Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | GOOD | |
Entity Registrant Name | GLADSTONE COMMERCIAL CORP | |
Entity Central Index Key | 0001234006 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 30,290,842 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Real estate, at cost | $ 953,978 | $ 946,649 | |
Less: accumulated depreciation | 186,107 | 178,257 | |
Total real estate, net | 767,871 | 768,392 | |
Lease intangibles, net | 108,047 | 111,448 | |
Real estate and related assets held for sale, net | 0 | 4,151 | |
Cash and cash equivalents | 4,314 | 6,591 | |
Restricted cash | 2,703 | 2,491 | |
Funds held in escrow | 5,501 | 6,010 | |
Right-of-use assets from operating leases | 5,948 | 0 | |
Deferred rent receivable, net | 35,151 | 34,771 | |
Other assets | 5,485 | 4,921 | |
TOTAL ASSETS | 935,020 | 938,775 | |
LIABILITIES | |||
Mortgage notes payable, net | [1] | 445,412 | 441,346 |
Borrowings under Revolver, net | 32,335 | 50,084 | |
Borrowings under Term Loan, net | 74,653 | 74,629 | |
Deferred rent liability, net | 17,771 | 17,305 | |
Operating lease liabilities | 5,948 | 0 | |
Asset retirement obligation | 2,907 | 2,875 | |
Accounts payable and accrued expenses | 2,641 | 2,704 | |
Due to Adviser and Administrator | [1] | 2,562 | 2,523 |
Other liabilities | 6,902 | 7,292 | |
TOTAL LIABILITIES | 591,131 | 598,758 | |
Commitments and contingencies | [2] | ||
MEZZANINE EQUITY | |||
Series D redeemable preferred stock, net, par value $0.001 per share; $25 per share liquidation preference; 6,000,000 shares authorized; and 3,509,555 and 3,421,853 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively | [3] | 85,598 | 85,598 |
TOTAL MEZZANINE EQUITY | 85,598 | 85,598 | |
EQUITY | |||
Series A and B redeemable preferred stock, par value $0.001 per share; $25 per share liquidation preference; 5,350,000 shares authorized and 2,264,000 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively (3) | [3] | 2 | 2 |
Senior common stock, par value $0.001 per share; 950,000 shares authorized; and 863,177 and 866,259 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively (3) | [3] | 1 | 1 |
Common stock, par value $0.001 per share, 87,700,000 shares authorized and 29,957,594 and 29,254,899 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively (3) | [3] | 30 | 29 |
Additional paid in capital | 573,868 | 559,977 | |
Accumulated other comprehensive income | (870) | (148) | |
Distributions in excess of accumulated earnings | (319,402) | (310,117) | |
TOTAL STOCKHOLDERS' EQUITY | 253,629 | 249,744 | |
OP Units held by Non-controlling OP Unitholders | 4,662 | 4,675 | |
TOTAL EQUITY | 258,291 | 254,419 | |
TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY | $ 935,020 | $ 938,775 | |
[1] | Refer to Note 2 “Related-Party Transactions” | ||
[2] | Refer to Note 7 “Commitments and Contingencies” | ||
[3] | Refer to Note 8 “Equity and Mezzanine Equity” |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Senior common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Senior common stock, shares authorized | 950,000 | 950,000 |
Senior common stock, shares issued | 863,177 | 866,259 |
Senior common stock, shares outstanding | 863,177 | 866,259 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 87,700,000 | 87,700,000 |
Common stock, shares issued | 29,957,594 | 29,254,899 |
Common stock, shares outstanding | 29,957,594 | 29,254,899 |
Series D Preferred Stock | ||
Redeemable preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Redeemable preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Redeemable preferred stock, shares authorized | 6,000,000 | 6,000,000 |
Redeemable preferred stock, shares issued | 3,509,555 | 3,509,555 |
Redeemable preferred stock, shares outstanding | 3,509,555 | 3,509,555 |
Series A and B Preferred Stock | ||
Redeemable preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Redeemable preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Redeemable preferred stock, shares authorized | 5,350,000 | 5,350,000 |
Redeemable preferred stock, shares issued | 2,264,000 | 2,264,000 |
Redeemable preferred stock, shares outstanding | 2,264,000 | 2,264,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Operating revenues | |||
Lease revenue | $ 28,137 | $ 26,353 | |
Total operating revenues | 28,137 | 26,353 | |
Operating expenses | |||
Depreciation and amortization | 13,010 | 11,586 | |
Property operating expenses | 3,068 | 2,792 | |
Base management fee | [1] | 1,267 | 1,295 |
Incentive fee | [1] | 900 | 700 |
Administration fee | [1] | 400 | 400 |
General and administrative | 657 | 646 | |
Total operating expenses | 19,266 | 17,402 | |
Other (expense) income | |||
Interest expense | (7,231) | (6,213) | |
Gain on sale of real estate, net | 2,952 | 1,844 | |
Other income | 81 | 23 | |
Total other expense, net | (4,198) | (4,346) | |
Net income | 4,673 | 4,605 | |
Net income attributable to OP Units held by Non-controlling OP Unitholders | (45) | 0 | |
Net income attributable to the Company | 4,628 | 4,605 | |
Distributions attributable to Series A, B and D preferred stock | (2,612) | (2,582) | |
Distributions attributable to senior common stock | (224) | (232) | |
Net income available to common stockholders | $ 1,792 | $ 1,791 | |
Earnings per weighted average share of common stock - basic & diluted | |||
Earnings available to common shareholders (in dollars per share) | $ 0.06 | $ 0.06 | |
Weighted average shares of common stock outstanding | |||
Basic and Diluted (in shares) | 29,516,870 | 28,420,995 | |
Earnings per weighted average share of senior common stock (in dollars per share) | $ 0.26 | $ 0.26 | |
Weighted average shares of senior common stock outstanding - basic (in shares) | 864,303 | 895,222 | |
Comprehensive income | |||
Change in unrealized (loss) gain related to interest rate hedging instruments, net | $ (722) | $ 495 | |
Other Comprehensive (loss) income | (722) | 495 | |
Comprehensive income | 3,951 | 5,100 | |
Comprehensive income attributable to OP Units held by Non-controlling OP Unitholders | (45) | 0 | |
Total comprehensive income attributable to the Company | $ 3,906 | $ 5,100 | |
[1] | Refer to Note 2 “Related-Party Transactions” |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 4,673 | $ 4,605 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 13,010 | 11,586 |
Gain on sale of real estate, net | (2,952) | (1,844) |
Amortization of deferred financing costs | 456 | 394 |
Amortization of deferred rent asset and liability, net | (293) | (261) |
Amortization of discount and premium on assumed debt, net | 16 | (69) |
Asset retirement obligation expense | 32 | 30 |
Operating changes in assets and liabilities | ||
Increase in other assets | (743) | (1,445) |
Increase in deferred rent receivable | (581) | (704) |
(Decrease) increase in accounts payable, accrued expenses, and amount due to Adviser and Administrator | (84) | 57 |
Decrease in right-of-use asset from operating leases | 50 | 0 |
Decrease in operating lease liabilities | (50) | 0 |
(Decrease) increase in other liabilities | (796) | 655 |
Leasing commissions paid | (138) | (378) |
Net cash provided by operating activities | 12,600 | 12,626 |
Cash flows from investing activities: | ||
Acquisition of real estate and related intangible assets | (6,315) | (14,341) |
Improvements of existing real estate | (829) | (925) |
Proceeds from sale of real estate | 6,318 | 10,773 |
Receipts from lenders for funds held in escrow | 991 | 517 |
Payments to lenders for funds held in escrow | (482) | (656) |
Receipts from tenants for reserves | 624 | 603 |
Payments to tenants from reserves | (271) | (70) |
Deposits on future acquisitions | (565) | (300) |
Deposits applied against acquisition of real estate investments | 215 | 300 |
Net cash used in investing activities | (314) | (4,099) |
Cash flows from financing activities: | ||
Proceeds from issuance of equity | 14,292 | 1,603 |
Offering costs paid | (179) | (26) |
Retirement of senior common stock | 0 | (34) |
Borrowings under mortgage notes payable | 10,640 | 9,380 |
Payments for deferred financing costs | (279) | (212) |
Principal repayments on mortgage notes payable | (6,692) | (19,092) |
Borrowings from revolving credit facility | 13,700 | 35,200 |
Repayments on revolving credit facility | (31,500) | (23,900) |
Decrease in security deposits | (141) | (26) |
Distributions paid for common, senior common, preferred stock and Non-controlling OP Unitholders | (14,192) | (13,474) |
Net used in financing activities | (14,351) | (10,581) |
Net decrease in cash, cash equivalents, and restricted cash | (2,065) | (2,054) |
Cash, cash equivalents, and restricted cash at beginning of period | 9,082 | 9,080 |
Cash, cash equivalents, and restricted cash at end of period | 7,017 | 7,026 |
NON-CASH INVESTING AND FINANCING INFORMATION | ||
Tenant funded fixed asset improvements | 1,015 | 27 |
Unrealized (loss) gain related to interest rate hedging instruments, net | (722) | 495 |
Right-of-use asset from operating leases | 5,998 | 0 |
Operating lease liability | (5,998) | 0 |
Capital improvements and leasing commissions included in accounts payable and accrued expenses | $ 239 | $ 613 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - Schedule of Cash, Cash Equivalents and Restricted Cash - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents | $ 4,314 | $ 4,123 |
Restricted cash | 2,703 | 2,903 |
Total cash, cash equivalents, and restricted cash shown in the consolidated statement of cash flows | $ 7,017 | $ 7,026 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Basis of Presentation and Significant Accounting Policies | Organization, Basis of Presentation and Significant Accounting Policies Gladstone Commercial Corporation is a real estate investment trust (“REIT”) that was incorporated under the General Corporation Law of the State of Maryland on February 14, 2003. We focus on acquiring, owning and managing primarily office and industrial properties. On a selective basis, we may make long term industrial and office mortgage loans; however, we do not have any mortgage loans currently outstanding. Subject to certain restrictions and limitations, our business is managed by Gladstone Management Corporation, a Delaware corporation (the “Adviser”), and administrative services are provided by Gladstone Administration, LLC, a Delaware limited liability company (the “Administrator”), each pursuant to a contractual arrangement with us. Our Adviser and Administrator collectively employ all of our personnel and pay their salaries, benefits, and other general expenses directly. Gladstone Commercial Corporation conducts substantially all of its operations through a subsidiary, Gladstone Commercial Limited Partnership, a Delaware limited partnership (the “Operating Partnership”). All references herein to “we,” “our,” “us” and the “Company” mean Gladstone Commercial Corporation and its consolidated subsidiaries, except where it is made clear that the term means only Gladstone Commercial Corporation. Interim Financial Information Our interim financial statements are prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and in accordance with Article 10 of Regulation S-X. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with GAAP are omitted. The year-end balance sheet data presented herein was derived from audited financial statements, but does not include all disclosures required by GAAP. In the opinion of our management, all adjustments, consisting solely of normal recurring accruals, necessary for the fair statement of financial statements for the interim period, have been included. The interim financial statements and notes thereto should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 , as filed with the U.S. Securities and Exchange Commission on February 13, 2019 . The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for other interim periods or for the full fiscal year. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. Critical Accounting Policies The preparation of our financial statements in accordance with GAAP, requires management to make judgments that are subjective in nature to make certain estimates and assumptions. Application of these accounting policies involves the exercise of judgment regarding the use of assumptions as to future uncertainties, and as a result, actual results could materially differ from these estimates. A summary of all of our significant accounting policies is provided in Note 1, “Organization, Basis of Presentation and Significant Accounting Policies,” to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 . There were no material changes to our critical accounting policies during the three months ended March 31, 2019 . Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance regarding the recognition of revenue from contracts with customers. Under this guidance, an entity will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires improved disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. We adopted this guidance for our annual and interim periods beginning January 1, 2018 and used the modified retrospective method, under which the cumulative effect of initially applying the guidance is recognized at the date of initial application. Our adoption of this guidance did not have a material impact on our consolidated financial statements. Further, as discussed below, we adopted the new guidance regarding the principles for the recognition measurement, presentation and disclosure of leases on January 1, 2019. The new revenue standard will apply to executory costs and other components of revenue due under leases that are deemed to be non-lease components (examples include common area maintenance and provision of utilities), even when the revenue for such activities is not separately stipulated in the lease. Revenue from these non-lease components, which were previously recognized on a straight-line basis under previous lease guidance, are recognized under the new revenue guidance as the related services are delivered. As a result, while our total revenue recognized over the lease term would not differ under the new guidance, the revenue recognition pattern could be different. The new leasing guidance allows for an accounting election to account for each separate lease component and its associated nonlease components as a single lease component. As a lessor, we have made an accounting election to account for each separate lease component and its associated nonlease components as a single lease component. As a result of this election, our revenue recognition pattern for our leasing arrangements will be consistent with how we recognized lease revenue prior to our adoption of the new leasing standard. In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, “Leases: Amendments to the FASB Accounting Standards Codification” (“ASU 2016-02”). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. We adopted ASU 2016-02, as amended, as of January 1, 2019, which resulted in the recording of additional right-of-use assets from operating leases and operating lease liabilities of approximately $6.0 million for the four operating ground lease arrangements with terms greater than one year for which we are the lessee. We adopted the modified retrospective method, where we recorded the cumulative effect of applying the guidance as of January 1, 2019. We also adopted the full suite of practical expedients provided under this guidance, whereby we are not reassessing whether a contract is or contains a lease, the lease classification and the initial direct costs incurred upon onset of our leases. We have also elected to adopt the hindsight practical expedient whereby we can use hindsight to determine the lease term as of the date of implementation, and we adopted the land easements practical expedient where we do not have to assess whether existing or expired land easements contain a lease. We analyzed our operating ground leases on the date of implementation and identified any option periods we believed were appropriate to include in the lease term, and discounted the future lease payments using a discount rate equivalent to a treasury rate with a similar lease term plus a spread ranging from 2.50% to 2.60% . This spread was determined by reviewing market premiums over treasuries for fully securitized assets. Three of our ground leases have fixed rental charges, and one has variable charges that are driven by the consumer price index. Three of our ground leases have options to extend, and one ground lease has multiple early termination options. We will include option periods or exclude termination options in future lease payments for ground leases located in our target markets. |
Related-Party Transactions
Related-Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions Gladstone Management and Gladstone Administration We are externally managed pursuant to contractual arrangements with our Adviser and our Administrator, which collectively employ all of our personnel and pay their salaries, benefits, and other general expenses directly. Both our Adviser and Administrator are affiliates of ours, as their parent company is owned and controlled by Mr. David Gladstone, our chairman and chief executive officer. Two of our executive officers, Mr. Gladstone and Mr. Terry Lee Brubaker (our vice chairman and chief operating officer) serve as directors and executive officers of our Adviser and our Administrator. Our president, Mr. Robert Cutlip, is an executive managing director of our Adviser. Mr. Michael LiCalsi, our general counsel and secretary, also serves as our Administrator’s president, general counsel and secretary. We have entered into an advisory agreement with our Adviser, as amended from time to time (the “Advisory Agreement”), and an administration agreement with our Administrator (the “Administration Agreement”). The services and fees under the Advisory Agreement and Administration Agreement are described below. As of March 31, 2019 and December 31, 2018 , $ 2.6 million and $2.5 million , respectively, were collectively due to our Adviser and Administrator. Base Management Fee On January 8, 2019, we entered into a Fifth Amended and Restated Investment Advisory Agreement with the Adviser, effective as of October 1, 2018 to clarify that the agreement’s definition of Total Equity includes outstanding OP Units held by the Operating Partnership’s non-controlling limited partners (“Non-controlling OP Unitholders”). Our entrance into the Advisory Agreement and each amendment thereto has been approved unanimously by our Board of Directors. Our Board of Directors reviews and considers renewing the agreement with our Adviser each July. During its July 2018 meeting, our Board of Directors reviewed and renewed the Advisory Agreement for an additional year, through August 31, 2019. Under the Advisory Agreement, the calculation of the annual base management fee equals 1.5% of our Total Equity, which is our total stockholders’ equity plus total mezzanine equity (before giving effect to the base management fee and incentive fee), adjusted to exclude the effect of any unrealized gains or losses that do not affect realized net income (including impairment charges), adjusted for any one-time events and certain non-cash items (the later to occur for a given quarter only upon the approval of our Compensation Committee), and adjusted to include OP Units held by Non-controlling OP Unitholders. The fee is calculated and accrued quarterly as 0.375% per quarter of such Total Equity figure. Our Adviser does not charge acquisition or disposition fees when we acquire or dispose of properties, as is common in other externally managed REITs; however, our Adviser may earn fee income from our borrowers, tenants or other sources. For the three months ended March 31, 2019 and 2018 , we recorded a base management fee of $1.3 million and $1.3 million , respectively. Incentive Fee Pursuant to the Advisory Agreement, the calculation of the incentive fee rewards the Adviser in circumstances where our quarterly Core FFO (defined at the end of this paragraph), before giving effect to any incentive fee, or pre-incentive fee Core FFO, exceeds 2.0% quarterly, or 8.0% annualized, of adjusted total stockholders’ equity (after giving effect to the base management fee but before giving effect to the incentive fee). We refer to this as the hurdle rate. The Adviser will receive 15.0% of the amount of our pre-incentive fee Core FFO that exceeds the hurdle rate. However, in no event shall the incentive fee for a particular quarter exceed by 15.0% (the cap) the average quarterly incentive fee paid by us for the previous four quarters (excluding quarters for which no incentive fee was paid). Core FFO (as defined in the Advisory Agreement) is GAAP net income (loss) available to common stockholders, excluding the incentive fee, depreciation and amortization, any realized and unrealized gains, losses or other non-cash items recorded in net income (loss) available to common stockholders for the period, and one-time events pursuant to changes in GAAP. For the three months ended March 31, 2019 and 2018 , we recorded an incentive fee of $0.9 million and $0.7 million , respectively. The Adviser did not waive any portion of the incentive fee for the three months ended March 31, 2019 or 2018 , respectively. Capital Gains Fee Under the Advisory Agreement, we will pay to the Adviser a capital gains-based incentive fee that will be calculated and payable in arrears as of the end of each fiscal year (or upon termination of the Advisory Agreement). In determining the capital gains fee, we will calculate aggregate realized capital gains and aggregate realized capital losses for the applicable time period. For this purpose, aggregate realized capital gains and losses, if any, equals the realized gain or loss calculated by the difference between the sales price of the property, less any costs to sell the property and the current gross value of the property (equal to the property’s original acquisition price plus any subsequent non-reimbursed capital improvements) of the disposed property. At the end of the fiscal year, if this number is positive, then the capital gain fee payable for such time period shall equal 15.0% of such amount. No capital gain fee was recognized during the three months ended March 31, 2019 or 2018 . Termination Fee The Advisory Agreement includes a termination fee whereby, in the event of our termination of the agreement without cause (with 120 days’ prior written notice and the vote of at least two-thirds of our independent directors), a termination fee would be payable to the Adviser equal to two times the sum of the average annual base management fee and incentive fee earned by the Adviser during the 24-month period prior to such termination. A termination fee is also payable if the Adviser terminates the Advisory Agreement after we have defaulted and applicable cure periods have expired. The Advisory Agreement may also be terminated for cause by us (with 30 days’ prior written notice and the vote of at least two-thirds of our independent directors), with no termination fee payable. Cause is defined in the agreement to include if the Adviser breaches any material provisions thereof, the bankruptcy or insolvency of the Adviser, dissolution of the Adviser and fraud or misappropriation of funds. Administration Agreement Under the terms of the Administration Agreement, we pay separately for our allocable portion of the Administrator’s overhead expenses in performing its obligations to us including, but not limited to, rent and our allocable portion of the salaries and benefits expenses of our Administrator’s employees, including, but not limited to, our chief financial officer, treasurer, chief compliance officer, general counsel and secretary (who also serves as our Administrator’s president, general counsel and secretary), and their respective staffs. Our allocable portion of the Administrator’s expenses are generally derived by multiplying our Administrator’s total expenses by the approximate percentage of time the Administrator’s employees perform services for us in relation to their time spent performing services for all companies serviced by our Administrator under contractual agreements. We believe this approach helps approximate fees paid by us to actual services performed by the Administrator for us. For the three months ended March 31, 2019 and 2018 , we recorded an administration fee of $0.4 million and $0.4 million , respectively. Gladstone Securities Gladstone Securities, LLC, (“Gladstone Securities”), is a privately held broker dealer registered with the Financial Industry Regulatory Authority and insured by the Securities Investor Protection Corporation. Gladstone Securities is an affiliate of ours, as its parent company is owned and controlled by David Gladstone, our chairman and chief executive officer. Mr. Gladstone also serves on the board of managers of Gladstone Securities. Mortgage Financing Arrangement Agreement We entered into an agreement with Gladstone Securities, effective June 18, 2013, for it to act as our non-exclusive agent to assist us with arranging mortgage financing for properties we own (the “Financing Arrangement Agreement”). In connection with this engagement, Gladstone Securities will, from time to time, continue to solicit the interest of various commercial real estate lenders or recommend to us third party lenders offering credit products or packages that are responsive to our needs. We pay Gladstone Securities a financing fee in connection with the services it provides to us for securing mortgage financing on any of our properties. The amount of these financing fees, which are payable upon closing of the financing, are based on a percentage of the amount of the mortgage, generally ranging from 0.15% to a maximum of 1.0% of the mortgage obtained. The amount of the financing fees may be reduced or eliminated, as determined by us and Gladstone Securities, after taking into consideration various factors, including, but not limited to, the involvement of any third party brokers and market conditions. We paid financing fees to Gladstone Securities of $0.02 million and $0.02 million during the three months ended March 31, 2019 and 2018 , respectively, which are included in mortgage notes payable, net, in the condensed consolidated balance sheets, or 0.15% and 0.25% , respectively, of the mortgage principal secured and/or extended. Our Board of Directors renewed the Financing Arrangement Agreement for an additional year, through August 31, 2019 , at its July 2018 meeting. |
Earnings Per Share of Common St
Earnings Per Share of Common Stock | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share of Common Stock | Earnings Per Share of Common Stock The following tables set forth the computation of basic and diluted earnings per share of common stock for the three months ended March 31, 2019 and 2018 . The OP Units held by Non-controlling OP Unitholders (which may be redeemed for shares of common stock) have been excluded from the diluted earnings per share calculations, as there would be no effect on the amounts since the Non-controlling OP Unitholders’ share of income would also be added back to net income. Net income figures are presented net of such non-controlling interests in the earnings per share calculation. We computed basic earnings per share for the three months ended March 31, 2019 and 2018 using the weighted average number of shares outstanding during the respective periods. Diluted earnings per share for the three months ended March 31, 2019 and 2018 reflects additional shares of common stock related to our convertible senior common stock (the “Senior Common Stock”), if the effect would be dilutive, that would have been outstanding if dilutive potential shares of common stock had been issued, as well as an adjustment to net income available to common stockholders as applicable to common stockholders that would result from their assumed issuance (dollars in thousands, except per share amounts). For the three months ended March 31, 2019 2018 Calculation of basic earnings per share of common stock: Net income available to common stockholders $ 1,792 $ 1,791 Denominator for basic weighted average shares of common stock (1) 29,516,870 28,420,995 Basic earnings per share of common stock $ 0.06 $ 0.06 Calculation of diluted earnings per share of common stock: Net income available to common stockholders $ 1,792 $ 1,791 Add: income impact of assumed conversion of senior common stock (2) — — Net income available to common stockholders plus assumed conversions (2) $ 1,792 $ 1,791 Denominator for basic weighted average shares of common stock (1) 29,516,870 28,420,995 Effect of convertible Senior Common Stock (2) — — Denominator for diluted weighted average shares of common stock (2) 29,516,870 28,420,995 Diluted earnings per share of common stock $ 0.06 $ 0.06 (1) The weighted average number of OP Units held by Non-controlling OP Unitholders was 742,937 for the three months ended March 31, 2019 . The Company was the sole holder of OP Units for all periods prior to October 30, 2018 . (2) We excluded convertible shares of Senior Common Stock of 721,872 and 745,000 from the calculation of diluted earnings per share for the three months ended March 31, 2019 and 2018 , respectively, because they were anti-dilutive. |
Real Estate and Intangible Asse
Real Estate and Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate [Abstract] | |
Real Estate and Intangible Assets | Real Estate and Intangible Assets Real Estate The following table sets forth the components of our investments in real estate as of March 31, 2019 and December 31, 2018 , excluding real estate held for sale as of December 31, 2018 (dollars in thousands): March 31, 2019 December 31, 2018 Real estate: Land $ 126,698 $ 125,905 Building and improvements 762,026 755,584 Tenant improvements 65,254 65,160 Accumulated depreciation (186,107 ) (178,257 ) Real estate, net $ 767,871 $ 768,392 Real estate depreciation expense on building and tenant improvements was $ 8.0 million and $7.3 million for the three months ended March 31, 2019 and 2018 , respectively. Acquisitions We acquired two properties during the three months ended March 31, 2019 , and one property during the three months ended March 31, 2018 . The acquisitions are summarized below (dollars in thousands): Three Months Ended Square Footage Lease Term Purchase Price Acquisition Expenses Annualized GAAP Rent March 31, 2019 (1) 60,850 12.2 Years $ 6,315 $ 130 (3) $ 516 March 31, 2018 (2) 127,444 9.8 Years 14,341 91 (3) 1,087 (1) On February 8, 2019 , we acquired a 26,050 square foot property in a suburb of Philadelphia, Pennsylvania, for $2.7 million . The annualized GAAP rent on the 15.1 year lease is $0.2 million . On February 28, 2019 , we acquired a 34,800 square foot property in Indianapolis, Indiana for $3.6 million . The annualized GAAP rent on the 10.0 year lease is $0.3 million . (2) On March 9, 2018 , we acquired a 127,444 square foot property in Vance, Alabama for $14.3 million . The annualized GAAP rent on the 9.8 year lease is $1.1 million . (3) We accounted for these transactions under ASU 2017-01, “Clarifying the Definition of a Business.” As a result, we treated our acquisitions during the three months ended March 31, 2019 and 2018 as asset acquisitions rather than business combinations. As a result of this treatment, we capitalized $0.1 million and $0.1 million , respectively, of acquisition costs that would otherwise have been expensed under business combination treatment. We determined the fair value of assets acquired and liabilities assumed related to the properties acquired during the three months ended March 31, 2019 and 2018 as follows (dollars in thousands): Three months ended March 31, 2019 Three months ended March 31, 2018 Acquired assets and liabilities Purchase price Purchase price Land $ 723 $ 459 Building 4,541 11,609 Tenant Improvements 93 615 In-place Leases 432 509 Leasing Costs 307 534 Customer Relationships 196 566 Above Market Leases 23 49 Total Purchase Price $ 6,315 $ 14,341 Significant Real Estate Activity on Existing Assets During the three months ended March 31, 2019 and 2018 , we executed two and one new leases, respectively, which are summarized below (dollars in thousands): Three Months Ended Aggregate Square Footage Weighted Average Remaining Lease Term Aggregate Annualized GAAP Rent Aggregate Leasing Commissions March 31, 2019 130,240 6.2 years $ 1,187 $ 71 March 31, 2018 34,441 3.6 years 97 14 Future Lease Payments Future operating lease payments from tenants under non-cancelable leases, excluding tenant reimbursement of expenses, for the nine months ending December 31, 2019 and each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands): Year Tenant Lease Payments Nine Months Ending 2019 $ 77,289 2020 97,758 2021 90,374 2022 83,723 2023 75,744 2024 66,554 Thereafter 217,638 $ 709,080 We account for all of our real estate leasing arrangements as operating leases. A majority of our leases are subject to fixed rental increases, but a small subset of our lease portfolio has variable lease payments that are driven by the consumer price index. Many of our tenants have renewal options in their respective leases, but we seldom include option periods in the determination of lease term as we generally will not enter into leasing arrangements with bargain renewal options. A small number of tenants have termination options. Future minimum lease payments from tenants under non-cancelable leases, excluding tenant reimbursement of expenses and excluding real estate held for sale as of December 31, 2018 , for each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands): Year Tenant Lease Payments 2019 $ 103,322 2020 97,302 2021 89,057 2022 82,336 2023 74,337 Thereafter 279,424 $ 725,778 In accordance with the lease terms, substantially all operating expenses are required to be paid by the tenant; however, we would be required to pay operating expenses on the respective properties in the event the tenants fail to pay them. Intangible Assets The following table summarizes the carrying value of intangible assets, liabilities and the accumulated amortization for each intangible asset and liability class as of March 31, 2019 and December 31, 2018 , excluding real estate held for sale as of December 31, 2018 (dollars in thousands): March 31, 2019 December 31, 2018 Lease Intangibles Accumulated Amortization Lease Intangibles Accumulated Amortization In-place leases $ 84,326 $ (42,388 ) $ 83,894 $ (40,445 ) Leasing costs 60,049 (29,436 ) 59,671 (28,092 ) Customer relationships 60,650 (25,154 ) 60,455 (24,035 ) $ 205,025 $ (96,978 ) $ 204,020 $ (92,572 ) Deferred Rent Receivable/(Liability) Accumulated (Amortization)/Accretion Deferred Rent Receivable/(Liability) Accumulated (Amortization)/Accretion Above market leases $ 14,575 $ (9,208 ) $ 14,551 $ (8,981 ) Below market leases and deferred revenue (30,822 ) 13,051 (29,807 ) 12,502 $ (16,247 ) $ 3,843 $ (15,256 ) $ 3,521 Total amortization expense related to in-place leases, leasing costs and customer relationship lease intangible assets was $ 5.0 million and $4.2 million for the three months ended March 31, 2019 and 2018 , respectively, and is included in depreciation and amortization expense in the condensed consolidated statements of operations and comprehensive income. Total amortization related to above-market lease values was $ 0.3 million and $0.2 million for the three months ended March 31, 2019 and 2018 , respectively, and is included in lease revenue in the condensed consolidated statements of operations and comprehensive income. Total amortization related to below-market lease values was $ 0.6 million and $0.5 million for the three months ended March 31, 2019 and 2018 , respectively, and is included in lease revenue in the condensed consolidated statements of operations and comprehensive income. The weighted average amortization periods in years for the intangible assets acquired during the three months ended March 31, 2019 and 2018 were as follows: Intangible Assets & Liabilities 2019 2018 In-place leases 13.0 9.8 Leasing costs 13.0 9.8 Customer relationships 17.9 14.8 Above market leases 10.0 9.8 All intangible assets & liabilities 14.5 11.1 |
Real Estate Dispositions, Held
Real Estate Dispositions, Held for Sale and Impairment Charges | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate [Abstract] | |
Real Estate Dispositions, Held for Sale and Impairment Charges | Real Estate Dispositions, Held for Sale and Impairment Charges Real Estate Dispositions During the three months ended March 31, 2019 , we continued to execute our capital recycling program, whereby we sell properties outside of our core markets and redeploy proceeds to either fund property acquisitions in our target secondary growth markets, or repay outstanding debt. We expect to continue to execute our capital recycling plan and sell non-core properties as reasonable disposition opportunities become available. During the three months ended March 31, 2019 , we sold one non-core property, located in Maitland, Florida, which is detailed in the table below (dollars in thousands): Square Footage Sold Sales Price Sales Costs Gain on Sale of Real Estate, net 50,000 $ 6,850 $ 532 $ 2,952 Our disposition during the three months ended March 31, 2019 was not classified as a discontinued operation because it did not represent a strategic shift in operations, nor will it have a major effect on our operations and financial results. Accordingly, the operating results of this property is included within continuing operations for all periods reported. The table below summarizes the components of operating income from the real estate and related assets disposed of during the three months ended March 31, 2019 , and 2018 (dollars in thousands): For the three months ended March 31, 2019 2018 Operating revenue $ 245 $ 250 Operating expense 785 267 Other income, net 2,614 (1) (83 ) (Expense) income from real estate and related assets sold $ 2,074 $ (100 ) (1) Includes a $3.0 million gain on sale of real estate, net on one property. Real Estate Held for Sale At March 31, 2019 , we did not have any properties classified as held for sale. At December 31, 2018 , we had one property classified as held for sale, located in Maitland, Florida. This property was sold during the three months ended March 31, 2019 . The table below summarizes the components of the assets and liabilities held for sale reflected on the accompanying condensed consolidated balance sheets (dollars in thousands): December 31, 2018 Assets Held for Sale Real estate, at cost $ 3,173 Less: accumulated depreciation 218 Total real estate held for sale, net 2,955 Lease intangibles, net 1,105 Deferred rent receivable, net 91 Total Assets Held for Sale $ 4,151 Impairment Charges We evaluated our portfolio for triggering events to determine if any of our held and used assets were impaired during the three months ended March 31, 2019 and did no t identify any held and used assets which were impaired. We continue to evaluate our properties on a quarterly basis for changes that could create the need to record impairment. Future impairment losses may result, and could be significant, should market conditions deteriorate in the markets in which we hold our assets or we are unable to secure leases at terms that are favorable to us, which could impact the estimated cash flow of our properties over the period in which we plan to hold our properties. Additionally, changes in management’s decisions to either own and lease long-term or sell a particular asset will have an impact on this analysis. We did not recognize an impairment charge during the three months ended March 31, 2018 . The property held for sale was reviewed through our held for sale carrying value analysis, during the three months ended March 31, 2018 , and we concluded that the fair market value less selling costs was greater than the carrying value of the property. We sold this property during the year ended December 31, 2018 . |
Mortgage Notes Payable and Cred
Mortgage Notes Payable and Credit Facility | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Mortgage Notes Payable and Credit Facility | Mortgage Notes Payable and Credit Facility Our mortgage notes payable and Credit Facility as of March 31, 2019 and December 31, 2018 are summarized below (dollars in thousands): Encumbered properties at Carrying Value at Stated Interest Rates at Scheduled Maturity Dates at March 31, 2019 March 31, 2019 December 31, 2018 March 31, 2019 March 31, 2019 Mortgage and other secured loans: Fixed rate mortgage loans 50 $ 389,501 $ 385,051 (1) (2) Variable rate mortgage loans 18 60,158 60,659 (3) (2) Premiums and discounts, net - (285 ) (301 ) N/A N/A Deferred financing costs, mortgage loans, net - (3,962 ) (4,063 ) N/A N/A Total mortgage notes payable, net 68 $ 445,412 $ 441,346 (4) Variable rate revolving credit facility 33 (6) $ 32,800 $ 50,600 LIBOR + 1.75% 10/27/2021 Deferred financing costs, revolving credit facility - (465 ) (516 ) N/A N/A Total revolver, net 33 $ 32,335 $ 50,084 Variable rate term loan facility - (6) $ 75,000 $ 75,000 LIBOR + 1.70% 10/27/2022 Deferred financing costs, term loan facility - (347 ) (371 ) N/A N/A Total term loan, net N/A $ 74,653 $ 74,629 Total mortgage notes payable and credit facility 101 $ 552,400 $ 566,059 (5) (1) Interest rates on our fixed rate mortgage notes payable vary from 3.55% to 6.63% . (2) We have 48 mortgage notes payable with maturity dates ranging from 4/22/2019 through 7/1/2045 . (3) Interest rates on our variable rate mortgage notes payable vary from one month LIBOR + 2.25% to one month LIBOR + 2.75% . At March 31, 2019 , one month LIBOR was approximately 2.49% . (4) The weighted average interest rate on the mortgage notes outstanding at March 31, 2019 was approximately 4.69% . (5) The weighted average interest rate on all debt outstanding at March 31, 2019 was approximately 4.60% . (6) The amount we may draw under our senior unsecured revolving credit facility and term loan facility is based on a percentage of the fair value of a combined pool of 33 unencumbered properties as of March 31, 2019 . N/A - Not Applicable Mortgage Notes Payable As of March 31, 2019 , we had 48 mortgage notes payable, collateralized by a total of 68 properties with a net book value of $647.0 million . We have limited recourse liabilities that could result from any one or more of the following circumstances: a borrower voluntarily filing for bankruptcy, improper conveyance of a property, fraud or material misrepresentation, misapplication or misappropriation of rents, security deposits, insurance proceeds or condemnation proceeds, or physical waste or damage to the property resulting from a borrower’s gross negligence or willful misconduct. We have full recourse for $10.2 million of the mortgages notes payable, net, or 2.3% of the outstanding balance. We will also indemnify lenders against claims resulting from the presence of hazardous substances or activity involving hazardous substances in violation of environmental laws on a property. During the three months ended March 31, 2019 , we partially repaid one mortgage collateralized by three properties, releasing one of the collateralized properties which was sold on January 31, 2019 , which is summarized below (dollars in thousands): Fixed Rate Debt Repaid Interest Rate on Fixed Rate Debt Repaid $ 3,530 3.86 % During the three months ended March 31, 2019 , we issued one mortgage, collateralized by one property, which is summarized in the table below (dollars in thousands): Aggregate Fixed Rate Debt Issued or Assumed Weighted Average Interest Rate on Fixed Rate Debt $ 10,640 (1) 4.70% (1) We issued $10.6 million of fixed rate debt in connection with one property acquired on December 27, 2018 with a maturity date of February 8, 2029 . The interest rate is fixed at 4.70% for the first seven years of the mortgage. After the fixed interest rate period expires, we have the option to adjust the interest rate to a fixed interest rate equal to 1.8% plus the three year treasury rate per annum, or a variable interest rate equal to 1.8% plus the 30 day LIBOR rate per annum. We made payments of $0.3 million and $0.2 million for deferred financing costs during the three months ended March 31, 2019 and 2018 , respectively. Scheduled principal payments of mortgage notes payable for the nine months ending December 31, 2019 , and each of the five succeeding fiscal years and thereafter are as follows (dollars in thousands): Year Scheduled Principal Payments Nine Months Ending December 31, 2019 $ 56,820 2020 32,238 2021 37,259 2022 97,805 2023 69,721 2024 19,009 Thereafter 136,807 Total $ 449,659 (1) (1) This figure does not include $0.3 million of premiums and discounts, net, and $4.0 million of deferred financing costs, which are reflected in mortgage notes payable, net on the condensed consolidated balance sheets. We believe we will be able to address all mortgage notes payable maturing over the next 12 months through a combination of refinancing our existing indebtedness, cash from operations, proceeds from one or more equity offerings and availability on our Credit Facility. Interest Rate Cap and Interest Rate Swap Agreements We have entered into interest rate cap agreements that cap the interest rate on certain of our variable-rate debt and we have assumed or entered into interest rate swap agreements in which we hedged our exposure to variable interest rates by agreeing to pay fixed interest rates to our respective counterparty. We have adopted the fair value measurement provisions for our financial instruments recorded at fair value. The fair value guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Generally, we will estimate the fair value of our interest rate caps and interest rate swaps, in the absence of observable market data, using estimates of value including estimated remaining life, counterparty credit risk, current market yield and interest rate spreads of similar securities as of the measurement date. At March 31, 2019 and December 31, 2018 , our interest rate cap agreements and interest rate swap were valued using Level 2 inputs. The fair value of the interest rate cap agreements is recorded in other assets on our accompanying condensed consolidated balance sheets. We record changes in the fair value of the interest rate cap agreements quarterly based on the current market valuations at quarter end. If the interest rate cap qualifies for hedge accounting, the change in the estimated fair value is recorded to accumulated other comprehensive income to the extent that it is effective, with any ineffective portion recorded to interest expense in our condensed consolidated statements of operations and comprehensive income. If the interest rate cap does not qualify for hedge accounting, or if it is determined the hedge is ineffective, any change in the fair value is recognized in interest expense in our consolidated statements of operations and comprehensive income. The following table summarizes the interest rate caps at March 31, 2019 and December 31, 2018 (dollars in thousands): March 31, 2019 December 31, 2018 Aggregate Cost Aggregate Notional Amount Aggregate Fair Value Aggregate Notional Amount Aggregate Fair Value $ 1,105 (1) $ 116,991 $ 248 $ 134,678 $ 622 (1) We have entered into various interest rate cap agreements on variable rate debt with LIBOR caps ranging from 2.50% to 3.25% . We have assumed or entered into interest rate swap agreements in connection with certain of our acquisitions, whereby we will pay our counterparty a fixed rate interest rate on a monthly basis, and receive payments from our counterparty equivalent to the stipulated floating rate. The fair value of our interest rate swap agreements are recorded in other assets or other liabilities on our accompanying condensed consolidated balance sheets. We have designated our interest rate swaps as cash flow hedges, and we record changes in the fair value of the interest rate swap agreement to accumulated other comprehensive income on the condensed consolidated balance sheets. We record changes in fair value on a quarterly basis, using current market valuations at quarter end. The following table summarizes our interest rate swaps at March 31, 2019 and December 31, 2018 (dollars in thousands): March 31, 2019 December 31, 2018 Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability $ 24,595 $ 256 $ (589 ) $ 24,732 $ 451 $ (396 ) The following tables present the impact of our derivative instruments in the condensed consolidated financial statements (dollars in thousands): Amount of Gain (Loss), net recognized in Comprehensive Income Three Months Ended March 31, 2019 2018 Derivatives in cash flow hedging relationships Interest rate caps $ (333 ) $ 373 Interest rate swaps (389 ) 122 Total $ (722 ) $ 495 The following table sets forth certain information regarding our derivative instruments (dollars in thousands): Asset Derivatives Fair Value at Derivatives Designated as Hedging Instruments Balance Sheet Location March 31, 2019 December 31, 2018 Interest rate caps Other assets $ 226 $ 552 Interest rate swaps Other assets 256 451 Interest rate swaps Other liabilities (589 ) (396 ) Derivatives Not Designated as Hedging Instruments Interest rate caps Other assets $ 22 $ 70 Total derivatives $ (85 ) $ 677 The fair value of all mortgage notes payable outstanding as of March 31, 2019 was $450.4 million , as compared to the carrying value stated above of $449.7 million . The fair value is calculated based on a discounted cash flow analysis, using management’s estimate of market interest rates on long-term debt with comparable terms and loan to value ratios. The fair value was calculated using Level 3 inputs of the hierarchy established by ASC 820, “Fair Value Measurements and Disclosures.” Credit Facility On August 7, 2013, we procured our senior unsecured revolving credit facility (“Revolver”) with KeyBank National Association (“KeyBank”) (serving as revolving lender, a letter of credit issuer and an administrative agent). In October 2015, we expanded our Revolver to $85.0 million and entered into a term loan facility (“Term Loan”) whereby we added a $25.0 million , five -year Term Loan subject to the same leverage tiers as the Revolver, with the interest rate at each leverage tier being five basis points lower than that of the Revolver. We have the option to repay the Term Loan in full, or in part, at any time without penalty or premium prior to the maturity date. We refer to the Revolver and Term Loan collectively herein as the Credit Facility. On October 27, 2017, we amended this Credit Facility, increasing the Term Loan from $25.0 million , to $75.0 million , with the Revolver commitment remaining at $85.0 million . The Term Loan has a new five -year term, with a maturity date of October 27, 2022, and the Revolver has a new four -year term, with a maturity date of October 27, 2021. The interest rate for the Credit Facility was reduced by 25 basis points at each of the leverage tiers. We entered into multiple interest rate cap agreements on the amended Term Loan, which cap LIBOR at 2.75% in order to hedge our exposure to variable interest rates. We used the net proceeds of the amended Credit Facility to repay all previously existing borrowings under the Revolver. We incurred fees of approximately $0.9 million in connection with the Credit Facility amendment. The bank syndicate is now comprised of KeyBank, Fifth Third Bank, US Bank National Association and The Huntington National Bank. As of March 31, 2019 , there was $107.8 million outstanding under our Credit Facility at a weighted average interest rate of approximately 4.21% and $7.4 million outstanding under letters of credit at a weighted average interest rate of 1.75% . As of March 31, 2019 , the maximum additional amount we could draw under the Revolver was $39.5 million . We were in compliance with all covenants under the Credit Facility as of March 31, 2019 . The amount outstanding under the Credit Facility approximates fair value as of March 31, 2019 . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Ground Leases We are obligated as lessee under four ground leases. Future lease payments due under the terms of these leases as of March 31, 2019 are as follows (dollars in thousands): Year Future Lease Payments Due Under Operating Leases Nine Months Ending December 31, 2019 $ 349 2020 466 2021 477 2022 489 2023 492 2024 493 Thereafter 7,799 Total anticipated lease payments $ 10,565 Less: amount representing interest (4,617 ) Present value of lease payments $ 5,948 Rental expense incurred for properties with ground lease obligations during the three months ended March 31, 2019 and 2018 was $0.1 million and $0.1 million , respectively. Our ground leases are treated as operating leases and rental expenses are reflected in property operating expenses on the condensed consolidated statements of operations and comprehensive income. Future minimum rental payments due under the terms of these leases as of December 31, 2018 , are as follows (dollars in thousands): For the year ended December 31, Minimum Rental Payments Due 2019 $ 465 2020 466 2021 392 2022 319 2023 322 Thereafter 3,914 $ 5,878 Letters of Credit As of March 31, 2019 , there was $7.4 million outstanding under letters of credit. These letters of credit are not reflected on our condensed consolidated balance sheets. |
Equity and Mezzanine Equity
Equity and Mezzanine Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Equity and Mezzanine Equity | Equity and Mezzanine Equity Stockholders’ Equity The following table summarizes the changes in our equity for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, Series A and B Preferred Stock 2019 2018 Balance, beginning of period $ 2 $ 2 Issuance of Series A and B preferred stock, net — — Balance, end of period $ 2 $ 2 Senior Common Stock Balance, beginning of period $ 1 $ 1 Issuance of senior common stock, net — — Balance, end of period $ 1 $ 1 Common Stock Balance, beginning of period $ 29 $ 28 Issuance of common stock, net 1 — Balance, end of period $ 30 $ 28 Additional Paid in Capital Balance, beginning of period $ 559,977 $ 534,790 Issuance of Series A and B preferred stock and common stock, net 14,111 643 Retirement of senior common stock, net — (34 ) Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership (220 ) — Balance, end of period $ 573,868 $ 535,399 Accumulated Other Comprehensive Income Balance, beginning of period $ (148 ) $ 35 Comprehensive income (722 ) 495 Balance, end of period $ (870 ) $ 530 Distributions in Excess of Accumulated Earnings Balance, beginning of period $ (310,117 ) $ (268,058 ) Distributions declared to common, senior common, and preferred stockholders (13,913 ) (13,474 ) Net income 4,628 4,605 Balance, end of period $ (319,402 ) $ (276,927 ) Total Stockholders' Equity Balance, beginning of period $ 249,744 $ 266,798 Issuance of Series A and B preferred stock and common stock, net 14,112 643 Retirement of senior common stock, net — (34 ) Distributions declared to common, senior common, and preferred stockholders (13,913 ) (13,474 ) Comprehensive income (722 ) 495 Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership (220 ) — Net income 4,628 4,605 Balance, end of period $ 253,629 $ 259,033 Non-Controlling Interest Balance, beginning of period $ 4,675 $ — Distributions declared to Non-controlling OP Unit holders (278 ) — Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership 220 — Net income 45 — Balance, end of period $ 4,662 $ — Total Equity $ 258,291 $ 259,033 Distributions We paid the following distributions per share for the three months ended March 31, 2019 and 2018 : For the three months ended March 31, 2019 2018 Common Stock and Non-controlling OP Units $ 0.375 $ 0.375 Senior Common Stock 0.2625 0.2625 Series A Preferred Stock 0.4843749 0.4843749 Series B Preferred Stock 0.46875 0.46875 Series D Preferred Stock 0.4374999 0.4374999 Recent Activity Common Stock ATM Program During the three months ended March 31, 2019 , we sold 0.7 million shares of common stock, raising $14.1 million in net proceeds under our open market sales agreement with Cantor Fitzgerald (the “Common Stock ATM Program”). As of March 31, 2019 , we had remaining capacity to sell up to $55.6 million of common stock under the Common Stock ATM Program. Series A and B Preferred Stock ATM Programs Under another open market sales agreement with Cantor Fitzgerald (the “Series A and B Preferred ATM Program”), we may, from time to time, offer to sell (i) shares of our 7.75% Series A Cumulative Redeemable Preferred Stock (“Series A Preferred”), and (ii) shares of our 7.50% Series B Cumulative Redeemable Preferred Stock (“Series B Preferred”), having an aggregate offering price of up to $40.0 million , through Cantor Fitzgerald, acting as sales agent and/or principal. We did not sell any shares of our Series A Preferred or Series B Preferred during the three months ended March 31, 2019 . As of March 31, 2019 , we had remaining capacity to sell up to $37.2 million of preferred stock under the Series A and B Preferred ATM Program. Mezzanine Equity Our 7.00% Series D Cumulative Redeemable Preferred Stock (“Series D Preferred”) is classified as mezzanine equity on our condensed consolidated balance sheets because it is redeemable at the option of the shareholder upon a change of control of greater than 50% in accordance with ASC 480-10-S99 “Distinguishing Liabilities from Equity,” which requires mezzanine equity classification for preferred stock issuances with redemption features which are outside of the control of the issuer. A change in control of our company, outside of our control, is only possible if a tender offer is accepted by over 90% of our shareholders. All other change in control situations would require input from our Board of Directors. We will periodically evaluate the likelihood that a change of control greater than 50% will take place, and if we deem this probable, we would adjust the Series D Preferred presented in mezzanine equity to their redemption value, with the offset to gain (loss) on extinguishment. We currently believe the likelihood of a change of control greater than 50% is remote. Under a third open market sales agreement with Cantor Fitzgerald (the “Series D Preferred ATM Program”), we may, from time to time, offer to sell shares of our Series D Preferred, having an aggregate offering price of up to $50.0 million , through Cantor Fitzgerald, acting as sales agent and/or principal. During the three months ended March 31, 2019 , we did not sell any shares of our Series D Preferred under our Series D Preferred ATM Program. As of March 31, 2019 , we had remaining capacity to sell up to $ 18.6 million of Series D Preferred under the Series D Preferred ATM Program. Amendment to Articles of Incorporation On April 11, 2018, we filed with the Maryland State Department of Assessments and Taxation an Articles Supplementary reclassifying 3,500,000 authorized but unissued shares of our convertible senior common stock (the “Senior Common Stock”), as authorized but unissued shares of our common stock. As a result of the reclassification, there were 57,969 authorized but unissued shares of Senior Common Stock. On April 11, 2018, we also filed with the Maryland State Department of Assessments and Taxation an Articles of Amendment to increase the number of shares of capital stock we have authority to issue to 100,000,000 and authorized common stock to 87,700,000 shares. Universal Shelf Registration Statement On January 11, 2019, we filed a universal registration statement on Form S-3, File No. 333-229209, and an amendment thereto on Form-S-3/A on January 24, 2019 (collectively referred to as the “Universal Shelf”). The Universal Shelf became effective on February 13, 2019 and replaces our prior universal shelf registration statement. The Universal Shelf allows us to issue up to $500.0 million of securities. As of March 31, 2019, we had the ability to issue up to $489.2 million under the Universal Shelf. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Distributions On April 9, 2019 , our Board of Directors declared the following monthly distributions for the months of April , May and June of 2019 : Record Date Payment Date Common Stock and Non-controlling OP Unit Distributions per Share Series A Preferred Distributions per Share Series B Preferred Distributions per Share Series D Preferred Distributions per Share April 22, 2019 April 30, 2019 $ 0.125 $ 0.1614583 $ 0.15625 $ 0.1458333 May 22, 2019 May 31, 2019 0.125 0.1614583 0.15625 0.1458333 June 19, 2019 June 28, 2019 0.125 0.1614583 0.15625 0.1458333 $ 0.375 $ 0.4843749 $ 0.46875 $ 0.4374999 Senior Common Stock Distributions Payable to the Holders of Record During the Month of: Payment Date Distribution per Share April May 7, 2019 $ 0.0875 May June 7, 2019 0.0875 June July 8, 2019 0.0875 $ 0.2625 ATM Equity Activity Subsequent to March 31, 2019 and through April 30, 2019 , we raised $6.8 million in net proceeds from the sale of 332,709 shares of Common Stock under our Common Stock ATM Program. We made no sales under our Series D Preferred ATM Program or Series A and B Preferred Stock ATM Program subsequent to March 31, 2019 and through April 30, 2019 . Acquisition Activity On April 5, 2019, we purchased a 383,000 square feet, two industrial property portfolio located in a suburb of Orlando, Florida for $19.2 million . These properties are fully leased to one tenant for 20 years on a triple net lease basis. Annualized GAAP rent for this portfolio is $1.5 million . On April 30, 2019, we purchased a 54,430 square feet, industrial property located in a suburb of Columbus, Ohio for $3.1 million . This property is fully leased to one tenant for seven years on a triple net lease basis. Annualized GAAP rent for this property is $0.2 million . |
Organization, Basis of Presen_2
Organization, Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Financial Information | Interim Financial Information Our interim financial statements are prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and in accordance with Article 10 of Regulation S-X. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with GAAP are omitted. The year-end balance sheet data presented herein was derived from audited financial statements, but does not include all disclosures required by GAAP. In the opinion of our management, all adjustments, consisting solely of normal recurring accruals, necessary for the fair statement of financial statements for the interim period, have been included. The interim financial statements and notes thereto should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 , as filed with the U.S. Securities and Exchange Commission on February 13, 2019 . The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for other interim periods or for the full fiscal year. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. |
Critical Accounting Policies | Critical Accounting Policies The preparation of our financial statements in accordance with GAAP, requires management to make judgments that are subjective in nature to make certain estimates and assumptions. Application of these accounting policies involves the exercise of judgment regarding the use of assumptions as to future uncertainties, and as a result, actual results could materially differ from these estimates. A summary of all of our significant accounting policies is provided in Note 1, “Organization, Basis of Presentation and Significant Accounting Policies,” to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 . There were no material changes to our critical accounting policies during the three months ended March 31, 2019 . |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance regarding the recognition of revenue from contracts with customers. Under this guidance, an entity will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires improved disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. We adopted this guidance for our annual and interim periods beginning January 1, 2018 and used the modified retrospective method, under which the cumulative effect of initially applying the guidance is recognized at the date of initial application. Our adoption of this guidance did not have a material impact on our consolidated financial statements. Further, as discussed below, we adopted the new guidance regarding the principles for the recognition measurement, presentation and disclosure of leases on January 1, 2019. The new revenue standard will apply to executory costs and other components of revenue due under leases that are deemed to be non-lease components (examples include common area maintenance and provision of utilities), even when the revenue for such activities is not separately stipulated in the lease. Revenue from these non-lease components, which were previously recognized on a straight-line basis under previous lease guidance, are recognized under the new revenue guidance as the related services are delivered. As a result, while our total revenue recognized over the lease term would not differ under the new guidance, the revenue recognition pattern could be different. The new leasing guidance allows for an accounting election to account for each separate lease component and its associated nonlease components as a single lease component. As a lessor, we have made an accounting election to account for each separate lease component and its associated nonlease components as a single lease component. As a result of this election, our revenue recognition pattern for our leasing arrangements will be consistent with how we recognized lease revenue prior to our adoption of the new leasing standard. In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, “Leases: Amendments to the FASB Accounting Standards Codification” (“ASU 2016-02”). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. We adopted ASU 2016-02, as amended, as of January 1, 2019, which resulted in the recording of additional right-of-use assets from operating leases and operating lease liabilities of approximately $6.0 million for the four operating ground lease arrangements with terms greater than one year for which we are the lessee. We adopted the modified retrospective method, where we recorded the cumulative effect of applying the guidance as of January 1, 2019. We also adopted the full suite of practical expedients provided under this guidance, whereby we are not reassessing whether a contract is or contains a lease, the lease classification and the initial direct costs incurred upon onset of our leases. We have also elected to adopt the hindsight practical expedient whereby we can use hindsight to determine the lease term as of the date of implementation, and we adopted the land easements practical expedient where we do not have to assess whether existing or expired land easements contain a lease. We analyzed our operating ground leases on the date of implementation and identified any option periods we believed were appropriate to include in the lease term, and discounted the future lease payments using a discount rate equivalent to a treasury rate with a similar lease term plus a spread ranging from 2.50% to 2.60% . This spread was determined by reviewing market premiums over treasuries for fully securitized assets. Three of our ground leases have fixed rental charges, and one has variable charges that are driven by the consumer price index. Three of our ground leases have options to extend, and one ground lease has multiple early termination options. We will include option periods or exclude termination options in future lease payments for ground leases located in our target markets. |
Fair Value Measurements and Disclosures | We have adopted the fair value measurement provisions for our financial instruments recorded at fair value. The fair value guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Generally, we will estimate the fair value of our interest rate caps and interest rate swaps, in the absence of observable market data, using estimates of value including estimated remaining life, counterparty credit risk, current market yield and interest rate spreads of similar securities as of the measurement date. |
Earnings Per Share of Common _2
Earnings Per Share of Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share of Common Stock | The following tables set forth the computation of basic and diluted earnings per share of common stock for the three months ended March 31, 2019 and 2018 . The OP Units held by Non-controlling OP Unitholders (which may be redeemed for shares of common stock) have been excluded from the diluted earnings per share calculations, as there would be no effect on the amounts since the Non-controlling OP Unitholders’ share of income would also be added back to net income. Net income figures are presented net of such non-controlling interests in the earnings per share calculation. We computed basic earnings per share for the three months ended March 31, 2019 and 2018 using the weighted average number of shares outstanding during the respective periods. Diluted earnings per share for the three months ended March 31, 2019 and 2018 reflects additional shares of common stock related to our convertible senior common stock (the “Senior Common Stock”), if the effect would be dilutive, that would have been outstanding if dilutive potential shares of common stock had been issued, as well as an adjustment to net income available to common stockholders as applicable to common stockholders that would result from their assumed issuance (dollars in thousands, except per share amounts). For the three months ended March 31, 2019 2018 Calculation of basic earnings per share of common stock: Net income available to common stockholders $ 1,792 $ 1,791 Denominator for basic weighted average shares of common stock (1) 29,516,870 28,420,995 Basic earnings per share of common stock $ 0.06 $ 0.06 Calculation of diluted earnings per share of common stock: Net income available to common stockholders $ 1,792 $ 1,791 Add: income impact of assumed conversion of senior common stock (2) — — Net income available to common stockholders plus assumed conversions (2) $ 1,792 $ 1,791 Denominator for basic weighted average shares of common stock (1) 29,516,870 28,420,995 Effect of convertible Senior Common Stock (2) — — Denominator for diluted weighted average shares of common stock (2) 29,516,870 28,420,995 Diluted earnings per share of common stock $ 0.06 $ 0.06 (1) The weighted average number of OP Units held by Non-controlling OP Unitholders was 742,937 for the three months ended March 31, 2019 . The Company was the sole holder of OP Units for all periods prior to October 30, 2018 . (2) We excluded convertible shares of Senior Common Stock of 721,872 and 745,000 from the calculation of diluted earnings per share for the three months ended March 31, 2019 and 2018 , respectively, because they were anti-dilutive. |
Real Estate and Intangible As_2
Real Estate and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate [Abstract] | |
Components of Investments in Real Estate | The following table sets forth the components of our investments in real estate as of March 31, 2019 and December 31, 2018 , excluding real estate held for sale as of December 31, 2018 (dollars in thousands): March 31, 2019 December 31, 2018 Real estate: Land $ 126,698 $ 125,905 Building and improvements 762,026 755,584 Tenant improvements 65,254 65,160 Accumulated depreciation (186,107 ) (178,257 ) Real estate, net $ 767,871 $ 768,392 |
Acquisitions | We acquired two properties during the three months ended March 31, 2019 , and one property during the three months ended March 31, 2018 . The acquisitions are summarized below (dollars in thousands): Three Months Ended Square Footage Lease Term Purchase Price Acquisition Expenses Annualized GAAP Rent March 31, 2019 (1) 60,850 12.2 Years $ 6,315 $ 130 (3) $ 516 March 31, 2018 (2) 127,444 9.8 Years 14,341 91 (3) 1,087 (1) On February 8, 2019 , we acquired a 26,050 square foot property in a suburb of Philadelphia, Pennsylvania, for $2.7 million . The annualized GAAP rent on the 15.1 year lease is $0.2 million . On February 28, 2019 , we acquired a 34,800 square foot property in Indianapolis, Indiana for $3.6 million . The annualized GAAP rent on the 10.0 year lease is $0.3 million . (2) On March 9, 2018 , we acquired a 127,444 square foot property in Vance, Alabama for $14.3 million . The annualized GAAP rent on the 9.8 year lease is $1.1 million . (3) We accounted for these transactions under ASU 2017-01, “Clarifying the Definition of a Business.” As a result, we treated our acquisitions during the three months ended March 31, 2019 and 2018 as asset acquisitions rather than business combinations. As a result of this treatment, we capitalized $0.1 million and $0.1 million , respectively, of acquisition costs that would otherwise have been expensed under business combination treatment. |
Fair Value of Assets Acquired and Liabilities Assumed | We determined the fair value of assets acquired and liabilities assumed related to the properties acquired during the three months ended March 31, 2019 and 2018 as follows (dollars in thousands): Three months ended March 31, 2019 Three months ended March 31, 2018 Acquired assets and liabilities Purchase price Purchase price Land $ 723 $ 459 Building 4,541 11,609 Tenant Improvements 93 615 In-place Leases 432 509 Leasing Costs 307 534 Customer Relationships 196 566 Above Market Leases 23 49 Total Purchase Price $ 6,315 $ 14,341 |
Summary of Lease on Property | During the three months ended March 31, 2019 and 2018 , we executed two and one new leases, respectively, which are summarized below (dollars in thousands): Three Months Ended Aggregate Square Footage Weighted Average Remaining Lease Term Aggregate Annualized GAAP Rent Aggregate Leasing Commissions March 31, 2019 130,240 6.2 years $ 1,187 $ 71 March 31, 2018 34,441 3.6 years 97 14 |
Future Operating Lease Payments from Tenants under Non-Cancelable Leases | Future minimum lease payments from tenants under non-cancelable leases, excluding tenant reimbursement of expenses and excluding real estate held for sale as of December 31, 2018 , for each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands): Year Tenant Lease Payments 2019 $ 103,322 2020 97,302 2021 89,057 2022 82,336 2023 74,337 Thereafter 279,424 $ 725,778 Future operating lease payments from tenants under non-cancelable leases, excluding tenant reimbursement of expenses, for the nine months ending December 31, 2019 and each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands): Year Tenant Lease Payments Nine Months Ending 2019 $ 77,289 2020 97,758 2021 90,374 2022 83,723 2023 75,744 2024 66,554 Thereafter 217,638 $ 709,080 |
Carrying Value of Intangible Assets and Accumulated Amortization | The following table summarizes the carrying value of intangible assets, liabilities and the accumulated amortization for each intangible asset and liability class as of March 31, 2019 and December 31, 2018 , excluding real estate held for sale as of December 31, 2018 (dollars in thousands): March 31, 2019 December 31, 2018 Lease Intangibles Accumulated Amortization Lease Intangibles Accumulated Amortization In-place leases $ 84,326 $ (42,388 ) $ 83,894 $ (40,445 ) Leasing costs 60,049 (29,436 ) 59,671 (28,092 ) Customer relationships 60,650 (25,154 ) 60,455 (24,035 ) $ 205,025 $ (96,978 ) $ 204,020 $ (92,572 ) Deferred Rent Receivable/(Liability) Accumulated (Amortization)/Accretion Deferred Rent Receivable/(Liability) Accumulated (Amortization)/Accretion Above market leases $ 14,575 $ (9,208 ) $ 14,551 $ (8,981 ) Below market leases and deferred revenue (30,822 ) 13,051 (29,807 ) 12,502 $ (16,247 ) $ 3,843 $ (15,256 ) $ 3,521 |
Weighted Average Amortization Periods | The weighted average amortization periods in years for the intangible assets acquired during the three months ended March 31, 2019 and 2018 were as follows: Intangible Assets & Liabilities 2019 2018 In-place leases 13.0 9.8 Leasing costs 13.0 9.8 Customer relationships 17.9 14.8 Above market leases 10.0 9.8 All intangible assets & liabilities 14.5 11.1 |
Real Estate Dispositions, Hel_2
Real Estate Dispositions, Held for Sale and Impairment Charges (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate [Abstract] | |
Summary of Sold Properties | During the three months ended March 31, 2019 , we sold one non-core property, located in Maitland, Florida, which is detailed in the table below (dollars in thousands): Square Footage Sold Sales Price Sales Costs Gain on Sale of Real Estate, net 50,000 $ 6,850 $ 532 $ 2,952 |
Components of Operating Income from Real Estate and Related Assets Disposed | The table below summarizes the components of operating income from the real estate and related assets disposed of during the three months ended March 31, 2019 , and 2018 (dollars in thousands): For the three months ended March 31, 2019 2018 Operating revenue $ 245 $ 250 Operating expense 785 267 Other income, net 2,614 (1) (83 ) (Expense) income from real estate and related assets sold $ 2,074 $ (100 ) (1) Includes a $3.0 million gain on sale of real estate, net on one property. |
Components of Assets and Liabilities Held for Sale | The table below summarizes the components of the assets and liabilities held for sale reflected on the accompanying condensed consolidated balance sheets (dollars in thousands): December 31, 2018 Assets Held for Sale Real estate, at cost $ 3,173 Less: accumulated depreciation 218 Total real estate held for sale, net 2,955 Lease intangibles, net 1,105 Deferred rent receivable, net 91 Total Assets Held for Sale $ 4,151 |
Mortgage Notes Payable and Cr_2
Mortgage Notes Payable and Credit Facility (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Company's Mortgage Notes Payable and Line of Credit | Our mortgage notes payable and Credit Facility as of March 31, 2019 and December 31, 2018 are summarized below (dollars in thousands): Encumbered properties at Carrying Value at Stated Interest Rates at Scheduled Maturity Dates at March 31, 2019 March 31, 2019 December 31, 2018 March 31, 2019 March 31, 2019 Mortgage and other secured loans: Fixed rate mortgage loans 50 $ 389,501 $ 385,051 (1) (2) Variable rate mortgage loans 18 60,158 60,659 (3) (2) Premiums and discounts, net - (285 ) (301 ) N/A N/A Deferred financing costs, mortgage loans, net - (3,962 ) (4,063 ) N/A N/A Total mortgage notes payable, net 68 $ 445,412 $ 441,346 (4) Variable rate revolving credit facility 33 (6) $ 32,800 $ 50,600 LIBOR + 1.75% 10/27/2021 Deferred financing costs, revolving credit facility - (465 ) (516 ) N/A N/A Total revolver, net 33 $ 32,335 $ 50,084 Variable rate term loan facility - (6) $ 75,000 $ 75,000 LIBOR + 1.70% 10/27/2022 Deferred financing costs, term loan facility - (347 ) (371 ) N/A N/A Total term loan, net N/A $ 74,653 $ 74,629 Total mortgage notes payable and credit facility 101 $ 552,400 $ 566,059 (5) (1) Interest rates on our fixed rate mortgage notes payable vary from 3.55% to 6.63% . (2) We have 48 mortgage notes payable with maturity dates ranging from 4/22/2019 through 7/1/2045 . (3) Interest rates on our variable rate mortgage notes payable vary from one month LIBOR + 2.25% to one month LIBOR + 2.75% . At March 31, 2019 , one month LIBOR was approximately 2.49% . (4) The weighted average interest rate on the mortgage notes outstanding at March 31, 2019 was approximately 4.69% . (5) The weighted average interest rate on all debt outstanding at March 31, 2019 was approximately 4.60% . (6) The amount we may draw under our senior unsecured revolving credit facility and term loan facility is based on a percentage of the fair value of a combined pool of 33 unencumbered properties as of March 31, 2019 . N/A - Not Applicable |
Schedule of Repaid Debt | During the three months ended March 31, 2019 , we partially repaid one mortgage collateralized by three properties, releasing one of the collateralized properties which was sold on January 31, 2019 , which is summarized below (dollars in thousands): Fixed Rate Debt Repaid Interest Rate on Fixed Rate Debt Repaid $ 3,530 3.86 % |
Summary of Long-Term Mortgages | During the three months ended March 31, 2019 , we issued one mortgage, collateralized by one property, which is summarized in the table below (dollars in thousands): Aggregate Fixed Rate Debt Issued or Assumed Weighted Average Interest Rate on Fixed Rate Debt $ 10,640 (1) 4.70% (1) We issued $10.6 million of fixed rate debt in connection with one property acquired on December 27, 2018 with a maturity date of February 8, 2029 . The interest rate is fixed at 4.70% for the first seven years of the mortgage. After the fixed interest rate period expires, we have the option to adjust the interest rate to a fixed interest rate equal to 1.8% plus the three year treasury rate per annum, or a variable interest rate equal to 1.8% plus the 30 day LIBOR rate per annum. |
Schedule of Principal Payments of Mortgage Notes Payable | Scheduled principal payments of mortgage notes payable for the nine months ending December 31, 2019 , and each of the five succeeding fiscal years and thereafter are as follows (dollars in thousands): Year Scheduled Principal Payments Nine Months Ending December 31, 2019 $ 56,820 2020 32,238 2021 37,259 2022 97,805 2023 69,721 2024 19,009 Thereafter 136,807 Total $ 449,659 (1) (1) This figure does not include $0.3 million of premiums and discounts, net, and $4.0 million of deferred financing costs, which are reflected in mortgage notes payable, net on the condensed consolidated balance sheets. |
Summary of Interest Rate Cap Agreement | The following table summarizes the interest rate caps at March 31, 2019 and December 31, 2018 (dollars in thousands): March 31, 2019 December 31, 2018 Aggregate Cost Aggregate Notional Amount Aggregate Fair Value Aggregate Notional Amount Aggregate Fair Value $ 1,105 (1) $ 116,991 $ 248 $ 134,678 $ 622 (1) We have entered into various interest rate cap agreements on variable rate debt with LIBOR caps ranging from 2.50% to 3.25% . The following table summarizes our interest rate swaps at March 31, 2019 and December 31, 2018 (dollars in thousands): March 31, 2019 December 31, 2018 Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability $ 24,595 $ 256 $ (589 ) $ 24,732 $ 451 $ (396 ) |
Schedule of Derivative Instruments | The following tables present the impact of our derivative instruments in the condensed consolidated financial statements (dollars in thousands): Amount of Gain (Loss), net recognized in Comprehensive Income Three Months Ended March 31, 2019 2018 Derivatives in cash flow hedging relationships Interest rate caps $ (333 ) $ 373 Interest rate swaps (389 ) 122 Total $ (722 ) $ 495 The following table sets forth certain information regarding our derivative instruments (dollars in thousands): Asset Derivatives Fair Value at Derivatives Designated as Hedging Instruments Balance Sheet Location March 31, 2019 December 31, 2018 Interest rate caps Other assets $ 226 $ 552 Interest rate swaps Other assets 256 451 Interest rate swaps Other liabilities (589 ) (396 ) Derivatives Not Designated as Hedging Instruments Interest rate caps Other assets $ 22 $ 70 Total derivatives $ (85 ) $ 677 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Lease Payments Due Under Operating Leases | Future lease payments due under the terms of these leases as of March 31, 2019 are as follows (dollars in thousands): Year Future Lease Payments Due Under Operating Leases Nine Months Ending December 31, 2019 $ 349 2020 466 2021 477 2022 489 2023 492 2024 493 Thereafter 7,799 Total anticipated lease payments $ 10,565 Less: amount representing interest (4,617 ) Present value of lease payments $ 5,948 |
Future Minimum Rental Payments Due under Terms of Leases | Future minimum rental payments due under the terms of these leases as of December 31, 2018 , are as follows (dollars in thousands): For the year ended December 31, Minimum Rental Payments Due 2019 $ 465 2020 466 2021 392 2022 319 2023 322 Thereafter 3,914 $ 5,878 |
Equity and Mezzanine Equity (Ta
Equity and Mezzanine Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Summary of Changes in Stockholders' Equity | The following table summarizes the changes in our equity for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, Series A and B Preferred Stock 2019 2018 Balance, beginning of period $ 2 $ 2 Issuance of Series A and B preferred stock, net — — Balance, end of period $ 2 $ 2 Senior Common Stock Balance, beginning of period $ 1 $ 1 Issuance of senior common stock, net — — Balance, end of period $ 1 $ 1 Common Stock Balance, beginning of period $ 29 $ 28 Issuance of common stock, net 1 — Balance, end of period $ 30 $ 28 Additional Paid in Capital Balance, beginning of period $ 559,977 $ 534,790 Issuance of Series A and B preferred stock and common stock, net 14,111 643 Retirement of senior common stock, net — (34 ) Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership (220 ) — Balance, end of period $ 573,868 $ 535,399 Accumulated Other Comprehensive Income Balance, beginning of period $ (148 ) $ 35 Comprehensive income (722 ) 495 Balance, end of period $ (870 ) $ 530 Distributions in Excess of Accumulated Earnings Balance, beginning of period $ (310,117 ) $ (268,058 ) Distributions declared to common, senior common, and preferred stockholders (13,913 ) (13,474 ) Net income 4,628 4,605 Balance, end of period $ (319,402 ) $ (276,927 ) Total Stockholders' Equity Balance, beginning of period $ 249,744 $ 266,798 Issuance of Series A and B preferred stock and common stock, net 14,112 643 Retirement of senior common stock, net — (34 ) Distributions declared to common, senior common, and preferred stockholders (13,913 ) (13,474 ) Comprehensive income (722 ) 495 Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership (220 ) — Net income 4,628 4,605 Balance, end of period $ 253,629 $ 259,033 Non-Controlling Interest Balance, beginning of period $ 4,675 $ — Distributions declared to Non-controlling OP Unit holders (278 ) — Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership 220 — Net income 45 — Balance, end of period $ 4,662 $ — Total Equity $ 258,291 $ 259,033 |
Dividends Paid | We paid the following distributions per share for the three months ended March 31, 2019 and 2018 : For the three months ended March 31, 2019 2018 Common Stock and Non-controlling OP Units $ 0.375 $ 0.375 Senior Common Stock 0.2625 0.2625 Series A Preferred Stock 0.4843749 0.4843749 Series B Preferred Stock 0.46875 0.46875 Series D Preferred Stock 0.4374999 0.4374999 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Monthly Distributions Declared by Company's Board of Directors | On April 9, 2019 , our Board of Directors declared the following monthly distributions for the months of April , May and June of 2019 : Record Date Payment Date Common Stock and Non-controlling OP Unit Distributions per Share Series A Preferred Distributions per Share Series B Preferred Distributions per Share Series D Preferred Distributions per Share April 22, 2019 April 30, 2019 $ 0.125 $ 0.1614583 $ 0.15625 $ 0.1458333 May 22, 2019 May 31, 2019 0.125 0.1614583 0.15625 0.1458333 June 19, 2019 June 28, 2019 0.125 0.1614583 0.15625 0.1458333 $ 0.375 $ 0.4843749 $ 0.46875 $ 0.4374999 Senior Common Stock Distributions Payable to the Holders of Record During the Month of: Payment Date Distribution per Share April May 7, 2019 $ 0.0875 May June 7, 2019 0.0875 June July 8, 2019 0.0875 $ 0.2625 |
Organization, Basis of Presen_3
Organization, Basis of Presentation and Significant Accounting Policies (Detail) $ in Thousands | Mar. 31, 2019USD ($)agreement | Jan. 01, 2019 | Dec. 31, 2018USD ($) |
Lessee, Lease, Description [Line Items] | |||
Right-of-use assets from operating leases | $ 5,948 | $ 0 | |
Operating lease liabilities | $ 5,948 | $ 0 | |
Number of operating ground lease arrangements | agreement | 4 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Discount rate, basis spread on variable rate | 2.50% | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Discount rate, basis spread on variable rate | 2.60% | ||
ASU 2016-02 | |||
Lessee, Lease, Description [Line Items] | |||
Right-of-use assets from operating leases | $ 6,000 | ||
Operating lease liabilities | $ 6,000 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) | Jan. 10, 2017quarter | Mar. 31, 2019USD ($)officer | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | |||||
Number of executive officers | officer | 2 | ||||
Amount due to Adviser and Administrator | [1] | $ 2,562,000 | $ 2,523,000 | ||
Annual base management fee, in percentage of stockholders' equity, adjusted to unrealized gains or losses (as percent) | 1.50% | ||||
Quarterly base management fee, in percentage of stockholders' equity, adjusted to unrealized gains or losses (as percent) | 0.375% | ||||
Base management fee | [2] | $ 1,267,000 | $ 1,295,000 | ||
Pre-incentive quarterly fee FFO in percentage of common stockholders' equity that will reward the Adviser (as percent) | 2.00% | ||||
Pre-incentive annual fee FFO in percentage of common stockholders' equity that will reward the Adviser (as percent) | 8.00% | ||||
Amount to be paid to Adviser in percentage of pre-incentive fee condition one (as percent) | 15.00% | ||||
Number of quarters used for the cap of average quarterly incentive fees | quarter | 4 | ||||
Incentive fee description | However, in no event shall the incentive fee for a particular quarter exceed by 15.0% (the cap) the average quarterly incentive fee paid by us for the previous four quarters (excluding quarters for which no incentive fee was paid). | ||||
Incentive fee | [2] | $ 900,000 | 700,000 | ||
Portion of incentive fee waived | 0 | 0 | |||
Capital gains-based incentive fee (as percent) | 15.00% | ||||
Capital gain fee | 0 | 0 | |||
Percentage of independent directors required to terminate the Amended Advisory Agreement (as a percent) | 66.67% | ||||
Termination fee payable (as percent) | 200.00% | ||||
Notice period for termination of agreement without cause | 120 days | ||||
Notice period for termination of agreement with cause | 30 days | ||||
Administration fee | [2] | 400,000 | 400,000 | ||
Fees paid | $ 20,000 | $ 20,000 | |||
Financing fee on total secured mortgages percentage (as percent) | 0.15% | 0.25% | |||
Minimum | |||||
Related Party Transaction [Line Items] | |||||
Percentage of the amount of the mortgage (as percent) | 0.15% | ||||
Maximum | |||||
Related Party Transaction [Line Items] | |||||
Percentage of the amount of the mortgage (as percent) | 1.00% | ||||
[1] | Refer to Note 2 “Related-Party Transactions” | ||||
[2] | Refer to Note 2 “Related-Party Transactions” |
Earnings Per Share of Common _3
Earnings Per Share of Common Stock - Basic and Diluted (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Calculation of basic earnings per share of common stock: | ||
Net income available to common stockholders | $ 1,792 | $ 1,791 |
Denominator for basic weighted average shares of common stock (in shares) | 29,516,870 | 28,420,995 |
Basic earnings per share of common stock (in dollars per share) | $ 0.06 | $ 0.06 |
Calculation of diluted earnings per share of common stock: | ||
Net income available to common stockholders | $ 1,792 | $ 1,791 |
Add: income impact of assumed conversion of senior common stock | 0 | 0 |
Net income available to common stockholders plus assumed conversions | $ 1,792 | $ 1,791 |
Denominator for basic weighted average shares of common stock (in shares) | 29,516,870 | 28,420,995 |
Effect of convertible Senior Common Stock (in shares) | 0 | 0 |
Denominator for diluted weighted average shares of common stock (in shares) | 29,516,870 | 28,420,995 |
Diluted earnings per share of common stock (in dollars per share) | $ 0.06 | $ 0.06 |
Number of OP Units held by Non-controlling OP Unitholders (in units) | 742,937 |
Earnings Per Share of Common _4
Earnings Per Share of Common Stock - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Senior Common Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive convertible shares of senior common stock excluded from calculation of diluted earnings per share | 721,872 | 745,000 |
Real Estate and Intangible As_3
Real Estate and Intangible Assets - Components of Investments in Real Estate (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Real estate: | ||
Land | $ 126,698 | $ 125,905 |
Building and improvements | 762,026 | 755,584 |
Tenant improvements | 65,254 | 65,160 |
Accumulated depreciation | (186,107) | (178,257) |
Total real estate, net | $ 767,871 | $ 768,392 |
Real Estate and Intangible As_4
Real Estate and Intangible Assets - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)property | Mar. 31, 2018USD ($)property | |
Real Estate Properties [Line Items] | ||
Number of properties acquired | property | 2 | 1 |
Number of leased properties | property | 2 | 1 |
Total amortization expense related to lease intangible assets | $ 5 | $ 4.2 |
Amortization related to below-market lease | 0.6 | 0.5 |
Above market leases | ||
Real Estate Properties [Line Items] | ||
Amortization related to above-market lease | 0.3 | 0.2 |
Building and Tenant Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate depreciation expense | $ 8 | $ 7.3 |
Real Estate and Intangible As_5
Real Estate and Intangible Assets - Summary of Acquired Properties (Details) $ in Thousands | Mar. 09, 2019USD ($)ft² | Feb. 28, 2019USD ($)ft² | Feb. 08, 2019USD ($)ft² | Mar. 31, 2019USD ($)ft² | Mar. 31, 2018USD ($)ft² |
Business Acquisition [Line Items] | |||||
Purchase Price | $ 6,315 | $ 14,341 | |||
Philadelphia, Pennsylvania | |||||
Business Acquisition [Line Items] | |||||
Square Footage | ft² | 26,050 | ||||
Lease Term | 15 years 23 days | ||||
Purchase Price | $ 2,700 | ||||
Annualized GAAP Rent | $ 200 | ||||
Indianapolis, Indiana | |||||
Business Acquisition [Line Items] | |||||
Square Footage | ft² | 34,800 | ||||
Lease Term | 10 years 1 day | ||||
Purchase Price | $ 3,600 | ||||
Annualized GAAP Rent | $ 300 | ||||
Vance, Alabama | |||||
Business Acquisition [Line Items] | |||||
Square Footage | ft² | 127,444 | ||||
Lease Term | 9 years 9 months 18 days | ||||
Purchase Price | $ 14,300 | ||||
Annualized GAAP Rent | $ 1,100 | ||||
Series of Property Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Square Footage | ft² | 60,850 | 127,444 | |||
Lease Term | 12 years 2 months 12 days | 9 years 9 months 18 days | |||
Purchase Price | $ 6,315 | $ 14,341 | |||
Acquisition Expenses | 100 | 100 | |||
Annualized GAAP Rent | $ 516 | $ 1,087 |
Real Estate and Intangible As_6
Real Estate and Intangible Assets - Business Combinations and Asset Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Business Acquisition [Line Items] | ||
Total Purchase Price | $ 6,315 | $ 14,341 |
Customer relationships | ||
Business Acquisition [Line Items] | ||
Assets Acquired | 196 | 566 |
Above market leases | ||
Business Acquisition [Line Items] | ||
Assets Acquired | 23 | 49 |
Land | ||
Business Acquisition [Line Items] | ||
Assets Acquired | 723 | 459 |
Building | ||
Business Acquisition [Line Items] | ||
Assets Acquired | 4,541 | 11,609 |
Tenant Improvements | ||
Business Acquisition [Line Items] | ||
Assets Acquired | 93 | 615 |
In-place leases | ||
Business Acquisition [Line Items] | ||
Assets Acquired | 432 | 509 |
Leasing costs | ||
Business Acquisition [Line Items] | ||
Assets Acquired | $ 307 | $ 534 |
Real Estate and Intangible As_7
Real Estate and Intangible Assets - Summary of Lease on Property (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)ft² | Mar. 31, 2018USD ($)ft² | |
Real Estate Properties [Line Items] | ||
Aggregate Square Footage | ft² | 130,240 | 34,441 |
Aggregate Annualized GAAP Rent | $ 1,187 | $ 97 |
Aggregate Leasing Commissions | $ 71 | $ 14 |
Weighted average | ||
Real Estate Properties [Line Items] | ||
Lease Term | 6 years 2 months | 3 years 7 months 6 days |
Real Estate and Intangible As_8
Real Estate and Intangible Assets Real Estate and Intangible Assets - Future Operating Lease Payments from Tenants under Non-Cancelable Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Real Estate [Abstract] | ||
Nine Months Ending 2019 | $ 77,289 | $ 103,322 |
2020 | 97,758 | 97,302 |
2021 | 90,374 | 89,057 |
2022 | 83,723 | 82,336 |
2023 | 75,744 | 74,337 |
2024 | 66,554 | |
Thereafter | 217,638 | 279,424 |
Tenant Lease Payments | $ 709,080 | $ 725,778 |
Real Estate and Intangible As_9
Real Estate and Intangible Assets - Carrying Value of Intangible Assets and Accumulated Amortization (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Below market leases and deferred revenue, gross | $ (30,822) | $ (29,807) |
Below market leases and deferred revenue, accumulated amortization | 13,051 | 12,502 |
Lease Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Lease Intangibles | 205,025 | 204,020 |
Accumulated Amortization | (96,978) | (92,572) |
In-place leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Lease Intangibles | 84,326 | 83,894 |
Accumulated Amortization | (42,388) | (40,445) |
Leasing costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Lease Intangibles | 60,049 | 59,671 |
Accumulated Amortization | (29,436) | (28,092) |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Lease Intangibles | 60,650 | 60,455 |
Accumulated Amortization | (25,154) | (24,035) |
Above market leases and below market leases and deferred revenue | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets (liabilities), gross | (16,247) | (15,256) |
Finite-lived intangible assets (liabilities), accumulated amortization | 3,843 | 3,521 |
Above market leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Lease Intangibles | 14,575 | 14,551 |
Accumulated Amortization | $ (9,208) | $ (8,981) |
Real Estate and Intangible A_10
Real Estate and Intangible Assets - Weighted Average Amortization Period for Intangible Assets and Liabilities (Details) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 14 years 6 months 11 days | 11 years 1 month 6 days |
In-place leases | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 13 years 15 days | 9 years 9 months 18 days |
Leasing costs | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 13 years 15 days | 9 years 9 months 18 days |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 17 years 10 months 24 days | 14 years 9 months 18 days |
Above market leases | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 10 years 4 days | 9 years 9 months 18 days |
Real Estate Dispositions, Hel_3
Real Estate Dispositions, Held for Sale and Impairment Charges - Additional Information (Detail) - property | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Real Estate Properties [Line Items] | |||
Number of properties sold | 1 | ||
Number of impaired assets, held and used | 0 | ||
Number of impaired assets sold, held for sale | 2 | ||
Maitland, Florida | |||
Real Estate Properties [Line Items] | |||
Number of real estate properties, held for sale | 1 | ||
Disposed of by sale | |||
Real Estate Properties [Line Items] | |||
Number of properties sold | 1 |
Real Estate Dispositions, Hel_4
Real Estate Dispositions, Held for Sale and Impairment Charges - Summary of Property Sold (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)ft² | Mar. 31, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Gain on Sale of Real Estate, net | $ 2,952 | $ 1,844 |
Disposed of by sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Square Footage Sold | ft² | 50,000 | |
Sales Price | $ 6,850 | |
Sales Costs | 532 | |
Gain on Sale of Real Estate, net | $ 2,952 |
Real Estate Dispositions, Hel_5
Real Estate Dispositions, Held for Sale and Impairment Charges - Components of Income from Real Estate and Related Assets Held for Sale (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)property | Mar. 31, 2018USD ($)property | |
Real Estate Properties [Line Items] | ||
Gain on sale of real estate, net | $ 2,952 | $ 1,844 |
Number of properties sold | property | 1 | |
Assets disposed of by sale | ||
Real Estate Properties [Line Items] | ||
Operating revenue | $ 245 | 250 |
Operating expense | 785 | 267 |
Other income, net | 2,614 | (83) |
(Expense) income from real estate and related assets sold | 2,074 | $ (100) |
Gain on sale of real estate, net | $ 2,952 | |
Number of properties sold | property | 1 |
Real Estate Dispositions, Hel_6
Real Estate Dispositions, Held for Sale and Impairment Charges - Components of Assets and Liabilities Held for Sale (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS HELD FOR SALE | ||
Total Assets Held for Sale | $ 0 | $ 4,151 |
Real Estate Held for Sale | ||
ASSETS HELD FOR SALE | ||
Real estate, at cost | 3,173 | |
Less: accumulated depreciation | 218 | |
Total real estate held for sale, net | 2,955 | |
Lease intangibles, net | 1,105 | |
Deferred rent receivable, net | 91 | |
Total Assets Held for Sale | $ 4,151 |
Mortgage Notes Payable and Cr_3
Mortgage Notes Payable and Credit Facility - Company's Mortgage Notes Payable and Line of Credit (Detail) $ in Thousands | Oct. 27, 2017 | Mar. 31, 2019USD ($)property | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |||
Encumbered properties | property | 101 | ||
Total | $ 552,400 | $ 566,059 | |
LIBOR | |||
Debt Instrument [Line Items] | |||
Spread on LIBOR (as percent) | 2.75% | ||
Fixed rate mortgage loans | |||
Debt Instrument [Line Items] | |||
Encumbered properties | property | 50 | ||
Carrying value | $ 389,501 | 385,051 | |
Variable rate mortgage loans | |||
Debt Instrument [Line Items] | |||
Encumbered properties | property | 18 | ||
Carrying value | $ 60,158 | 60,659 | |
Mortgage notes payable | |||
Debt Instrument [Line Items] | |||
Encumbered properties | property | 68 | ||
Carrying value | $ 449,700 | ||
Premiums and discounts (net) | (300) | (301) | |
Deferred financing costs, net | (3,962) | (4,063) | |
Total | $ 445,412 | 441,346 | |
Variable rate revolving credit facility | Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Encumbered properties | property | 33 | ||
Carrying value | $ 32,800 | 50,600 | |
Deferred financing costs, net | (465) | (516) | |
Total | $ 32,335 | 50,084 | |
Scheduled maturity dates | Oct. 27, 2021 | ||
Variable rate revolving credit facility | Revolving credit facility | LIBOR | |||
Debt Instrument [Line Items] | |||
Spread on LIBOR (as percent) | 1.75% | ||
Variable rate term loan facility | |||
Debt Instrument [Line Items] | |||
Carrying value | $ 75,000 | 75,000 | |
Scheduled maturity dates | Oct. 27, 2022 | ||
Variable rate term loan facility | LIBOR | |||
Debt Instrument [Line Items] | |||
Spread on LIBOR (as percent) | 1.70% | ||
Total term loan, net | |||
Debt Instrument [Line Items] | |||
Deferred financing costs, net | $ (347) | (371) | |
Total | $ 74,653 | $ 74,629 |
Mortgage Notes Payable and Cr_4
Mortgage Notes Payable and Credit Facility - Company's Mortgage Notes Payable and Line of Credit Additional Information (Detail) | Oct. 27, 2017 | Mar. 31, 2019mortgageproperty |
Debt Instrument [Line Items] | ||
Weighted average interest rate on debt outstanding (as percent) | 4.69% | |
Encumbered properties | 101 | |
LIBOR | ||
Debt Instrument [Line Items] | ||
Spread on LIBOR (as percent) | 2.75% | |
Variable rate at period end (as percent) | 2.49% | |
Fixed rate mortgage loans | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as percent) | 3.86% | |
Encumbered properties | 50 | |
Fixed rate mortgage loans | Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as percent) | 3.55% | |
Fixed rate mortgage loans | Maximum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as percent) | 6.63% | |
Mortgage notes payable | ||
Debt Instrument [Line Items] | ||
Number of mortgage notes payable | mortgage | 48 | |
Maturity date of mortgage notes payable, start date | Apr. 22, 2019 | |
Maturity date of mortgage notes payable, end date | Jul. 1, 2045 | |
Weighted average interest rate on debt outstanding (as percent) | 4.60% | |
Encumbered properties | 68 | |
Variable rate mortgage loans | ||
Debt Instrument [Line Items] | ||
Encumbered properties | 18 | |
Variable rate mortgage loans | Minimum | LIBOR | ||
Debt Instrument [Line Items] | ||
Spread on LIBOR (as percent) | 2.25% | |
Variable rate mortgage loans | Maximum | LIBOR | ||
Debt Instrument [Line Items] | ||
Spread on LIBOR (as percent) | 2.75% | |
Variable rate revolving credit facility | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Encumbered properties | 33 | |
Variable rate revolving credit facility | LIBOR | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Spread on LIBOR (as percent) | 1.75% |
Mortgage Notes Payable and Cr_5
Mortgage Notes Payable and Credit Facility - Additional Information (Detail) | Oct. 27, 2017USD ($) | Oct. 31, 2015USD ($) | Mar. 31, 2019USD ($)mortgageproperty | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Oct. 05, 2015USD ($) | Aug. 31, 2013USD ($) |
Debt Instrument [Line Items] | |||||||
Number of properties collateralized in mortgage notes payable | property | 101 | ||||||
Number of long-term mortgages repaid | mortgage | 1 | ||||||
Number of properties repaid to collateralized mortgages notes payable | property | 3 | ||||||
Payments of deferred financing costs | $ 279,000 | $ 212,000 | |||||
Fair value of mortgage notes payable | 450,400,000 | ||||||
Maximum borrowing capacity | $ 75,000,000 | $ 25,000,000 | |||||
Extension fee on initial maturity (as percent) | 0.25% | ||||||
Debt instrument fees incurred | $ 900,000 | ||||||
Line of credit outstanding | $ 32,335,000 | $ 50,084,000 | |||||
Weighted average interest rate on debt outstanding (as percent) | 4.69% | ||||||
Term loan facility | |||||||
Debt Instrument [Line Items] | |||||||
Term of debt | 5 years | ||||||
Extension fee on initial maturity (as percent) | 0.05% | ||||||
Revolving credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Term of debt | 4 years | ||||||
Line of credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 85,000,000 | $ 85,000,000 | |||||
Line of credit outstanding | $ 107,800,000 | ||||||
Weighted average interest rate (as percent) | 4.21% | ||||||
Letters of credit, outstanding | $ 7,400,000 | ||||||
Maximum additional amount that can be drawn under Line of Credit | $ 39,500,000 | ||||||
Line of credit | Term loan facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 25,000,000 | ||||||
Term of debt | 5 years | ||||||
Letter of credit | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate on debt outstanding (as percent) | 1.75% | ||||||
Variable rate mortgage loans | |||||||
Debt Instrument [Line Items] | |||||||
Number of properties collateralized in mortgage notes payable | property | 18 | ||||||
Carrying value | $ 60,158,000 | 60,659,000 | |||||
Mortgage notes payable | |||||||
Debt Instrument [Line Items] | |||||||
Number of mortgage notes payable | mortgage | 48 | ||||||
Number of properties collateralized in mortgage notes payable | property | 68 | ||||||
Net book value of collateralized mortgage properties | $ 647,000,000 | ||||||
Recourse amount of mortgage notes payable | $ 10,200,000 | ||||||
Percentage of debt recourse (as percent) | 2.30% | ||||||
Carrying value | $ 449,700,000 | ||||||
Weighted average interest rate on debt outstanding (as percent) | 4.60% | ||||||
Issued and assumed mortgage notes payable | |||||||
Debt Instrument [Line Items] | |||||||
Number of mortgage notes payable | mortgage | 1 | ||||||
Number of properties collateralized in mortgage notes payable | property | 1 | ||||||
Fixed rate mortgage loans | |||||||
Debt Instrument [Line Items] | |||||||
Number of properties collateralized in mortgage notes payable | property | 50 | ||||||
Stated interest rate (as percent) | 3.86% | ||||||
Payments of deferred financing costs | $ 300,000 | $ 200,000 | |||||
Carrying value | $ 389,501,000 | $ 385,051,000 | |||||
LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Spread on LIBOR (as percent) | 2.75% |
Mortgage Notes Payable and Cr_6
Mortgage Notes Payable and Credit Facility - Mortgages Notes Payable (Detail) $ in Thousands | Oct. 27, 2017 | Mar. 31, 2019USD ($)property | Mar. 31, 2018USD ($)property | Dec. 27, 2018property |
Debt Instrument [Line Items] | ||||
Debt Repaid | $ 6,692 | $ 19,092 | ||
Number of properties acquired | property | 2 | 1 | ||
LIBOR | ||||
Debt Instrument [Line Items] | ||||
Spread on LIBOR (as percent) | 2.75% | |||
Fixed rate mortgage loans | ||||
Debt Instrument [Line Items] | ||||
Debt Repaid | $ 3,530 | |||
Stated interest rate (as percent) | 3.86% | |||
New fixed rate mortgage notes payable | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as percent) | 4.70% | |||
Term of debt | 7 years | |||
Aggregate Fixed Rate Debt Issued or Assumed | $ 10,600 | |||
Number of properties acquired | property | 1 | |||
New fixed rate mortgage notes payable | LIBOR | Weighted average | ||||
Debt Instrument [Line Items] | ||||
Spread on LIBOR (as percent) | 1.80% | |||
Variable rate mortgage loans debt extended | ||||
Debt Instrument [Line Items] | ||||
Term of debt | 3 years | |||
Variable rate mortgage loans debt extended | LIBOR | Weighted average | ||||
Debt Instrument [Line Items] | ||||
Spread on LIBOR (as percent) | 1.80% |
Mortgage Notes Payable and Cr_7
Mortgage Notes Payable and Credit Facility - Scheduled Principal Payments of Mortgage Notes Payable (Detail) - Mortgage notes payable - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Nine Months Ending December 31, 2019 | $ 56,820 | |
2020 | 32,238 | |
2021 | 37,259 | |
2022 | 97,805 | |
2023 | 69,721 | |
2024 | 19,009 | |
Thereafter | 136,807 | |
Total | 449,700 | |
Premiums and (discounts), net | (300) | $ (301) |
Deferred financing costs, net | $ 3,962 | $ 4,063 |
Mortgage Notes Payable and Cr_8
Mortgage Notes Payable and Credit Facility - Interest Rate Cap Agreement (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Aggregate Cost | $ 1,105 | |
Aggregate Notional Amount | 116,991 | $ 134,678 |
Aggregate Fair Value | $ 248 | 622 |
Minimum | LIBOR | ||
Debt Instrument [Line Items] | ||
Interest rate (as percent) | 2.50% | |
Maximum | LIBOR | ||
Debt Instrument [Line Items] | ||
Interest rate (as percent) | 3.25% | |
Interest rate swaps | Counterparty | ||
Debt Instrument [Line Items] | ||
Aggregate Notional Amount | $ 24,595 | 24,732 |
Aggregate Fair Value | 256 | 451 |
Aggregate Fair Value Liability | $ (589) | $ (396) |
Mortgage Notes Payable and Cr_9
Mortgage Notes Payable and Credit Facility - Schedule of Derivative Instruments Impact (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in unrealized (loss) gain related to interest rate hedging instruments, net | $ (722) | $ 495 |
Interest rate caps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in unrealized (loss) gain related to interest rate hedging instruments, net | (333) | 373 |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in unrealized (loss) gain related to interest rate hedging instruments, net | $ (389) | $ 122 |
Mortgage Notes Payable and C_10
Mortgage Notes Payable and Credit Facility - Schedule of Derivative Instruments' Information (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Liability | $ 589 | $ 396 |
Derivative Assets (Liabilities), at Fair Value, Net | (85) | 677 |
Interest rate caps | Derivatives Designated as Hedging Instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Asset | 226 | 552 |
Interest rate caps | Derivatives Not Designated as Hedging Instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Asset | 22 | 70 |
Interest rate swaps | Derivatives Designated as Hedging Instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Asset | $ 256 | $ 451 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)lease | Mar. 31, 2018USD ($) | |
Other Commitments [Line Items] | ||
Number of leases | lease | 4 | |
Expenses incurred for the properties listed | $ 0.1 | $ 0.1 |
Line of credit | ||
Other Commitments [Line Items] | ||
Letters of credit, outstanding | $ 7.4 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Lease Payments Due Under Operating Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Operating Lease Liabilities, Payments Due [Abstract] | ||
Nine Months Ending December 31, 2019 | $ 349 | |
2020 | 466 | |
2021 | 477 | |
2022 | 489 | |
2023 | 492 | |
2024 | 493 | |
Thereafter | 7,799 | |
Total anticipated lease payments | 10,565 | |
Less: amount representing interest | (4,617) | |
Operating lease liabilities | $ 5,948 | $ 0 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies - Future Minimum Rental Payments Due under Terms of Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Operating Leased Assets [Line Items] | ||
2019 | $ 77,289 | $ 103,322 |
2020 | 97,758 | 97,302 |
2021 | 90,374 | 89,057 |
2022 | 83,723 | 82,336 |
2023 | 75,744 | 74,337 |
Thereafter | 217,638 | 279,424 |
Tenant Lease Payments | $ 709,080 | 725,778 |
Ground Leases | ||
Operating Leased Assets [Line Items] | ||
2019 | 465 | |
2020 | 466 | |
2021 | 392 | |
2022 | 319 | |
2023 | 322 | |
Thereafter | 3,914 | |
Tenant Lease Payments | $ 5,878 |
Equity and Mezzanine Equity - S
Equity and Mezzanine Equity - Summary of Changes in Stockholders' Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Stockholders' equity, beginning balance | $ 249,744 | ||
Comprehensive income | (722) | $ 495 | |
Net income | 4,673 | 4,605 | |
Stockholders' equity, ending balance | 253,629 | ||
Total Equity | 258,291 | 259,033 | $ 254,419 |
Senior Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Stockholders' equity, beginning balance | 1 | 1 | |
Issuance of Series A and B preferred stock and common stock, net | 0 | 0 | |
Stockholders' equity, ending balance | 1 | 1 | |
Series A and B Preferred Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Stockholders' equity, beginning balance | 2 | 2 | |
Issuance of Series A and B preferred stock and common stock, net | 0 | 0 | |
Stockholders' equity, ending balance | 2 | 2 | |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Stockholders' equity, beginning balance | 29 | 28 | |
Issuance of Series A and B preferred stock and common stock, net | 1 | 0 | |
Stockholders' equity, ending balance | 30 | 28 | |
Additional Paid in Capital | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Stockholders' equity, beginning balance | 559,977 | 534,790 | |
Issuance of Series A and B preferred stock and common stock, net | 14,111 | 643 | |
Retirement of senior common stock, net | 0 | (34) | |
Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership | (220) | 0 | |
Stockholders' equity, ending balance | 573,868 | 535,399 | |
Accumulated Other Comprehensive Income | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Stockholders' equity, beginning balance | (148) | 35 | |
Comprehensive income | (722) | 495 | |
Stockholders' equity, ending balance | (870) | 530 | |
Distributions in Excess of Accumulated Earnings | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Stockholders' equity, beginning balance | (310,117) | (268,058) | |
Distributions declared to common, senior common, preferred stockholders and Non-controlling OP Unit holders | (13,913) | (13,474) | |
Net income | 4,628 | 4,605 | |
Stockholders' equity, ending balance | (319,402) | (276,927) | |
Total Stockholders' Equity | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Stockholders' equity, beginning balance | 249,744 | 266,798 | |
Issuance of Series A and B preferred stock and common stock, net | 14,112 | 643 | |
Retirement of senior common stock, net | 0 | (34) | |
Distributions declared to common, senior common, preferred stockholders and Non-controlling OP Unit holders | (13,913) | (13,474) | |
Comprehensive income | (722) | 495 | |
Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership | (220) | 0 | |
Net income | 4,628 | 4,605 | |
Stockholders' equity, ending balance | 253,629 | 259,033 | |
Non-Controlling Interest | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Stockholders' equity, beginning balance | 4,675 | 0 | |
Distributions declared to common, senior common, preferred stockholders and Non-controlling OP Unit holders | (278) | 0 | |
Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership | 220 | 0 | |
Net income | 45 | 0 | |
Stockholders' equity, ending balance | $ 4,662 | $ 0 |
Equity and Mezzanine Equity - D
Equity and Mezzanine Equity - Dividends Paid (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Senior Common Stock | ||
Dividends Payable [Line Items] | ||
Common Stock, dividends paid per share | $ 0.2625 | $ 0.2625 |
Series A Preferred Stock | ||
Dividends Payable [Line Items] | ||
Preferred Stock, dividends paid per share | 0.4843749 | 0.4843749 |
Series B Preferred Stock | ||
Dividends Payable [Line Items] | ||
Preferred Stock, dividends paid per share | 0.46875 | 0.46875 |
Series D Preferred Stock | ||
Dividends Payable [Line Items] | ||
Preferred Stock, dividends paid per share | 0.4374999 | 0.4374999 |
Common Stock | ||
Dividends Payable [Line Items] | ||
Common Stock, dividends paid per share | $ 0.375 | $ 0.375 |
Equity and Mezzanine Equity - A
Equity and Mezzanine Equity - Additional Information (Detail) - USD ($) | Apr. 11, 2018 | Feb. 29, 2016 | Mar. 31, 2019 | Jan. 11, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | |||||
Shares reclassified to common stock | 3,500,000 | ||||
Senior common stock, authorized but unissued | 57,969 | ||||
Capital stock, shares authorized | 100,000,000 | ||||
Common stock, shares authorized | 87,700,000 | 87,700,000 | 87,700,000 | ||
Series A and B Preferred Stock ATM Programs | |||||
Class of Stock [Line Items] | |||||
Redeemable preferred stock, shares issued (in shares) | 2,264,000 | 2,264,000 | |||
Series D Cumulative Redeemable Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Redeemable preferred stock, dividend rate percentage (as percent) | 7.00% | ||||
Temporary equity, contract terms, minimum vote needed to trigger change in control from tender offer (as percent) | 90.00% | ||||
Cantor Fitzgerald & Co | Preferred Stock | Series A and B Preferred Stock ATM Programs | |||||
Class of Stock [Line Items] | |||||
Redeemable preferred stock, shares issued (in shares) | 0 | ||||
Maximum remaining capacity to sell preferred stock under open market sale agreement | $ 37,200,000 | ||||
Cantor Fitzgerald & Co | Preferred Stock | Series A Cumulative Redeemable Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Redeemable preferred stock, dividend rate percentage (as percent) | 7.75% | ||||
Cantor Fitzgerald & Co | Preferred Stock | Series B Cumulative Redeemable Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Redeemable preferred stock, dividend rate percentage (as percent) | 7.50% | ||||
Maximum aggregate sales price of shares to be issued under open market sale agreement | $ 40,000,000 | ||||
Cantor Fitzgerald & Co | Preferred Stock | Series D Cumulative Redeemable Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Maximum aggregate sales price of shares to be issued under open market sale agreement | 50,000,000 | ||||
Maximum remaining capacity to sell preferred stock under open market sale agreement | $ 18,600,000 | ||||
Common Stock ATM Program | Cantor Fitzgerald & Co | Common Stock | |||||
Class of Stock [Line Items] | |||||
Redeemable preferred stock, shares issued (in shares) | 700,000 | ||||
Consideration received | $ 14,100,000 | ||||
Maximum remaining capacity to sell common stock under open market sale agreement | 55,600,000 | ||||
2019 Universal Shelf | |||||
Class of Stock [Line Items] | |||||
Universal registration statement, amount authorized | $ 489,200,000 | $ 500,000,000 |
Subsequent Events - Monthly Dis
Subsequent Events - Monthly Distributions Declared by Company's Board of Directors (Detail) - $ / shares | Jul. 08, 2019 | Jun. 28, 2019 | Jun. 19, 2019 | Jun. 07, 2019 | May 31, 2019 | May 22, 2019 | May 07, 2019 | Apr. 30, 2019 | Apr. 22, 2019 | Jun. 30, 2019 | May 31, 2019 | Apr. 30, 2019 | Apr. 09, 2019 |
Subsequent event | Series A Preferred Stock | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distribution per share (in dollars per share) | $ 0.4843749 | ||||||||||||
Subsequent event | Series B Preferred Stock | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distribution per share (in dollars per share) | 0.46875 | ||||||||||||
Subsequent event | Series D Preferred Stock | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distribution per share (in dollars per share) | 0.4374999 | ||||||||||||
Subsequent event | Senior Common Stock | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distribution per share (in dollars per share) | 0.2625 | ||||||||||||
Subsequent event | Common Stock | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distribution per share (in dollars per share) | $ 0.375 | ||||||||||||
Subsequent event | April 2019 | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Record Date | Apr. 22, 2019 | ||||||||||||
Payment Date | Apr. 30, 2019 | ||||||||||||
Subsequent event | April 2019 | Series A Preferred Stock | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distribution per share (in dollars per share) | $ 0.1614583 | $ 0.1614583 | |||||||||||
Subsequent event | April 2019 | Series B Preferred Stock | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distribution per share (in dollars per share) | 0.15625 | 0.15625 | |||||||||||
Subsequent event | April 2019 | Series D Preferred Stock | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distribution per share (in dollars per share) | 0.1458333 | $ 0.1458333 | |||||||||||
Subsequent event | April 2019 | Senior Common Stock | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Payable to the Holders of Record During the Month of: | April | ||||||||||||
Payment Date | May 7, 2019 | ||||||||||||
Distribution per share (in dollars per share) | $ 0.0875 | ||||||||||||
Subsequent event | April 2019 | Common Stock | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distribution per share (in dollars per share) | $ 0.125 | $ 0.125 | |||||||||||
Forecast | May 2019 | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Record Date | May 22, 2019 | ||||||||||||
Payment Date | May 31, 2019 | ||||||||||||
Forecast | May 2019 | Series A Preferred Stock | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distribution per share (in dollars per share) | $ 0.1614583 | $ 0.1614583 | |||||||||||
Forecast | May 2019 | Series B Preferred Stock | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distribution per share (in dollars per share) | 0.15625 | 0.15625 | |||||||||||
Forecast | May 2019 | Series D Preferred Stock | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distribution per share (in dollars per share) | 0.1458333 | $ 0.1458333 | |||||||||||
Forecast | May 2019 | Senior Common Stock | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Payable to the Holders of Record During the Month of: | May | ||||||||||||
Payment Date | Jun. 7, 2019 | ||||||||||||
Distribution per share (in dollars per share) | $ 0.0875 | ||||||||||||
Forecast | May 2019 | Common Stock | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distribution per share (in dollars per share) | $ 0.125 | $ 0.125 | |||||||||||
Forecast | June 2019 | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Record Date | Jun. 19, 2019 | ||||||||||||
Payment Date | Jun. 28, 2019 | ||||||||||||
Forecast | June 2019 | Series A Preferred Stock | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distribution per share (in dollars per share) | $ 0.1614583 | ||||||||||||
Forecast | June 2019 | Series B Preferred Stock | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distribution per share (in dollars per share) | 0.15625 | ||||||||||||
Forecast | June 2019 | Series D Preferred Stock | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distribution per share (in dollars per share) | 0.1458333 | ||||||||||||
Forecast | June 2019 | Senior Common Stock | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Payable to the Holders of Record During the Month of: | June | ||||||||||||
Payment Date | Jul. 8, 2019 | ||||||||||||
Distribution per share (in dollars per share) | $ 0.0875 | ||||||||||||
Forecast | June 2019 | Common Stock | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distribution per share (in dollars per share) | $ 0.125 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ in Thousands | Apr. 30, 2019USD ($)ft²tenant | Apr. 05, 2019USD ($)ft²tenant | Apr. 30, 2019USD ($)ft²shares | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) |
Subsequent Event [Line Items] | |||||
Purchase price | $ 6,315 | $ 14,341 | |||
Common Stock | Subsequent event | |||||
Subsequent Event [Line Items] | |||||
Number of shares issued (in shares) | shares | 332,709 | ||||
Series A and B Preferred Stock | Subsequent event | |||||
Subsequent Event [Line Items] | |||||
Number of shares issued (in shares) | shares | 0 | ||||
Orlando, Florida | Subsequent event | |||||
Subsequent Event [Line Items] | |||||
Square Footage | ft² | 383,000 | ||||
Purchase price | $ 19,200 | ||||
Number of tenants | tenant | 1 | ||||
Lease Term | 20 years | ||||
Annualized GAAP Rent | $ 1,500 | ||||
Columbus, Ohio | Subsequent event | |||||
Subsequent Event [Line Items] | |||||
Square Footage | ft² | 54,430 | 54,430 | |||
Purchase price | $ 3,100 | ||||
Number of tenants | tenant | 1 | ||||
Lease Term | 7 years | ||||
Annualized GAAP Rent | $ 200 | ||||
Common Stock ATM Program | Common Stock | Subsequent event | |||||
Subsequent Event [Line Items] | |||||
Consideration received | $ 6,800 |