Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 09, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-15663 | |
Entity Registrant Name | AMERICAN REALTY INVESTORS, INC. | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 75-2847135 | |
Entity Address, Address Line One | 1603 Lyndon B. Johnson Freeway | |
Entity Address, Address Line Two | Suite 800 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75234 | |
City Area Code | 469 | |
Local Phone Number | 522-4200 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | ARL | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,152,043 | |
Entity Central Index Key | 0001102238 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Real estate | $ 502,031 | $ 493,821 |
Cash and cash equivalents | 47,203 | 113,445 |
Restricted cash | 36,145 | 108,883 |
Short-term investments | 134,185 | 119,787 |
Notes receivable (including $76,935 at September 30, 2023 and December 31, 2022 from related parties) | 145,715 | 139,609 |
Investment in unconsolidated joint ventures | 10,256 | 28,226 |
Receivable from related parties, net | 92,385 | 108,184 |
Other assets (including $3,605 and $4,663 at September 30, 2023 and December 31, 2022, respectively, from related parties) | 94,358 | 85,524 |
Total assets | 1,062,278 | 1,197,479 |
Liabilities: | ||
Mortgages and other notes payable | 182,428 | 188,004 |
Bonds payable | 0 | 129,218 |
Accounts payable and other liabilities (including $1,025 at September 30, 2023 and $599 at December 31, 2022 from related parties) | 46,864 | 53,100 |
Accrued interest | 2,480 | 5,198 |
Deferred revenue | 9,791 | 9,791 |
Total liabilities | 241,563 | 385,311 |
Shareholders' Equity: | ||
Preferred stock, Series A, $2.00 par value, 15,000,000 shares authorized, 1,800,614 shares issued and outstanding | 1,801 | 1,801 |
Common stock, $0.01 par value, 100,000,000 shares authorized; 16,152,043 shares issued and outstanding | 162 | 162 |
Additional paid-in capital | 62,090 | 62,090 |
Retained earnings | 555,525 | 549,434 |
Total shareholders' equity | 619,578 | 613,487 |
Noncontrolling interests | 201,137 | 198,681 |
Total equity | 820,715 | 812,168 |
Total liabilities and equity | $ 1,062,278 | $ 1,197,479 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Notes receivable | $ 145,715 | $ 139,609 |
Other assets | 94,358 | 85,524 |
Accounts payable and other liabilities | $ 46,864 | $ 53,100 |
Preferred stock, par value (in dollars per share) | $ 2 | $ 2 |
Preferred stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, issued (in shares) | 1,800,614 | 1,800,614 |
Preferred stock, outstanding (in shares) | 1,800,614 | 1,800,614 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 16,152,043 | 16,152,043 |
Common stock, outstanding (in shares) | 16,152,043 | 16,152,043 |
Related Party | ||
Notes receivable | $ 76,935 | $ 76,935 |
Other assets | 3,605 | 4,663 |
Accounts payable and other liabilities | $ 1,025 | $ 599 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues: | ||||
Rental revenues (including $232 and $223 for the three months ended September 30, 2023 and 2022, respectively, and $731 and $702 for the nine months ended September 30, 2023 and 2022, respectively, from related parties) | $ 11,838 | $ 7,570 | $ 34,236 | $ 22,310 |
Other income | 688 | 749 | 2,217 | 1,925 |
Total revenue | 12,526 | 8,319 | 36,453 | 24,235 |
Expenses: | ||||
Property operating expenses (including $97 and $110 for the three months ended September 30, 2023 and 2022, respectively, and $296 and $337 for the nine months ended September 30, 2023 and 2022, respectively, from related parties) | 7,443 | 4,701 | 20,580 | 12,541 |
Depreciation and amortization | 3,313 | 2,193 | 9,615 | 6,840 |
General and administrative (including $856 and $1,288 for the three months ended September 30, 2023 and 2022, respectively, and $3,095 and $3,368 for the nine months ended September 30, 2023 and 2022, respectively, from related parties) | 1,579 | 3,042 | 8,424 | 7,956 |
Advisory fee to related party | 2,295 | 1,571 | 6,883 | 7,614 |
Total operating expenses | 14,630 | 11,507 | 45,502 | 34,951 |
Net operating loss | (2,104) | (3,188) | (9,049) | (10,716) |
Interest income (including $4,854 and $4,140 for the three months ended September 30, 2023 and 2022, respectively, and $14,165 and $11,134 for the nine months ended September 30, 2023 and 2022, respectively, from related parties) | 9,008 | 7,035 | 25,201 | 19,937 |
Interest expense | (1,954) | (4,044) | (7,574) | (13,301) |
Gain on foreign currency transactions | 0 | 1,533 | 993 | 19,437 |
Loss on early extinguishment of debt | 0 | (1,166) | (1,710) | (2,805) |
Equity in income from unconsolidated joint ventures | 234 | 464,143 | 2,946 | 471,385 |
(Loss) gain on sales or write-down of assets | (32) | 1,539 | 156 | 16,580 |
Income tax provision | (1,127) | (81,548) | (2,416) | (81,616) |
Net income | 4,025 | 384,304 | 8,547 | 418,901 |
Net income attributable to noncontrolling interests | (1,037) | (82,015) | (2,456) | (88,986) |
Net income attributable to common shares | $ 2,988 | $ 302,289 | $ 6,091 | $ 329,915 |
Earnings per share - basic and diluted | ||||
Basic (in dollars per share) | $ 0.18 | $ 18.72 | $ 0.38 | $ 20.43 |
Diluted (in dollars per share) | $ 0.18 | $ 18.72 | $ 0.38 | $ 20.43 |
Weighted average common shares used in computing earnings per share | ||||
Basic (in shares) | 16,152,043 | 16,152,043 | 16,152,043 | 16,152,043 |
Diluted (in shares) | 16,152,043 | 16,152,043 | 16,152,043 | 16,152,043 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Rental revenues | $ 11,838 | $ 7,570 | $ 34,236 | $ 22,310 |
Property operating expenses | 7,443 | 4,701 | 20,580 | 12,541 |
General and administrative | 1,579 | 3,042 | 8,424 | 7,956 |
Interest income | 9,008 | 7,035 | 25,201 | 19,937 |
Related Party | ||||
Rental revenues | 232 | 223 | 731 | 702 |
Property operating expenses | 97 | 110 | 296 | 337 |
General and administrative | 856 | 1,288 | 3,095 | 3,368 |
Interest income | $ 4,854 | $ 4,140 | $ 14,165 | $ 11,134 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Total Shareholders' Equity | Preferred Stock | Common Stock | Paid-in Capital | Retained Earnings | Noncontrolling Interest |
Balance at beginning at Dec. 31, 2021 | $ 336,851 | $ 240,138 | $ 1,801 | $ 162 | $ 62,090 | $ 176,085 | $ 96,713 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 418,901 | 329,915 | 329,915 | 88,986 | |||
Balance at ending at Sep. 30, 2022 | 755,752 | 570,053 | 1,801 | 162 | 62,090 | 506,000 | 185,699 |
Balance at beginning at Jun. 30, 2022 | 371,448 | 267,764 | 1,801 | 162 | 62,090 | 203,711 | 103,684 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 384,304 | 302,289 | 302,289 | 82,015 | |||
Balance at ending at Sep. 30, 2022 | 755,752 | 570,053 | 1,801 | 162 | 62,090 | 506,000 | 185,699 |
Balance at beginning at Dec. 31, 2022 | 812,168 | 613,487 | 1,801 | 162 | 62,090 | 549,434 | 198,681 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 8,547 | 6,091 | 6,091 | 2,456 | |||
Balance at ending at Sep. 30, 2023 | 820,715 | 619,578 | 1,801 | 162 | 62,090 | 555,525 | 201,137 |
Balance at beginning at Jun. 30, 2023 | 816,690 | 616,590 | 1,801 | 162 | 62,090 | 552,537 | 200,100 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 4,025 | 2,988 | 2,988 | 1,037 | |||
Balance at ending at Sep. 30, 2023 | $ 820,715 | $ 619,578 | $ 1,801 | $ 162 | $ 62,090 | $ 555,525 | $ 201,137 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flow From Operating Activities: | ||
Net income | $ 8,547 | $ 418,901 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Gain on sale or write down of assets | (156) | (16,580) |
Gain on foreign currency transactions | (993) | (19,437) |
Loss on early extinguishment of debt | 1,710 | 2,805 |
Depreciation and amortization | 10,518 | 9,409 |
Provision (recovery) of bad debts | 875 | (3,126) |
Equity in income from unconsolidated joint ventures | (2,946) | (471,385) |
Distribution of income from unconsolidated joint ventures | 0 | 3,700 |
Changes in assets and liabilities, net of dispositions: | ||
Other assets | (11,336) | (4,925) |
Related party receivables | (4,369) | (6,630) |
Accrued interest | (1,872) | (4,652) |
Accounts payable and other liabilities | 7,868 | 85,046 |
Net cash provided by (used in) operating activities | 7,846 | (6,874) |
Cash Flow From Investing Activities: | ||
Collection of notes receivable | 394 | 2,726 |
Originations and advances on notes receivable | (6,500) | (2,118) |
Purchase of short-term investments | (89,566) | (99,350) |
Redemption of short-term investments | 75,168 | 40,250 |
Development and renovation of real estate | (9,876) | (11,834) |
Deferred leasing costs | (290) | (1,163) |
Proceeds from sale of assets | 188 | 44,591 |
Distribution from unconsolidated joint venture | 20,916 | 181,748 |
Net cash (used in) provided by investing activities | (9,566) | 154,850 |
Cash Flow From Financing Activities: | ||
Payments on mortgages, other notes and bonds payable | (136,809) | (70,170) |
Debt extinguishment costs | (435) | (1,354) |
Deferred financing costs | (16) | 0 |
Net cash used in financing activities | (137,260) | (71,524) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (138,980) | 76,452 |
Cash, cash equivalents and restricted cash, beginning of period | 222,328 | 72,734 |
Cash, cash equivalents and restricted cash, end of period | $ 83,348 | $ 149,186 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization As used herein, the terms “the Company”, “we”, “our” or “us” refer to American Realty Investors, Inc., a Nevada corporation, which was formed in 1999. Our common stock is listed on the New York Stock Exchange (“NYSE”) under the symbol (“ARL”) and over 90% of our stock is owned by related party entities. Our primary business is the acquisition, development and ownership of income-producing multifamily and commercial properties. In addition, we opportunistically acquire land for future development in in-fill or high-growth suburban markets. From time to time and when we believe it appropriate to do so, we will sell land and income-producing properties. We generate revenues by leasing apartment units to residents, and leasing office, industrial and retail space to various for-profit businesses as well as certain local, state and federal agencies. We also generate income from the sale of land. We own approximately 78.4% of Transcontinental Realty Investors, Inc. ("TCI") and substantially all of our operations are conducted through TCI, whose common stock is traded on the NYSE under the symbol “TCI”. Accordingly, we include TCI’s financial results in our consolidated financial statements. Substantially all of TCI's assets are held by its wholly-owned subsidiary, Southern Properties Capital Ltd. (“SPC”), which was formed for the purpose of raising funds by issuing non-convertible bonds that were listed on the Tel Aviv Stock Exchange ("TASE"). At September 30, 2023, our portfolio of properties consisted of: ● Four office buildings comprising in aggregate of approximately 1,056,793 square feet; ● Fourteen multifamily properties, owned directly by us, comprising of 2,328 units; and ● Appr oximately 1,858 ac res of developed and undeveloped land. Our day to day operations are managed by Pillar Income Asset Management, Inc. (“Pillar”). Pillar's duties include, but are not limited to, locating, evaluating and recommending real estate and real estate-related investment opportunities and arranging debt and equity financing with third party lenders and investors. We have no employees; all of our services are performed by Pillar employees. Three of our commercial properties are managed by Regis Realty Prime, LLC (“Regis”). Regis provides leasing, construction management and brokerage services. Our multifamily properties and one of our commercial properties are managed by outside management companies. Pillar and Regis are considered to be related parties (See Note 14 – Related Party Transactions). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading. In the opinion of management, all adjustments (consisting of normal recurring matters) considered necessary for a fair presentation have been included. Certain prior year amounts have been reclassified to conform with the current year presentation. These reclassifications had no effect on the reported results of operation. An adjustment has been made to reclassify $2,447 and $5,746 interest expense to related parties for the three and nine months ended September 30, 2022, respectively, from interest expense to interest income on the consolidated statements of operations. The consolidated balance sheet at December 31, 2022 was derived from the audited consolidated financial statements at that date, but does not include all of the information and disclosures required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022. Certain 2022 consolidated financial statement amounts have been reclassified to conform to the current presentation. We consolidate entities in which we are considered to be the primary beneficiary of a variable interest entity (“VIE”) or have a majority of the voting interest of the entity. We have determined that we are a primary beneficiary of the VIE when we have (i) the power to direct the activities of a VIE that most significantly impacts its economic performance, and (ii) the obligations to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In determining whether we are the primary beneficiary, we consider qualitative and quantitative factors, including ownership interest, management representation, ability to control decision and other contractual rights. We account for entities in which we have less than a controlling financial interest or entities where we are not deemed to be the primary beneficiary under the equity method of accounting. Accordingly, we include our share of the net earnings or losses of these entities in our results of operations. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Earnings Per Share (“EPS”) is computed by dividing net income available to common shares by the weighted-average number of common shares outstanding during the period. Shares issued during the period are weighted for the portion of the period that they were outstanding. The following table details our basic and diluted earnings per common share calculation: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net income $ 4,025 $ 384,304 $ 8,547 $ 418,901 Net income attributable to noncontrolling interests (1,037) (82,015) (2,456) (88,986) Net income attributable to common shares $ 2,988 $ 302,289 $ 6,091 $ 329,915 Weighted-average common shares outstanding — basic and diluted 16,152,043 16,152,043 16,152,043 16,152,043 EPS - attributable to common shares — basic and diluted $ 0.18 $ 18.72 $ 0.38 $ 20.43 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following presents the schedule of interest paid and other supplemental cash flow information: Nine Months Ended September 30, 2023 2022 Cash paid for interest $ 9,432 $ 22,211 Cash - beginning of period Cash and cash equivalents $ 113,445 $ 50,748 Restricted cash 108,883 21,986 $ 222,328 $ 72,734 Cash - end of period Cash and cash equivalents $ 47,203 $ 131,236 Restricted cash 36,145 17,950 $ 83,348 $ 149,186 Payments on mortgages, other notes and bonds payable Payments on mortgages and other notes payable $ 5,633 $ 26,411 Payments on bonds payable 131,176 43,759 $ 136,809 $ 70,170 The following is a schedule of noncash investing and financing activities: Nine Months Ended September 30, 2023 2022 Property acquired in exchange for reduction in related party receivable $ 6,064 $ — Distribution from joint venture applied to Earn Out Obligation $ — $ 34,159 |
Operating Segments
Operating Segments | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating SegmentsOur segments are based on the internal reporting that we review for operational decision-making purposes. We operate in two reportable segments: (i) the acquisition, development, ownership and management of multifamily properties and (ii) the acquisition, ownership and management of commercial properties. The services for our multifamily segment include rental of apartments and other tenant services, including parking and storage space rental. Asset information by segment is not reported because we do not use this measure to assess performance or make decisions to allocate resources. Therefore, depreciation and amortization expense is not allocated among segments. General and administrative expenses, advisory fees, interest income and interest expense are not included in segment profit as our internal reporting addresses these items on a corporate level. The following table presents our reportable segments for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Multifamily Segment Revenues $ 7,899 $ 2,850 $ 22,930 $ 9,024 Operating expenses (4,811) (1,966) (12,997) (5,395) Profit from segment 3,088 884 9,933 3,629 Commercial Segment Revenues 3,939 4,720 11,306 13,286 Operating expenses (2,632) (2,735) (7,583) (7,146) Profit from segment 1,307 1,985 3,723 6,140 Total profit from segments $ 4,395 $ 2,869 $ 13,656 $ 9,769 The table below reflects the reconciliation of total profit from segments to net income for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Total profit from segments $ 4,395 $ 2,869 $ 13,656 $ 9,769 Other non-segment items of income (expense) Depreciation and amortization (3,313) (2,193) (9,615) (6,840) General and administrative (1,579) (3,042) (8,424) (7,956) Advisory fee to related party (2,295) (1,571) (6,883) (7,614) Other income 688 749 2,217 1,925 Interest income 9,008 7,035 25,201 19,937 Interest expense (1,954) (4,044) (7,574) (13,301) Gain on foreign currency transaction — 1,533 993 19,437 Loss on early extinguishment of debt — (1,166) (1,710) (2,805) Income from unconsolidated joint ventures 234 464,143 2,946 471,385 (Loss) gain on sales or write-down of assets (32) 1,539 156 16,580 Income tax provision (1,127) (81,548) (2,416) (81,616) Net income $ 4,025 $ 384,304 $ 8,547 $ 418,901 |
Lease Revenue
Lease Revenue | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Lease Revenue | Lease RevenueWe lease our multifamily properties and commercial properties under agreements that are classified as operating leases. Our multifamily property leases generally include minimum rents and charges for ancillary services. Our commercial property leases generally include minimum rents and recoveries for property taxes and common area maintenance. Minimum rental revenues are recognized on a straight-line basis over the terms of the related leases. The following table summarizes the components of our rental revenue for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Fixed component $ 11,338 $ 6,977 $ 32,968 $ 20,854 Variable component 500 593 1,268 1,456 $ 11,838 $ 7,570 $ 34,236 $ 22,310 The following table summarizes the future rental payments that are payable to us from non-cancelable leases. The table excludes multifamily leases, which typically have a term of one-year or less: 2023 $ 9,747 2024 10,823 2025 10,358 2026 10,056 2027 9,787 Thereafter 22,444 $ 73,215 |
Real Estate Activity
Real Estate Activity | 9 Months Ended |
Sep. 30, 2023 | |
Real Estate [Abstract] | |
Real Estate Activity | Real Estate Activity Below is a summary of our real estate as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Land $ 108,993 $ 108,933 Building and improvements 371,973 359,904 Tenant improvements 17,463 25,611 Construction in progress 68,512 65,427 Total cost 566,941 559,875 Less accumulated depreciation (64,910) (66,054) Total real estate $ 502,031 $ 493,821 On March 15, 2023, we entered into a development agreement with Pillar to build a 240 unit multifamily property in Lake Wales, Florida that is expected to be completed in 2025 for a total cost of approximately $55,330. The cost of construction will be funded in part by a $33,000 construction loan ( See Note 12 - Mortgages and Other Notes Payable ) . The development agreement provides for a $1,637 fee that will be paid to Pillar over the construction period. As of September 30, 2023, we have incurred a total of $12,337 in development costs, including $334 in development fees. Gain on sale or write-down of assets, net for the three and nine months ended September 30, 2023 and 2022 consists of the following: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Land(1) $ — $ — $ 188 $ 4,752 Multifamily Properties(2) — 1,539 — 11,142 Commercial Properties(3) — — — 890 Other (32) — (32) (204) $ (32) $ 1,539 $ 156 $ 16,580 (1) Includes the gain on the sale of lots related to our investment in Windmill Farms, Mercer Crossing and other land holdings. (2) On January 14, 2022, we sold Toulon, a 240 unit multifamily property in Gautier, Mississippi for $26,750, resulting in a gain on sale of $9,364. We used the proceeds to pay off the $14,740 mortgage note payable on the property and for general corporate purposes. On September 16, 2022, in connection with a sale of properties by VAA (See Note 10 - Investment in Unconsolidated Joint Ventures), we sold Sugar Mill Phase III, a 72 unit multifamily property in Baton Rouge, Louisiana for $11,800, resulting in a gain on sale of $1,871. We used the proceeds to pay off the $9,551 mortgage note payable on the property and for general corporate purposes. (3) On May 17, 2022, we sold Fruitland Park, a 6,722 square foot commercial building in Fruitland Park, Florida for $750, resulting in a gain on sale of $667. We used the proceeds for general corporate purposes. |
Short-term Investments
Short-term Investments | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-term Investments | Short-term Investments We have investments in variable denominated floating rate notes and short-term commercial paper with maturities of less than nine months. The average interest rate on the investments was 5.29% and 4.67% at September 30, 2023 and December 31, 2022, respectively. |
Notes Receivable
Notes Receivable | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Notes Receivable | Notes Receivable The following table summarizes our notes receivable as of September 30, 2023 and December 31, 2022: Carrying value Property/Borrower September 30, 2023 December 31, 2022 Interest Rate Maturity Date ABC Land and Development, Inc. $ 4,408 $ 4,408 9.50 % 6/30/26 ABC Paradise, LLC 1,210 1,210 9.50 % 6/30/26 Autumn Breeze(1) 2,157 2,326 5.00 % 7/1/25 Bellwether Ridge(1) 3,798 3,798 5.00 % 11/1/26 Dominion at Mercer Crossing(2) 6,354 — 9.25 % 6/7/28 Forest Pines(1) 6,472 6,472 5.00 % 5/1/24 Legacy Pleasant Grove 496 496 12.00 % 10/23/24 McKinney Ranch 3,926 3,926 6.00 % 9/15/24 One Realco Land Holding, Inc. 1,728 1,728 9.50 % 6/30/26 Parc at Ingleside(1) 3,759 3,759 5.00 % 11/1/26 Parc at Opelika Phase II(1)(3) 3,190 3,190 10.00 % 1/13/23 Parc at Windmill Farms(1)(3) 7,886 7,886 5.00 % 11/1/22 Phillips Foundation for Better Living, Inc.(4) 182 182 12.00 % 3/31/24 Plum Tree(1) 1,767 1,767 5.00 % 4/26/26 Polk County Land 3,000 3,000 9.50 % 6/30/26 Riverview on the Park Land, LLC 1,045 1,045 9.50 % 6/30/26 Spartan Land 5,907 5,907 12.00 % 1/16/25 Spyglass of Ennis(1) 5,179 5,258 5.00 % 11/1/24 Steeple Crest(1) 6,498 6,498 5.00 % 8/1/26 Unified Housing Foundation(4)(5) 20,325 20,325 12.00 % 6/30/28 Unified Housing Foundation(4)(5) 10,096 10,096 12.00 % 3/31/24 Unified Housing Foundation(4)(5) 6,990 6,990 12.00 % 3/31/25 Unified Housing Foundation(4)(5) 3,615 3,615 12.00 % 5/31/28 Unified Housing Foundation(4)(5) 27,477 27,477 12.00 % 12/31/32 Unified Housing Foundation(4)(5) 6,521 6,521 12.00 % 3/31/24 Unified Housing Foundation(4)(5) 1,549 1,549 12.00 % 4/30/24 Unified Housing Foundation(4)(5) 180 180 12.00 % 6/30/24 $ 145,715 $ 139,609 (1) The note is convertible, at our option, into a 100% ownership interest in the underlying development property, and is collateralized by the underlying development property. (2) The note has an interest rate of prime plus 1.00%. (3) We are working with the borrower to extend the maturity and/or exercise our conversion option. (4) The borrower is deemed to be a related party due to our significant investment in the performance of the collateral secured by the notes receivable. |
Investment in Unconsolidated Jo
Investment in Unconsolidated Joint Ventures | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Joint Ventures | Investment in Unconsolidated Joint Ventures Victory Abode Apartments, LLC On November 16, 2018 , our SPC subsidiary formed the Victory Abode Apartments, LLC ("VAA"), a joint venture with the Macquarie Group (“Macquarie”). VAA was formed as a result of a sale of the 50% ownership interest in a portfolio of multifamily properties owned by us in exchange for a 50% voting interest in VAA a nd a note payable. In connection with the formation of VAA, ten of the initial properties were subject to an earn-out provision ("Earn Out") that provided for a remeasurement of value after a two-year period following the completion of construction. Upon the formation of VAA, we recorded an initial liability ("Earn Out Obligation") of $10,000 for the advance on the Earn Out that we received from Macquarie. Upon remeasurement, the Earn Out Obligation was determined to be approximately $39,600. In accordance with the joint venture operating agreement, the Earn Out Obligation was paid from our share of distributions from VAA in 2022. On September 16, 2022, VAA sold 45 of its properties (“VAA Sale Portfolio”) for $1,810,700, resulting in a gain on sale of $738,444 to the joint venture. In connection with the sale, we received an initial distribution of $182,848 from VAA, which included the payment of the remaining balance of the Earn Out Obligation. On November 1, 2022, we received an additional distribution from VAA, which included the full operational control of the remaining seven properties of VAA (“VAA Holdback Portfolio”) (See Note 11 - Acquisitions) and a cash payment of $204,036. On March 23, 2023, we received $17,976 from VAA, which represented the remaining distribution of the proceeds from the sale of the VAA Sale Portfolio. We used our share of the proceeds from the sale of the VAA Sale Portfolio to invest in short-term investments and real estate, pay down our debt and for general corporate purposes. Gruppa Florentina, LLC We also own a 20% ownership interest in Gruppa Florentina, LLC ("Milano"), which operates several pizza parlors in Central and Northern California. Milano also has 23 franchised locations, and two operating in Texas under the trade name Angelo & Vito’s Pizzerias. The following is a summary of our investment in unconsolidated joint ventures: September 30, 2023 December 31, 2022 Assets (1) Real estate $ 13,886 $ 13,140 Cash, cash equivalents and restricted cash 20,449 66,364 Other assets 56,381 35,938 Total assets $ 90,716 $ 115,442 Liabilities and Partners' Capital (1) Liabilities from discontinued operations $ — $ 8,824 Mortgage notes payable 13,444 16,267 Other liabilities 28,562 13,412 Our share of partners' capital 10,256 27,973 Outside partner's capital 38,454 48,966 Total liabilities and partners' capital $ 90,716 $ 115,442 Investment in unconsolidated joint ventures Our share of partners' capital $ 10,256 $ 27,973 Basis adjustment (2) — 253 Total investment in unconsolidated joint ventures $ 10,256 $ 28,226 (1) These amounts include the assets of VAA of $1,447 and $52,404 at September 30, 2023 and December 31, 2022, respectively, and liabilities of VAA of $93 and $10,812 at September 30, 2023 and December 31, 2022, respectively. (2) We amortize the difference between the cost of our investments in unconsolidated joint ventures and the book value of our underlying equity into income on a straight-line basis consistent with the lives of the underlying assets. The following is a summary of income from our investments in unconsolidated joint ventures: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue (1) Rental revenue $ — $ 3,342 $ — $ 11,305 Other revenue 22,268 15,417 49,532 41,119 Total revenue 22,268 18,759 49,532 52,424 Expenses (2) Operating expenses 16,581 17,335 38,803 53,866 Depreciation and amortization 534 1,177 1,177 3,499 Interest 76 5,368 123 17,396 Total expenses 17,191 23,880 40,103 74,761 Income (loss) from continuing operations 5,077 (5,121) 9,429 (22,337) Income from discontinued operations (3) (78) 704,700 743 712,648 Net income $ 4,999 $ 699,579 $ 10,172 $ 690,311 Equity in income from unconsolidated joint ventures $ 234 $ 464,143 $ 2,946 $ 471,385 (1) These amounts include revenue of VAA of $3,591 and $11,932 during the three and nine months ended September 30, 2022. (2) These amounts include expenses of VAA of $9,003 and $35,668 during the three and nine months ended September 30, 2022, respectively. (3) These amounts represent the net (expense) income of the VAA Sale Portfolio . |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions On November 1, 2022, we acquired the remaining 50% ownership interest in the VAA Holdback Portfolio that we did not previously own through a distribution from VAA (See Note 10 – Investment in Unconsolidated Joint Ventures). Prior to the acquisition, we had accounted for the VAA Holdback Portfolio under the equity method of accounting as part of our investment in VAA. The acquisition was completed in order to obtain 100% ownership and control over this well positioned portfolio of multifamily residential properties in southern United States. The VAA Holdback Portfolio consisted of the following properties: Property Location Units Blue Lake Villas Waxahachie, TX 186 Blue Lake Villas Phase II Waxahachie, TX 70 Northside on Travis Sherman, TX 200 Parc at Denham Springs Denham Spring, LA 224 Residences at Holland Lake Weatherford, TX 208 Villas of Park West I Pueblo, CO 148 Villas of Park West II Pueblo, CO 112 1,148 The following is a summary of the preliminary allocation of the fair value of the VAA Holdback Portfolio: Real estate $ 219,500 Other assets 4,843 Total assets acquired 224,343 Mortgage notes payable 70,330 Accounts payable and other liabilities 1,624 Accrued interest 190 Total liabilities assumed 72,144 Fair value of acquired net assets (100% ownership) $ 152,199 We have determined that the purchase price represented the fair value of the additional ownership interest in the VAA Holdback Portfolio that was acquired. Fair value of existing ownership interest (at 50% ownership) $ 219,500 Carrying value of investment 146,313 Gain on remeasurement of assets $ 73,187 From November 1, 2022 , we have included the VAA Holdback Portfolio in our consolidated financial statements. |
Mortgages and Other Notes Payab
Mortgages and Other Notes Payable | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Mortgages and Other Notes Payable | Mortgages and Other Notes Payable The following table summarizes our mortgages and other notes payable as of September 30, 2023 and December 31, 2022: Carrying Value Interest Maturity Property/ Entity September 30, 2023 December 31, 2022 770 South Post Oak $ 11,248 $ 11,406 4.40 % 6/1/2025 Athens(1) — 1,155 4.00 % 8/28/2023 Blue Lake Villas(2) 9,546 9,673 3.15 % 11/1/2055 Blue Lake Villas Phase II(2) 3,368 3,424 2.85 % 6/1/2052 Chelsea 7,749 7,875 3.40 % 12/1/2050 EQK Portage 3,350 3,350 10.00 % 11/13/2024 Forest Grove 7,023 7,128 3.75 % 5/5/2024 Landing Bayou 13,971 14,161 3.50 % 9/1/2053 Legacy at Pleasant Grove 12,798 13,039 3.60 % 4/1/2048 New Concept Energy 3,542 3,542 6.00 % 9/30/2025 Northside on Travis(2) 11,460 11,656 2.50 % 2/1/2053 Parc at Denham Springs(2) 16,484 16,737 3.75 % 4/1/2051 Parc at Denham Springs Phase II 15,654 15,789 4.05 % 2/1/2060 RCM HC Enterprises 5,086 5,086 5.00 % 12/31/2024 Residences at Holland Lake(3) 10,474 10,622 3.60 % 3/1/2053 Villas at Bon Secour 19,119 19,410 3.08 % 9/1/2031 Villas of Park West I(2) 9,230 9,373 3.04 % 3/1/2053 Villas of Park West II(2) 8,377 8,504 3.18 % 3/1/2053 Vista Ridge 9,553 9,674 4.00 % 8/1/2053 Windmill Farms(4) 4,396 6,400 7.75 % 2/28/2024 $ 182,428 $ 188,004 (1) On August 28, 2023, we paid off the loan. (2) On November 1, 2022, we agreed to assume the mortgage note payable from our joint venture in connection with the acquisition of the underlying property (See Note 11 - Acquisitions) and are in the process of obtaining lender approval of the assumption. (3) On October 16, 2023, we received approval from the lender to assume the loan on the property that we acquired from our joint venture (See Note 11 - Acquisitions). (4) On February 28, 2023, we extended the maturity of the loan to February 28, 2024 and an interest rate of 7.75%. Int erest payable at September 30, 2023 and December 31, 2022, was $2,480 and $2,004, respectively. We capitalized interest of $0 and $1,048 during the three months ended September 30, 2023 and 2022 , respectively, and $642 and $2,651 during the nine months ended September 30, 2023 and 2022, respectively. On March 15, 2023 , we entered into a $33,000 construction loan to finance the development of Lake Wales (See Note 7 - Real Estate Activity) that bears interest at the Secured Overnight Financing Rate ("SOFR") plus 3% and matures on March 15, 2026 , with two one-year extension options. As of September 30, 2023 , no advances have been drawn on the loan. As of September 30, 2023 , we were in compliance with all of our loan covenants except for the minimum debt service coverage ratio (“DSCR”) for the loan on 770 South Post Oak. As a result, the lender requires us to lock the surplus cash flow of the property into a designated deposit account controlled by them, until we are in compliance with the DSCR for a period of two consecutive quarters. |
Bonds Payable
Bonds Payable | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Bonds Payable | Bonds Payable We have issued nonconvertible bonds ("Bonds") through SPC, which were traded on the TASE. The Bonds were denominated in New Israeli Shekels ("NIS") and provided semiannual principal and interest payments through maturity. T he Bonds were subject to a number of covenants, which included restrictions on the distribution of cash from SPC. In connection with the Bonds, we incurred a gain on foreign currency transactions of $0 and $1,533 for the three months ended September 30, 2023 and 2022, respectively, and $993 and $19,437 for the nine months ended September 30, 2023 and 2022, respectively. The outstanding balance of our Bonds at December 31, 2022 was as follows: Bond Issuance Amount Interest Rate Maturity Series A Bonds(1) $ 28,971 7.30 % 7/31/23 Series B Bonds(1) 35,806 6.80 % 7/31/25 Series C Bonds(2) 66,546 4.65 % 1/31/23 131,323 Less unamortized deferred issuance costs (2,105) $ 129,218 (1) The bonds were collateralized by the assets of SPC. (2) The bonds were collateralized by a trust deed on Browning Place, a 625,297 square foot office building in Dallas, Texas. On January 31, 2023, we completed our scheduled bond payment, which included the full repayment of the Series C bonds. On May 4, 2023, we paid off the remaining balances of the Series A and Series B Bonds and withdrew from the TASE. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions We engage in certain services and business transactions with related parties, including but not limited to, the rent of office space, leasing services, asset management, administrative services, and the acquisition and dispositions of real estate. Transactions involving related parties cannot be presumed to be carried out on an arm’s length basis due to the absence of free market forces that naturally exist in business dealings between two or more unrelated entities. Related party transactions may not always be favorable to our business and may include terms, conditions and agreements that are not necessarily beneficial to, or in our best interest. Pillar and Regis are wholly owned by a subsidiary of May Realty Holdings, Inc., which owns appro ximately 90.8% of the Company. Pillar is compensated for advisory services in accordance with an agreement and development services in accordance with a project specific agreement. Regis receives property management fees and leasing commissions in accordance with the terms of its property-level management agreement. In addition, Regis is entitled to receive real estate brokerage commissions in accordance with the terms of a non-exclusive brokerage agreement. Rental income includes $232 and $223 for the three months ended September 30, 2023 and 2022, respectively, and $731 and $702 for the nine months ended September 30, 2023 and 2022 , respectively, for office space leased to Pillar and Regis. Property operating expense includes $97 and $110 for the three months ended September 30, 2023 and 2022, respectively, and $296 and $337 for the nine months ended September 30, 2023 and 2022 , respectively, for management fees on commercial properties payable to Regis. General and administrative expense includes $856 and $1,288 for the three months ended September 30, 2023 and 2022, respectively, and $3,095 and $3,368 for the nine months ended September 30, 2023 and 2022 , respectively, for employee compensation and other reimbursable costs payable to Pillar. Advisory fees paid to Pillar were $2,295 and $1,571 for the three months ended September 30, 2023 and 2022, respectively, and $6,883 and $7,614 for the nine months ended September 30, 2023 and 2022 , respectively. Notes receivable include amounts held by UHF (See Note 9 – Notes Receivable). UHF is deemed to be a related party due to our significant investment in the performance of the collateral secured by the notes receivable. In addition, we have receivables from Pillar and other related parties. Related party receivables, net represents the net amount outstanding from Pillar for loans and unreimbursed fees, expenses and costs as provided above. Interest income on these notes and related party receivables was $4,854 and $4,140 for the three months ended September 30, 2023 and 2022, respectively, and $14,165 and $11,134 for the nine months ended September 30, 2023 and 2022 , respectively. |
Noncontrolling Interests
Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests The noncontrolling interest represents the third party ownership interest in TCI and Income Opportunity Realty Investors, Inc. ("IOR"). We owned 78.4% of TCI, which in turn owned 81.1% of IOR during the three and nine months ended September 30, 2023 and 2022 . |
Deferred Income
Deferred Income | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Income | Deferred Income In previous years, we sold properties to related parties at a gain and therefore the sales criteria for the full accrual method was not met, and as such we deferred the gain recognition and accounted for the sales by applying the finance, deposit, installment or cost recovery methods, as appropriate. The gain on these transactions is deferred until the properties are sold to a non-related third party. As of September 30, 2023 and December 31, 2022, we had deferred gain of $9,791. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We are part of a tax sharing and compensating agreement with respect to federal income taxes with TCI and IOR. In accordance with the agreement, o ur expense (benefit) in each year is calculated based on the amount of losses absorbed by taxable income multiplied by the maximum statutory tax rate of 21%. The following table summarizes our income tax provision: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Current $ 5,227 $ 81,548 $ 6,516 $ 81,616 Deferred (4,100) — (4,100) — $ 1,127 $ 81,548 $ 2,416 $ 81,616 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesWe believe that we will generate excess cash from property operations in the next twelve months; such excess, however, might not be sufficient to discharge all of our obligations as they become due. We intend to sell income-producing assets, refinance real estate and obtain additional borrowings primarily secured by real estate to meet our liquidity requirements.We were a defendant in litigation with David Clapper and related entities (collectively, "Clapper”) regarding a multifamily property transaction that occurred in 1988. The litigation led to a substantial judgment against our affiliate and Clapper subsequently sued numerous other entities including us in Federal Court to collect that judgment. The case was tried by a jury in May 2021. The jury found the defendants owed Clapper nothing and the Court issued a take nothing judgment. Clapper subsequently filed an appeal to the US Fifth Circuit Court of Appeals, which has the case under review. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The date to which events occurring after September 30, 2023, the date of the most recent balance sheet, have been evaluated for possible adjustment to the consolidated financial statements or disclosure is November 9, 2023, which is the date on which the consolidated financial statements were available to be issued. On November 6, 2023 , we entered into a development agreement with Pillar to build a 216 unit multifamily property in McKinney, Texas that is expected to be completed in 2025 for a total cost of approximately $51.3 million . The cost of construction will be funded in part by a $25.4 million construction loan. The development agreement provides for a $1.6 million |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading. In the opinion of management, all adjustments (consisting of normal recurring matters) considered necessary for a fair presentation have been included. Certain prior year amounts have been reclassified to conform with the current year presentation. These reclassifications had no effect on the reported results of operation. An adjustment has been made to reclassify $2,447 and $5,746 interest expense to related parties for the three and nine months ended September 30, 2022, respectively, from interest expense to interest income on the consolidated statements of operations. The consolidated balance sheet at December 31, 2022 was derived from the audited consolidated financial statements at that date, but does not include all of the information and disclosures required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022. Certain 2022 consolidated financial statement amounts have been reclassified to conform to the current presentation. We consolidate entities in which we are considered to be the primary beneficiary of a variable interest entity (“VIE”) or have a majority of the voting interest of the entity. We have determined that we are a primary beneficiary of the VIE when we have (i) the power to direct the activities of a VIE that most significantly impacts its economic performance, and (ii) the obligations to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In determining whether we are the primary beneficiary, we consider qualitative and quantitative factors, including ownership interest, management representation, ability to control decision and other contractual rights. We account for entities in which we have less than a controlling financial interest or entities where we are not deemed to be the primary beneficiary under the equity method of accounting. Accordingly, we include our share of the net earnings or losses of these entities in our results of operations. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table details our basic and diluted earnings per common share calculation: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net income $ 4,025 $ 384,304 $ 8,547 $ 418,901 Net income attributable to noncontrolling interests (1,037) (82,015) (2,456) (88,986) Net income attributable to common shares $ 2,988 $ 302,289 $ 6,091 $ 329,915 Weighted-average common shares outstanding — basic and diluted 16,152,043 16,152,043 16,152,043 16,152,043 EPS - attributable to common shares — basic and diluted $ 0.18 $ 18.72 $ 0.38 $ 20.43 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Interest Paid and Other Supplemental Cash Flow Information | The following presents the schedule of interest paid and other supplemental cash flow information: Nine Months Ended September 30, 2023 2022 Cash paid for interest $ 9,432 $ 22,211 Cash - beginning of period Cash and cash equivalents $ 113,445 $ 50,748 Restricted cash 108,883 21,986 $ 222,328 $ 72,734 Cash - end of period Cash and cash equivalents $ 47,203 $ 131,236 Restricted cash 36,145 17,950 $ 83,348 $ 149,186 Payments on mortgages, other notes and bonds payable Payments on mortgages and other notes payable $ 5,633 $ 26,411 Payments on bonds payable 131,176 43,759 $ 136,809 $ 70,170 The following is a schedule of noncash investing and financing activities: Nine Months Ended September 30, 2023 2022 Property acquired in exchange for reduction in related party receivable $ 6,064 $ — Distribution from joint venture applied to Earn Out Obligation $ — $ 34,159 |
Operating Segments (Tables)
Operating Segments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Profit by Reportable segment | The following table presents our reportable segments for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Multifamily Segment Revenues $ 7,899 $ 2,850 $ 22,930 $ 9,024 Operating expenses (4,811) (1,966) (12,997) (5,395) Profit from segment 3,088 884 9,933 3,629 Commercial Segment Revenues 3,939 4,720 11,306 13,286 Operating expenses (2,632) (2,735) (7,583) (7,146) Profit from segment 1,307 1,985 3,723 6,140 Total profit from segments $ 4,395 $ 2,869 $ 13,656 $ 9,769 |
Schedule of Reconciliation of Revenue from Segments to Consolidated | The table below reflects the reconciliation of total profit from segments to net income for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Total profit from segments $ 4,395 $ 2,869 $ 13,656 $ 9,769 Other non-segment items of income (expense) Depreciation and amortization (3,313) (2,193) (9,615) (6,840) General and administrative (1,579) (3,042) (8,424) (7,956) Advisory fee to related party (2,295) (1,571) (6,883) (7,614) Other income 688 749 2,217 1,925 Interest income 9,008 7,035 25,201 19,937 Interest expense (1,954) (4,044) (7,574) (13,301) Gain on foreign currency transaction — 1,533 993 19,437 Loss on early extinguishment of debt — (1,166) (1,710) (2,805) Income from unconsolidated joint ventures 234 464,143 2,946 471,385 (Loss) gain on sales or write-down of assets (32) 1,539 156 16,580 Income tax provision (1,127) (81,548) (2,416) (81,616) Net income $ 4,025 $ 384,304 $ 8,547 $ 418,901 |
Lease Revenue (Tables)
Lease Revenue (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Rental Revenue | The following table summarizes the components of our rental revenue for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Fixed component $ 11,338 $ 6,977 $ 32,968 $ 20,854 Variable component 500 593 1,268 1,456 $ 11,838 $ 7,570 $ 34,236 $ 22,310 |
Schedule of Future Rental Payments | The following table summarizes the future rental payments that are payable to us from non-cancelable leases. The table excludes multifamily leases, which typically have a term of one-year or less: 2023 $ 9,747 2024 10,823 2025 10,358 2026 10,056 2027 9,787 Thereafter 22,444 $ 73,215 |
Real Estate Activity (Tables)
Real Estate Activity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Real Estate [Abstract] | |
Schedule of the Real Estate Owned | Below is a summary of our real estate as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Land $ 108,993 $ 108,933 Building and improvements 371,973 359,904 Tenant improvements 17,463 25,611 Construction in progress 68,512 65,427 Total cost 566,941 559,875 Less accumulated depreciation (64,910) (66,054) Total real estate $ 502,031 $ 493,821 |
Schedule of Gain Loss on Sale or Write-down of Assets | Gain on sale or write-down of assets, net for the three and nine months ended September 30, 2023 and 2022 consists of the following: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Land(1) $ — $ — $ 188 $ 4,752 Multifamily Properties(2) — 1,539 — 11,142 Commercial Properties(3) — — — 890 Other (32) — (32) (204) $ (32) $ 1,539 $ 156 $ 16,580 (1) Includes the gain on the sale of lots related to our investment in Windmill Farms, Mercer Crossing and other land holdings. (2) On January 14, 2022, we sold Toulon, a 240 unit multifamily property in Gautier, Mississippi for $26,750, resulting in a gain on sale of $9,364. We used the proceeds to pay off the $14,740 mortgage note payable on the property and for general corporate purposes. On September 16, 2022, in connection with a sale of properties by VAA (See Note 10 - Investment in Unconsolidated Joint Ventures), we sold Sugar Mill Phase III, a 72 unit multifamily property in Baton Rouge, Louisiana for $11,800, resulting in a gain on sale of $1,871. We used the proceeds to pay off the $9,551 mortgage note payable on the property and for general corporate purposes. (3) On May 17, 2022, we sold Fruitland Park, a 6,722 square foot commercial building in Fruitland Park, Florida for $750, resulting in a gain on sale of $667. We used the proceeds for general corporate purposes. |
Notes Receivable (Tables)
Notes Receivable (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Notes Receivable | The following table summarizes our notes receivable as of September 30, 2023 and December 31, 2022: Carrying value Property/Borrower September 30, 2023 December 31, 2022 Interest Rate Maturity Date ABC Land and Development, Inc. $ 4,408 $ 4,408 9.50 % 6/30/26 ABC Paradise, LLC 1,210 1,210 9.50 % 6/30/26 Autumn Breeze(1) 2,157 2,326 5.00 % 7/1/25 Bellwether Ridge(1) 3,798 3,798 5.00 % 11/1/26 Dominion at Mercer Crossing(2) 6,354 — 9.25 % 6/7/28 Forest Pines(1) 6,472 6,472 5.00 % 5/1/24 Legacy Pleasant Grove 496 496 12.00 % 10/23/24 McKinney Ranch 3,926 3,926 6.00 % 9/15/24 One Realco Land Holding, Inc. 1,728 1,728 9.50 % 6/30/26 Parc at Ingleside(1) 3,759 3,759 5.00 % 11/1/26 Parc at Opelika Phase II(1)(3) 3,190 3,190 10.00 % 1/13/23 Parc at Windmill Farms(1)(3) 7,886 7,886 5.00 % 11/1/22 Phillips Foundation for Better Living, Inc.(4) 182 182 12.00 % 3/31/24 Plum Tree(1) 1,767 1,767 5.00 % 4/26/26 Polk County Land 3,000 3,000 9.50 % 6/30/26 Riverview on the Park Land, LLC 1,045 1,045 9.50 % 6/30/26 Spartan Land 5,907 5,907 12.00 % 1/16/25 Spyglass of Ennis(1) 5,179 5,258 5.00 % 11/1/24 Steeple Crest(1) 6,498 6,498 5.00 % 8/1/26 Unified Housing Foundation(4)(5) 20,325 20,325 12.00 % 6/30/28 Unified Housing Foundation(4)(5) 10,096 10,096 12.00 % 3/31/24 Unified Housing Foundation(4)(5) 6,990 6,990 12.00 % 3/31/25 Unified Housing Foundation(4)(5) 3,615 3,615 12.00 % 5/31/28 Unified Housing Foundation(4)(5) 27,477 27,477 12.00 % 12/31/32 Unified Housing Foundation(4)(5) 6,521 6,521 12.00 % 3/31/24 Unified Housing Foundation(4)(5) 1,549 1,549 12.00 % 4/30/24 Unified Housing Foundation(4)(5) 180 180 12.00 % 6/30/24 $ 145,715 $ 139,609 (1) The note is convertible, at our option, into a 100% ownership interest in the underlying development property, and is collateralized by the underlying development property. (2) The note has an interest rate of prime plus 1.00%. (3) We are working with the borrower to extend the maturity and/or exercise our conversion option. (4) The borrower is deemed to be a related party due to our significant investment in the performance of the collateral secured by the notes receivable. |
Investment in Unconsolidated _2
Investment in Unconsolidated Joint Ventures (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments in Unconsolidated Joint Ventures | The following is a summary of our investment in unconsolidated joint ventures: September 30, 2023 December 31, 2022 Assets (1) Real estate $ 13,886 $ 13,140 Cash, cash equivalents and restricted cash 20,449 66,364 Other assets 56,381 35,938 Total assets $ 90,716 $ 115,442 Liabilities and Partners' Capital (1) Liabilities from discontinued operations $ — $ 8,824 Mortgage notes payable 13,444 16,267 Other liabilities 28,562 13,412 Our share of partners' capital 10,256 27,973 Outside partner's capital 38,454 48,966 Total liabilities and partners' capital $ 90,716 $ 115,442 Investment in unconsolidated joint ventures Our share of partners' capital $ 10,256 $ 27,973 Basis adjustment (2) — 253 Total investment in unconsolidated joint ventures $ 10,256 $ 28,226 (1) These amounts include the assets of VAA of $1,447 and $52,404 at September 30, 2023 and December 31, 2022, respectively, and liabilities of VAA of $93 and $10,812 at September 30, 2023 and December 31, 2022, respectively. (2) We amortize the difference between the cost of our investments in unconsolidated joint ventures and the book value of our underlying equity into income on a straight-line basis consistent with the lives of the underlying assets. The following is a summary of income from our investments in unconsolidated joint ventures: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue (1) Rental revenue $ — $ 3,342 $ — $ 11,305 Other revenue 22,268 15,417 49,532 41,119 Total revenue 22,268 18,759 49,532 52,424 Expenses (2) Operating expenses 16,581 17,335 38,803 53,866 Depreciation and amortization 534 1,177 1,177 3,499 Interest 76 5,368 123 17,396 Total expenses 17,191 23,880 40,103 74,761 Income (loss) from continuing operations 5,077 (5,121) 9,429 (22,337) Income from discontinued operations (3) (78) 704,700 743 712,648 Net income $ 4,999 $ 699,579 $ 10,172 $ 690,311 Equity in income from unconsolidated joint ventures $ 234 $ 464,143 $ 2,946 $ 471,385 (1) These amounts include revenue of VAA of $3,591 and $11,932 during the three and nine months ended September 30, 2022. (2) These amounts include expenses of VAA of $9,003 and $35,668 during the three and nine months ended September 30, 2022, respectively. (3) These amounts represent the net (expense) income of the VAA Sale Portfolio . |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Acquisitions | The VAA Holdback Portfolio consisted of the following properties: Property Location Units Blue Lake Villas Waxahachie, TX 186 Blue Lake Villas Phase II Waxahachie, TX 70 Northside on Travis Sherman, TX 200 Parc at Denham Springs Denham Spring, LA 224 Residences at Holland Lake Weatherford, TX 208 Villas of Park West I Pueblo, CO 148 Villas of Park West II Pueblo, CO 112 1,148 We have determined that the purchase price represented the fair value of the additional ownership interest in the VAA Holdback Portfolio that was acquired. Fair value of existing ownership interest (at 50% ownership) $ 219,500 Carrying value of investment 146,313 Gain on remeasurement of assets $ 73,187 |
Schedule of Preliminary Allocation of Fair Value in Acquisition | The following is a summary of the preliminary allocation of the fair value of the VAA Holdback Portfolio: Real estate $ 219,500 Other assets 4,843 Total assets acquired 224,343 Mortgage notes payable 70,330 Accounts payable and other liabilities 1,624 Accrued interest 190 Total liabilities assumed 72,144 Fair value of acquired net assets (100% ownership) $ 152,199 |
Mortgages and Other Notes Pay_2
Mortgages and Other Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes our mortgages and other notes payable as of September 30, 2023 and December 31, 2022: Carrying Value Interest Maturity Property/ Entity September 30, 2023 December 31, 2022 770 South Post Oak $ 11,248 $ 11,406 4.40 % 6/1/2025 Athens(1) — 1,155 4.00 % 8/28/2023 Blue Lake Villas(2) 9,546 9,673 3.15 % 11/1/2055 Blue Lake Villas Phase II(2) 3,368 3,424 2.85 % 6/1/2052 Chelsea 7,749 7,875 3.40 % 12/1/2050 EQK Portage 3,350 3,350 10.00 % 11/13/2024 Forest Grove 7,023 7,128 3.75 % 5/5/2024 Landing Bayou 13,971 14,161 3.50 % 9/1/2053 Legacy at Pleasant Grove 12,798 13,039 3.60 % 4/1/2048 New Concept Energy 3,542 3,542 6.00 % 9/30/2025 Northside on Travis(2) 11,460 11,656 2.50 % 2/1/2053 Parc at Denham Springs(2) 16,484 16,737 3.75 % 4/1/2051 Parc at Denham Springs Phase II 15,654 15,789 4.05 % 2/1/2060 RCM HC Enterprises 5,086 5,086 5.00 % 12/31/2024 Residences at Holland Lake(3) 10,474 10,622 3.60 % 3/1/2053 Villas at Bon Secour 19,119 19,410 3.08 % 9/1/2031 Villas of Park West I(2) 9,230 9,373 3.04 % 3/1/2053 Villas of Park West II(2) 8,377 8,504 3.18 % 3/1/2053 Vista Ridge 9,553 9,674 4.00 % 8/1/2053 Windmill Farms(4) 4,396 6,400 7.75 % 2/28/2024 $ 182,428 $ 188,004 (1) On August 28, 2023, we paid off the loan. (2) On November 1, 2022, we agreed to assume the mortgage note payable from our joint venture in connection with the acquisition of the underlying property (See Note 11 - Acquisitions) and are in the process of obtaining lender approval of the assumption. (3) On October 16, 2023, we received approval from the lender to assume the loan on the property that we acquired from our joint venture (See Note 11 - Acquisitions). (4) On February 28, 2023, we extended the maturity of the loan to February 28, 2024 and an interest rate of 7.75%. |
Bonds Payable (Tables)
Bonds Payable (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Bonds Payable | The outstanding balance of our Bonds at December 31, 2022 was as follows: Bond Issuance Amount Interest Rate Maturity Series A Bonds(1) $ 28,971 7.30 % 7/31/23 Series B Bonds(1) 35,806 6.80 % 7/31/25 Series C Bonds(2) 66,546 4.65 % 1/31/23 131,323 Less unamortized deferred issuance costs (2,105) $ 129,218 (1) The bonds were collateralized by the assets of SPC. (2) The bonds were collateralized by a trust deed on Browning Place, a 625,297 square foot office building in Dallas, Texas. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provisions | The following table summarizes our income tax provision: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Current $ 5,227 $ 81,548 $ 6,516 $ 81,616 Deferred (4,100) — (4,100) — $ 1,127 $ 81,548 $ 2,416 $ 81,616 |
Organization (Details)
Organization (Details) | Sep. 30, 2023 ft² a property apartment |
Office Building | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 4 |
Area of property (sq. ft.) | ft² | 1,056,793 |
Apartment Building | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 14 |
Number of units in real estate property | apartment | 2,328 |
Land and Land Improvements | |
Real Estate Properties [Line Items] | |
Acres of developed and undeveloped land | a | 1,858 |
Regis Realty Prime, LLC | Commercial Properties | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 3 |
ARL | Related Party Entities | Majority Shareholder | |
Real Estate Properties [Line Items] | |
Ownership interest | 90% |
TCI | |
Real Estate Properties [Line Items] | |
Ownership interest | 78.40% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Related Party Transaction [Line Items] | ||||
Interest expense | $ 1,954 | $ 4,044 | $ 7,574 | $ 13,301 |
Related Party | ||||
Related Party Transaction [Line Items] | ||||
Interest expense | $ 2,447 | $ 5,746 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 4,025 | $ 384,304 | $ 8,547 | $ 418,901 |
Net income attributable to noncontrolling interests | (1,037) | (82,015) | (2,456) | (88,986) |
Net income attributable to common shares | $ 2,988 | $ 302,289 | $ 6,091 | $ 329,915 |
Weighted-average common shares outstanding - basic (in shares) | 16,152,043 | 16,152,043 | 16,152,043 | 16,152,043 |
Weighted-average common shares outstanding - diluted (in shares) | 16,152,043 | 16,152,043 | 16,152,043 | 16,152,043 |
EPS - attributable to common shares- basic (in dollars per share) | $ 0.18 | $ 18.72 | $ 0.38 | $ 20.43 |
EPS - attributable to common shares- diluted (in dollars per share) | $ 0.18 | $ 18.72 | $ 0.38 | $ 20.43 |
Supplemental Cash Flows Informa
Supplemental Cash Flows Information - Noncash Investing and Financing Activities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Supplemental Cash Flow Elements [Roll Forward] | ||
Cash paid for interest | $ 9,432 | $ 22,211 |
Cash and cash equivalents, beginning balance | 113,445 | 50,748 |
Restricted cash, beginning balance | 108,883 | 21,986 |
Cash, cash equivalents and restricted cash, beginning of period | 222,328 | 72,734 |
Cash and cash equivalents, ending balance | 47,203 | 131,236 |
Restricted cash, ending balance | 36,145 | 17,950 |
Cash, cash equivalents and restricted cash, end of period | 83,348 | 149,186 |
Payments on mortgages, other notes and bonds payable | ||
Payments on mortgages and other notes payable | 5,633 | 26,411 |
Payments on bonds payable | 131,176 | 43,759 |
Payments on mortgages, other notes and bonds payable | $ 136,809 | $ 70,170 |
Supplemental Cash Flows Infor_2
Supplemental Cash Flows Information - Schedule of Noncash Investing and Financing Activities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Related Party Transaction [Line Items] | ||
Distribution from joint venture applied to Earn Out Obligation | $ 0 | $ 34,159 |
Related Party | ||
Related Party Transaction [Line Items] | ||
Property acquired in exchange for reduction in related party receivable | $ 6,064 | $ 0 |
Operating Segments - Narrative
Operating Segments - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Operating Segments - Profit by
Operating Segments - Profit by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 12,526 | $ 8,319 | $ 36,453 | $ 24,235 |
Total profit from segments | (2,104) | (3,188) | (9,049) | (10,716) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total profit from segments | 4,395 | 2,869 | 13,656 | 9,769 |
Operating Segments | Multifamily Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 7,899 | 2,850 | 22,930 | 9,024 |
Operating expenses | (4,811) | (1,966) | (12,997) | (5,395) |
Profit from segment | 3,088 | 884 | 9,933 | 3,629 |
Operating Segments | Commercial Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,939 | 4,720 | 11,306 | 13,286 |
Operating expenses | (2,632) | (2,735) | (7,583) | (7,146) |
Profit from segment | $ 1,307 | $ 1,985 | $ 3,723 | $ 6,140 |
Operating Segments - Profit b_2
Operating Segments - Profit by Reportable Segment to Net Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Total profit from segments | $ (2,104) | $ (3,188) | $ (9,049) | $ (10,716) |
Depreciation and amortization | (3,313) | (2,193) | (9,615) | (6,840) |
General and administrative | (1,579) | (3,042) | (8,424) | (7,956) |
Advisory fee to related party | (2,295) | (1,571) | (6,883) | (7,614) |
Other income | 688 | 749 | 2,217 | 1,925 |
Interest income | 9,008 | 7,035 | 25,201 | 19,937 |
Interest expense | (1,954) | (4,044) | (7,574) | (13,301) |
Gain on foreign currency transaction | 0 | 1,533 | 993 | 19,437 |
Loss on early extinguishment of debt | 0 | (1,166) | (1,710) | (2,805) |
Income from unconsolidated joint ventures | 234 | 464,143 | 2,946 | 471,385 |
(Loss) gain on sales or write-down of assets | (32) | 1,539 | 156 | 16,580 |
Income tax provision | (1,127) | (81,548) | (2,416) | (81,616) |
Net income | 4,025 | 384,304 | 8,547 | 418,901 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total profit from segments | 4,395 | 2,869 | 13,656 | 9,769 |
Other non-segment items of income (expense) | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | (3,313) | (2,193) | (9,615) | (6,840) |
General and administrative | (1,579) | (3,042) | (8,424) | (7,956) |
Advisory fee to related party | (2,295) | (1,571) | (6,883) | (7,614) |
Other income | 688 | 749 | 2,217 | 1,925 |
Interest income | 9,008 | 7,035 | 25,201 | 19,937 |
Interest expense | (1,954) | (4,044) | (7,574) | (13,301) |
Gain on foreign currency transaction | 0 | 1,533 | 993 | 19,437 |
Loss on early extinguishment of debt | 0 | (1,166) | (1,710) | (2,805) |
Income from unconsolidated joint ventures | 234 | 464,143 | 2,946 | 471,385 |
(Loss) gain on sales or write-down of assets | (32) | 1,539 | 156 | 16,580 |
Income tax provision | (1,127) | (81,548) | (2,416) | (81,616) |
Net income | $ 4,025 | $ 384,304 | $ 8,547 | $ 418,901 |
Lease Revenue - Schedule of Ren
Lease Revenue - Schedule of Rental Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Fixed component | $ 11,338 | $ 6,977 | $ 32,968 | $ 20,854 |
Variable component | 500 | 593 | 1,268 | 1,456 |
Total rental revenue | $ 11,838 | $ 7,570 | $ 34,236 | $ 22,310 |
Lease Revenue - Schedule of Fut
Lease Revenue - Schedule of Future Rental Payments (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Leases [Abstract] | |
2023 | $ 9,747 |
2024 | 10,823 |
2025 | 10,358 |
2026 | 10,056 |
2027 | 9,787 |
Thereafter | 22,444 |
Total | $ 73,215 |
Real Estate Activity - Real Est
Real Estate Activity - Real Estate Investment Components (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Real Estate [Abstract] | ||
Land | $ 108,993 | $ 108,933 |
Building and improvements | 371,973 | 359,904 |
Tenant improvements | 17,463 | 25,611 |
Construction in progress | 68,512 | 65,427 |
Total cost | 566,941 | 559,875 |
Less accumulated depreciation | (64,910) | (66,054) |
Total real estate | $ 502,031 | $ 493,821 |
Real Estate Activity - Narrativ
Real Estate Activity - Narrative (Details) - Lake Wales $ in Thousands | 9 Months Ended | |
Mar. 15, 2023 USD ($) apartment | Sep. 30, 2023 USD ($) | |
Real Estate [Line Items] | ||
Number of units in real estate property | apartment | 240 | |
Real estate investment property, at cost | $ 55,330 | |
Proceeds from construction loans payable | 33,000 | |
Fees related to construction | $ 1,637 | |
Development costs | $ 12,337 | |
Development fees | $ 334 |
Real Estate Activity - Schedule
Real Estate Activity - Schedule of Gain (Loss) on Sale or Write-down of Assets (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 16, 2022 USD ($) apartment | May 17, 2022 USD ($) ft² | Jan. 14, 2022 USD ($) apartment | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
(Loss) gain on sales or write-down of assets | $ (32) | $ 1,539 | $ 156 | $ 16,580 | |||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
Notes assumed | $ 9,551 | $ 14,740 | |||||
Land | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
(Loss) gain on sales or write-down of assets | 0 | 0 | 188 | 4,752 | |||
Multifamily Properties | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
(Loss) gain on sales or write-down of assets | 0 | 1,539 | 0 | 11,142 | |||
Commercial Properties | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
(Loss) gain on sales or write-down of assets | 0 | 0 | 0 | 890 | |||
Other | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
(Loss) gain on sales or write-down of assets | $ (32) | $ 0 | $ (32) | $ (204) | |||
Toulon | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
Number of units in real estate property | apartment | 240 | ||||||
Proceeds from sale | $ 26,750 | ||||||
Gain on sale | $ 9,364 | ||||||
Sugar Mill Phase III | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
Number of units in real estate property | apartment | 72 | ||||||
Proceeds from sale | $ 11,800 | ||||||
Gain on sale | $ 1,871 | ||||||
Fruitland Park | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
Proceeds from sale | $ 750 | ||||||
Gain on sale | $ 667 | ||||||
Area of property (sq. ft.) | ft² | 6,722 |
Short-term Investments (Details
Short-term Investments (Details) | Sep. 30, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Investment interest rate | 5.29% | 4.67% |
Notes Receivable - Schedule of
Notes Receivable - Schedule of Notes Receivable (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 145,715 | $ 139,609 |
Notes Receivable | ABC Land and Development, Inc. | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 4,408 | 4,408 |
Interest Rate | 9.50% | |
Notes Receivable | ABC Paradise, LLC | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 1,210 | 1,210 |
Interest Rate | 9.50% | |
Notes Receivable | Autumn Breeze | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 2,157 | 2,326 |
Interest Rate | 5% | |
Ownership interest if note converted | 100% | |
Notes Receivable | Bellwether Ridge | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 3,798 | 3,798 |
Interest Rate | 5% | |
Ownership interest if note converted | 100% | |
Notes Receivable | Dominion at Mercer Crossing | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 6,354 | 0 |
Interest Rate | 9.25% | |
Notes Receivable | Dominion at Mercer Crossing | Prime Rate | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 1% | |
Notes Receivable | Forest Pines | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 6,472 | 6,472 |
Interest Rate | 5% | |
Ownership interest if note converted | 100% | |
Notes Receivable | Legacy Pleasant Grove | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 496 | 496 |
Interest Rate | 12% | |
Notes Receivable | McKinney Ranch | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 3,926 | 3,926 |
Interest Rate | 6% | |
Notes Receivable | One Realco Land Holding, Inc. | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 1,728 | 1,728 |
Interest Rate | 9.50% | |
Notes Receivable | Parc at Ingleside | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 3,759 | 3,759 |
Interest Rate | 5% | |
Ownership interest if note converted | 100% | |
Notes Receivable | Parc at Opelika Phase II | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 3,190 | 3,190 |
Interest Rate | 10% | |
Ownership interest if note converted | 100% | |
Notes Receivable | Parc at Windmill Farms | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 7,886 | 7,886 |
Interest Rate | 5% | |
Ownership interest if note converted | 100% | |
Notes Receivable | Phillips Foundation for Better Living, Inc. | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 182 | 182 |
Interest Rate | 12% | |
Notes Receivable | Plum Tree | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 1,767 | 1,767 |
Interest Rate | 5% | |
Ownership interest if note converted | 100% | |
Notes Receivable | Polk County Land | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 3,000 | 3,000 |
Interest Rate | 9.50% | |
Notes Receivable | Riverview on the Park Land, LLC | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 1,045 | 1,045 |
Interest Rate | 9.50% | |
Notes Receivable | Spartan Land | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 5,907 | 5,907 |
Interest Rate | 12% | |
Notes Receivable | Spyglass of Ennis | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 5,179 | 5,258 |
Interest Rate | 5% | |
Ownership interest if note converted | 100% | |
Notes Receivable | Steeple Crest | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 6,498 | 6,498 |
Interest Rate | 5% | |
Ownership interest if note converted | 100% | |
Notes Receivable | Unified Housing Foundation Inc., Maturing June 30, 2028 A | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 20,325 | 20,325 |
Interest Rate | 12% | |
Notes Receivable | Unified Housing Foundation Inc., Maturing March 31, 2024 | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 10,096 | 10,096 |
Interest Rate | 12% | |
Notes Receivable | Unified Housing Foundation Inc., Maturing March 31, 2025 | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 6,990 | 6,990 |
Interest Rate | 12% | |
Notes Receivable | Unified Housing Foundation Inc., Maturing May 31, 2028 | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 3,615 | 3,615 |
Interest Rate | 12% | |
Notes Receivable | Unified Housing Foundation Inc., Maturing December 31, 2032 | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 27,477 | 27,477 |
Interest Rate | 12% | |
Notes Receivable | Unified Housing Foundation Inc., Maturing March 31, 2024 A | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 6,521 | 6,521 |
Interest Rate | 12% | |
Notes Receivable | Unified Housing Foundation Inc., Maturing April 30, 2024 | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 1,549 | 1,549 |
Interest Rate | 12% | |
Notes Receivable | Unified Housing Foundation Inc., Maturing June 30, 2024 | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 180 | $ 180 |
Interest Rate | 12% |
Investment in Unconsolidated _3
Investment in Unconsolidated Joint Ventures - Narrative (Details) $ in Thousands | 9 Months Ended | |||||
Mar. 23, 2023 USD ($) | Nov. 01, 2022 USD ($) property | Sep. 16, 2022 USD ($) property | Nov. 16, 2018 USD ($) property | Sep. 30, 2023 USD ($) franchised_location | Sep. 30, 2022 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||
Distribution from unconsolidated joint venture | $ 20,916 | $ 181,748 | ||||
Distribution of income from unconsolidated joint ventures | $ 0 | $ 3,700 | ||||
VAA Sale Portfolio | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Proceeds from sale | $ 1,810,700 | |||||
Gain on sale | 738,444 | |||||
Distribution from unconsolidated joint venture | $ 204,036 | $ 182,848 | ||||
Macquarie | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Earn out obligation | $ 39,600 | |||||
VAA | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Contributed properties with earn-out provisions | property | 10 | |||||
Earn-out provision terms | 2 years | |||||
Earn out obligation | $ 10,000 | |||||
VAA | Gruppa Florentina LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of franchised locations | franchised_location | 23 | |||||
VAA | Gruppa Florentina LLC | Angelo And Vito's Pizzerias | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of franchised locations | franchised_location | 2 | |||||
VAA | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of real estate properties | property | 7 | |||||
VAA | VAA | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of ownership in VAA | 50% | |||||
VAA | VAA | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of real estate properties | property | 45 | |||||
VAA | VAA | VAA Sale Portfolio | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Distribution of income from unconsolidated joint ventures | $ 17,976 | |||||
VAA | VAA | VAA | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of ownership in VAA | 50% | |||||
Milano | VAA | Milano | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of ownership in VAA | 20% |
Investment in Unconsolidated _4
Investment in Unconsolidated Joint Ventures - Financial Position And Results of Operations From Our Investees (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets | ||||||
Real estate | $ 502,031 | $ 502,031 | $ 493,821 | |||
Cash, cash equivalents and restricted cash | 83,348 | $ 149,186 | 83,348 | $ 149,186 | 222,328 | $ 72,734 |
Other assets | 94,358 | 94,358 | 85,524 | |||
Total assets | 1,062,278 | 1,062,278 | 1,197,479 | |||
Liabilities and Partners' Capital | ||||||
Total liabilities and equity | 1,062,278 | 1,062,278 | 1,197,479 | |||
Investment in unconsolidated joint ventures | 10,256 | 10,256 | 28,226 | |||
Liabilities | 241,563 | 241,563 | 385,311 | |||
Revenues: | ||||||
Rental revenue | 11,838 | 7,570 | 34,236 | 22,310 | ||
Other income | 688 | 749 | 2,217 | 1,925 | ||
Total revenue | 12,526 | 8,319 | 36,453 | 24,235 | ||
Expenses: | ||||||
Depreciation and amortization | 10,518 | 9,409 | ||||
Net income | 4,025 | 384,304 | 8,547 | 418,901 | ||
Equity in income from unconsolidated joint ventures | 234 | 464,143 | 2,946 | 471,385 | ||
VAA | ||||||
Liabilities and Partners' Capital | ||||||
Our share of partners' capital | 10,256 | 10,256 | 27,973 | |||
Basis adjustment | 0 | 0 | 253 | |||
Investment in unconsolidated joint ventures | 10,256 | 10,256 | 28,226 | |||
Revenues: | ||||||
Rental revenue | 0 | 3,342 | 0 | 11,305 | ||
Other income | 22,268 | 15,417 | 49,532 | 41,119 | ||
Total revenue | 22,268 | 18,759 | 49,532 | 52,424 | ||
Expenses: | ||||||
Operating expenses | 16,581 | 17,335 | 38,803 | 53,866 | ||
Depreciation and amortization | 534 | 1,177 | 1,177 | 3,499 | ||
Interest | 76 | 5,368 | 123 | 17,396 | ||
Total expenses | 17,191 | 23,880 | 40,103 | 74,761 | ||
Income (loss) from continuing operations | 5,077 | (5,121) | 9,429 | (22,337) | ||
Income from discontinued operations | (78) | 704,700 | 743 | 712,648 | ||
Net income | 4,999 | 699,579 | 10,172 | 690,311 | ||
Equity in income from unconsolidated joint ventures | 234 | 464,143 | 2,946 | 471,385 | ||
VAA | VAA | ||||||
Assets | ||||||
Total assets | 1,447 | 1,447 | 52,404 | |||
Liabilities and Partners' Capital | ||||||
Liabilities | 93 | 93 | 10,812 | |||
Revenues: | ||||||
Total revenue | 3,591 | 11,932 | ||||
Expenses: | ||||||
Total expenses | $ 9,003 | $ 35,668 | ||||
VAA | Unconsolidated Joint Ventures | ||||||
Assets | ||||||
Real estate | 13,886 | 13,886 | 13,140 | |||
Cash, cash equivalents and restricted cash | 20,449 | 20,449 | 66,364 | |||
Other assets | 56,381 | 56,381 | 35,938 | |||
Total assets | 90,716 | 90,716 | 115,442 | |||
Liabilities and Partners' Capital | ||||||
Liabilities from discontinued operations | 0 | 0 | 8,824 | |||
Mortgage notes payable | 13,444 | 13,444 | 16,267 | |||
Other liabilities | 28,562 | 28,562 | 13,412 | |||
Our share of partners' capital | 10,256 | 10,256 | 27,973 | |||
Outside partner's capital | 38,454 | 38,454 | 48,966 | |||
Total liabilities and equity | $ 90,716 | $ 90,716 | $ 115,442 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - VAA Holdback Portfolio | Nov. 01, 2022 |
Business Acquisition [Line Items] | |
Ownership interest acquired | 50% |
Ownership interest after interest acquired | 100% |
Acquisitions - Asset Acquisitio
Acquisitions - Asset Acquisition Of Properties (Details) - VAA Holdback Portfolio | Nov. 01, 2022 property |
Business Acquisition [Line Items] | |
Number of units in real estate property | 1,148 |
Blue Lake Villas | |
Business Acquisition [Line Items] | |
Number of units in real estate property | 186 |
Blue Lake Villas Phase II | |
Business Acquisition [Line Items] | |
Number of units in real estate property | 70 |
Northside on Travis | |
Business Acquisition [Line Items] | |
Number of units in real estate property | 200 |
Parc at Denham Springs | |
Business Acquisition [Line Items] | |
Number of units in real estate property | 224 |
Residences at Holland Lake | |
Business Acquisition [Line Items] | |
Number of units in real estate property | 208 |
Villas of Park West I | |
Business Acquisition [Line Items] | |
Number of units in real estate property | 148 |
Villas of Park West II | |
Business Acquisition [Line Items] | |
Number of units in real estate property | 112 |
Acquisitions - Schedule of Prel
Acquisitions - Schedule of Preliminary Allocation of The Fair Value (Details) - VAA Holdback Portfolio $ in Thousands | Nov. 01, 2022 USD ($) |
Business Acquisition [Line Items] | |
Real estate | $ 219,500 |
Other assets | 4,843 |
Total assets acquired | 224,343 |
Mortgage notes payable | 70,330 |
Accounts payable and other liabilities | 1,624 |
Accrued interest | 190 |
Total liabilities assumed | 72,144 |
Fair value of acquired net assets (100% ownership) | $ 152,199 |
Ownership interest after interest acquired | 100% |
Acquisitions - Purchase Price O
Acquisitions - Purchase Price Of Additional Ownership Interest (Details) - VAA Holdback Portfolio $ in Thousands | Nov. 01, 2022 USD ($) |
Business Acquisition [Line Items] | |
Ownership interest acquired | 50% |
Fair value of existing ownership interest (at 50% ownership) | $ 219,500 |
Carrying value of investment | 146,313 |
Gain on remeasurement of assets | $ 73,187 |
Mortgages and Other Notes Pay_3
Mortgages and Other Notes Payable - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Feb. 28, 2023 | Dec. 31, 2022 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 182,428 | $ 188,004 | |
Mortgages and Other Notes Payable | 770 South Post Oak | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 11,248 | 11,406 | |
Interest Rate | 4.40% | ||
Mortgages and Other Notes Payable | Athens | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 0 | 1,155 | |
Interest Rate | 4% | ||
Mortgages and Other Notes Payable | Blue Lake Villas | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 9,546 | 9,673 | |
Interest Rate | 3.15% | ||
Mortgages and Other Notes Payable | Blue Lake Villas Phase II | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 3,368 | 3,424 | |
Interest Rate | 2.85% | ||
Mortgages and Other Notes Payable | Chelsea | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 7,749 | 7,875 | |
Interest Rate | 3.40% | ||
Mortgages and Other Notes Payable | EQK Portage | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 3,350 | 3,350 | |
Interest Rate | 10% | ||
Mortgages and Other Notes Payable | Forest Grove | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 7,023 | 7,128 | |
Interest Rate | 3.75% | ||
Mortgages and Other Notes Payable | Landing Bayou | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 13,971 | 14,161 | |
Interest Rate | 3.50% | ||
Mortgages and Other Notes Payable | Legacy at Pleasant Grove | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 12,798 | 13,039 | |
Interest Rate | 3.60% | ||
Mortgages and Other Notes Payable | New Concept Energy | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 3,542 | 3,542 | |
Interest Rate | 6% | ||
Mortgages and Other Notes Payable | Northside on Travis | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 11,460 | 11,656 | |
Interest Rate | 2.50% | ||
Mortgages and Other Notes Payable | Parc at Denham Springs | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 16,484 | 16,737 | |
Interest Rate | 3.75% | ||
Mortgages and Other Notes Payable | Parc at Denham Springs Phase II | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 15,654 | 15,789 | |
Interest Rate | 4.05% | ||
Mortgages and Other Notes Payable | RCM HC Enterprises | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 5,086 | 5,086 | |
Interest Rate | 5% | ||
Mortgages and Other Notes Payable | Residences at Holland Lake | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 10,474 | 10,622 | |
Interest Rate | 3.60% | ||
Mortgages and Other Notes Payable | Villas at Bon Secour | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 19,119 | 19,410 | |
Interest Rate | 3.08% | ||
Mortgages and Other Notes Payable | Villas of Park West I | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 9,230 | 9,373 | |
Interest Rate | 3.04% | ||
Mortgages and Other Notes Payable | Villas of Park West II | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 8,377 | 8,504 | |
Interest Rate | 3.18% | ||
Mortgages and Other Notes Payable | Vista Ridge | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 9,553 | 9,674 | |
Interest Rate | 4% | ||
Mortgages and Other Notes Payable | Windmill Farms | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 4,396 | $ 6,400 | |
Interest Rate | 7.75% | 7.75% |
Mortgages and Other Notes Pay_4
Mortgages and Other Notes Payable - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 15, 2023 USD ($) extension_option | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||
Interest payable | $ 2,480 | $ 2,480 | $ 5,198 | |||
Interest costs capitalized | 0 | $ 1,048 | 642 | $ 2,651 | ||
Lake Wales | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from construction loans payable | $ 33,000 | |||||
Number of extension options | extension_option | 2 | |||||
Extension term | 1 year | |||||
SOFR | Lake Wales | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate | 3% | |||||
Mortgages and Other Notes Payable | ||||||
Debt Instrument [Line Items] | ||||||
Interest payable | $ 2,480 | $ 2,480 | $ 2,004 |
Bonds Payable - Narrative (Deta
Bonds Payable - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Instrument [Line Items] | ||||
Gain on foreign currency transaction | $ 0 | $ 1,533 | $ 993 | $ 19,437 |
Bonds | ||||
Debt Instrument [Line Items] | ||||
Gain on foreign currency transaction | $ 0 | $ 1,533 | $ 993 | $ 19,437 |
Bonds Payable - Schedule of Lon
Bonds Payable - Schedule of Long-term Debt Instruments (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) ft² | Sep. 30, 2023 USD ($) | |
Debt Instrument [Line Items] | ||
Bonds payable | $ 129,218 | $ 0 |
Bonds | ||
Debt Instrument [Line Items] | ||
Bonds | 131,323 | |
Less unamortized deferred issuance costs | (2,105) | |
Bonds payable | 129,218 | |
Series A Bonds | ||
Debt Instrument [Line Items] | ||
Bonds | $ 28,971 | |
Interest Rate | 7.30% | |
Series B Bonds | ||
Debt Instrument [Line Items] | ||
Bonds | $ 35,806 | |
Interest Rate | 6.80% | |
Series C Bonds | ||
Debt Instrument [Line Items] | ||
Bonds | $ 66,546 | |
Interest Rate | 4.65% | |
Series C Bonds | Browning Place | ||
Debt Instrument [Line Items] | ||
Land collateral | ft² | 625,297 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Related Party Transaction [Line Items] | ||||
Rental revenue | $ 11,838 | $ 7,570 | $ 34,236 | $ 22,310 |
Property operating expenses | 7,443 | 4,701 | 20,580 | 12,541 |
General and administrative | 1,579 | 3,042 | 8,424 | 7,956 |
Advisory fee to related party | 2,295 | 1,571 | 6,883 | 7,614 |
Interest income | 9,008 | 7,035 | 25,201 | 19,937 |
Related Party | Pillar and Regis | ||||
Related Party Transaction [Line Items] | ||||
Rental revenue | 232 | 223 | 731 | 702 |
Related Party | Regis | ||||
Related Party Transaction [Line Items] | ||||
Property operating expenses | 97 | 110 | 296 | 337 |
Related Party | Pillar | ||||
Related Party Transaction [Line Items] | ||||
General and administrative | 856 | 1,288 | 3,095 | 3,368 |
Advisory fee to related party | 2,295 | 1,571 | 6,883 | 7,614 |
Related Party | UHF and Pillar | ||||
Related Party Transaction [Line Items] | ||||
Interest income | $ 4,854 | $ 4,140 | $ 14,165 | $ 11,134 |
ARL | Related Party | MRHI | ||||
Related Party Transaction [Line Items] | ||||
Ownership interest | 90.80% | 90.80% |
Noncontrolling Interest (Detail
Noncontrolling Interest (Details) | Sep. 30, 2023 | Sep. 30, 2022 |
TCI | ||
Noncontrolling Interest [Line Items] | ||
Ownership interest | 78.40% | |
IOR | ||
Noncontrolling Interest [Line Items] | ||
Ownership interest | 81.10% | 81.10% |
Deferred Income (Details)
Deferred Income (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue | $ 9,791 | $ 9,791 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Current | $ 5,227 | $ 81,548 | $ 6,516 | $ 81,616 |
Deferred | (4,100) | 0 | (4,100) | 0 |
Income tax provision | $ 1,127 | $ 81,548 | $ 2,416 | $ 81,616 |
Subsequent Events (Details)
Subsequent Events (Details) - McKinney - Subsequent event $ in Millions | Nov. 06, 2023 USD ($) apartment |
Subsequent Event [Line Items] | |
Number of units in real estate property | apartment | 216 |
Real estate investment property, at cost | $ 51.3 |
Proceeds from construction loans payable | 25.4 |
Fees related to construction | $ 1.6 |