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RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS
12 Months Ended
Dec. 31, 2019
Accounting Changes and Error Corrections [Abstract]  
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENT RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTSSet forth below are the Company's audited restated consolidated financial statements at December 31, 2018 and for the year ended December 31, 2018. BRT has also restated the footnotes accompanying these consolidated financial statements included in this Annual Report on Form 10-K. See note 16 for additional information. The Company transitioned from a September 30, to a December 31 year end effective with the filing of a Quarterly Report on Form 10-QT for the quarter ended December 31, 2018. Accordingly, the "As Previously Reported" amounts are presented on a calendar year basis rather than a fiscal year basis so that such amounts will be comparable to the amounts presented for 2019. The effect of the restatement on the previously filed consolidated financial statements is as follows:
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
As of December 31, 2018
As Previously ReportedRestatement ImpactAs Restated
ASSETS
Real estate properties, net of accumulated depreciation $1,029,239  $(852,297) $176,942  
Real estate loan4,750  —  4,750  
Cash and cash equivalents32,428  (8,889) 23,539  
Restricted cash8,180  —  8,180  
Deposits and escrows21,268  (17,969) 3,299  
Investment in unconsolidated joint ventures19,758  156,926  176,684  
Other assets 8,084  (6,488) 1,596  
Total Assets$1,123,707  $(728,717) $394,990  
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of deferred costs 771,817  (633,871) 137,946  
Junior subordinated notes, net of deferred costs 37,043  —  37,043  
Accounts payable and accrued liabilities24,487  (8,305) 16,182  
Total Liabilities 833,347  (642,176) 191,171  
Commitments and contingencies
Equity:
BRT Apartments Corp. stockholders' equity:
Preferred shares, $.01 par value: Authorized 2,000 shares, none issued—  —  —  
Common stock, $.01 par value, 300,000 shares authorized,
15,038 shares issued150—  150
Additional paid-in capital216,981  6,392  223,373  
Accumulated other comprehensive income1,688  (1,679)  
Accumulated deficit(20,044) —  (20,044) 
Total BRT Apartments Corp. stockholders' equity198,775  4,713  203,488  
Non-controlling interests91,585  (91,254) 331  
Total Equity290,360  (86,541) 203,819  
Total Liabilities and Equity$1,123,707  $(728,717) $394,990  
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share data

For Year Ended December 31, 2018
As Previously ReportedRestatement ImpactAs Restated
Revenues:
Rental and other revenue from real estate properties$121,926  $(99,296) $22,630  
Other income799  —  799  
Total revenues122,725  (99,296) 23,429  
Expenses:
Real estate operating expenses59,542  (48,847) 10,695  
Interest expense35,356  (28,917) 6,439  
General and administrative9,383  —  9,383  
Depreciation40,048  (35,121) 4,927  
Total expenses144,329  (112,885) 31,444  
Total revenues less total expenses(21,604) 13,589  (8,015) 
Equity in (loss) income from unconsolidated joint ventures(488) (4,600) (5,088) 
Equity in earnings from sale of unconsolidated joint venture properties—  37,869  37,869  
Gain on sale of real estate71,919  (71,058) 861  
Gain on insurance recovery6,084  (6,084) —  
Loss on extinguishment of debt(800) 800  —  
Income from continuing operations55,111  (29,484) 25,627  
Provision for taxes —   
Income from continuing operations, net of taxes55,109  (29,484) 25,625  
(Income) attributable to non-controlling interests(29,614) 29,484  (130) 
Net income attributable to common stockholders$25,495  $—  $25,495  
Weighted average number of shares of common stock outstanding:
Basic15,014,385  15,014,385  
Diluted15,214,385  15,214,385  
Per share amounts attributable to common stockholders
Basic$1.70  $1.70  
Diluted$1.68  1.68  
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME  
(Dollars in thousands) 
Year Ended December 31, 2018
As Previously ReportedRestatement ImpactAs Restated
Net income$55,109  $(29,484) $25,625  
Other comprehensive (loss) income:
Unrealized (loss) gain on derivative instruments486  (473) 13  
Other comprehensive (loss) income486  (473) 13  
Comprehensive income55,595  (29,957) 25,638  
Comprehensive (income) attributable to non-controlling interests(29,757) 29,625  (132) 
Comprehensive income attributable to common stockholders$25,838  $(332) $25,506  
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Year Ended December 31, 2018
(Dollars in thousands, except share data)
Shares of Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)(Accumulated Deficit)Non Controlling InterestsTotal
As Previously Reported
Balances, December 31, 2017$133  $202,225  $1,346  (33,292) $72,935  $243,347  
Distributions - Common Stock - $0.80 per share—  —  —  (12,247) —  (12,247) 
Restricted stock vesting (1) —  —  —  —  
Compensation expense—restricted stock and restricted stock units—  995  —  —  —  995  
Contributions from non-controlling interests—  —  —  —  41,824  41,824  
Distributions to non-controlling interests—  —  —  —  (50,777) (50,777) 
Purchase of non-controlling interest—  (6,473) —  —  (2,155) (8,628) 
Shares issued through equity offering program, net16  20,396  —  —  —  20,412  
Shares repurchased—  (161) —  —  —  (161) 
Net income—  —  —  25,495  29,614  55,109  
Other comprehensive income—  —  342  —  144  486  
Comprehensive income—  —  —  —  —  55,595  
Balances, December 31, 2018$150  $216,981  $1,688  $(20,044) $91,585  $290,360  
Restatement Impact
Balances, December 31, 2017$—  $—  $(1,348) $—  $(72,458) $(73,806) 
Distributions - Common Stock - $0.80 per share—  —  —  —  —  —  
Restricted stock vesting—  —  —  —  —  —  
Compensation expense—restricted stock and restricted stock units—  —  —  —  —  —  
Contributions from non-controlling interests—  —  —  —  (41,824) (41,824) 
Distributions to non-controlling interests—  —  —  —  50,670  50,670  
Purchase of non-controlling interest—  6,392  —  —  1,984  8,376  
Shares issued through equity offering program, net—  —  —  —  —  —  
Shares repurchased—  —  —  —  —  —  
Net income—  —  —  —  (29,484) (29,484) 
Other comprehensive income—  —  (331) —  (142) (473) 
Comprehensive income—  —  —  —  —  (29,957) 
Restatement Impact Balances, December 31, 2018$—  $6,392  $(1,679) $—  $(91,254) $(86,541) 
Shares of Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)(Accumulated Deficit)Non Controlling InterestsTotal
As Restated
Balances, December 31, 2017133  202,225  (2) (33,292) 477  169,541  
Distributions - Common Stock - $0.80 per share—  —  —  (12,247) —  (12,247) 
Restricted stock vesting (1) —  —  —  —  
Compensation expense—restricted stock and restricted stock units—  995  —  —  —  995  
Contributions from non-controlling interests—  —  —  —  —  —  
Distributions to non-controlling interests—  —  —  —  (107) (107) 
Purchase of non-controlling interest—  (80) —  —  —  (171) (251) 
Shares issued through equity offering program, net16  20,396  —  —  —  —  20,412  
Shares repurchased —  (162) —  —  (162) 
Net income—  —  —  25,495  130  25,625  
Other comprehensive income—  —  11  —   13  
Comprehensive income—  —  —  —  —  25,638  
Balances, December 31, 2018$150  $223,373  $ $(20,044) $331  $203,819  
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Year Ended December 31, 2018
As Previously ReportedAdjustmentsAs Restated
Cash flows from operating activities:
Net income$55,109  $(29,484) $25,625  
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation40,048  (35,121) 4,927  
Amortization of deferred financing fees1,246  (1,054) 192  
Amortization of restricted stock996  (1) 995  
Equity in earnings (loss) of unconsolidated joint ventures488  4,600  5,088  
Equity in earnings on sale of real estate of unconsolidated joint ventures—  (37,869) (37,869) 
Gain on sale of real estate(71,919) 71,058  (861) 
Gain on insurance recovery(6,083) 6,083  —  
Loss on extinguishment of debt800  (800) —  
Distributions from equity in earnings of unconsolidated joint ventures—  23,030  23,030  
Decrease in deposits and escrows5,922  (746) 5,176  
(Increase) decrease in accounts payable and accrued liabilities3,861  (2,859) 1,002  
Decrease (increase) in other assets7,431  (7,734) (303) 
Net cash provided by operating activities37,899  (10,897) 27,002  
Cash flows from investing activities:
Collections from real estate loans600  —  600  
Additions to real estate properties(199,786) 199,786  —  
Net costs capitalized to real estate owned(18,252) 17,722  (530) 
Investment in joint venture(12,370) 12,370  —  
Purchase of partner interests—  (7,923) (7,923) 
Purchase of non-controlling interest(8,616) 8,365  (251) 
Consolidation of investment in joint venture1,279  (1,279) —  
Proceeds from the sale of real estate owned239,212  (238,351) 861  
Distributions from unconsolidated joint ventures868  51,495  52,363  
Contributions to unconsolidated joint ventures—  (59,930) (59,930) 
Net cash (used in) provided by investing activities2,935  (17,745) (14,810) 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Year Ended December 31, 2018
As Previously ReportedAdjustmentsAs Restated
Cash flows from financing activities:
Proceeds from mortgages payable$129,542  $(129,542) $—  
Mortgage payoffs(132,016) 132,016  —  
Mortgage principal payments(5,169) 2,818  (2,351) 
Increase in deferred financing costs(1,182) 1,182  —  
Dividends paid(12,088) —  (12,088) 
Contributions from non-controlling interests29,453  (29,453) —  
Distributions to non-controlling interests(50,777) 50,670  (107) 
Proceeds from the sale of common stock20,411   20,412  
Repurchase of shares of common stock(161) (1) (162) 
Net cash provided by (used in) financing activities$(21,987) $27,691  $5,704  
Net increase in cash, cash equivalents and restricted cash18,847  (951) 17,896  
Cash, cash equivalents and restricted cash at beginning of year21,761  (7,938) 13,823  
Cash, cash equivalents and restricted cash at end of year$40,608  $(8,889) $31,719  
Supplemental disclosures of cash flow information:
Cash paid during the year for interest expense$34,521  $(28,336) 6,185  
Cash paid during the year for income and excise taxes$255  $—  255  
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENT
On April 21, 2020 and May 15, 2020 BRT filed Current Reports on Form 8-K stating that investors should not rely upon its (i) Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and earnings press releases and similar information filed or furnished on or after February 8, 2017 through November 7, 2019 (collectively, the “Previously Reported Information”) because it had included therein the accounts and operations of an aggregate of 27 of our joint ventures (the "Previously Consolidated Ventures") in a manner inconsistent with Accounting Standards Codification ("ASC") 810 (the "Consolidation Standard")-the information regarding the Previously Consolidated Ventures should have been presented in accordance with the equity method of accounting. Although the Previously Reported Information correctly stated (i) net income, funds from operations and adjusted funds from operations on an absolute and per share and (ii) correctly stated or understated total BRT Apartments stockholders’ equity, the presentation of the accounts and operations of the Previously Consolidated Ventures in the consolidated financial statements included herein is significantly different than that presented in the Previously Reported Information. Specifically, the equity method of accounting for the Previously Consolidated Ventures results in significant reductions in BRT's revenues, operating expenses, assets and liabilities from that presented in the Previously Reported Information. BRT believes that the restated and other information provided herein will facilitate the ability of the reader of its financial statements to easily and fully understand the impact of the restatement.

Accordingly this Annual Report on Form 10-K contains BRT's audited consolidated financial statements for the years ended December 31, 2019 and 2018, and restatements of the following previously filed consolidated financial statements: (i) our audited consolidated balance sheet as of December 31, 2018, and (ii) our unaudited consolidated financial statements for the quarter ended March 31, 2018 and all subsequent quarters through the quarter ended December 31, 2019. See note 2 to the consolidated financial statements.

The following tables represent BRT's restated unaudited condensed consolidated financial statements for each quarter-to-date beginning with March 31, 2018 through the quarter ended December 31, 2019.

The amounts reflected in the following tables "as previously reported" for all periods presented in both the 2018 and 2019 were derived from BRT's Quarterly Reports on Form 10-Q filed in the calendar year 2019.
ONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)

Unaudited
March 31, 2018
As Previously reportedRestatement ImpactAs Restated
ASSETS
Real estate properties, net of accumulated depreciation$993,250  $(871,725) $121,525  
Real estate loan5,200  —  5,200  
Cash and cash equivalents30,974  (11,158) 19,816  
Restricted cash7,702  —  7,702  
Deposits and escrows23,655  (21,930) 1,725  
Investment in unconsolidated joint ventures20,845  162,646  183,491  
Other assets7,005  (5,746) 1,259  
Total Assets$1,088,631  $(747,913) $340,718  
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of deferred costs$743,225  $(647,134) $96,091  
Junior subordinated notes, net of deferred costs37,028  —  37,028  
Accounts payable and accrued liabilities17,002  (2,764) 14,238  
Total Liabilities797,255  (649,898) 147,357  
Commitments and contingencies
Equity:
BRT Apartments Corp. stockholders' equity:
Preferred shares, $.01 par value: Authorized 2,000 shares, none issued—  —  —  
Common stock, $.01 par value, 300,000 shares authorized,
   13,575 shares issued 136  —  136  
Additional paid-in capital203,838  —  203,838  
Accumulated other comprehensive income2,132  (2,118) 14  
Accumulated deficit(10,967) —  (10,967) 
Total BRT Apartments Corp. stockholders' equity195,139  (2,118) 193,021  
Non-controlling interests96,237  (95,897) 340  
Total Equity291,376  (98,015) 193,361  
Total Liabilities and Equity$1,088,631  $(747,913) $340,718  
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)

Unaudited
June 30, 2018
As Previously reportedRestatement ImpactAs Restated
ASSETS
Real estate properties, net of accumulated depreciation$1,054,484  $(933,945) $120,539  
Real estate loan5,050  —  5,050  
Cash and cash equivalents25,061  (9,825) 15,236  
Restricted cash7,630  —  7,630  
Deposits and escrows23,265  (20,979) 2,286  
Investment in unconsolidated joint ventures20,542  171,200  191,742  
Other assets8,573  (7,190) 1,383  
Total Assets$1,144,605  $(800,739) $343,866  
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of deferred costs$783,532  $(687,909) $95,623  
Junior subordinated notes, net of deferred costs37,033  —  37,033  
Accounts payable and accrued liabilities22,554  (7,967) 14,587  
Total Liabilities843,119  (695,876) 147,243  
Commitments and contingencies
Equity:
BRT Apartments Corp. stockholders' equity:
Preferred shares, $.01 par value: Authorized 2,000 shares, none issued—  —  —  
Common stock, $.01 par value, 300,000 shares authorized,
   14,410 shares issued 144  —  144  
Additional paid-in capital214,716  —  214,716  
Accumulated other comprehensive income2,408  (2,388) 20  
Accumulated deficit(18,626) —  (18,626) 
Total BRT Apartments Corp. stockholders' equity198,642  (2,388) 196,254  
Non-controlling interests102,844  (102,475) 369  
Total Equity301,486  (104,863) 196,623  
Total Liabilities and Equity$1,144,605  $(800,739) $343,866  
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)

Unaudited
September 30, 2018
As previously reportedAdjustmentsProposed restatement
ASSETS
Real estate properties, net of accumulated depreciation$1,020,874  $(860,855) $160,019  
Real estate loan4,900  —  4,900  
Cash and cash equivalents27,360  (9,175) 18,185  
Restricted cash6,686  —  6,686  
Deposits and escrows24,458  (20,989) 3,469  
Investment in unconsolidated joint ventures20,078  159,510  179,588  
Other assets10,080  (8,398) 1,682  
Real estate properties held for sale38,928  (38,928) —  
Total Assets$1,153,364  $(778,835) $374,529  
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of deferred costs$792,432  $(668,615) $123,817  
Junior subordinated notes, net of deferred costs37,038  —  37,038  
Accounts payable and accrued liabilities27,409  (12,497) 14,912  
Total Liabilities856,879  (681,112) 175,767  
Commitments and contingencies
Equity:
BRT Apartments Corp. stockholders' equity:
Preferred shares, $.01 par value: Authorized 2,000 shares, none issued—  —  —  
Common stock, $.01 par value, 300,000 shares authorized,
   15,048 shares issued150  —  150  
Additional paid-in capital220,135  3,038  223,173  
Accumulated other comprehensive income2,629  (2,605) 24  
Accumulated deficit(24,927) —  (24,927) 
Total BRT Apartments Corp. stockholders' equity197,987  433  198,420  
Non-controlling interests98,498  (98,156) 342  
Total Equity296,485  (97,723) 198,762  
Total Liabilities and Equity$1,153,364  $(778,835) $374,529  
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)

Unaudited
March 31, 2019
As Previously reportedRestatement ImpactAs Restated
ASSETS
Real estate properties, net of accumulated depreciation$1,077,326  $(901,541) $175,785  
Real estate loan4,600  —  4,600  
Cash and cash equivalents21,062  (9,268) 11,794  
Restricted cash7,813  —  7,813  
Deposits and escrows14,902  (12,293) 2,609  
Investment in unconsolidated joint ventures19,125  163,677  182,802  
Other assets9,087  (5,582) 3,505  
Total Assets$1,153,915  $(765,007) $388,908  
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of deferred costs$808,729  $(671,490) $137,239  
Junior subordinated notes, net of deferred costs37,048  —  37,048  
Accounts payable and accrued liabilities22,620  (4,694) 17,926  
Total Liabilities868,397  (676,184) 192,213  
Commitments and contingencies       
Equity:
BRT Apartments Corp. stockholders' equity:
Preferred shares, $.01 par value: Authorized 2,000 shares, none issued—  —  —  
Common stock, $.01 par value, 300,000 shares authorized,
   15,175 shares issued152  —  152  
Additional paid-in capital217,344  6,392  223,736  
Accumulated other comprehensive income1,082  (1,080)  
Accumulated deficit(27,512) —  (27,512) 
Total BRT Apartments Corp. stockholders' equity191,066  5,312  196,378  
Non-controlling interests94,452  (94,135) 317  
Total Equity285,518  (88,823) 196,695  
Total Liabilities and Equity$1,153,915  $(765,007) $388,908  
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
Unaudited
June 30, 2019
As Previously reportedRestatement ImpactAs Restated
ASSETS
Real estate properties, net of accumulated depreciation$1,098,932  $(946,826) $152,106  
Real estate loan4,450  —  4,450  
Cash and cash equivalents17,336  (9,031) 8,305  
Restricted cash9,962  —  9,962  
Deposits and escrows17,103  (14,109) 2,994  
Investment in unconsolidated joint ventures18,474  169,750  188,224  
Other assets8,929  (4,625) 4,304  
Real estate properties held for sale22,722  —  22,722  
Total Assets$1,197,908  $(804,841) $393,067  
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of deferred costs$846,409  $(709,850) $136,559  
Junior subordinated notes, net of deferred costs37,053  —  37,053  
Credit facility, net of deferred costs8,923  —  8,923  
Accounts payable and accrued liabilities28,738  (7,681) 21,057  
Total Liabilities921,123  (717,531) 203,592  
Commitments and contingencies       
Equity:
BRT Apartments Corp. stockholders' equity:
Preferred shares, $.01 par value: Authorized 2,000 shares, none issued—  —  —  
Common stock, $.01 par value, 300,000 shares authorized,
   15,172 shares issued152  —  152  
Additional paid-in capital217,671  6,392  224,063  
Accumulated other comprehensive income143  (154) (11) 
Accumulated deficit(35,049) —  (35,049) 
Total BRT Apartments Corp. stockholders' equity182,917  6,238  189,155  
Non-controlling interests93,868  (93,548) 320  
Total Equity276,785  (87,310) 189,475  
Total Liabilities and Equity$1,197,908  $(804,841) $393,067  
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)

Unaudited
September 30, 2019
As Previously reportedRestatement ImpactAs Restated
ASSETS
Real estate properties, net of accumulated depreciation$1,112,896  $(961,850) $151,046  
Real estate loan4,300  —  4,300  
Cash and cash equivalents18,466  (9,095) 9,371  
Restricted cash10,789  —  10,789  
Deposits and escrows19,916  (17,039) 2,877  
Investment in unconsolidated joint ventures18,020  169,024  187,044  
Other assets8,210  (4,027) 4,183  
Total Assets$1,192,597  $(822,987) $369,610  
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of deferred costs$844,597  $(727,742) $116,855  
Junior subordinated notes, net of deferred costs37,058  —  37,058  
Credit facility, net of deferred costs3,530  —  3,530  
Accounts payable and accrued liabilities32,285  (10,119) 22,166  
Total Liabilities917,470  (737,861) 179,609  
Commitments and contingencies       
Equity:
BRT Apartments Corp. stockholders' equity:
Preferred shares, $.01 par value: Authorized 2,000 shares, none issued—  —  —  
Common stock, $.01 par value, 300,000 shares authorized,
   15,227 shares issued152  —  152  
Additional paid-in capital218,817  6,392  225,209  
Accumulated other comprehensive income(75) 61  (14) 
Accumulated deficit(35,331) —  (35,331) 
Total BRT Apartments Corp. stockholders' equity183,563  6,453  190,016  
Non-controlling interests91,564  (91,579) (15) 
Total Equity275,127  (85,126) 190,001  
Total Liabilities and Equity$1,192,597  $(822,987) $369,610  
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share data)

Unaudited
Three Months Ended March 31, 2018
As Previously ReportedRestatement ImpactAs Restated
Revenues:
Rental and other revenue from real estate properties$29,476  $(24,389) $5,087  
Other income175  —  175  
Total revenues29,651  (24,389) 5,262  
Expenses:
Real estate operating expenses14,198  (11,814) 2,384  
Interest expense8,657  (7,215) 1,442  
General and administrative2,453  —  2,453  
Depreciation9,240  (8,166) 1,074  
Total expenses34,548  (27,195) 7,353  
Total revenues less total expenses(4,897) 2,806  (2,091) 
Equity in (loss) earnings from unconsolidated joint venture properties(63) 316  253  
Equity in earnings from sale of unconsolidated joint venture properties—  26,402  26,402  
Gain on sale of real estate51,981  (51,544) 437  
Gain on insurance recovery3,227  (3,227) —  
Loss on extinguishment of debt(593) 593  —  
Income from continuing operations49,655  (24,654) 25,001  
(Benefit) provision for taxes(253) —  (253) 
Income from continuing operations, net of taxes49,908  (24,654) 25,254  
Income attributable to non-controlling interests(24,686) 24,654  (32) 
Net income attributable to common stockholders$25,222  $—  $25,222  
Weighted average number of shares of common stock outstanding:
Basic14,242,076  14,242,076  
Diluted14,442,076  14,442,076  
 Per share amounts attributable to common stockholders:
Basic$1.77  $1.77  
Diluted$1.75  $1.75  
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share data)

Unaudited
Three Months Ended June 30, 2018
As Previously ReportedRestatement ImpactAs Restated
Revenues:
Rental and other revenue from real estate properties$29,951  $(24,746) $5,205  
Other income203  —  203  
Total revenues30,154  (24,746) 5,408  
Expenses:
Real estate operating expenses14,459  (12,066) 2,393  
Interest expense8,786  (7,315) 1,471  
General and administrative2,452  —  2,452  
Depreciation10,200  (9,124) 1,076  
Total expenses35,897  (28,505) 7,392  
Total revenues less total expenses(5,743) 3,759  (1,984) 
Equity in loss from unconsolidated joint venture properties(127) (2,439) (2,566) 
Loss from continuing operations(5,870) 1,320  (4,550) 
Provision for taxes101  —  101  
Loss from continuing operations, net of taxes(5,971) 1,320  (4,651) 
Loss (Income) attributable to non-controlling interests1,282  (1,320) (38) 
Net loss attributable to common stockholders$(4,689) $—  $(4,689) 
Weighted average number of shares of common stock outstanding:  
Basic14,411,940  14,411,940  
Diluted14,411,940  14,411,940  
 Per share amounts attributable to common stockholders:
Basic$(0.33) $(0.33) 
Diluted$(0.33) $(0.33) 
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share data)

Unaudited
Six Months Ended June 30, 2018
Previously ReportedRestatement ImpactRestated
Revenues:
Rental and other revenue from real estate properties$59,427  $(49,135) $10,292  
Other income378  —  378  
Total revenues59,805  (49,135) 10,670  
Expenses:
Real estate operating expenses28,657  (23,880) 4,777  
Interest expense17,443  (14,530) 2,913  
General and administrative4,905  —  4,905  
Depreciation19,440  (17,290) 2,150  
Total expenses70,445  (55,700) 14,745  
Total revenues less total expenses(10,640) 6,565  (4,075) 
Equity in (loss) income from unconsolidated joint venture properties(190) (2,123) (2,313) 
Equity in earnings from sale of unconsolidated joint venture properties—  26,402  26,402  
Gain on sale of real estate51,981  (51,544) 437  
Gain on insurance recovery3,227  (3,227) —  
Loss on extinguishment of debt(593) 593  —  
Income from continuing operations43,785  (23,334) 20,451  
Benefit for taxes(152) —  (152) 
Income from continuing operations, net of taxes43,937  (23,334) 20,603  
Income attributable to non-controlling interests(23,404) 23,334  (70) 
Net income (loss) attributable to common stockholders$20,533  $—  $20,533  
Weighted average number of shares of common stock outstanding:  
Basic14,327,477  14,327,477  
Diluted14,527,477  14,527,477  
 Per share amounts attributable to common stockholders:
Basic$1.43  $1.43  
Diluted$1.41  $1.41  
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share data)

Unaudited
Three Months Ended September 30, 2018
As Previously ReportedRestatement ImpactAs Restated
Revenues:
Rental and other revenue from real estate properties$31,283  $(25,156) $6,127  
Other income198  —  198  
Total revenues31,481  (25,156) 6,325  
Expenses:
Real estate operating expenses15,661  (12,709) 2,952  
Interest expense8,965  (7,186) 1,779  
General and administrative2,002  —  2,002  
Depreciation10,416  (9,047) 1,369  
Total expenses37,044  (28,942) 8,102  
Total revenues less total expenses(5,563) 3,786  (1,777) 
Equity in (loss) from unconsolidated joint venture properties(174) (1,453) (1,627) 
Gain on sale of real estate424  —  424  
Gain on insurance recovery1,272  (1,272) —  
Loss from continuing operations(4,041) 1,061  (2,980) 
Provision for taxes97  —  97  
Loss from continuing operations, net of taxes(4,138) 1,061  (3,077) 
Loss (income) attributable to non-controlling interests1,027  (1,061) (34) 
Net loss attributable to common stockholders$(3,111) $—  $(3,111) 
Weighted average number of shares of common stock outstanding:  
Basic15,635,953  15,635,953  
Diluted15,635,953  15,635,953  
 Per share amounts attributable to common stockholders:
Basic$(0.20) $(0.20) 
Diluted$(0.20) $(0.20) 
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share data)

Unaudited
Nine Months Ended September 30, 2018
Previously ReportedRestatement ImpactRestated
Revenues:
Rental and other revenue from real estate properties$90,710  $(74,291) $16,419  
Other income$576  —  576  
Total revenues91,286  (74,291) 16,995  
Expenses:
Real estate operating expenses44,318  (36,589) 7,729  
Interest expense26,408  (21,716) 4,692  
General and administrative6,907  —  6,907  
Depreciation29,856  (26,337) 3,519  
Total expenses107,489  (84,642) 22,847  
Total revenues less total expenses(16,203) 10,351  (5,852) 
Equity in (loss) from unconsolidated joint venture properties(364) (3,576) (3,940) 
Equity in earnings from sale of unconsolidated joint venture properties—  26,402  26,402  
Gain on sale of real estate52,405  (51,544) 861  
Gain on insurance recovery4,499  (4,499) —  
Loss on extinguishment of debt(593) 593  —  
Income from continuing operations39,744  (22,273) 17,471  
Benefit for taxes(55) —  (55) 
Income from continuing operations, net of taxes39,799  (22,273) 17,526  
Income attributable to non-controlling interests(22,377) 22,273  (104) 
Net income attributable to common stockholders$17,422  $—  $17,422  
Weighted average number of shares of common stock outstanding:  
Basic14,768,429  14,768,429  
Diluted14,968,429  14,968,429  
 Per share amounts attributable to common stockholders:
Basic$1.18  $1.18  
Diluted$1.16  $1.16  
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share data)

Unaudited
Three Months Ended December 31, 2018
As Previously ReportedRestatement ImpactAs Restated
Revenues:
Rental and other revenue from real estate properties$31,216  $(25,005) $6,211  
Other income223  —  223  
Total revenues31,439  (25,005) 6,434  
Expenses:
Real estate operating expenses15,224  (12,258) 2,966  
Interest expense8,946  (7,199) 1,747  
General and administrative2,476  —  2,476  
Depreciation10,192  (8,784) 1,408  
Total expenses36,838  (28,241) 8,597  
Total revenues less total expenses(5,399) 3,236  (2,163) 
Equity in (loss) income from unconsolidated joint venture properties(125) (1,023) (1,148) 
Equity in earnings from sale of unconsolidated joint venture properties—  11,467  11,467  
Gain on sale of real estate19,514  (19,514) —  
Gain on insurance recovery1,585  (1,585) —  
Loss on extinguishment of debt(207) 207  —  
Income from continuing operations15,368  (7,212) 8,156  
Provision for taxes58  (1) 57  
Income from continuing operations, net of taxes15,310  (7,211) 8,099  
Income attributable to non-controlling interests(7,237) 7,211  (26) 
Net income attributable to common stockholders$8,073  $—  $8,073  
Weighted average number of shares of common stock outstanding:  
Basic15,744,233  15,744,233  
Diluted15,944,233  15,944,233  
Per share amounts attributable to common stockholders:
Basic$0.51  $0.51  
Diluted$0.51  $0.51  
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share data)

Unaudited
Three Months Ended March 31, 2019
As Previously ReportedRestatement ImpactAs Restated
Revenues:
Rental and other revenue from real estate properties$30,702  $(23,816) $6,886  
Other income244  —  244  
Total revenues30,946  (23,816) 7,130  
Expenses:
Real estate operating expenses14,814  (11,638) 3,176  
Interest expense8,769  (6,823) 1,946  
General and administrative2,544  —  2,544  
Depreciation9,617  (8,070) 1,547  
Total expenses35,744  (26,531) 9,213  
Total revenues less total expenses(4,798) 2,715  (2,083) 
Equity in loss from unconsolidated joint ventures(223) (1,845) (2,068) 
Loss from continuing operations(5,021) 870  (4,151) 
Provision for taxes62  —  62  
Loss from continuing operations, net of taxes(5,083) 870  (4,213) 
Loss (income) attributable to non-controlling interests836  (870) (34) 
Net loss attributable to common stockholders$(4,247) $—  $(4,247) 
Weighted average number of shares of common stock outstanding:  
Basic15,886,493  15,886,493  
Diluted15,886,493  15,886,493  
Per share amounts attributable to common stockholders:
Basic$(0.27) $(0.27) 
Diluted$(0.27) $(0.27) 
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share data)
Unaudited
Three Months Ended June 30, 2019
As Previously ReportedRestatement ImpactAs Restated
Revenues:
Rental and other revenue from real estate properties$32,930  $(25,833) $7,097  
Other income190  —  190  
Total revenues33,120  (25,833) 7,287  
Expenses:
Real estate operating expenses16,100  (12,775) 3,325  
Interest expense9,739  (7,690) 2,049  
General and administrative2,481  —  2,481  
Depreciation10,347  (8,919) 1,428  
Total expenses38,667  (29,384) 9,283  
Total revenues less total expenses(5,547) 3,551  (1,996) 
Equity in loss from unconsolidated joint ventures(161) (2,057) (2,218) 
Gain on insurance recovery517  (517) —  
Loss from continuing operations(5,191) 977  (4,214) 
Provision for taxes59  —  59  
Loss from continuing operations, net of taxes(5,250) 977  (4,273) 
Loss (income) attributable to non-controlling interests933  (977) (44) 
Net loss attributable to common stockholders$(4,317) $—  $(4,317) 
Weighted average number of shares of common stock outstanding:  
Basic15,900,316  15,900,316  
Diluted15,900,316  15,900,316  
Per share amounts attributable to common stockholders:
Basic$(0.27) $(0.27) 
Diluted$(0.27) $(0.27) 
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share data)
Unaudited
Six Months Ended June 30, 2019
Previously ReportedRestatement ImpactRestated
Revenues:
Rental and other revenue from real estate properties$63,632  $(49,649) $13,983  
Other income434  —  434  
Total revenues64,066  (49,649) 14,417  
Expenses:
Real estate operating expenses30,914  (24,413) 6,501  
Interest expense18,508  (14,513) 3,995  
General and administrative5,025  —  5,025  
Depreciation19,964  (16,989) 2,975  
Total expenses74,411  (55,915) 18,496  
Total revenues less total expenses(10,345) 6,266  (4,079) 
Equity in (loss) income from unconsolidated joint venture properties(384) (3,902) (4,286) 
Gain on insurance recovery517  (517) —  
Income from continuing operations(10,212) 1,847  (8,365) 
Provision for taxes121  —  121  
Income from continuing operations, net of taxes(10,333) 1,847  (8,486) 
Loss (income) attributable to non-controlling interests1,769  (1,847) (78) 
Net loss attributable to common stockholders$(8,564) $—  $(8,564) 
Weighted average number of shares of common stock outstanding:  
Basic15,893,443  15,893,443  
Diluted15,893,443  15,893,443  
Per share amounts attributable to common stockholders:
Basic$(0.54) $(0.54) 
Diluted$(0.54) $(0.54) 
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share data)
Unaudited
Three Months Ended September 30, 2019
As Previously ReportedRestatement ImpactAs Restated
Revenues:
Rental and other revenue from real estate properties$33,875  $(27,614) $6,261  
Other income161  —  161  
Total revenues34,036  (27,614) 6,422  
Expenses:
Real estate operating expenses16,281  (13,540) 2,741  
Interest expense9,845  (7,975) 1,870  
General and administrative2,430  —  2,430  
Depreciation9,950  (8,577) 1,373  
Total expenses38,506  (30,092) 8,414  
Total revenues less total expenses(4,470) 2,478  (1,992) 
Equity in loss from unconsolidated joint ventures(259) (2,131) (2,390) 
Gain on sale of real estate9,938  —  9,938  
Loss on extinguishment of debt(1,766) 379  (1,387) 
Income from continuing operations3,443  726  4,169  
Provision for taxes98  —  98  
Income from continuing operations, net of taxes3,345  726  4,071  
(Income) attributable to non-controlling interests(73) (726) (799) 
Net income attributable to common stockholders$3,272  $—  $3,272  
Weighted average number of shares of common stock outstanding:  
Basic15,913,975  15,913,975  
Diluted16,113,975  16,113,975  
Per share amounts attributable to common stockholders:
Basic$0.21  $0.21  
Diluted$0.20  $0.20  
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share data)
Unaudited
Nine Months Ended September 30, 2019
Previously ReportedRestatement ImpactRestated
Revenues:
Rental and other revenue from real estate properties$97,507  $(77,263) $20,244  
Other income$595  —  595  
Total revenues98,102  (77,263) 20,839  
Expenses:
Real estate operating expenses47,195  (37,953) 9,242  
Interest expense28,353  (22,488) 5,865  
General and administrative7,455  —  7,455  
Depreciation29,914  (25,566) 4,348  
Total expenses112,917  (86,007) 26,910  
Total revenues less total expenses(14,815) 8,744  (6,071) 
Equity in (loss) from unconsolidated joint venture properties(643) (6,033) (6,676) 
Gain on sale of real estate9,938  —  9,938  
Gain on insurance recovery517  (517) —  
Loss on extinguishment of debt(1,766) 379  (1,387) 
Income from continuing operations(6,769) 2,573  (4,196) 
Provision for taxes219  —  219  
Loss from continuing operations, net of taxes(6,988) 2,573  (4,415) 
Loss (income) attributable to non-controlling interests1,696  (2,573) (877) 
Net loss attributable to common stockholders$(5,292) $—  $(5,292) 
Weighted average number of shares of common stock outstanding:  
Basic15,900,362  15,900,362  
Diluted15,900,362  15,900,362  
Per share amounts attributable to common stockholders:
Basic$(0.33) $(0.33) 
Diluted$(0.33) $(0.33) 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Dollars in thousands) 

Unaudited
Three Months Ended March 31, 2018
As Previously ReportedRestatement ImpactAs Restated
Net income$49,908  $(24,654) $25,254  
Other comprehensive income:
Unrealized gain on derivative instruments1,132  (1,115) 17  
Other comprehensive income1,132  (1,115) 17  
Comprehensive income51,040  (25,769) 25,271  
Comprehensive income attributable to non-controlling interests$(25,032) 24,997  (35) 
Comprehensive income attributable to common stockholders$26,008  $(772) $25,236  
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)  
(Dollars in thousands) 

Unaudited
Three Months Ended June 30, 2018
As Previously ReportedRestatement ImpactAs Restated
Net loss$(5,971) $1,320  $(4,651) 
Other comprehensive (loss) income:
Unrealized gain on derivative instruments398  (391)  
Other comprehensive income398  (391)  
Comprehensive loss(5,573) 929  (4,644) 
Comprehensive loss (income) attributable to non-controlling interests$1,160  (1,199) (39) 
Comprehensive loss attributable to common stockholders$(4,413) $(270) $(4,683) 




Unaudited
Six Months Ended June 30, 2018
As Previously ReportedRestatement ImpactAs Restated
Net loss$43,937  $(23,334) $20,603  
Other comprehensive (loss) income:
Unrealized gain on derivative instruments1,530  (1,506) 24  
Other comprehensive income1,530  (1,506) 24  
Comprehensive income45,467  (24,840) 20,627  
Comprehensive income attributable to non-controlling interests$(23,872) 23,798  (74) 
Comprehensive income attributable to common stockholders$21,595  $(1,042) $20,553  
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) 
(Dollars in thousands) 

Unaudited
Three Months Ended September 30, 2018
As Previously ReportedRestatement ImpactAs Restated
Net loss$(4,138) $1,061  $(3,077) 
Other comprehensive income:
Unrealized gain on derivative instruments316  (311)  
Other comprehensive income316  (311)  
Comprehensive loss(3,822) 750  (3,072) 
Comprehensive loss (income) attributable to non-controlling interests$934  (969) (35) 
Comprehensive loss attributable to common stockholders$(2,888) $(219) $(3,107) 




Unaudited
Nine Months Ended September 30, 2018
As Previously ReportedRestatement ImpactAs Restated
Net income$39,799  $(22,273) $17,526  
Other comprehensive income:
Unrealized gain on derivative instruments1,846  (1,817) 29  
Other comprehensive income1,846  (1,817) 29  
Comprehensive income41,645  (24,090) 17,555  
Comprehensive (income) attributable to non-controlling interests$(22,938) 22,829  (109) 
Comprehensive income attributable to common stockholders$18,707  $(1,261) $17,446  
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME  
(Dollars in thousands) 

Unaudited
Three Months Ended December 31, 2018
As Previously ReportedRestatement ImpactAs Restated
Net income$15,310  $(7,211) $8,099  
Other comprehensive loss:
Unrealized loss on derivative instruments(1,359) 1,342  (17) 
Other comprehensive loss(1,359) 1,342  (17) 
Comprehensive income13,951  (5,869) 8,082  
Comprehensive income attributable to non-controlling interests$(6,819) 6,796  (23) 
Comprehensive income attributable to common stockholders$7,132  $927  $8,059  
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME  
(Dollars in thousands) 

Unaudited
Three Months Ended March 31, 2019
As Previously ReportedRestatement ImpactAs Restated
Net loss$(5,083) $870  $(4,213) 
Other comprehensive loss:
Unrealized loss on derivative instruments(869) 860  (9) 
Other comprehensive loss(869) 860  (9) 
Comprehensive loss(5,952) 1,730  (4,222) 
Comprehensive loss (income) attributable to non-controlling interests$1,100  (1,132) (32) 
Comprehensive loss attributable to common stockholders$(4,852) $598  $(4,254) 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME  
(Dollars in thousands) 

Unaudited
Three Months Ended June 30, 2019
As Previously ReportedRestatement ImpactAs Restated
Net loss$(5,250) $977  $(4,273) 
Other comprehensive (loss) income:
Unrealized loss on derivative instruments(1,353) 1,338  (15) 
Other comprehensive loss(1,353) 1,338  (15) 
Comprehensive income(6,603) 2,315  (4,288) 
Comprehensive loss (income) attributable to non-controlling interests$1,346  (1,388) (42) 
Comprehensive loss attributable to common stockholders$(5,257) $927  $(4,330) 




Unaudited
Six Months Ended June 30, 2019
As Previously ReportedRestatement ImpactAs Restated
Net loss$(10,333) $1,847  $(8,486) 
Other comprehensive (loss) income:
Unrealized loss on derivative instruments(2,222) 2,198  (24) 
Other comprehensive loss(2,222) 2,198  (24) 
Comprehensive income(12,555) 4,045  (8,510) 
Comprehensive loss (income) attributable to non-controlling interests$2,446  (2,520) (74) 
Comprehensive loss attributable to common stockholders$(10,109) $1,525  $(8,584) 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Dollars in thousands) 

Unaudited
Three Months Ended September 30, 2019
As Previously ReportedRestatement ImpactAs Restated
Net income$3,345  $726  $4,071  
Other comprehensive (loss) income:
Unrealized loss on derivative instruments(322) 319  (3) 
Other comprehensive loss(322) 319  (3) 
Comprehensive income3,023  1,045  4,068  
Comprehensive loss (income) attributable to non-controlling interests31  (830) (799) 
Comprehensive income attributable to common stockholders$3,054  $215  $3,269  




Unaudited
Nine Months Ended September 30, 2019
As Previously ReportedRestatement ImpactAs Restated
Net loss$(6,988) $2,573  $(4,415) 
Other comprehensive loss:
Unrealized loss on derivative instruments(2,544) 2,517  (27) 
Other comprehensive loss(2,544) 2,517  (27) 
Comprehensive loss(9,532) 5,090  (4,442) 
Comprehensive loss (income) attributable to non-controlling interests2,477  (3,350) (873) 
Comprehensive loss attributable to common stockholders$(7,055) $1,740  $(5,315) 
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
For the Three Months Ended March 31, 2018
(Dollars in thousands, except share data)
Shares of Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)(Accumulated Deficit)Non Controlling InterestsTotal
As Previously Reported
Balances, December 31, 2017$133  $202,225  $1,346  (33,292) $72,935  $243,347  
Distributions - Common Stock - $0.20 per share—  —  —  (2,897) —  (2,897) 
Restricted stock vesting (1) —  —  —  —  
Compensation expense—restricted stock and restricted stock units—  297  —  —  —  297  
Consolidation of investment in limited partnership—  —  —  —  12,370  12,370  
Contributions from non-controlling interests—  —  —  —  18,088  18,088  
Distributions to non-controlling interests—  —  —  —  (32,020) (32,020) 
Purchase of non-controlling interest—  (82) —  —  (168) (250) 
Shares issued through equity offering program, net 1,399  —  —  —  1,401  
Shares repurchased—  —  —  —  —  —  
Net income—  —  —  25,222  24,686  49,908  
Other comprehensive income—  —  786  —  346  1,132  
Comprehensive income—  —  —  —  —  51,040  
Balances, March 31, 2018$136  $203,838  $2,132  $(10,967) $96,237  $291,376  
Restatement Impact
Balances, December 31, 2017$—  $—  $(1,348) $—  $(72,458) $(73,806) 
Distributions - Common Stock - $0.20 per share—  —  —  —  —  —  
Restricted stock vesting—  —  —  —  —  —  
Compensation expense—restricted stock and restricted stock units—  —  —  —  —  —  
Consolidation of investment in limited partnership—  —  —  —  (12,370) (12,370) 
Contributions from non-controlling interests—  —  —  —  (18,088) (18,088) 
Distributions to non-controlling interests—  —  —  —  32,018  32,018  
Purchase of non-controlling interest—  —  —  —  —  —  
Shares issued through equity offering program, net—  —  —  —  —  —  
Shares repurchased—  —  —  —  —  —  
Net income—  —  —  —  (24,654) (24,654) 
Other comprehensive income—  —  (770) —  (345) (1,115) 
Comprehensive income—  —  —  —  —  (25,769) 
Restatement Impact Balances, March 31, 2018$—  $—  $(2,118) $—  $(95,897) $(98,015) 
Shares of Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)(Accumulated Deficit)Non Controlling InterestsTotal
As Restated
Balances, December 31, 2017133  202,225  (2) (33,292) 477  169,541  
Distributions - Common Stock - $0.20 per share—  —  —  (2,897) —  (2,897) 
Restricted stock vesting (1) —  —  —  —  
Compensation expense—restricted stock and restricted stock units—  297  —  —  —  297  
Consolidation of investment in limited partnership—  —  —  —  —  —  
Contributions from non-controlling interests—  —  —  —  —  —  
Distributions to non-controlling interests—  —  —  —  (2) (2) 
Purchase of non-controlling interest—  (82) —  —  (168) (250) 
Shares issued through equity offering program, net 1,399  —  —  —  1,401  
Shares repurchased—  —  —  —  —  —  
Net income—  —  —  25,222  32  25,254  
Other comprehensive income—  —  16  —   17  
Comprehensive income—  —  —  —  —  25,271  
Impact Balances, March 31, 2018$136  $203,838  $14  $(10,967) $340  $193,361  
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
For the Three Months Ended June 30, 2018
(Dollars in thousands, except share data)
Shares of Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)(Accumulated Deficit)Non Controlling InterestsTotal
As Previously Reported
Balances, March 31, 2018$136  $203,838  $2,132  (10,967) $96,237  $291,376  
Distributions - Common Stock - $0.20 per share—  —  —  (2,970) —  (2,970) 
Compensation expense—restricted stock and restricted stock units—  361  —  —  —  361  
Consolidation of investment in limited partnership—  —  —  —  —  —  
Contributions from non-controlling interests—  —  —  —  9,930  9,930  
Distributions to non-controlling interests—  —  —  —  (2,163) (2,163) 
Purchase of non-controlling interest—  —  —  —  —  —  
Shares issued through equity offering program, net 10,517  —  —  —  10,525  
Shares repurchased—  —  —  —  —  —  
Net income—  —  —  (4,689) (1,282) (5,971) 
Other comprehensive income—  —  276  —  122  398  
Comprehensive income—  —  —  —  —  (5,573) 
Balances, June 30, 2018$144  $214,716  $2,408  $(18,626) $102,844  $301,486  
Restatement Impact
Balances, March 31, 2018$—  $—  $(2,118) $—  $(95,897) $(98,015) 
Distributions - Common Stock - $0.20 per share—  —  —  —  —  —  
Compensation expense—restricted stock and restricted stock units—  —  —  —  —  —  
Consolidation of investment in limited partnership—  —  —  —  —  —  
Contributions from non-controlling interests—  —  —  —  (9,930) (9,930) 
Distributions to non-controlling interests—  —  —  —  2,153  2,153  
Purchase of non-controlling interest—  —  —  —  —  —  
Shares issued through equity offering program, net—  —  —  —  —  —  
Shares repurchased—  —  —  —  —  —  
Net income—  —  —  —  1,320  1,320  
Other comprehensive income—  —  (270) —  (121) (391) 
Comprehensive income—  —  —  —  —  929  
Restatement Impact Balances, June 30, 2018$—  $—  $(2,388) $—  $(102,475) $(104,863) 
Shares of Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)(Accumulated Deficit)Non Controlling InterestsTotal
As Restated
Balances, March 31, 2018136  203,838  14  (10,967) 340  193,361  
Distributions - Common Stock - $0.20 per share—  —  —  (2,970) —  (2,970) 
Compensation expense—restricted stock and restricted stock units—  361  —  —  —  361  
Consolidation of investment in limited partnership—  —  —  —  —  —  
Contributions from non-controlling interests—  —  —  —  —  —  
Distributions to non-controlling interests—  —  —  —  (10) (10) 
Purchase of non-controlling interest—  —  —  —  —  —  
Shares issued through equity offering program, net 10,517  —  —  —  10,525  
Shares repurchased—  —  —  —  —  —  
Net income—  —  —  (4,689) 38  (4,651) 
Other comprehensive income—  —   —    
Comprehensive income—  —  —  —  —  (4,644) 
Impact Balances, June 30, 2018$144  $214,716  $20  $(18,626) $369  $196,623  
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
For the Three Months Ended September 30, 2018
(Dollars in thousands, except share data)
Shares of Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)(Accumulated Deficit)Non Controlling InterestsTotal
As Previously Reported
Balances, June 30, 2018$144  $214,716  $2,408  (18,626) $102,844  $301,486  
Distributions - Common Stock - $0.20 per share—  —  —  (3,190) —  (3,190) 
Restricted stock vesting—  —  —  —  —  —  
Compensation expense—restricted stock and restricted stock units—  15  —  —  —  15  
Consolidation of investment in limited partnership—  —  —  —  —  —  
Contributions from non-controlling interests—  —  —  —  —  —  
Distributions to non-controlling interests—  —  —  —  (1,525) (1,525) 
Purchase of non-controlling interest—  (3,035) —  —  (1,889) (4,924) 
Shares issued through equity offering program, net 8,480  —  —  —  8,486  
Shares repurchased—  (41) —  —  —  (41) 
Net income—  —  —  (3,111) (1,027) (4,138) 
Other comprehensive income—  —  221  —  95  316  
Comprehensive income—  —  —  —  —  (3,822) 
Balances, September 30, 2018$150  $220,135  $2,629  $(24,927) $98,498  $296,485  
Restatement Impact
Balances, June 30, 2018$—  $—  $(2,388) $—  $(102,475) $(104,863) 
Distributions - Common Stock - $0.20 per share—  —  —  —  —  —  
Restricted stock vesting—  —  —  —  —  —  
Compensation expense—restricted stock and restricted stock units—  —  —  —  —  —  
Consolidation of investment in limited partnership—  —  —  —  —  —  
Contributions from non-controlling interests—  —  —  —  —  —  
Distributions to non-controlling interests—  —  —  —  1,463  1,463  
Purchase of non-controlling interest—  3,035  —  —  1,889  4,924  
Shares issued through equity offering program, net—   —  —  —   
Shares repurchased—  —  —  —  —  —  
Net income—  —  —  —  1,061  1,061  
Other comprehensive income—  —  (217) —  (94) (311) 
Comprehensive income—  —  —  —  —  750  
Restatement Impact Balances, September 30, 2018$—  $3,038  $(2,605) $—  $(98,156) $(97,723) 
Shares of Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)(Accumulated Deficit)Non Controlling InterestsTotal
As Restated
Balances, June 30, 2018144  214,716  20  (18,626) 369  196,623  
Distributions - Common Stock - $0.20 per share—  —  —  (3,190) —  (3,190) 
Restricted stock vesting—  —  —  —  —  —  
Compensation expense—restricted stock and restricted stock units—  15  —  —  —  15  
Consolidation of investment in limited partnership—  —  —  —  —  —  
Contributions from non-controlling interests—  —  —  —  —  —  
Distributions to non-controlling interests—  —  —  —  (62) (62) 
Purchase of non-controlling interest—  —  —  —  —  —  
Shares issued through equity offering program, net 8,483  —  —  —  8,489  
Shares repurchased—  (41) —  —  0(41) 
Net income—  —  —  (3,111) 34  (3,077) 
Other comprehensive income—  —   —    
Comprehensive income—  —  —  —  —  (3,072) 
Balances, September 30, 2018$150  $223,173  $24  $(24,927) $342  $198,762  
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
For the Three Months Ended December 31, 2018
(Dollars in thousands, except share data)
Shares of Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)(Accumulated Deficit)Non Controlling InterestsTotal
As Previously Reported
Balances, September 30, 2018$150  $220,135  $2,629  (24,927) $98,498  $296,485  
Distributions - Common Stock - $0.20 per share—  —  —  (3,190) —  (3,190) 
Restricted stock vesting—  —  —  —  —  —  
Compensation expense—restricted stock and restricted stock units—  323  —  —  —  323  
Consolidation of investment in limited partnership—  —  —  —  —  —  
Contributions from non-controlling interests—  —  —  —  1,435  1,435  
Distributions to non-controlling interests—  —  —  —  (15,070) (15,070) 
Purchase of non-controlling interest—  (3,357) —  —  (97) (3,454) 
Shares issued through equity offering program, net—  —  —  —  —  —  
Shares repurchased—  (120) —  —  —  (120) 
Net income—  —  —  8,073  7,237  15,310  
Other comprehensive income—  —  (941) —  (418) (1,359) 
Comprehensive income—  —  —  —  —  13,951  
Balances, December 31, 2018$150  $216,981  $1,688  $(20,044) $91,585  $290,360  
Restatement Impact
Balances, September 30, 2018$—  $3,038  $(2,605) $—  $(98,156) $(97,723) 
Distributions - Common Stock - $0.20 per share—  —  —  —  —  —  
Restricted stock vesting—  —  —  —  —  —  
Compensation expense—restricted stock and restricted stock units *—  (3) —  —  —  (3) 
Consolidation of investment in limited partnership—  —  —  —  —  —  
Contributions from non-controlling interests—  —  —  —  (1,435) (1,435) 
Distributions to non-controlling interests—  —  —  —  15,035  15,035  
Purchase of non-controlling interest—  3,357  —  —  97  3,454  
Shares issued through equity offering program, net—  —  —  —  —  —  
Shares repurchased—  —  —  —  —  —  
Net income—  —  —  —  (7,211) (7,211) 
Other comprehensive income—  —  926  —  416  1,342  
Comprehensive income—  —  —  —  —  (5,869) 
Restatement Impact Balances, December 31, 2018$—  $6,392  $(1,679) $—  $(91,254) $(86,541) 
*denotes rounding difference
Shares of Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)(Accumulated Deficit)Non Controlling InterestsTotal
As Restated
Balances, September 30, 2018150  223,173  24  (24,927) 342  198,762  
Distributions - Common Stock - $0.20 per share—  —  —  (3,190) —  (3,190) 
Restricted stock vesting—  —  —  —  —  —  
Compensation expense—restricted stock and restricted stock units—  320  —  —  —  320  
Consolidation of investment in limited partnership—  —  —  —  —  —  
Contributions from non-controlling interests—  —  —  —  —  —  
Distributions to non-controlling interests—  —  —  —  (35) (35) 
Purchase of non-controlling interest—  —  —  —  —  —  
Shares issued through equity offering program, net—  —  —  —  —  —  
Shares repurchased—  (120) —  —  0(120) 
Net income—  —  —  8,073  26  8,099  
Other comprehensive income—  —  (15) —  (2) (17) 
Comprehensive income—  —  —  —  —  8,082  
Balances, December 31, 2018$150  $223,373  $ $(20,044) $331  $203,819  
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
For the Three Months March 31, 2019
(Dollars in thousands, except share data)
Shares of Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)(Accumulated Deficit)Non Controlling InterestsTotal
As Previously Reported
Balances, December 31, 2018$150  $216,981  $1,688  (20,044) $91,585  $290,360  
Distributions - Common Stock - $0.20 per share—  —  —  (3,221) —  (3,221) 
Restricted stock vesting (2) —  —  —  —  
Compensation expense—restricted stock and restricted stock units—  365  —  —  —  365  
Consolidation of investment in limited partnership—  —  —  —  6,047  6,047  
Contributions from non-controlling interests—  —  —  —  264  264  
Distributions to non-controlling interests—  —  —  —  (2,345) (2,345) 
Purchase of non-controlling interest—  —  —  —  —  —  
Shares issued through equity offering program, net—  —  —  —  —  —  
Shares repurchased—  —  —  —  —  —  
Net income—  —  —  (4,247) (836) (5,083) 
Other comprehensive income—  —  (606) —  (263) (869) 
Comprehensive income—  —  —  —  —  (5,952) 
Balances, March 31, 2019$152  $217,344  $1,082  $(27,512) $94,452  $285,518  
Restatement Impact
Balances, December 31, 2018$—  $6,392  $(1,679) $—  $(91,254) $(86,541) 
Distributions - Common Stock - $0.20 per share—  —  —  —  —  —  
Restricted stock vesting—  —  —  —  —  —  
Compensation expense—restricted stock and restricted stock units—  —  —  —  —  —  
Consolidation of investment in limited partnership—  —  —  —  (6,047) (6,047) 
Contributions from non-controlling interests—  —  —  —  (264) (264) 
Distributions to non-controlling interests—  —  —  —  2,299  2,299  
Purchase of non-controlling interest—  —  —  —  —  —  
Shares issued through equity offering program, net—  —  —  —  —  —  
Shares repurchased—  —  —  —  —  —  
Net income—  —  —  —  870  870  
Other comprehensive income—  —  599  —  261  860  
Comprehensive income—  —  —  —  —  1,730  
Restatement Impact Balances, March 31, 2019$—  $6,392  $(1,080) $—  $(94,135) $(88,823) 
Shares of Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)(Accumulated Deficit)Non Controlling InterestsTotal
As Restated
Balances, December 31, 2018150  223,373   (20,044) 331  203,819  
Distributions - Common Stock - $0.20 per share—  —  —  (3,221) —  (3,221) 
Restricted stock vesting (2) —  —  —  —  
Compensation expense—restricted stock and restricted stock units—  365  —  —  —  365  
Consolidation of investment in limited partnership—  —  —  —  —  —  
Contributions from non-controlling interests—  —  —  —  —  —  
Distributions to non-controlling interests—  —  —  —  (46) (46) 
Purchase of non-controlling interest—  —  —  —  —  —  
Shares issued through equity offering program, net—  —  —  —  —  —  
Shares repurchased—  —  —  —  —  —  
Net income—  —  —  (4,247) 34  (4,213) 
Other comprehensive income—  —  (7) —  (2) (9) 
Comprehensive income—  —  —  —  —  (4,222) 
Balances, March 31, 2019$152  $223,736  $ $(27,512) $317  $196,695  
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
For the Three Months June 30, 2019
(Dollars in thousands, except share data)
Shares of Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)(Accumulated Deficit)Non Controlling InterestsTotal
As Previously Reported
Balances, March 31, 2019$152  $217,344  $1,082  (27,512) $94,452  $285,518  
Distributions - Common Stock - $0.20 per share—  —  —  (3,220) —  (3,220) 
Restricted stock vesting—  —  —  —  —  —  
Compensation expense—restricted stock and restricted stock units—  373  —  —  —  373  
Consolidation of investment in limited partnership—  —  —  —  —  —  
Contributions from non-controlling interests—  —  —  —  3,027  3,027  
Distributions to non-controlling interests—  —  —  —  (2,264) (2,264) 
Purchase of non-controlling interest—  —  —  —  —  —  
Shares issued through equity offering program, net—  —  —  —  —  —  
Shares repurchased - 3,590 shares—  (46) —  —  —  (46) 
Net income—  —  —  (4,317) (933) (5,250) 
Other comprehensive income—  —  (939) —  (414) (1,353) 
Comprehensive income—  —  —  —  —  (6,603) 
Balances, June 30, 2019$152  $217,671  $143  $(35,049) $93,868  $276,785  
Restatement Impact
Balances, March 31, 2019$—  $6,392  $(1,080) $—  $(94,135) $(88,823) 
Distributions - Common Stock - $0.20 per share—  —  —  —  —  —  
Restricted stock vesting—  —  —  —  —  —  
Compensation expense—restricted stock and restricted stock units—  —  —  —  —  —  
Consolidation of investment in limited partnership—  —  —  —  —  —  
Contributions from non-controlling interests—  —  —  —  (3,027) (3,027) 
Distributions to non-controlling interests—  —  —  —  2,225  2,225  
Purchase of non-controlling interest—  —  —  —  —  —  
Shares issued through equity offering program, net—  —  —  —  —  —  
Shares repurchased—  —  —  —  —  —  
Net income—  —  —  —  977  977  
Other comprehensive income—  —  926  —  412  1,338  
Comprehensive income—  —  —  —  —  2,315  
Restatement Impact Balances, June 30, 2019$—  $6,392  $(154) $—  $(93,548) $(87,310) 
Shares of Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)(Accumulated Deficit)Non Controlling InterestsTotal
As Restated
Balances, March 31, 2019152  223,736   (27,512) 317  196,695  
Distributions - Common Stock - $0.20 per share—  —  —  (3,220) —  (3,220) 
Restricted stock vesting—  —  —  —  —  —  
Compensation expense—restricted stock and restricted stock units—  373  —  —  —  373  
Consolidation of investment in limited partnership—  —  —  —  —  —  
Contributions from non-controlling interests—  —  —  —  —  —  
Distributions to non-controlling interests—  —  —  —  (39) (39) 
Purchase of non-controlling interest—  —  —  —  —  —  
Shares issued through equity offering program, net—  —  —  —  —  —  
Shares repurchased—  (46) —  —  —  (46) 
Net income—  —  —  (4,317) 44  (4,273) 
Other comprehensive income—  —  (13) —  (2) (15) 
Comprehensive income—  —  —  —  —  (4,288) 
Balances, June 30, 2019$152  $224,063  $(11) $(35,049) $320  $189,475  
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
For the Three Months September 30, 2019
(Dollars in thousands, except share data)
Shares of Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)(Accumulated Deficit)Non Controlling InterestsTotal
As Previously Reported
Balances, June 30, 2019$152  $217,671  $143  (35,049) $93,868  $276,785  
Distributions - Common Stock - $0.20 per share—  —  —  (3,554) —  (3,554) 
Restricted stock vesting—  —  —  —  —  —  
Compensation expense—restricted stock and restricted stock units—  372  —  —  —  372  
Consolidation of investment in limited partnership—  —  —  —  —  —  
Contributions from non-controlling interests—  —  —  —  1,237  1,237  
Distributions to non-controlling interests—  —  —  —  (3,510) (3,510) 
Purchase of non-controlling interest—  —  —  —  —  —  
Shares issued through equity offering program, net—  774  —  —  —  774  
Shares repurchased - 3,590 shares—  —  —  —  —  —  
Net income—  —  —  3,272  73  3,345  
Other comprehensive income—  —  (218) —  (104) (322) 
Comprehensive income—  —  —  —  —  3,023  
Balances, September 30, 2019$152  $218,817  $(75) $(35,331) $91,564  $275,127  
Restatement Impact
Balances, June 30, 2019$—  $6,392  $(154) $—  $(93,548) $(87,310) 
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—  —  —  —  (1,237) (1,237) 
Distributions to non-controlling interests—  —  —  —  2,376  2,376  
Purchase of non-controlling interest—  —  —  —  —  —  
Shares issued through equity offering program, net—  —  —  —  —  —  
Shares repurchased—  —  —  —  —  —  
Net income—  —  —  —  726  726  
Other comprehensive income—  —  215  —  104  319  
Comprehensive income—  —  —  —  —  1,045  
Restatement Impact Balances, September 30, 2019 $—  $6,392  $61  $—  $(91,579) $(85,126) 
Shares of Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)(Accumulated Deficit)Non Controlling InterestsTotal
As Restated
Balances, June 30, 2019152  224,063  (11) (35,049) 320  189,475  
Distributions - Common Stock - $0.20 per share—  —  —  (3,554) —  (3,554) 
Restricted stock vesting—  —  —  —  —  —  
Compensation expense—restricted stock and restricted stock units—  372  —  —  —  372  
Consolidation of investment in limited partnership—  —  —  —  —  —  
Contributions from non-controlling interests—  —  —  —  —  —  
Distributions to non-controlling interests—  —  —  —  (1,134) (1,134) 
Purchase of non-controlling interest—  —  —  —  —  —  
Shares issued through equity offering program, net—  774  —  —  —  774  
Shares repurchased—  —  —  —  —  —  
Net income—  —  —  3,272  799  4,071  
Other comprehensive income—  —  (3) —  —  (3) 
Comprehensive income—  —  —  —  —  4,068  
Balances, September 30, 2019$152  $225,209  $(14) $(35,331) $(15) $190,001  
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Unaudited
Three Months Ended March 31, 2018
As Previously ReportedRestatement ImpactAs Restated
Cash flows from operating activities:
Net income$49,908  (24,654) 25,254  
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation9,240  (8,166) 1,074  
Amortization of deferred financing fees378  (319) 59  
Amortization of restricted stock298  —  298  
Equity in earnings (loss) of unconsolidated joint ventures63  (316) (253) 
Equity in earnings on sale of real estate of unconsolidated joint ventures—  (26,402) (26,402) 
Gain on sale of real estate(51,981) 51,544  (437) 
Gain on insurance recovery(3,227) 3,227  —  
Loss on extinguishment of debt593  (593) —  
Distributions from equity in earnings of unconsolidated joint ventures—  15,180  15,180  
Increases and decreases from changes in other assets and liabilities:
Decrease in deposits and escrows3,536  2,017  5,553  
(Increase) decrease in accounts payable and accrued liabilities(3,499) 3,558  59  
Decrease (increase) in other assets6,300  (6,400) (100) 
Other—  —  —  
Net cash provided by operating activities11,609  8,676  20,285  
Cash flows from investing activities:
Collections from real estate loans150  —  150  
Additions to real estate properties(88,991) 88,991  —  
Net costs capitalized to real estate owned(3,637) 3,562  (75) 
Purchase of non-controlling interest(250) —  (250) 
Consolidation of investment in joint venture1,279  (1,279) —  
Proceeds from the sale of real estate owned146,901  (146,464) 437  
Distributions from unconsolidated joint ventures207  27,741  27,948  
Contributions to unconsolidated joint ventures(12,370) (20,440) (32,810) 
Net cash (used in) provided by investing activities43,289  (47,889) (4,600) 
Cash flows from financing activities:
Proceeds from mortgages payable54,475  (54,475) —  
Mortgage payoffs(75,437) 75,437  —  
Mortgage principal payments(1,197) 664  (533) 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Unaudited
Three Months Ended March 31, 2018
As Previously ReportedRestatement ImpactAs Restated
Increase in deferred financing costs(437) 437  —  
Dividends paid(2,856) —  (2,856) 
Contributions from non-controlling interests18,088  (18,088) —  
Distributions to non-controlling interests(32,020) 32,018  (2) 
Proceeds from the sale of common stock1,401  —  1,401  
Net cash provided by (used in) financing activities(37,983) 35,993  (1,990) 
Net increase in cash, cash equivalents and restricted cash16,915  (3,220) 13,695  
Cash, cash equivalents and restricted cash at beginning of year21,761  (7,938) 13,823  
Cash, cash equivalents and restricted cash at end of year$38,676  (11,158) $27,518  
Supplemental disclosures of cash flow information:
Cash paid during the year for interest expense$8,254  $(6,902) $1,352  
Cash paid during the year for income and excise taxes$14  $—  $14  
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Unaudited
Six Months Ended June 30, 2018
As Previously ReportedRestatement ImpactAs Restated
Cash flows from operating activities:
Net income$43,937  (23,334) $20,603  
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation19,440  (17,290) 2,150  
Amortization of deferred financing fees766  (652) 114  
Amortization of restricted stock658  —  658  
Equity in earnings (loss) of unconsolidated joint ventures190  2,123  2,313  
Equity in earnings on sale of real estate of unconsolidated joint ventures—  (26,402) (26,402) 
Gain on sale of real estate(51,981) 51,544  (437) 
Gain on insurance recovery(3,227) 3,227  —  
Loss on extinguishment of debt593  (593) —  
Distributions from equity in earnings of unconsolidated joint ventures—  15,180  15,180  
Increases and decreases from changes in other assets and liabilities:
Decrease in deposits and escrows3,926  1,066  4,992  
(Increase) decrease in accounts payable and accrued liabilities2,007  (1,640) 367  
Decrease (increase) in other assets5,138  (5,350) (212) 
Net cash provided by operating activities21,447  (2,121) 19,326  
Cash flows from investing activities:
Collections from real estate loans300  —  300  
Additions to real estate properties(140,433) 140,433  —  
Net costs capitalized to real estate owned(10,019) 9,854  (165) 
Investment in joint venture(12,370) 12,370  
Purchase of non-controlling interest(250) —  (250) 
Consolidation of investment in joint venture1,279  (1,279) —  
Proceeds from the sale of real estate owned146,901  (146,464) 437  
Distributions from unconsolidated joint ventures381  30,950  31,331  
Contributions to unconsolidated joint ventures—  (47,010) (47,010) 
Net cash (used in) provided by investing activities(14,211) (1,146) (15,357) 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Unaudited
Six Months Ended June 30, 2018
As Previously ReportedRestatement ImpactAs Restated
Cash flows from financing activities:
Proceeds from mortgages payable82,524  (82,524) —  
Mortgage payoffs(75,436) 75,436  —  
Mortgage principal payments(2,424) 1,373  (1,051) 
Increase in deferred financing costs(943) 943  —  
Dividends paid(5,788) —  (5,788) 
Contributions from non-controlling interests28,018  (28,018) —  
Distributions to non-controlling interests(34,183) 34,170  (13) 
Proceeds from the sale of common stock11,926  —  11,926  
Net cash provided by (used in) financing activities3,694  1,380  5,074  
Net increase in cash, cash equivalents and restricted cash10,930  (1,887) 9,043  
Cash, cash equivalents and restricted cash at beginning of year21,761  (7,938) 13,823  
Cash, cash equivalents and restricted cash at end of year$32,691  (9,825) $22,866  
Supplemental disclosures of cash flow information:
Cash paid during the year for interest expense$15,859  $(13,153) $2,706  
Cash paid during the year for income and excise taxes$114  $—  $114  
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Unaudited
Nine Months September 30, 2018
As Previously ReportedRestatement ImpactAs Restated
Cash flows from operating activities:
Net income$39,799  (22,273) $17,526  
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation29,856  (26,337) 3,519  
Amortization of deferred financing fees1,068  (884) 184  
Amortization of restricted stock673  —  673  
Equity in earnings (loss) of unconsolidated joint ventures364  3,576  3,940  
Equity in earnings on sale of real estate of unconsolidated joint ventures—  (26,402) (26,402) 
Gain on sale of real estate(52,405) 51,544  (861) 
Gain on insurance recovery(4,499) 4,499  —  
Loss on extinguishment of debt593  (593) —  
Distributions from equity in earnings of unconsolidated joint ventures—  15,180  15,180  
Increases and decreases from changes in other assets and liabilities:
Decrease in deposits and escrows2,732  1,520  4,252  
(Increase) decrease in accounts payable and accrued liabilities6,823  (6,502) 321  
Decrease (increase) in other assets5,219  (5,650) (431) 
Other—  (4) (4) 
Net cash provided by operating activities30,223  (12,326) 17,897  
Cash flows from investing activities:
Collections from real estate loans450  —  450  
Additions to real estate properties(151,030) 151,030  —  
Net costs capitalized to real estate owned(15,159) 14,881  (278) 
Investment in joint venture(12,370) 12,370  
Purchase of partner interests—  (4,667) (4,667) 
Purchase of non-controlling interest(5,172) 4,922  (250) 
Consolidation of investment in joint venture1,279  (1,279) —  
Proceeds from the sale of real estate owned147,325  (146,464) 861  
Distributions from unconsolidated joint ventures673  33,682  34,355  
Contributions to unconsolidated joint ventures—  (47,010) (47,010) 
Net cash (used in) provided by investing activities(34,004) 17,465  (16,539) 
Cash flows from financing activities:
Proceeds from mortgages payable92,502  (92,502) —  
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Unaudited
Nine Months September 30, 2018
As Previously ReportedRestatement ImpactAs Restated
Mortgage payoffs(75,436) 75,436  —  
Mortgage principal payments(3,802) 2,136  (1,666) 
Increase in deferred financing costs(940) 940  —  
Dividends paid(8,939) —  (8,939) 
Contributions from non-controlling interests28,018  (28,018) —  
Distributions to non-controlling interests(35,707) 35,632  (75) 
Proceeds from the sale of common stock20,411  —  20,411  
Repurchase of shares of common stock(41) —  (41) 
Net cash provided by (used in) financing activities16,066  (6,376) 9,690  
Net increase in cash, cash equivalents and restricted cash12,285  (1,237) 11,048  
Cash, cash equivalents and restricted cash at beginning of year21,761  (7,938) 13,823  
Cash, cash equivalents and restricted cash at end of year$34,046  (9,175) $24,871  
Supplemental disclosures of cash flow information:
Cash paid during the year for interest expense$25,284  $(20,974) $4,310  
Cash paid during the year for income and excise taxes$216  $—  $216  
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Unaudited
Three Months Ended March 31, 2019
As Previously ReportedRestatement ImpactAs Restated
Cash flows from operating activities:
Net loss$(5,083) $870  $(4,213) 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation9,617  (8,070) 1,547  
Amortization of deferred financing fees379  (306) 73  
Amortization of restricted stock365  —  365  
Equity in loss of unconsolidated joint ventures223  1,845  2,068  
Increases and decreases from changes in other assets and liabilities:
Decrease (increase) in deposits and escrows7,062  (6,372) 690  
(Decrease) increase in accounts payable and accrued liabilities(2,314) 4,018  1,704  
Increase in other assets(1,757) (161) (1,918) 
Other—  —  —  
Net cash provided by operating activities8,492  (8,176) 316  
Cash flows from investing activities:
Collections from real estate loans150  —  150  
Additions to real estate properties(6,903) 6,903  —  
Net costs capitalized to real estate owned(2,177) 1,787  (390) 
Investment in joint venture(11,231) 11,231  —  
Consolidation of investment in joint venture1,458  (1,458) —  
Distributions from unconsolidated joint ventures484  3,617  4,101  
Contributions to unconsolidated joint ventures—  (12,287) (12,287) 
Net cash (used in) provided by investing activities(18,219) 9,793  (8,426) 
Cash flows from financing activities:
Proceeds from mortgages payable13,880  (13,880) —  
Mortgage payoffs(9,200) 9,200  —  
Mortgage principal payments(1,304) 529  (775) 
Increase in deferred financing costs(120) 120  —  
Dividends paid(3,181) —  (3,181) 
Contributions from non-controlling interests264  (264) —  
Distributions to non-controlling interests(2,345) 2,299  (46) 
(Increase) decrease in deferred costs - credit line/mortgage—  —  —  
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Unaudited
Three Months Ended March 31, 2019
As Previously ReportedRestatement ImpactAs Restated
Net cash provided by (used in) financing activities(2,006) (1,996) (4,002) 
Net increase in cash, cash equivalents and restricted cash(11,733) (379) (12,112) 
Cash, cash equivalents and restricted cash at beginning of year40,608  (8,889) 31,719  
Cash, cash equivalents and restricted cash at end of year$28,875  (9,268) $19,607  
Supplemental disclosures of cash flow information:
Cash paid during the year for interest expense$8,769  $(6,906) $1,863  
Cash paid during the year for income and excise taxes$10  $—  $10  
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Unaudited
Six Months Ended June 30, 2019
As Previously ReportedRestatement ImpactAs Restated
Cash flows from operating activities:
Net loss$(10,333) 1,847  $(8,486) 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation19,964  (16,989) 2,975  
Amortization of deferred financing fees937  (780) 157  
Amortization of restricted stock738  —  738  
Equity in loss of unconsolidated joint ventures384  3,902  4,286  
Gain on insurance recovery(517) 517  —  
Increases and decreases from changes in other assets and liabilities:
Decrease (increase) in deposits and escrows4,861  (4,556) 305  
(Decrease) increase in accounts payable and accrued liabilities1,604  3,168  4,772  
Increase in other assets(2,358) (351) (2,709) 
Net cash provided by operating activities15,280  (13,242) 2,038  
Cash flows from investing activities:
Collections from real estate loans300  —  300  
Additions to real estate properties(56,840) 56,840  —  
Net costs capitalized to real estate owned(4,755) 3,894  (861) 
Investment in joint venture(11,231) 11,231  —  
Consolidation of investment in joint venture1,458  (1,458) —  
Distributions from unconsolidated joint ventures898  7,625  8,523  
Contributions to unconsolidated joint ventures—  (24,348) (24,348) 
Net cash (used in) provided by investing activities(70,170) 53,784  (16,386) 
Cash flows from financing activities:
Proceeds from mortgages payable82,325  (82,325) —  
Increase in other borrowed funds—  —  —  
Mortgage payoffs(38,200) 38,200  —  
Mortgage principal payments(2,721) 1,193  (1,528) 
Proceeds from credit facility9,000  —  9,000  
Increase in deferred financing costs(1,098) 1,015  (83) 
Dividends paid(6,361) —  (6,361) 
Contributions from non-controlling interests3,291  (3,291) —  
Distributions to non-controlling interests(4,610) 4,524  (86) 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Unaudited
Six Months Ended June 30, 2019
As Previously ReportedRestatement ImpactAs Restated
Repurchase of shares of common stock(46) —  (46) 
Net cash provided by (used in) financing activities41,580  (40,684) 896  
Net increase in cash, cash equivalents and restricted cash(13,310) (142) (13,452) 
Cash, cash equivalents and restricted cash at beginning of year40,608  (8,889) 31,719  
Cash, cash equivalents and restricted cash at end of year$27,298  (9,031) $18,267  
Supplemental disclosures of cash flow information:
Cash paid during the year for interest expense$18,218  $(14,429) $3,789  
Cash paid during the year for income and excise taxes$44  $—  $44  
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Unaudited
Nine Months September 30, 2019
As Previously ReportedRestatement ImpactAs Restated
Cash flows from operating activities:
Net loss$(6,988) 2,573  (4,415) 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation29,914  (25,566) 4,348  
Amortization of deferred financing fees1,345  (1,117) 228  
Amortization of restricted stock1,110  —  1,110  
Equity in loss of unconsolidated joint ventures643  6,033  6,676  
Gain on sale of real estate(9,938) —  (9,938) 
Gain on insurance recovery(517) 517  —  
Loss on extinguishment of debt1,766  (379) 1,387  
Increases and decreases from changes in other assets and liabilities:
Decrease (increase) in deposits and escrows2,048  (1,626) 422  
(Decrease) increase in accounts payable and accrued liabilities5,107  727  5,834  
Increase in other assets(1,967) (621) (2,588) 
Other—  —  —  
Net cash provided by operating activities22,523  (19,459) 3,064  
Cash flows from investing activities:
Collections from real estate loans450  —  450  
Additions to real estate properties(78,196) 78,196  —  
Net costs capitalized to real estate owned(7,313) 6,144  (1,169) 
Investment in joint venture(11,231) 11,231  —  
Consolidation of investment in joint venture1,458  (1,458) —  
Proceeds from the sale of real estate owned32,807  (6) 32,801  
Distributions from unconsolidated joint ventures1,096  10,938  12,034  
Contributions to unconsolidated joint ventures—  (29,069) (29,069) 
Net cash (used in) provided by investing activities(60,929) 75,976  15,047  
Cash flows from financing activities:
Proceeds from mortgages payable128,193  (128,193) —  
Mortgage payoffs(86,214) 65,579  (20,635) 
Mortgage principal payments(4,051) 1,862  (2,189) 
Proceeds from credit facility13,500  —  13,500  
Repayment of credit facility(9,900) —  (9,900) 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Unaudited
Nine Months September 30, 2019
As Previously ReportedRestatement ImpactAs Restated
Increase in deferred financing costs(1,742) 1,659  (83) 
Dividends paid(9,871) —  (9,871) 
Contributions from non-controlling interests4,528  (4,528) —  
Distributions to non-controlling interests(8,118) 6,898  (1,220) 
Proceeds from the sale of common stock774  —  774  
Repurchase of shares of common stock(46) —  (46) 
Net cash provided by (used in) financing activities27,053  (56,723) (29,670) 
Net increase in cash, cash equivalents and restricted cash(11,353) (206) (11,559) 
Cash, cash equivalents and restricted cash at beginning of year40,608  (8,889) 31,719  
Cash, cash equivalents and restricted cash at end of year$29,255  (9,095) 20,160  
Supplemental disclosures of cash flow information:
Cash paid during the year for interest expense$26,991  $(21,375) $5,616  
Cash paid during the year for income and excise taxes$44  $—  $44