Cover
Cover - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Aug. 08, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-53650 | |
Entity Registrant Name | Lightstone Value Plus REIT V, Inc. | |
Entity Central Index Key | 0001387061 | |
Entity Tax Identification Number | 20-8198863 | |
Entity Incorporation, State or Country Code | MD | |
Entity Address, Address Line One | 1985 Cedar Bridge Avenue | |
Entity Address, Address Line Two | Suite 1 | |
Entity Address, City or Town | Lakewood | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08701 | |
City Area Code | (888) | |
Local Phone Number | 808-7348 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,100 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Investment property: | ||
Land and improvements | $ 83,822 | $ 83,599 |
Building and improvements | 320,303 | 316,370 |
Furniture, fixtures and equipment | 9,331 | 8,952 |
Gross investment property | 413,456 | 408,921 |
Less accumulated depreciation | (52,497) | (45,915) |
Net investment property | 360,959 | 363,006 |
Cash and cash equivalents | 59,435 | 24,360 |
Marketable securities, available for sale | 3,446 | 3,645 |
Restricted cash | 4,716 | 20,879 |
Note receivable, net | 5,422 | 13,919 |
Prepaid expenses and other assets | 4,252 | 5,690 |
Total Assets | 438,230 | 431,499 |
Liabilities and Stockholders’ Equity | ||
Notes payable, net | 288,997 | 277,598 |
Accounts payable, accrued expenses and other liabilities | 8,617 | 8,031 |
Total liabilities | 297,614 | 285,629 |
Company’s stockholders’ equity: | ||
Preferred stock, $.0001 par value per share; 50.0 million shares authorized, none issued and outstanding | 0 | 0 |
Convertible stock, $.0001 par value per share; 1,000 shares authorized, issued and outstanding | 0 | 0 |
Common stock, $.0001 par value per share; 350.0 million shares authorized, 20.1 million shares issued and outstanding | 2 | 2 |
Additional paid-in-capital | 170,507 | 171,079 |
Accumulated other comprehensive (loss)/income | (174) | 13 |
Accumulated deficit | (29,719) | (25,224) |
Total stockholders’ equity | 140,616 | 145,870 |
Total Liabilities and Stockholders’ Equity | $ 438,230 | $ 431,499 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 50,000 | 50,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Convertible stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Convertible stock, shares authorized (in shares) | 1,000 | 1,000 |
Convertible Stock Shares Issued (in shares) | 1,000 | 1,000 |
Convertible stock, shares outstanding (in shares) | 1,000 | 1,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 350,000 | 350,000 |
Common stock, shares issued (in shares) | 20,100 | 20,100 |
Common stock, shares outstanding (in shares) | 20,100 | 20,100 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Rental revenues | $ 11,612 | $ 9,390 | $ 22,818 | $ 19,677 |
Expenses | ||||
Property operating expenses | 4,030 | 3,062 | 7,277 | 6,239 |
Real estate taxes | 1,646 | 1,358 | 3,374 | 2,829 |
General and administrative | 1,899 | 1,568 | 3,717 | 3,221 |
Depreciation and amortization | 4,953 | 2,755 | 9,872 | 5,665 |
Total operating expenses | 12,528 | 8,743 | 24,240 | 17,954 |
Operating (loss)/income | (916) | 647 | (1,422) | 1,723 |
Interest expense | (3,307) | (2,215) | (6,421) | (4,668) |
Interest income | 368 | 495 | 877 | 978 |
Gain on sale of investment property | 0 | 0 | 0 | 27,825 |
Gain on disposition of unconsolidated joint venture | 0 | 1,457 | 0 | 1,457 |
Mark to market adjustment on derivative financial instruments | 492 | 0 | 1,110 | 0 |
Income tax benefit | 0 | 0 | 776 | 0 |
Other income, net | 247 | 115 | 585 | 296 |
Net (loss)/income | (3,116) | 499 | (4,495) | 27,611 |
Net income attributable to noncontrolling interests | 0 | (54) | 0 | (131) |
Net (loss)/income attributable to the Company’s shares | $ (3,116) | $ 445 | $ (4,495) | $ 27,480 |
Weighted average shares outstanding: | ||||
Basic and diluted | 20,089 | 20,193 | 20,100 | 20,193 |
Basic and diluted income/(loss) per share | $ (0.16) | $ 0.02 | $ (0.22) | $ 1.36 |
Comprehensive (loss)/income: | ||||
Net (loss)/income | $ (3,116) | $ 499 | $ (4,495) | $ 27,611 |
Other comprehensive loss: | ||||
Holding loss on marketable securities, available for sale | (62) | (6) | (185) | (48) |
Reclassification adjustment for loss/(gain) included in net (loss)/income | 2 | 1 | (2) | (7) |
Total other comprehensive loss | (60) | (5) | (187) | (55) |
Comprehensive(loss)/income: | (3,176) | 494 | (4,682) | 27,556 |
Comprehensive income attributable to noncontrolling interests | 0 | (54) | 0 | (131) |
Comprehensive(loss)/income attributable to the Company’s shares | $ (3,176) | $ 440 | $ (4,682) | $ 27,425 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholder's Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Convertible Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 2 | $ 189,216 | $ 140 | $ (102,519) | $ (2,199) | $ 84,640 | |
Beginning balance, shares at Dec. 31, 2020 | 1 | 20,193 | |||||
Net loss | 27,480 | 131 | 27,611 | ||||
Distributions paid to noncontrolling interests | (343) | (343) | |||||
Acquisition of noncontrolling interest in a subsidiary | (2,128) | 1,042 | (1,086) | ||||
Holding loss on marketable securities, available for sale | (48) | (48) | |||||
Reclassification adjustment for gain on sale of marketable securities included in net loss | (7) | (7) | |||||
Ending balance, value at Jun. 30, 2021 | $ 2 | 187,088 | 85 | (75,039) | (1,369) | 110,767 | |
Ending balance, shares at Jun. 30, 2021 | 1 | 20,193 | |||||
Beginning balance, value at Mar. 31, 2021 | $ 2 | 187,088 | 90 | (75,484) | (1,324) | 110,372 | |
Beginning balance, shares at Mar. 31, 2021 | 1 | 20,193 | |||||
Net loss | 445 | 54 | 499 | ||||
Distributions paid to noncontrolling interests | (99) | (99) | |||||
Holding loss on marketable securities, available for sale | (6) | (6) | |||||
Reclassification adjustment for gain on sale of marketable securities included in net loss | (1) | (1) | |||||
Ending balance, value at Jun. 30, 2021 | $ 2 | 187,088 | 85 | (75,039) | (1,369) | 110,767 | |
Ending balance, shares at Jun. 30, 2021 | 1 | 20,193 | |||||
Beginning balance, value at Dec. 31, 2021 | $ 2 | 171,079 | 13 | (25,224) | 145,870 | ||
Beginning balance, shares at Dec. 31, 2021 | 1 | 20,128 | |||||
Net loss | (4,495) | (4,495) | |||||
Redemption and cancellation of common stock | (572) | (572) | |||||
Redemption and cancellation of common stock, shares | (44) | ||||||
Holding loss on marketable securities, available for sale | (185) | (185) | |||||
Reclassification adjustment for gain on sale of marketable securities included in net loss | (2) | (2) | |||||
Ending balance, value at Jun. 30, 2022 | $ 2 | 170,507 | (174) | (29,719) | 140,616 | ||
Ending balance, shares at Jun. 30, 2022 | 1 | 20,084 | |||||
Beginning balance, value at Mar. 31, 2022 | $ 2 | 170,764 | (114) | (26,603) | 144,049 | ||
Beginning balance, shares at Mar. 31, 2022 | 1 | 20,104 | |||||
Net loss | (3,116) | (3,116) | |||||
Redemption and cancellation of common stock | (257) | (257) | |||||
Redemption and cancellation of common stock, shares | (20) | ||||||
Holding loss on marketable securities, available for sale | (62) | (62) | |||||
Reclassification adjustment for gain on sale of marketable securities included in net loss | 2 | 2 | |||||
Ending balance, value at Jun. 30, 2022 | $ 2 | $ 170,507 | $ (174) | $ (29,719) | $ 140,616 | ||
Ending balance, shares at Jun. 30, 2022 | 1 | 20,084 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss)/income | $ (4,495) | $ 27,611 |
Adjustments to reconcile net (loss)/income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,872 | 5,665 |
Amortization of deferred financing fees | 711 | 308 |
Gain on disposition of unconsolidated joint venture | 0 | (1,457) |
Gain on sale of investment property | 0 | (27,825) |
Mark to market adjustment on derivative financial instruments | (1,110) | 0 |
Non-cash interest income | (324) | (785) |
Other non-cash adjustments | (2) | 0 |
Changes in operating assets and liabilities: | ||
(Increase)/decrease in prepaid expenses and other assets | (761) | 2,542 |
Increase/(decrease) in accounts payable, accrued expenses and other liabilities | 515 | (2,037) |
Net cash provided by operating activities | 4,406 | 4,022 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investment property | (4,464) | (2,235) |
Purchases of marketable securities | (721) | (795) |
Proceeds from sale of marketable securities | 735 | 736 |
Proceeds from repayment of note receivable | 8,821 | 0 |
Acquisition of noncontrolling interest | 0 | (1,086) |
Proceeds from sale of investment property, net of closing costs | 0 | 14,364 |
Proceeds from disposition of unconsolidated joint venture | 0 | 1,457 |
Net cash provided by investing activities | 4,371 | 12,441 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from notes payable | 11,587 | 0 |
Payments on notes payable | (867) | (360) |
Payment of loan fees and expenses | (13) | 0 |
Redemption and cancellation of common stock | (572) | 0 |
Distributions to noncontrolling interest holders | 0 | (343) |
Net cash provided by/(used in) by financing activities | 10,135 | (703) |
Net change in cash, cash equivalents and restricted cash | 18,912 | 15,760 |
Cash, cash equivalents and restricted cash, beginning of year | 45,239 | 31,451 |
Cash, cash equivalents and restricted cash, end of period | 64,151 | 47,211 |
Supplemental cash flow information for the periods indicated is as follows: | ||
Cash paid for interest | 5,667 | 4,385 |
Debt assumed by buyer in connection with disposition of investment property | 0 | 35,700 |
Capital expenditures for investment property in accrued liabilities and accounts payable | 156 | 175 |
Holding loss on marketable securities, available for sale | 187 | 55 |
Cash | 59,435 | 25,074 |
Restricted cash | 4,716 | 22,137 |
Total cash and restricted cash | $ 64,151 | $ 47,211 |
Business
Business | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business | 1. Business Lightstone Value Plus REIT V, Inc. (“Lightstone REIT V”) which was formerly known as Lightstone Value Plus Real Estate Investment Trust V, Inc. before August 31, 2021, was organized as a Maryland corporation on January 9, 2007 and has elected to be taxed, and currently qualifies, as a real estate investment trust (“REIT”) for federal income tax purposes. Lightstone REIT V, together with its subsidiaries is collectively referred to as the “Company” and the use of “we,” “our,” “us” or similar pronouns refers to Lightstone REIT V or the Company as required by the context in which any such pronoun is used. The Company was formed primarily to acquire and operate commercial real estate and real estate-related assets on an opportunistic and value-add basis. In particular, the Company has focused generally on acquiring commercial properties with significant possibilities for capital appreciation, such as those requiring development, redevelopment, or repositioning, those located in markets and submarkets with high growth potential, and those available from sellers who are distressed or face time-sensitive deadlines. The Company has acquired a wide variety of commercial properties, including office, industrial, retail, hospitality, and multifamily. The Company has purchased existing, income-producing properties, and newly-constructed properties. The Company has also invested in other real estate-related investments such as mortgage and mezzanine loans. The Company intends to hold the various real properties in which it has invested until such time as its board of directors determines that a sale or other disposition appears to be advantageous to achieve the Company’s investment objectives or until it appears that the objectives will not be met. The Company currently has one operating segment. As of June 30, 2022, the Company had eight wholly owned real estate investments (multi-family apartment complexes) and one real estate-related investment (mezzanine loan). Substantially all of the Company’s business is conducted through Lightstone REIT V OP LP, a limited partnership organized in Delaware (the “Operating Partnership”). As of June 30, 2022, the Company’s wholly-owned subsidiary, BHO II, Inc., a Delaware corporation, owned a 0.1 99.9 The Company’s business is externally managed by LSG Development Advisor LLC (the “Advisor”), an affiliate of the Lightstone Group LLC (“Lightstone”) which provides advisory services to the Company and the Company has no employees. Lightstone is majority owned by the chairman emeritus of the Company’s board of directors, David Lichtenstein. Pursuant to the terms of an advisory agreement and subject to the oversight of the Company’s board of directors, the Advisor is responsible for managing the Company’s day-to-day affairs and for services related to the management of the Company’s assets. Organization In connection with the Company’s initial capitalization, the Company issued 22,500 1,000 1,000 20.1 The Company’s common stock is not currently listed on a national securities exchange. The timing of a liquidity event for the Company’s stockholders will depend upon then prevailing market conditions and the Company’s board of directors’ assessment of the Company’s investment objectives and liquidity options for the Company’s stockholders. Currently, the Company’s board of directors has targeted June 30, 2028 for the commencement of a liquidity event. However, the Company can provide no assurances as to the actual timing of the commencement of a liquidity event for its stockholders or the ultimate liquidation of the Company. Furthermore, the Company will seek stockholder approval prior to liquidating its entire portfolio. Noncontrolling Interests Effective as of December 30, 2021, the Company wholly-owns all of its real estate investments and does not have any remaining noncontrolling interests. Prior to December 30, 2021, noncontrolling interests represented the noncontrolling ownership interest’s proportionate share of the equity in the Company’s consolidated real estate investments. Income and losses were allocated to noncontrolling interest holders based generally on their ownership percentage but in certain instances, if a property reached a defined return threshold, then it may have resulted in distributions to noncontrolling interests which were different from the standard pro-rata allocation percentage. Additionally, in certain instances, the joint venture agreements may have provided for liquidating distributions based on achieving certain return metrics. Acquisitions of Noncontrolling Members’ Ownership Interests in Consolidated Real Estate Investments On March 17, 2021, the Company acquired the noncontrolling member’s 7.5 1.1 On December 20, 2021, the Company acquired the noncontrolling member’s 15.0 10.2 On December 30, 2021, the Company acquired the noncontrolling member’s 10.0 3.7 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Interim Unaudited Financial Information The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and related notes as contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which was filed with the Securities and Exchange Commission (the “SEC”) on March 24, 2022. The unaudited interim consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair presentation of the results for the periods presented. The accompanying unaudited consolidated financial statements of Lightstone Value Plus REIT V, Inc. have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.’ Principles of Consolidation and Basis of Presentation Our consolidated financial statements include our accounts and the accounts of other subsidiaries over which the Company has control. All inter-company transactions, balances, and profits have been eliminated in consolidation. In addition, interests in entities acquired are evaluated based on applicable GAAP, and entities deemed to be variable interest entities (“VIE”) in which the Company is the primary beneficiary are also consolidated. If the interest in the entity is determined not to be a VIE, then the entity is evaluated for consolidation based on legal form, economic substance, and the extent to which the Company has control, substantive participating rights or both under the respective ownership agreement. For entities in which the Company has less than a controlling interest or entities which we are not deemed to be the primary beneficiary, it accounts for the investment using the equity method of accounting. The consolidated balance sheet as of December 31, 2021 included herein has been derived from the consolidated balance sheet included in the Company’s Annual Report on Form 10-K. The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. Earnings per Share The Company had no potentially dilutive securities outstanding during the periods presented. Accordingly, basic and diluted earnings per share is calculated by dividing net income/(loss) by the weighted-average number of shares of common stock outstanding during the applicable period. Restricted cash As required by the Company’s lenders, restricted cash is held in escrow accounts for anticipated capital expenditures, real estate taxes, and other reserves for certain of our consolidated properties. Capital reserves are typically utilized for non-operating expenses such as tenant improvements, leasing commissions, major capital expenditures. Alternatively, a lender may require its own formula for an escrow of capital reserves. Restricted cash may also include certain funds temporarily placed in escrow with qualified intermediaries to facilitate potential like-kind exchange transactions in accordance with Section 1031 of the Internal Revenue Code. Interest Rate Cap Contracts The Company utilizes derivative financial instruments to reduce interest rate risk. The Company does not hold or issue derivative financial instruments for trading purposes. The Company recognizes all derivatives as either assets or liabilities in the consolidated balance sheets and measures those instruments at fair value. Changes in fair value of those instruments are recorded in the consolidated statements of operations. Income Taxes The Company has elected to be taxed as a REIT commencing with the taxable year ended December 31, 2008. If the Company qualifies as a REIT, it generally will not be subject to U.S. federal income tax on its taxable income or capital gain that it distributes to its stockholders. To maintain its REIT qualification, the Company must meet a number of organizational and operational requirements, including a requirement that it annually distribute to its stockholders at least 90% of its REIT taxable income (which does not equal net income, as calculated in accordance with GAAP), determined without regard to the deduction for dividends paid and excluding any net capital gain. If the Company fails to remain qualified for taxation as a REIT in any subsequent year and does not qualify for certain statutory relief provisions, its income for that year will be taxed at the regular corporate rate, and it may be precluded from qualifying for treatment as a REIT for the four-year period following its failure to qualify as a REIT. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. During 2015, the Company recorded an aggregate provision for income tax of $ 2.7 0.8 Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation. COVID-19 Pandemic On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic and it remains highly unpredictable and dynamic and its ultimate duration and extent continue to be dependent on various developments, such as the emergence of variants to the virus that may cause additional strains of COVID-19, and the development, administration and ultimate effectiveness of vaccines, including booster shots. Accordingly, the ongoing COVID-19 pandemic may continue to have negative effects on the U.S. and global economies for the foreseeable future. As of June 30, 2022, the Company’s consolidated portfolio of properties consisted of eight multi-family apartment complexes, all of which are located in the U.S. Its multi-family properties have not been significantly impacted by the COVID-19 pandemic and their occupancy levels, rental rates and rental collections have remained stable since the onset of the COVID-19 pandemic. Additionally, the Company’s note receivable (the “500 West 22nd Street Mezzanine Loan”) is collateralized by a substantially completed 10-unit condominium development project located in New York City (the “Condominium Project”), which is subject to risks related to the COVID-19 pandemic. To date, both the Condominium Project and the Company’s 500 West 22nd Street Mezzanine Loan have not been significantly impacted by the COVID-19 pandemic. The Company continues to closely monitor the overall extent as to which its business may be affected by the ongoing COVID-19 pandemic which will largely depend on current and future developments, all of which are highly uncertain and cannot be reasonably predicted. If the Company’s properties and its real estate-related investments are negatively impacted by the ongoing COVID-19 pandemic in future periods for an extended period because (i) tenants are unable to pay their rent, (ii) leasing demand falls causing declines in occupancy levels and/or rental rates, and (iii) the borrower is unable to pay scheduled debt service on the 500 West 22nd Street Mezzanine Loan; the Company’s business and financial results could be materially and adversely impacted. New Accounting Pronouncements In June 2016, the FASB issued new guidance which replaces the incurred loss impairment methodology currently in use with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The new guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The adoption of this standard will not have a material effect on the Company’s consolidated financial position, results of operations or cash flows. The Company has reviewed and determined that other recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations. |
Note Receivable
Note Receivable | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Note Receivable | 3. Note Receivable 500 West 22nd Street Mezzanine Loan On February 28, 2019, the Company, as the lender, and an unrelated third party (the “500 West 22nd Street Mezzanine Loan Borrower”), as the borrower, entered into the 500 West 22nd Street Mezzanine Loan, a loan promissory note, pursuant to which the Company funded $ 12.0 8.0 4.0 The 500 West 22nd Street Mezzanine Loan bears interest at a rate of LIBOR+11.0% 13.493 August 31, 2021 8 8 The 500 West 22nd Street Mezzanine Loan Borrower has developed and constructed the Condominium Project located at 500 West 22nd Street, New York, New York, which is substantially complete. During the six months ended June 30, 2022, the 500 West 22nd Street Mezzanine Loan Borrower repaid $ 8.8 7.2 As of June 30, 2022, the remaining outstanding principal balance of the 500 West 22nd Street Mezzanine Loan was $ 5.4 2.3 0.3 0.8 0.5 0.9 |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | 4. Financial Instruments The Company determined the following disclosure of estimated fair values using available market information and appropriate valuation methodologies. However, considerable judgment is necessary to interpret market data and develop the related estimates of fair value. The use of different market assumptions or only estimation methodologies may have a material effect on the estimated fair value amounts. As of June 30, 2022 and December 31, 2021, management estimated that the carrying value of cash and cash equivalents, restricted cash, note receivable, prepaid expenses and other assets and accounts payable, accrued expenses and other liabilities were at amounts that reasonably approximated their fair value based on their highly-liquid nature and/or short-term maturities. The fair value of the notes payable is categorized as a Level 2 in the fair value hierarchy. The fair value was estimated using a discounted cash flow analysis valuation on the estimated borrowing rates currently available for loans with similar terms and maturities. The fair value of the notes payable was determined by discounting the future contractual interest and principal payments by a market rate. Disclosure about fair value of financial instruments is based on pertinent information available to management as of June 30, 2022 and December 31, 2021. Carrying amounts of our notes payable and the related estimated fair value is summarized as follows: Schedule of Notes payable and the related estimated fair value As of As of Carrying Estimated Carrying Estimated Notes payable $ 293,095 $ 283,769 $ 282,375 $ 287,194 |
Real Estate Properties
Real Estate Properties | 6 Months Ended |
Jun. 30, 2022 | |
Real Estate Properties | |
Real Estate Properties | 5. Real Estate Properties The following table presents certain information about the Company’s wholly owned and consolidated multifamily real estate properties as of June 30, 2022: Schedule Of Real Estate Properties Property Name Location Date Acquired Arbors Harbor Town Memphis, Tennessee December 20, 2011 Parkside Apartments (“Parkside”) Sugar Land, Texas August 8, 2013 Flats at Fishers Fishers, Indiana November 30, 2017 Axis at Westmont Westmont, Illinois November 27, 2018 Valley Ranch Apartments Ann Arbor, Michigan February 14, 2019 Autumn Breeze Apartments Noblesville, Indiana March 17, 2020 BayVue Apartments Tampa, Florida July 7, 2021 Citadel Apartments Houston, Texas October 6, 2021 Acquisition Activities Acquisition of BayVue Apartments On July 7, 2021, the Company completed the acquisition of a 368-unit multifamily property located in Tampa, Florida (the “BayVue Apartments”), from an unrelated third party for a contractual purchase price of $ 59.5 44.3 15.2 1.0 Acquisition of Citadel Apartments On October 6, 2021, the Company acquired a 293-unit multifamily property located in Houston, Texas (the “Citadel Apartments”), from an unrelated third party for a contractual purchase price of $ 66.0 38.0 28.0 1.2 Dispositions Activities The following dispositions did not represent a strategic shift that had a major effect on the Company’s operations and financial results and therefore did not qualify to be reported as discontinued operations and their operating results are reflected in the Company’s results from continuing operations in the consolidated statements of operations for all periods presented through their respective dates of disposition: Disposition of Lakes of Margate On March 17, 2021, the Company completed the disposition of the Lakes of Margate for a contractual sales price of $ 50.8 15.1 35.7 1.1 7.5 2.1 27.8 Disposition of the River Club Properties On December 22, 2021, the Company completed the disposition of the River Club Apartments and the Townhomes at River Club, two student housing complexes with a total of 1,134 beds (collectively, the “River Club Properties”) located in Athens, Georgia, for a contractual sales price of $ 77.3 30.4 10.2 15.0 11.7 55.0 |
Marketable Securities, Derivati
Marketable Securities, Derivative Financial Instruments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Marketable Securities Derivative Financial Instruments And Fair Value Measurements | |
Marketable Securities, Derivative Financial Instruments and Fair Value Measurements | 6. Marketable Securities, Derivative Financial Instruments and Fair Value Measurements Marketable Securities The following is a summary of the Company’s available for sale securities as of the dates indicated: Schedule of available-for-sale securities reconciliation As of June 30, 2022 Debt securities: Adjusted Gross Unrealized Gross Unrealized Fair Corporate and Government Bonds $ 3,620 $ 3 $ (177 ) $ 3,446 As of December 31, 2021 Debt securities: Adjusted Gross Unrealized Gross Unrealized Fair Corporate and Government Bonds $ 3,634 $ 47 $ (36 ) $ 3,645 When evaluating the investments for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s amortized cost basis. As of June 30, 2022, the Company did not recognize any impairment charges. The following table summarizes the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities: Summary of the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates As of Due in 1 year $ 621 Due in 1 year through 5 years 2,769 Due in 5 years through 10 years 56 Due after 10 years - Total $ 3,446 Derivative Financial Instruments The Company has entered into two interest rate cap contracts with unrelated financial institutions in order to reduce the effect of interest rate fluctuations or risk of certain real estate investment’s interest expense on its variable rate debt. The Company is exposed to credit risk in the event of non-performance by the counterparty to these financial instruments. Management believes the risk of loss due to non-performance to be minimal. The Company is accounting for the interest rate cap contracts as economic hedges, marking these contracts to market, taking into account present interest rates compared to the contracted fixed rate over the life of the contract and recording the unrealized gain or loss on the interest rate cap contracts in the consolidated statements of operations. For the three and six months ended June 30, 2022, the Company recorded an unrealized gain of $ 0.5 1.1 The interest rate cap contracts have notional amounts of $ 52.2 49.0 July 15, 2023 October 11, 2023 LIBOR at 2.50% and 2.00%, 1.2 Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: ● Level 1 – Quoted prices in active markets for identical assets or liabilities. ● Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value of the Company’s investments in debt securities are measured using quoted prices for these investments; however, the markets for these assets are not active. The fair value of the Company’s interest rate cap contracts are measured using other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. As of June 30, 2022, all of the Company’s debt securities and interest rate cap contracts were classified as Level 2 assets and there were no transfers between the level classifications during the six months ended June 30, 2022. |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Notes Payable | 7. Notes Payable Notes payable consists of the following: Schedule of information on notes payable Property Interest Rate Weighted Average Maturity Date Amount Due As of As of Arbors Harbor Town 4.53 4.53 January 1, 2026 $ 29,000 $ 29,000 $ 29,000 Arbors Harbor Town Supplemental 3.52 3.52 January 1, 2026 5,379 5,787 5,842 Parkside 4.45 4.45 June 1, 2025 15,782 16,810 16,974 Axis at Westmont 4.39 4.39 February 1, 2026 34,343 36,792 37,100 Valley Ranch Apartments 4.16 4.16 March 1, 2026 43,414 43,414 43,414 Flats at Fishers 3.78 3.78 July 1, 2026 26,090 28,333 28,592 Flats at Fishers Supplemental 3.85 3.85 July 1, 2026 8,366 9,069 9,150 Autumn Breeze Apartments 3.39 3.39 April 1, 2030 25,518 29,920 29,920 BayVue Apartments LIBOR + 3.10% 3.52 July 9, 2024 44,970 44,970 44,383 Citadel Apartments Senior LIBOR + 1.50% 2.25 October 11, 2024 39,200 39,200 30,400 Citadel Apartments Junior LIBOR + 8.75% 9.11 October 11, 2024 9,800 9,800 7,600 Total notes payable 3.92 $ 281,862 293,095 282,375 Less: Deferred financing costs (4,098 ) (4,777 ) Total notes payable, net $ 288,997 $ 277,598 Citadel Apartments On October 6, 2021, the Company entered into a non-recourse mortgage loan facility for up to $ 39.2 30.4 9.8 7.6 The Citadel Apartments Mortgages initially mature on October 11, 2024, with two one-year extension options, subject to the satisfaction of certain conditions, and are collateralized by the Citadel Apartments, while the Citadel Apartments Junior Mortgage is subordinate to the Citadel Apartments Senior Mortgage. In connection with the acquisition of the Citadel Apartments, an aggregate $ 38.0 28.0 0.5 11.0 49.0 In connection with the Citadel Apartment Mortgages, the Company has entered into an interest rate cap agreement with a notional amount of $ 49.0 LIBOR rate is capped at 2.00% BayVue Apartments On July 7, 2021, the Company entered into a non-recourse mortgage loan facility for up to $ 52.2 July 9, 2024 0.3 In connection with the BayVue Apartments Mortgage, the Company has entered into an interest rate cap agreement with a notional amount of $ 52.2 LIBOR rate is capped at 2.50% The following table provides information with respect to the contractual maturities and scheduled principal repayments of the Company’s indebtedness as of June 30, 2022. Schedule of contractual obligations for principal payments 2022 2023 2024 2025 2026 Thereafter Total Principal maturities $ 874 $ 2,191 $ 96,431 $ 18,138 $ 147,729 $ 27,732 $ 293,095 Less: deferred financing costs (4,098 ) Total notes payable, net $ 288,997 |
Stockholders_ Equity
Stockholders’ Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stockholders’ Equity | 8. Stockholders’ Equity Share Redemption Program and Redemption Price The Company’s board of directors has adopted a share redemption program (the “SRP”) that permits stockholders to sell their shares back to it, subject to the significant conditions and limitations of the program. The Company’s board of directors can amend the provisions of the SRP at any time without the approval of the stockholders. On December 13, 2019, the Company’s board of directors approved the suspension of the SRP. Pursuant to the terms of the SRP, while the SRP is suspended, the Company will not accept any requests for redemption. Effective March 25, 2021, the Company’s board of directors reopened the SRP solely for redemptions submitted in connection with a stockholder’s death and set the price for all such purchases to $9.42, which was 100% of the estimated NAV per Share as of September 30, 2020. Deaths that occurred subsequent to January 1, 2020 are eligible for consideration. Beginning January 1, 2022, requests for redemptions in connection with a stockholder’s death must be submitted and received by the Company within one year of the stockholder’s date of death for consideration. On an annual basis, the Company will not redeem in excess of 0.5% of the number of shares outstanding as of the end of the preceding year. Death redemption requests are expected to be processed on a quarterly basis and may be subject to pro ration if death redemption requests exceed the annual limitation. The Company’s board of directors will continue to consider the liquidity available to stockholders going forward, balanced with other long-term interests of the stockholders and the Company. It is possible that in the future additional liquidity will be made available by the Company through the SRP, issuer tender offers or other methods, though it can make no assurances as to whether that will happen, or the timing or terms of any such liquidity. In accordance with the Company’s SRP, the per share redemption price automatically adjusted to $ 12.91 For the six months ended June 30, 2022 the Company repurchased 44,275 12.91 Distributions The Company made an election to qualify as a REIT for federal income tax purposes commencing with its taxable year ended December 31, 2008. U.S. federal tax law requires a REIT distribute at least 90 The Company’s board of directors’ decision will be substantially influenced by their obligation to ensure that the Company maintains its federal tax status as a REIT. The Company cannot provide assurance that it will pay distributions at any particular level, or at all. The Company did not make any distributions to its stockholders during the six months ended June 30, 2022 and 2021. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. Related Party Transactions The Company has agreements with the Advisor and its affiliates to pay certain fees in exchange for services performed by these entities and other related parties. These agreements have a one-year term and currently extend through June 30, 2023. The Company is dependent on the Advisor and its affiliates for certain services that are essential to it, including asset acquisition and disposition decisions, property management and leasing services, financing services, and other general administrative responsibilities. In the event that these entities are unable to provide the Company with their respective services, the Company would be required to obtain such services from other sources. The following table represents the fees incurred associated with the payments to the Company’s Advisor and its affiliates for the periods indicated: Schedule of Related Party Transactions For the For the 2022 2021 2022 2021 Property management fees (property operating expenses) $ 124 $ 110 $ 242 $ 228 Administrative services reimbursement (general and administrative costs) 346 332 693 665 Asset management fees (general and administrative costs) 861 626 1,729 1,321 Total $ 1,331 $ 1,068 $ 2,664 $ 2,214 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Legal Proceedings From time to time in the ordinary course of business, the Company may become subject to legal proceedings, claims or disputes. As of the date hereof, the Company is not a party to any material pending legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on its results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Interim Unaudited Financial Information | Interim Unaudited Financial Information The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and related notes as contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which was filed with the Securities and Exchange Commission (the “SEC”) on March 24, 2022. The unaudited interim consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair presentation of the results for the periods presented. The accompanying unaudited consolidated financial statements of Lightstone Value Plus REIT V, Inc. have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.’ |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation Our consolidated financial statements include our accounts and the accounts of other subsidiaries over which the Company has control. All inter-company transactions, balances, and profits have been eliminated in consolidation. In addition, interests in entities acquired are evaluated based on applicable GAAP, and entities deemed to be variable interest entities (“VIE”) in which the Company is the primary beneficiary are also consolidated. If the interest in the entity is determined not to be a VIE, then the entity is evaluated for consolidation based on legal form, economic substance, and the extent to which the Company has control, substantive participating rights or both under the respective ownership agreement. For entities in which the Company has less than a controlling interest or entities which we are not deemed to be the primary beneficiary, it accounts for the investment using the equity method of accounting. The consolidated balance sheet as of December 31, 2021 included herein has been derived from the consolidated balance sheet included in the Company’s Annual Report on Form 10-K. The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. |
Earnings per Share | Earnings per Share The Company had no potentially dilutive securities outstanding during the periods presented. Accordingly, basic and diluted earnings per share is calculated by dividing net income/(loss) by the weighted-average number of shares of common stock outstanding during the applicable period. |
Restricted cash | Restricted cash As required by the Company’s lenders, restricted cash is held in escrow accounts for anticipated capital expenditures, real estate taxes, and other reserves for certain of our consolidated properties. Capital reserves are typically utilized for non-operating expenses such as tenant improvements, leasing commissions, major capital expenditures. Alternatively, a lender may require its own formula for an escrow of capital reserves. Restricted cash may also include certain funds temporarily placed in escrow with qualified intermediaries to facilitate potential like-kind exchange transactions in accordance with Section 1031 of the Internal Revenue Code. |
Interest Rate Cap Contracts | Interest Rate Cap Contracts The Company utilizes derivative financial instruments to reduce interest rate risk. The Company does not hold or issue derivative financial instruments for trading purposes. The Company recognizes all derivatives as either assets or liabilities in the consolidated balance sheets and measures those instruments at fair value. Changes in fair value of those instruments are recorded in the consolidated statements of operations. |
Income Taxes | Income Taxes The Company has elected to be taxed as a REIT commencing with the taxable year ended December 31, 2008. If the Company qualifies as a REIT, it generally will not be subject to U.S. federal income tax on its taxable income or capital gain that it distributes to its stockholders. To maintain its REIT qualification, the Company must meet a number of organizational and operational requirements, including a requirement that it annually distribute to its stockholders at least 90% of its REIT taxable income (which does not equal net income, as calculated in accordance with GAAP), determined without regard to the deduction for dividends paid and excluding any net capital gain. If the Company fails to remain qualified for taxation as a REIT in any subsequent year and does not qualify for certain statutory relief provisions, its income for that year will be taxed at the regular corporate rate, and it may be precluded from qualifying for treatment as a REIT for the four-year period following its failure to qualify as a REIT. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. During 2015, the Company recorded an aggregate provision for income tax of $ 2.7 0.8 |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation. |
COVID-19 Pandemic | COVID-19 Pandemic On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic and it remains highly unpredictable and dynamic and its ultimate duration and extent continue to be dependent on various developments, such as the emergence of variants to the virus that may cause additional strains of COVID-19, and the development, administration and ultimate effectiveness of vaccines, including booster shots. Accordingly, the ongoing COVID-19 pandemic may continue to have negative effects on the U.S. and global economies for the foreseeable future. As of June 30, 2022, the Company’s consolidated portfolio of properties consisted of eight multi-family apartment complexes, all of which are located in the U.S. Its multi-family properties have not been significantly impacted by the COVID-19 pandemic and their occupancy levels, rental rates and rental collections have remained stable since the onset of the COVID-19 pandemic. Additionally, the Company’s note receivable (the “500 West 22nd Street Mezzanine Loan”) is collateralized by a substantially completed 10-unit condominium development project located in New York City (the “Condominium Project”), which is subject to risks related to the COVID-19 pandemic. To date, both the Condominium Project and the Company’s 500 West 22nd Street Mezzanine Loan have not been significantly impacted by the COVID-19 pandemic. The Company continues to closely monitor the overall extent as to which its business may be affected by the ongoing COVID-19 pandemic which will largely depend on current and future developments, all of which are highly uncertain and cannot be reasonably predicted. If the Company’s properties and its real estate-related investments are negatively impacted by the ongoing COVID-19 pandemic in future periods for an extended period because (i) tenants are unable to pay their rent, (ii) leasing demand falls causing declines in occupancy levels and/or rental rates, and (iii) the borrower is unable to pay scheduled debt service on the 500 West 22nd Street Mezzanine Loan; the Company’s business and financial results could be materially and adversely impacted. |
New Accounting Pronouncements | New Accounting Pronouncements In June 2016, the FASB issued new guidance which replaces the incurred loss impairment methodology currently in use with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The new guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The adoption of this standard will not have a material effect on the Company’s consolidated financial position, results of operations or cash flows. The Company has reviewed and determined that other recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Notes payable and the related estimated fair value | Schedule of Notes payable and the related estimated fair value As of As of Carrying Estimated Carrying Estimated Notes payable $ 293,095 $ 283,769 $ 282,375 $ 287,194 |
Real Estate Properties (Tables)
Real Estate Properties (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Real Estate Properties | |
Schedule Of Real Estate Properties | Schedule Of Real Estate Properties Property Name Location Date Acquired Arbors Harbor Town Memphis, Tennessee December 20, 2011 Parkside Apartments (“Parkside”) Sugar Land, Texas August 8, 2013 Flats at Fishers Fishers, Indiana November 30, 2017 Axis at Westmont Westmont, Illinois November 27, 2018 Valley Ranch Apartments Ann Arbor, Michigan February 14, 2019 Autumn Breeze Apartments Noblesville, Indiana March 17, 2020 BayVue Apartments Tampa, Florida July 7, 2021 Citadel Apartments Houston, Texas October 6, 2021 |
Marketable Securities, Deriva_2
Marketable Securities, Derivative Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Marketable Securities Derivative Financial Instruments And Fair Value Measurements | |
Schedule of available-for-sale securities reconciliation | Schedule of available-for-sale securities reconciliation As of June 30, 2022 Debt securities: Adjusted Gross Unrealized Gross Unrealized Fair Corporate and Government Bonds $ 3,620 $ 3 $ (177 ) $ 3,446 As of December 31, 2021 Debt securities: Adjusted Gross Unrealized Gross Unrealized Fair Corporate and Government Bonds $ 3,634 $ 47 $ (36 ) $ 3,645 |
Summary of the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates | Summary of the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates As of Due in 1 year $ 621 Due in 1 year through 5 years 2,769 Due in 5 years through 10 years 56 Due after 10 years - Total $ 3,446 |
Notes Payable (Tables)
Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of information on notes payable | Schedule of information on notes payable Property Interest Rate Weighted Average Maturity Date Amount Due As of As of Arbors Harbor Town 4.53 4.53 January 1, 2026 $ 29,000 $ 29,000 $ 29,000 Arbors Harbor Town Supplemental 3.52 3.52 January 1, 2026 5,379 5,787 5,842 Parkside 4.45 4.45 June 1, 2025 15,782 16,810 16,974 Axis at Westmont 4.39 4.39 February 1, 2026 34,343 36,792 37,100 Valley Ranch Apartments 4.16 4.16 March 1, 2026 43,414 43,414 43,414 Flats at Fishers 3.78 3.78 July 1, 2026 26,090 28,333 28,592 Flats at Fishers Supplemental 3.85 3.85 July 1, 2026 8,366 9,069 9,150 Autumn Breeze Apartments 3.39 3.39 April 1, 2030 25,518 29,920 29,920 BayVue Apartments LIBOR + 3.10% 3.52 July 9, 2024 44,970 44,970 44,383 Citadel Apartments Senior LIBOR + 1.50% 2.25 October 11, 2024 39,200 39,200 30,400 Citadel Apartments Junior LIBOR + 8.75% 9.11 October 11, 2024 9,800 9,800 7,600 Total notes payable 3.92 $ 281,862 293,095 282,375 Less: Deferred financing costs (4,098 ) (4,777 ) Total notes payable, net $ 288,997 $ 277,598 |
Schedule of contractual obligations for principal payments | Schedule of contractual obligations for principal payments 2022 2023 2024 2025 2026 Thereafter Total Principal maturities $ 874 $ 2,191 $ 96,431 $ 18,138 $ 147,729 $ 27,732 $ 293,095 Less: deferred financing costs (4,098 ) Total notes payable, net $ 288,997 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Schedule of Related Party Transactions For the For the 2022 2021 2022 2021 Property management fees (property operating expenses) $ 124 $ 110 $ 242 $ 228 Administrative services reimbursement (general and administrative costs) 346 332 693 665 Asset management fees (general and administrative costs) 861 626 1,729 1,321 Total $ 1,331 $ 1,068 $ 2,664 $ 2,214 |
Business (Details Narrative)
Business (Details Narrative) - USD ($) shares in Thousands, $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Feb. 10, 2007 | Jan. 19, 2007 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Common stock, shares issued (in shares) | 20,100 | 20,100 | |||
Convertible stock issued (in shares) | 1,000 | 1,000 | |||
Common stock, shares outstanding (in shares) | 20,100 | 20,100 | |||
Payments to Noncontrolling Interests | $ 0 | $ 1,086 | |||
Initial Capitalization [Member] | Affiliated Entity [Member] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Common stock, shares issued (in shares) | 22,500 | ||||
Convertible stock issued (in shares) | 1,000 | ||||
Initial Offering [Member] | Lightstone Group [Member] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Convertible stock issued (in shares) | 1,000 | ||||
Behringer Harvard Opportunity Op I I Lp [Member] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Percentage of ownership interest by BHO II, Inc | 0.10% | ||||
Marylands [Member] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Percentage of remaining ownership interest held by BHO Business Trust II | 99.90% | ||||
Lakes Of Margate [Member] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 7.50% | ||||
Payments to Noncontrolling Interests | $ 1,100 | ||||
River Club [Member] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 15% | ||||
Payments to Noncontrolling Interests | $ 10,200 | ||||
Parkside [Member] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 10% | ||||
Payments to Noncontrolling Interests | $ 3,700 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Accounting Policies [Abstract] | |
Provision for income tax | $ 2,700 |
Income tax benefit foreign income tax | $ 800 |
Note Receivable (Details Narrat
Note Receivable (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2019 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Short-Term Debt [Line Items] | ||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR at 2.50% and 2.00%, | |||||
Debt Instrument, Maturity Date | Jul. 15, 2023 | |||||
Note receivable | $ 5,422 | $ 5,422 | $ 13,919 | |||
Mezzanine Loan Promissory Note [Member] | ||||||
Short-Term Debt [Line Items] | ||||||
Debt Instrument, Face Amount | $ 12,000 | |||||
Payments to Acquire Notes Receivable | $ 8,000 | $ 4,000 | ||||
Debt Instrument, Description of Variable Rate Basis | LIBOR+11.0% | |||||
Debt Instrument, Basis Spread on Variable Rate | 13.493% | |||||
Debt Instrument, Maturity Date | Aug. 31, 2021 | |||||
Interest rate | 8% | |||||
Utilization Of Interest Reserve Percentage On Interest Due | 8% | |||||
Note receivable | 5,400 | $ 5,400 | ||||
Amount of additional interest included in the principal balance | 2,300 | |||||
Interest income | 300 | $ 500 | 800 | $ 900 | ||
Mezzanine Loan [Member] | ||||||
Short-Term Debt [Line Items] | ||||||
Loan repaid | $ 7,200 | $ 8,800 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Notes payable, Carrying Amount | $ 293,095 | $ 282,375 |
Notes payable, Estimated Fair Value | $ 283,769 | $ 287,194 |
Real Estate Properties (Details
Real Estate Properties (Details - Consolidated Properties) | 6 Months Ended |
Jun. 30, 2022 | |
Arbors Harbor Town [Member] | |
Location | Memphis, Tennessee |
Variable interest entity date acquired | Dec. 20, 2011 |
Parkside Apartments Parkside [Member] | |
Location | Sugar Land, Texas |
Variable interest entity date acquired | Aug. 08, 2013 |
Flats At Fishers [Member] | |
Location | Fishers, Indiana |
Variable interest entity date acquired | Nov. 30, 2017 |
Axis At Westmont [Member] | |
Location | Westmont, Illinois |
Variable interest entity date acquired | Nov. 27, 2018 |
Valley Ranch Apartments [Member] | |
Location | Ann Arbor, Michigan |
Variable interest entity date acquired | Feb. 14, 2019 |
Autumn Breeze Apartments [Member] | |
Location | Noblesville, Indiana |
Variable interest entity date acquired | Mar. 17, 2020 |
Bay Vue Apartments [Member] | |
Location | Tampa, Florida |
Variable interest entity date acquired | Jul. 07, 2021 |
Citadel Apartments [Member] | |
Location | Houston, Texas |
Variable interest entity date acquired | Oct. 06, 2021 |
Real Estate Properties (Detai_2
Real Estate Properties (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |||||
Oct. 06, 2021 | Jul. 07, 2021 | Dec. 22, 2021 | Dec. 20, 2021 | Mar. 17, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Note receivable | $ 5,422 | $ 13,919 | |||||
Lakes Of Margate Buyer [Member] | |||||||
Minority interest | 7.50% | ||||||
River Club Properties [Member] | |||||||
Minority interest | 15% | ||||||
Citadel Apartments [Member] | |||||||
Business Combination, Consideration Transferred | $ 66,000 | ||||||
Proceeds from mortgage | 38,000 | ||||||
Escrow amount | 28,000 | ||||||
Business Combination, Acquisition Related Costs | $ 1,200 | ||||||
Lakes Of Margate Buyer [Member] | |||||||
Sales Contract Price | $ 50,800 | ||||||
Mortgage loan | 15,100 | ||||||
Note receivable | 35,700 | ||||||
Contractual purchase price | 1,100 | ||||||
Carrying value noncontrolling interest | 2,100 | ||||||
Gain (Loss) on Sale of Investments | $ 27,800 | ||||||
River Club Properties [Member] | |||||||
Sales Contract Price | $ 77,300 | ||||||
Contractual purchase price | $ 10,200 | ||||||
Carrying value noncontrolling interest | $ 11,700 | ||||||
Gain (Loss) on Sale of Investments | 55,000 | ||||||
Mortgage indebtness | $ 30,400 | ||||||
Bay Vue Apartments [Member] | |||||||
Proceeds from mortgage | $ 44,300 | ||||||
Escrow amount | 15,200 | ||||||
Autumn Breeze Apartments [Member] | |||||||
Business Combination, Consideration Transferred | $ 59,500 | ||||||
Bay Vue Apartments [Member] | |||||||
Business Combination, Acquisition Related Costs | $ 1,000 |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements (Details - Available for Sale Securities) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Fair Value | $ 3,446 | $ 3,645 |
Corporate And Government Bonds [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Adjusted Cost | 3,620 | 3,634 |
Gross Unrealized Gains | 3 | 47 |
Gross Unrealized Losses | (177) | (36) |
Fair Value | $ 3,446 | $ 3,645 |
Marketable Securities and Fai_2
Marketable Securities and Fair Value Measurements (Details - Marketable Debt Securities) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Marketable Securities Derivative Financial Instruments And Fair Value Measurements | ||
Due in 1 year | $ 621 | |
Due in 1 year through 5 years | 2,769 | |
Due in 5 years through 10 years | 56 | |
Due after 10 years | 0 | |
Total | $ 3,446 | $ 3,645 |
Marketable Securities, Deriva_3
Marketable Securities, Derivative Financial Instruments and Fair Value Measurements (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||
Unrealized gain | $ 500 | $ 1,100 | |
Notional amount | 52,200 | $ 52,200 | $ 49,000 |
Debt Instrument, Maturity Date | Jul. 15, 2023 | ||
Debt Instrument, Description of Variable Rate Basis | LIBOR at 2.50% and 2.00%, | ||
Aggregate fair value interest rate | $ 1,200 | $ 1,200 | |
Derivative [Member] | |||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||
Debt Instrument, Maturity Date | Oct. 11, 2023 |
Notes Payable (Details - Inform
Notes Payable (Details - Information on Notes Payable) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Debt Instrument, Maturity Date | Jul. 15, 2023 | |
Amount Due at Maturity | $ 288,997 | |
Less: deferred financing costs | $ (4,098) | |
Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 3.92% | |
Amount Due at Maturity | $ 281,862 | |
Total notes payable | 293,095 | $ 282,375 |
Less: deferred financing costs | (4,098) | (4,777) |
Total notes payable, net | $ 288,997 | 277,598 |
Arbors Harbor Town Memphis [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 4.53% | |
Debt Instrument, Maturity Date | Jan. 01, 2026 | |
Amount Due at Maturity | $ 29,000 | |
Total notes payable | $ 29,000 | 29,000 |
Arbors Harbor Town Supplemental [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 3.52% | |
Debt Instrument, Maturity Date | Jan. 01, 2026 | |
Amount Due at Maturity | $ 5,379 | |
Total notes payable | $ 5,787 | 5,842 |
Parkside Apartments Sugarland Texas [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 4.45% | |
Debt Instrument, Maturity Date | Jun. 01, 2025 | |
Amount Due at Maturity | $ 15,782 | |
Total notes payable | $ 16,810 | 16,974 |
Axis At Westmont [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 4.39% | |
Debt Instrument, Maturity Date | Feb. 01, 2026 | |
Amount Due at Maturity | $ 34,343 | |
Total notes payable | $ 36,792 | 37,100 |
Valley Ranch Apartments [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 4.16% | |
Debt Instrument, Maturity Date | Mar. 01, 2026 | |
Amount Due at Maturity | $ 43,414 | |
Total notes payable | $ 43,414 | 43,414 |
Flats At Fishers [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 3.78% | |
Debt Instrument, Maturity Date | Jul. 01, 2026 | |
Amount Due at Maturity | $ 26,090 | |
Total notes payable | $ 28,333 | 28,592 |
Flats At Fishers Supplemental [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 3.85% | |
Debt Instrument, Maturity Date | Jul. 01, 2026 | |
Amount Due at Maturity | $ 8,366 | |
Total notes payable | $ 9,069 | 9,150 |
Autumn Breeze Apartments [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 3.39% | |
Debt Instrument, Maturity Date | Apr. 01, 2030 | |
Amount Due at Maturity | $ 25,518 | |
Total notes payable | $ 29,920 | 29,920 |
Bay Vue Apartments [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 3.52% | |
Debt Instrument, Maturity Date | Jul. 09, 2024 | |
Amount Due at Maturity | $ 44,970 | |
Total notes payable | $ 44,970 | 44,383 |
Interest rate | 3.10% | |
Citadel Apartments Senior [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 2.25% | |
Debt Instrument, Maturity Date | Oct. 11, 2024 | |
Amount Due at Maturity | $ 39,200 | |
Total notes payable | $ 39,200 | 30,400 |
Interest rate | 1.50% | |
Citadel Apartments Junior [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 9.11% | |
Debt Instrument, Maturity Date | Oct. 11, 2024 | |
Amount Due at Maturity | $ 9,800 | |
Total notes payable | $ 9,800 | $ 7,600 |
Interest rate | 8.75% |
Notes Payable (Details - Contra
Notes Payable (Details - Contractual Obligations for Principal Payments) $ in Thousands | Jun. 30, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 874 |
2023 | 2,191 |
2024 | 96,431 |
2025 | 18,138 |
2026 | 147,729 |
Thereafter | 27,732 |
Total principal maturities | 293,095 |
Less: deferred financing costs | (4,098) |
Total notes payable, net | $ 288,997 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | |||
Oct. 06, 2021 | Jul. 07, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Real Estate Properties [Line Items] | ||||
Proceeds from notes payable | $ 11,587 | $ 0 | ||
Debt Instrument, Description of Variable Rate Basis | LIBOR at 2.50% and 2.00%, | |||
Maturity date | Jul. 15, 2023 | |||
Citadel Apartments [Member] | ||||
Real Estate Properties [Line Items] | ||||
Face amount | $ 39,200 | |||
Proceeds from notes payable | 30,400 | |||
Purchase price | 28,000 | |||
Finance fees | 500 | |||
Mortgages | $ 11,000 | |||
Principal balance | 49,000 | |||
Notional amount | $ 49,000 | |||
Debt Instrument, Description of Variable Rate Basis | LIBOR rate is capped at 2.00% | |||
Citadel Apartments Mortgage [Member] | ||||
Real Estate Properties [Line Items] | ||||
Face amount | 9,800 | |||
Proceeds from notes payable | 7,600 | |||
Citadel Apartment [Member] | ||||
Real Estate Properties [Line Items] | ||||
Payments for Merger Related Costs | $ 38,000 | |||
Bay Vue Apartments [Member] | ||||
Real Estate Properties [Line Items] | ||||
Face amount | $ 52,200 | |||
Finance fees | $ 300 | |||
Notional amount | $ 52,200 | |||
Debt Instrument, Description of Variable Rate Basis | LIBOR rate is capped at 2.50% | |||
Maturity date | Jul. 09, 2024 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - $ / shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Nov. 11, 2021 | |
Equity [Abstract] | ||
Redemption price | $ 12.91 | |
Repurchase of common stock | 44,275 | |
Repurchase price per shares | $ 12.91 | |
Percentage of real estate investment trust taxable income | 90% |
Related Party Transactions (Det
Related Party Transactions (Details) - Related Party [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | ||||
Property management fees (property operating expenses) | $ 124 | $ 110 | $ 242 | $ 228 |
Administrative services reimbursement (general and administrative costs) | 346 | 332 | 693 | 665 |
Asset management fees (general and administrative costs) | 861 | 626 | 1,729 | 1,321 |
Total | $ 1,331 | $ 1,068 | $ 2,664 | $ 2,214 |