Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 08, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | Inland Real Estate Income Trust, Inc. | |
Entity Central Index Key | 0001528985 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2022 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 36,193,229 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity File Number | 000-55146 | |
Entity Tax Identification Number | 45-3079597 | |
Entity Address, Address Line One | 2901 Butterfield Road | |
Entity Address, City or Town | Oak Brook | |
Entity Address, State or Province | IL | |
Entity Address, Country | US | |
Entity Incorporation, State or Country Code | MD | |
Entity Address, Postal Zip Code | 60523 | |
City Area Code | 630 | |
Local Phone Number | 218-8000 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Investment properties held and used: | ||
Land | $ 330,455 | $ 267,946 |
Building and other improvements | 1,194,026 | 993,129 |
Total | 1,524,481 | 1,261,075 |
Less accumulated depreciation | (277,339) | (245,532) |
Net investment properties held and used | 1,247,142 | 1,015,543 |
Cash and cash equivalents | 9,217 | 8,229 |
Restricted cash | 477 | 5,154 |
Accounts and rent receivable | 18,945 | 18,560 |
Acquired lease intangible assets, net | 80,814 | 58,203 |
Operating lease right-of-use asset, net | 14,253 | 14,570 |
Other assets | 43,737 | 6,448 |
Total assets | 1,414,585 | 1,126,707 |
Liabilities: | ||
Mortgages and credit facility payable, net | 850,697 | 595,542 |
Accounts payable and accrued expenses | 14,003 | 9,089 |
Operating lease liability | 24,650 | 24,396 |
Distributions payable | 4,903 | 4,888 |
Acquired intangible liabilities, net | 44,283 | 37,918 |
Due to related parties | 3,206 | 2,537 |
Other liabilities | 9,679 | 14,414 |
Total liabilities | 951,421 | 688,784 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $.001 par value, 40,000,000 shares authorized, none outstanding | ||
Common stock, $.001 par value, 1,460,000,000 shares authorized, 36,149,222 and 36,040,928 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | 36 | 36 |
Additional paid in capital | 814,027 | 811,233 |
Accumulated distributions and net loss | (387,361) | (365,877) |
Accumulated other comprehensive income (loss) | 36,462 | (7,469) |
Total stockholders’ equity | 463,164 | 437,923 |
Total liabilities and stockholders’ equity | $ 1,414,585 | $ 1,126,707 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 40,000,000 | 40,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,460,000,000 | 1,460,000,000 |
Common stock, shares issued | 36,149,222 | 36,040,928 |
Common stock, shares outstanding | 36,149,222 | 36,040,928 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income: | ||||
Rental income | $ 35,900 | $ 29,599 | $ 97,114 | $ 88,971 |
Other property income | 84 | 60 | 164 | 170 |
Total income | 35,984 | 29,659 | 97,278 | 89,141 |
Cost and Expenses: | ||||
Property operating expenses | 6,468 | 5,040 | 17,806 | 15,817 |
Real estate tax expense | 4,721 | 3,784 | 12,694 | 11,132 |
General and administrative expenses | 1,294 | 1,169 | 4,057 | 3,400 |
Business management fee | 2,707 | 2,239 | 7,500 | 6,709 |
Depreciation and amortization | 14,979 | 12,110 | 40,622 | 36,783 |
Total expenses | 30,169 | 24,342 | 82,679 | 73,841 |
Other Income (Expense): | ||||
Interest expense | (8,721) | (5,876) | (21,394) | (17,719) |
Interest and other income | 6 | 5 | 86 | |
Net loss | $ (2,900) | $ (559) | $ (6,790) | $ (2,333) |
Net loss per common share, basic | $ (0.08) | $ (0.02) | $ (0.19) | $ (0.06) |
Net loss per common share, diluted | $ (0.08) | $ (0.02) | $ (0.19) | $ (0.06) |
Weighted average number of common shares outstanding, basic | 36,151,908 | 36,035,194 | 36,117,579 | 36,026,879 |
Weighted average number of common shares outstanding, diluted | 36,151,908 | 36,035,194 | 36,117,579 | 36,026,879 |
Comprehensive income: | ||||
Net loss | $ (2,900) | $ (559) | $ (6,790) | $ (2,333) |
Unrealized gain (loss) on derivatives | 21,971 | (163) | 41,112 | 740 |
Reclassification adjustment for amounts included in net loss | (21) | 2,132 | 2,819 | 5,839 |
Comprehensive income | $ 19,050 | $ 1,410 | $ 37,141 | $ 4,246 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid In Capital [Member] | Accumulated Distributions and Net Loss [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Dec. 31, 2020 | $ 443,959 | $ 36 | $ 810,210 | $ (348,719) | $ (17,568) |
Balance, shares at Dec. 31, 2020 | 36,022,368 | ||||
Distributions declared | (9,767) | (9,767) | |||
Proceeds from distribution reinvestment plan | 1,886 | 1,886 | |||
Proceeds from distribution reinvestment plan, shares | 104,328 | ||||
Shares repurchased | (1,886) | (1,886) | |||
Shares repurchased, shares | (130,457) | ||||
Unrealized gain (loss) on derivatives | 740 | 740 | |||
Reclassification adjustment for amounts included in net loss | 5,839 | 5,839 | |||
Equity-based compensation | 39 | 39 | |||
Equity based compensation, shares | 3,210 | ||||
Net loss | (2,333) | (2,333) | |||
Balance at Sep. 30, 2021 | 438,477 | $ 36 | 810,249 | (360,819) | (10,989) |
Balance, shares at Sep. 30, 2021 | 35,999,449 | ||||
Balance at Jun. 30, 2021 | 441,941 | $ 36 | 810,242 | (355,379) | (12,958) |
Balance, shares at Jun. 30, 2021 | 36,025,578 | ||||
Distributions declared | (4,881) | (4,881) | |||
Proceeds from distribution reinvestment plan | 1,886 | 1,886 | |||
Proceeds from distribution reinvestment plan, shares | 104,328 | ||||
Shares repurchased | (1,886) | (1,886) | |||
Shares repurchased, shares | (130,457) | ||||
Unrealized gain (loss) on derivatives | (163) | (163) | |||
Reclassification adjustment for amounts included in net loss | 2,132 | 2,132 | |||
Equity-based compensation | 7 | 7 | |||
Net loss | (559) | (559) | |||
Balance at Sep. 30, 2021 | 438,477 | $ 36 | 810,249 | (360,819) | (10,989) |
Balance, shares at Sep. 30, 2021 | 35,999,449 | ||||
Balance at Dec. 31, 2021 | $ 437,923 | $ 36 | 811,233 | (365,877) | (7,469) |
Balance, shares at Dec. 31, 2021 | 36,040,928 | 36,040,928 | |||
Distributions declared | $ (14,694) | (14,694) | |||
Proceeds from distribution reinvestment plan | 5,485 | 5,485 | |||
Proceeds from distribution reinvestment plan, shares | 282,268 | ||||
Shares repurchased | (2,743) | (2,743) | |||
Shares repurchased, shares | (176,445) | ||||
Unrealized gain (loss) on derivatives | 41,112 | 41,112 | |||
Reclassification adjustment for amounts included in net loss | 2,819 | 2,819 | |||
Equity-based compensation | 52 | 52 | |||
Equity based compensation, shares | 2,471 | ||||
Net loss | (6,790) | (6,790) | |||
Balance at Sep. 30, 2022 | $ 463,164 | $ 36 | 814,027 | (387,361) | 36,462 |
Balance, shares at Sep. 30, 2022 | 36,149,222 | 36,149,222 | |||
Balance at Jun. 30, 2022 | $ 448,095 | $ 36 | 813,106 | (379,559) | 14,512 |
Balance, shares at Jun. 30, 2022 | 36,115,528 | ||||
Distributions declared | (4,902) | (4,902) | |||
Proceeds from distribution reinvestment plan | 1,814 | 1,814 | |||
Proceeds from distribution reinvestment plan, shares | 89,849 | ||||
Shares repurchased | (908) | (908) | |||
Shares repurchased, shares | (56,155) | ||||
Unrealized gain (loss) on derivatives | 21,971 | 21,971 | |||
Reclassification adjustment for amounts included in net loss | (21) | (21) | |||
Equity-based compensation | 15 | 15 | |||
Net loss | (2,900) | (2,900) | |||
Balance at Sep. 30, 2022 | $ 463,164 | $ 36 | $ 814,027 | $ (387,361) | $ 36,462 |
Balance, shares at Sep. 30, 2022 | 36,149,222 | 36,149,222 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement Of Stockholders Equity [Abstract] | ||||
Distributions declared per share | $ 0.135600 | $ 0.135600 | $ 0.406800 | $ 0.271200 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | |||
Net loss | $ (6,790) | $ (2,333) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | $ 14,979 | 40,622 | 36,783 |
Amortization of debt issuance costs and mortgage premiums, net | 1,239 | 578 | |
Amortization of acquired market leases, net | (269) | (798) | (488) |
Amortization of equity-based compensation | 52 | 39 | |
Reduction in the carrying amount of the right-of-use-asset | 317 | 334 | |
Straight-line income, net | (476) | (219) | |
Other non-cash adjustments | 82 | 78 | |
Changes in assets and liabilities: | |||
Accounts payable and accrued expenses | 3,566 | 1,310 | |
Accounts and rent receivable | 91 | 3,858 | |
Due to related parties | 645 | (2,793) | |
Operating lease liability | 254 | 269 | |
Other liabilities | 2,233 | (449) | |
Other assets | (715) | (503) | |
Net cash flows provided by operating activities | 40,322 | 36,464 | |
Cash flows from investing activities: | |||
Purchase of investment properties | (277,849) | ||
Capital expenditures | (7,693) | (3,869) | |
Other assets | (221) | ||
Net cash flows used in investing activities | (285,763) | (3,869) | |
Cash flows from financing activities: | |||
Payment of credit facility | (24,444) | (8,097) | |
Proceeds from credit facility | 422,444 | 72,097 | |
Payment of mortgages payable | (138,171) | (91,435) | |
Payment of debt issuance costs | (5,913) | ||
Proceeds from the distribution reinvestment plan | 5,485 | 1,886 | |
Shares repurchased | (2,743) | (1,886) | |
Distributions paid | (4,897) | (14,679) | (4,886) |
Early termination of interest rate swap agreements, net | (227) | ||
Net cash flows provided by (used in) financing activities | 241,752 | (32,321) | |
Net (decrease) increase in cash, cash equivalents and restricted cash | (3,689) | 274 | |
Cash, cash equivalents and restricted cash, at beginning of the period | 13,383 | 13,985 | |
Cash, cash equivalents and restricted cash, at end of period | 9,694 | 9,694 | 14,259 |
In conjunction with the purchase of investment properties, the Company acquired assets and assumed liabilities as follows: | |||
Land | 62,510 | 62,510 | |
Building and improvements | 192,690 | 192,690 | |
Acquired lease intangible assets | 33,285 | 33,285 | |
Acquired intangible liabilities | (9,654) | (9,654) | |
Assumed liabilities, net | (982) | (982) | |
Purchase of investment properties | $ 277,849 | 277,849 | |
Cash paid for interest | 18,174 | 17,134 | |
Supplemental schedule of non-cash investing and financing activities: | |||
Accrued capital expenditures | $ 672 | $ 35 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | NOTE 1 – ORGANIZATION The Company was formed on August 24, 2011 to acquire and manage a portfolio of commercial real estate investments located in the United States. The Company is primarily focused on acquiring and owning retail properties and targets a portfolio substantially comprised of grocery-anchored properties. The Company has invested in joint ventures and may continue to invest in additional joint ventures or acquire other real estate assets if its management believes the expected returns from those investments exceed that of retail properties. The Company also may invest in real estate-related equity securities of both publicly traded and private real estate companies, as well as commercial mortgage-backed securities. The Company has no employees. The Company is managed by IREIT Business Manager & Advisor, Inc. (the “Business Manager”), an indirect wholly owned subsidiary of Inland Real Estate Investment Corporation (the “Sponsor”), pursuant to a Business Management Agreement with the Business Manager. The Business Management Agreement with the Business Manager was amended and restated on February 11, 2019 to, among other things, eliminate all future acquisition and disposition fees. On March 4, 2022, as reported in the Company’s Form 8-K filed with the Securities and Exchange Commission on the same date and the Company’s Form 8-K/A filed on March 7, 2022, the Company announced that the Company’s board of directors unanimously approved: (i) an Estimated Per Share NAV as of December 31, 2021, which serves as the per share purchase price for shares issued under the Company’s distribution reinvestment plan (as amended, the “DRP”) beginning with the first distribution payment to stockholders upon resumption of distributions and the DRP until the Company announces a new Estimated Per Share NAV, and (ii) that, in accordance with the share repurchase program (as amended, the “SRP”) as further described below in Note 3 – “Equity,” , beginning with repurchases in April 2022 and until the Company announces a new Estimated Per Share NAV, any shares accepted for ordinary repurchases and “exceptional repurchases” will be repurchased at 80% of the Estimated Per Share NAV. Due to the uncertainty surrounding the COVID-19 pandemic and the need to preserve cash for the payment of operating and other expenses, such as debt payments, the Company stopped paying distributions in the second quarter of 2020 and suspended its DRP and SRP. The suspension of the DRP was effective on June 6, 2020 and the suspension of the SRP was effective on June 26, 2020 . On June 29, 2021 , the Company announced the lifting of the suspension of its DRP and started to pay distributions again. The effective date of the DRP reinstatement was July 22, 2021 . The Company also announced the lifting of the suspension of the SRP and its adoption of the fourth amendment and restatement of the SRP, with the first repurchase having occurred on August 16, 2021 . See Note 3 – “Equity” for additional details. At September 30, 2022, the Company owned 52 retail properties, totaling 7,167,822 square feet. The properties are located in 24 states. At September 30, 2022, the portfolio had a weighted average physical occupancy of 93.7 % and economic occupancy of 93.9 % . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Disclosures discussing all significant accounting policies are set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission on March 16, 2022, under the heading Note 2 – “Summary of Significant Accounting Policies.” There have been no material changes to the Company’s significant accounting policies during the nine months ended September 30, 2022, except as noted below. General The consolidated financial statements have been prepared in accordance with GAAP and require 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. In the opinion of management, all adjustments necessary for a fair statement, in all material respects, of the financial position and results of operations for the periods are presented. Actual results could differ from those estimates. The results of operations for the interim periods are not necessarily indicative of the results for the entire year. Significant Risks and Uncertainties related to COVID-19 Pandemic Currently, one of the most significant risks and uncertainties is the potential further adverse effect of the current pandemic of the novel coronavirus, or COVID-19. A number of our tenants had temporarily closed their stores during 2020 and requested rent deferral or rent abatement during this pandemic. The Company’s deferred rent balance is $ 41 at September 30, 2022, which decreased from the deferred rent balance of $ 399 at December 31, 2021 and $ 4,457 at December 31, 2020, due to collections of such rent. However, the extent to which the COVID-19 pandemic further impacts the Company’s operations and those of our tenants will depend on future developments, including the impact of the Omicron variant and its sub-variants, or other variants of COVID-19 in the U.S. The impact cannot be predicted with confidence, including the scope, severity and duration of the pandemic’s variants, the actions taken to contain the pandemic’s variants or mitigate their impact, and the direct and indirect economic effects of the pandemic’s variants and containment measures, among others . Recently Adopted Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) . ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the first quarter of 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of the effectiveness for future London Interbank Offered Rate (“LIBOR”) indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. In April 2020, the FASB issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under existing lease guidance, the Company would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated with the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A grants relief to entities, allowing them an election to not evaluate whether lease-related relief that lessors provide to mitigate the economic effects of COVID-19 on lessees is a lease modification under Topic 842, Leases. An entity that makes this election can then elect whether to apply the modification guidance (i.e. assume the relief was always contemplated by the contract or assume the relief was not contemplated by the contract). Both lessees and lessors may make this election. The Company has elected to apply such relief and avail itself of the election to avoid performing a lease-by-lease analysis. Restricted Cash Amounts included in restricted cash represent those required to be set aside by lenders for real estate taxes, insurance, capital expenditures and tenant improvements on our existing properties. These amounts also include post close escrows for tenant improvements, leasing commissions, master lease, general repairs and maintenance, and are classified as restricted cash on the Company’s consolidated balance sheets. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Company’s consolidated balance sheets to such amounts shown in the Company’s consolidated statements of cash flows: September 30, 2022 2021 Cash and cash equivalents $ 9,217 $ 8,352 Restricted cash 477 5,907 Total cash, cash equivalents, and restricted cash $ 9,694 $ 14,259 |
Equity
Equity | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Equity | NOTE 3 – EQUITY The Company commenced an initial public “best efforts” offering (the “Offering”) on October 18, 2012, which concluded on October 16, 2015. The Company sold 33,534,022 shares of common stock generating gross proceeds of $ 834,399 from the Offering. As of September 30, 2022, there were 36,149,222 shares of common stock outstanding including 6,063,857 shares issued through the DRP, net of 3,461,102 shares repurchased through the SRP. The Company provides the following programs to facilitate additional investment in the Company’s shares and to provide limited liquidity for stockholders. Distribution Reinvestment Plan Through the DRP, the Company provides stockholders with the option to purchase additional shares from the Company by automatically reinvesting cash distributions, subject to certain share ownership restrictions. The Company does not pay any selling commissions, marketing contribution and due diligence expense reimbursement in connection with the DRP. Pursuant to the DRP, the price per share for shares of common stock purchased under the DRP is equal to the estimated value of one share, as determined by the Company’s board of directors and reported by the Company from time to time, until the shares become listed for trading, if a listing occurs, assuming that the DRP has not been terminated or suspended in connection with such listing. Due to the uncertainty surrounding the COVID-19 pandemic and the need to preserve cash for the payment of operating and other expenses, such as debt payments, the Company stopped paying distributions in the second quarter of 2020 and suspended its DRP, effective on June 6, 2020. On June 29, 2021, the Company announced the lifting of the suspension of its DRP. The effective date of the DRP reinstatement was July 22, 2021. There were $ 1,814 and $ 5,485 distributions reinvested through the DRP during the three and nine months ended September 30, 2022. There were $ 1,886 distributions reinvested through the DRP during the three and nine months ended September 30, 2021. See Note 1 – “Organization” for discussion on the suspension during 2020 and resumption of the DRP during 2021. Share Repurchase Program The Company adopted the SRP effective October 18, 2012, under which the Company is authorized to purchase shares from stockholders who purchased their shares from the Company or received their shares through a non-cash transfer and who have held their shares for at least one year . Purchases are in the Company’s sole discretion. In the case of repurchases made upon the death of a stockholder or qualifying disability (“Exceptional Repurchases”), as defined in the SRP, the one year holding period does not apply. On March 3, 2020 the Company’s board of directors adopted the Third Amended and Restated Share Repurchase Program (“Third SRP”). Under the Third SRP, the Company is authorized to make ordinary repurchases and Exceptional Repurchases at a price equal to 80.0 % of the “share price,” which is defined in the Third SRP as an amount equal to the lesser of: (A) $ 25 , as adjusted under certain circumstances, including, among other things, if the applicable shares were purchased from the Company at a discounted price; of (B) the most recently disclosed estimated value per share. Prior to the amendment, the Company was authorized to make Exceptional Repurchases at a price equal to 100 % of the “share price.” The Third SRP provides the Company’s board of directors with the discretion to set the funding limit for share repurchases. The Third SRP limits the dollar amount for any repurchases made by the Company each calendar quarter to an amount equal to a percentage determined in the sole discretion of the board on a quarterly basis that will not be less than 50 % of the net proceeds from the DRP during the applicable quarter. The Company continues to limit the number of shares repurchased during any calendar year to 5 % of the number of shares outstanding on December 31st of the previous calendar year, as adjusted for any stock splits or other combinations. Due to the uncertainty surrounding the COVID-19 pandemic and the need to preserve cash for the payment of operating and other expenses, the Company’s board of directors suspended the SRP effective June 26, 2020. On June 29, 2021, the Company announced the lifting of the suspension of its SRP and its adoption of the fourth amendment and restatement of the program. The effective date of the SRP reinstatement and the Fourth Amended and Restated Share Repurchase Program (the “Fourth SRP”) was August 12, 2021. Pursuant to the Fourth SRP, any written request for treatment as an Exceptional Repurchase due to the death or qualifying disability of an owner that occurred between June 1, 2019 and May 31, 2020 (inclusive) was timely if received by the Company no later than January 31, 2022, and any written request for treatment as an Exceptional Repurchase due to the death or qualifying disability of an owner that occurred between June 1, 2020 and July 31, 2021, (inclusive) was timely received if received by the Company no later than July 31, 2022. If either or both of the aforementioned funding or repurchase limitations prevent the Company from repurchasing all of the shares offered for repurchase during a calendar quarter, the Company will repurchase shares on a pro rata basis within each of the following categories up to the repurchase limitations in the following order: (a) first, all Exceptional Repurchases and (b) second, all ordinary repurchases. The SRP will immediately terminate if the Company’s shares become listed for trading on a national securities exchange. In addition, the Company’s board of directors, in its sole discretion, may, at any time, amend, suspend or terminate the SRP. Repurchases through the SRP were $ 908 and $ 2,743 for the three and nine months ended September 30, 2022, respectively. There were $ 1,886 repurchases through the SRP for the three and nine months ended September 30, 2021. There was zero liability related to the SRP at September 30, 2022 and December 31, 2021. See Note 1 – “Organization” for further discussion on the suspension of the SRP during 2020 and resumption during 2021. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2022 | |
Business Combinations [Abstract] | |
Acquisition | NOTE 4 – ACQUISITIONS 2022 Acquisitions On May 17, 2022, the Company acquired a portfolio of eight properties (the “IRPF Properties”) from certain subsidiaries of Inland Retail Property Fund, LP (the “Seller”). The acquisition of the IRPF Properties is referred to herein as the “Transaction.” The IRPF Properties are leased primarily to grocery, retail and restaurant tenants. More specifically, seven of the IRPF Properties are grocery-anchored. The IRPF Properties are located across seven states and aggregate approximately 686,851 square feet. The Seller, Inland Retail Property Fund, LP, is a fund managed by an affiliate of the Company’s sponsor and business manager. Because the Transaction was a related party transaction, it was required to be and was approved by all of the Company’s independent directors. The following table provides further details of the properties acquired during the nine months ended September 30, 2022: Date Property Name Number of Transactions Number of Properties Square Purchase 5/17/2022 IRPF Properties 1 8 686,851 $ 278,153 686,851 $ 278,153 (a) Contractual purchase price excluding closing credits. The above acquisition was accounted for as an asset acquisition. For the three and nine months ended September 30, 2022, the Company incurred $ 718 of total acquisition costs, of which $ 40 are accrued as of September 30, 2022. All of the acquisition costs are capitalized in the accompanying consolidated balance sheets. These costs include third party due diligence costs such as appraisals, environmental studies, and legal fees as well as time and travel expense reimbursements to the Sponsor and its affiliates. For properties acquired during the nine months ended September 30, 2022, the Company recorded total income of $ 8,682 and property net income of $ 5,586 . The following table presents certain additional information regarding the Company’s acquisitions during the nine months ended September 30, 2022. The amounts recognized for major assets acquired and liabilities assumed as of the acquisition date are as follows: Nine Months Ended 2022 Land $ 62,510 Building and improvements 192,730 Acquired lease intangible assets 33,285 Acquired intangible liabilities ( 9,654 ) Assumed liabilities, net ( 982 ) Total $ 277,889 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | NOTE 5 – LEASES The Company is lessor under approximately 830 retail operating leases. The remaining lease terms for the Company’s leases range from less than one year to 15 years. The Company considers the date on which it makes a leased space available to a lessee as the commencement date of the lease. At commencement, the Company determines the lease classification utilizing the classification tests under ASC 842. Options to extend a lease are included in the lease term when it is reasonably certain that the tenant will exercise its option to extend. Termination penalties are included in income when there is a termination agreement, all the conditions of the agreement have been met and amounts due are considered collectible. Such termination fees are recognized on a straight-line basis over the remaining lease term in rental income. If an operating lease is modified and the modification is not accounted for as a separate contract, the Company accounts for the modification as if it were a termination of the existing lease and the creation of a new lease. The Company considers any prepaid or accrued rentals relating to the original lease as part of the lease payments for the modified lease. Most of the revenue from the Company’s properties consists of rents received under long-term operating leases. Most leases require the tenant to pay fixed base rent paid monthly in advance, and to reimburse the Company for the tenant’s pro rata share of certain operating expenses including real estate taxes, special assessments, insurance, utilities, common area maintenance, management fees, and certain building repairs paid by the Company and recoverable under the terms of the lease. Under these leases, the Company pays all expenses and is reimbursed by the tenant for the tenant’s pro rata share of recoverable expenses paid. Certain other tenants are subject to net leases which provide that the tenant is responsible for fixed base rent as well as all costs and expenses associated with occupancy. Under net leases where all expenses are paid directly by the tenant rather than the landlord, such expenses are not included in the consolidated statements of operations and comprehensive income. Under leases where all expenses are paid by the Company, subject to reimbursement by the tenant, the expenses are included within property operating expenses. As of January 1, 2019, the date on which the Company adopted the new leasing standard, reimbursements for common area maintenance are considered non-lease components that are permitted to be combined with rental income. The combined lease component and reimbursements for insurance and taxes are reported as rental income on the consolidated statements of operations and comprehensive income. Rental income related to the Company's operating leases is comprised of the following: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Rental income - fixed payments $ 28,545 $ 23,649 $ 78,114 $ 70,970 Rental income - variable payments (a) 7,086 5,796 18,202 17,513 Amortization of acquired market leases, net 269 154 798 488 Rental income $ 35,900 $ 29,599 $ 97,114 $ 88,971 (a) Primarily includes tenant recovery income for real estate taxes, common area maintenance and insurance. The Company continues to monitor the impact of the COVID-19 pandemic on the collectability of lease obligations. As of September 30, 2022, the Company’s accounts and rent receivable, net balance was $ 18,945 , which was net of an allowance for bad debts of $ 1,644 and included $ 41 of deferred rent receivable related to COVID-19 agreements negotiated with tenants. As of December 31, 2021, the Company’s accounts and rent receivable, net balance was $ 18,560 , which was net of an allowance for bad debts of $ 1,259 and included $ 399 of deferred rent receivable related to COVID-19 agreements negotiated with tenants. Such agreements generally allow tenants to defer the payment of a portion of rent with no substantive changes to the consideration in the original lease. Consistent with the guidance in the Lease Modification Q&A issued by the FASB, such deferrals affect the timing, but not the amount, of the lease obligations. The Company is accounting for these deferrals as if no changes to the lease were made. Under this accounting, the Company increases its rent receivable as tenant obligations accrue and continues to recognize rental income. |
Acquired Intangible Assets and
Acquired Intangible Assets and Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Acquired Intangible Assets and Liabilities | NOTE 6 – ACQUIRED INTANGIBLE ASSETS AND LIABILITIES The following table summarizes the Company’s identified intangible assets and liabilities as of September 30, 2022 and December 31, 2021: September 30, December 31, Intangible assets: Acquired in-place lease value $ 183,305 $ 156,918 Acquired above market lease value 52,640 45,742 Accumulated amortization ( 155,131 ) ( 144,457 ) Acquired lease intangibles, net $ 80,814 $ 58,203 Intangible liabilities: Acquired below market lease value $ 79,914 $ 70,260 Accumulated amortization ( 35,631 ) ( 32,342 ) Acquired below market lease intangibles, net $ 44,283 $ 37,918 The portion of the purchase price allocated to acquired above market lease value and acquired below market lease value is amortized on a straight-line basis over the term of the related lease as an adjustment to rental income. For below market lease values, the amortization period includes any renewal periods with fixed rate renewals. The portion of the purchase price allocated to acquired in-place lease value is amortized on a straight-line basis over the acquired leases’ weighted average remaining term. Amortization pertaining to acquired in-place lease value, above market lease value and below market lease value is summarized below: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Amortization recorded as amortization expense: Acquired in-place lease value $ 3,224 $ 2,518 $ 8,183 $ 7,920 Amortization recorded as a (reduction) increase to rental income: Acquired above market leases $ ( 947 ) $ ( 748 ) $ ( 2,491 ) $ ( 2,222 ) Acquired below market leases 1,216 902 3,289 2,710 Net rental income increase $ 269 $ 154 $ 798 $ 488 Estimated amortization of the respective intangible lease assets and liabilities as of September 30, 2022 for each of the five succeeding years and thereafter is as follows: Acquired Above Market Leases Below 2022 (remainder of year) $ 2,934 $ 922 $ 945 2023 10,858 3,561 3,638 2024 9,273 3,323 3,509 2025 6,873 2,937 3,263 2026 5,121 2,510 3,125 Thereafter 20,489 12,013 29,803 Total $ 55,548 $ 25,266 $ 44,283 |
Debt and Derivative Instruments
Debt and Derivative Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Derivative Instruments | NOTE 7 – DEBT AND DERIVATIVE INSTRUMENTS As of September 30, 2022 and December 31, 2021, the Company had the following mortgages and credit facility payable: September 30, December 31, Type of Debt Principal Amount Weighted Principal Weighted Fixed rate mortgages payable $ 112,425 3.84 % $ 118,463 3.88 % Variable rate mortgages payable with swap agreements 67,348 3.69 % 198,796 3.42 % Variable rate mortgages payable without swap agreements — — 684 1.70 % Mortgages payable $ 179,773 3.78 % $ 317,943 3.59 % Credit facility payable 677,000 4.18 % 279,000 3.03 % Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps $ 856,773 4.09 % $ 596,943 3.33 % Add: Unamortized mortgage premiums — 17 Less: Unamortized debt issuance costs ( 6,076 ) ( 1,418 ) Total debt $ 850,697 $ 595,542 The Company estimates the fair value of its total debt by discounting the future cash flows of each instrument at rates currently offered for similar debt instruments of comparable maturities by the Company’s lenders using Level 3 inputs. The carrying value of the Company’s debt excluding mortgage premium and unamortized debt issuance costs was $ 856,773 and $ 596,943 as of September 30, 2022 and December 31, 2021, respectively, and its estimated fair value was $ 846,413 and $ 591,089 as of September 30, 2022 and December 31, 2021, respectively. As of September 30, 2022, scheduled principal payments and maturities on the Company’s debt were as follows: September 30, Scheduled Principal Payments and Maturities by Year: Scheduled Maturities of Mortgage Loans Maturity of Credit Facility Total 2022 (remainder of the year) $ 79 $ — $ — $ 79 2023 326 41,349 — 41,675 2024 341 — — 341 2025 295 92,656 — 92,951 2026 — 44,727 102,000 146,727 Thereafter — — 575,000 575,000 Total $ 1,041 $ 178,732 $ 677,000 $ 856,773 Credit Facility On February 3, 2022, the Company entered into a second amended and restated credit agreement (the “Credit Agreement”) with KeyBank National Association, individually and as administrative agent, KeyBanc Capital Markets Inc., PNC Capital Markets LLC and BofA Securities, Inc., as joint lead arrangers, and other lenders from time to time parties to the Credit Agreement (the “Credit Facility”). Pursuant to the Credit Agreement, the aggregate total commitments under the Credit Facility were increased from $ 350,000 to $ 475,000 . The Credit Facility consists of the “Revolving Credit Facility” providing revolving credit commitments in an aggregate amount of $ 200,000 and a term loan facility (the term loans funded under such commitments, the “Term Loan”) providing term loan commitments in an aggregate amount of $ 275,000 (increased from $ 150,000 ). On May 17, 2022, the Company entered into a First Amendment to Credit Agreement Regarding Incremental Term Loans (the “First Amendment”), amending the terms of the Credit Agreement primarily to draw an additional $ 300,000 to fund the acquisition of investment properties during May 2022 discussed in Note 4 – “Acquisitions.” The Credit Agreement provides the Company with the ability from time to time to increase the size of the Credit Facility up to a total of $ 1,200,000 , subject to certain conditions. The Revolving Credit Facility matures on February 3, 2026 , and the Company has the option to extend the maturity date for one additional year subject to the payment of an extension fee and certain other conditions. The Term Loan matures on February 3, 2027 . Borrowings under the Credit Facility bear interest equal to one-month Term Secured Overnight Financing Rate (“SOFR”) plus a margin, the amount of which depends on the Company’s leverage ratio. At September 30, 2022, the Company had $ 102,000 outstanding under the Revolving Credit Facility and $ 575,000 outstanding under the Term Loan. At September 30, 2022, the interest rates on the Revolving Credit Facility and the Term Loan were 4.56 % and 4.11 %, respectively. As of September 30, 2022, the Company had a maximum amount of $ 98,000 available for borrowing under the Revolving Credit Facility, subject to the terms and conditions of the Credit Agreement that governs the Credit Facility, including compliance with the covenants which could further limit the amount available. Although all of the amount available under the Revolving Credit Facility is available to pay off existing mortgages, due to the covenant limitations, the Company expects to have substantially less than all $ 98,000 available to draw or otherwise undertake additional debt as a result of, among other things, completing the aforementioned Transaction and increasing the amount of the Term Loan. The Company’s performance of the obligations under the Credit Facility, including the payment of any outstanding indebtedness under the Credit Facility, is guaranteed by certain subsidiaries of the Company, including each of the subsidiaries of the Company which owns or leases any of the properties included in the pool of unencumbered properties comprising the borrowing base. Additional properties will be added to and removed from the pool from time to time to support amounts borrowed under the Credit Facility so long as at any time there are at least fifteen unencumbered properties with an unencumbered pool value of $ 300,000 or more. At September 30, 2022, there were 46 properties included in the pool of unencumbered properties. The Credit Facility requires compliance with certain covenants, including a minimum tangible net worth requirement, a limitation on the use of leverage, a distribution limitation, restrictions on indebtedness and investment restrictions. It also contains customary default provisions including the failure to comply with the Company's covenants and the failure to pay when amounts outstanding under the Credit Facility become due. As of September 30, 2022, the Company is in compliance with all financial covenants related to the Credit Facility as amended. Mortgages Payable The Company’s mortgage loans require compliance with certain covenants, such as debt service ratios, investment restrictions and distribution limitations. As of September 30, 2022, the Company was current on all of its debt service payments and in compliance with all financial covenants. All of the Company’s mortgage loans are secured by first mortgages on the respective real estate assets. As of September 30, 2022, the weighted average years to maturity for the Company’s mortgages payable was 2.7 years. For mortgage loans maturing in the next twelve months, the Company intends to repay amounts due with cash flows from operating activities, cash on hand or proceeds available under the Revolving Credit Facility. Interest Rate Swap Agreements The Company entered into interest rate swaps to fix certain of its floating LIBOR and SOFR based debt under variable rate loans to a fixed rate to manage its risk exposure to interest rate fluctuations. The Company will generally match the maturity of the underlying variable rate debt with the maturity date on the interest swap. See Note 14 – "Fair Value Measurements" for further information. The following table summarizes the Company’s interest rate swap contracts outstanding as of September 30, 2022. Date Effective Maturity Receive Floating Rate Index (a) Pay Notional Fair Value at Assets December 23, 2015 December 23, 2015 January 2, 2026 1-month LIBOR 2.30 % 26,000 1,400 June 7, 2016 July 1, 2016 July 1, 2023 1-month LIBOR 1.42 % 41,348 877 February 3, 2022 March 1, 2022 February 3, 2027 1-month Term SOFR 1.69 % 90,000 7,657 February 3, 2022 March 1, 2022 February 3, 2027 1-month Term SOFR 1.85 % 100,000 7,856 February 3, 2022 March 1, 2022 February 3, 2027 1-month Term SOFR 1.72 % 85,000 7,185 May 17, 2022 June 1, 2022 February 3, 2027 1-month Term SOFR 2.71 % 60,000 2,701 May 17, 2022 June 1, 2022 February 3, 2027 1-month Term SOFR 2.71 % 60,000 2,684 May 17, 2022 June 1, 2022 February 3, 2027 1-month Term SOFR 2.71 % 75,000 3,366 May 17, 2022 June 1, 2022 February 3, 2027 1-month Term SOFR 2.77 % 55,000 2,356 $ 592,348 $ 36,082 At September 30, 2022 , the one-month LIBOR and the one-month term SOFR were 3.14 % and 3.04 %, respectively. The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations and comprehensive income for the three and nine months ended September 30, 2022 and 2021. Three Months Ended Nine Months Ended Derivatives in Cash Flow Hedging Relationships 2022 2021 2022 2021 Effective portion of derivatives $ 21,971 $ ( 163 ) $ 41,112 $ 740 Reclassification adjustment for amounts included in net gain or loss (effective portion) $ ( 21 ) $ 2,132 $ 2,819 $ 5,839 The total amount of interest expense presented on the consolidated statements of operations and comprehensive income was $ 8,721 and $ 5,876 , for the three months ended September 30, 2022 and 2021, respectively. The total amount of interest expense presented on the consolidated statements of operations and comprehensive income was $ 21,394 and $ 17,719 for the nine months ended September 30, 2022 and 2021, respectively. The net gain or loss reclassified into income from accumulated other comprehensive income (loss) is reported in interest expense on the consolidated statements of operations and comprehensive income. The amount that is expected to be reclassified from accumulated other comprehensive income (loss) into income in the next twelve months is $ 9,885 . |
Distributions
Distributions | 9 Months Ended |
Sep. 30, 2022 | |
Distributions [Abstract] | |
Distributions | NOTE 8 – DISTRIBUTIONS In 2020, due to the uncertainty surrounding the COVID-19 pandemic and the need to preserve cash for the payment of operating and other expenses, during the second quarter the Company’s board of directors rescinded the distribution that was declared in the first quarter of 2020, and the Company did no t resume declaring distributions until June 29, 2021. The table below presents the distributions paid and declared during the three and nine months ended September 30, 2022 and 2021. Three Months Ended Nine Months Ended 2022 2021 2022 2021 Distributions paid $ 4,897 $ 4,886 $ 14,679 $ 4,886 Distributions declared $ 4,902 $ 4,881 $ 14,694 $ 9,767 |
Earnings (Loss) per Share
Earnings (Loss) per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | NOTE 9 – EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period (the “common shares”). Diluted EPS is computed by dividing net income (loss) by the common shares plus common share equivalents. The Company excludes antidilutive restricted shares and units from the calculation of weighted-average shares for diluted EPS. As a result of a net loss in the three and nine months ended September 30, 2022 , 3,300 shares and 4,754 shares, respectively, were excluded from the computation of diluted EPS, because they would have been antidilutive. As a result of a net loss in the three and nine months ended September 30, 2021, 5,385 shares and 4,501 shares, respectively, were excluded from the computation of diluted EPS, because they would have been antidilutive. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 10 – COMMITMENTS AND CONTINGENCIES The Company may be subject, from time to time, to various legal proceedings and claims that arise in the ordinary course of business. While the resolution of these matters cannot be predicted with certainty, management believes, based on currently available information, that the final outcome of such matters will not have a material adverse effect on the consolidated financial statements of the Company. |
Equity-Based Compensation
Equity-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-Based Compensation | NOTE 11 – EQUITY-BASED COMPENSATION Under the Company’s Employee and Director Restricted Share Plan (“RSP”), restricted shares and restricted share units generally vest over a one to three year vesting period from the date of the grant, subject to the specific terms of the grant. In accordance with the RSP, restricted shares and restricted share units are issued to non-employee directors as compensation. Each restricted share and restricted share unit entitles the holder to receive one common share when it vests. Restricted shares are included in common stock outstanding on the date of vesting. Restricted share units are included in common stock outstanding on the date they are transferred to the non-employee director or their beneficiary. The grant-date value of the restricted shares and restricted share units is amortized over the vesting period representing the requisite service period. Compensation expense associated with the restricted shares and restricted share units issued to the non-employee directors was $ 15 and $ 52 , in the aggregate, for the three and nine months ended September 30, 2022, respectively. As of September 30, 2022 , the Company had $ 45 of unrecognized compensation expense related to the unvested restricted shares and restricted share units, in the aggregate. The weighted average remaining period that compensation expense related to unvested restricted shares and restricted share units will be recognized is 1.4 years. The total fair value at the vesting date for restricted shares and restricted share units that vested during both the three and nine months ended September 30, 2022 was zero and $ 47 , respectively. The total fair value at the vesting date for restricted shares and restricted share units that vested during the three and nine months ended September 30, 2021 was zero and $ 54 , respectively. A summary table of the status of the restricted shares and restricted share units is presented below: Restricted Shares Restricted Share Units Outstanding at December 31, 2021 8,108 252 Granted — 4 Vested ( 2,214 ) ( 256 ) Outstanding at September 30, 2022 5,894 — |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 12 – SEGMENT REPORTING The Company has one reportable segment as defined by GAAP, retail real estate, for the nine months ended September 30, 2022 and 2021 . |
Transactions with Related Parti
Transactions with Related Parties | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Transactions With Related Parties | NOTE 13 – TRANSACTIONS WITH RELATED PARTIES On May 17, 2022, the Company acquired the IRPF Properties from the Seller, a fund managed by an affiliate of the Company’s sponsor and business manager. See Note 4 – "Acquisitions" for further information. The following table summarizes the Company’s related party transactions for the three and nine months ended September 30, 2022 and 2021. Certain compensation and fees payable to the Business Manager for services provided to the Company are limited to maximum amounts. Three Months Ended Nine Months Ended Unpaid amounts as of 2022 2021 2022 2021 September 30, December 31, General and administrative reimbursements (a) $ 479 $ 351 $ 1,282 $ 1,063 $ 293 $ 209 Loan costs (b) $ — $ — $ 42 $ — $ — $ — Acquisition related costs (c) $ — $ — $ 19 $ — $ — $ — Real estate management fees $ 1,393 $ 1,153 $ 3,753 $ 3,542 $ — $ — Property operating expenses 363 329 1,042 1,001 15 — Construction management fees 22 — 37 5 24 Leasing fees 108 87 313 216 168 87 Total real estate management related costs (d) $ 1,886 $ 1,569 $ 5,145 $ 4,764 207 $ 87 Business management fees (e) $ 2,707 $ 2,239 $ 7,500 $ 6,709 $ 2,706 $ 2,241 (a) The Business Manager and its related parties are entitled to reimbursement for certain general and administrative expenses incurred by the Business Manager or its related parties relating to the Company’s administration. Such costs are included in general and administrative expenses in the consolidated statements of operations and comprehensive income. Unpaid amounts are included in due to related parties in the consolidated balance sheets. (b) The Business Manager and its related parties are entitled to reimbursement for certain legal costs related to securing financing for the Company. Such costs are capitalized as debt issuance costs on the consolidated balance sheets and amortized into interest expense on the consolidated statements of operations and comprehensive income over the term of the related financing. Unpaid amounts are included in due to related parties in the consolidated balance sheets. (c) The Business Manager and its related parties are reimbursed for acquisition and transaction related costs of the Business Manager and its related parties relating to the Company’s acquisition activities, regardless of whether the Company acquires the real estate assets. All of the $ 19 related party acquisition costs incurred during the nine months ended September 30, 2022 are capitalized in the accompanying consolidated balance sheets. See Note 4 – "Acquisitions" for further information. (d) For each property that is managed by Inland Commercial Real Estate Services LLC (the “Real Estate Manager”) (and its predecessor), the Company pays a monthly real estate management fee of up to 1.9 % of the gross income from any single-tenant, net-leased property, and up to 3.9 % of the gross income from any other property type. The Real Estate Manager determines, in its sole discretion, the amount of the fee with respect to a particular property, subject to the limitations. For each property that is managed directly by the Real Estate Manager or its affiliates, the Company pays the Real Estate Manager a separate leasing fee. Further, in the event that the Company engages its Real Estate Manager to provide construction management services for a property, the Company pays a separate construction management fee. Leasing fees are included in deferred costs, net and construction management fees are included in building and other improvements in the consolidated balance sheets. The Company also reimburses the Real Estate Manager and its affiliates for property-level expenses that they pay or incur on the Company’s behalf, including the salaries, bonuses and benefits of persons performing services for the Real Estate Manager and its affiliates except for the salaries, bonuses and benefits of persons who also serve as an executive officer of the Real Estate Manager or the Company. Real estate management fees and reimbursable expenses are included in property operating expenses in the consolidated statements of operations and comprehensive income. (e) The Company pays the Business Manager an annual business management fee equal to 0.65 % of its “average invested assets.” The fee is payable quarterly in an amount equal to 0.1625 % of its average invested assets as of the last day of the immediately preceding quarter. “Average invested assets” means, for any period, the average of the aggregate book value of the Company’s assets, including all intangibles and goodwill, invested, directly or indirectly, in equity interests in, and loans secured by, properties, as well as amounts invested in securities and consolidated and unconsolidated joint ventures or other partnerships, before reserves for amortization and depreciation or bad debts, impairments or other similar non-cash reserves, computed by taking the average of these values at the end of each month during the relevant calendar quarter. Unpaid amounts are included in due to related parties on the consolidated balance sheets. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 14 – FAIR VALUE MEASUREMENTS Fair Value Hierarchy The Company defines fair value based on the price that it believes would be received upon sale of an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below: Level 1 − Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. Level 2 − Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 − Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company has estimated the fair value of its financial and non-financial instruments using available market information and valuation methodologies the Company believes to be appropriate for these purposes. Recurring Fair Value Measurements For assets and liabilities measured at fair value on a recurring basis, the table below presents the fair value of the Company’s cash flow hedges as well as their classification on the consolidated balance sheets as of September 30, 2022 and December 31, 2021, respectively. Fair Value Level 1 Level 2 Level 3 Total September 30, Interest rate swap agreements - Other assets $ — $ 36,082 $ — $ 36,082 Interest rate swap agreements - Other liabilities $ — $ — $ — $ — December 31, Interest rate swap agreements - Other assets $ — $ — $ — $ — Interest rate swap agreements - Other liabilities $ — $ 7,469 $ — $ 7,469 The fair value of derivative instruments was estimated based on data observed in the forward yield curve which is widely observed in the marketplace. The Company also incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the counterparty's nonperformance risk in the fair value measurements which utilize Level 3 inputs, such as estimates of current credit spreads. The Company has determined that the credit valuation adjustments are not significant to the overall valuation of its derivative interest rate swap agreements and therefore has classified these in Level 2 of the hierarchy. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 15 – SUBSEQUENT EVENTS In connection with the preparation of its financial statements, the Company has evaluated events that occurred subsequent to September 30, 2022 through the date on which these financial statements were issued to determine whether any of these events required disclosure in the financial statements. Director Stock Awards On November 8, 2022, the Company granted each of its four independent directors 1,188 restricted shares for a total of 4,752 restricted shares with a total value of $ 96 . The restricted shares will vest in equal one-third increments on November 8, 2023 , 2024 and 2025 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
General | General The consolidated financial statements have been prepared in accordance with GAAP and require 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. In the opinion of management, all adjustments necessary for a fair statement, in all material respects, of the financial position and results of operations for the periods are presented. Actual results could differ from those estimates. The results of operations for the interim periods are not necessarily indicative of the results for the entire year. |
Significant Risks and Uncertainties related to COVID-19 Pandemic | Significant Risks and Uncertainties related to COVID-19 Pandemic Currently, one of the most significant risks and uncertainties is the potential further adverse effect of the current pandemic of the novel coronavirus, or COVID-19. A number of our tenants had temporarily closed their stores during 2020 and requested rent deferral or rent abatement during this pandemic. The Company’s deferred rent balance is $ 41 at September 30, 2022, which decreased from the deferred rent balance of $ 399 at December 31, 2021 and $ 4,457 at December 31, 2020, due to collections of such rent. However, the extent to which the COVID-19 pandemic further impacts the Company’s operations and those of our tenants will depend on future developments, including the impact of the Omicron variant and its sub-variants, or other variants of COVID-19 in the U.S. The impact cannot be predicted with confidence, including the scope, severity and duration of the pandemic’s variants, the actions taken to contain the pandemic’s variants or mitigate their impact, and the direct and indirect economic effects of the pandemic’s variants and containment measures, among others |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) . ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the first quarter of 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of the effectiveness for future London Interbank Offered Rate (“LIBOR”) indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. In April 2020, the FASB issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under existing lease guidance, the Company would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated with the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A grants relief to entities, allowing them an election to not evaluate whether lease-related relief that lessors provide to mitigate the economic effects of COVID-19 on lessees is a lease modification under Topic 842, Leases. An entity that makes this election can then elect whether to apply the modification guidance (i.e. assume the relief was always contemplated by the contract or assume the relief was not contemplated by the contract). Both lessees and lessors may make this election. The Company has elected to apply such relief and avail itself of the election to avoid performing a lease-by-lease analysis. |
Restricted Cash | Restricted Cash Amounts included in restricted cash represent those required to be set aside by lenders for real estate taxes, insurance, capital expenditures and tenant improvements on our existing properties. These amounts also include post close escrows for tenant improvements, leasing commissions, master lease, general repairs and maintenance, and are classified as restricted cash on the Company’s consolidated balance sheets. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Company’s consolidated balance sheets to such amounts shown in the Company’s consolidated statements of cash flows: September 30, 2022 2021 Cash and cash equivalents $ 9,217 $ 8,352 Restricted cash 477 5,907 Total cash, cash equivalents, and restricted cash $ 9,694 $ 14,259 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Company’s consolidated balance sheets to such amounts shown in the Company’s consolidated statements of cash flows: September 30, 2022 2021 Cash and cash equivalents $ 9,217 $ 8,352 Restricted cash 477 5,907 Total cash, cash equivalents, and restricted cash $ 9,694 $ 14,259 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Business Combinations [Abstract] | |
Schedule of Properties Acquired | The following table provides further details of the properties acquired during the nine months ended September 30, 2022: Date Property Name Number of Transactions Number of Properties Square Purchase 5/17/2022 IRPF Properties 1 8 686,851 $ 278,153 686,851 $ 278,153 (a) Contractual purchase price excluding closing credits. |
Schedule of Major Assets Acquired and Liabilities Assumed | The following table presents certain additional information regarding the Company’s acquisitions during the nine months ended September 30, 2022. The amounts recognized for major assets acquired and liabilities assumed as of the acquisition date are as follows: Nine Months Ended 2022 Land $ 62,510 Building and improvements 192,730 Acquired lease intangible assets 33,285 Acquired intangible liabilities ( 9,654 ) Assumed liabilities, net ( 982 ) Total $ 277,889 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Summary of Rental Income Related to Operating Leases | Rental income related to the Company's operating leases is comprised of the following: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Rental income - fixed payments $ 28,545 $ 23,649 $ 78,114 $ 70,970 Rental income - variable payments (a) 7,086 5,796 18,202 17,513 Amortization of acquired market leases, net 269 154 798 488 Rental income $ 35,900 $ 29,599 $ 97,114 $ 88,971 (a) Primarily includes tenant recovery income for real estate taxes, common area maintenance and insurance. |
Acquired Intangible Assets an_2
Acquired Intangible Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Liabilities | The following table summarizes the Company’s identified intangible assets and liabilities as of September 30, 2022 and December 31, 2021: September 30, December 31, Intangible assets: Acquired in-place lease value $ 183,305 $ 156,918 Acquired above market lease value 52,640 45,742 Accumulated amortization ( 155,131 ) ( 144,457 ) Acquired lease intangibles, net $ 80,814 $ 58,203 Intangible liabilities: Acquired below market lease value $ 79,914 $ 70,260 Accumulated amortization ( 35,631 ) ( 32,342 ) Acquired below market lease intangibles, net $ 44,283 $ 37,918 |
Schedule of Amortization of Acquired In Place Lease Value, Above Market and Below Market Lease Values | Amortization pertaining to acquired in-place lease value, above market lease value and below market lease value is summarized below: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Amortization recorded as amortization expense: Acquired in-place lease value $ 3,224 $ 2,518 $ 8,183 $ 7,920 Amortization recorded as a (reduction) increase to rental income: Acquired above market leases $ ( 947 ) $ ( 748 ) $ ( 2,491 ) $ ( 2,222 ) Acquired below market leases 1,216 902 3,289 2,710 Net rental income increase $ 269 $ 154 $ 798 $ 488 |
Schedule of Estimated Amortization of Intangible Lease Assets and Liabilities | Estimated amortization of the respective intangible lease assets and liabilities as of September 30, 2022 for each of the five succeeding years and thereafter is as follows: Acquired Above Market Leases Below 2022 (remainder of year) $ 2,934 $ 922 $ 945 2023 10,858 3,561 3,638 2024 9,273 3,323 3,509 2025 6,873 2,937 3,263 2026 5,121 2,510 3,125 Thereafter 20,489 12,013 29,803 Total $ 55,548 $ 25,266 $ 44,283 |
Debt and Derivative Instrumen_2
Debt and Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Mortgages and Credit Facilities Payable | As of September 30, 2022 and December 31, 2021, the Company had the following mortgages and credit facility payable: September 30, December 31, Type of Debt Principal Amount Weighted Principal Weighted Fixed rate mortgages payable $ 112,425 3.84 % $ 118,463 3.88 % Variable rate mortgages payable with swap agreements 67,348 3.69 % 198,796 3.42 % Variable rate mortgages payable without swap agreements — — 684 1.70 % Mortgages payable $ 179,773 3.78 % $ 317,943 3.59 % Credit facility payable 677,000 4.18 % 279,000 3.03 % Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps $ 856,773 4.09 % $ 596,943 3.33 % Add: Unamortized mortgage premiums — 17 Less: Unamortized debt issuance costs ( 6,076 ) ( 1,418 ) Total debt $ 850,697 $ 595,542 |
Schedule of Principal Payments and Maturities of Company's Debt | As of September 30, 2022, scheduled principal payments and maturities on the Company’s debt were as follows: September 30, Scheduled Principal Payments and Maturities by Year: Scheduled Maturities of Mortgage Loans Maturity of Credit Facility Total 2022 (remainder of the year) $ 79 $ — $ — $ 79 2023 326 41,349 — 41,675 2024 341 — — 341 2025 295 92,656 — 92,951 2026 — 44,727 102,000 146,727 Thereafter — — 575,000 575,000 Total $ 1,041 $ 178,732 $ 677,000 $ 856,773 |
Summary of Interest Rate Swap Contracts Outstanding | The following table summarizes the Company’s interest rate swap contracts outstanding as of September 30, 2022. Date Effective Maturity Receive Floating Rate Index (a) Pay Notional Fair Value at Assets December 23, 2015 December 23, 2015 January 2, 2026 1-month LIBOR 2.30 % 26,000 1,400 June 7, 2016 July 1, 2016 July 1, 2023 1-month LIBOR 1.42 % 41,348 877 February 3, 2022 March 1, 2022 February 3, 2027 1-month Term SOFR 1.69 % 90,000 7,657 February 3, 2022 March 1, 2022 February 3, 2027 1-month Term SOFR 1.85 % 100,000 7,856 February 3, 2022 March 1, 2022 February 3, 2027 1-month Term SOFR 1.72 % 85,000 7,185 May 17, 2022 June 1, 2022 February 3, 2027 1-month Term SOFR 2.71 % 60,000 2,701 May 17, 2022 June 1, 2022 February 3, 2027 1-month Term SOFR 2.71 % 60,000 2,684 May 17, 2022 June 1, 2022 February 3, 2027 1-month Term SOFR 2.71 % 75,000 3,366 May 17, 2022 June 1, 2022 February 3, 2027 1-month Term SOFR 2.77 % 55,000 2,356 $ 592,348 $ 36,082 At September 30, 2022 , the one-month LIBOR and the one-month term SOFR were 3.14 % and 3.04 %, respectively. |
Schedule of Effect of Derivatives on Consolidated Statements of Operations and Comprehensive Income | The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations and comprehensive income for the three and nine months ended September 30, 2022 and 2021. Three Months Ended Nine Months Ended Derivatives in Cash Flow Hedging Relationships 2022 2021 2022 2021 Effective portion of derivatives $ 21,971 $ ( 163 ) $ 41,112 $ 740 Reclassification adjustment for amounts included in net gain or loss (effective portion) $ ( 21 ) $ 2,132 $ 2,819 $ 5,839 |
Distributions (Tables)
Distributions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Distributions [Abstract] | |
Schedule of Distributions Paid and Declared | The table below presents the distributions paid and declared during the three and nine months ended September 30, 2022 and 2021. Three Months Ended Nine Months Ended 2022 2021 2022 2021 Distributions paid $ 4,897 $ 4,886 $ 14,679 $ 4,886 Distributions declared $ 4,902 $ 4,881 $ 14,694 $ 9,767 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Restricted Shares and Restricted Share Units | A summary table of the status of the restricted shares and restricted share units is presented below: Restricted Shares Restricted Share Units Outstanding at December 31, 2021 8,108 252 Granted — 4 Vested ( 2,214 ) ( 256 ) Outstanding at September 30, 2022 5,894 — |
Transactions with Related Par_2
Transactions with Related Parties (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table summarizes the Company’s related party transactions for the three and nine months ended September 30, 2022 and 2021. Certain compensation and fees payable to the Business Manager for services provided to the Company are limited to maximum amounts. Three Months Ended Nine Months Ended Unpaid amounts as of 2022 2021 2022 2021 September 30, December 31, General and administrative reimbursements (a) $ 479 $ 351 $ 1,282 $ 1,063 $ 293 $ 209 Loan costs (b) $ — $ — $ 42 $ — $ — $ — Acquisition related costs (c) $ — $ — $ 19 $ — $ — $ — Real estate management fees $ 1,393 $ 1,153 $ 3,753 $ 3,542 $ — $ — Property operating expenses 363 329 1,042 1,001 15 — Construction management fees 22 — 37 5 24 Leasing fees 108 87 313 216 168 87 Total real estate management related costs (d) $ 1,886 $ 1,569 $ 5,145 $ 4,764 207 $ 87 Business management fees (e) $ 2,707 $ 2,239 $ 7,500 $ 6,709 $ 2,706 $ 2,241 (a) The Business Manager and its related parties are entitled to reimbursement for certain general and administrative expenses incurred by the Business Manager or its related parties relating to the Company’s administration. Such costs are included in general and administrative expenses in the consolidated statements of operations and comprehensive income. Unpaid amounts are included in due to related parties in the consolidated balance sheets. (b) The Business Manager and its related parties are entitled to reimbursement for certain legal costs related to securing financing for the Company. Such costs are capitalized as debt issuance costs on the consolidated balance sheets and amortized into interest expense on the consolidated statements of operations and comprehensive income over the term of the related financing. Unpaid amounts are included in due to related parties in the consolidated balance sheets. (c) The Business Manager and its related parties are reimbursed for acquisition and transaction related costs of the Business Manager and its related parties relating to the Company’s acquisition activities, regardless of whether the Company acquires the real estate assets. All of the $ 19 related party acquisition costs incurred during the nine months ended September 30, 2022 are capitalized in the accompanying consolidated balance sheets. See Note 4 – "Acquisitions" for further information. (d) For each property that is managed by Inland Commercial Real Estate Services LLC (the “Real Estate Manager”) (and its predecessor), the Company pays a monthly real estate management fee of up to 1.9 % of the gross income from any single-tenant, net-leased property, and up to 3.9 % of the gross income from any other property type. The Real Estate Manager determines, in its sole discretion, the amount of the fee with respect to a particular property, subject to the limitations. For each property that is managed directly by the Real Estate Manager or its affiliates, the Company pays the Real Estate Manager a separate leasing fee. Further, in the event that the Company engages its Real Estate Manager to provide construction management services for a property, the Company pays a separate construction management fee. Leasing fees are included in deferred costs, net and construction management fees are included in building and other improvements in the consolidated balance sheets. The Company also reimburses the Real Estate Manager and its affiliates for property-level expenses that they pay or incur on the Company’s behalf, including the salaries, bonuses and benefits of persons performing services for the Real Estate Manager and its affiliates except for the salaries, bonuses and benefits of persons who also serve as an executive officer of the Real Estate Manager or the Company. Real estate management fees and reimbursable expenses are included in property operating expenses in the consolidated statements of operations and comprehensive income. (e) The Company pays the Business Manager an annual business management fee equal to 0.65 % of its “average invested assets.” The fee is payable quarterly in an amount equal to 0.1625 % of its average invested assets as of the last day of the immediately preceding quarter. “Average invested assets” means, for any period, the average of the aggregate book value of the Company’s assets, including all intangibles and goodwill, invested, directly or indirectly, in equity interests in, and loans secured by, properties, as well as amounts invested in securities and consolidated and unconsolidated joint ventures or other partnerships, before reserves for amortization and depreciation or bad debts, impairments or other similar non-cash reserves, computed by taking the average of these values at the end of each month during the relevant calendar quarter. Unpaid amounts are included in due to related parties on the consolidated balance sheets. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities Measured on a Recurring Basis | For assets and liabilities measured at fair value on a recurring basis, the table below presents the fair value of the Company’s cash flow hedges as well as their classification on the consolidated balance sheets as of September 30, 2022 and December 31, 2021, respectively. Fair Value Level 1 Level 2 Level 3 Total September 30, Interest rate swap agreements - Other assets $ — $ 36,082 $ — $ 36,082 Interest rate swap agreements - Other liabilities $ — $ — $ — $ — December 31, Interest rate swap agreements - Other assets $ — $ — $ — $ — Interest rate swap agreements - Other liabilities $ — $ 7,469 $ — $ 7,469 |
Organization (Narrative) (Detai
Organization (Narrative) (Details) | Sep. 30, 2022 ft² State Property | Aug. 16, 2021 | Jul. 22, 2021 | Jun. 29, 2021 | Jun. 26, 2020 | Jun. 06, 2020 |
Organization [Line Items] | ||||||
Number of retail properties owned | Property | 52 | |||||
Square footage of real estate properties owned | ft² | 7,167,822 | |||||
Number of states in which company owns real estate properties | State | 24 | |||||
Weighted average physical occupancy rate of property portfolio | 93.70% | |||||
Weighted average economic occupancy rate of property portfolio | 93.90% | |||||
Share Repurchase Program [Member] | ||||||
Organization [Line Items] | ||||||
Suspension effective date | Jun. 26, 2020 | |||||
Announcement date for reinstatement of Share Repurchase Program | Jun. 29, 2021 | |||||
First share repurchase following the reinstatement of Share Repurchase Program occurred | Aug. 16, 2021 | |||||
DRP [Member] | ||||||
Organization [Line Items] | ||||||
Suspension effective date | Jun. 06, 2020 | |||||
Announcement date for reinstatement of DRP | Jun. 29, 2021 | |||||
Effective date of reinstatement of DRP | Jul. 22, 2021 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
COVID-19 [Member] | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Deferred rent receivable | $ 41 | $ 399 | $ 4,457 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Reconciliation of Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 9,217 | $ 8,229 | $ 8,352 | |
Restricted cash | 477 | 5,154 | 5,907 | |
Total cash, cash equivalents, and restricted cash | $ 9,694 | $ 13,383 | $ 14,259 | $ 13,985 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 36 Months Ended | 119 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Oct. 16, 2015 | Sep. 30, 2022 | Dec. 31, 2021 | Mar. 03, 2020 | |
Equity [Line Items] | ||||||||
Common stock, shares sold | 36,149,222 | 36,149,222 | 33,534,022 | 36,149,222 | 36,040,928 | |||
Proceeds from offering | $ 834,399,000 | |||||||
Common stock, shares outstanding | 36,149,222 | 36,149,222 | 36,149,222 | 36,040,928 | ||||
Distribution reinvestment plan, shares | 6,063,857 | |||||||
Shares repurchased through the share repurchase program | 3,461,102 | |||||||
Distribution reinvested | $ 1,814,000 | $ 1,886,000 | $ 5,485,000 | $ 1,886,000 | ||||
Stock repurchase program, amount | 908,000 | 1,886,000 | 2,743,000 | 1,886,000 | ||||
Other liabilities | 9,679,000 | $ 9,679,000 | $ 9,679,000 | $ 14,414,000 | ||||
Third Amended and Restated Share Repurchase Program [Member] | ||||||||
Equity [Line Items] | ||||||||
Limit on share repurchases as a percentage of proceeds of the distribution reinvestment program | 50% | |||||||
Description of share repurchase program | Under the Third SRP, the Company is authorized to make ordinary repurchases and Exceptional Repurchases at a price equal to 80.0% of the “share price,” which is defined in the Third SRP as an amount equal to the lesser of: (A) $25, as adjusted under certain circumstances, including, among other things, if the applicable shares were purchased from the Company at a discounted price; of (B) the most recently disclosed estimated value per share. Prior to the amendment, the Company was authorized to make Exceptional Repurchases at a price equal to 100% of the “share price.” | |||||||
Third Amended and Restated Share Repurchase Program [Member] | Exceptional Repurchases [Member] | ||||||||
Equity [Line Items] | ||||||||
Percentage of share price on repurchase of shares | 80% | |||||||
Prior Share Repurchase Agreement [Member] | Exceptional Repurchases [Member] | ||||||||
Equity [Line Items] | ||||||||
Percentage of share price on repurchase of shares | 100% | |||||||
Stock Repurchase Program [Member] | ||||||||
Equity [Line Items] | ||||||||
Other liabilities | 0 | $ 0 | $ 0 | $ 0 | ||||
Minimum [Member] | ||||||||
Equity [Line Items] | ||||||||
Stock repurchase program, to be held | 1 year | |||||||
Maximum [Member] | Third Amended and Restated Share Repurchase Program [Member] | ||||||||
Equity [Line Items] | ||||||||
Stock repurchase program per share amount | $ 25 | |||||||
Percentage of prior fiscal year end outstanding shares that may be repurchased | 5% | |||||||
DRP [Member] | ||||||||
Equity [Line Items] | ||||||||
Distribution reinvested | $ 1,814,000 | $ 1,886,000 | $ 5,485,000 | $ 1,886,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Information - (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 USD ($) | May 17, 2022 ft² Property State | |
Business Combinations [Abstract] | ||
Number of properties acquired | Property | 8 | |
Number of grocery-anchored properties | Property | 7 | |
Number of states in which property acquired | State | 7 | |
Square footage of properties acquired | ft² | 686,851 | |
Acquisition costs | $ 718 | |
Accrued acquisition costs | 40 | |
Income from acquired property | 8,682 | |
Income from acquired property, net | $ 5,586 |
Acquisitions - Schedule of Prop
Acquisitions - Schedule of Properties Acquired - (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 USD ($) ft² Property Transaction | May 17, 2022 Property | |
Business Acquisition [Line Items] | ||
Number of Properties | Property | 8 | |
Square Footage | ft² | 686,851 | |
Purchase Price | $ | $ 278,153 | |
IRPF Properties [Member] | ||
Business Acquisition [Line Items] | ||
Date Acquired | May 17, 2022 | |
Number of Transactions | Transaction | 1 | |
Number of Properties | Property | 8 | |
Square Footage | ft² | 686,851 | |
Purchase Price | $ | $ 278,153 |
Acquisitions - Schedule of Majo
Acquisitions - Schedule of Major Assets Acquired and Liabilities Assumed (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Business Combinations [Abstract] | |
Land | $ 62,510 |
Building and improvements | 192,730 |
Acquired lease intangible assets | 33,285 |
Acquired intangible liabilities | (9,654) |
Assumed liabilities, net | (982) |
Total | $ 277,889 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 USD ($) OperatingLease | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Operating Leased Assets [Line Items] | |||
Number of retail operating leases | OperatingLease | 830 | ||
Accounts and rent receivable | $ 18,945 | $ 18,560 | |
COVID-19 [Member] | |||
Operating Leased Assets [Line Items] | |||
Accounts and rent receivable | 18,945 | 18,560 | |
Allowance for bad debts | 1,644 | 1,259 | |
Deferred rent receivable | $ 41 | $ 399 | $ 4,457 |
Minimum [Member] | |||
Operating Leased Assets [Line Items] | |||
Lessor, operating leases, remaining lease term | 1 year | ||
Maximum [Member] | |||
Operating Leased Assets [Line Items] | |||
Lessor, operating leases, remaining lease term | 15 years |
Leases - Summary of Rental Inco
Leases - Summary of Rental Income Related to Operating Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Operating Leases Lease Income [Abstract] | |||||
Rental income - fixed payments | $ 28,545 | $ 23,649 | $ 78,114 | $ 70,970 | |
Rental income - variable payments | [1] | 7,086 | 5,796 | 18,202 | 17,513 |
Amortization of acquired market leases, net | 269 | 154 | 798 | 488 | |
Rental income | $ 35,900 | $ 29,599 | $ 97,114 | $ 88,971 | |
[1] Primarily includes tenant recovery income for real estate taxes, common area maintenance and insurance. |
Acquired Intangible Assets an_3
Acquired Intangible Assets and Liabilities (Schedule of Intangible Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Intangible assets: | ||
Accumulated amortization | $ (155,131) | $ (144,457) |
Acquired lease intangibles, net | 80,814 | 58,203 |
Intangible liabilities: | ||
Acquired below market lease value | 79,914 | 70,260 |
Accumulated amortization | (35,631) | (32,342) |
Acquired below market lease intangibles, net | 44,283 | 37,918 |
Acquired in-place lease value [Member] | ||
Intangible assets: | ||
Acquired intangible assets | 183,305 | 156,918 |
Acquired lease intangibles, net | 55,548 | |
Acquired above market lease value [Member] | ||
Intangible assets: | ||
Acquired intangible assets | 52,640 | $ 45,742 |
Acquired lease intangibles, net | $ 25,266 |
Acquired Intangible Assets an_4
Acquired Intangible Assets and Liabilities (Schedule of Amortization of Acquired In Place Lease Value, Above Market and Below Market Lease Values) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Amortization recorded as a (reduction) increase to rental income | $ 269 | $ 154 | $ 798 | $ 488 |
Acquired in-place lease value [Member] | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Amortization recorded as amortization expense | 3,224 | 2,518 | 8,183 | 7,920 |
Acquired above market lease value [Member] | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Amortization recorded as a (reduction) increase to rental income | (947) | (748) | (2,491) | (2,222) |
Acquired below market lease value [Member] | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Amortization recorded as a (reduction) increase to rental income | $ 1,216 | $ 902 | $ 3,289 | $ 2,710 |
Acquired Intangible Assets an_5
Acquired Intangible Assets and Liabilities (Schedule of Estimated Amortization of Intangible Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Future amortization for acquired in-place and above market lease assets: | ||
Acquired lease intangibles, net | $ 80,814 | $ 58,203 |
Future amortization for below market lease liabilities: | ||
2022 (remainder of year) | 945 | |
2023 | 3,638 | |
2024 | 3,509 | |
2025 | 3,263 | |
2026 | 3,125 | |
Thereafter | 29,803 | |
Total | 44,283 | |
Acquired in-place lease value [Member] | ||
Future amortization for acquired in-place and above market lease assets: | ||
2022 (remainder of year) | 2,934 | |
2023 | 10,858 | |
2024 | 9,273 | |
2025 | 6,873 | |
2026 | 5,121 | |
Thereafter | 20,489 | |
Acquired lease intangibles, net | 55,548 | |
Above Market Leases [Member] | ||
Future amortization for acquired in-place and above market lease assets: | ||
2022 (remainder of year) | 922 | |
2023 | 3,561 | |
2024 | 3,323 | |
2025 | 2,937 | |
2026 | 2,510 | |
Thereafter | 12,013 | |
Acquired lease intangibles, net | $ 25,266 |
Debt and Derivative Instrumen_3
Debt and Derivative Instruments (Schedule of Mortgages and Credit Facility Payable) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Mortgage Loans On Real Estate [Line Items] | ||
Mortgages payable | $ 179,773 | $ 317,943 |
Credit facility payable | 677,000 | 279,000 |
Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps | 856,773 | 596,943 |
Add: Unamortized mortgage premiums | 17 | |
Less: Unamortized debt issuance costs | (6,076) | (1,418) |
Total debt | $ 850,697 | $ 595,542 |
Mortgages Payable, Weighted Average Interest Rate | 3.78% | 3.59% |
Credit Facilities Payable, Weighted Average Interest Rate | 4.18% | 3.03% |
Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps, Weighted Average Interest Rate | 4.09% | 3.33% |
Fixed rate mortgages payable [Member] | ||
Mortgage Loans On Real Estate [Line Items] | ||
Mortgages payable | $ 112,425 | $ 118,463 |
Mortgages Payable, Weighted Average Interest Rate | 3.84% | 3.88% |
Variable rate mortgages payable with swap agreements [Member] | ||
Mortgage Loans On Real Estate [Line Items] | ||
Mortgages payable | $ 67,348 | $ 198,796 |
Mortgages Payable, Weighted Average Interest Rate | 3.69% | 3.42% |
Variable rate mortgages payable without swap agreements [Member] | ||
Mortgage Loans On Real Estate [Line Items] | ||
Mortgages payable | $ 684 | |
Mortgages Payable, Weighted Average Interest Rate | 1.70% |
Debt and Derivative Instrumen_4
Debt and Derivative Instruments (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||||||
May 17, 2022 USD ($) | Feb. 03, 2022 USD ($) | Feb. 02, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) Property | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Debt principal balance | $ 856,773,000 | $ 856,773,000 | $ 596,943,000 | |||||
Estimated fair value of debt | 846,413,000 | 846,413,000 | 591,089,000 | |||||
Outstanding line of credit | 677,000,000 | 677,000,000 | $ 279,000,000 | |||||
Interest expense | 8,721,000 | $ 5,876,000 | 21,394,000 | $ 17,719,000 | ||||
Amount expected to be reclassified from accumulated other comprehensive income (loss) into income in the next twelve months | $ 9,885,000 | |||||||
Mortgages Payable [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, covenant compliance | the Company was current on all of its debt service payments and in compliance with all financial covenants. | |||||||
Weighted Average Years to Maturity | 2 years 8 months 12 days | |||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding line of credit | 102,000,000 | $ 102,000,000 | ||||||
Credit facility, interest rate | 4.56% | |||||||
Credit facility, maturity date | Feb. 03, 2026 | |||||||
Line of credit facility, expiration date, extension period | 1 year | |||||||
Revolving Credit Facility [Member] | Lenders [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate amount of commitments | $ 200,000,000 | |||||||
Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Incremental amount borrowed under the term loan | $ 300,000,000 | |||||||
Outstanding line of credit | 575,000,000 | $ 575,000,000 | ||||||
Credit facility, interest rate | 4.11% | |||||||
Credit facility, maturity date | Feb. 03, 2027 | |||||||
Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt principal balance | 677,000,000 | $ 677,000,000 | ||||||
Number of properties pledged as collateral | Property | 46 | |||||||
Debt, covenant compliance | the Company is in compliance with all financial covenants related to the Credit Facility as amended. | |||||||
Minimum [Member] | Revolving Credit Facility [Member] | Lenders [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate amount of commitments | $ 350,000,000 | |||||||
Number of properties pledged as collateral | Property | 15 | |||||||
Unencumbered pool value | $ 300,000,000 | |||||||
Maximum [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility available for borrowing | 98,000,000 | 98,000,000 | ||||||
Maximum [Member] | Revolving Credit Facility [Member] | Lenders [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate amount of commitments | 475,000,000 | |||||||
Periodic aggregate commitment for credit facility | $ 1,200,000,000 | |||||||
Maximum [Member] | Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility available for borrowing | $ 98,000,000 | $ 98,000,000 | ||||||
Maximum [Member] | Term Loan [Member] | Lenders [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate amount of term loan commitments | $ 275,000,000 | $ 150,000,000 |
Debt and Derivative Instrumen_5
Debt and Derivative Instruments (Schedule of Principal Payments and Maturities of Company's Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
2022 (remainder of the year) | $ 79 | |
2023 | 41,675 | |
2024 | 341 | |
2025 | 92,951 | |
2026 | 146,727 | |
Thereafter | 575,000 | |
Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps | 856,773 | $ 596,943 |
Maturity of Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
2026 | 102,000 | |
Thereafter | 575,000 | |
Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps | 677,000 | |
Scheduled Principal Payments [Member] | ||
Debt Instrument [Line Items] | ||
2022 (remainder of the year) | 79 | |
2023 | 326 | |
2024 | 341 | |
2025 | 295 | |
Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps | 1,041 | |
Maturities of Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
2023 | 41,349 | |
2025 | 92,656 | |
2026 | 44,727 | |
Total debt before unamortized mortgage premiums and debt issuance costs including impact of interest rate swaps | $ 178,732 |
Debt and Derivative Instrumen_6
Debt and Derivative Instruments (Summary of Interest Rate Swap Contracts Outstanding) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 USD ($) | ||
Derivative [Line Items] | ||
Derivative assets, notional amount | $ 592,348 | |
Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 36,082 | |
Interest Rate Swap One [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | Dec. 23, 2015 | |
Derivative instrument, effective date | Dec. 23, 2015 | |
Derivative instrument, maturity date | Jan. 02, 2026 | |
Derivative instrument, receive floating rate index | 1-month LIBOR | [1] |
Derivative instrument, pay fixed interest rate | 2.30% | |
Derivative assets, notional amount | $ 26,000 | |
Interest Rate Swap One [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 1,400 | |
Interest Rate Swap Two [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | Jun. 07, 2016 | |
Derivative instrument, effective date | Jul. 01, 2016 | |
Derivative instrument, maturity date | Jul. 01, 2023 | |
Derivative instrument, receive floating rate index | 1-month LIBOR | [1] |
Derivative instrument, pay fixed interest rate | 1.42% | |
Derivative assets, notional amount | $ 41,348 | |
Interest Rate Swap Two [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 877 | |
Interest Rate Swap Three [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | Feb. 03, 2022 | |
Derivative instrument, effective date | Mar. 01, 2022 | |
Derivative instrument, maturity date | Feb. 03, 2027 | |
Derivative instrument, receive floating rate index | 1-month Term SOFR | [1] |
Derivative instrument, pay fixed interest rate | 1.69% | |
Derivative assets, notional amount | $ 90,000 | |
Interest Rate Swap Three [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 7,657 | |
Interest Rate Swap Four [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | Feb. 03, 2022 | |
Derivative instrument, effective date | Mar. 01, 2022 | |
Derivative instrument, maturity date | Feb. 03, 2027 | |
Derivative instrument, receive floating rate index | 1-month Term SOFR | [1] |
Derivative instrument, pay fixed interest rate | 1.85% | |
Derivative assets, notional amount | $ 100,000 | |
Interest Rate Swap Four [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 7,856 | |
Interest Rate Swap Five [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | Feb. 03, 2022 | |
Derivative instrument, effective date | Mar. 01, 2022 | |
Derivative instrument, maturity date | Feb. 03, 2027 | |
Derivative instrument, receive floating rate index | 1-month Term SOFR | [1] |
Derivative instrument, pay fixed interest rate | 1.72% | |
Derivative assets, notional amount | $ 85,000 | |
Interest Rate Swap Five [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 7,185 | |
Interest Rate Swap Six [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | May 17, 2022 | |
Derivative instrument, effective date | Jun. 01, 2022 | |
Derivative instrument, maturity date | Feb. 03, 2027 | |
Derivative instrument, receive floating rate index | 1-month Term SOFR | [1] |
Derivative instrument, pay fixed interest rate | 2.71% | |
Derivative assets, notional amount | $ 60,000 | |
Interest Rate Swap Six [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 2,701 | |
Interest Rate Swap Seven [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | May 17, 2022 | |
Derivative instrument, effective date | Jun. 01, 2022 | |
Derivative instrument, maturity date | Feb. 03, 2027 | |
Derivative instrument, receive floating rate index | 1-month Term SOFR | [1] |
Derivative instrument, pay fixed interest rate | 2.71% | |
Derivative assets, notional amount | $ 60,000 | |
Interest Rate Swap Seven [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 2,684 | |
Interest Rate Swap Eight [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | May 17, 2022 | |
Derivative instrument, effective date | Jun. 01, 2022 | |
Derivative instrument, maturity date | Feb. 03, 2027 | |
Derivative instrument, receive floating rate index | 1-month Term SOFR | [1] |
Derivative instrument, pay fixed interest rate | 2.71% | |
Derivative assets, notional amount | $ 75,000 | |
Interest Rate Swap Eight [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 3,366 | |
Interest Rate Swap Nine [Member] | ||
Derivative [Line Items] | ||
Derivative instrument, date entered | May 17, 2022 | |
Derivative instrument, effective date | Jun. 01, 2022 | |
Derivative instrument, maturity date | Feb. 03, 2027 | |
Derivative instrument, receive floating rate index | 1-month Term SOFR | [1] |
Derivative instrument, pay fixed interest rate | 2.77% | |
Derivative assets, notional amount | $ 55,000 | |
Interest Rate Swap Nine [Member] | Recurring [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets measured on recurring basis | $ 2,356 | |
[1] At September 30, 2022 , the one-month LIBOR and the one-month term SOFR were 3.14 % and 3.04 %, respectively. |
Debt and Derivative Instrumen_7
Debt and Derivative Instruments (Summary of Interest Rate Swap Contracts Outstanding) (Parenthetical) (Details) | 9 Months Ended |
Sep. 30, 2022 | |
London Interbank Offered Rate (LIBOR) | |
Derivative [Line Items] | |
Derivative instrument, receive floating rate index | one-month LIBOR |
One month floating rate | 3.14% |
SOFR | |
Derivative [Line Items] | |
Derivative instrument, receive floating rate index | one-month term SOFR |
One month floating rate | 3.04% |
Debt and Derivative Instrumen_8
Debt and Derivative Instruments (Schedule of Effect of Derivatives on Consolidated Statements of Operations and Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Reclassification adjustment for amounts included in net loss | $ (21) | $ 2,132 | $ 2,819 | $ 5,839 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective portion of derivatives | 21,971 | (163) | 41,112 | 740 |
Reclassification adjustment for amounts included in net loss | $ (21) | $ 2,132 | $ 2,819 | $ 5,839 |
Distributions (Narrative) (Deta
Distributions (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 15 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 29, 2021 | |
Distributions [Abstract] | |||||
Distributions declared | $ 4,902,000 | $ 4,881,000 | $ 14,694,000 | $ 9,767,000 | $ 0 |
Distributions (Schedule of Dist
Distributions (Schedule of Distributions Paid and Declared) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 15 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 29, 2021 | |
Distributions [Abstract] | |||||
Distributions paid | $ 4,897,000 | $ 4,886,000 | $ 14,679,000 | $ 4,886,000 | |
Distributions declared | $ 4,902,000 | $ 4,881,000 | $ 14,694,000 | $ 9,767,000 | $ 0 |
Earnings (Loss) per Share (Deta
Earnings (Loss) per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Additional shares excluded from the computation of diluted earnings per share | 3,300 | 5,385 | 4,754 | 4,501 |
Equity-Based Compensation - Nar
Equity-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restricted Stock [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average remaining period unrecognized compensation expense related to non-vested | 1 year 4 months 24 days | |||
Common stock shares issued upon vesting | 1 | |||
Restricted Stock [Member] | Minimum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation vesting period | 1 year | |||
Restricted Stock [Member] | Maximum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation vesting period | 3 years | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average remaining period unrecognized compensation expense related to non-vested | 1 year 4 months 24 days | |||
Common stock shares issued upon vesting | 1 | |||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation vesting period | 1 year | |||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation vesting period | 3 years | |||
Restricted Shares and Restricted Share Units [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized compensation expense of unvested share-based awards | $ 45 | $ 45 | ||
Total fair value at vesting date | 0 | $ 0 | 47 | $ 54 |
Non-Employee Directors [Member] | Restricted Shares and Restricted Share Units [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 15 | $ 52 |
Equity-Based Compensation (Summ
Equity-Based Compensation (Summary of the Restricted Shares and Restricted Share Units) (Details) | 9 Months Ended |
Sep. 30, 2022 shares | |
Restricted Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding, Shares | 8,108 |
Vested, Shares | (2,214) |
Outstanding, Shares | 5,894 |
Restricted Stock Units (RSUs) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding, Shares | 252 |
Granted, Shares | 4 |
Vested, Shares | (256) |
Segment Reporting (Details)
Segment Reporting (Details) - Segment | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting [Abstract] | ||
Number of reportable segments | 1 | 1 |
Transactions with Related Par_3
Transactions with Related Parties (Schedule of Related Party Transactions) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | ||
Related Party Transaction [Line Items] | ||||||
Due to related parties | $ 3,206 | $ 3,206 | $ 2,537 | |||
General and Administrative Reimbursements [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
General and administrative expenses incurred with related party | [1] | 479 | $ 351 | 1,282 | $ 1,063 | |
Due to related parties | [1] | 293 | 293 | 209 | ||
Loan Costs [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Loan costs with related party | [2] | 42 | ||||
Acquisition Related Costs [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Acquisition costs with related party | [3] | 19 | ||||
Real Estate Management Fees [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Real estate management related costs with related party | 1,393 | 1,153 | 3,753 | 3,542 | ||
Property Operating Expenses [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Real estate management related costs with related party | 363 | 329 | 1,042 | 1,001 | ||
Due to related parties | 15 | 15 | ||||
Construction Management Fees [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Real estate management related costs with related party | 22 | 37 | 5 | |||
Due to related parties | 24 | 24 | ||||
Leasing fees [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Real estate management related costs with related party | 108 | 87 | 313 | 216 | ||
Due to related parties | 168 | 168 | 87 | |||
Real Estate Management Costs [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Real estate management related costs with related party | [4] | 1,886 | 1,569 | 5,145 | 4,764 | |
Due to related parties | [4] | 207 | 207 | 87 | ||
Business Management Fee [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Acquisition costs with related party | [5] | 2,707 | $ 2,239 | 7,500 | $ 6,709 | |
Due to related parties | [5] | $ 2,706 | $ 2,706 | $ 2,241 | ||
[1] The Business Manager and its related parties are entitled to reimbursement for certain general and administrative expenses incurred by the Business Manager or its related parties relating to the Company’s administration. Such costs are included in general and administrative expenses in the consolidated statements of operations and comprehensive income. Unpaid amounts are included in due to related parties in the consolidated balance sheets. The Business Manager and its related parties are entitled to reimbursement for certain legal costs related to securing financing for the Company. Such costs are capitalized as debt issuance costs on the consolidated balance sheets and amortized into interest expense on the consolidated statements of operations and comprehensive income over the term of the related financing. Unpaid amounts are included in due to related parties in the consolidated balance sheets. The Business Manager and its related parties are reimbursed for acquisition and transaction related costs of the Business Manager and its related parties relating to the Company’s acquisition activities, regardless of whether the Company acquires the real estate assets. All of the $ 19 related party acquisition costs incurred during the nine months ended September 30, 2022 are capitalized in the accompanying consolidated balance sheets. See Note 4 – "Acquisitions" for further information. For each property that is managed by Inland Commercial Real Estate Services LLC (the “Real Estate Manager”) (and its predecessor), the Company pays a monthly real estate management fee of up to 1.9 % of the gross income from any single-tenant, net-leased property, and up to 3.9 % of the gross income from any other property type. The Real Estate Manager determines, in its sole discretion, the amount of the fee with respect to a particular property, subject to the limitations. For each property that is managed directly by the Real Estate Manager or its affiliates, the Company pays the Real Estate Manager a separate leasing fee. Further, in the event that the Company engages its Real Estate Manager to provide construction management services for a property, the Company pays a separate construction management fee. Leasing fees are included in deferred costs, net and construction management fees are included in building and other improvements in the consolidated balance sheets. The Company also reimburses the Real Estate Manager and its affiliates for property-level expenses that they pay or incur on the Company’s behalf, including the salaries, bonuses and benefits of persons performing services for the Real Estate Manager and its affiliates except for the salaries, bonuses and benefits of persons who also serve as an executive officer of the Real Estate Manager or the Company. Real estate management fees and reimbursable expenses are included in property operating expenses in the consolidated statements of operations and comprehensive income. The Company pays the Business Manager an annual business management fee equal to 0.65 % of its “average invested assets.” The fee is payable quarterly in an amount equal to 0.1625 % of its average invested assets as of the last day of the immediately preceding quarter. “Average invested assets” means, for any period, the average of the aggregate book value of the Company’s assets, including all intangibles and goodwill, invested, directly or indirectly, in equity interests in, and loans secured by, properties, as well as amounts invested in securities and consolidated and unconsolidated joint ventures or other partnerships, before reserves for amortization and depreciation or bad debts, impairments or other similar non-cash reserves, computed by taking the average of these values at the end of each month during the relevant calendar quarter. Unpaid amounts are included in due to related parties on the consolidated balance sheets. |
Transactions with Related Par_4
Transactions with Related Parties (Narrative) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Related Party Transaction [Line Items] | |
Related party acquisition costs | $ 19 |
Annual business management fee to its average invested assets, percentage | 0.65% |
Quarterly payable business management fee to its average invested assets, percentage | 0.1625% |
Monthly Real Estate Management Fee Of Single Tenant Property [Member] | Maximum [Member] | |
Related Party Transaction [Line Items] | |
Property management fee, percentage of gross income | 1.90% |
Monthly Real Estate Management Fee Of Any Other Property [Member] | Maximum [Member] | |
Related Party Transaction [Line Items] | |
Property management fee, percentage of gross income | 3.90% |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value Assets and Liabilities Measured on a Recurring Basis) (Details) - Recurring [Member] - Interest Rate Swap Agreements [Member] - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Other Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Interest rate swap agreements - Other assets | $ 36,082 | |
Other Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Interest rate swap agreements - Other liabilities | $ 7,469 | |
Level 2 [Member] | Other Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Interest rate swap agreements - Other assets | $ 36,082 | |
Level 2 [Member] | Other Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Interest rate swap agreements - Other liabilities | $ 7,469 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Restricted Shares [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 08, 2022 | Sep. 30, 2022 | |
Subsequent Event [Line Items] | ||
Vesting description | The restricted shares will vest in equal one-third increments on November 8, 2023, 2024 and 2025. | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Granted, Shares | 4,752 | |
Granted value | $ 96 | |
Subsequent Event [Member] | Each Independent Directors [Member] | ||
Subsequent Event [Line Items] | ||
Granted, Shares | 1,188 | |
Subsequent Event [Member] | Vesting Period One [Member] | ||
Subsequent Event [Line Items] | ||
Vesting date | Nov. 08, 2023 | |
Subsequent Event [Member] | Vesting Period Two [Member] | ||
Subsequent Event [Line Items] | ||
Vesting date | Nov. 08, 2024 | |
Subsequent Event [Member] | Vesting Period Three [Member] | ||
Subsequent Event [Line Items] | ||
Vesting date | Nov. 08, 2025 |