FORM |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
, | ||||||||||||||
, | ||||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated Filer | ☐ | |||||||||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | |||||||||
Emerging Growth Company |
Page | |||||||||||
June 30, 2024 | December 31, 2023 | |||||||||||||
(Unaudited) | ||||||||||||||
ASSETS | ||||||||||||||
Real estate investments: | ||||||||||||||
Income producing property | $ | $ | ||||||||||||
Held for development | ||||||||||||||
Construction in progress | ||||||||||||||
Accumulated depreciation | ( | ( | ||||||||||||
Net real estate investments | ||||||||||||||
Cash and cash equivalents | ||||||||||||||
Restricted cash | ||||||||||||||
Accounts receivable, net | ||||||||||||||
Notes receivable, net | ||||||||||||||
Construction receivables, including retentions, net | ||||||||||||||
Construction contract costs and estimated earnings in excess of billings | ||||||||||||||
Equity method investments | ||||||||||||||
Operating lease right-of-use assets | ||||||||||||||
Finance lease right-of-use assets | ||||||||||||||
Acquired lease intangible assets | ||||||||||||||
Other assets | ||||||||||||||
Total Assets | $ | $ | ||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Indebtedness, net | $ | $ | ||||||||||||
Accounts payable and accrued liabilities | ||||||||||||||
Construction payables, including retentions | ||||||||||||||
Billings in excess of construction contract costs and estimated earnings | ||||||||||||||
Operating lease liabilities | ||||||||||||||
Finance lease liabilities | ||||||||||||||
Other liabilities | ||||||||||||||
Total Liabilities | ||||||||||||||
Stockholders’ equity: | ||||||||||||||
Preferred stock, $ December 31, 2023 | ||||||||||||||
Common stock, $ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Distributions in excess of earnings | ( | ( | ||||||||||||
Accumulated other comprehensive income | ||||||||||||||
Total stockholders’ equity | ||||||||||||||
Noncontrolling interests in investment entities | ||||||||||||||
Noncontrolling interests in Operating Partnership | ||||||||||||||
Total Equity | ||||||||||||||
Total Liabilities and Equity | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||
Rental revenues | $ | $ | $ | $ | ||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||
Total revenues | ||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||
Rental expenses | ||||||||||||||||||||||||||
Real estate taxes | ||||||||||||||||||||||||||
General contracting and real estate services expenses | ||||||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||
Amortization of right-of-use assets - finance leases | ||||||||||||||||||||||||||
General and administrative expenses | ||||||||||||||||||||||||||
Acquisition, development, and other pursuit costs | ||||||||||||||||||||||||||
Impairment charges | ||||||||||||||||||||||||||
Total expenses | ||||||||||||||||||||||||||
Gain on real estate dispositions, net | ||||||||||||||||||||||||||
Operating income | ||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ||||||||||||||||||||||
Change in fair value of derivatives and other | ||||||||||||||||||||||||||
Unrealized credit loss release (provision) | ( | ( | ||||||||||||||||||||||||
Other income, net | ||||||||||||||||||||||||||
Income before taxes | ||||||||||||||||||||||||||
Income tax benefit (provision) | ( | ( | ||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||
Net income attributable to noncontrolling interests: | ||||||||||||||||||||||||||
Investment entities | ( | ( | ( | ( | ||||||||||||||||||||||
Operating Partnership | ( | ( | ( | ( | ||||||||||||||||||||||
Net income attributable to Armada Hoffler Properties, Inc. | ||||||||||||||||||||||||||
Preferred stock dividends | ( | ( | ( | ( | ||||||||||||||||||||||
Net income attributable to common stockholders | $ | $ | $ | $ | ||||||||||||||||||||||
Net income attributable to common stockholders per share (basic and diluted) | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted-average common shares outstanding (basic and diluted) | ||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Unrealized cash flow hedge gains | ||||||||||||||||||||||||||
Realized cash flow hedge gains reclassified to net income | ( | ( | ( | ( | ||||||||||||||||||||||
Comprehensive income | ||||||||||||||||||||||||||
Comprehensive (income) loss attributable to noncontrolling interests: | ||||||||||||||||||||||||||
Investment entities | ( | ( | ( | ( | ||||||||||||||||||||||
Operating Partnership | ( | ( | ( | |||||||||||||||||||||||
Comprehensive income attributable to Armada Hoffler Properties, Inc. | $ | $ | $ | $ |
Preferred stock | Common stock | Additional paid-in capital | Distributions in excess of earnings | Accumulated other comprehensive income | Total stockholders' equity | Noncontrolling interests in investment entities | Noncontrolling interests in Operating Partnership | Total equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2023 | $ | $ | $ | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized cash flow hedge gains | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized cash flow hedge gains reclassified to net income | — | — | — | — | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Net proceeds from issuance of common stock | — | — | ( | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards, net | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of operating partnership units | — | — | ( | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions declared on common shares and units ($ | — | — | — | ( | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2024 | $ | $ | $ | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized cash flow hedge gains | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Realized cash flow hedge (gains) losses reclassified to net income | — | — | — | — | ( | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Net proceeds from issuance of common stock | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards, net | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions declared on common shares and units ($ | — | — | — | ( | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2024 | $ | $ | $ | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock | Common stock | Additional paid-in capital | Distributions in excess of earnings | Accumulated other comprehensive income | Total stockholders' equity | Noncontrolling interests in investment entities | Noncontrolling interests in Operating Partnership | Total equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized cash flow hedge (losses) gains | — | — | — | — | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Realized cash flow hedge gains reclassified to net income | — | — | — | — | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Net proceeds from issuance of common stock | — | — | ( | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards, net | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions of noncontrolling interest in real estate entity | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Distribution to joint venture partner | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions declared on common shares and units ($ | — | — | — | ( | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | $ | $ | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized cash flow hedge gains | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized cash flow hedge gains reclassified to net income | — | — | — | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards, net | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of operating partnership units for acquisitions | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of operating partnership units | — | — | ( | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions declared on common shares and units ($ | — | — | — | ( | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||
2024 | 2023 | |||||||||||||
OPERATING ACTIVITIES | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation of buildings and tenant improvements | ||||||||||||||
Amortization of leasing costs, in-place lease intangibles and below market ground rents - operating leases | ||||||||||||||
Accrued straight-line rental revenue | ( | ( | ||||||||||||
Amortization of leasing incentives and above or below-market rents | ( | ( | ||||||||||||
Amortization of right-of-use assets - finance leases | ||||||||||||||
Accrued straight-line ground rent expense | ||||||||||||||
Unrealized credit loss provision (release) | ( | |||||||||||||
Adjustment for uncollectible lease accounts | ||||||||||||||
Noncash stock compensation | ||||||||||||||
Noncash acquisition, development, and other pursuit costs | ||||||||||||||
Impairment charges | ||||||||||||||
Noncash interest expense | ||||||||||||||
Gain on real estate dispositions, net | ( | |||||||||||||
Change in fair value of derivatives and other | ( | ( | ||||||||||||
Adjustment for receipts on off-market interest rate derivatives | ( | |||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Property assets | ( | ( | ||||||||||||
Property liabilities | ( | ( | ||||||||||||
Construction assets | ( | |||||||||||||
Construction liabilities | ( | |||||||||||||
Interest receivable | ( | ( | ||||||||||||
Net cash provided by operating activities | ||||||||||||||
INVESTING ACTIVITIES | ||||||||||||||
Development of real estate investments | ( | ( | ||||||||||||
Tenant and building improvements | ( | ( | ||||||||||||
Acquisitions of real estate investments, net of cash received | ( | |||||||||||||
Dispositions of real estate investments, net of selling costs | ( | |||||||||||||
Notes receivable issuances | ( | ( | ||||||||||||
Receipts on off-market interest rate derivatives | ||||||||||||||
Leasing costs | ( | ( | ||||||||||||
Leasing incentives | ( | |||||||||||||
Contributions to equity method investments | ( | ( | ||||||||||||
Net cash used for investing activities | ( | ( | ||||||||||||
FINANCING ACTIVITIES | ||||||||||||||
Proceeds from issuance of common stock, net of issuance cost | ( | |||||||||||||
Common shares tendered for tax withholding | ( | ( | ||||||||||||
Debt issuances, credit facility, and construction loan borrowings | ||||||||||||||
Debt and credit facility repayments, including principal amortization | ( | ( | ||||||||||||
Debt issuance costs | ( | ( | ||||||||||||
Redemption of operating partnership units | ( | ( | ||||||||||||
Distributions to noncontrolling interests | ( | ( | ||||||||||||
Dividends and distributions | ( | ( | ||||||||||||
Net cash (used for) provided by financing activities | ( | |||||||||||||
Net decrease in cash, cash equivalents, and restricted cash | ( | ( | ||||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | ||||||||||||||
Cash, cash equivalents, and restricted cash, end of period (1) | $ | $ |
Six Months Ended June 30, | ||||||||||||||
2024 | 2023 | |||||||||||||
Supplemental Disclosures (noncash transactions): | ||||||||||||||
Increase in dividends and distributions payable | $ | $ | ||||||||||||
Increase (decrease) in accrued capital improvements and development costs | ( | |||||||||||||
Issuance of operating partnership units for acquisitions | ||||||||||||||
Debt assumed at fair value in conjunction with real estate purchases | ||||||||||||||
Note receivable redeemed in conjunction with real estate purchase | ||||||||||||||
Acquisitions of noncontrolling interests | ||||||||||||||
Other liability satisfied in connection with a real estate disposal | ||||||||||||||
Recognition of finance lease right-of-use assets | ||||||||||||||
Recognition of finance lease liabilities | ||||||||||||||
June 30, 2024 | June 30, 2023 | |||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Restricted cash (a) | ||||||||||||||
Cash, cash equivalents, and restricted cash | $ | $ |
Property | Location | Ownership Interest | |||||||||||||||
Retail | |||||||||||||||||
Town Center of Virginia Beach | |||||||||||||||||
249 Central Park Retail* | Virginia Beach, Virginia | % | |||||||||||||||
4525 Main Street Retail* (1) | Virginia Beach, Virginia | % | |||||||||||||||
4621 Columbus Retail* (2) | Virginia Beach, Virginia | % | |||||||||||||||
Columbus Village* | Virginia Beach, Virginia | % | |||||||||||||||
Commerce Street Retail* | Virginia Beach, Virginia | % | |||||||||||||||
Fountain Plaza Retail* | Virginia Beach, Virginia | % | |||||||||||||||
Pembroke Square* | Virginia Beach, Virginia | % | |||||||||||||||
Premier Retail* | Virginia Beach, Virginia | % | |||||||||||||||
South Retail* | Virginia Beach, Virginia | % | |||||||||||||||
Studio 56 Retail* | Virginia Beach, Virginia | % | |||||||||||||||
The Cosmopolitan Retail* (3) | Virginia Beach, Virginia | % | |||||||||||||||
Two Columbus Retail* (1) | Virginia Beach, Virginia | % | |||||||||||||||
West Retail* (1) | Virginia Beach, Virginia | % | |||||||||||||||
Grocery Anchored | |||||||||||||||||
Broad Creek Shopping Center | Norfolk, Virginia | % | |||||||||||||||
Broadmoor Plaza | South Bend, Indiana | % | |||||||||||||||
Brooks Crossing Retail* | Newport News, Virginia | % | (4) | ||||||||||||||
Delray Beach Plaza* | Delray Beach, Florida | % | |||||||||||||||
Greenbrier Square | Chesapeake, Virginia | % | |||||||||||||||
Greentree Shopping Center | Chesapeake, Virginia | % | |||||||||||||||
Hanbury Village | Chesapeake, Virginia | % | |||||||||||||||
Lexington Square | Lexington, South Carolina | % | |||||||||||||||
Market at Mill Creek | Mount Pleasant, South Carolina | % | |||||||||||||||
North Pointe Center | Durham, North Carolina | % |
Parkway Centre | Moultrie, Georgia | % | |||||||||||||||
Parkway Marketplace | Virginia Beach, Virginia | % | |||||||||||||||
Perry Hall Marketplace | Perry Hall, Maryland | % | |||||||||||||||
Sandbridge Commons | Virginia Beach, Virginia | % | |||||||||||||||
Tyre Neck Harris Teeter | Portsmouth, Virginia | % | |||||||||||||||
Harbor Point - Baltimore Waterfront | |||||||||||||||||
Constellation Retail* (1) | Baltimore, Maryland | % | |||||||||||||||
Point Street Retail* (3) | Baltimore, Maryland | % | |||||||||||||||
Southeast Sunbelt | |||||||||||||||||
Chronicle Mill Retail* (3) | Belmont, North Carolina | % | (4) | ||||||||||||||
Nexton Square* | Summerville, South Carolina | % | |||||||||||||||
North Hampton Market | Taylors, South Carolina | % | |||||||||||||||
One City Center Retail* (1) | Durham, North Carolina | % | |||||||||||||||
Overlook Village | Asheville, North Carolina | % | |||||||||||||||
Patterson Place | Durham, North Carolina | % | |||||||||||||||
Providence Plaza Retail* | Charlotte, North Carolina | % | |||||||||||||||
South Square | Durham, North Carolina | % | |||||||||||||||
The Interlock Retail* | Atlanta, Georgia | % | |||||||||||||||
Wendover Village | Greensboro, North Carolina | % | |||||||||||||||
Mid-Atlantic | |||||||||||||||||
Dimmock Square | Colonial Heights, Virginia | % | |||||||||||||||
Harrisonburg Regal | Harrisonburg, Virginia | % | |||||||||||||||
Liberty Retail* (3) | Newport News, Virginia | % | |||||||||||||||
Marketplace at Hilltop | Virginia Beach, Virginia | % | |||||||||||||||
Red Mill Commons | Virginia Beach, Virginia | % | |||||||||||||||
Southgate Square | Colonial Heights, Virginia | % | |||||||||||||||
Southshore Shops | Chesterfield, Virginia | % | |||||||||||||||
The Edison Retail* (3) | Richmond, Virginia | % | |||||||||||||||
Office | |||||||||||||||||
Town Center of Virginia Beach | |||||||||||||||||
249 Central Park Office* (5) | Virginia Beach, Virginia | % | |||||||||||||||
4525 Main Street* | Virginia Beach, Virginia | % | |||||||||||||||
4605 Columbus Office* (5) | Virginia Beach, Virginia | % | |||||||||||||||
Armada Hoffler Tower* | Virginia Beach, Virginia | % | |||||||||||||||
One Columbus* | Virginia Beach, Virginia | % | |||||||||||||||
Two Columbus Office* | Virginia Beach, Virginia | % | |||||||||||||||
Harbor Point - Baltimore Waterfront | |||||||||||||||||
Constellation Office* | Baltimore, Maryland | % | |||||||||||||||
Thames Street Wharf* | Baltimore, Maryland | % | |||||||||||||||
Wills Wharf* | Baltimore, Maryland | % | |||||||||||||||
Southeast Sunbelt | |||||||||||||||||
Chronicle Mill Office* (3) | Belmont, North Carolina | % | (4) | ||||||||||||||
One City Center Office* | Durham, North Carolina | % | |||||||||||||||
Providence Plaza Office* (5) | Charlotte, North Carolina | % | |||||||||||||||
The Interlock Office* | Atlanta, Georgia | % | |||||||||||||||
Mid-Atlantic |
Brooks Crossing Office* (5) | Newport News, Virginia | % | |||||||||||||||
Multifamily | |||||||||||||||||
Town Center of Virginia Beach | |||||||||||||||||
Encore Apartments* | Virginia Beach, Virginia | % | |||||||||||||||
Premier Apartments* | Virginia Beach, Virginia | % | |||||||||||||||
The Cosmopolitan* | Virginia Beach, Virginia | % | |||||||||||||||
Harbor Point - Baltimore Waterfront | |||||||||||||||||
1305 Dock Street* | Baltimore, Maryland | % | |||||||||||||||
1405 Point* | Baltimore, Maryland | % | |||||||||||||||
Southeast Sunbelt | |||||||||||||||||
Chronicle Mill* | Belmont, North Carolina | % | (4) | ||||||||||||||
Greenside Apartments | Charlotte, North Carolina | % | |||||||||||||||
The Everly* | Gainesville, Georgia | % | |||||||||||||||
Mid-Atlantic | |||||||||||||||||
The Edison* | Richmond, Virginia | % | |||||||||||||||
Liberty Apartments* | Newport News, Virginia | % | |||||||||||||||
Smith's Landing | Blacksburg, Virginia | % |
Development, Not Stabilized | Segment | Location | AHH Ownership | ||||||||||||||||||||
Southern Post Retail* | Retail | Roswell, Georgia | |||||||||||||||||||||
Southern Post Office* | Office | Roswell, Georgia | |||||||||||||||||||||
Chandler Residences* | Multifamily | Roswell, Georgia |
Redevelopment | Segment | Location | AHH Ownership | |||||||||||||||||
Columbus Village II* | Retail | Virginia Beach, Virginia | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Retail real estate | ||||||||||||||||||||||||||
Rental revenues | $ | $ | $ | $ | ||||||||||||||||||||||
Rental expenses | ||||||||||||||||||||||||||
Real estate taxes | ||||||||||||||||||||||||||
Segment net operating income | ||||||||||||||||||||||||||
Office real estate | ||||||||||||||||||||||||||
Rental revenues | ||||||||||||||||||||||||||
Rental expenses | ||||||||||||||||||||||||||
Real estate taxes | ||||||||||||||||||||||||||
Segment net operating income | ||||||||||||||||||||||||||
Multifamily real estate | ||||||||||||||||||||||||||
Rental revenues | ||||||||||||||||||||||||||
Rental expenses | ||||||||||||||||||||||||||
Real estate taxes | ||||||||||||||||||||||||||
Segment net operating income | ||||||||||||||||||||||||||
General contracting and real estate services | ||||||||||||||||||||||||||
General contracting and real estate services revenues | ||||||||||||||||||||||||||
General contracting and real estate services expenses | ||||||||||||||||||||||||||
Segment gross profit | ||||||||||||||||||||||||||
Real estate financing | ||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||
Interest expense(a) | ||||||||||||||||||||||||||
Segment gross profit | ||||||||||||||||||||||||||
Net operating income | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Net operating income | $ | $ | $ | $ | ||||||||||||||||||||||
Interest income(a) | ||||||||||||||||||||||||||
Depreciation and amortization | ( | ( | ( | ( | ||||||||||||||||||||||
Amortization of right-of-use assets - finance leases | ( | ( | ( | ( | ||||||||||||||||||||||
General and administrative expenses | ( | ( | ( | ( | ||||||||||||||||||||||
Acquisition, development, and other pursuit costs | ( | ( | ( | ( | ||||||||||||||||||||||
Impairment charges | ( | ( | ( | |||||||||||||||||||||||
Gain on real estate dispositions, net | ||||||||||||||||||||||||||
Interest expense(b) | ( | ( | ( | ( | ||||||||||||||||||||||
Change in fair value of derivatives and other | ||||||||||||||||||||||||||
Unrealized credit loss release (provision) | ( | ( | ||||||||||||||||||||||||
Other income, net | ||||||||||||||||||||||||||
Income tax benefit (provision) | ( | ( | ||||||||||||||||||||||||
Net income | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Base rent and tenant charges | $ | $ | $ | $ | ||||||||||||||||||||||
Accrued straight-line rental adjustment | ||||||||||||||||||||||||||
Lease incentive amortization | ( | ( | ( | ( | ||||||||||||||||||||||
(Above) below market lease amortization, net | ||||||||||||||||||||||||||
Total rental revenue | $ | $ | $ | $ |
Outstanding loan amount | Interest compounding | |||||||||||||||||||||||||||||||||||||||||||
June 30, 2024 | December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||
Real Estate Financing Project | Principal | Accrued interest and fees | Total loan amount(a) | Total loan amount(a) | Maximum principal commitment | Interest rate | ||||||||||||||||||||||||||||||||||||||
Solis City Park II | $ | $ | $ | $ | $ | % | Annually | |||||||||||||||||||||||||||||||||||||
Solis Gainesville II | % | (b) | Annually | |||||||||||||||||||||||||||||||||||||||||
Solis Kennesaw | % | (b) | Annually | |||||||||||||||||||||||||||||||||||||||||
Solis Peachtree Corners | % | (b) | Annually | |||||||||||||||||||||||||||||||||||||||||
The Allure at Edinburgh | % | (c) | None | |||||||||||||||||||||||||||||||||||||||||
Total mezzanine & preferred equity | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
Other notes receivable | ||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses(d) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Total notes receivable | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
Real Estate Financing Project | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||
Solis City Park II | $ | (a) | $ | (a) | $ | (a) | $ | (a) | |||||||||||||||||||||
Solis Gainesville II | (a)(b) | (a)(b) | (a)(b) | (a)(b) | |||||||||||||||||||||||||
Solis Kennesaw | (a)(b) | (a) | (a)(b) | (a) | |||||||||||||||||||||||||
Solis Peachtree Corners | (a)(b) | (a)(b) | |||||||||||||||||||||||||||
The Allure at Edinburgh | |||||||||||||||||||||||||||||
The Interlock(c) | (a) | (a) | (a) | (a) | |||||||||||||||||||||||||
Total mezzanine & preferred equity | |||||||||||||||||||||||||||||
Other interest income | |||||||||||||||||||||||||||||
Total interest income | $ | $ | $ | $ |
Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||
Funded | Unfunded | Total | Funded | Unfunded | Total | |||||||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Unrealized credit loss provision (release) | ( | ( | ||||||||||||||||||||||||||||||||||||
Release due to redemption | ( | ( | ||||||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ |
Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |||||||||||||||||||||||||
Construction contract costs and estimated earnings in excess of billings | Billings in excess of construction contract costs and estimated earnings | Construction contract costs and estimated earnings in excess of billings | Billings in excess of construction contract costs and estimated earnings | |||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | ||||||||||||||||||||||
Revenue recognized that was included in the balance at the beginning of the period | — | ( | — | ( | ||||||||||||||||||||||
Increases due to new billings, excluding amounts recognized as revenue during the period | — | — | ||||||||||||||||||||||||
Transferred to receivables | ( | — | ( | — | ||||||||||||||||||||||
Construction contract costs and estimated earnings not billed during the period | — | — | ||||||||||||||||||||||||
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion | ( | ( | ||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ |
June 30, 2024 | December 31, 2023 | ||||||||||
Costs incurred on uncompleted construction contracts | $ | $ | |||||||||
Estimated earnings | |||||||||||
Billings | ( | ( | |||||||||
Net position | $ | ( | $ | ( | |||||||
Construction contract costs and estimated earnings in excess of billings | $ | $ | |||||||||
Billings in excess of construction contract costs and estimated earnings | ( | ( | |||||||||
Net position | $ | ( | $ | ( |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Beginning backlog | $ | $ | $ | $ | ||||||||||||||||||||||
New contracts/change orders | ||||||||||||||||||||||||||
Work performed | ( | ( | ( | ( | ||||||||||||||||||||||
Ending backlog | $ | $ | $ | $ |
Related Debt | Notional Amount | Index | Swap Fixed Rate | Debt Effective Rate | Effective Date | Expiration Date | |||||||||||||||||||||||||||||
Market at Mill Creek loan | $ | (a) | 1-month SOFR | % | % | 12/13/2022 | 8/1/2025 | ||||||||||||||||||||||||||||
Harbor Point Parcel 3 senior construction loan | (b) | 1-month SOFR | % | % | 10/2/2023 | 10/1/2025 | |||||||||||||||||||||||||||||
Floating rate pool of loans | (c) | 1-month SOFR | % | % | 10/1/2023 | 10/1/2025 | |||||||||||||||||||||||||||||
Harbor Point Parcel 4 senior construction loan | (d) | 1-month SOFR | % | % | 11/1/2023 | 11/1/2025 | |||||||||||||||||||||||||||||
Floating rate pool of loans | (e) | 1-month SOFR | % | % | 12/1/2023 | 12/1/2025 | |||||||||||||||||||||||||||||
Revolving credit facility and TD unsecured term loan | (f) | Daily SOFR | % | % | 5/19/2023 | 5/19/2026 | |||||||||||||||||||||||||||||
Thames Street Wharf loan | (g) | Daily SOFR | % | % | 9/30/2021 | 9/30/2026 | |||||||||||||||||||||||||||||
M&T unsecured term loan | (g) | 1-month SOFR | % | % | 12/6/2022 | 12/6/2027 | |||||||||||||||||||||||||||||
Liberty Retail & Apartments loan | (a) | 1-month SOFR | % | % | 12/13/2022 | 1/21/2028 | |||||||||||||||||||||||||||||
Senior unsecured term loan | (a) | 1-month SOFR | % | % | 12/13/2022 | 1/21/2028 | |||||||||||||||||||||||||||||
Total | $ |
June 30, 2024 | December 31, 2023 | |||||||||||||||||||||||||||||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | |||||||||||||||||||||||||||||||||||
Asset | Liability | Asset | Liability | |||||||||||||||||||||||||||||||||||
Derivatives not designated as accounting hedges | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Interest rate caps | ||||||||||||||||||||||||||||||||||||||
Total derivatives not designated as accounting hedges | ||||||||||||||||||||||||||||||||||||||
Derivatives designated as accounting hedges | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | ||||||||||||||||||||||||||||||||||||||
Interest rate caps | ||||||||||||||||||||||||||||||||||||||
Total derivatives | $ | $ | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Interest rate swaps | $ | ( | $ | $ | $ | |||||||||||||||||||||
Interest rate caps | ( | |||||||||||||||||||||||||
Total unrealized change in fair value of interest rate derivatives | $ | ( | $ | $ | $ | |||||||||||||||||||||
Comprehensive income statement presentation: | ||||||||||||||||||||||||||
Change in fair value of derivatives and other | $ | ( | $ | $ | $ | |||||||||||||||||||||
Unrealized cash flow hedge gains | ||||||||||||||||||||||||||
Total unrealized change in fair value of interest rate derivatives | $ | ( | $ | $ | $ |
Equity type | Declaration Date | Record Date | Payment Date | Dividends per Share/Unit | Aggregate Dividends/Distributions on Stock and Units (in thousands) | |||||||||||||||||||||||||||
Common Stock/Class A Units | 12/14/2023 | 12/27/2023 | 01/04/2024 | $ | $ | |||||||||||||||||||||||||||
Common Stock/Class A Units | 02/20/2024 | 03/27/2024 | 04/04/2024 | |||||||||||||||||||||||||||||
Common Stock/Class A Units | 06/13/2024 | 06/26/2024 | 07/05/2024 | |||||||||||||||||||||||||||||
Series A Preferred Stock | 12/14/2023 | 01/02/2024 | 01/12/2024 | |||||||||||||||||||||||||||||
Series A Preferred Stock | 02/20/2024 | 04/01/2024 | 04/15/2024 | |||||||||||||||||||||||||||||
Series A Preferred Stock | 06/13/2024 | 07/01/2024 | 07/15/2024 | |||||||||||||||||||||||||||||
June 30, 2024 | December 31, 2023 | |||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||
Indebtedness, net(a) | $ | $ | $ | $ | ||||||||||||||||||||||
Notes receivable, net | ||||||||||||||||||||||||||
Interest rate swap and cap assets |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||||||
Rental revenues | $ | 26,094 | $ | 25,288 | $ | 806 | $ | 51,745 | $ | 48,247 | $ | 3,498 | ||||||||||||||||||||||||||
Property expenses | 6,814 | 6,413 | 401 | 13,440 | 12,325 | 1,115 | ||||||||||||||||||||||||||||||||
Segment NOI | $ | 19,280 | $ | 18,875 | $ | 405 | $ | 38,305 | $ | 35,922 | $ | 2,383 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||||||
Rental revenues | $ | 22,874 | $ | 23,256 | $ | (382) | $ | 45,974 | $ | 45,934 | $ | 40 | ||||||||||||||||||||||||||
Property expenses | 5,826 | 5,593 | 233 | 11,539 | 11,050 | 489 | ||||||||||||||||||||||||||||||||
Same Store NOI | $ | 17,048 | $ | 17,663 | $ | (615) | $ | 34,435 | $ | 34,884 | $ | (449) | ||||||||||||||||||||||||||
Non-Same Store NOI | 2,232 | 1,212 | 1,020 | 3,870 | 1,038 | 2,832 | ||||||||||||||||||||||||||||||||
Segment NOI | $ | 19,280 | $ | 18,875 | $ | 405 | $ | 38,305 | $ | 35,922 | $ | 2,383 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||||||
Rental revenues | $ | 22,870 | $ | 20,629 | $ | 2,241 | $ | 44,748 | $ | 40,286 | $ | 4,462 | ||||||||||||||||||||||||||
Property expenses | 8,091 | 7,489 | 602 | 16,429 | 14,733 | 1,696 | ||||||||||||||||||||||||||||||||
Segment NOI | $ | 14,779 | $ | 13,140 | $ | 1,639 | $ | 28,319 | $ | 25,553 | $ | 2,766 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||||||
Rental revenues | $ | 20,954 | $ | 19,487 | $ | 1,467 | $ | 40,608 | $ | 39,087 | $ | 1,521 | ||||||||||||||||||||||||||
Property expenses | 7,118 | 6,794 | 324 | 14,344 | 13,752 | 592 | ||||||||||||||||||||||||||||||||
Same Store NOI | $ | 13,836 | $ | 12,693 | $ | 1,143 | $ | 26,264 | $ | 25,335 | $ | 929 | ||||||||||||||||||||||||||
Non-Same Store NOI | 943 | 447 | 496 | 2,055 | 218 | 1,837 | ||||||||||||||||||||||||||||||||
Segment NOI | $ | 14,779 | $ | 13,140 | $ | 1,639 | $ | 28,319 | $ | 25,553 | $ | 2,766 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||||||
Rental revenues | $ | 14,301 | $ | 14,034 | $ | 267 | $ | 28,653 | $ | 27,636 | $ | 1,017 | ||||||||||||||||||||||||||
Property expenses | 6,068 | 5,405 | 663 | 11,634 | 10,621 | 1,013 | ||||||||||||||||||||||||||||||||
Segment NOI | $ | 8,233 | $ | 8,629 | $ | (396) | $ | 17,019 | $ | 17,015 | $ | 4 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||||||
Rental revenues | $ | 14,223 | $ | 14,034 | $ | 189 | $ | 26,192 | $ | 25,480 | $ | 712 | ||||||||||||||||||||||||||
Property expenses | 5,694 | 5,196 | 498 | 10,275 | 9,522 | 753 | ||||||||||||||||||||||||||||||||
Same Store NOI | $ | 8,529 | $ | 8,838 | $ | (309) | $ | 15,917 | $ | 15,958 | $ | (41) | ||||||||||||||||||||||||||
Non-Same Store NOI | (296) | (209) | (87) | 1,102 | 1,057 | 45 | ||||||||||||||||||||||||||||||||
Segment NOI | $ | 8,233 | $ | 8,629 | $ | (396) | $ | 17,019 | $ | 17,015 | $ | 4 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||||||
General contracting and real estate services revenues | $ | 116,839 | $ | 102,574 | $ | 14,265 | $ | 243,814 | $ | 186,812 | $ | 57,002 | ||||||||||||||||||||||||||
General contracting and real estate services expenses | 112,500 | 99,071 | 13,429 | 235,398 | 180,241 | 55,157 | ||||||||||||||||||||||||||||||||
Segment gross profit | $ | 4,339 | $ | 3,503 | $ | 836 | $ | 8,416 | $ | 6,571 | $ | 1,845 | ||||||||||||||||||||||||||
Operating margin (1) | 3.7 | % | 3.4 | % | 0.3 | % | 3.5 | % | 3.5 | % | — | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Beginning backlog | $ | 343,406 | $ | 651,840 | $ | 472,169 | $ | 665,564 | |||||||||||||||
New contracts/change orders | 76,585 | 43,975 | 75,181 | 114,767 | |||||||||||||||||||
Work performed | (117,141) | (103,029) | (244,500) | (187,545) | |||||||||||||||||||
Ending backlog | $ | 302,850 | $ | 592,786 | $ | 302,850 | $ | 592,786 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||||||
Interest income | $ | 3,966 | $ | 3,225 | $ | 741 | $ | 7,966 | $ | 6,761 | $ | 1,205 | ||||||||||||||||||||||||||
Interest expense | 1,767 | 809 | 958 | 3,099 | 1,906 | 1,193 | ||||||||||||||||||||||||||||||||
Segment gross profit | $ | 2,199 | $ | 2,416 | $ | (217) | $ | 4,867 | $ | 4,855 | $ | 12 | ||||||||||||||||||||||||||
Operating margin | 55.4 | % | 74.9 | % | (19.5) | % | 61.1 | % | 71.8 | % | (10.7) | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||
Rental revenues | $ | 63,265 | $ | 59,951 | $ | 3,314 | $ | 125,146 | $ | 116,169 | $ | 8,977 | ||||||||||||||||||||||||||
General contracting and real estate services revenues | 116,839 | 102,574 | 14,265 | 243,814 | 186,812 | 57,002 | ||||||||||||||||||||||||||||||||
Interest income | 4,632 | 3,414 | 1,218 | 9,258 | 7,133 | 2,125 | ||||||||||||||||||||||||||||||||
Total revenues | 184,736 | 165,939 | 18,797 | 378,218 | 310,114 | 68,104 | ||||||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||||
Rental expenses | 15,087 | 13,676 | 1,411 | 29,692 | 26,636 | 3,056 | ||||||||||||||||||||||||||||||||
Real estate taxes | 5,886 | 5,631 | 255 | 11,811 | 11,043 | 768 | ||||||||||||||||||||||||||||||||
General contracting and real estate services expenses | 112,500 | 99,071 | 13,429 | 235,398 | 180,241 | 55,157 | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 20,789 | 19,878 | 911 | 41,224 | 38,346 | 2,878 | ||||||||||||||||||||||||||||||||
Amortization of right-of-use assets - finance leases | 394 | 347 | 47 | 789 | 624 | 165 | ||||||||||||||||||||||||||||||||
General and administrative expenses | 4,503 | 4,052 | 451 | 10,377 | 9,500 | 877 | ||||||||||||||||||||||||||||||||
Acquisition, development, and other pursuit costs | 5,528 | 18 | 5,510 | 5,528 | 18 | 5,510 | ||||||||||||||||||||||||||||||||
Impairment charges | 1,494 | — | 1,494 | 1,494 | 102 | 1,392 | ||||||||||||||||||||||||||||||||
Total expenses | 166,181 | 142,673 | 23,508 | 336,313 | 266,510 | 69,803 | ||||||||||||||||||||||||||||||||
Gain on real estate dispositions, net | — | 511 | (511) | — | 511 | (511) | ||||||||||||||||||||||||||||||||
Operating income | 18,555 | 23,777 | (5,222) | 41,905 | 44,115 | (2,210) | ||||||||||||||||||||||||||||||||
Interest expense | (21,227) | (13,629) | (7,598) | (39,202) | (25,931) | (13,271) | ||||||||||||||||||||||||||||||||
Change in fair value of derivatives and other | 4,398 | 5,005 | (607) | 17,286 | 2,558 | 14,728 | ||||||||||||||||||||||||||||||||
Unrealized credit loss release (provision) | 228 | (100) | 328 | 145 | (177) | 322 | ||||||||||||||||||||||||||||||||
Other income, net | 79 | 168 | (89) | 158 | 261 | (103) | ||||||||||||||||||||||||||||||||
Income before taxes | 2,033 | 15,221 | (13,188) | 20,292 | 20,826 | (534) | ||||||||||||||||||||||||||||||||
Income tax benefit (provision) | 1,246 | (336) | 1,582 | 712 | (524) | 1,236 | ||||||||||||||||||||||||||||||||
Net income | 3,279 | 14,885 | (11,606) | 21,004 | 20,302 | 702 | ||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests in investment entities | (17) | (269) | 252 | (51) | (423) | 372 | ||||||||||||||||||||||||||||||||
Preferred stock dividends | (2,887) | (2,887) | — | (5,774) | (5,774) | — | ||||||||||||||||||||||||||||||||
Net income attributable to common stockholders and OP Unitholders | $ | 375 | $ | 11,729 | $ | (11,354) | $ | 15,179 | $ | 14,105 | $ | 1,074 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||||||
Retail | $ | 26,094 | $ | 25,288 | $ | 806 | $ | 51,745 | $ | 48,247 | $ | 3,498 | ||||||||||||||||||||||||||
Office | 22,870 | 20,629 | 2,241 | 44,748 | 40,286 | 4,462 | ||||||||||||||||||||||||||||||||
Multifamily | 14,301 | 14,034 | 267 | 28,653 | 27,636 | 1,017 | ||||||||||||||||||||||||||||||||
$ | 63,265 | $ | 59,951 | $ | 3,314 | $ | 125,146 | $ | 116,169 | $ | 8,977 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||||||
Retail | $ | 4,394 | $ | 4,073 | $ | 321 | $ | 8,605 | $ | 7,717 | $ | 888 | ||||||||||||||||||||||||||
Office | 5,956 | 5,332 | 624 | 12,079 | 10,491 | 1,588 | ||||||||||||||||||||||||||||||||
Multifamily | 4,737 | 4,271 | 466 | 9,008 | 8,428 | 580 | ||||||||||||||||||||||||||||||||
$ | 15,087 | $ | 13,676 | $ | 1,411 | $ | 29,692 | $ | 26,636 | $ | 3,056 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||||||
Retail | $ | 2,420 | $ | 2,340 | $ | 80 | $ | 4,835 | $ | 4,608 | $ | 227 | ||||||||||||||||||||||||||
Office | 2,135 | 2,157 | (22) | 4,350 | 4,242 | 108 | ||||||||||||||||||||||||||||||||
Multifamily | 1,331 | 1,134 | 197 | 2,626 | 2,193 | 433 | ||||||||||||||||||||||||||||||||
$ | 5,886 | $ | 5,631 | $ | 255 | $ | 11,811 | $ | 11,043 | $ | 768 |
Amount Outstanding | Interest Rate (a) | Effective Rate for Variable-Rate Debt | Maturity Date (b) | Balance at Maturity | |||||||||||||||||||||||||||||||
Secured Debt | |||||||||||||||||||||||||||||||||||
Premier | $ | 23,763 | SOFR+ | 1.55 | % | 7.00 | % | October 31, 2024 | $ | 23,648 | |||||||||||||||||||||||||
Chronicle Mill | 35,069 | SOFR+ | 3.00 | % | 8.34 | % | April 26, 2025 | 34,700 | |||||||||||||||||||||||||||
Red Mill South | 4,679 | 3.57 | % | 3.57 | % | May 1, 2025 | 4,383 | ||||||||||||||||||||||||||||
Market at Mill Creek | 11,033 | SOFR+ | 1.55 | % | 5.09 | % | (c) | July 12, 2025 | 10,505 | ||||||||||||||||||||||||||
The Everly | 30,000 | SOFR+ | 1.50 | % | 6.84 | % | December 20, 2025 | 30,000 | |||||||||||||||||||||||||||
Encore Apartments & 4525 Main Street | 52,846 | 2.93 | % | 2.93 | % | February 10, 2026 | 50,726 | ||||||||||||||||||||||||||||
Southern Post | 52,886 | SOFR+ | 2.25 | % | 5.59 | % | August 25, 2026 | 52,886 | |||||||||||||||||||||||||||
Thames Street Wharf | 67,178 | SOFR+ | 1.30 | % | 2.33 | % | (c) | September 30, 2026 | 60,839 | ||||||||||||||||||||||||||
Constellation Energy Building | 175,000 | SOFR+ | 1.50 | % | 6.95 | % | (c) | November 1, 2026 | 175,000 | ||||||||||||||||||||||||||
Southgate Square | 24,900 | SOFR+ | 1.90 | % | 7.34 | % | December 21, 2026 | 22,811 | |||||||||||||||||||||||||||
Nexton Square | 21,274 | SOFR+ | 1.95 | % | 7.29 | % | June 30, 2027 | 19,487 | |||||||||||||||||||||||||||
Liberty | 20,416 | SOFR+ | 1.50 | % | 4.93 | % | September 27, 2027 | 19,230 | |||||||||||||||||||||||||||
Greenbrier Square | 19,378 | 3.74 | % | 3.74 | % | October 10, 2027 | 18,049 | ||||||||||||||||||||||||||||
Lexington Square | 13,448 | 4.50 | % | 4.50 | % | September 1, 2028 | 12,044 | ||||||||||||||||||||||||||||
Red Mill North | 3,903 | 4.73 | % | 4.73 | % | December 31, 2028 | 3,295 | ||||||||||||||||||||||||||||
Greenside Apartments | 30,717 | 3.17 | % | 3.17 | % | December 15, 2029 | 26,095 | ||||||||||||||||||||||||||||
Smith's Landing | 14,086 | 4.05 | % | 4.05 | % | June 1, 2035 | 384 | ||||||||||||||||||||||||||||
The Edison | 14,979 | 5.30 | % | 5.30 | % | December 1, 2044 | 100 | ||||||||||||||||||||||||||||
The Cosmopolitan | 39,918 | 3.35 | % | 3.35 | % | July 1, 2051 | 187 | ||||||||||||||||||||||||||||
Total Secured Debt | $ | 655,473 | $ | 564,369 | |||||||||||||||||||||||||||||||
Unsecured Debt | |||||||||||||||||||||||||||||||||||
TD Unsecured Term Loan | $ | 95,000 | SOFR+ | 1.35%-1.90% | 4.85 | % | (c) | May 19, 2025 | $ | 95,000 | |||||||||||||||||||||||||
Senior Unsecured Revolving Credit Facility | 182,000 | SOFR+ | 1.30%-1.85% | 6.94 | % | January 22, 2027 | 182,000 | ||||||||||||||||||||||||||||
Senior Unsecured Revolving Credit Facility (Fixed) | 5,000 | SOFR+ | 1.30%-1.85% | 4.80 | % | (c) | January 22, 2027 | 5,000 | |||||||||||||||||||||||||||
M&T Unsecured Term Loan | 35,000 | SOFR+ | 1.25%-1.80% | 6.89 | % | March 8, 2027 | 35,000 | ||||||||||||||||||||||||||||
M&T Unsecured Term Loan (Fixed) | 100,000 | SOFR+ | 1.25%-1.80% | 5.05 | % | (c) | March 8, 2027 | 100,000 | |||||||||||||||||||||||||||
Senior Unsecured Term Loan | 282,053 | SOFR+ | 1.25%-1.80% | 6.89 | % | January 21, 2028 | 282,053 | ||||||||||||||||||||||||||||
Senior Unsecured Term Loan (Fixed) | 67,947 | SOFR+ | 1.25%-1.80% | 4.98 | % | (c) | January 21, 2028 | 67,947 | |||||||||||||||||||||||||||
Total Unsecured Debt | 767,000 | 767,000 | |||||||||||||||||||||||||||||||||
Total Principal Balances | $ | 1,422,473 | $ | 1,331,369 | |||||||||||||||||||||||||||||||
Other notes payable(d) | 6,122 | ||||||||||||||||||||||||||||||||||
Unamortized GAAP Adjustments | (9,366) | ||||||||||||||||||||||||||||||||||
Indebtedness, Net | $ | 1,419,229 |
Year(1)(2)(3) | Amount Due | Percentage of Total | |||||||||||||||
2024 (excluding the six months ended June 30, 2024) | $ | 29,223 | 2 | % | |||||||||||||
2025 | 185,409 | 13 | % | ||||||||||||||
2026 | 370,413 | 26 | % | ||||||||||||||
2027 | 383,560 | 27 | % | ||||||||||||||
2028 | 369,322 | 26 | % | ||||||||||||||
Thereafter | 84,546 | 6 | % | ||||||||||||||
Total | $ | 1,422,473 | 100 | % |
Related Debt | Notional Amount | Index | Swap Fixed Rate | Debt Effective Rate | Effective Date | Expiration Date | ||||||||||||||||||||||||||||||||
Market at Mill Creek loan | $ | 11,053 | 1-month SOFR | (a) | 3.43 | % | 5.09 | % | 12/13/2022 | 8/1/2025 | ||||||||||||||||||||||||||||
Harbor Point Parcel 3 senior construction loan | 90,000 | 1-month SOFR | (b) | 2.75 | % | 4.82 | % | 10/2/2023 | 10/1/2025 | |||||||||||||||||||||||||||||
Floating rate pool of loans | 330,000 | 1-month SOFR | (c) | 2.75 | % | 4.38 | % | 10/1/2023 | 10/1/2025 | |||||||||||||||||||||||||||||
Harbor Point Parcel 4 senior construction loan | 100,000 | 1-month SOFR | (d) | 2.75 | % | 5.12 | % | 11/01/2023 | 11/01/2025 | |||||||||||||||||||||||||||||
Floating rate pool of loans | 300,000 | 1-month SOFR | (e) | 2.75 | % | 4.38 | % | 12/01/2023 | 12/01/2025 | |||||||||||||||||||||||||||||
Revolving credit facility and TD unsecured term loan | 100,000 | Daily SOFR | (f) | 3.20 | % | 4.84 | % | 05/19/2023 | 5/19/2026 | |||||||||||||||||||||||||||||
Thames Street Wharf loan | 67,178 | Daily SOFR | (g) | 0.93 | % | 2.33 | % | 09/30/2021 | 9/30/2026 | |||||||||||||||||||||||||||||
M&T unsecured term loan | 100,000 | 1-month SOFR | (g) | 3.50 | % | 5.05 | % | 12/06/2022 | 12/06/2027 | |||||||||||||||||||||||||||||
Liberty Retail & Apartments loan | 21,000 | 1-month SOFR | (a) | 3.43 | % | 4.93 | % | 12/13/2022 | 1/21/2028 | |||||||||||||||||||||||||||||
Senior unsecured term loan | 67,947 | 1-month SOFR | (a) | 3.43 | % | 4.98 | % | 12/13/2022 | 1/21/2028 | |||||||||||||||||||||||||||||
Total | $ | 1,187,178 |
Six Months Ended June 30, | ||||||||||||||||||||
2024 | 2023 | Change | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Operating activities | $ | 63,880 | $ | 40,461 | $ | 23,419 | ||||||||||||||
Investing activities | (53,182) | (103,240) | 50,058 | |||||||||||||||||
Financing activities | (19,167) | 47,011 | (66,178) | |||||||||||||||||
Net increase (decrease) | $ | (8,469) | $ | (15,768) | $ | 7,299 | ||||||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | $ | 30,166 | $ | 51,865 | ||||||||||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 21,697 | $ | 36,097 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
(in thousands, except per share and unit amounts) | ||||||||||||||||||||||||||
Net income attributable to common stockholders and OP Unitholders | $ | 375 | $ | 11,729 | $ | 15,179 | $ | 14,105 | ||||||||||||||||||
Depreciation and amortization, net(1) | 20,570 | 19,655 | 40,785 | 37,900 | ||||||||||||||||||||||
Gain on operating real estate dispositions, net(2) | — | — | — | — | ||||||||||||||||||||||
Impairment of real estate assets | 1,494 | — | 1,494 | — | ||||||||||||||||||||||
FFO attributable to common stockholders and OP Unitholders | 22,439 | 31,384 | 57,458 | 52,005 | ||||||||||||||||||||||
Acquisition, development, and other pursuit costs | 5,528 | 18 | 5,528 | 18 | ||||||||||||||||||||||
Accelerated amortization of intangible assets and liabilities | — | (722) | — | (620) | ||||||||||||||||||||||
Unrealized credit loss (release) provision | (228) | 100 | (145) | 177 | ||||||||||||||||||||||
Amortization of right-of-use assets - finance leases | 394 | 347 | 789 | 624 | ||||||||||||||||||||||
Decrease (increase) in fair value of derivatives not designated as cash flow hedges | 1,950 | (4,297) | (4,560) | (490) | ||||||||||||||||||||||
Amortization of interest rate derivatives on designated cash flow hedges | 121 | 1,471 | 381 | 3,085 | ||||||||||||||||||||||
Severance related costs | — | — | 167 | — | ||||||||||||||||||||||
Normalized FFO available to common stockholders and OP Unitholders | $ | 30,204 | $ | 28,301 | $ | 59,618 | $ | 54,799 | ||||||||||||||||||
Net income attributable to common stockholders and OP Unitholders per diluted share and unit | $ | 0.00 | $ | 0.13 | $ | 0.17 | $ | 0.16 | ||||||||||||||||||
FFO attributable to common stockholders and OP Unitholders per diluted share and unit | $ | 0.25 | $ | 0.35 | $ | 0.65 | $ | 0.59 | ||||||||||||||||||
Normalized FFO attributable to common stockholders and OP Unitholders per diluted share and unit | $ | 0.34 | $ | 0.32 | $ | 0.67 | $ | 0.62 | ||||||||||||||||||
Weighted average common shares and units - diluted | 88,815 | 88,724 | 88,633 | 88,562 |
(1) The adjustment for depreciation and amortization for the three and six months ended June 30, 2024 excludes $0.2 million and $0.4 million, respectively, of depreciation attributable to our partners. The adjustment for depreciation and amortization for the three and six months ended June 30, 2023 excludes $0.2 million and $0.4 million, respectively, of depreciation attributable to our partners. | ||
(2) The adjustment for gain on operating real estate dispositions for each of the three and six months ended June 30, 2023 excludes $0.5 million for the gain on the disposition of a non-operating parcel at Market at Mill Creek. |
Exhibit No. | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
3.3 | ||||||||
3.4 | ||||||||
3.5 | ||||||||
3.6 | ||||||||
3.7 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
32.2** | ||||||||
101* | The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, were formatted in Inline XBRL (Extensible Business Reporting Language): (i) Condensed Consolidated Balance Sheet, (ii) Condensed Consolidated Statements of Comprehensive Income, (iii) Condensed Consolidated Statements of Equity, (iv) Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements. 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 Data File - the cover page XBRL tags are embedded within the Inline XBRL. | |||||||
* | Filed herewith | |||||||
** | Furnished herewith |
ARMADA HOFFLER PROPERTIES, INC. | |||||
Date: August 7, 2024 | /s/ Louis S. Haddad | ||||
Louis S. Haddad | |||||
Chief Executive Officer | |||||
(Principal Executive Officer) | |||||
Date: August 7, 2024 | /s/ Matthew T. Barnes-Smith | ||||
Matthew T. Barnes-Smith | |||||
Chief Financial Officer, Treasurer and Corporate Secretary | |||||
(Principal Accounting and Financial Officer) |
Date: August 7, 2024 | /s/ Louis S. Haddad | |||||||
Louis S. Haddad | ||||||||
Chief Executive Officer |
Date: August 7, 2024 | /s/ Matthew T. Barnes-Smith | |||||||
Matthew T. Barnes-Smith | ||||||||
Chief Financial Officer, Treasurer and Corporate Secretary |
Date: August 7, 2024 | /s/ Louis S. Haddad | |||||||
Louis S. Haddad | ||||||||
Chief Executive Officer |
Date: August 7, 2024 | /s/ Matthew T. Barnes-Smith | |||||||
Matthew T. Barnes-Smith | ||||||||
Chief Financial Officer, Treasurer and Corporate Secretary |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2024 |
Dec. 31, 2023 |
|
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 67,388,397 | 66,793,294 |
Common stock, shares outstanding (in shares) | 67,388,397 | 66,793,294 |
Redeemable convertible preferred stock | ||
Preferred stock, shares authorized (in shares) | 9,980,000 | 9,980,000 |
Preferred Stock dividend rate percentage | 6.75% | 6.75% |
Preferred stock, shares issued (in shares) | 6,843,418 | 6,843,418 |
Preferred stock, shares outstanding (in shares) | 6,843,418 | 6,843,418 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Revenues | ||||
Rental revenues | $ 63,265 | $ 59,951 | $ 125,146 | $ 116,169 |
Revenue, Product and Service [Extensible List] | Real Estate [Member] | Real Estate [Member] | ||
General contracting and real estate services revenues | $ 116,839 | $ 102,574 | 243,814 | 186,812 |
Interest income | 4,632 | 3,414 | 9,258 | 7,133 |
Total revenues | 184,736 | 165,939 | 378,218 | 310,114 |
Expenses | ||||
Rental expenses | 15,087 | 13,676 | 29,692 | 26,636 |
Real estate taxes | 5,886 | 5,631 | 11,811 | 11,043 |
General contracting and real estate services expenses | 112,500 | 99,071 | 235,398 | 180,241 |
Depreciation and amortization | 20,789 | 19,878 | 41,224 | 38,346 |
Amortization of right-of-use assets - finance leases | 394 | 347 | 789 | 624 |
General and administrative expenses | 4,503 | 4,052 | 10,377 | 9,500 |
Acquisition, development, and other pursuit costs | 5,528 | 18 | 5,528 | 18 |
Impairment charges | 1,494 | 0 | 1,494 | 102 |
Total expenses | 166,181 | 142,673 | 336,313 | 266,510 |
Gain on real estate dispositions, net | 0 | 511 | 0 | 511 |
Operating income | 18,555 | 23,777 | 41,905 | 44,115 |
Interest expense | (21,227) | (13,629) | (39,202) | (25,931) |
Change in fair value of derivatives and other | 4,398 | 5,005 | 17,286 | 2,558 |
Unrealized credit loss release (provision) | 228 | (100) | 145 | (177) |
Other income, net | 79 | 168 | 158 | 261 |
Income before taxes | 2,033 | 15,221 | 20,292 | 20,826 |
Income tax benefit (provision) | 1,246 | (336) | 712 | (524) |
Net income | 3,279 | 14,885 | 21,004 | 20,302 |
Net income attributable to noncontrolling interests: | ||||
Investment entities | (17) | (269) | (51) | (423) |
Operating Partnership | (90) | (2,753) | (3,708) | (3,307) |
Net income attributable to Armada Hoffler Properties, Inc. | 3,172 | 11,863 | 17,245 | 16,572 |
Preferred stock dividends | (2,887) | (2,887) | (5,774) | (5,774) |
Net income attributable to common stockholders | $ 285 | $ 8,976 | $ 11,471 | $ 10,798 |
Net income attributable to common stockholders per share (basic) (in dollars per share) | $ 0.00 | $ 0.13 | $ 0.17 | $ 0.16 |
Net income attributable to common stockholders per share (diluted) (in dollars per share) | $ 0.00 | $ 0.13 | $ 0.17 | $ 0.16 |
Weighted-average common shares outstanding (basic) (in shares) | 67,106 | 67,901 | 66,972 | 67,844 |
Weighted-average common shares outstanding (diluted) (in shares) | 67,106 | 67,901 | 66,972 | 67,844 |
Comprehensive income: | ||||
Net income | $ 3,279 | $ 14,885 | $ 21,004 | $ 20,302 |
Unrealized cash flow hedge gains | 984 | 6,806 | 4,538 | 6,380 |
Realized cash flow hedge gains reclassified to net income | (1,398) | (5,055) | (5,040) | (7,977) |
Comprehensive income | 2,865 | 16,636 | 20,502 | 18,705 |
Comprehensive income attributable to Armada Hoffler Properties, Inc. | 2,859 | 13,222 | 16,895 | 15,391 |
Investment entities | ||||
Expenses | ||||
Net income | 17 | 269 | ||
Comprehensive income: | ||||
Net income | 17 | 269 | ||
Unrealized cash flow hedge gains | 151 | |||
Realized cash flow hedge gains reclassified to net income | (174) | |||
Comprehensive (income) loss attributable to noncontrolling interests: | (17) | (245) | (12) | (363) |
Operating Partnership | ||||
Expenses | ||||
Net income | 90 | 2,753 | ||
Comprehensive income: | ||||
Net income | 90 | 2,753 | ||
Unrealized cash flow hedge gains | 241 | 1,562 | ||
Realized cash flow hedge gains reclassified to net income | (342) | (1,146) | ||
Comprehensive (income) loss attributable to noncontrolling interests: | $ 11 | $ (3,169) | $ (3,595) | $ (2,951) |
Condensed Consolidated Statements of Equity - USD ($) $ in Thousands |
Total |
Total stockholders' equity |
Preferred stock |
Common stock |
Additional paid-in capital |
Distributions in excess of earnings |
Accumulated other comprehensive income |
Noncontrolling interests in investment entities |
Noncontrolling interests in Operating Partnership |
---|---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2022 | $ 904,014 | $ 647,450 | $ 171,085 | $ 677 | $ 587,884 | $ (126,875) | $ 14,679 | $ 24,055 | $ 232,509 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 5,417 | 4,709 | 4,709 | 154 | 554 | ||||
Unrealized cash flow hedge (losses) gains | (426) | (328) | (328) | 2 | (100) | ||||
Realized cash flow hedge gains reclassified to net income | (2,922) | (2,211) | (2,211) | (39) | (672) | ||||
Net proceeds from issuance of common stock | (149) | (149) | (149) | ||||||
Restricted stock awards, net | 979 | 979 | 2 | 977 | |||||
Acquisitions of noncontrolling interest in real estate entity | (12,834) | (12,834) | |||||||
Distributions to noncontrolling interests | (506) | (506) | |||||||
Dividends declared on preferred stock | (2,887) | (2,887) | (2,887) | ||||||
Dividends and distributions declared on common shares and units | (16,824) | (12,908) | (12,908) | (3,916) | |||||
Ending balance at Mar. 31, 2023 | 873,862 | 634,655 | 171,085 | 679 | 588,712 | (137,961) | 12,140 | 10,832 | 228,375 |
Beginning balance at Dec. 31, 2022 | 904,014 | 647,450 | 171,085 | 677 | 587,884 | (126,875) | 14,679 | 24,055 | 232,509 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 20,302 | ||||||||
Unrealized cash flow hedge (losses) gains | 6,380 | ||||||||
Realized cash flow hedge gains reclassified to net income | (7,977) | ||||||||
Ending balance at Jun. 30, 2023 | 881,662 | 632,059 | 171,085 | 679 | 589,030 | (142,233) | 13,498 | 10,651 | 238,952 |
Beginning balance at Mar. 31, 2023 | 873,862 | 634,655 | 171,085 | 679 | 588,712 | (137,961) | 12,140 | 10,832 | 228,375 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 14,885 | 11,863 | 11,863 | 269 | 2,753 | ||||
Unrealized cash flow hedge (losses) gains | 6,806 | 5,093 | 5,093 | 151 | 1,562 | ||||
Realized cash flow hedge gains reclassified to net income | (5,055) | (3,735) | 0 | (3,735) | (174) | (1,146) | |||
Restricted stock awards, net | 337 | 337 | 0 | 337 | |||||
Issuance of operating partnership units for acquisitions | 12,194 | 0 | 0 | 12,194 | |||||
Redemption of operating partnership units | (583) | (19) | (19) | (564) | |||||
Distributions to noncontrolling interests | (427) | (427) | |||||||
Dividends declared on preferred stock | (2,887) | (2,887) | (2,887) | ||||||
Dividends and distributions declared on common shares and units | (17,470) | (13,248) | (13,248) | (4,222) | |||||
Ending balance at Jun. 30, 2023 | 881,662 | 632,059 | 171,085 | 679 | 589,030 | (142,233) | 13,498 | 10,651 | 238,952 |
Beginning balance at Dec. 31, 2023 | 805,178 | 572,622 | 171,085 | 668 | 580,687 | (184,724) | 4,906 | 9,986 | 222,570 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 17,725 | 14,073 | 14,073 | 34 | 3,618 | ||||
Unrealized cash flow hedge (losses) gains | 3,554 | 2,664 | 2,664 | 29 | 861 | ||||
Realized cash flow hedge gains reclassified to net income | (3,642) | (2,700) | (2,700) | (68) | (874) | ||||
Net proceeds from issuance of common stock | (10) | (10) | (10) | ||||||
Restricted stock awards, net | 1,396 | 1,396 | 2 | 1,394 | |||||
Redemption of operating partnership units | (118) | (22) | (22) | (96) | |||||
Distributions to noncontrolling interests | (336) | (336) | |||||||
Dividends declared on preferred stock | (2,887) | (2,887) | (2,887) | ||||||
Dividends and distributions declared on common shares and units | (18,183) | (13,733) | (13,733) | (4,450) | |||||
Ending balance at Mar. 31, 2024 | 802,677 | 571,403 | 171,085 | 670 | 582,049 | (187,271) | 4,870 | 9,645 | 221,629 |
Beginning balance at Dec. 31, 2023 | 805,178 | 572,622 | 171,085 | 668 | 580,687 | (184,724) | 4,906 | 9,986 | 222,570 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 21,004 | ||||||||
Unrealized cash flow hedge (losses) gains | 4,538 | ||||||||
Realized cash flow hedge gains reclassified to net income | (5,040) | ||||||||
Ending balance at Jun. 30, 2024 | 789,406 | 562,734 | 171,085 | 674 | 587,117 | (200,699) | 4,557 | 9,511 | 217,161 |
Beginning balance at Mar. 31, 2024 | 802,677 | 571,403 | 171,085 | 670 | 582,049 | (187,271) | 4,870 | 9,645 | 221,629 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 3,279 | 3,172 | 3,172 | 17 | 90 | ||||
Unrealized cash flow hedge (losses) gains | 984 | 743 | 743 | 241 | |||||
Realized cash flow hedge gains reclassified to net income | (1,398) | (1,056) | (1,056) | (342) | |||||
Net proceeds from issuance of common stock | 4,263 | 4,263 | 4 | 4,259 | |||||
Restricted stock awards, net | 809 | 809 | 809 | ||||||
Distributions to noncontrolling interests | (151) | (151) | |||||||
Dividends declared on preferred stock | (2,887) | (2,887) | (2,887) | ||||||
Dividends and distributions declared on common shares and units | (18,170) | (13,713) | (13,713) | (4,457) | |||||
Ending balance at Jun. 30, 2024 | $ 789,406 | $ 562,734 | $ 171,085 | $ 674 | $ 587,117 | $ (200,699) | $ 4,557 | $ 9,511 | $ 217,161 |
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares |
3 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2024 |
Mar. 31, 2024 |
Jun. 30, 2023 |
Mar. 31, 2023 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Dividend declared (in dollars per share) | $ 0.205 | $ 0.205 | $ 0.195 | $ 0.19 |
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 |
Jun. 30, 2023 |
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OPERATING ACTIVITIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ 21,004 | $ 20,302 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of buildings and tenant improvements | 31,997 | 29,262 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of leasing costs, in-place lease intangibles and below market ground rents - operating leases | 9,227 | 9,084 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued straight-line rental revenue | (3,119) | (3,244) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of leasing incentives and above or below-market rents | (801) | (1,360) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of right-of-use assets - finance leases | 789 | 624 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued straight-line ground rent expense | 18 | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized credit loss provision (release) | (145) | 177 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment for uncollectible lease accounts | 1,235 | 1,168 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncash stock compensation | 2,936 | 2,137 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncash acquisition, development, and other pursuit costs | 5,528 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment charges | 1,494 | 102 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncash interest expense | 2,062 | 4,412 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on real estate dispositions, net | 0 | (511) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of derivatives and other | (4,560) | (490) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment for receipts on off-market interest rate derivatives | (13,006) | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property assets | (1,433) | (792) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property liabilities | (1,646) | (592) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction assets | 21,209 | (24,282) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction liabilities | (565) | 10,969 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest receivable | (8,344) | (6,545) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | 63,880 | 40,461 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTING ACTIVITIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Development of real estate investments | (19,606) | (30,959) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tenant and building improvements | (11,436) | (9,912) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions of real estate investments, net of cash received | 0 | (8,355) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dispositions of real estate investments, net of selling costs | 0 | (20) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes receivable issuances | (21,872) | (21,238) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receipts on off-market interest rate derivatives | 13,006 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leasing costs | (2,690) | (2,348) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leasing incentives | 0 | (20) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions to equity method investments | (10,584) | (30,388) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash used for investing activities | (53,182) | (103,240) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock, net of issuance cost | 4,253 | (149) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares tendered for tax withholding | (980) | (1,110) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt issuances, credit facility, and construction loan borrowings | 164,095 | 229,783 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and credit facility repayments, including principal amortization | (143,739) | (138,953) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt issuance costs | (1,001) | (1,661) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of operating partnership units | (118) | (583) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | (487) | (933) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions | (41,190) | (39,383) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash (used for) provided by financing activities | (19,167) | 47,011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net decrease in cash, cash equivalents, and restricted cash | (8,469) | (15,768) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 30,166 | 51,865 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash, end of period | [1] | 21,697 | 36,097 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Disclosures (noncash transactions): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase in dividends and distributions payable | 937 | 685 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in accrued capital improvements and development costs | 5,569 | (2,126) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of operating partnership units for acquisitions | 0 | 12,194 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt assumed at fair value in conjunction with real estate purchases | 0 | 105,584 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note receivable redeemed in conjunction with real estate purchase | 0 | 90,232 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions of noncontrolling interests | 0 | 12,834 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liability satisfied in connection with a real estate disposal | 0 | 750 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognition of finance lease right-of-use assets | 0 | 47,742 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognition of finance lease liabilities | $ 0 | $ 46,616 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
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Statement of Cash Flows [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ 20,306 | $ 27,920 | $ 34,054 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | 1,391 | [1] | 2,246 | 2,043 | [1] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash | $ 21,697 | [2] | $ 30,166 | $ 36,097 | [2] | $ 51,865 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Business of Organization |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business of Organization | Business of Organization Armada Hoffler Properties, Inc. (the "Company") is a vertically integrated, self-managed real estate investment trust ("REIT") with over four decades of experience managing, building, acquiring, and developing high-quality retail, office, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to the ownership of the Company's operating property portfolio, the Company develops and builds properties for its own account and through joint ventures between the Company and unaffiliated partners and also invests in development projects through real estate financing arrangements. The Company also provides general construction and development services to third-party clients. The Company's construction and development experience includes mid- and high-rise office buildings, retail strip malls, retail power centers, multifamily apartment communities, hotels and conference centers, single- and multi-tenant industrial, distribution, and manufacturing facilities, educational, medical, and special purpose facilities, government projects, parking garages, and mixed-use town centers. The Company is the sole general partner of Armada Hoffler, L.P. (the "Operating Partnership") and, as of June 30, 2024, owned 75.6% of the economic interest in the Operating Partnership, of which 0.1% is held as general partnership units. The operations of the Company are conducted primarily through the Operating Partnership and the wholly owned subsidiaries thereof. As of June 30, 2024, the Company's stabilized operating portfolio consisted of the following properties:
________________________________________ *Mixed-use asset. (1) Formerly reported in the office real estate segment. Refer to Note 3 for further information. (2) Formerly known as Apex Entertainment. (3) Formerly reported in the multifamily real estate segment. Refer to Note 3 for further information. (4) We are entitled to a preferred return on our investment in this property. (5) Formerly reported in the retail real estate segment. Refer to Note 3 for further information. As of June 30, 2024, the following properties were under development or redevelopment:
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Significant Accounting Policies |
6 Months Ended |
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Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The condensed consolidated financial statements include the financial position and results of operations of the Company and its subsidiaries. The Company’s subsidiaries include the Operating Partnership and the subsidiaries that are wholly owned or in which the Company has a controlling interest, including where the Company has been determined to be a primary beneficiary of a variable interest entity ("VIE") in accordance with the consolidation guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"). All significant intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for the fair presentation of the financial condition, and results of operations for the interim periods presented. The accompanying condensed consolidated financial statements were prepared in accordance with the requirements for interim financial information. Accordingly, these interim financial statements have not been audited and exclude certain disclosures required for annual financial statements. Also, the operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These interim financial statements should be read in conjunction with the audited consolidated financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed. Such estimates are based on management’s historical experience and best judgment after considering past, current, and expected events and economic conditions. Actual results could differ significantly from management’s estimates. Recent Accounting Pronouncements Recently Issued Accounting Standards Not Yet Adopted: Segment Reporting In November 2023, the FASB issued ASU 2023-07 as an update to ASC Topic 280, which will be effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024. Early adoption is permitted. ASU 2023-07 requires an entity to disclose significant segment expenses regularly provided to the chief operating decision maker, a description of "other segment items," and the title and position of the chief operating decision maker, and allows for more than one measure of a segment's profit or loss if used by the chief operating decision maker. The update also enhances interim disclosure requirements and requirements for entities with a single reportable segment. The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements. Income Taxes In December 2023, the FASB issued ASU 2023-09 as an update to ASC Topic 740, which will become effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. ASU 2023-09 enhances the disclosures surrounding income taxes, specifically in relation to the rate reconciliation table and income taxes paid. The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements. Other Accounting Policies See the Company's Annual Report on Form 10-K for the year ended December 31, 2023 for a description of other accounting principles upon which basis the accompanying consolidated financial statements were prepared.
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Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segments | Segments The Company operates its business in five reportable segments: (i) retail real estate, (ii) office real estate, (iii) multifamily real estate, (iv) general contracting and real estate services, and (v) real estate financing. Refer to Note 1 for the composition of properties within each property segment. Net operating income ("NOI") is the primary measure used by the Company’s chief operating decision-maker to assess segment performance. NOI is calculated as segment revenues less segment expenses. Segment revenues include rental revenues for the property segments, general contracting and real estate services revenues for the general contracting and real estate services segment, and interest income for the real estate financing segment. Segment expenses include rental expenses and real estate taxes for the property segments, general contracting and real estate services expenses for the general contracting and real estate services segment, and interest expense for the real estate financing segment. Segment NOI for the general contracting and real estate services and real estate financing segments is also referred to as segment gross profit as illustrated in the table below. NOI is not a measure of operating income or cash flows from operating activities as measured by GAAP and is not indicative of cash available to fund cash needs. As a result, NOI should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate NOI in the same manner. The Company considers NOI to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of the Company’s real estate, construction, and real estate financing businesses. Since the Company's Annual Report on Form 10-K for the year ended December 31, 2023, the Company retrospectively reclassified certain components of mixed-use properties between the retail, office, and multifamily real estate segments in order to align the components of those properties with their tenant composition. As a result, NOI for the three months ended June 30, 2023 increased $0.5 million and less than $0.1 million for the retail and office real estate segments, respectively, and decreased $0.5 million for the multifamily real estate segment. NOI for the six months ended June 30, 2023 increased $0.8 million and less than $0.1 million for the retail and office real estate segments, respectively, and decreased $0.9 million for the multifamily real estate segment. These reclassifications had no effect on total property NOI as previously reported. These reclassifications also had no impact on our general contracting and real estate services or real estate financing segments. The following table presents NOI for the Company's five reportable segments for the three and six months ended June 30, 2024 and 2023 (in thousands):
________________________________________ (a) Interest expense within the real estate financing segment is allocated based on the average outstanding principal of notes receivable in the real estate financing portfolio and the effective interest rates on the credit facility, the M&T term loan facility, and the TD term loan facility, each as defined in Note 9. The following table reconciles NOI to net income, the most directly comparable GAAP measure, for the three and six months ended June 30, 2024 and 2023 (in thousands):
________________________________________ (a) Excludes real estate financing segment interest income of $4.0 million and $3.2 million for the three months ended June 30, 2024 and 2023, respectively, and $8.0 million and $6.8 million for the six months ended June 30, 2024 and 2023, respectively. (b) Excludes real estate financing segment interest expense of $1.8 million and $0.8 million for the three months ended June 30, 2024 and 2023, respectively, and $3.1 million and $1.9 million for the six months ended June 30, 2024 and 2023, respectively. Rental expenses represent costs directly associated with the operation and management of the Company’s real estate properties. Rental expenses include asset management expenses, property management fees, repairs and maintenance, insurance, and utilities. General contracting and real estate services revenues for the three months ended June 30, 2024 and 2023 exclude revenues related to intercompany construction contracts of $4.3 million and $12.9 million, respectively, which are eliminated in consolidation. General contracting and real estate services revenues for the six months ended June 30, 2024 and 2023 exclude revenues related to intercompany construction contracts of $12.7 million and $26.6 million, respectively, which are eliminated in consolidation. General contracting and real estate services expenses for the three months ended June 30, 2024 and 2023 exclude expenses related to intercompany construction contracts of $4.2 million and $12.8 million, respectively, which are eliminated in consolidation. General contracting and real estate services expenses for the six months ended June 30, 2024 and 2023 exclude expenses related to intercompany construction contracts of $12.5 million and $26.3 million, respectively, which are eliminated in consolidation. Depreciation and amortization expense for the three months ended June 30, 2024 was $8.8 million, $8.3 million, and $3.6 million for the retail, office, and multifamily real estate segments, respectively. Depreciation and amortization expense for the six months ended June 30, 2024 was $17.3 million, $16.3 million, and $7.3 million for the retail, office, and multifamily real estate segments, respectively. Depreciation and amortization expense for the three months ended June 30, 2023 was $7.6 million, $7.8 million, and $4.3 million for the retail, office, and multifamily real estate segments, respectively. Depreciation and amortization expense for the six months ended June 30, 2023 was $14.5 million, $15.1 million, and $8.5 million for the retail, office, and multifamily real estate segments, respectively. General and administrative expenses represent costs not directly associated with the operation and management of the Company’s real estate properties, general contracting and real estate services, and real estate financing businesses. These costs include corporate office personnel compensation and benefits, bank fees, accounting fees, legal fees, and other corporate office expenses. Interest expense on secured property debt for the three months ended June 30, 2024 was $2.9 million, $3.6 million, and $3.8 million for the retail, office, and multifamily real estate segments, respectively. Interest expense on secured property debt for the six months ended June 30, 2024 was $5.7 million, $6.8 million, and $7.4 million for the retail, office, and multifamily real estate segments, respectively. Interest expense on secured property debt for the three months ended June 30, 2023 was $2.3 million, $2.2 million, and $2.6 million for the retail, office, and multifamily real estate segments, respectively. Interest expense on secured property debt for the six months ended June 30, 2023 was $4.6 million, $4.4 million, and $5.2 million for the retail, office, and multifamily real estate segments, respectively. As of June 30, 2024, the net carrying amount of consolidated real estate investments was $693.0 million, $638.9 million, and $445.6 million for the retail, office, and multifamily real estate segments, respectively, which excludes $41.4 million attributable to our mixed-use development projects. Assets attributable to the general contracting and real estate services segment are presented in Note 8 of these financial statements. Assets attributable to the real estate financing segment are presented in Note 7 of these financial statements.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases Lessee Disclosures As a lessee, the Company has nine ground leases on nine properties. These ground leases have maximum lease terms (including renewal options) that expire between 2074 and 2117. The exercise of lease renewal options is at the Company's sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease term. Five of these leases have been classified as operating leases and four of these leases have been classified as finance leases. The Company's lease agreements do not contain any residual value guarantees or material restrictive covenants. Lessor Disclosures As a lessor, the Company leases its properties under operating leases and recognizes base rents on a straight-line basis over the lease term. The Company also recognizes revenue from tenant recoveries, through which tenants reimburse the Company on an accrual basis for certain expenses such as utilities, janitorial services, repairs and maintenance, security and alarms, parking lot and ground maintenance, administrative services, management fees, insurance, and real estate taxes. Rental revenues are reduced by the amount of any leasing incentives amortized on a straight-line basis over the term of the applicable lease. In addition, the Company recognizes contingent rental revenue (e.g., percentage rents based on tenant sales thresholds) when the sales thresholds are met. Many tenant leases include one or more options to renew, with renewal terms that can extend the lease term from to 25 years, or more. The exercise of lease renewal options is at the tenant's sole discretion. The Company includes a renewal period in the lease term only if it appears at lease inception that the renewal is reasonably assured. Rental revenue for the three and six months ended June 30, 2024 and 2023 comprised the following (in thousands):
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Leases | Leases Lessee Disclosures As a lessee, the Company has nine ground leases on nine properties. These ground leases have maximum lease terms (including renewal options) that expire between 2074 and 2117. The exercise of lease renewal options is at the Company's sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease term. Five of these leases have been classified as operating leases and four of these leases have been classified as finance leases. The Company's lease agreements do not contain any residual value guarantees or material restrictive covenants. Lessor Disclosures As a lessor, the Company leases its properties under operating leases and recognizes base rents on a straight-line basis over the lease term. The Company also recognizes revenue from tenant recoveries, through which tenants reimburse the Company on an accrual basis for certain expenses such as utilities, janitorial services, repairs and maintenance, security and alarms, parking lot and ground maintenance, administrative services, management fees, insurance, and real estate taxes. Rental revenues are reduced by the amount of any leasing incentives amortized on a straight-line basis over the term of the applicable lease. In addition, the Company recognizes contingent rental revenue (e.g., percentage rents based on tenant sales thresholds) when the sales thresholds are met. Many tenant leases include one or more options to renew, with renewal terms that can extend the lease term from to 25 years, or more. The exercise of lease renewal options is at the tenant's sole discretion. The Company includes a renewal period in the lease term only if it appears at lease inception that the renewal is reasonably assured. Rental revenue for the three and six months ended June 30, 2024 and 2023 comprised the following (in thousands):
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Real Estate Investments |
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Jun. 30, 2024 | |
Real Estate [Abstract] | |
Real Estate Investments | Real Estate Investments The Company did not acquire or dispose of any properties during the six months ended June 30, 2024. Other Real Estate Transactions During the six months ended June 30, 2024, the Company recognized impairment of real estate of $1.5 million and wrote off development costs of $5.5 million related to undeveloped land under predevelopment, which reflects the excess of the book value of the property's assets over the estimated fair value of the property. The Company also recognized an income tax benefit of $1.6 million as a result of the recognized impairment and the development costs. On June 25, 2024, the Company entered into a non-binding letter of intent to sell the property to an unrelated third party for $4.8 million, which was used as an approximation of fair value as a level 3 input in the fair value hierarchy. The Company anticipates completing the transaction in 2025, subject to customary closing conditions. The land parcel did not meet the criteria to be classified as held-for-sale as of June 30, 2024.
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Equity Method Investment |
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Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | Equity Method Investments Harbor Point Parcel 3 The Company owns a 50% interest in Harbor Point Parcel 3, a joint venture with Beatty Development Group, for purposes of developing T. Rowe Price's new global headquarters office building in Baltimore, Maryland. The Company is a noncontrolling partner in the joint venture and will serve as the project's general contractor. During the six months ended June 30, 2024, the Company invested $1.4 million in Harbor Point Parcel 3. The Company has an estimated equity commitment of up to $47.0 million relating to this project. As of June 30, 2024 and December 31, 2023, the carrying value of the Company's investment in Harbor Point Parcel 3 was $42.2 million and $40.7 million, respectively, which excludes $2.5 million and $2.2 million, respectively, of intra-entity profits eliminated in consolidation. For the six months ended June 30, 2024 and 2023, Harbor Point Parcel 3 had no operating activity; therefore, the Company received no allocated income. Based on the terms of the operating agreement, the Company has concluded that Harbor Point Parcel 3 is a VIE and that the Company holds a variable interest. The Company has significant influence over the project due to its 50% ownership interest; however, the Company does not have the power to direct the activities of the project that most significantly impact its performance. This includes activity as the managing member of the entity, which is a power that is retained by the Company's joint venture partner. Accordingly, the Company is not the project's primary beneficiary and, therefore, does not consolidate Harbor Point Parcel 3 in its consolidated financial statements. The Company's investment in the project is recorded as an equity method investment in the consolidated balance sheets. Harbor Point Parcel 4 On April 1, 2022, the Company acquired a 78% interest in Harbor Point Parcel 4, a real estate venture with Beatty Development Group, for purposes of developing a mixed-use project ("Allied | Harbor Point"), which is planned to include multifamily units, retail space, and a parking garage. The Company holds an option to increase its ownership to 90%. The Company is a noncontrolling partner in the real estate venture and will serve as the project's general contractor. During the six months ended June 30, 2024, the Company invested $9.1 million in Harbor Point Parcel 4. The Company has an estimated equity commitment of up to $113.3 million relating to this project. As of June 30, 2024 and December 31, 2023, the carrying value of the Company's investment in Harbor Point Parcel 4 was $110.4 million and $101.3 million, respectively, which excludes $1.2 million and $0.8 million, respectively, of intra-entity profits eliminated in consolidation. For the six months ended June 30, 2024, Harbor Point Parcel 4 had no operating activity; therefore, the Company received no allocated income. Based on the terms of the operating agreement, the Company has concluded that Harbor Point Parcel 4 is a VIE and that the Company holds a variable interest. The Company has significant influence over the project due to its 78% ownership interest; however, the Company does not have the power to direct the activities of the project that most significantly impact its performance. This includes activity as the managing member of the entity, which is a power that is retained by the Company's partner. Accordingly, the Company is not the project's primary beneficiary and, therefore, does not consolidate Harbor Point Parcel 4 in its consolidated financial statements. The Company's investment in the project is recorded as an equity method investment in the consolidated balance sheets.
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Receivable and Current Expected Credit Losses | Notes Receivable and Current Expected Credit Losses Notes Receivable The Company had the following notes receivable outstanding as of June 30, 2024 and December 31, 2023 ($ in thousands):
________________________________________ (a) Outstanding loan amounts include any accrued and unpaid interest, and accrued fees, as applicable. (b) The interest rate varies over the life of the loans and the Company also earns an unused commitment fee on amounts not drawn on the loans. (c) The interest rate varies over the life of the loan. (d) The amounts as of June 30, 2024 and December 31, 2023 exclude $0.4 million and $0.7 million, respectively, of Current Expected Credit Losses (“CECL”) allowance that relates to the unfunded commitments, which were recorded as a liability under other liabilities in the consolidated balance sheets. Interest on the notes receivable is accrued and funded utilizing the interest reserves for each loan and such accrued interest is generally added to the loan receivable balances. The Company recognized interest income for the three and six months ended June 30, 2024 and 2023 as follows (in thousands):
________________________________________ (a) Includes recognition of interest income related to fee amortization. (b) Includes recognition of unused commitment fees. (c) This note receivable was redeemed on May 19, 2023 in connection with the Company’s acquisition of The Interlock. Allowance for Loan Losses The Company is exposed to credit losses primarily through its real estate financing investments. As of June 30, 2024, the Company had five real estate financing investments, which are financing development projects in various stages of completion or lease-up. Each of these projects is subject to a loan that is senior to the Company’s loan. Interest on these loans is paid in kind and is generally not expected to be paid until a sale of the project after completion of the development. The Company's management performs a quarterly analysis of the loan portfolio to determine the risk of credit loss based on the progress of development activities, including leasing activities, projected development costs, and current and projected subordinated and senior loan balances. The Company estimates future losses on its notes receivable using risk ratings that correspond to probabilities of default and loss given default. The Company's risk ratings are as follows: •Pass: loans in this category are adequately collateralized by a development project with conditions materially consistent with the Company's underwriting assumptions. •Special Mention: loans in this category show signs that the economic performance of the project may suffer as a result of slower-than-expected leasing activity or an extended development or marketing timeline. Loans in this category warrant increased monitoring by management. •Substandard: loans in this category may not be fully collected by the Company unless remediation actions are taken. Remediation actions may include obtaining additional collateral or assisting the borrower with asset management activities to prepare the project for sale. The Company will also consider placing the loan on non-accrual status if it does not believe that additional interest accruals will ultimately be collected. The Company updated the risk ratings for each of its notes receivable as of June 30, 2024 and obtained industry loan loss data relative to these risk ratings. Each of the outstanding loans as of June 30, 2024 was "Pass" rated. The Company's analysis resulted in an allowance for loan losses of approximately $2.1 million as of June 30, 2024, of which an allowance related to unfunded commitments of approximately $0.4 million as of June 30, 2024 was recorded as Other liabilities on the consolidated balance sheet. At June 30, 2024, the Company reported $124.2 million of notes receivable, net of allowances of $1.7 million. At December 31, 2023, the Company reported $94.2 million of notes receivable, net of allowances of $1.5 million. Changes in the allowance for the six months ended June 30, 2024 and 2023 were as follows (in thousands):
The Company places loans on non-accrual status when the loan balance, together with the balance of any senior loan, approximately equals the estimated realizable value of the underlying development project. As of June 30, 2024, no loans were placed on non-accrual status.
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Construction Contracts |
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Contractors [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction Contracts | Construction Contracts Construction contract costs and estimated earnings in excess of billings represent reimbursable costs and amounts earned under contracts in progress as of the balance sheet date. Such amounts become billable according to contract terms, which usually consider the passage of time, achievement of certain milestones, or completion of the project. The Company expects to bill and collect substantially all construction contract costs and estimated earnings in excess of billings as of June 30, 2024 during the next 12 to 24 months. Billings in excess of construction contract costs and estimated earnings represent billings or collections on contracts made in advance of revenue recognized. The following table summarizes the changes to the balances in the Company’s construction contract costs and estimated earnings in excess of billings account and the billings in excess of construction contract costs and estimated earnings account for the six months ended June 30, 2024 and 2023 (in thousands):
The Company defers pre-contract costs when such costs are directly associated with specific anticipated contracts and their recovery is probable. Pre-contract costs of $1.5 million and $1.9 million were deferred as of June 30, 2024 and December 31, 2023, respectively. Amortization of pre-contract costs for the six months ended June 30, 2024 and 2023 was $0.2 million and $0.3 million, respectively. Construction receivables and payables include retentions, which are amounts that are generally withheld until the completion of the contract or the satisfaction of certain restrictive conditions such as fulfillment guarantees. As of June 30, 2024 and December 31, 2023, construction receivables included retentions of $32.7 million and $28.7 million, respectively. The Company expects to collect substantially all construction receivables outstanding as of June 30, 2024 during the next 12 to 24 months. As of June 30, 2024 and December 31, 2023, construction payables included retentions of $42.5 million and $38.2 million, respectively. The Company expects to pay substantially all construction payables outstanding as of June 30, 2024 during the next 12 to 24 months. The Company’s net position on uncompleted construction contracts comprised the following as of June 30, 2024 and December 31, 2023 (in thousands):
The above table reflects the net effect of projects closed as of June 30, 2024 and December 31, 2023, as applicable. The Company’s balances and changes in construction contract price allocated to unsatisfied performance obligations (backlog) as of June 30, 2024 and 2023 were as follows (in thousands):
The Company expects to complete a majority of the uncompleted contracts in place as of June 30, 2024 during the next 12 to 24 months.
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Indebtedness |
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Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness Credit Facility On August 23, 2022, the Company, as parent guarantor, and the Operating Partnership, as borrower, entered into an amended and restated credit agreement (the "Credit Agreement"), which provides for a $550.0 million credit facility comprised of a $250.0 million senior unsecured revolving credit facility (the "revolving credit facility") and a $300.0 million senior unsecured term loan facility (the "term loan facility" and, together with the revolving credit facility, the "credit facility"), with a syndicate of banks. The credit facility includes an accordion feature that allows the total commitments to be increased to $1.0 billion, subject to certain conditions, including obtaining commitments from any one or more lenders. The revolving credit facility has a scheduled maturity date of January 22, 2027, with two six-month extension options, subject to the Company's satisfaction of certain conditions, including payment of a 0.075% extension fee at each extension. The term loan facility has a scheduled maturity date of January 21, 2028. On August 29, 2023, the Company increased the capacity of the revolving credit facility by $105.0 million by exercising the accordion feature in part, bringing the revolving credit facility capacity to $355.0 million and the total credit facility capacity to $655.0 million. On June 14, 2024, the term loan facility commitment increased by $50 million to $350.0 million as a result of an existing lender increasing its outstanding commitment. The revolving credit facility bears interest at the Secured Overnight Financing Rate ("SOFR") plus a margin ranging from 1.30% to 1.85% and a credit spread adjustment of 0.10%, and the term loan facility bears interest at SOFR plus a margin ranging from 1.25% to 1.80% and a credit spread adjustment of 0.10%, in each case depending on the Company's total leverage. The Company is also obligated to pay an unused commitment fee of 15 or 25 basis points on the unused portions of the commitments under the revolving credit facility, depending on the amount of borrowings under the revolving credit facility. If the Company or the Operating Partnership attains investment grade credit ratings from both S&P Global Ratings and Moody's Investors Service, Inc., the Operating Partnership may elect to have borrowings become subject to interest rates based on such credit ratings. As of June 30, 2024 and December 31, 2023, the outstanding balance on the revolving credit facility was $187.0 million and $267.0 million, respectively. The outstanding balance on the term loan facility was $350.0 million as of June 30, 2024 and $300.0 million as of December 31, 2023. As of June 30, 2024, the effective interest rates on the revolving credit facility and the term loan facility, before giving effect to interest rate caps and swaps, were 6.94% and 6.89%, respectively. After giving effect to interest rate caps and swaps, the effective interest rates on the revolving credit facility and the term loan facility were 4.80% and 4.98%, respectively, as of June 30, 2024. The Operating Partnership may, at any time, voluntarily prepay any loan under the credit facility in whole or in part without premium or penalty. The Operating Partnership is the borrower, and its obligations under the credit facility are guaranteed by the Company and certain of its subsidiaries that are not otherwise prohibited from providing such guaranty. The Credit Agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Company's ability to borrow under the credit facility is subject to ongoing compliance with a number of financial covenants, affirmative covenants, and other restrictions. The Credit Agreement includes customary events of default, in certain cases subject to customary cure periods. The occurrence of an event of default, if not cured within the applicable cure period, would permit the lenders to, among other things, declare the unpaid principal, accrued and unpaid interest, and all other amounts payable under the credit facility to be immediately due and payable. M&T Term Loan Facility On December 6, 2022, the Company, as parent guarantor, and the Operating Partnership, as borrower, entered into a term loan agreement (the "M&T term loan agreement") with Manufacturers and Traders Trust Company, as lender and administrative agent, which provides a $100.0 million senior unsecured term loan facility (the "M&T term loan facility"), with the option to increase the total capacity to $200.0 million, subject to the Company's satisfaction of certain conditions. The proceeds from the M&T term loan facility were used to repay the loans secured by the Wills Wharf, 249 Central Park Retail, Fountain Plaza Retail, and South Retail properties. The M&T term loan facility has a scheduled maturity date of March 8, 2027, with a one-year extension option, subject to the Company's satisfaction of certain conditions, including payment of a 0.075% extension fee. The M&T term loan facility bears interest at a rate elected by the Operating Partnership based on term SOFR, Daily Simple SOFR, or the Base Rate (as defined below), and in each case plus a margin. A term SOFR or Daily Simple SOFR loan is also subject to a credit spread adjustment of 0.10%. The margin under each interest rate election depends on the Company's total leverage. The "Base Rate" is equal to the highest of: (a) the rate of interest in effect for such day as publicly announced from time to time by M&T Bank as its “prime rate” for such day, (b) the Federal Funds Rate for such day, plus 0.50%, (c) one month term SOFR for such day plus 100 basis points and (d) 1.00%. The Operating Partnership has elected for the loan to bear interest at term SOFR plus margin. If the Company or the Operating Partnership attains investment grade credit ratings from both S&P Global Ratings and Moody's Investor Service, Inc., the Operating Partnership may elect to have borrowings become subject to interest rates based on such credit ratings. On June 21, 2024, the M&T term loan facility commitment increased by $35 million to $135.0 million as a result of adding a new lender to the facility. As of June 30, 2024 and December 31, 2023, the outstanding balance on the M&T term loan facility was $135.0 million and $100.0 million, respectively. As of June 30, 2024, the effective interest rate on the M&T term loan facility, before giving effect to interest rate swaps, was 6.89%. After giving effect to interest rate swaps, the effective interest rate on the M&T term loan facility was 5.05% as of June 30, 2024. The Operating Partnership may, at any time, voluntarily prepay the M&T term loan facility in whole or in part without premium or penalty, provided certain conditions are met. The Operating Partnership is the borrower under the M&T term loan facility, and its obligations under the M&T term loan facility are guaranteed by the Company and certain of its subsidiaries that are not otherwise prohibited from providing such guaranty. The M&T term loan agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Company's ability to borrow under the M&T term loan facility is subject to ongoing compliance with a number of financial covenants, affirmative covenants, and other restrictions. The term loan agreement includes customary events of default, in certain cases subject to customary cure periods. The occurrence of an event of default, if not cured within the applicable cure period, would permit the lenders to, among other things, declare the unpaid principal, accrued and unpaid interest, and all other amounts payable under the M&T term loan facility to be immediately due and payable. TD Term Loan Facility On May 19, 2023, the Company, as parent guarantor, and the Operating Partnership, as borrower, entered into a term loan agreement (the "TD term loan agreement") with Toronto Dominion (Texas) LLC, as administrative agent, and TD Bank, N.A. as lender, which provides a $75.0 million senior unsecured term loan facility (the "TD term loan facility"), with the option to increase the total capacity to $150.0 million, subject to the Company's satisfaction of certain conditions. The TD term loan facility has a scheduled maturity date of May 19, 2025, with a one-year extension option, subject to the Company's satisfaction of certain conditions, including payment of a 0.15% extension fee. The TD term loan facility bears interest at a rate elected by the Operating Partnership based on term SOFR, Daily Simple SOFR, or the Base Rate (as defined below), and in each case plus a margin. A term SOFR or Daily Simple SOFR loan is also subject to a credit spread adjustment of 0.10%. The margin under each interest rate election depends on the Company's total leverage. The "Base Rate" is equal to the highest of: (a) the Federal Funds Rate for such day, plus 0.50% (b) the rate of interest in effect for such day as publicly announced from time to time by the administrative agent as its “prime rate” for such day, (c) one month term SOFR for such day plus 100 basis points and (d) 1.00%. The Operating Partnership has elected for the loan to bear interest at term SOFR plus margin. If the Company or the Operating Partnership attains investment grade credit ratings from both S&P Global Ratings and Moody's Investor Service, Inc., the Operating Partnership may elect to have borrowings become subject to interest rates based on such credit ratings. On June 29, 2023, the TD term loan facility commitment increased to $95.0 million as a result of the addition of a second lender to the facility. As of each of June 30, 2024 and December 31, 2023, the outstanding balance on the TD term loan facility was $95.0 million. As of June 30, 2024, the effective interest rate on the TD term loan facility, before giving effect to interest rate swaps, was 6.99%. After giving effect to interest rate swaps, the effective interest rate on the TD term loan facility was 4.85% as of June 30, 2024. The Operating Partnership may, at any time, voluntarily prepay the TD term loan facility in whole or in part without premium or penalty, provided certain conditions are met. The Operating Partnership is the borrower under the TD term loan facility, and its obligations under the TD term loan facility are guaranteed by the Company and certain of its subsidiaries that are not otherwise prohibited from providing such guaranty. The TD term loan agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Company's ability to borrow under the TD term loan facility is subject to ongoing compliance with a number of financial covenants, affirmative covenants, and other restrictions. The TD term loan agreement includes customary events of default, in certain cases subject to customary cure periods. The occurrence of an event of default, if not cured within the applicable cure period, would permit the lenders to, among other things, declare the unpaid principal, accrued and unpaid interest, and all other amounts payable under the TD term loan facility to be immediately due and payable. The Company is currently in compliance with all covenants under the Credit Agreement, the M&T term loan agreement, and the TD term loan agreement, all of which are substantially similar. Other 2024 Financing Activity The Company exercised its option to extend the maturity date on the loan secured by Chronicle Mill by one year, which will now mature on May 5, 2025. The Company paid a nominal extension fee. The Company also holds an additional one-year extension option pursuant to which it may extend the maturity date to May 5, 2026, subject to the Company's satisfaction of certain conditions. On June 10, 2024, the Company paid off the $1.76 million balance of the loan secured by the Red Mill Central shopping center and added the property to the unencumbered borrowing base. During the six months ended June 30, 2024, the Company borrowed $23.0 million under its existing construction loans to fund ongoing development and construction.
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Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments The Company enters into interest rate derivative contracts to manage exposure to interest rate risks. The Company does not use derivative financial instruments for trading or speculative purposes. Derivative financial instruments are recognized at fair value and presented within other assets and other liabilities in the condensed consolidated balance sheets. Gains and losses resulting from changes in the fair value of derivatives that are neither designated nor qualify as hedging instruments are recognized within the change in fair value of derivatives and other in the condensed consolidated statements of comprehensive income. For derivatives that qualify as cash flow hedges, the gain or loss is reported as a component of other comprehensive income (loss) and reclassified into earnings in the periods during which the hedged forecasted transaction affects earnings. As of June 30, 2024, the Company held one interest rate cap corridor. The Company purchased a SOFR interest rate cap at 1.00% and sold a SOFR interest rate cap at 3.00%, resulting in a SOFR interest rate cap corridor of 1.00% to 3.00%, effective on September 1, 2022. This corridor is designated as a cash flow hedge. The intended goal of this corridor is to provide a level of protection from the effect of rising interest rates and reduce the all-in-cost of the derivative instrument. The Company paid a premium of $1.4 million to purchase the corridor. As of June 30, 2024, the notional amount was $73.6 million, which is the maximum notional amount. The corridor is scheduled to mature on September 1, 2024. As of June 30, 2024, the Company held the following floating-to-fixed interest rate swaps ($ in thousands):
________________________________________ (a) The Company novated an existing 3.43% fixed rate swap with a $100.0 million notional and assigned (A) $11.1 million notional to the loan secured by Market at Mill Creek, effective April 17, 2024 and (B) $21.0 million to the loan secured by Liberty Retail & Apartments, effective February 1, 2024. Once the novated swap related to the Market at Mill Creek loan expires, the $67.9 million swap on the senior unsecured loan will increase back to $79.0 million. (b) This interest rate swap agreement reduces the Company's interest rate exposure on the $180.4 million senior construction loan secured by the Company's Harbor Point Parcel 3 equity method investment as described in Note 6. As such, the loan is not reflected on the Company's consolidated balance sheets. The Company also paid $3.6 million to reduce the swap fixed rate. (c) The Company paid $13.3 million to reduce the swap fixed rate. (d) This interest rate swap agreement reduces the Company's interest rate exposure on the $109.7 million senior construction loan secured by the Company's Harbor Point Parcel 4 equity method investment as described in Note 6. As such, the loan is not reflected on the Company's consolidated balance sheets. The Company also paid $3.9 million to reduce the swap fixed rate. (e) The Company paid $10.5 million to reduce the swap fixed rate. (f) Subject to cancellation by the counterparty beginning on May 1, 2025 and the first day of each month thereafter. (g) Designated as a cash flow hedge. For the interest rate swaps and caps designated as cash flow hedges, realized gains and losses are reclassified out of accumulated other comprehensive income to interest expense in the condensed consolidated statements of comprehensive income due to payments received from and paid to the counterparty. During the next 12 months, the Company anticipates recognizing approximately $4.0 million of net hedging gains as reductions to interest expense. These amounts will be reclassified from accumulated other comprehensive income into earnings to offset the variability of the hedged items during this period. The Company’s derivatives were comprised of the following as of June 30, 2024 and December 31, 2023 (in thousands):
The unrealized changes in the fair value of the Company’s derivatives during the three and six months ended June 30, 2024 and 2023 were comprised of the following (in thousands):
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Equity |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity Stockholders’ Equity On March 10, 2020, the Company commenced an at-the-market continuous equity offering program (the "ATM Program") through which the Company may, from time to time, issue and sell shares of its common stock and shares of its 6.75% Series A Cumulative Redeemable Perpetual Preferred Stock (the "Series A Preferred Stock") having an aggregate offering price of up to $300.0 million, to or through its sales agents and, with respect to shares of its common stock, may enter into separate forward sales agreements to or through the forward purchaser. During the six months ended June 30, 2024, the Company issued and sold 402,429 shares of common stock at a weighted average price of $10.97 per share under the ATM Program, receiving net proceeds, after offering costs and commissions, of $4.3 million. During the six months ended June 30, 2024, the Company did not issue any shares of Series A Preferred Stock under the ATM Program. Shares having an aggregate offering price of $196.0 million remained unsold under the ATM Program as of August 2, 2024. On January 2, 2024, in connection with the tender by a holder of 9,286 units of limited partnership interest in the Operating Partnership ("Class A Units") for redemption by the Operating Partnership, the Company elected to satisfy the redemption request with a cash payment of $0.1 million. Noncontrolling Interests As of each of June 30, 2024 and December 31, 2023, the Company held a 75.6% economic interest in the Operating Partnership. As of June 30, 2024, the Company also held a preferred interest in the Operating Partnership in the form of preferred units with a liquidation preference of $171.1 million. The Company is the primary beneficiary of the Operating Partnership as it has the power to direct the activities of the Operating Partnership and the rights to absorb 75.6% of the net income of the Operating Partnership. As the primary beneficiary, the Company consolidates the financial position and results of operations of the Operating Partnership. Noncontrolling interests in the Operating Partnership represent units of limited partnership interest in the Operating Partnership not held by the Company. As of June 30, 2024, there were 21,543,776 Class A Units and 165,523 LTIP Units in the Operating Partnership ("LTIP Units") not held by the Company. The Company's financial position and results of operations are the same as those of the Operating Partnership. Additionally, the Operating Partnership owns a majority interest in certain non-wholly owned operating and development properties. The noncontrolling interest for consolidated real estate entities was $9.5 million and $10.0 million as of June 30, 2024 and December 31, 2023, respectively, which represents the minority partners' interest in certain joint venture entities. Share Repurchase Program On June 15, 2023, the Company adopted a $50.0 million share repurchase program (the "Share Repurchase Program"). Under the Share Repurchase Program, the Company may repurchase shares of common stock and Series A Preferred Stock from time to time in the open market, in block purchases, through privately negotiated transactions, the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, or other means. The Share Repurchase Program does not obligate the Company to acquire any specific number of shares or acquire shares over any specific period of time. The Share Repurchase Program may be suspended or discontinued at any time by the Company and does not have an expiration date. During the six months ended June 30, 2024, the Company did not repurchase any shares of common stock or Series A Preferred Stock. As of June 30, 2024, $37.4 million remained available for repurchases under the Share Repurchase Program. Dividends and Distributions During the six months ended June 30, 2024, the following dividends/distributions were declared or paid:
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Stock-Based Compensation |
6 Months Ended |
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Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company’s Amended and Restated 2013 Equity Incentive Plan, as amended June 14, 2023 (the "Equity Plan"), permits the grant of restricted stock awards, stock options, stock appreciation rights, LTIP Units, performance units, and other equity-based awards up to an aggregate of 3,400,000 shares of common stock. As of June 30, 2024, there were 1,162,645 shares available for issuance under the Equity Plan. During the six months ended June 30, 2024, the Company granted an aggregate of 278,465 shares of restricted stock, 125,829 LTIP Units, and 50,000 performance units to employees and non-employee directors with a weighted average grant date fair value of $10.70 per share of restricted stock, $9.64 per LTIP Unit, and $9.23 per performance unit, respectively. During the six months ended June 30, 2024, employees surrendered 91,623 shares of stock for income tax withholdings. During the six months ended June 30, 2024, 8,832 shares of restricted stock and 9,375 performance units were forfeited in accordance with service conditions of grants. Employee restricted stock awards generally vest over a period of two years: one-third immediately on the grant date and the remaining two-thirds in equal amounts on the first two anniversaries following the grant date, subject to continued service to the Company. Executive officers' restricted shares or LTIP Units generally vest over a period of three years: two-fifths immediately on the grant date and the remaining three-fifths in equal amounts on the first three anniversaries following the grant date, subject to continued service to the Company. Non-employee director restricted stock awards or LTIP Units may vest either immediately upon grant or over a period of one year, subject to continued service to the Company. Employee performance units generally vest over a period of six years: two-fifths on the last day of a three year performance period, and the remaining three-fifths in equal amounts on the first three anniversaries following the end of the three year performance period, subject to continued service to the Company and certain market conditions. Unvested restricted stock awards, LTIP Units, and performance units are entitled to receive distributions from their grant date. During the three months ended June 30, 2024 and 2023, the Company recognized $0.8 million and $0.3 million, respectively, of stock-based compensation cost. During the six months ended June 30, 2024 and 2023, the Company recognized $3.2 million and $2.4 million, respectively, of stock-based compensation cost. As of June 30, 2024, there were 309,704 unvested shares of restricted stock, 75,498 unvested LTIP Units, and 151,250 unvested performance units outstanding; the total unrecognized compensation expense related to unvested shares of restricted stock, unvested LTIP Units, and unvested performance units was $3.8 million, which the Company expects to recognize over the next 66 months.
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value measurements are based on assumptions that market participants would use in pricing an asset or a liability. The hierarchy for inputs used in measuring fair value is as follows: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 — unobservable inputs Except as disclosed below, the carrying amounts of the Company’s financial instruments approximate their fair values. Financial assets and liabilities whose fair values are measured on a recurring basis using Level 2 inputs consist of interest rate swaps and caps. The Company measures the fair values of these assets and liabilities based on prices provided by independent market participants that are based on observable inputs using market-based valuation techniques. Financial assets and liabilities whose fair values are not measured at fair value but for which the fair value is disclosed include the Company's notes receivable and indebtedness. The fair value is estimated by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity, credit characteristics, and other terms of the arrangements, which are Level 3 inputs under the fair value hierarchy. In certain cases, the inputs used to estimate the fair value may fall into different levels of the fair value hierarchy. For disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Considerable judgment is used to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. The carrying amounts and fair values of the Company’s financial instruments as of June 30, 2024 and December 31, 2023 were as follows (in thousands):
________________________________________ (a) Excludes $9.4 million and $10.4 million of deferred financing costs as of June 30, 2024 and December 31, 2023, respectively.
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Related Party Transactions |
6 Months Ended |
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Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company provides general contracting services to certain related party entities that are included in these condensed consolidated financial statements. Revenue and gross profit from construction contracts with these entities for the six months ended June 30, 2024 and 2023 were nominal. There were no outstanding construction receivables due from related parties as of June 30, 2024 and December 31, 2023. The Company provides general contracting services to the Harbor Point Parcel 3 and Harbor Point Parcel 4 ventures. See Note 6 for more information. During the three and six months ended June 30, 2024, the Company recognized gross profit of $0.2 million and $0.3 million, respectively, relating to these construction contracts. During the three and six months ended June 30, 2023, the Company recognized gross profit of $0.4 million and $0.7 million, respectively, relating to these construction contracts.
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Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings The Company is from time to time involved in various disputes, lawsuits, warranty claims, environmental, and other matters arising in the ordinary course of business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters. The Company currently is a party to various legal proceedings, none of which management expects will have a material adverse effect on the Company’s financial position, results of operations, or liquidity. Management accrues a liability for litigation if an unfavorable outcome is determined to be probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is determined to be probable and a range of loss can be reasonably estimated, management accrues the best estimate within the range; however, if no amount within the range is a better estimate than any other, the minimum amount within the range is accrued. Legal fees related to litigation are expensed as incurred. Management does not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on the Company’s financial position or results of operations; however, litigation is subject to inherent uncertainties. Under the Company’s leases, tenants are typically obligated to indemnify the Company from and against all liabilities, costs, and expenses imposed upon or asserted against it as owner of the properties due to certain matters relating to the operation of the properties by the tenant. Guarantees In connection with certain of the Company's real estate financing activities and equity method investments, the Company has made guarantees to pay portions of certain senior loans of third parties associated with the development projects. As of June 30, 2024, the Company had an outstanding guarantee liability of $0.1 million related to the $32.9 million guarantee of the senior loan secured by Harbor Point Parcel 4. Commitments The Company has a bonding line of credit for its general contracting construction business and is contingently liable under performance and payment bonds, bonds for cancellation of mechanics liens and defect bonds. Such bonds collectively totaled $8.3 million and $6.5 million as of June 30, 2024 and December 31, 2023, respectively. Unfunded Loan Commitments The Company has certain commitments related to its notes receivable investments that it may be required to fund in the future. The Company is generally obligated to fund these commitments at the request of the borrower or upon the occurrence of events outside of the Company's direct control. As of June 30, 2024, the Company had five notes receivable with a total of $23.9 million of unfunded commitments. If commitments are funded in the future, interest will be charged at rates consistent with the existing investments. As of June 30, 2024, the Company has recorded a $0.4 million CECL allowance that relates to the unfunded commitments, which was recorded as a liability in other liabilities in the consolidated balance sheet. See Note 7 for more information.
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Subsequent Events |
6 Months Ended |
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Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events through the date on which this Quarterly Report on Form 10-Q was filed, the date on which these financial statements were issued, and identified the items below for disclosure. Notes Receivable On July 10, 2024, the Company entered into a $27.0 million preferred equity investment for the development of a multifamily property located in Huntersville, North Carolina ("Solis North Creek"). The preferred equity investment has economic terms consistent with a note receivable, including a mandatory redemption feature. The Company's investment bears interest at a rate of 12.0% for the first 24 months. Beginning on July 10, 2026, the investment will bear interest at a rate of 9.0% for 12 months. On July 10, 2027, the investment will again bear interest at 12.0% through maturity. The interest compounds annually. The Company also earns an unused commitment fee of 4.5% on the unfunded portion of the investment's maximum loan commitment, which also compounds annually. The preferred equity investment is subject to a minimum interest guarantee of $8.9 million over the life of the investment. On July 1, 2024, the Company signed an amendment to the operating agreement for the entity in which the Company owns its real estate financing investment with respect to Solis Gainesville II to reduce the preference rate on the investment from 14.0% to 6.0% starting on January 1, 2025. The Company also received a call option to purchase a controlling interest in the entity that owns Gainesville II at fair market value during the period from January 1, 2025 to December 31, 2025, which option also gives the Company a right of first refusal to buy the property during the same period. On July 10, 2024, the Company's preferred equity investment in Solis City Park II was redeemed in full for total consideration of $25.8 million, including $5.2 million of interest. Interest for the month of June 2024 was waived as part of the note redemption. Indebtedness In July 2024, the Company had net borrowings of $27.0 million on the revolving credit facility. Equity In July 2024, the Company issued and sold 413,250 shares of common stock at a weighted average price of $11.11 per share under the ATM program, receiving net proceeds, after offering costs and commissions, of $4.5 million. On July 1, 2024, in connection with the tender by holders of Class A Units of 79,650 Class A Units for redemption by the Operating Partnership, the Company elected to satisfy the redemption requests through the issuance of an equal number of shares of common stock.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
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Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 3,172 | $ 11,863 | $ 17,245 | $ 16,572 |
Insider Trading Arrangements |
3 Months Ended |
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Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The condensed consolidated financial statements include the financial position and results of operations of the Company and its subsidiaries. The Company’s subsidiaries include the Operating Partnership and the subsidiaries that are wholly owned or in which the Company has a controlling interest, including where the Company has been determined to be a primary beneficiary of a variable interest entity ("VIE") in accordance with the consolidation guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"). All significant intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for the fair presentation of the financial condition, and results of operations for the interim periods presented. The accompanying condensed consolidated financial statements were prepared in accordance with the requirements for interim financial information. Accordingly, these interim financial statements have not been audited and exclude certain disclosures required for annual financial statements. Also, the operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These interim financial statements should be read in conjunction with the audited consolidated financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed. Such estimates are based on management’s historical experience and best judgment after considering past, current, and expected events and economic conditions. Actual results could differ significantly from management’s estimates.
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Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Standards Not Yet Adopted: Segment Reporting In November 2023, the FASB issued ASU 2023-07 as an update to ASC Topic 280, which will be effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024. Early adoption is permitted. ASU 2023-07 requires an entity to disclose significant segment expenses regularly provided to the chief operating decision maker, a description of "other segment items," and the title and position of the chief operating decision maker, and allows for more than one measure of a segment's profit or loss if used by the chief operating decision maker. The update also enhances interim disclosure requirements and requirements for entities with a single reportable segment. The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements. Income Taxes In December 2023, the FASB issued ASU 2023-09 as an update to ASC Topic 740, which will become effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. ASU 2023-09 enhances the disclosures surrounding income taxes, specifically in relation to the rate reconciliation table and income taxes paid. The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements.
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Segments | Segments The Company operates its business in five reportable segments: (i) retail real estate, (ii) office real estate, (iii) multifamily real estate, (iv) general contracting and real estate services, and (v) real estate financing. Refer to Note 1 for the composition of properties within each property segment. Net operating income ("NOI") is the primary measure used by the Company’s chief operating decision-maker to assess segment performance. NOI is calculated as segment revenues less segment expenses. Segment revenues include rental revenues for the property segments, general contracting and real estate services revenues for the general contracting and real estate services segment, and interest income for the real estate financing segment. Segment expenses include rental expenses and real estate taxes for the property segments, general contracting and real estate services expenses for the general contracting and real estate services segment, and interest expense for the real estate financing segment. Segment NOI for the general contracting and real estate services and real estate financing segments is also referred to as segment gross profit as illustrated in the table below. NOI is not a measure of operating income or cash flows from operating activities as measured by GAAP and is not indicative of cash available to fund cash needs. As a result, NOI should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate NOI in the same manner. The Company considers NOI to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of the Company’s real estate, construction, and real estate financing businesses.
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Allowance for Loan Losses | Allowance for Loan Losses The Company is exposed to credit losses primarily through its real estate financing investments. As of June 30, 2024, the Company had five real estate financing investments, which are financing development projects in various stages of completion or lease-up. Each of these projects is subject to a loan that is senior to the Company’s loan. Interest on these loans is paid in kind and is generally not expected to be paid until a sale of the project after completion of the development. The Company's management performs a quarterly analysis of the loan portfolio to determine the risk of credit loss based on the progress of development activities, including leasing activities, projected development costs, and current and projected subordinated and senior loan balances. The Company estimates future losses on its notes receivable using risk ratings that correspond to probabilities of default and loss given default. The Company's risk ratings are as follows: •Pass: loans in this category are adequately collateralized by a development project with conditions materially consistent with the Company's underwriting assumptions. •Special Mention: loans in this category show signs that the economic performance of the project may suffer as a result of slower-than-expected leasing activity or an extended development or marketing timeline. Loans in this category warrant increased monitoring by management. •Substandard: loans in this category may not be fully collected by the Company unless remediation actions are taken. Remediation actions may include obtaining additional collateral or assisting the borrower with asset management activities to prepare the project for sale. The Company will also consider placing the loan on non-accrual status if it does not believe that additional interest accruals will ultimately be collected.
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Construction Contracts | Construction Contracts Construction contract costs and estimated earnings in excess of billings represent reimbursable costs and amounts earned under contracts in progress as of the balance sheet date. Such amounts become billable according to contract terms, which usually consider the passage of time, achievement of certain milestones, or completion of the project. The Company expects to bill and collect substantially all construction contract costs and estimated earnings in excess of billings as of June 30, 2024 during the next 12 to 24 months. Billings in excess of construction contract costs and estimated earnings represent billings or collections on contracts made in advance of revenue recognized. The Company defers pre-contract costs when such costs are directly associated with specific anticipated contracts and their recovery is probable.
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Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value measurements are based on assumptions that market participants would use in pricing an asset or a liability. The hierarchy for inputs used in measuring fair value is as follows: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 — unobservable inputs Except as disclosed below, the carrying amounts of the Company’s financial instruments approximate their fair values. Financial assets and liabilities whose fair values are measured on a recurring basis using Level 2 inputs consist of interest rate swaps and caps. The Company measures the fair values of these assets and liabilities based on prices provided by independent market participants that are based on observable inputs using market-based valuation techniques. Financial assets and liabilities whose fair values are not measured at fair value but for which the fair value is disclosed include the Company's notes receivable and indebtedness. The fair value is estimated by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity, credit characteristics, and other terms of the arrangements, which are Level 3 inputs under the fair value hierarchy. In certain cases, the inputs used to estimate the fair value may fall into different levels of the fair value hierarchy. For disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Considerable judgment is used to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments.
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Legal Proceedings | Legal Proceedings The Company is from time to time involved in various disputes, lawsuits, warranty claims, environmental, and other matters arising in the ordinary course of business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters. The Company currently is a party to various legal proceedings, none of which management expects will have a material adverse effect on the Company’s financial position, results of operations, or liquidity. Management accrues a liability for litigation if an unfavorable outcome is determined to be probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is determined to be probable and a range of loss can be reasonably estimated, management accrues the best estimate within the range; however, if no amount within the range is a better estimate than any other, the minimum amount within the range is accrued. Legal fees related to litigation are expensed as incurred. Management does not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on the Company’s financial position or results of operations; however, litigation is subject to inherent uncertainties. Under the Company’s leases, tenants are typically obligated to indemnify the Company from and against all liabilities, costs, and expenses imposed upon or asserted against it as owner of the properties due to certain matters relating to the operation of the properties by the tenant.
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Business and Organization (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Operating Portfolio | As of June 30, 2024, the Company's stabilized operating portfolio consisted of the following properties:
________________________________________ *Mixed-use asset. (1) Formerly reported in the office real estate segment. Refer to Note 3 for further information. (2) Formerly known as Apex Entertainment. (3) Formerly reported in the multifamily real estate segment. Refer to Note 3 for further information. (4) We are entitled to a preferred return on our investment in this property. (5) Formerly reported in the retail real estate segment. Refer to Note 3 for further information.
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Schedule of Properties Under Development or Construction | As of June 30, 2024, the following properties were under development or redevelopment:
________________________________________ *Mixed-use asset.
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Segments (Tables) |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Operating Income of Reportable Segments | The following table presents NOI for the Company's five reportable segments for the three and six months ended June 30, 2024 and 2023 (in thousands):
________________________________________ (a) Interest expense within the real estate financing segment is allocated based on the average outstanding principal of notes receivable in the real estate financing portfolio and the effective interest rates on the credit facility, the M&T term loan facility, and the TD term loan facility, each as defined in Note 9.
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Schedule of Reconciliation of Net Income | The following table reconciles NOI to net income, the most directly comparable GAAP measure, for the three and six months ended June 30, 2024 and 2023 (in thousands):
________________________________________ (a) Excludes real estate financing segment interest income of $4.0 million and $3.2 million for the three months ended June 30, 2024 and 2023, respectively, and $8.0 million and $6.8 million for the six months ended June 30, 2024 and 2023, respectively. (b) Excludes real estate financing segment interest expense of $1.8 million and $0.8 million for the three months ended June 30, 2024 and 2023, respectively, and $3.1 million and $1.9 million for the six months ended June 30, 2024 and 2023, respectively.
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Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Rental Revenue | Rental revenue for the three and six months ended June 30, 2024 and 2023 comprised the following (in thousands):
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Notes Receivable and Current Expected Credit Losses (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notes Receivable Outstanding | The Company had the following notes receivable outstanding as of June 30, 2024 and December 31, 2023 ($ in thousands):
________________________________________ (a) Outstanding loan amounts include any accrued and unpaid interest, and accrued fees, as applicable. (b) The interest rate varies over the life of the loans and the Company also earns an unused commitment fee on amounts not drawn on the loans. (c) The interest rate varies over the life of the loan. (d) The amounts as of June 30, 2024 and December 31, 2023 exclude $0.4 million and $0.7 million, respectively, of Current Expected Credit Losses (“CECL”) allowance that relates to the unfunded commitments, which were recorded as a liability under other liabilities in the consolidated balance sheets.
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Schedule of Interest Income | The Company recognized interest income for the three and six months ended June 30, 2024 and 2023 as follows (in thousands):
________________________________________ (a) Includes recognition of interest income related to fee amortization. (b) Includes recognition of unused commitment fees. (c) This note receivable was redeemed on May 19, 2023 in connection with the Company’s acquisition of The Interlock.
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Schedule Allowance for Credit Losses on Financing Receivables | Changes in the allowance for the six months ended June 30, 2024 and 2023 were as follows (in thousands):
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Construction Contracts (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractors [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Balances and Changes of Construction Contracts | The following table summarizes the changes to the balances in the Company’s construction contract costs and estimated earnings in excess of billings account and the billings in excess of construction contract costs and estimated earnings account for the six months ended June 30, 2024 and 2023 (in thousands):
The Company’s balances and changes in construction contract price allocated to unsatisfied performance obligations (backlog) as of June 30, 2024 and 2023 were as follows (in thousands):
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Schedule of Net Position of Uncompleted Construction Contracts | The Company’s net position on uncompleted construction contracts comprised the following as of June 30, 2024 and December 31, 2023 (in thousands):
The above table reflects the net effect of projects closed as of June 30, 2024 and December 31, 2023, as applicable.
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Derivative Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Floating to Fixed Interest Rate Swaps | As of June 30, 2024, the Company held the following floating-to-fixed interest rate swaps ($ in thousands):
________________________________________ (a) The Company novated an existing 3.43% fixed rate swap with a $100.0 million notional and assigned (A) $11.1 million notional to the loan secured by Market at Mill Creek, effective April 17, 2024 and (B) $21.0 million to the loan secured by Liberty Retail & Apartments, effective February 1, 2024. Once the novated swap related to the Market at Mill Creek loan expires, the $67.9 million swap on the senior unsecured loan will increase back to $79.0 million. (b) This interest rate swap agreement reduces the Company's interest rate exposure on the $180.4 million senior construction loan secured by the Company's Harbor Point Parcel 3 equity method investment as described in Note 6. As such, the loan is not reflected on the Company's consolidated balance sheets. The Company also paid $3.6 million to reduce the swap fixed rate. (c) The Company paid $13.3 million to reduce the swap fixed rate. (d) This interest rate swap agreement reduces the Company's interest rate exposure on the $109.7 million senior construction loan secured by the Company's Harbor Point Parcel 4 equity method investment as described in Note 6. As such, the loan is not reflected on the Company's consolidated balance sheets. The Company also paid $3.9 million to reduce the swap fixed rate. (e) The Company paid $10.5 million to reduce the swap fixed rate. (f) Subject to cancellation by the counterparty beginning on May 1, 2025 and the first day of each month thereafter. (g) Designated as a cash flow hedge.
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Schedule of Derivatives | The Company’s derivatives were comprised of the following as of June 30, 2024 and December 31, 2023 (in thousands):
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Schedule of Changes in Fair Value of Derivatives | The unrealized changes in the fair value of the Company’s derivatives during the three and six months ended June 30, 2024 and 2023 were comprised of the following (in thousands):
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Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Dividends and Distributions | During the six months ended June 30, 2024, the following dividends/distributions were declared or paid:
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Fair Value of Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Amounts and Fair Values of Financial Instruments Measured | The carrying amounts and fair values of the Company’s financial instruments as of June 30, 2024 and December 31, 2023 were as follows (in thousands):
________________________________________ (a) Excludes $9.4 million and $10.4 million of deferred financing costs as of June 30, 2024 and December 31, 2023, respectively.
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Business of Organization - Additional Information (Details) |
Jun. 30, 2024 |
Dec. 31, 2023 |
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Business And Organization [Line Items] | ||
Percentage of operating partnership held | 75.60% | 75.60% |
General Partner | ||
Business And Organization [Line Items] | ||
Percentage of operating partnership held | 0.10% |
Business and Organization - Schedule of Operating Portfolio (Details) |
Jun. 30, 2024 |
---|---|
249 Central Park Retail | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
4525 Main Street Retail | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
4621 Columbus Retail | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Columbus Village | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Commerce Street Retail | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Fountain Plaza Retail | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Pembroke Square | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Premier Retail | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
South Retail | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Studio 56 Retail | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
The Cosmopolitan Retail | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Two Columbus Retail | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
West Retail | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Broad Creek Shopping Center | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Broadmoor Plaza | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Brooks Crossing Retail | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 65.00% |
Delray Beach Plaza | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Greenbrier Square | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Greentree Shopping Center | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Hanbury Village | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Lexington Square | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Market at Mill Creek | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
North Pointe Center | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Parkway Centre | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Parkway Marketplace | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Perry Hall Marketplace | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Sandbridge Commons | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Tyre Neck Harris Teeter | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Constellation Retail | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 90.00% |
Point Street Retail | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Chronicle Mill Retail | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 85.00% |
Nexton Square | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
North Hampton Market | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
One City Center Retail | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Overlook Village | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Patterson Place | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Providence Plaza Retail | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
South Square | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
The Interlock Retail | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Wendover Village | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Dimmock Square | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Harrisonburg Regal | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Liberty Retail | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Marketplace at Hilltop | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Red Mill Commons | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Southgate Square | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Southshore Shops | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
The Edison Retail | Retail | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
249 Central Park Office | Office | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
4525 Main Street | Office | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
4605 Columbus Office | Office | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Armada Hoffler Tower | Office | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
One Columbus | Office | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Two Columbus Office | Office | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Constellation Office | Office | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 90.00% |
Thames Street Wharf loan | Office | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Wills Wharf | Office | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Chronicle Mill Office | Office | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 85.00% |
One City Center Office | Office | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Providence Plaza Office | Office | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
The Interlock Office | Office | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Brooks Crossing Office | Office | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Encore Apartments | Multifamily | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Premier Apartments | Multifamily | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
The Cosmopolitan Apartments | Multifamily | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
1305 Dock Street | Multifamily | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 90.00% |
1405 Point | Multifamily | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Chronicle Mill Apartments | Multifamily | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 85.00% |
Greenside Apartments | Multifamily | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
The Everly | Multifamily | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
The Edison Apartments | Multifamily | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Liberty Apartments | Multifamily | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Smith's Landing | Multifamily | |
Business And Organization [Line Items] | |
Subsidiary, Ownership Percentage, Parent | 100.00% |
Business and Organization - Schedule of Properties Under Development or Construction (Details) |
Jun. 30, 2024 |
---|---|
Retail | Southern Post Retail | |
Business And Organization [Line Items] | |
Ownership interest percentage in property | 100.00% |
Retail | Columbus Village II | |
Business And Organization [Line Items] | |
Ownership interest percentage in property | 100.00% |
Office | Southern Post Office | |
Business And Organization [Line Items] | |
Ownership interest percentage in property | 100.00% |
Multifamily | Chandler Residences | |
Business And Organization [Line Items] | |
Ownership interest percentage in property | 100.00% |
Segments - Additional Information (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024
USD ($)
|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2024
USD ($)
segment
|
Jun. 30, 2023
USD ($)
|
|
Segment Reporting Information | ||||
Number of reportable segments | segment | 5 | |||
Segment gross profit | $ 48,830 | $ 46,563 | $ 96,926 | $ 89,916 |
General contracting and real estate services revenues | 116,839 | 102,574 | 243,814 | 186,812 |
Depreciation and amortization | 20,789 | 19,878 | 41,224 | 38,346 |
Retail real estate | ||||
Segment Reporting Information | ||||
Segment gross profit | 19,280 | 18,875 | 38,305 | 35,922 |
Depreciation and amortization | 3,600 | 4,300 | 7,300 | 8,500 |
Interest expense | 3,800 | 2,600 | 7,400 | 5,200 |
Net carrying amount | 693,000 | 693,000 | ||
Retail real estate | Revision of Prior Period, Reclassification, Adjustment | ||||
Segment Reporting Information | ||||
Segment gross profit | 500 | 800 | ||
Office real estate | ||||
Segment Reporting Information | ||||
Segment gross profit | 14,779 | 13,140 | 28,319 | 25,553 |
Depreciation and amortization | 8,300 | 7,800 | 16,300 | 15,100 |
Interest expense | 3,600 | 2,200 | 6,800 | 4,400 |
Net carrying amount | 638,900 | 638,900 | ||
Office real estate | Revision of Prior Period, Reclassification, Adjustment | ||||
Segment Reporting Information | ||||
Segment gross profit | 100 | 100 | ||
Multifamily real estate | ||||
Segment Reporting Information | ||||
Segment gross profit | 8,233 | 8,629 | 17,019 | 17,015 |
Depreciation and amortization | 8,800 | 7,600 | 17,300 | 14,500 |
Interest expense | 2,900 | 2,300 | 5,700 | 4,600 |
Net carrying amount | 445,600 | 445,600 | ||
Multifamily real estate | Revision of Prior Period, Reclassification, Adjustment | ||||
Segment Reporting Information | ||||
Segment gross profit | (500) | 900 | ||
General contracting and real estate services | ||||
Segment Reporting Information | ||||
Segment gross profit | 4,339 | 3,503 | 8,416 | 6,571 |
General contracting and real estate services revenues | 116,839 | 102,574 | 243,814 | 186,812 |
General contracting and real estate services expenses | 112,500 | 99,071 | 235,398 | 180,241 |
General contracting and real estate services | Intercompany Eliminations | ||||
Segment Reporting Information | ||||
General contracting and real estate services revenues | 4,300 | 12,900 | 12,700 | 26,600 |
General contracting and real estate services expenses | 4,200 | $ 12,800 | 12,500 | $ 26,300 |
Mixed-Use Development | ||||
Segment Reporting Information | ||||
Net carrying amount | $ 41,400 | $ 41,400 |
Segments - Schedule of Net Operating Income of Reportable Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Segment Reporting Information | ||||
Rental revenues | $ 63,265 | $ 59,951 | $ 125,146 | $ 116,169 |
Rental expenses | 15,087 | 13,676 | 29,692 | 26,636 |
Real estate taxes | 5,886 | 5,631 | 11,811 | 11,043 |
General contracting and real estate services revenues | 116,839 | 102,574 | 243,814 | 186,812 |
Segment gross profit | 48,830 | 46,563 | 96,926 | 89,916 |
Retail real estate | ||||
Segment Reporting Information | ||||
Rental revenues | 26,094 | 25,288 | 51,745 | 48,247 |
Rental expenses | 4,394 | 4,073 | 8,605 | 7,717 |
Real estate taxes | 2,420 | 2,340 | 4,835 | 4,608 |
Interest expense | 3,800 | 2,600 | 7,400 | 5,200 |
Segment gross profit | 19,280 | 18,875 | 38,305 | 35,922 |
Office real estate | ||||
Segment Reporting Information | ||||
Rental revenues | 22,870 | 20,629 | 44,748 | 40,286 |
Rental expenses | 5,956 | 5,332 | 12,079 | 10,491 |
Real estate taxes | 2,135 | 2,157 | 4,350 | 4,242 |
Interest expense | 3,600 | 2,200 | 6,800 | 4,400 |
Segment gross profit | 14,779 | 13,140 | 28,319 | 25,553 |
Multifamily real estate | ||||
Segment Reporting Information | ||||
Rental revenues | 14,301 | 14,034 | 28,653 | 27,636 |
Rental expenses | 4,737 | 4,271 | 9,008 | 8,428 |
Real estate taxes | 1,331 | 1,134 | 2,626 | 2,193 |
Interest expense | 2,900 | 2,300 | 5,700 | 4,600 |
Segment gross profit | 8,233 | 8,629 | 17,019 | 17,015 |
General contracting and real estate services | ||||
Segment Reporting Information | ||||
General contracting and real estate services revenues | 116,839 | 102,574 | 243,814 | 186,812 |
General contracting and real estate services expenses | 112,500 | 99,071 | 235,398 | 180,241 |
Segment gross profit | 4,339 | 3,503 | 8,416 | 6,571 |
Real estate financing | ||||
Segment Reporting Information | ||||
Interest income | 3,966 | 3,225 | 7,966 | 6,761 |
Interest expense | 1,767 | 809 | 3,099 | 1,906 |
Segment gross profit | $ 2,199 | $ 2,416 | $ 4,867 | $ 4,855 |
Segments - Schedule of Reconciliation of Net Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2024 |
Mar. 31, 2024 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Segment Reporting Information | ||||||
Net operating income | $ 48,830 | $ 46,563 | $ 96,926 | $ 89,916 | ||
Depreciation and amortization | (20,789) | (19,878) | (41,224) | (38,346) | ||
Amortization of right-of-use assets - finance leases | (394) | (347) | (789) | (624) | ||
General and administrative expenses | (4,503) | (4,052) | (10,377) | (9,500) | ||
Acquisition, development, and other pursuit costs | (5,528) | (18) | (5,528) | (18) | ||
Impairment charges | (1,494) | 0 | (1,494) | (102) | ||
Gain on real estate dispositions, net | 0 | 511 | 0 | 511 | ||
Interest expense | (21,227) | (13,629) | (39,202) | (25,931) | ||
Change in fair value of derivatives and other | 4,398 | 5,005 | 17,286 | 2,558 | ||
Unrealized credit loss release (provision) | 228 | (100) | 145 | (177) | ||
Other income, net | 79 | 168 | 158 | 261 | ||
Income tax benefit (provision) | 1,246 | (336) | 712 | (524) | ||
Net income | 3,279 | $ 17,725 | 14,885 | $ 5,417 | 21,004 | 20,302 |
Corporate And Reconciling Items | ||||||
Segment Reporting Information | ||||||
Interest income | 666 | 189 | 1,292 | 372 | ||
Gain on real estate dispositions, net | 0 | 511 | 0 | 511 | ||
Interest expense | (19,460) | (12,820) | (36,103) | (24,025) | ||
Real estate financing | ||||||
Segment Reporting Information | ||||||
Net operating income | 2,199 | 2,416 | 4,867 | 4,855 | ||
Interest income | 3,966 | 3,225 | 7,966 | 6,761 | ||
Real estate financing | Operating Segments | ||||||
Segment Reporting Information | ||||||
Interest income | 4,000 | 3,200 | 8,000 | 6,800 | ||
Interest expense | $ (1,800) | $ (800) | $ (3,100) | $ (1,900) |
Leases - Additional Information (Details) |
6 Months Ended |
---|---|
Jun. 30, 2024
lease
property
renewal_option
| |
Lessee, Lease, Description [Line Items] | |
Number of ground leases | 9 |
Number of properties subject to ground leases | property | 9 |
Number of operating leases | 5 |
Number of finance leases | 4 |
Number of options to extend, more than | renewal_option | 1 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 25 years |
Leases - Schedule of Rental Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Leases [Abstract] | ||||
Base rent and tenant charges | $ 60,995 | $ 57,093 | $ 121,178 | $ 111,564 |
Accrued straight-line rental adjustment | 1,866 | 1,788 | 3,166 | 3,243 |
Lease incentive amortization | (119) | (150) | (238) | (315) |
(Above) below market lease amortization, net | 523 | 1,220 | 1,040 | 1,677 |
Total rental revenue | $ 63,265 | $ 59,951 | $ 125,146 | $ 116,169 |
Real Estate Investments - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2025 |
|
Real Estate Properties [Line Items] | |||||
Impairment charges | $ 1,494 | $ 0 | $ 1,494 | $ 102 | |
Development costs wrote off | 5,500 | ||||
Income tax benefit | $ 1,600 | ||||
Forecast | |||||
Real Estate Properties [Line Items] | |||||
Gain (loss) on sales of investment real estate | $ 4,800 |
Equity Method Investment (Details) - USD ($) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
Apr. 01, 2022 |
|
Schedule of Equity Method Investments [Line Items] | ||||
Investment in equity method investment during period | $ 10,584 | $ 30,388 | ||
Equity method investments | 152,615 | $ 142,031 | ||
Harbor Point Parcel 3 | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | $ 2,500 | 2,200 | ||
Harbor Point Parcel 3 | Beatty Development Group | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Interests in equity method investments | 50.00% | |||
Investment in equity method investment during period | $ 1,400 | |||
Maximum commitment | 47,000 | |||
Equity method investments | 42,200 | 40,700 | ||
Harbor Point Parcel 4 | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | $ 1,200 | 800 | ||
Harbor Point Parcel 4 | Beatty Development Group | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Interests in equity method investments | 78.00% | 78.00% | ||
Investment in equity method investment during period | $ 9,100 | |||
Maximum commitment | 113,300 | |||
Equity method investments | $ 110,400 | $ 101,300 | ||
Potential increase in ownership percentage | 90.00% |
Notes Receivable and Current Expected Credit Losses - Schedule of Notes Receivable Outstanding (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for credit losses | $ (1,682) | $ (1,472) | $ (1,239) | $ (1,292) |
Total notes receivable | 124,178 | 94,172 | ||
Allowance related to unfunded commitments | 377 | 732 | $ 569 | $ 338 |
Other liabilities | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance related to unfunded commitments | 400 | 700 | ||
Mezzanine loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal | 95,013 | |||
Accrued interest and fees | 18,255 | |||
Notes receivable | 113,268 | 83,425 | ||
Maximum principal commitment | 115,727 | |||
Mezzanine loan | Solis City Park II | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal | 20,594 | |||
Accrued interest and fees | 5,075 | |||
Notes receivable | 25,669 | 24,313 | ||
Maximum principal commitment | $ 20,594 | |||
Interest rate | 13.00% | |||
Mezzanine loan | Solis Gainesville II | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal | $ 19,595 | |||
Accrued interest and fees | 4,247 | |||
Notes receivable | 23,842 | 22,268 | ||
Maximum principal commitment | $ 19,595 | |||
Interest rate | 14.00% | |||
Mezzanine loan | Solis Kennesaw | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal | $ 30,050 | |||
Accrued interest and fees | 4,793 | |||
Notes receivable | 34,843 | 15,922 | ||
Maximum principal commitment | $ 37,870 | |||
Interest rate | 14.00% | |||
Mezzanine loan | Solis Peachtree Corners | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal | $ 15,546 | |||
Accrued interest and fees | 2,849 | |||
Notes receivable | 18,395 | 11,092 | ||
Maximum principal commitment | $ 28,440 | |||
Interest rate | 15.00% | |||
Mezzanine loan | The Allure at Edinburgh | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal | $ 9,228 | |||
Accrued interest and fees | 1,291 | |||
Notes receivable | 10,519 | 9,830 | ||
Maximum principal commitment | $ 9,228 | |||
Interest rate | 15.00% | |||
Other notes receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Notes receivable | $ 12,592 | $ 12,219 |
Notes Receivable and Current Expected Credit Losses - Schedule of Interest Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | $ 4,632 | $ 3,414 | $ 9,258 | $ 7,133 |
Mezzanine loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 3,966 | 3,225 | 7,966 | 6,761 |
Other interest income | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 666 | 189 | 1,292 | 372 |
Solis City Park II | Mezzanine loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 608 | 732 | 1,355 | 1,402 |
Solis Gainesville II | Mezzanine loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 786 | 654 | 1,572 | 1,247 |
Solis Kennesaw | Mezzanine loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 1,315 | 465 | 2,551 | 465 |
Solis Peachtree Corners | Mezzanine loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 913 | 0 | 1,800 | 0 |
The Allure at Edinburgh | Mezzanine loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 344 | 0 | 688 | 0 |
The Interlock | Mezzanine loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | $ 0 | $ 1,374 | $ 0 | $ 3,647 |
Notes Receivable and Current Expected Credit Losses - Additional Information (Details) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2024
USD ($)
investment
|
Dec. 31, 2023
USD ($)
|
Jun. 30, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | $ 2,059 | $ 2,204 | $ 1,808 | $ 1,630 |
Allowance related to unfunded commitments | 377 | 732 | 569 | 338 |
Notes receivable, net | 124,178 | 94,172 | ||
Allowance for credit losses | $ 1,682 | $ 1,472 | $ 1,239 | $ 1,292 |
Mezzanine loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of financial instruments | investment | 5 |
Notes Receivable and Current Expected Credit Losses - Schedule Allowance for Credit Losses on Financing Receivables (Details) - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Funded | ||
Beginning balance | $ 1,472,000 | $ 1,292,000 |
Unrealized credit loss provision (release) | 210,000 | 412,000 |
Release due to redemption | 0 | (465,000) |
Ending balance | 1,682,000 | 1,239,000 |
Unfunded | ||
Beginning balance | 732,000 | 338,000 |
Unrealized credit loss provision (release) | (355,000) | 231,000 |
Release due to redemption | 0 | 0 |
Ending balance | 377,000 | 569,000 |
Total | ||
Beginning balance | 2,204,000 | 1,630,000 |
Unrealized credit loss provision (release) | (145,000) | 643,000 |
Release due to redemption | 0 | 465,000 |
Ending balance | $ 2,059,000 | $ 1,808,000 |
Construction Contracts - Additional Information (Details) - USD ($) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Construction receivables retentions | $ 32,700 | $ 28,700 | ||
Retentions | 19,418 | $ 18,311 | 21,414 | $ 17,515 |
Construction | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Retentions | 42,500 | 38,200 | ||
Portion Attributable To Pending Contracts | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Pre-contract costs | 1,500 | $ 1,900 | ||
Amortization of pre-contract costs | $ 200 | $ 300 | ||
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Expected completion of contracts | 12 months | |||
Minimum | Construction | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Expected completion of contracts | 12 months | |||
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Expected completion of contracts | 24 months | |||
Maximum | Construction | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Expected completion of contracts | 24 months |
Construction Contracts - Schedule of Balances and Changes of Construction Contracts (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Construction contract costs and estimated earnings in excess of billings | ||
Beginning balance | $ 104 | $ 342 |
Transferred to receivables | (106) | (343) |
Construction contract costs and estimated earnings not billed during the period | 542 | 406 |
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion | 2 | 1 |
Ending balance | 542 | 406 |
Billings in excess of construction contract costs and estimated earnings | ||
Beginning balance | 21,414 | 17,515 |
Revenue recognized that was included in the balance at the beginning of the period | (21,414) | (17,515) |
Increases due to new billings, excluding amounts recognized as revenue during the period | 21,454 | 19,282 |
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion | (2,036) | (971) |
Ending balance | $ 19,418 | $ 18,311 |
Construction Contracts - Schedule of Net Position of Uncompleted Construction Contracts (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Contractors [Abstract] | ||||
Costs incurred on uncompleted construction contracts | $ 820,166 | $ 718,571 | ||
Estimated earnings | 29,958 | 26,089 | ||
Billings | (869,000) | (765,970) | ||
Net position | (18,876) | (21,310) | ||
Construction contract costs and estimated earnings in excess of billings | 542 | 104 | $ 406 | $ 342 |
Billings in excess of construction contract costs and estimated earnings | $ (19,418) | $ (21,414) | $ (18,311) | $ (17,515) |
Construction Contracts - Schedule of Changes of Construction Contracts (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Revenue, Remaining Performance Obligation [Roll Forward] | ||||
Beginning backlog | $ 343,406 | $ 651,840 | $ 472,169 | $ 665,564 |
New contracts/change orders | 76,585 | 43,975 | 75,181 | 114,767 |
Work performed | (117,141) | (103,029) | (244,500) | (187,545) |
Ending backlog | $ 302,850 | $ 592,786 | $ 302,850 | $ 592,786 |
Indebtedness (Details) |
6 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 10, 2024
USD ($)
|
May 19, 2023
USD ($)
|
Dec. 06, 2022
USD ($)
|
Aug. 23, 2022
USD ($)
extension_option
|
Jun. 30, 2024
USD ($)
|
Jun. 21, 2024
USD ($)
|
Jun. 14, 2024
USD ($)
|
Dec. 31, 2023
USD ($)
|
Aug. 29, 2023
USD ($)
|
Jun. 29, 2023
USD ($)
|
|
Line of Credit | Amended And Restated Credit Agreement | ||||||||||
Indebtedness | ||||||||||
Aggregate capacity under the credit facility | $ 550,000,000.0 | |||||||||
Accordion feature maximum borrowing capacity | 1,000,000,000.0 | |||||||||
Line of Credit | M&T Term Loan Agreement | ||||||||||
Indebtedness | ||||||||||
Aggregate capacity under the credit facility | $ 100,000,000 | |||||||||
Accordion feature maximum borrowing capacity | $ 200,000,000 | |||||||||
Line of Credit | TD Term Loan Facility | ||||||||||
Indebtedness | ||||||||||
Aggregate capacity under the credit facility | $ 75,000,000 | |||||||||
Accordion feature maximum borrowing capacity | $ 150,000,000 | |||||||||
Line of Credit | Revolving credit facility | Amended And Restated Credit Agreement | ||||||||||
Indebtedness | ||||||||||
Aggregate capacity under the credit facility | $ 250,000,000.0 | $ 355,000,000.0 | ||||||||
Number of extension options | extension_option | 2 | |||||||||
Duration of extension option | 6 months | |||||||||
Extension fee percentage | 0.075% | |||||||||
Increased the capacity of the revolving credit facility | $ 50,000,000 | 105,000,000 | ||||||||
Credit spread adjustment | 0.10% | |||||||||
Line of credit, amount outstanding | $ 187,000,000.0 | $ 267,000,000.0 | ||||||||
Interest rate on credit facility as of end of period | 6.94% | |||||||||
Interest rate on credit facility as of end of period after giving effect to interest rate caps and swaps | 4.80% | |||||||||
Line of Credit | Revolving credit facility | M&T Term Loan Agreement | ||||||||||
Indebtedness | ||||||||||
Duration of extension option | 1 year | |||||||||
Extension fee percentage | 0.075% | |||||||||
Increased the capacity of the revolving credit facility | $ 35,000,000 | |||||||||
Credit spread adjustment | 0.10% | |||||||||
Line of credit, amount outstanding | $ 135,000,000 | $ 135,000,000 | 100,000,000 | |||||||
Interest rate on credit facility as of end of period | 5.05% | |||||||||
Interest rate on credit facility as of end of period after giving effect to interest rate caps and swaps | 6.89% | |||||||||
Line of Credit | Revolving credit facility | TD Term Loan Facility | ||||||||||
Indebtedness | ||||||||||
Aggregate capacity under the credit facility | $ 95,000,000 | |||||||||
Duration of extension option | 1 year | |||||||||
Extension fee percentage | 0.15% | |||||||||
Credit spread adjustment | 0.10% | |||||||||
Line of credit, amount outstanding | $ 95,000,000 | 95,000,000 | ||||||||
Interest rate on credit facility as of end of period | 6.99% | |||||||||
Interest rate on credit facility as of end of period after giving effect to interest rate caps and swaps | 4.85% | |||||||||
Line of Credit | Revolving credit facility | Chronicle Mill | ||||||||||
Indebtedness | ||||||||||
Duration of extension option | 1 year | |||||||||
Line of Credit | Revolving credit facility | Secured Overnight Financing Rate (SOFR) | M&T Term Loan Agreement | ||||||||||
Indebtedness | ||||||||||
Stated interest rate, basis spread on variable rate | 1.00% | |||||||||
Line of Credit | Revolving credit facility | Secured Overnight Financing Rate (SOFR) | TD Term Loan Facility | ||||||||||
Indebtedness | ||||||||||
Stated interest rate, basis spread on variable rate | 1.00% | |||||||||
Line of Credit | Revolving credit facility | Federal Funds Rate | M&T Term Loan Agreement | ||||||||||
Indebtedness | ||||||||||
Stated interest rate, basis spread on variable rate | 0.50% | |||||||||
Line of Credit | Revolving credit facility | Federal Funds Rate | TD Term Loan Facility | ||||||||||
Indebtedness | ||||||||||
Stated interest rate, basis spread on variable rate | 0.50% | |||||||||
Line of Credit | Revolving credit facility | Base Rate | TD Term Loan Facility | ||||||||||
Indebtedness | ||||||||||
Stated interest rate, basis spread on variable rate | 1.00% | |||||||||
Line of Credit | Revolving credit facility | Minimum | Amended And Restated Credit Agreement | ||||||||||
Indebtedness | ||||||||||
Basis points on unused commitment fee | 0.15% | |||||||||
Line of Credit | Revolving credit facility | Minimum | Secured Overnight Financing Rate (SOFR) | Amended And Restated Credit Agreement | ||||||||||
Indebtedness | ||||||||||
Stated interest rate, basis spread on variable rate | 1.30% | |||||||||
Line of Credit | Revolving credit facility | Maximum | Amended And Restated Credit Agreement | ||||||||||
Indebtedness | ||||||||||
Basis points on unused commitment fee | 0.25% | |||||||||
Line of Credit | Revolving credit facility | Maximum | Secured Overnight Financing Rate (SOFR) | Amended And Restated Credit Agreement | ||||||||||
Indebtedness | ||||||||||
Stated interest rate, basis spread on variable rate | 1.85% | |||||||||
Line of Credit | Term Loan Facility | Amended And Restated Credit Agreement | ||||||||||
Indebtedness | ||||||||||
Aggregate capacity under the credit facility | $ 300,000,000.0 | $ 350,000,000 | $ 655,000,000.0 | |||||||
Credit spread adjustment | 0.10% | |||||||||
Line of credit, amount outstanding | $ 350,000,000.0 | $ 300,000,000 | ||||||||
Interest rate on credit facility as of end of period | 6.89% | |||||||||
Interest rate on credit facility as of end of period after giving effect to interest rate caps and swaps | 4.98% | |||||||||
Line of Credit | Term Loan Facility | Minimum | Secured Overnight Financing Rate (SOFR) | Amended And Restated Credit Agreement | ||||||||||
Indebtedness | ||||||||||
Stated interest rate, basis spread on variable rate | 1.25% | |||||||||
Line of Credit | Term Loan Facility | Maximum | Secured Overnight Financing Rate (SOFR) | Amended And Restated Credit Agreement | ||||||||||
Indebtedness | ||||||||||
Stated interest rate, basis spread on variable rate | 1.80% | |||||||||
Construction loans | ||||||||||
Indebtedness | ||||||||||
Borrowings under construction loans | $ 23,000,000 | |||||||||
Secured debt | Red Mill Commons | ||||||||||
Indebtedness | ||||||||||
Extinguishment of debt | $ 1,760,000 |
Derivative Financial Instruments - Additional Information (Details) $ in Thousands |
Jun. 30, 2024
USD ($)
derivative
|
Dec. 31, 2023
USD ($)
|
Sep. 01, 2022
USD ($)
|
---|---|---|---|
Derivative [Line Items] | |||
Notional amount | $ 1,260,740 | $ 1,786,163 | |
Gain reclassified during next 12 months | $ 4,000 | ||
Interest rate caps | |||
Derivative [Line Items] | |||
Number of interest rate derivatives held | derivative | 1 | ||
Cap rate purchased, interest rate | 1.00% | ||
Interest rate caps | Derivatives designated as accounting hedges | |||
Derivative [Line Items] | |||
Premiums paid | $ 1,400 | ||
Notional amount | $ 73,562 | $ 98,269 | |
Interest rate caps | Minimum | |||
Derivative [Line Items] | |||
Derivative, cap interest rate | 1.00% | ||
Interest rate caps | Maximum | |||
Derivative [Line Items] | |||
Derivative, cap interest rate | 3.00% | ||
Interest Rate Cap Two | |||
Derivative [Line Items] | |||
Cap rate sold, interest rate | 3.00% |
Derivative Financial Instruments - Schedule of Floating to Fixed Interest Rate Swaps (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Apr. 17, 2024 |
Apr. 16, 2024 |
Feb. 01, 2024 |
Dec. 31, 2023 |
---|---|---|---|---|---|
Derivative [Line Items] | |||||
Notional Amount | $ 1,260,740 | $ 1,786,163 | |||
Interest rate swaps | |||||
Derivative [Line Items] | |||||
Notional Amount | 1,187,178 | ||||
Derivatives not designated as accounting hedges | |||||
Derivative [Line Items] | |||||
Notional Amount | 1,020,000 | 1,020,000 | |||
Derivatives not designated as accounting hedges | Interest rate swaps | |||||
Derivative [Line Items] | |||||
Notional Amount | 1,020,000 | $ 100,000 | $ 79,000 | 1,020,000 | |
Derivatives not designated as accounting hedges | Market at Mill Creek loan | Interest rate swaps | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 11,053 | $ 11,100 | |||
Swap Fixed Rate | 3.43% | ||||
Debt Effective Rate | 5.09% | ||||
Derivatives not designated as accounting hedges | Harbor Point Parcel 3 senior construction loan 4.70% | Interest rate swaps | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 90,000 | ||||
Swap Fixed Rate | 2.75% | ||||
Debt Effective Rate | 4.82% | ||||
Notional amount, terminated | $ 180,400 | ||||
Amount paid to buy down the swap fixed rate | 3,600 | ||||
Derivatives not designated as accounting hedges | Floating rate pool of loans 2.75% | Interest rate swaps | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 330,000 | ||||
Swap Fixed Rate | 2.75% | ||||
Debt Effective Rate | 4.38% | ||||
Amount paid to buy down the swap fixed rate | $ 13,300 | ||||
Derivatives not designated as accounting hedges | Harbor Point Parcel 4 Senior Construction Loan | Interest rate swaps | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 100,000 | ||||
Swap Fixed Rate | 2.75% | ||||
Debt Effective Rate | 5.12% | ||||
Notional amount, terminated | $ 109,700 | ||||
Amount paid to buy down the swap fixed rate | 3,900 | ||||
Derivatives not designated as accounting hedges | Floating rate pool of loans | Interest rate swaps | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 300,000 | ||||
Swap Fixed Rate | 2.75% | ||||
Debt Effective Rate | 4.38% | ||||
Amount paid to buy down the swap fixed rate | $ 10,500 | ||||
Derivatives not designated as accounting hedges | Revolving credit facility and TD unsecured term loan | Interest rate swaps | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 100,000 | ||||
Swap Fixed Rate | 3.20% | ||||
Debt Effective Rate | 4.84% | ||||
Derivatives not designated as accounting hedges | Liberty Retail & Apartments loan | Interest rate swaps | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 21,000 | $ 21,000 | |||
Swap Fixed Rate | 3.43% | ||||
Debt Effective Rate | 4.93% | ||||
Derivatives not designated as accounting hedges | Senior Unsecured Term Loan 3.43% | Interest rate swaps | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 67,947 | ||||
Swap Fixed Rate | 3.43% | ||||
Debt Effective Rate | 4.98% | ||||
Derivatives designated as accounting hedges | Interest rate swaps | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 167,178 | $ 667,894 | |||
Derivatives designated as accounting hedges | Thames Street Wharf loan | Interest rate swaps | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 67,178 | ||||
Swap Fixed Rate | 0.93% | ||||
Debt Effective Rate | 2.33% | ||||
Derivatives designated as accounting hedges | M&T unsecured term loan | Interest rate swaps | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 100,000 | ||||
Swap Fixed Rate | 3.50% | ||||
Debt Effective Rate | 5.05% |
Derivative Financial Instruments - Schedule of Derivatives (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Apr. 17, 2024 |
Apr. 16, 2024 |
Dec. 31, 2023 |
---|---|---|---|---|
Derivative [Line Items] | ||||
Notional Amount | $ 1,260,740 | $ 1,786,163 | ||
Asset, fair value | 32,540 | 28,862 | ||
Liability, fair value | 0 | 0 | ||
Interest rate swaps | ||||
Derivative [Line Items] | ||||
Notional Amount | 1,187,178 | |||
Derivatives not designated as accounting hedges | ||||
Derivative [Line Items] | ||||
Notional Amount | 1,020,000 | 1,020,000 | ||
Asset, fair value | 25,321 | 20,761 | ||
Liability, fair value | 0 | 0 | ||
Derivatives not designated as accounting hedges | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Notional Amount | 1,020,000 | $ 100,000 | $ 79,000 | 1,020,000 |
Asset, fair value | 25,321 | 20,761 | ||
Liability, fair value | 0 | 0 | ||
Derivatives not designated as accounting hedges | Interest rate caps | ||||
Derivative [Line Items] | ||||
Notional Amount | 0 | 0 | ||
Asset, fair value | 0 | 0 | ||
Liability, fair value | 0 | 0 | ||
Derivatives designated as accounting hedges | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Notional Amount | 167,178 | 667,894 | ||
Asset, fair value | 6,964 | 7,141 | ||
Liability, fair value | 0 | 0 | ||
Derivatives designated as accounting hedges | Interest rate caps | ||||
Derivative [Line Items] | ||||
Notional Amount | 73,562 | 98,269 | ||
Asset, fair value | 255 | 960 | ||
Liability, fair value | $ 0 | $ 0 |
Derivative Financial Instruments - Schedule of Changes in Fair Value of Derivatives (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2024 |
Mar. 31, 2024 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Derivative [Line Items] | ||||||
Total unrealized change in fair value of interest rate derivatives | $ (967) | $ 11,100 | $ 9,098 | $ 6,870 | ||
Change in fair value of derivatives and other | (1,951) | 4,294 | 4,560 | 490 | ||
Unrealized cash flow hedge gains | 984 | $ 3,554 | 6,806 | $ (426) | 4,538 | 6,380 |
Interest rate swaps | ||||||
Derivative [Line Items] | ||||||
Total unrealized change in fair value of interest rate derivatives | (975) | 10,738 | 9,074 | 7,236 | ||
Interest rate caps | ||||||
Derivative [Line Items] | ||||||
Total unrealized change in fair value of interest rate derivatives | $ 8 | $ 362 | $ 24 | $ (366) |
Equity - Additional Information (Details) - USD ($) |
1 Months Ended | 6 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Aug. 02, 2024 |
Jul. 01, 2024 |
Jan. 02, 2024 |
Mar. 10, 2020 |
Jul. 31, 2024 |
Jun. 30, 2024 |
Dec. 31, 2023 |
Jun. 15, 2023 |
|
Class of Stock [Line Items] | ||||||||
Percentage of operating partnership held | 75.60% | 75.60% | ||||||
Preferred stock issued | $ 171,085,000 | $ 171,085,000 | ||||||
Stock repurchase program | $ 50,000,000 | |||||||
Stock repurchase program remaining amount | 37,400,000 | |||||||
Consolidated Entities Under Development Or Construction | Operating Partnership | ||||||||
Class of Stock [Line Items] | ||||||||
Ownership interest percentage in properties | $ 9,500,000 | $ 10,000,000.0 | ||||||
Class A units | ||||||||
Class of Stock [Line Items] | ||||||||
Class A units not held by company (in shares) | 21,543,776 | |||||||
LTIP Units | ||||||||
Class of Stock [Line Items] | ||||||||
Class A units not held by company (in shares) | 165,523 | |||||||
At The Market Program | Common stock | ||||||||
Class of Stock [Line Items] | ||||||||
Shares issued (in shares) | 402,429 | |||||||
Sale of stock, weighted average price per share (in dollars per share) | $ 10.97 | |||||||
Consideration received on transaction | $ 4,300,000 | |||||||
At The Market Program | Subsequent event | Common stock | ||||||||
Class of Stock [Line Items] | ||||||||
Shares issued (in shares) | 413,250 | |||||||
Sale of stock, weighted average price per share (in dollars per share) | $ 11.11 | |||||||
Consideration received on transaction | $ 4,500,000 | |||||||
The Amendments | Subsequent event | ||||||||
Class of Stock [Line Items] | ||||||||
Maximum aggregate offering price of shares to be sold (up to) | $ 196,000,000.0 | |||||||
Redeemable convertible preferred stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock dividend rate percentage | 6.75% | 6.75% | ||||||
Redeemable convertible preferred stock | At The Market Program | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock dividend rate percentage | 6.75% | |||||||
Maximum aggregate offering price of shares to be sold (up to) | $ 300,000,000.0 | |||||||
Series A Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Stock repurchased during period, shares (in shares) | 0 | |||||||
Common Class A | ||||||||
Class of Stock [Line Items] | ||||||||
Stock redeemed (in shares) | 9,286 | |||||||
Repurchase and retirement of common stock, net | $ 100,000 | |||||||
Common Class A | Subsequent event | ||||||||
Class of Stock [Line Items] | ||||||||
Stock redeemed (in shares) | 79,650 |
Equity - Schedule of Dividends and Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jun. 13, 2024 |
Feb. 20, 2024 |
Dec. 14, 2023 |
Jun. 30, 2024 |
Mar. 31, 2024 |
Jun. 30, 2023 |
Mar. 31, 2023 |
|
Class of Stock [Line Items] | |||||||
Common stock dividend declared (in dollars per share) | $ 0.205 | $ 0.205 | $ 0.195 | $ 0.19 | |||
Aggregate common stock dividends | $ 18,170 | $ 18,183 | $ 17,470 | $ 16,824 | |||
Aggregate preferred stock dividends | $ 2,887 | $ 2,887 | $ 2,887 | $ 2,887 | |||
Common Stock/Class A Units | |||||||
Class of Stock [Line Items] | |||||||
Common stock dividend declared (in dollars per share) | $ 0.205 | $ 0.205 | $ 0.195 | ||||
Aggregate common stock dividends | $ 18,272 | $ 18,183 | $ 17,233 | ||||
Series A Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock dividends declared (in dollars per share) | $ 0.421875 | $ 0.421875 | $ 0.421875 | ||||
Aggregate preferred stock dividends | $ 2,887 | $ 2,887 | $ 2,887 |
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock-based compensation expense | $ 0.8 | $ 0.3 | $ 3.2 | $ 2.4 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock granted (in shares) | 278,465 | |||
Restricted stock granted, grant date fair value (in dollars per share) | $ 10.70 | |||
Restricted stock surrendered, forfeited in period (in shares) | 8,832 | |||
Employee restricted stock award, vesting period | 2 years | |||
Nonvested restricted shares outstanding (in shares) | 309,704 | 309,704 | ||
Unrecognized compensation cost | $ 3.8 | $ 3.8 | ||
Unrecognized compensation cost, recognition period | 66 months | |||
Restricted Stock | Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Employee restricted stock award, vesting period | 3 years | |||
Restricted Stock | Non-Employee Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Non-employee restricted stock award vest grant over period | 1 year | |||
Restricted Stock | Grant Date | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 33.33% | |||
Restricted Stock | Grant Date | Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 40.00% | |||
Restricted Stock | First Anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 33.33% | |||
Restricted Stock | First Anniversary | Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 20.00% | |||
Restricted Stock | Second Anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 33.33% | |||
Restricted Stock | Second Anniversary | Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 20.00% | |||
Restricted Stock | Third Anniversary | Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 20.00% | |||
LTIP Unit Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock granted (in shares) | 125,829 | |||
Restricted stock granted, grant date fair value (in dollars per share) | $ 9.64 | |||
Nonvested restricted shares outstanding (in shares) | 75,498 | 75,498 | ||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock granted (in shares) | 50,000 | |||
Restricted stock granted, grant date fair value (in dollars per share) | $ 9.23 | |||
Restricted stock surrendered, forfeited in period (in shares) | 9,375 | |||
Nonvested restricted shares outstanding (in shares) | 151,250 | 151,250 | ||
Performance Shares | Grant Date | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Employee restricted stock award, vesting period | 6 years | |||
Restricted stock award, vesting percentage | 40.00% | |||
Performance Shares | First Anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Employee restricted stock award, vesting period | 3 years | |||
Restricted stock award, vesting percentage | 20.00% | |||
Performance Shares | Second Anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Employee restricted stock award, vesting period | 3 years | |||
Restricted stock award, vesting percentage | 20.00% | |||
Performance Shares | Third Anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 20.00% | |||
Service Conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock surrendered, forfeited in period (in shares) | 91,623 | |||
Amended and Restated 2013 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of shares reserved for issuance (in shares) | 3,400,000 | 3,400,000 | ||
Shares available for issuance (in shares) | 1,162,645 | 1,162,645 |
Fair Value of Financial Instruments - Schedule of Carrying Amounts and Fair Values of Financial Instruments Measured (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value of Financial Instruments | ||
Deferred financing costs | $ 9,400 | $ 10,400 |
Carrying Value | ||
Fair Value of Financial Instruments | ||
Indebtedness, net | 1,428,595 | 1,407,323 |
Notes receivable, net | 124,178 | 94,172 |
Interest rate swap and cap assets | 32,540 | 28,862 |
Fair Value | ||
Fair Value of Financial Instruments | ||
Indebtedness, net | 1,410,767 | 1,389,296 |
Notes receivable, net | 124,178 | 94,172 |
Interest rate swap and cap assets | $ 32,540 | $ 28,862 |
Related Party Transactions (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Related Party Transactions | |||||
Construction receivables, including retentions, net | $ 106,010,000 | $ 106,010,000 | $ 126,443,000 | ||
Segment gross profit | 48,830,000 | $ 46,563,000 | 96,926,000 | $ 89,916,000 | |
Related Party | Beatty Development Group | |||||
Related Party Transactions | |||||
Segment gross profit | 200,000 | $ 400,000 | 300,000 | $ 700,000 | |
Related Party | Construction Contracts | |||||
Related Party Transactions | |||||
Construction receivables, including retentions, net | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies - Additional Information (Details) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2024
USD ($)
note_receivable
|
Dec. 31, 2023
USD ($)
|
Jun. 30, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Commitments and Contingencies | ||||
Line of credit, performance and payment bonds | $ 8,300 | $ 6,500 | ||
Number of notes receivable | note_receivable | 5 | |||
Loans and leases receivable, commitments, variable rates | $ 23,900 | |||
Allowance related to unfunded commitments | 377 | 732 | $ 569 | $ 338 |
Other liabilities | ||||
Commitments and Contingencies | ||||
Allowance related to unfunded commitments | 400 | $ 700 | ||
Harbor Point Parcel 4 | Payment Guarantee | ||||
Commitments and Contingencies | ||||
Outstanding guarantee | 100 | |||
Senior loan | $ 32,900 |
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jul. 10, 2024 |
Jul. 01, 2024 |
Jan. 02, 2024 |
Jul. 31, 2024 |
Jun. 30, 2024 |
|
Common Class A | |||||
Subsequent Event [Line Items] | |||||
Stock redeemed (in shares) | 9,286 | ||||
Common stock | At The Market Program | |||||
Subsequent Event [Line Items] | |||||
Shares issued (in shares) | 402,429 | ||||
Sale of stock, weighted average price per share (in dollars per share) | $ 10.97 | ||||
Consideration received on transaction | $ 4,300 | ||||
Subsequent event | Common Class A | |||||
Subsequent Event [Line Items] | |||||
Stock redeemed (in shares) | 79,650 | ||||
Subsequent event | Common stock | At The Market Program | |||||
Subsequent Event [Line Items] | |||||
Shares issued (in shares) | 413,250 | ||||
Sale of stock, weighted average price per share (in dollars per share) | $ 11.11 | ||||
Consideration received on transaction | $ 4,500 | ||||
Subsequent event | Revolving credit facility | Line of Credit | |||||
Subsequent Event [Line Items] | |||||
Proceeds from lines of credit | $ 27,000 | ||||
Mezzanine loan | |||||
Subsequent Event [Line Items] | |||||
Maximum principal commitment | 115,727 | ||||
Solis North Creek | Mezzanine loan | Subsequent event | |||||
Subsequent Event [Line Items] | |||||
Maximum principal commitment | $ 27,000 | ||||
Unused commitment fee percentage | 4.50% | ||||
Minimum interest | $ 8,900 | ||||
Solis North Creek | Mezzanine loan | Subsequent event | First 24 Months | |||||
Subsequent Event [Line Items] | |||||
Interest rate | 12.00% | ||||
Solis North Creek | Mezzanine loan | Subsequent event | Twenty Four and Thirty Six Months | |||||
Subsequent Event [Line Items] | |||||
Interest rate | 9.00% | ||||
Solis North Creek | Mezzanine loan | Subsequent event | Thirty Six Months Through Maturity | |||||
Subsequent Event [Line Items] | |||||
Interest rate | 12.00% | ||||
Solis Gainesville II | Mezzanine loan | |||||
Subsequent Event [Line Items] | |||||
Maximum principal commitment | $ 19,595 | ||||
Interest rate | 14.00% | ||||
Solis Gainesville II | Mezzanine loan | Subsequent event | Financing Receivable Effective Period, Period One | |||||
Subsequent Event [Line Items] | |||||
Preference rate | 14.00% | ||||
Solis Gainesville II | Mezzanine loan | Subsequent event | Financing Receivable Effective Period, Period Two | |||||
Subsequent Event [Line Items] | |||||
Preference rate | 6.00% | ||||
Solis City Park II | Mezzanine loan | |||||
Subsequent Event [Line Items] | |||||
Maximum principal commitment | $ 20,594 | ||||
Interest rate | 13.00% | ||||
Solis City Park II | Mezzanine loan | Subsequent event | |||||
Subsequent Event [Line Items] | |||||
Maximum principal commitment | $ 25,800 | ||||
Minimum interest | $ 5,200 |
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