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Equity
9 Months Ended
Sep. 30, 2019
Equity [Abstract]  
Equity

11.

Equity

Stockholders’ Equity:

Distribution Reinvestment Plan — In July 2018, in light of the Company’s decision to proceed with the exploration of Possible Strategic Alternatives, the Company suspended the Reinvestment Plan and the Redemption Plan.  As such, there were no such proceeds received for the quarter and nine months ended September 30, 2019.  As a result of the suspension of the Reinvestment Plan in July 2018, the Company did not receive any proceeds through its Reinvestment Plan subsequent to June 2018.  For the nine months ended September 30, 2018, the Company received proceeds through its Reinvestment Plan of approximately $22.0 million.  

Distributions — During the quarter and nine months ended September 30, 2019, the Company declared cash distributions of approximately $8.9 million and $386.0 million, respectively, which included a special cash distribution funded in May 2019 with proceeds from the sale of real estate and all of which were paid in cash to stockholders.  During the quarter and nine months ended September 30, 2018, the Company declared cash distributions of approximately $20.2 million and $60.8 million, respectively, of which approximately $20.2 million and $38.8 million, respectively, were paid in cash to stockholders.  As a result of the suspension of the Reinvestment Plan in July 2018, none of the cash distributions were reinvested pursuant to the Reinvestment Plan subsequent to June 2018.  For the nine months ended September 30, 2018, the Company received proceeds of approximately $32.0 million through the Reinvestment Plan.  No amounts distributed to stockholders during the quarter and nine months ended September 30, 2019 and 2018 were required to be or have been treated as a return of capital for purposes of calculating the stockholders’ return on their invested capital as described in the advisory agreement.

Redemptions — In July 2018, in light of the Company’s decision to proceed with the exploration of Possible Strategic Alternatives, the Company suspended the Reinvestment Plan and the Redemption Plan.  No requests for redemptions have been accepted subsequent to suspension of the Redemption Plan.  As such, there were no requests for the redemption of common stock during the quarter and nine months ended September 30, 2019.  During the quarter and nine months ended September 30, 2018, the Company received requests for the redemption of common stock of approximately $4.8 million and $44.8 million, respectively.  For the quarter ended September 30, 2018, no requests for the redemption of common stock were approved.   For the nine months ended September 30, 2018, $28.3 million of the requests were approved for redemption at an average price of $10.14 per share.  

During the quarter and nine months ended September 30, 2018, as a result of the Redemption Plan being suspended, approximately $16.4 million in unsatisfied redemption requests were placed in the redemption queue and will remain there until such time, if at all, that the Company’s board of directors reinstates the Redemption Plan.  Unless the Redemption Plan is reinstated by the Company’s board of directors, the Company will not as a general matter, accept or otherwise process any additional redemption requests received after July 11, 2018.  There can be no guarantee that the Redemption Plan will be reinstated by the Company’s board of directors.


11.

Equity (continued)

Other comprehensive income (loss)— The following table reflects the effect of derivative financial instruments held by the Company, or its equity method investment, and included in the condensed consolidated statements of comprehensive income (loss) for the quarter and nine months ended September 30, 2019 and 2018 (in thousands):

 

Derivative financial

instruments

 

Gain (loss) recognized in

other comprehensive loss

on derivative financial

instruments

 

Location of gain (loss)

reclassified into

earnings

 

Gain (loss) reclassified

from accumulated other

comprehensive loss

into earnings

 

 

Quarter Ended

 

 

 

Quarter Ended

 

 

September 30,

 

 

 

September 30,

 

 

2019

 

2018

 

 

 

2019

 

2018

Interest rate swaps

 

$

 

$

(205)

 

Interest expense and loan cost amortization

 

$

 

$

979

Interest rate caps

 

 

32

 

 

(40)

 

Interest expense and loan cost amortization

 

 

(25)

 

 

(581)

Reclassification of interest rate

   swaps upon derecognition

 

 

 

 

14

 

Interest expense and loan cost amortization

 

 

 

 

(14)

Interest rate cap held by

   unconsolidated joint venture

 

 

(1)

 

 

 

Interest expense and loan cost amortization

 

 

1

 

 

Total

 

$

31

 

$

(231)

 

 

 

$

(24)

 

$

384

 

Derivative financial

instruments

 

Gain (loss) recognized in

other comprehensive loss

on derivative financial

instruments

 

Location of gain (loss)

reclassified into

earnings

 

Gain (loss) reclassified

from accumulated other

comprehensive loss

into earnings

 

 

Nine Months Ended

 

 

 

Nine Months Ended

 

 

September 30,

 

 

 

September 30,

 

 

2019

 

2018

 

 

 

2019

 

2018

Interest rate swaps

 

$

(336)

 

$

2,102

 

Interest expense and loan cost amortization

 

$

813

 

$

1,299

Interest rate caps

 

 

(668)

 

 

1,176

 

Interest expense and loan cost amortization

 

 

(162)

 

 

(1,500)

Reclassification of interest rate

   swaps upon derecognition

 

 

(509)

 

 

267

 

Interest expense and loan cost amortization

 

 

509

 

 

(267)

Reclassification of interest rate

   caps upon derecognition

 

 

265

 

 

 

Interest expense and loan cost amortization

 

 

(265)

 

 

Interest rate cap held by

   unconsolidated joint venture

 

 

11

 

 

 

Interest expense and loan cost amortization

 

 

(11)

 

 

Total

 

$

(1,237)

 

$

3,545

 

 

 

$

884

 

$

(468)