to interest rate movements and other identified risks but do not meet the hedge accounting requirements. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. As a result of one mortgage refinancing of an adjustable rate loan to a fixed rate loan, at September 30, 2019, the Company had one interest rate cap with a notional value of $9,200,000 that was not designated as a hedge in a qualifying hedge relationship. At September 30, 2019, this derivative had no value. The table below presents the fair value of the Company’s derivative financial instruments as well as its classification on the consolidated balance sheets as of the dates indicated (dollars in thousands):
The following table presents the effect of the Company’s interest rate swaps on the consolidated statements of comprehensive (loss) income for the dates indicated (dollars in thousands):
The Company estimates an additional $25,000 will be reclassified from other comprehensive loss as a decrease to interest expense over the next twelve months. Credit-risk-related Contingent Features The agreement between the Company and its derivative counterparties provides that if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, the Company could be declared in default on its derivative obligations.
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Equity (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except share amounts):
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Debt Obligations - Mortgage Payable and Construction Loan Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 19, 2019 |
Sep. 30, 2019 |
Sep. 30, 2019 |
Sep. 06, 2019 |
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Debt Instrument [Line Items] | ||||
Debt assumed, face value | $ 80,097,000 | $ 80,097,000 | ||
Mortgages Maturing In February 2026 | Mortgages | Macon, GA | ||||
Debt Instrument [Line Items] | ||||
Debt assumed, face value | $ 1,100,000 | |||
Interest rate | 4.21% | |||
Construction Loans | Nashville, TN | ||||
Debt Instrument [Line Items] | ||||
Interest incurred on loan | 569,000 | 1,528,000 | ||
Interest expense capitalized | $ 165,000 | $ 860,000 | ||
Mortgages Maturing In October 2029 | Mortgages | San Antonio, TX | ||||
Debt Instrument [Line Items] | ||||
Debt assumed, face value | $ 27,000,000 | |||
Interest rate | 3.64% | |||
Repurchased face amount | $ 27,000,000 | |||
Interest only period | 5 years | |||
Debt amortization period | 30 years |
Variable Interest Entities (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
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ASSETS | |||||
Real estate properties, net of accumulated depreciation of $67,264 and $53,637 | $ 1,112,896 | $ 1,029,239 | |||
Cash and cash equivalents | 18,466 | 32,428 | |||
Deposits and escrows | 19,916 | 21,268 | |||
Other assets | 8,210 | 8,084 | |||
Total Assets | [1] | 1,192,597 | 1,123,707 | ||
Liabilities: | |||||
Mortgages payable, net of deferred costs of $4,209 and $3,786 | 844,597 | 771,817 | |||
Accounts payable and accrued liabilities | 32,285 | 24,487 | |||
Total Liabilities | [1] | 917,470 | 833,347 | ||
Real estate accumulated depreciation | 117,534 | 91,715 | |||
Deferred mortgage costs | 6,962 | 6,646 | |||
Variable interest entity | |||||
ASSETS | |||||
Real estate properties, net of accumulated depreciation of $67,264 and $53,637 | 677,189 | 584,074 | |||
Cash and cash equivalents | 7,408 | 5,207 | |||
Deposits and escrows | 10,186 | 11,705 | |||
Other assets | 4,238 | 6,302 | |||
Total Assets | 699,021 | 607,288 | |||
Liabilities: | |||||
Mortgages payable, net of deferred costs of $4,209 and $3,786 | 521,494 | 446,779 | |||
Accounts payable and accrued liabilities | 14,780 | 11,816 | |||
Total Liabilities | 536,274 | 458,595 | |||
Real estate accumulated depreciation | 67,264 | 53,637 | |||
Mortgages | |||||
Liabilities: | |||||
Deferred mortgage costs | 6,550 | 6,289 | |||
Mortgages | Variable interest entity | |||||
Liabilities: | |||||
Deferred mortgage costs | $ 4,209 | $ 3,786 | |||
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
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Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 3,345 | $ (4,138) | $ (6,988) | $ 39,799 |
Other comprehensive (loss) income: | ||||
Unrealized (loss) gain on derivative instruments | (322) | 316 | (2,544) | 1,846 |
Other comprehensive (loss) income | (322) | 316 | (2,544) | 1,846 |
Comprehensive income (loss) | 3,023 | (3,822) | (9,532) | 41,645 |
Comprehensive loss (income) attributable to non-controlling interests | 31 | 934 | 2,477 | (22,938) |
Comprehensive income (loss) attributable to common stockholders | $ 3,054 | $ (2,888) | $ (7,055) | $ 18,707 |
Debt Obligations - Junior Subordinated Notes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Dec. 31, 2018 |
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Debt Instrument [Line Items] | |||||
Deferred financing costs | $ 6,962 | $ 6,962 | $ 6,646 | ||
Junior subordinated notes | |||||
Debt Instrument [Line Items] | |||||
Total debt obligations | 37,400 | 37,400 | 37,400 | ||
Deferred financing costs | 342 | 342 | $ 357 | ||
Interest expense | $ 438 | $ 416 | $ 1,326 | $ 1,159 | |
London Interbank Offered Rate (LIBOR) | Junior subordinated notes | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
Interest rate | 4.26% | 4.26% |
Derivative Financial Instruments (Details) |
3 Months Ended | 9 Months Ended | |||
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Sep. 30, 2019
USD ($)
numberOfRefinancings
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Sep. 30, 2018
USD ($)
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Sep. 30, 2019
USD ($)
numberOfRefinancings
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Sep. 30, 2018
USD ($)
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Dec. 31, 2018
USD ($)
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Derivative [Line Items] | |||||
Number of mortgage refinancings | numberOfRefinancings | 1 | 1 | |||
Estimated amount to be reclassified from Accumulated other comprehensive income (loss) as an increase to interest expense | $ 25,000 | $ 25,000 | |||
Interest Expense | |||||
Derivative [Line Items] | |||||
Amount of (loss) gain recognized on derivative in Other Comprehensive Income | (630,000) | $ 362,000 | (2,607,000) | $ 1,937,000 | |
Amount of (loss) gain reclassified from Accumulated Other Comprehensive Income into Interest expense | (307,000) | 69,000 | (81,000) | 28,000 | |
Total amount of Interest expense presented in the Consolidated Statement of Operations | 9,845,000 | $ 8,965,000 | 28,353,000 | $ 26,408,000 | |
Other Assets | |||||
Derivative [Line Items] | |||||
Fair value of derivative financial instrument asset | 0 | 0 | $ 2,434,000 | ||
Accounts payable and accrued liabilities | |||||
Derivative [Line Items] | |||||
Fair value of derivative financial instrument liability | 112,000 | 112,000 | $ 0 | ||
Hedging instrument | Interest Rate Swap, Maturity Date April 1, 2022 | |||||
Derivative [Line Items] | |||||
Current Notional Amount | $ 1,201,000 | $ 1,201,000 | |||
Fixed Rate | 5.25% | 5.25% | |||
Hedging instrument | Interest Rate Swap, Maturity Date May 6, 2023 | |||||
Derivative [Line Items] | |||||
Current Notional Amount | $ 25,662,000 | $ 25,662,000 | |||
Fixed Rate | 3.61% | 3.61% | |||
Hedging instrument | Cash Flow Hedging | |||||
Derivative [Line Items] | |||||
Loss on acceleration of reclassified hedged transactions | $ 391,000 | ||||
Not Designated as Hedging Instrument | Interest rate caps | |||||
Derivative [Line Items] | |||||
Current Notional Amount | 9,200,000 | $ 9,200,000 | |||
Value of derivative | $ 0 | $ 0 |
Basis of Preparation |
9 Months Ended |
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Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation | Basis of Preparation The accompanying interim unaudited consolidated financial statements as of September 30, 2019, and for the three and nine months ended September 30, 2019 and 2018, reflect all normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the results for such interim periods. The results of operations for the three and nine months ended September 30, 2019 and 2018, are not necessarily indicative of the results for the full year. The consolidated unaudited balance sheet as of December 31, 2018, has been derived from the unaudited financial statements at that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States ("GAAP"). Accordingly, these unaudited statements should be read in conjunction with the Company's audited financial statements included in its Annual Report on Form 10-K for the year ended September 30, 2018, filed with the Securities and Exchange Commission ("SEC") on December 10, 2018, for complete financial statements. The consolidated financial statements include the accounts and operations of the Company, its wholly owned subsidiaries, and its majority owned or controlled real estate entities and its interests in variable interest entities ("VIEs") in which the Company is determined to be the primary beneficiary. Material intercompany balances and transactions have been eliminated. The Company’s consolidated joint ventures that own multi-family properties, except as set forth in the following paragraph, were determined to be VIEs because the voting rights of some equity investors in the applicable joint venture entity are not proportional to their obligations to absorb the expected losses of the entity and their right to receive the expected residual returns. It was determined that the Company is the primary beneficiary of these joint ventures because it has a controlling interest in that it has the power to direct the activities of the VIE that most significantly impact the entity's economic performance and it has the obligation to absorb losses of the entity and the right to receive benefits that could potentially be significant to the VIE. The joint ventures that own properties in Ocoee, FL, Lawrenceville, GA, Dallas, TX, Farmers Branch, TX and Grand Prairie, TX were determined not to be VIEs but are consolidated because the Company has controlling rights in such entities. With respect to its unconsolidated joint ventures, as (i) the Company is generally the managing member but does not exercise substantial operating control over these entities or the Company is not the managing member and (ii) such entities are not VIEs, the Company has determined that such joint ventures should be accounted for under the equity method of accounting for financial statement purposes. The distributions to each joint venture partner are determined pursuant to the applicable operating agreement and may not be pro-rata to the percentage equity interest each partner has in the applicable venture. The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results could differ from those estimates. Substantially all of the Company's assets are comprised of multi- family real estate assets generally leased to tenants on a one-year basis. Therefore, the Company aggregates real estate assets for reporting purposes and operates in one reportable segment. In February 2019, the Board of Directors of the Company authorized a change in the Company’s fiscal year end from September 30 to December 31. The change is intended to better align the Company’s fiscal year with the fiscal year of other multi-family REITs. As a result of the change in fiscal year, (i) the Company’s 2019 fiscal year began on January 1, 2019 and ends on December 31, 2019 and (ii) the Company filed a Transition Report on Form 10-Q covering the transition period from October 1, 2018 to December 31, 2018.
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Variable Interest Entities |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | Variable Interest EntitiesThe Company conducts a significant portion of its business with joint venture partners. Many of the Company's consolidated joint ventures that own properties were determined to be VIEs because the voting rights of some equity partners are not proportional to their obligations to absorb the expected loses of the entity and their rights to receive expected residual returns. It was determined that the Company is the primary beneficiary of these joint ventures because it has a controlling financial interest in that it has the power to direct the activities of the VIE that most significantly impacts the entity's economic performance and it has the obligation to absorb losses of the entity and the right to receive benefits from the entity that could potentially be significant to the VIE. The following is a summary of the carrying amounts with respect to the consolidated VIEs and their classification on the Company's consolidated balance sheets (dollars in thousands):
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Equity - Narrative (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 9 Months Ended | 21 Months Ended | |||||||||
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Oct. 10, 2019 |
Nov. 01, 2019 |
Jan. 31, 2019 |
Jun. 30, 2016 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 12, 2019 |
Dec. 31, 2018 |
Jan. 31, 2018 |
Sep. 05, 2017 |
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Repurchases of common stock | $ 46,000 | $ 41,000 | |||||||||||
Effect of diluted securities (in shares) | 200,000 | 0 | 0 | 200,000 | |||||||||
New Share Repurchase Program | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Beneficial interest purchased authorized amount | $ 5,000,000 | $ 5,000,000 | |||||||||||
Shares repurchased (in shares) | 3,590 | 3,500 | |||||||||||
Average market price of shares repurchased (in dollars per share) | $ 12.80 | $ 11.73 | |||||||||||
Repurchases of common stock | $ 46,000 | $ 41,000 | |||||||||||
Restricted Stock Units (RSUs) | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Compensation expense | $ 35,000 | $ (274,000) | 106,000 | (128,000) | |||||||||
Deferred unearned compensation | 213,000 | 213,000 | $ 213,000 | $ 319,000 | |||||||||
Restricted Stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Compensation expense | 337,000 | $ 290,000 | 1,004,000 | $ 801,000 | |||||||||
Deferred unearned compensation | $ 3,674,000 | $ 3,674,000 | $ 3,674,000 | $ 2,735,000 | |||||||||
Remaining weighted average vesting period | 2 years 4 months 24 days | ||||||||||||
Incentive Plan 2018 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares authorized (in shares) | 600,000 | 600,000 | 600,000 | ||||||||||
Incentive Plan 2018 | Restricted Stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Issued (in shares) | 156,399 | ||||||||||||
Shares outstanding (in shares) | 725,296 | 725,296 | 725,296 | ||||||||||
Incentive Plan 2016 | Restricted Stock Units (RSUs) | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Issued (in shares) | 450,000 | ||||||||||||
Vesting period for shares issued | 5 years | ||||||||||||
Incentive Plan 2016 | Restricted Stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting period for shares issued | 5 years | ||||||||||||
Prior Plan | Restricted Stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of additional awards available for grant (in shares) | 0 | 0 | 0 | ||||||||||
Subsequent Event | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Dividends declared per share (in dollars per share) | $ 0.22 | ||||||||||||
At-the-market | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Common stock issued in offering | $ 30,000,000 | ||||||||||||
Shares sold in offering (in shares) | 0 | 1,645,997 | |||||||||||
Aggregate sales price | $ 21,704,000 | ||||||||||||
Payments for commissions | 440,000 | ||||||||||||
Payments of offering related expenses | $ 78,000 | ||||||||||||
At-the-market | Subsequent Event | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares sold in offering (in shares) | 130,485 | ||||||||||||
Aggregate sales price | $ 2,006,000 | ||||||||||||
Payments for commissions | $ 40,000 |
Debt Obligations (Tables) |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of debt obligations | Debt obligations consist of the following (dollars in thousands):
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Schedule of debt information | During the nine months ended September 30, 2019, the Company obtained the following mortgage debt in connection with the acquisition of the following properties (dollars in thousands):
On September 6, 2019, the Company obtained a $1,100,000 supplemental loan on its Macon, GA property. The loan bears interest at a rate of 4.21% and matures February 1, 2026. The Company has a construction loan financing a project with 402 units, which property is in lease-up. Information regarding this loan at September 30, 2019 is set forth below (dollars in thousand):
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Real Estate Properties - Allocation of Purchase Price (Details) $ in Thousands |
Sep. 30, 2019
USD ($)
property
|
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Business Acquisition [Line Items] | |
Number of properties | property | 36 |
Property Purchased During Period | |
Business Acquisition [Line Items] | |
Number of properties | property | 3 |
Acquisition-related intangibles | $ 1,314 |
Total consideration | 110,710 |
Property Purchased During Period | Land | |
Business Acquisition [Line Items] | |
Real estate property | 6,703 |
Property Purchased During Period | Buildings and Improvements | |
Business Acquisition [Line Items] | |
Real estate property | $ 102,693 |
Acquisitions and Dispositions (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of real estate acquisitions | The table below provides information regarding the Company's purchase of multi-family properties during the nine months ended September 30, 2019 (dollars in thousands):
The table below provides information regarding the Company's purchases of multi-family properties during the nine months ended September 30, 2018 (dollars in thousands):
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Schedule of property dispositions | The following table is a summary of the real estate properties disposed of by the Company during the nine months ended September 30, 2019 (dollars in thousands):
The following table is a summary of the real estate properties disposed of by the Company during the nine months ended September 30, 2018 (dollars in thousands):
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Related Party Transactions |
9 Months Ended |
---|---|
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company has retained certain of its executive officers and Fredric H. Gould, a director, to provide, among other things, the following services: participating in the Company's multi-family property analysis and approval process (which includes service on an investment committee), providing investment advice, long-term planning and consulting with executives and employees with respect to other business matters, as required. The aggregate fees incurred and paid for these services in the three months ended September 30, 2019 and 2018 were $332,000 and $317,000, respectively, and for the nine months ended September 30, 2019 and 2018 were $998,000 and $951,000, respectively. Management of certain properties owned by the Company and certain joint venture properties is provided by Majestic Property Management Corp. ("Majestic Property"), a company wholly owned by Fredric H. Gould. Certain of the Company's officers and directors are also officers and directors of Majestic Property. Majestic Property may also provide real estate brokerage and construction supervision services to these properties. These fees amounted to $9,000 and $8,000 for the three months ended September 30, 2019 and 2018, respectively, and for the nine months ended September 30, 2019 and 2018 were $25,000 and $24,000, respectively. The Company shares facilities, personnel and other resources with One Liberty Properties, Inc., Majestic Property, and Gould Investors L.P. Certain of the Company's executive officers and/or directors also serve in management positions, and have ownership interests, in One Liberty, Majestic Property and/or Georgetown Partners Inc., the managing general partner of Gould Investors. The allocation of expenses for the facilities, personnel and other resources shared by the Company, One Liberty, Majestic Property and Gould Investors is computed in accordance with a shared services agreement by and among the Company and these entities and is included in general and administrative expense on the consolidated statements of operations. For the three months ended September 30, 2019 and 2018, net allocated general and administrative expenses reimbursed by the Company to Gould Investors pursuant to the shared services agreement aggregated $105,000 and $109,000, respectively, and for the nine months ended September 30, 2019 and 2018 were $402,000 and $416,000, respectively. Management of many of the Company's multi-family properties (including three multi-family properties owned by two unconsolidated joint ventures) is performed by the Company's joint venture partners or their affiliates. None of these joint venture partners is Gould Investors, Majestic Property or their affiliates. Management fees to these joint venture partners or their affiliates for the three months ended September 30, 2019 and 2018 were $1,074,000 and $976,000, respectively, and $3,187,000 and $2,810,000 for the nine months ended September 30, 2019 and 2018, respectively. In addition, the Company may pay an acquisition fee to a joint venture partner in connection with a property purchased by such joint venture. For the three months ended September 30, 2019 and 2018, capitalized acquisition fess paid were $25,000 and $—, respectively. For the nine months ended September 30, 2019 and 2018, capitalized acquisitions fees paid were $876,000 and $1,813,000, respectively.
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Subsequent Events |
9 Months Ended |
---|---|
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsSubsequent events have been evaluated and any significant events, relative to our consolidated financial statements as of September 30, 2019, that warrant additional disclosure, have been included in the notes to the consolidated financial statements. |
Debt Obligations - Schedule of Debt Obligations (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Debt Obligations | ||
Deferred financing costs | $ (6,962) | $ (6,646) |
Total debt obligations, net of deferred costs | 885,185 | 808,860 |
Mortgages payable | ||
Debt Obligations | ||
Total debt obligations, net of deferred costs | 851,147 | 778,106 |
Deferred financing costs | (6,550) | (6,289) |
Junior subordinated notes | ||
Debt Obligations | ||
Total debt obligations, net of deferred costs | 37,400 | 37,400 |
Deferred financing costs | (342) | (357) |
Credit facility | ||
Debt Obligations | ||
Total debt obligations, net of deferred costs | $ 3,600 | $ 0 |
Acquisitions and Dispositions - Property Dispositions (Details) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2019
USD ($)
property_Unit
property
|
Sep. 30, 2018
USD ($)
property
|
|
Business Acquisition [Line Items] | ||
Number of properties | property | 36 | |
No. of Units | property_Unit | 10,152 | |
Property dispositions | ||
Business Acquisition [Line Items] | ||
No. of Units | property | 1,162 | |
Sales Price | $ 149,170 | |
Gain on Sale | 52,405 | |
Non-controlling partner's portion of the gain | $ 25,140 | |
Property dispositions | Houston, TX (two properties) | ||
Business Acquisition [Line Items] | ||
Number of properties | property | 2 | |
No. of Units | property | 384 | |
Sales Price | $ 33,200 | |
Gain on Sale | 9,938 | |
Non-controlling partner's portion of the gain | $ 894 | |
Property dispositions | New York, NY | ||
Business Acquisition [Line Items] | ||
No. of Units | property | 1 | |
Sales Price | $ 470 | |
Gain on Sale | 439 | |
Non-controlling partner's portion of the gain | $ 0 | |
Property dispositions | Valley, AL | ||
Business Acquisition [Line Items] | ||
No. of Units | property | 618 | |
Sales Price | $ 51,000 | |
Gain on Sale | 9,712 | |
Non-controlling partner's portion of the gain | $ 4,547 | |
Property dispositions | Palm Beach Gardens, FL | ||
Business Acquisition [Line Items] | ||
No. of Units | property | 542 | |
Sales Price | $ 97,250 | |
Gain on Sale | 41,831 | |
Non-controlling partner's portion of the gain | $ 20,593 | |
Property dispositions | New York, NY | ||
Business Acquisition [Line Items] | ||
No. of Units | property | 1 | |
Sales Price | $ 450 | |
Gain on Sale | 423 | |
Non-controlling partner's portion of the gain | $ 0 |
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